10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

______________________________________________________

FORM 10-Q

______________________________________________________

(Mark One)

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

For the quarterly period ended April 30, 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  ý    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  ý    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	ý		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  ý

The number of shares outstanding of Registrant’s Common Stock, par value $0.01 per share, at May 31, 2014 was 170,904,595.

QUIKSILVER, INC.

FORM 10-Q

INDEX

	Page No.
PART I - FINANCIAL INFORMATION
Item 1.         Financial Statements (Unaudited):
Quiksilver, Inc. Condensed Consolidated Statements of Operations Second Quarter (Three Months) and Six Months Ended April 30, 2014 and 2013	1
Quiksilver, Inc. Condensed Consolidated Statements of Comprehensive Income/Loss Second Quarter (Three Months) and Six Months Ended April 30, 2014 and 2013	2
Quiksilver, Inc. Condensed Consolidated Balance Sheets April 30, 2014 and October 31, 2013	3
Quiksilver, Inc. Condensed Consolidated Statements of Cash Flows Six Months Ended April 30, 2014 and 2013	4
Quiksilver, Inc. Notes to Condensed Consolidated Financial Statements	5
Item 2.          Management’s Discussion and Analysis of Financial Condition and Results of Operations:
Cautionary Note Regarding Forward-Looking Statements	26
Business Overview	27
Results of Operations	29
Second Quarter (Three Months) Ended April 30, 2014 Compared to Second Quarter (Three Months) Ended April 30, 2013	29
Six Months Ended April 30, 2014 Compared to Six Months Ended April 30, 2013	34
Financial Position, Capital Resources and Liquidity	38
Critical Accounting Policies	39
New Accounting Pronouncements	41
Item 3.          Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.         Controls and Procedures	41
Part II - OTHER INFORMATION
Item 1A.      Risk Factors	43
Item 6.         Exhibits	52
SIGNATURES	53

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

QUIKSILVER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Second Quarter Ended April 30,						Six Months Ended April 30,
In thousands, except per share amounts	2014			2013			2014			2013
Revenues, net	$	408,215		$	455,563		$	819,383		$	880,604
Cost of goods sold	209,344			246,562			412,403			455,339
Gross profit	198,871			209,001			406,980			425,265
Selling, general and administrative expense	213,647			216,922			425,466			438,946
Asset impairments	19,961			5,332			20,844			8,500
Operating loss	(34,737		)	(13,253		)	(39,330		)	(22,181		)
Interest expense, net	19,240			15,342			38,695			30,850
Foreign currency loss/(gain)	893			(2,696		)	3,753			390
Loss before (benefit)/provision for income taxes	(54,870		)	(25,899		)	(81,778		)	(53,421		)
(Benefit)/provision for income taxes	(1,173		)	6,828			(5,503		)	10,005
Loss from continuing operations	(53,697		)	(32,727		)	(76,275		)	(63,426		)
(Loss)/income from discontinued operations, net of tax (includes net gain on sale of $30,833 and $0 for the six months of 2014 and 2013, respectively)	(7,113		)	509			30,400			584
Net loss	(60,810		)	(32,218		)	(45,875		)	(62,842		)
Less: net loss/(income) attributable to non-controlling interest	7,737			(177		)	8,201			(682		)
Net loss attributable to Quiksilver, Inc.	$	(53,073	)	$	(32,395	)	$	(37,674	)	$	(63,524	)
Loss per share from continuing operations attributable to Quiksilver, Inc.	$	(0.27	)	$	(0.20	)	$	(0.40	)	$	(0.39	)
(Loss)/income per share from discontinued operations attributable to Quiksilver, Inc.	$	(0.04	)	$	0.00		$	0.18		$	0.00
Net loss per share attributable to Quiksilver, Inc.	$	(0.31	)	$	(0.19	)	$	(0.22	)	$	(0.38	)
Loss per share from continuing operations attributable to Quiksilver, Inc., assuming dilution	$	(0.27	)	$	(0.20	)	$	(0.40	)	$	(0.39	)
(Loss)/income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution	$	(0.04	)	$	0.00		$	0.18		$	0.00
Net loss per share attributable to Quiksilver, Inc., assuming dilution	$	(0.31	)	$	(0.19	)	$	(0.22	)	$	(0.38	)
Weighted average common shares outstanding, basic and diluted	170,475			166,815			170,105			166,282
Amounts attributable to Quiksilver, Inc.:
Loss from continuing operations	$	(45,960	)	$	(32,904	)	$	(68,074	)	$	(64,108	)
(Loss)/income from discontinued operations, net of tax	(7,113		)	509			30,400			584
Net loss	$	(53,073	)	$	(32,395	)	$	(37,674	)	$	(63,524	)

See Notes to Condensed Consolidated Financial Statements

1

QUIKSILVER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(Unaudited)

	Second Quarter Ended April 30,						Six Months Ended April 30,
In thousands	2014			2013			2014			2013
Net loss	$	(60,810	)	$	(32,218	)	$	(45,875	)	$	(62,842	)
Other comprehensive income/(loss):
Foreign currency translation adjustment	10,142			(18,302		)	(10,573		)	(6,544		)
Net unrealized (loss)/gain on derivative instruments, net of tax (benefit)/provision of $(1,445) and $660 for the second quarter of 2014 and 2013, respectively, and $(123) and $(968) for the six months of 2014 and 2013, respectively	(4,461		)	1,579			1,832			(2,069		)
Comprehensive loss	(55,129		)	(48,941		)	(54,616		)	(71,455		)
Comprehensive loss/(income) attributable to non-controlling interest	7,737			(177		)	8,201			(682		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(47,392	)	$	(49,118	)	$	(46,415	)	$	(72,137	)

See Notes to Condensed Consolidated Financial Statements

2

QUIKSILVER, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

In thousands, except share and per share amounts	April 30, 2014			October 31, 2013
ASSETS
Current assets:
Cash and cash equivalents	$	67,134		$	57,280
Restricted cash	56,047			—
Trade accounts receivable, less allowances of $62,784 (2014) and $60,912 (2013)	351,744			413,500
Other receivables	29,604			22,881
Inventories, net	320,589			353,651
Deferred income taxes - current	9,696			10,103
Prepaid expenses and other current assets	30,966			24,463
Current portion of assets held for sale	—			33,378
Total current assets	865,780			915,256
Fixed assets, less accumulated depreciation and amortization of $250,761 (2014) and $251,150 (2013)	224,276			234,125
Intangible assets, net	135,510			137,991
Goodwill	265,565			277,734
Other assets	50,376			53,688
Assets held for sale, net of current portion	—			1,676
Total assets	$	1,541,507		$	1,620,470
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	141,721		$	213,508
Accrued liabilities	111,456			121,664
Current portion of long-term debt	49,873			23,488
Income taxes payable	1,577			3,912
Current portion of assets held for sale	—			4,468
Total current liabilities	304,627			367,040
Long-term debt, net of current portion	846,949			807,812
Other long-term liabilities	34,649			36,345
Deferred income taxes long-term	22,046			21,428
Assets held for sale, net of current portion	—			187
Total liabilities	1,208,271			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 - 173,781,295 (2014) and 172,579,182 (2013)	1,738			1,726
Additional paid-in capital	582,612			576,726
Treasury stock, 2,885,200 shares	(6,778		)	(6,778		)
Accumulated deficit	(313,560		)	(275,886		)
Accumulated other comprehensive income	65,177			73,918
Total Quiksilver, Inc. stockholders’ equity	329,189			369,706
Non-controlling interest	4,047			17,952
Total equity	333,236			387,658
Total liabilities and equity	$	1,541,507		$	1,620,470

See Notes to Condensed Consolidated Financial Statements

3

QUIKSILVER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended April 30,
In thousands	2014			2013
Cash flows from operating activities:
Net loss	$	(45,875	)	$	(62,842	)
Adjustments to reconcile net loss to net cash used in operating activities:
Income from discontinued operations	(30,400		)	(584		)
Depreciation and amortization	25,614			24,885
Stock-based compensation	11,588			11,223
Provision for doubtful accounts	15,240			3,394
(Gain)/loss on disposal of fixed assets	(493		)	29
Unrealized foreign currency loss/(gain)	4,245			(297		)
Asset impairments	20,844			8,500
Non-cash interest expense	1,702			1,838
Equity in earnings	1,144			1,058
Deferred income taxes	(145		)	184
Changes in operating assets and liabilities:
Trade accounts receivable	41,759			38,308
Other receivables	(6,700		)	(3,146		)
Inventories	28,490			(17,783		)
Prepaid expenses and other current assets	(7,717		)	(8,763		)
Other assets	1,608			3,543
Accounts payable	(69,094		)	(17,860		)
Accrued liabilities and other long-term liabilities	(14,736		)	(12,043		)
Income taxes payable	(1,026		)	115
Cash used in operating activities of continuing operations	(23,952		)	(30,241		)
Cash (used in)/provided by operating activities of discontinued operations	(16,274		)	11,847
Net cashused in operating activities	(40,226		)	(18,394		)
Cash flows from investing activities:
Capital expenditures	(23,022		)	(28,555		)
Changes in restricted cash	(56,047		)	—
Cash used in investing activities of continuing operations	(79,069		)	(28,555		)
Cash provided by/(used in) investing activities of discontinued operations	77,051			(89		)
Net cash used in investing activities	(2,018		)	(28,644		)
Cash flows from financing activities:
Borrowings on lines of credit	—			6,157
Payments on lines of credit	—			(8,860		)
Borrowings on long-term debt	167,199			103,134
Payments on long-term debt	(105,687		)	(45,702		)
Payment on short-term debt	(15,223		)	—
Stock option exercises and employee stock purchases	5,150			3,832
Payments of debt issuance costs	(771		)	—
Cash provided by financing activities of continuing operations	50,668			58,561
Cash provided by financing activities of discontinued operations	—			—
Net cash provided by financing activities	50,668			58,561
Effect of exchange rate changes on cash	1,430			(5,453		)
Net increase in cash and cash equivalents	9,854			6,070
Cash and cash equivalents, beginning of period	57,280			41,823
Cash and cash equivalents, end of period	$	67,134		$	47,893
Supplementary cash flow information:
Cash paid during the period for:
Interest	$	38,530		$	28,828
Income taxes	$	9,618		$	8,126
Non-cash investing activities:
Capital expenditures accrued at period end	$	5,211		$	5,963
Non-cash financing activities:
Debt issued for purchase of non-controlling interest	$	17,388		$	—

See Notes to Condensed Consolidated Financial Statements

4

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 all periods presented. The Company's fiscal year ends on October 31 (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 thereto 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”). The Company’s Mervin and Hawk 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. As of October 31, 2013, the Company had also classified Surfdome Shop, Ltd. (“Surfdome”), a multi-brand e-commerce retailer, as "held for sale" based on the Company's intent and ability to sell its majority stake in Surfdome at that time. During the second quarter of fiscal 2014, the Company decided to maintain its investment in Surfdome. As a result, the Company has reclassified Surfdome back into continuing operations for all periods presented. The Company recorded an impairment charge of $15 million within continuing operations to write-down Surfdome goodwill and intangible assets to their estimated fair market value (see Note 15, "Discontinued Operations").

2. New Accounting Pronouncements

In March 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on various glossary terms, covering a wide range of topics in the accounting standards codification. The amendments represent changes to clarify the master glossary, consolidate multiple instances of the same term into a single definition, or make minor improvements to the master glossary that are not expected to result in substantive changes to the application of existing guidance. The Company adopted this guidance, which did not impact its condensed consolidated financial statements.

In April 2014, the FASB issued Accounting Standards Update ("ASU") 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), which provides amended guidance on the presentation of financial statements and reporting discontinued operations and disclosures of disposals of components of an entity within property, plant and equipment. ASU 2014-08 amends the definition of a discontinued operation and requires entities to disclose additional information about disposal transactions that do not meet the discontinued-operations criteria. The effective date of ASU 2014-08 is for disposals that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. The Company is currently evaluating the impact, if any, that this amended guidance may have on its financial statements and related disclosures.

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.

5

Information related to the Company’s operating segments are as follows:

	Second Quarter Ended April 30,						Six Months Ended April 30,
In thousands	2014			2013			2014			2013
Revenues, net:
Americas	$	186,427		$	226,302		$	359,592		$	408,938
EMEA	161,977			164,725			329,930			333,751
APAC	59,721			63,581			129,596			136,276
Corporate Operations	90			955			265			1,639
	$	408,215		$	455,563		$	819,383		$	880,604
Gross profit:
Americas	$	78,972		$	90,772		$	154,082		$	168,893
EMEA	86,242			87,861			182,364			186,086
APAC	33,413			31,523			70,221			70,759
Corporate Operations	244			(1,155		)	313			(473		)
	$	198,871		$	209,001		$	406,980		$	425,265
SG&A expense:
Americas	$	91,670		$	83,877		$	175,362		$	169,064
EMEA	80,046			80,837			164,793			163,737
APAC	33,391			37,735			66,006			74,927
Corporate Operations	8,540			14,473			19,305			31,218
	$	213,647		$	216,922		$	425,466		$	438,946
Asset impairments:
Americas	$	4,191		$	5,322		$	4,413		$	6,943
EMEA	15,770			10			16,431			1,557
APAC	—			—			—			—
Corporate Operations	—			—			—			—
	$	19,961		$	5,332		$	20,844		$	8,500
Operating (loss)/income:
Americas	$	(16,889	)	$	1,573		$	(25,693	)	$	(7,114	)
EMEA	(9,574		)	7,014			1,140			20,792
APAC	22			(6,212		)	4,215			(4,168		)
Corporate Operations	(8,296		)	(15,628		)	(18,992		)	(31,691		)
	$	(34,737	)	$	(13,253	)	$	(39,330	)	$	(22,181	)

In thousands	April 30, 2014		October 31, 2013
Identifiable assets:
Americas	$	544,287	$	581,021
EMEA	730,889		744,936
APAC	195,635		222,542
Corporate Operations	70,696		71,971
	$	1,541,507	$	1,620,470

4. Earnings per Share and Stock-Based Compensation

6

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 second quarter and six months ended April 30, 2014 and 2013:

	Second Quarter Ended April 30,		Six Months Ended April 30,
In thousands	2014	2013	2014	2013
Shares used in computing basic net loss per share	170,475	166,815	170,105	166,282
Dilutive effect of stock options and restricted stock(1)	—	—	—	—
Dilutive effect of stock warrants(1)	—	—	—	—
Shares used in computing diluted net loss per share	170,475	166,815	170,105	166,282

(1) For the second quarter of fiscal 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,229,000 and 4,389,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,113,000 and 18,074,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the second quarter of fiscal 2014 and 2013, additional stock options outstanding of 4,173,000 and 6,252,000, respectively, and additional warrant shares outstanding of 6,541,000 and 7,580,000, 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. For the six months ended April 30, 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,603,000 and 3,814,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,542,000 and 16,833,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the six months ended April 30, 2014 and 2013, additional stock options outstanding of 3,805,000 and 6,936,000, respectively, and additional warrant shares outstanding of 6,112,000 and 8,821,000, 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 stock options and performance-based restricted stock units 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 performance-based stock 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 of the awards, the Company used a Monte-Carlo simulation in order to determine the grant date fair values of the awards. For the six months ended April 30, 2014 and 2013, the assumptions used in the Monte-Carlo simulations for the performance-based restricted stock units granted included a risk-free interest rate of 0.6% to 0.7% and 0.4 % to 0.6%, respectively; volatility of 52% to 58% and 64% to 89%, respectively; and a zero dividend yield. The weighted average fair value of the restricted stock units granted in the six months ended April 30, 2014 and 2013 was $5.16 and $4.12, respectively. There were no performance-based stock options granted in the first six months of fiscal 2014 or 2013.

Activity related to these performance-based equity instruments for the six months ended April 30, 2014 was as follows:

	Performance Options		Performance Restricted Stock Units
Outstanding, October 31, 2013	688,000		11,675,782
Granted	—		300,000
Exercised	(12,000	)	—
Canceled	(36,000	)	(30,937	)
Outstanding, April 30, 2014	640,000		11,944,845

As of April 30, 2014, 82,000 of the 640,000 outstanding performance-based stock options were exercisable and none of the performance-based restricted stock units were exercisable. As of April 30, 2014, the Company had unrecognized

7

compensation expense, net of estimated forfeitures, of approximately $0.6 million related to the performance-based stock options and approximately $2.9 million related to the performance-based restricted stock units. This unrecognized compensation expense is expected to be recognized over a weighted average period of approximately 1.8 years and 0.4 years, respectively.

For non-performance-based stock 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 stock 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 six months of fiscal 2014 and 2013, non-performance based options granted were valued assuming a risk-free interest rate of 2.2% and 1.3%, respectively, volatility of 81% and 78%, respectively, zero dividend yield, and an expected life of 6.7 years and 7.1 years, respectively. The weighted average fair value of the grants was $5.94 and $4.61 for the first six months of fiscal 2014 and 2013, respectively. The Company records stock-based compensation expense using the graded vested method over the vesting period, which is generally three years. As of April 30, 2014, the Company had approximately $2.8 million of unrecognized compensation expense for non-performance-based stock options expected to be recognized over a weighted average period of approximately 1.9 years.

Changes in shares under option, excluding performance-based stock options, for the six months ended April 30, 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	250,000		8.21
Exercised	(1,010,666	)	4.37			$	3,884
Canceled	(850,417	)	7.89
Outstanding, April 30, 2014	7,218,535		$	4.64	5.5	$	15,751
Options exercisable, April 30, 2014	5,284,052		$	4.22	4.9	$	14,130

Changes in non-vested shares under option, excluding performance-based stock options, for the six months ended April 30, 2014 were as follows:

	Shares		Weighted Average Grant Date Fair Value
Non-vested, October 31, 2013	2,784,826		$	2.95
Granted	250,000		5.94
Vested	(995,343	)	2.91
Canceled	(105,000	)	4.71
Non-vested, April 30, 2014	1,934,483		$	3.25

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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. Changes in restricted stock for the six months ended April 30, 2014 were as follows:

	Shares
Outstanding, October 31, 2013	195,000
Granted	90,000
Vested	(85,000	)
Forfeited	(30,000	)
Outstanding, April 30, 2014	170,000

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 April 30, 2014, there had been no acceleration of amortization periods and the Company had approximately $0.8 million of unrecognized compensation expense expected to be recognized over a weighted average period of approximately 1.7 years.

5. Restricted Cash

The Company’s restricted cash balance as of April 30, 2014 was $56 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 are subject to these restrictions. These restrictions generally require such cash to be used for either the repayment of indebtedness or capital expenditures.

6. Inventories, net

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

In thousands	April 30, 2014		October 31, 2013
Raw materials	$	4,191	$	4,725
Work in-process	322		680
Finished goods	316,076		348,246
	$	320,589	$	353,651

7. Intangible Assets and Goodwill

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

	April 30, 2014							October 31, 2013
In thousands	Gross Amount		Accumulated Amortization			Net Book Value		Gross Amount		Accumulated Amortization			Net Book Value
Non-amortizable trademarks	$	124,117	$	—		$	124,117	$	124,099	$	—		$	124,099
Amortizable trademarks	21,664		(12,369		)	9,295		23,214		(11,543		)	11,671
Amortizable licenses	12,439		(12,439		)	—		12,749		(12,749		)	—
Other amortizable intangibles	8,296		(6,198		)	2,098		8,185		(5,964		)	2,221
	$	166,516	$	(31,006	)	$	135,510	$	168,247	$	(30,256	)	$	137,991

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 six months ended April 30, 2014 and 2013 was approximately $1 million. Annual amortization expense is estimated to be approximately $2 million per year through fiscal 2019.

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The Company performs its annual goodwill impairment test during the fourth fiscal quarter. As of October 31, 2013, the fair value of each of our reporting units substantially exceeded their respective carrying values. However, certain factors may result in the need to perform an impairment test prior to the fourth fiscal quarter, including significant under-performance of the Company’s business relative to expected operating results, significant adverse economic and industry trends, significant decline in the Company’s market capitalization for an extended period of time relative to net book value, or a decision to divest an individual business within a reporting unit. Based upon the Company’s assessment of these factors in connection with the preparation of the Company’s financial statements for the second quarter of fiscal 2014, given the sales decline in the Company’s EMEA operating segment for the six months ended April 30, 2014, the Company performed an interim impairment test for the EMEA reporting unit using a discounted cash flow analysis and evaluated whether any adverse economic or industry trends would negatively affect the conclusions drawn from the prior period annual impairment test. The results of the Company’s interim impairment evaluation indicated that the fair value of the EMEA reporting unit exceeded its carrying value by 9%. As a result, the Company concluded that the EMEA reporting unit’s goodwill was not impaired based on the interim impairment evaluation.

During the second quarter of fiscal 2014, the Company also decided to maintain its investment in Surfdome, which resulted in the reclassification of the Surfdome business from "held for sale" to "held and used". As a result of the sale process conducted during the second quarter of fiscal 2014, the Company received offers to purchase from third parties which indicated that there was an impairment in the value of Surfdome. Consequently, the Company conducted an impairment analysis using the market approach based on third-party purchase offers received for Surfdome. Based upon the result of the analysis, the Company recorded a $15 million impairment charge during the second quarter of fiscal 2014 against Surfdome goodwill and intangible assets within the EMEA segment. This impairment charge reduced the carrying value of Surfdome assets to their estimated fair value.

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		$	190,986		$	135,752		$	402,712
Accumulated impairment losses	—			—			(129,545		)	(129,545		)
Net goodwill at November 1, 2012	$	75,974		$	190,986		$	6,207		$	273,167
Foreign currency translation and other	(1,031		)	5,598			—			4,567
Gross goodwill	74,943			196,584			135,752			407,279
Accumulated impairment losses	—			—			(129,545		)	(129,545		)
Net goodwill at October 31, 2013	$	74,943		$	196,584		$	6,207		$	277,734
Foreign currency translation and other	(390		)	986			—			596
Gross goodwill	74,553			197,570			135,752			407,875
Accumulated impairment losses	—			(12,765		)	(129,545		)	(142,310		)
Net goodwill at April 30, 2014	$	74,553		$	184,805		$	6,207		$	265,565

8. Income Taxes

Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of April 30, 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 pre-tax 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 in the first quarter of fiscal 2014 generated income tax expense of approximately $18 million within discontinued operations during the first six months 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 six months ended April 30, 2014 and 2013 due to being unable to record tax benefits against the losses in certain jurisdictions where the Company has previously recorded valuation allowances.

As of April 30, 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

10

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 $10 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 cost reduction efforts, the Company formulated and announced a multi-year profit improvement plan (the "PIP") in May 2013. The PIP 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 PIP that are not yet determined. The PIP 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 PIP and 2011 Plan were primarily recorded in selling, general and administrative expense ("SG&A") with smaller amounts recorded in cost of goods sold (“COGS”) in the Company’s consolidated statements of operations.

Activity and liability balances recorded as part of the PIP 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	5,593			5,120			10,713
Cash payments	(12,123		)	(2,861		)	(14,984		)
Balance, April 30, 2014	$	5,629		$	9,198		$	14,827

Amounts charged to expense during the six months endedApril 30, 2014 were primarily composed of severance and separation charges for employees and early lease exit costs. The majority of these charges were 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 six months endedApril 30, 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 six months endedApril 30, 2013 which were unrelated to the PIP 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	April 30, 2014			October 31, 2013
EMEA credit facilities	$	47,334		$	21,594
2017 Notes	276,855			274,952
ABL Credit Facility	62,789			27,408
2018 Notes	278,719			278,612
2020 Notes	222,430			222,285
Capital lease obligations and other borrowings	8,695			6,449
Total debt	896,822			831,300
Less current portion of long-term debt	(49,873		)	(23,488		)
Long-term debt, net of current portion	$	846,949		$	807,812

As of April 30, 2014, the Company’s credit facilities allowed for total cash borrowings and letters of credit of $248 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 April 30, 2014, the Company had a total of $110 million of direct

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borrowings and $46 million in letters of credit outstanding. As of April 30, 2014, the effective availability for borrowings remaining under the Company’s credit facilities was $67 million, $55 million of which could also be used for letters of credit in the United States and APAC. In addition to the $67 million of effective availability for borrowings, the Company also had $24 million in additional capacity for letters of credit in EMEA as of April 30, 2014. Many of the Company’s debt agreements contain customary default provisions and restrictive covenants. The Company is in compliance with such covenants.

During the quarter ended April 30, 2014, the Company paid approximately $15 million of other borrowings to the former minority interest owners of the Company's Brazil subsidiary, related to the Company's acquisition of the remaining minority interest in this subsidiary in November 2013.

The estimated fair value of the Company’s borrowings under lines of credit and long-term debt as of April 30, 2014 was $972 million, compared to a carrying value of $897 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 credit facilities due to the variable rate nature of those debt obligations.

Other Fair Value Disclosures

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 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 April 30, 2014, the Company was hedging forecasted transactions expected to occur through June 2015. Assuming April 30, 2014 exchange rates remain constant, $3 million of losses, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 14 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 gain of $1 million each for the second quarters ended April 30,2014 and 2013, and net gains of $1 million and $2 million for the six months ended April 30,2014 and 2013, respectively.

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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 April 30, 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	$	222,950	May 2014 – June 2015	$	(2,904	)

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 table reflects 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
April 30, 2014:
Derivative assets:
Other receivables	$	—	$	989		$	—	$	989
Derivative liabilities:
Accrued liabilities	—		(3,756		)	—		(3,756		)
Other liabilities	—		(137		)	—		(137		)
Total fair value	$	—	$	(2,904	)	$	—	$	(2,904	)
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:

	Attributable to Quiksilver, Inc.			Non- controlling Interest			Total Stockholders’ Equity
In thousands
Six Months Ended April 30, 2014:
Balance, October 31, 2013	$	369,706		$	17,952		$	387,658
Stock compensation expense	11,588			—			11,588
Exercise of stock options	4,476			—			4,476
Employee stock purchase plan	673			—			673
Transactions with non-controlling interest holders	(10,839		)	(5,704		)	(16,543		)
Net loss and other comprehensive loss	(46,415		)	(8,201		)	(54,616		)
Balance, April 30, 2014	$	329,189		$	4,047		$	333,236
Six Months Ended April 30, 2013:
Balance, October 31, 2012	$	583,310		$	18,926		$	602,236
Stock compensation expense	11,223			—			11,223
Exercise of stock options	3,275			—			3,275
Employee stock purchase plan	557			—			557
Transactions with non-controlling interest holders	(44		)	44			—
Net loss and other comprehensive income	(72,137		)	682			(71,455		)
Balance, April 30, 2013	$	526,184		$	19,652		$	545,836

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:

	Derivative Instruments			Foreign Currency Adjustments			Total
In thousands
Six Months Ended April 30, 2014:
Balance, October 31, 2013	$	(4,591	)	$	78,509		$	73,918
Net gains reclassified to COGS	(1,057		)	—			(1,057		)
Changes in fair value, net of tax	2,889			(10,573		)	(7,684		)
Balance, April 30, 2014	$	(2,759	)	$	67,936		$	65,177
Six Months Ended April 30, 2013:
Balance, October 31, 2012	$	5,756		$	80,656		$	86,412
Net gains reclassified to COGS	(2,279		)	—			(2,279		)
Net losses reclassified to foreign currency loss	22			—			22
Changes in fair value, net of tax	188			(6,544		)	(6,356		)
Balance, April 30, 2013	$	3,687		$	74,112		$	77,799

15. Discontinued Operations

One of the elements of the Company’s PIP 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 $31 million during the first six months of fiscal 2014, which is included in income from discontinued operations in the table below. The Company’s sale of these businesses generated income tax expense of approximately $18 million within discontinued operations during the first six months 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.

Mervin, Hawk and Surfdome were classified as "assets held for sale" as of October 31, 2013. In the second quarter of fiscal 2014, the Company decided to maintain its investment in Surfdome. Consequently, Surfdome was reclassified from discontinued operations into continuing operations for all periods presented. The Company recorded a $15 million impairment charge within continuing operations to write-down the carrying value of Surfdome goodwill and intangible assets to their estimated fair value (see Note 7). As a result of the Company's 51% ownership stake in Surfdome, 49% of this charge, or $7.5 million, is allocated to "net loss/(income) attributable to non-controlling interest" in the accompanying condensed consolidated statements of operations for the second quarter and six months endedApril 30, 2014.

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The operating results of discontinued operations for the second quarter and first six months of fiscal 2014 and 2013 are as follows:

	Second Quarter Ended April 30,					Six Months Ended April 30,
In thousands	2014			2013		2014		2013
Revenues, net	$	20		$	3,184	$	1,626	$	9,161
(Loss)/income before income taxes	(15		)	828		47,908		950
Provision for income taxes	7,098			319		17,508		366
(Loss)/income from discontinued operations	$	(7,113	)	$	509	$	30,400	$	584

There were no assets classified as held for sale at April 30, 2014. The components of major assets and liabilities held for sale at October 31, 2013 were as follows:

In thousands	October 31, 2013
Assets:
Receivables, net	$	22,792
Inventories, net	9,979
Other	2,283
	$	35,054
Liabilities:
Accounts payable	$	1,206
Accrued liabilities	3,262
Other	187
	$	4,655

Total assets held for sale as of October 31, 2013 by geographical segment were as follows:

In thousands	October 31, 2013
Americas	$	27,398
EMEA	7,001
APAC	655
	$	35,054

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 “Securities 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 guarantor 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 for the three and six months endedApril 30, 2014 and 2013, the financial position as of April 30, 2014 and October 31, 2013, and cash flows for the six months endedApril 30, 2014 and 2013, of

16

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. 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.

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QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

Second Quarter Ended April 30, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	91,057		$	80,024		$	268,112		$	(31,094	)	$	408,215
Cost of goods sold	193			55,352			62,878			128,800			(37,879		)	209,344
Gross profit	(77		)	35,705			17,146			139,312			6,785			198,871
Selling, general and administrative expense	6,378			59,138			21,227			128,534			(1,630		)	213,647
Asset impairments	—			765			3,255			15,941			—			19,961
Operating loss	(6,455		)	(24,198		)	(7,336		)	(5,163		)	8,415			(34,737		)
Interest expense, net	11,618			455			—			7,167			—			19,240
Foreign currency loss	124			7			220			542			—			893
Equity in earnings	34,876			(692		)	—			—			(34,184		)	—
Loss before (benefit)/provision for income taxes	(53,073		)	(23,968		)	(7,556		)	(12,872		)	42,599			(54,870		)
(Benefit)/provision for income taxes	—			(4,120		)	(2,933		)	5,880			—			(1,173		)
Loss from continuing operations	(53,073		)	(19,848		)	(4,623		)	(18,752		)	42,599			(53,697		)
Loss from discontinued operations	—			(4,165		)	(2,948		)	—			—			(7,113		)
Net loss	(53,073		)	(24,013		)	(7,571		)	(18,752		)	42,599			(60,810		)
Net loss attributable to non-controlling interest	—			—			—			7,737			—			7,737
Net loss attributable to Quiksilver, Inc.	(53,073		)	(24,013		)	(7,571		)	(11,015		)	42,599			(53,073		)
Other comprehensive income	5,681			—			—			5,681			(5,681		)	5,681
Comprehensive loss attributable to Quiksilver, Inc.	$	(47,392	)	$	(24,013	)	$	(7,571	)	$	(5,334	)	$	36,918		$	(47,392	)

18

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

Second Quarter Ended April 30, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	105,393		$	104,308		$	289,793		$	(44,047	)	$	455,563
Cost of goods sold	—			65,292			69,639			143,500			(31,869		)	246,562
Gross profit	116			40,101			34,669			146,293			(12,178		)	209,001
Selling, general and administrative expense	11,753			36,564			35,314			141,133			(7,842		)	216,922
Asset impairments	—			1,646			3,342			344			—			5,332
Operating (loss)/income	(11,637		)	1,891			(3,987		)	4,816			(4,336		)	(13,253		)
Interest expense, net	7,269			1,440			(1		)	6,634			—			15,342
Foreign currency (gain)/loss	(28		)	73			46			(2,787		)	—			(2,696		)
Equity in earnings	13,095			(483		)	—			—			(12,612		)	—
(Loss)/income before provision/(benefit) for income taxes	(31,973		)	861			(4,032		)	969			8,276			(25,899		)
Provision/(benefit) for income taxes	422			1,231			(299		)	5,474			—			6,828
Loss from continuing operations	(32,395		)	(370		)	(3,733		)	(4,505		)	8,276			(32,727		)
Income from discontinued operations	—			—			709			32			(232		)	509
Net loss	(32,395		)	(370		)	(3,024		)	(4,473		)	8,044			(32,218		)
Net income attributable to non-controlling interest	—			—			—			(177		)	—			(177		)
Net loss attributable to Quiksilver, Inc.	(32,395		)	(370		)	(3,024		)	(4,650		)	8,044			(32,395		)
Other comprehensive loss	(16,723		)	—			—			(16,723		)	16,723			(16,723		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(49,118	)	$	(370	)	$	(3,024	)	$	(21,373	)	$	24,767		$	(49,118	)

19

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

Six Months Ended April 30,2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	232		$	175,061		$	177,999		$	551,787		$	(85,696	)	$	819,383
Cost of goods sold	193			105,620			130,582			258,867			(82,859		)	412,403
Gross profit	39			69,441			47,417			292,920			(2,837		)	406,980
Selling, general and administrative expense	15,403			115,104			43,895			252,975			(1,911		)	425,466
Asset impairments	—			765			3,477			16,602			—			20,844
Operating (loss)/income	(15,364		)	(46,428		)	45			23,343			(926		)	(39,330		)
Interest expense, net	23,218			1,465			—			14,012			—			38,695
Foreign currency loss/(gain)	160			(3		)	(4		)	3,600			—			3,753
Equity in earnings	(1,068		)	(618		)	—			—			1,686			—
(Loss)/income before (benefit)/provision for income taxes	(37,674		)	(47,272		)	49			5,731			(2,612		)	(81,778		)
(Benefit)/provision for income taxes	—			(10,289		)	(6,878		)	11,664			—			(5,503		)
(Loss)/income from continuing operations	(37,674		)	(36,983		)	6,927			(5,933		)	(2,612		)	(76,275		)
Income from discontinued operations	—			19,757			10,583			60			—			30,400
Net (loss)/income	(37,674		)	(17,226		)	17,510			(5,873		)	(2,612		)	(45,875		)
Net loss attributable to non-controlling interest	—			—			—			8,201			—			8,201
Net (loss)/income attributable to Quiksilver, Inc.	(37,674		)	(17,226		)	17,510			2,328			(2,612		)	(37,674		)
Other comprehensive loss	(8,741		)	—			—			(8,741		)	8,741			(8,741		)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(46,415	)	$	(17,226	)	$	17,510		$	(6,413	)	$	6,129		$	(46,415	)

20

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

Six Months Ended April 30,2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	232		$	193,912		$	214,770		$	584,491		$	(112,801	)	$	880,604
Cost of goods sold	—			117,895			156,937			275,560			(95,053		)	455,339
Gross profit	232			76,017			57,833			308,931			(17,748		)	425,265
Selling, general and administrative expense	27,728			72,523			70,656			282,685			(14,646		)	438,946
Asset impairments	—			1,646			4,677			2,177			—			8,500
Operating (loss)/income	(27,496		)	1,848			(17,500		)	24,069			(3,102		)	(22,181		)
Interest expense, net	14,538			2,909			(1		)	13,404			—			30,850
Foreign currency loss	126			87			110			67			—			390
Equity in earnings	20,942			(687		)	—			—			(20,255		)	—
(Loss)/income before provision/(benefit) for income taxes	(63,102		)	(461		)	(17,609		)	10,598			17,153			(53,421		)
Provision/(benefit) for income taxes	422			44			(209		)	9,748			—			10,005
(Loss)/income from continuing operations	(63,524		)	(505		)	(17,400		)	850			17,153			(63,426		)
Income from discontinued operations	—			—			539			251			(206		)	584
Net (loss)/income	(63,524		)	(505		)	(16,861		)	1,101			16,947			(62,842		)
Net income attributable to non-controlling interest	—			—			—			(682		)	—			(682		)
Net (loss)/income attributable to Quiksilver, Inc.	(63,524		)	(505		)	(16,861		)	419			16,947			(63,524		)
Other comprehensive loss	(8,613		)	—			—			(8,613		)	8,613			(8,613		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(72,137	)	$	(505	)	$	(16,861	)	$	(8,194	)	$	25,560		$	(72,137	)

21

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Balance Sheet

April 30, 2014

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	125	$	(10	)	$	113	$	66,906	$	—		$	67,134
Restricted cash	—		50,214			—		5,833		—			56,047
Trade accounts receivable, net	—		77,792			30,242		243,710		—			351,744
Other receivables	14		3,480			3,259		22,851		—			29,604
Inventories, net	—		34,845			80,518		227,612		(22,386		)	320,589
Deferred income taxes - current	—		24,624			—		6,181		(21,109		)	9,696
Prepaid expenses and other current assets	2,140		5,309			3,060		20,457		—			30,966
Intercompany balances	—		171,405			—		—		(171,405		)	—
Total current assets	2,279		367,659			117,192		593,550		(214,900		)	865,780
Fixed assets, net	23,066		32,790			17,966		150,454		—			224,276
Intangible assets, net	5,257		44,139			1,085		85,029		—			135,510
Goodwill	—		103,880			7,675		154,010		—			265,565
Other assets	7,958		5,664			1,245		35,509		—			50,376
Deferred income taxes long-term	19,786		—			—		1,260		(21,046		)	—
Investment in subsidiaries	950,882		6,652			—		—		(957,534		)	—
Total assets	$	1,009,228	$	560,784		$	145,163	$	1,019,812	$	(1,193,480	)	$	1,541,507
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,679	$	28,201		$	18,100	$	92,741	$	—		$	141,721
Accrued liabilities	15,266		14,272			6,744		75,174		—			111,456
Current portion of long-term debt	—		576			—		49,297		—			49,873
Income taxes payable	—		168			—		1,409		—			1,577
Deferred income taxes - current	20,365		—			744		—		(21,109		)	—
Intercompany balances	140,212		—			11,827		19,366		(171,405		)	—
Total current liabilities	178,522		43,217			37,415		237,987		(192,514		)	304,627
Long-term debt, net of current portion	501,149		44,090			—		301,710		—			846,949
Other long-term liabilities	368		5,600			8,081		20,600		—			34,649
Deferred income taxes long-term	—		41,039			2,053		—		(21,046		)	22,046
Total liabilities	680,039		133,946			47,549		560,297		(213,560		)	1,208,271
Stockholders’/invested equity	329,189		426,838			97,614		455,468		(979,920		)	329,189
Non-controlling interest	—		—			—		4,047		—			4,047
Total liabilities and equity	$	1,009,228	$	560,784		$	145,163	$	1,019,812	$	(1,193,480	)	$	1,541,507

22

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		281,279		—			413,500
Other receivables	19		5,613		2,007		15,242		—			22,881
Inventories, net	—		43,405		93,074		240,631		(23,459		)	353,651
Deferred income taxes - current	—		24,624		—		6,588		(21,109		)	10,103
Prepaid expenses and other current assets	3,372		3,271		3,752		14,068		—			24,463
Intercompany balances	—		173,547		—		—		(173,547		)	—
Current portion of assets held for sale	—		—		26,051		7,657		(330		)	33,378
Total current assets	3,426		338,184		173,410		618,681		(218,445		)	915,256
Fixed assets, net	21,378		35,152		21,816		155,779		—			234,125
Intangible assets, net	4,487		44,596		1,154		87,754		—			137,991
Goodwill	—		103,880		7,675		166,179		—			277,734
Other assets	8,025		5,654		1,096		38,913		—			53,688
Deferred income taxes long-term	21,085		—		—		579		(21,664		)	—
Investment in subsidiaries	949,814		8,795		—		—		(958,609		)	—
Assets held for sale, net of current portion	—		—		1,676		—		—			1,676
Total assets	$	1,008,215	$	536,261	$	206,827	$	1,067,885	$	(1,198,718	)	$	1,620,470
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	4,222	$	51,283	$	35,910	$	122,093	$	—		$	213,508
Accrued liabilities	17,900		9,921		6,929		86,914		—			121,664
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		6		—			4,468
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		—		(21,664		)	21,428
Assets held for sale, net of current portion	—		—		187		—		—			187
Total liabilities	638,509		108,376		105,966		596,281		(216,320		)	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	$	1,067,885	$	(1,198,718	)	$	1,620,470

23

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Cash Flows

Six Months Ended April 30,2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(37,674	)	$	(17,226	)	$	17,510		$	(5,873	)	$	(2,612	)	$	(45,875	)
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Income from discontinued operations	—			(19,757		)	(10,583		)	(60		)	—			(30,400		)
Depreciation and amortization	1,157			5,298			4,355			14,804			—			25,614
Stock-based compensation	11,588			—			—			—			—			11,588
Provision for doubtful accounts	—			12,458			158			2,624			—			15,240
Asset impairments	—			765			3,477			16,602			—			20,844
Equity in earnings	(1,068		)	(618		)	—			1,144			1,686			1,144
Non-cash interest expense	942			491			—			269			—			1,702
Deferred income taxes	—			—			—			(145		)	—			(145		)
Other adjustments to reconcile net income	157			(13		)	(288		)	3,896			—			3,752
Changes in operating assets and liabilities:
Trade accounts receivable	—			(6,259		)	17,830			30,188			—			41,759
Inventories	—			8,292			10,148			9,124			926			28,490
Intercompany	26,610			(3,121		)	(35,129		)	11,640			—			—
Other operating assets and liabilities	(1,824		)	(29,289		)	(22,034		)	(44,518		)	—			(97,665		)
Cash (used in)/provided by operating activities of continuing operations	(112		)	(48,979		)	(14,556		)	39,695			—			(23,952		)
Cash used in operating activities of discontinued operations	—			—			(1,861		)	(14,413		)	—			(16,274		)
Net cash (used in)/provided by operating activities	(112		)	(48,979		)	(16,417		)	25,282			—			(40,226		)
Cash flows from investing activities:
Capital expenditures	(4,139		)	(5,148		)	(2,757		)	(10,978		)	—			(23,022		)
Changes in restricted cash	—			(50,214		)	—			(5,833		)	—			(56,047		)
Cash used in investing activities of continuing operations	(4,139		)	(55,362		)	(2,757		)	(16,811		)	—			(79,069		)
Cash provided by investing activities of discontinued operations	—			58,060			18,991			—			—			77,051
Net cash (used in)/provided by investing activities	(4,139		)	2,698			16,234			(16,811		)	—			(2,018		)
Cash flows from financing activities:
Borrowings on long-term debt	—			69,000			—			98,199			—			167,199
Payments on long-term debt	—			(26,500		)	—			(79,187		)	—			(105,687		)
Payment on short-term debt	—			—			—			(15,223		)	—			(15,223		)
Stock option exercises and employee stock purchases	5,150			—			—			—			—			5,150
Payments of debt issuance costs	(809		)	38			—			—			—			(771		)
Cash provided by financing activities of continuing operations	4,341			42,538			—			3,789			—			50,668
Cash provided by financing activities of discontinued operations	—			—			—			—			—			—
Net cash provided by financing activities	4,341			42,538			—			3,789			—			50,668
Effect of exchange rate changes on cash	—			—			—			1,430			—			1,430
Net increase/(decrease) in cash and cash equivalents	90			(3,743		)	(183		)	13,690			—			9,854
Cash and cash equivalents, beginning of period	35			3,733			296			53,216			—			57,280
Cash and cash equivalents, end of period	$	125		$	(10	)	$	113		$	66,906		$	—		$	67,134

24

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Cash Flows

Six Months Ended April 30,2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(63,524	)	$	(505	)	$	(16,861	)	$	1,101		$	16,947		$	(62,842	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income from discontinued operations	—			—			(539		)	(251		)	206			(584		)
Depreciation and amortization	1,124			5,921			2,951			14,889			—			24,885
Stock-based compensation	11,223			—			—			—			—			11,223
Provision for doubtful accounts	—			325			(1,422		)	4,491			—			3,394
Asset impairments	—			1,646			4,677			2,177			—			8,500
Equity in earnings	20,942			(687		)	—			1,058			(20,255		)	1,058
Non-cash interest expense	785			675			—			378			—			1,838
Deferred income taxes	—			—			—			184			—			184
Other adjustments to reconcile net (loss)/income	126			1,304			(1,321		)	(377		)	—			(268		)
Changes in operating assets and liabilities:
Trade accounts receivable	—			(2,670		)	42,146			(1,168		)	—			38,308
Inventories	—			(14,235		)	(4,525		)	(2,125		)	3,102			(17,783		)
Intercompany	29,829			(5,169		)	(7,900		)	(16,760		)	—			—
Other operating assets and liabilities	(582		)	4,377			(21,918		)	(20,031		)	—			(38,154		)
Cash used in operating activities of continuing operations	(77		)	(9,018		)	(4,712		)	(16,434		)	—			(30,241		)
Cash provided by operating activities of discontinued operations	—			—			9,090			2,757			—			11,847
Net cash (used in)/provided by operating activities	(77		)	(9,018		)	4,378			(13,677		)	—			(18,394		)
Cash flows from investing activities:
Capital expenditures	(3,971		)	(3,562		)	(3,950		)	(17,072		)	—			(28,555		)
Cash used in investing activities of continuing operations	(3,971		)	(3,562		)	(3,950		)	(17,072		)	—			(28,555		)
Cash used in investing activities of discontinued operations	—			—			(89		)	—			—			(89		)
Net cash used in investing activities	(3,971		)	(3,562		)	(4,039		)	(17,072		)	—			(28,644		)
Cash flows from financing activities:
Borrowings on lines of credit	—			—			—			6,157			—			6,157
Payments on lines of credit	—			—			—			(8,860		)	—			(8,860		)
Borrowings on long-term debt	—			49,000			—			54,134			—			103,134
Payments on long-term debt	—			(36,200		)	—			(9,502		)	—			(45,702		)
Stock option exercises and employee stock purchases	3,832			—			—			—			—			3,832
Cash provided by financing activities of continuing operations	3,832			12,800			—			41,929			—			58,561
Cash provided by financing activities of discontinued operations	—			—			—			—			—			—
Net cash provided by financing activities	3,832			12,800			—			41,929			—			58,561
Effect of exchange rate changes on cash	—			—			—			(5,453		)	—			(5,453		)
Net (decrease)/increase in cash and cash equivalents	(216		)	220			339			5,727			—			6,070
Cash and cash equivalents, beginning of period	324			1,966			(1,831		)	41,364			—			41,823
Cash and cash equivalents, end of period	$	108		$	2,186		$	(1,492	)	$	47,091		$	—		$	47,893

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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 10-Q and 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:

• known or anticipated trends regarding our net revenues, selling, general and administrative expenses, Adjusted EBITDA and other operating results; and

• 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 and interest rate fluctuations;

• our ability to remain compliant with our debt covenants;

• payments due on contractual commitments and other debt obligations;

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• 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 board-riding 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), 658 Company-owned retail stores, licensed 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 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

We previously 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;

• 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 under-performing retail stores, reorganizing wholesale sales operations, implementing greater pricing discipline, and improving product segmentation.

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We expect that the PIP, when fully implemented by the end of fiscal 2017, could improve our Adjusted EBITDA by approximately $150 million compared to our fiscal 2012 Adjusted EBITDA. The timing of this expected improvement has been deferred by one year from our original expectations due to several factors impacting our current operating results (see "Known or Anticipated Trends"). We continue to expect approximately one-half of this improvement to come from supply chain optimization and the remainder 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 initiatives through the second 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 subsidiary that owned and operated our Hawk brand, for $19 million. The sale of these businesses generated a net after-tax gain of approximately $31 million, which is included in income from discontinued operations. As a result, both our Mervin and Hawk businesses were classified as “held for sale” as of October 31, 2013 and are presented as discontinued operations in our consolidated financial statements for all periods presented. The Company’s sale of these businesses generated income tax expense of approximately $18 million within discontinued operations during the first six months 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. See Note 15 to our condensed consolidated financial statements, “Discontinued Operations”, for further discussion of the operating results of our discontinued businesses.

At October 31, 2013, we also classified our equity interest in Surfdome Shop, Ltd. (“Surfdome”), a multi-brand e-commerce retailer, as "held for sale" based on the status of our negotiations to sell our majority stake in Surfdome at that time. During the second quarter of fiscal 2014, we decided to maintain our investment in Surfdome. As a result, we have reclassified Surfdome back into continuing operations for all periods presented herein. As a result of the sale process conducted during the second quarter of fiscal 2014, the Company received offers to purchase from third parties which indicated that there was an impairment in the value of Surfdome. We recorded a $15 million impairment in EMEA continuing operations to write-down Surfdome goodwill and intangible assets to their estimated fair market value. As a result of our 51% ownership stake in Surfdome, 49% of this charge, or $7.5 million, is allocated to "net loss/(income) attributable to non-controlling interest" in our condensed consolidated statements of operations for the second quarter and six months ended April 30, 2014. See Note 7 to our condensed consolidated financial statements, "Intangible Assets and Goodwill", for further discussion on the impairment charge.

Known or Anticipated Trends

Based on our recent operating results and current perspective on our operating environment. we anticipate certain trends continuing to impact our operating results during the second half of fiscal 2014, including:

• Year-over-year net revenue comparisons continuing to be unfavorable. Within this trend, we expect the year-over-year net revenue comparisons to be unfavorable in our North America and Europe wholesale channels, and favorable in our emerging markets and our e-commerce channel;

• Year-over-year SG&A comparisons being less favorable in the second half of fiscal 2014 due to annualizing against the expense reduction initiatives we implemented last year and to the timing of planned marketing campaigns; and

• Fiscal 2014 Adjusted EBITDA being below fiscal 2013 results with third quarter year-over-year comparisons being more impacted.

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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 second quarter and first six months 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.

	Second Quarter Ended April 30,				Six Months Ended April 30,
	2014		2013		2014		2013
Statements of Operations data
Revenues, net	100.0	%	100.0	%	100.0	%	100.0	%
Gross profit	48.7	%	45.9	%	49.7	%	48.3	%
Selling, general and administrative expense	52.3	%	47.6	%	51.9	%	49.8	%
Asset impairments	4.9	%	1.2	%	2.5	%	1.0	%
Operating loss	(8.5	)%	(2.9	)%	(4.8	)%	(2.5	)%
Interest expense, net	4.7	%	3.4	%	4.7	%	3.5	%
Foreign currency loss/(gain)	0.2	%	(0.6	)%	0.5	%	0.0	%
Loss before (benefit)/provision for income taxes	(13.4	)%	(5.7	)%	(10.0	)%	(6.1	)%
Other data
Adjusted EBITDA (1)	1.4	%	2.5	%	1.9	%	2.4	%

(1) Adjusted EBITDA is defined as loss from continuing operations attributable to Quiksilver, Inc. before (i) interest expense, (ii) (benefit)/provision for income taxes, (iii) depreciation and amortization, (iv) non-cash stock-based compensation expense and (v) non-cash asset impairments, net of non-controlling interest. For the quarter ended April 30, 2014, non-cash asset impairments reflect Quiksilver, Inc.'s 51% share of the Surfdome impairment charge. 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, 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 from continuing operations attributable to Quiksilver, Inc. to Adjusted EBITDA for the second quarter and first six months of both fiscal 2014 and 2013:

	Second Quarter Ended April 30,						Six Months Ended April 30,
In thousands	2014			2013			2014			2013
Net loss from continuing operations attributable to Quiksilver, Inc.	$	(45,960	)	$	(32,904	)	$	(68,074	)	$	(64,108	)
(Benefit)/provision for income taxes	(1,173		)	6,828			(5,503		)	10,005
Interest expense, net	19,240			15,342			38,695			30,850
Depreciation and amortization	14,703			12,734			25,614			24,885
Non-cash stock-based compensation expense	6,525			3,887			11,588			11,223
Non-cash asset impairments	12,502			5,332			13,385			8,500
Adjusted EBITDA	$	5,837		$	11,219		$	15,705		$	21,355

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Second Quarter (Three Months) Ended April 30, 2014 Compared to Second Quarter (Three Months) Ended April 30, 2013

Revenues, net

Revenues, net – by Segment

The following tables present consolidated net revenues (in millions) by segment in historical currency (as reported) and constant currency (current year exchange rates) for the second quarter of fiscal 2014 and 2013:

	Second Quarter Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Historical Currency (as reported)	2014		2013
Americas	$	186	$	226	$	(40	)	(18	)%
EMEA	162		165		(3		)	(2	)%
APAC	60		64		(4		)	(6	)%
Corporate	0		1		(1		)
Total	$	408	$	456	$	(47	)	(10	)%

We use constant currency measurements to better understand 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 average foreign currency exchange rate used in translation for the current period and applying that same rate to the prior period.

	Second Quarter Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Constant Currency (current year exchange rates)	2014		2013
Americas	$	186	$	222	$	(35	)	(16	)%
EMEA	162		170		(8		)	(5	)%
APAC	60		58		2			3	%
Corporate	0		1		(1		)
Total	$	408	$	450	$	(42	)	(9	)%

On an as reported basis, total net revenues for the second quarter of fiscal 2014 decreased $47 million, or 10%, to $408 million from $456 million in the comparable period of the prior year.

Net revenues in our Americas segment decreased 18% on an as reported basis (16% in constant currency) versus the prior year period. Excluding the effects of foreign currency fluctuations, Americas segment net revenues decreased 20% in the developed markets of North America, but increased in excess of 30% on a combined basis in the emerging markets of Brazil and Mexico. Americas segment net revenues decreased across all three core brands with a 30% decline in DC brand net revenues, a low-teens percentage decline in Roxy brand net revenues, and a high single-digit percentage decline in Quiksilver brand net revenues. Americas segment net revenues decreased by 20% in our wholesale channel and by a high-single digit percentage in our retail channel. These net revenue decreases were partially offset by low-double digit percentage growth in our e-commerce channel. The net revenue decrease in the Americas wholesale channel was focused within North America and was primarily due to three factors: 1) lower sales of DC brand products of approximately $25 million due primarily to reduced bookings from major customers and reduced clearance sales; 2) lower sales of Roxy brand products of approximately $6 million, also due to reduced bookings from major customers; and (3) a reduction of net revenues of approximately $5 million as a result of the discontinuation of the Quiksilver women’s and other product lines in fiscal 2013.

Net revenues in our EMEA segment decreased 2% on an as reported basis (5% in constant currency) versus the prior year period. Excluding the effects of foreign currency fluctuations, EMEA segment net revenues decreased by a high single-digit percentage in our DC and Quiksilver brands and by a low single-digit percentage in our Roxy brand compared to the prior year. EMEA segment net revenues decreased by a high single-digit percentage in the wholesale channel and a low single-digit percentage in the retail channel. These decreases were partially offset by strong double-digit percentage growth in the e-commerce channel. The net revenue decrease in the EMEA wholesale channel was primarily due to decreased year-over-year net revenues of Spring/Summer products and increased returns and markdowns to aid inventory sell-through versus the prior year period. Net revenues decreased most significantly in Spain and Germany where net revenues declined by a low double-

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digit percentage versus the prior year period. Net revenue decreases in the EMEA segment were partially offset by low double-digit percentage growth in the United Kingdom and the emerging market of Russia versus the prior year period.

Net revenues in our APAC segment decreased 6% on an as reported basis versus the prior year period due to unfavorable foreign currency fluctuations. In constant currency, APAC segment net revenues increased 3% versus the prior year period. Excluding the effects of foreign currency fluctuations, APAC segment net revenues increased by a high single-digit percentage in our DC and Roxy brands and decreased by a low single-digit percentage in our Quiksilver brand. APAC segment net revenues increased by a high-teens percentage in the retail channel and in excess of 40% in the e-commerce channel. These increases were partially offset by a high single-digit percentage decrease in wholesale channel net revenues. APAC segment net revenues increased substantially in the emerging markets of China, South Korea and Taiwan, as well as by a high single-digit percentage in Japan. These increases were partially offset by a high single-digit percentage decline in net revenues in Australia.

Net revenues in our emerging markets, which include Brazil, Russia, Indonesia, China, Mexico, South Korea, and Taiwan, increased 14% versus the prior year period on an as reported basis (28% in constant currency).

Revenues, net – By Brand

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

	Second Quarter Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Historical Currency (as reported)	2014		2013
Quiksilver	$	167	$	182	$	(15	)	(8	)%
Roxy	121		129		(9		)	(7	)%
DC	103		129		(26		)	(20	)%
Other	17		15		3
Total	$	408	$	456	$	(47	)	(10	)%

	Second Quarter Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Constant Currency (current year exchange rates)	2014		2013
Quiksilver	$	167	$	180	$	(13	)	(7	)%
Roxy	121		128		(7		)	(6	)%
DC	103		127		(24		)	(19	)%
Other	17		15		2
Total	$	408	$	450	$	(42	)	(9	)%

Quiksilver brand net revenues decreased 8% on an as reported basis (7% in constant currency) versus the prior year period. Excluding the effects of foreign currency fluctuations, this decrease was primarily due to a high single-digit percentage decline in the wholesale channel with declines across all three regional segments. Retail channel net revenues decreased by a low single-digit percentage with high single-digit percentage declines in the Americas and EMEA segments partially offset by high single-digit percentage growth in the APAC segment. Within the e-commerce channel, Quiksilver brand net revenues grew by double-digit percentages in the EMEA and APAC segments, but decreased slightly in the Americas segment.

Roxy brand net revenues decreased 7% on an as reported basis (6% in constant currency) versus the prior year period. Excluding the effects of foreign currency fluctuations, Roxy brand net revenues decreased primarily due to low-teens percentage declines in the Americas wholesale and retail channels. These decreases were partially offset by strong double-digit percentage growth in the e-commerce channel across all three regional segments and within the APAC segment retail channel.

DC brand net revenues decreased 20% on an as reported basis (19% in constant currency) versus the prior year period. Excluding the effects of foreign currency fluctuations, DC brand net revenues decreased over 30% in the Americas wholesale channel, in excess of 20% in the Americas retail channel, and by a low double-digit percentage in the EMEA segment wholesale channel due primarily to reduced bookings from major customers. DC brand net revenues increased by double-digit percentages in the e-commerce channel across all three regional segments as well as in the retail channel of the APAC and EMEA segments as we expanded the perimeter of this brand within those segments.

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Revenues, net – By Channel

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

	Second Quarter Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Historical Currency (as reported)	2014		2013
Wholesale	$	289	$	341	$	(52	)	(15	)%
Retail	90		91		(2		)	(2	)%
E-commerce	30		23		6			27	%
Total	$	408	$	456	$	(47	)	(10	)%

	Second Quarter Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Constant Currency (current year exchange rates)	2014		2013
Wholesale	$	289	$	337	$	(48	)	(14	)%
Retail	90		90		0			0	%
E-commerce	30		24		6			23	%
Total	$	408	$	450	$	(42	)	(9	)%

Wholesale net revenues decreased 15% on an as reported basis (14% in constant currency) versus the prior year period. Excluding the effects of foreign currency fluctuations, wholesale net revenues declined across all three regional segments and all three core brands.

Retail net revenues decreased 2% on an as reported basis (flat in constant currency) versus the prior year period. Global comparable-store net revenues increased 1% during the second quarter of fiscal 2014. We operated 658 company-owned retail stores, including shop-in-shops, at April 30, 2014 compared to 630 at April 30, 2013. Excluding the effects of foreign currency fluctuations, retail net revenues decreased by a high single-digit percentage in the Americas segment, largely offset by double-digit percentage growth in the APAC segment. Retail net revenues from our DC brand grew significantly on a percentage basis in the APAC and EMEA segments primarily due to expanding the perimeter of this brand. Retail net revenues of Roxy were flat with 20% growth in the APAC segment offset by a low-teens percentage decline in the Americas segment and a low single-digit percentage decline in the EMEA segment. Retail net revenues from our Quiksilver brand decreased by single-digit percentages in the Americas and EMEA segments, partially offset by single-digit growth in the APAC segment.

E-commerce net revenues increased 27% on an as reported basis (23% in constant currency) due to growth across all three regional segments and all three core brands as we continued to expand our online business.

Gross Profit

Gross profit decreased to $199 million in the second quarter of fiscal 2014 from $209 million in the comparable period of the prior year. Gross margin improved to 48.7% of net revenues in the second quarter of fiscal 2014 versus 45.9% in the prior year period. This 280 basis point improvement in gross margins was primarily due to four factors: 1) lower net revenues from clearance sales within the wholesale channel (120 basis points); 2) a net revenue mix shift toward the higher margin retail and e-commerce channels (80 basis points); 3) the net revenue mix shift toward the higher margin EMEA and APAC segments (40 basis points); and 4) the gross margin benefits from licensing activities (20 basis points). Gross margin improved in the wholesale channel across all three regional segments. However, these improvements were partially offset by gross margin declines in the retail channel within the Americas and EMEA regional segments.

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Gross margin as a percentage of net revenues by regional segment for the second quarter of fiscal 2014 and 2013 was as follows:

	Second Quarter Ended April 30,				Basis Point Change
	2014		2013
Americas	42.4	%	40.1	%	230 bp
EMEA	53.2	%	53.3	%	(10) bp
APAC	55.9	%	49.6	%	630 bp
Consolidated	48.7	%	45.9	%	280 bp

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

SG&A for the second quarter of fiscal 2014 decreased $3 million, or 2%, to $214 million from $217 million in the comparable period of the prior year. This decrease was primarily attributable to the favorable impact of expense reduction initiatives within our PIP implemented in the past year. SG&A reductions were primarily driven by reduced employee compensation ($8 million), lower event-related and other marketing spending ($5 million), the closure of under-performing retail stores, and smaller reductions across several expense categories. These SG&A reductions were partially offset by increased charges for bad debt expense ($11 million), early lease terminations ($6 million), and lesser increases across other expenses. The increase in bad debt expense was primarily due to increased reserves for doubtful accounts regarding certain specific independent distributor accounts. The increase in early lease termination expense was related to the closure of under-performing retail store locations.

SG&A by segment (in millions) as reported for the second quarter of fiscal 2014 and 2013 was as follows:

	Second Quarter Ended April 30, 2014				Second Quarter Ended April 30, 2013							Basis Point Change
In millions			% of Net Revenues				% of Net Revenues		$ Change
Americas	$	92	49.2	%	$	84	37.1	%	$	(8	)	1,210 bp
EMEA	80		49.4	%	81		49.1	%	1			30 bp
APAC	33		55.9	%	38		59.3	%	4			(340) bp
Corporate Operations	9				14				6
Consolidated	$	214	52.3	%	$	217	47.6	%	$	3		470 bp

The increase in Americas segment SG&A was primarily due to the increased charges noted above.

Asset Impairments

Asset impairment charges were $20 million in the second quarter of fiscal 2014 compared to $5 million in the second quarter of fiscal 2013. Impairment charges in fiscal 2014 were primarily due to the write-down of our Surfdome goodwill and intangible assets to estimated fair value ($15 million), and a planned restructuring of our e-commerce system ($4 million). Impairment charges in fiscal 2013 were primarily from certain under-performing retail stores in the Americas segment.

Non-Operating Expenses

Net interest expense for the second quarter of fiscal 2014 was $19 million compared to $15 million in the second quarter of fiscal 2013. This increase was primarily due to increased net borrowings and higher interest rates associated with the refinancing of our senior notes in July 2013.

Our foreign currency gain/loss for the second quarter of fiscal 2014 was a $1 million loss compared to a $3 million gain in the prior year period. This loss resulted primarily from the foreign currency exchange effect of certain non-euro denominated assets of our European subsidiaries.

Our income tax benefit in the second quarter of fiscal 2014 was $1 million compared to $7 million of income tax expense in the comparable period of the prior year. Our sale of the Mervin and Hawk businesses during the first quarter of fiscal 2014 resulted in additional income tax expense of approximately $7 million in the second quarter of 2014 within discontinued operations. However, as we do not expect to pay income tax after application of available loss carry-forwards, an offsetting income tax benefit was recognized within continuing operations. Before this income tax benefit, we generated income tax expense in the

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second 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 second quarter of fiscal 2014 was $46 million, or $0.27 per share, compared to $33 million, or $0.20 per share, in the comparable period of the prior year.

Adjusted EBITDA

Adjusted EBITDA decreased to $6 million in the second quarter of fiscal 2014 compared to $11 million in the second quarter of fiscal 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.

Six Months Ended April 30, 2014 Compared to Six Months Ended April 30, 2013

Revenues, net

Revenues, net - by Segment

The following tables present consolidated net revenues (in millions) by segment in historical currency (as reported) and constant currency (current year exchange rates) for the first six months of fiscal 2014 and 2013:

	Six Months Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Historical Currency (as reported)	2014		2013
Americas	$	360	$	409	$	(49	)	(12	)%
EMEA	330		334		(4		)	(1	)%
APAC	130		136		(7		)	(5	)%
Corporate	0		2		(1		)
Total	$	819	$	881	$	(61	)	(7	)%

	Six Months Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Constant Currency (current year exchange rates)	2014		2013
Americas	$	360	$	401	$	(41	)	(10	)%
EMEA	330		342		(12		)	(4	)%
APAC	130		121		9			7	%
Corporate	0		2		(1		)
Total	$	819	$	865	$	(46	)	(5	)%

Net revenues in our Americas segment declined 12% on an as reported basis (10% in constant currency) during the first six months of fiscal 2014 compared to the prior year period. Americas net revenues declined across all three core brands, but most significantly within the wholesale channel. Excluding the effects of foreign currency fluctuations, Americas wholesale net revenues declined in the low-teens on a percentage basis. This decrease was driven by a 25% decline in DC brand net revenues and high single-digit percentage declines from our Quiksilver and Roxy brands due to continuing difficulties in the North America wholesale channel. Americas retail net revenues declined by a low single-digit percentage, primarily due to 6 net store closures since the end of the second quarter of fiscal 2013. E-commerce net revenues grew by a low single-digit percentage. Americas net revenues declined by a low-teens percentage in North America due to continuing difficulties within the wholesale channel. Net revenues in the emerging markets of Brazil and Mexico increased in excess of 25% on a percentage basis.

Net revenues in our EMEA segment declined 1% on an as reported basis (4% in constant currency) during the first half of fiscal 2014 compared to the prior year period. Excluding the effects of foreign currency fluctuations, EMEA net revenues declined by a low double-digit percentage in the wholesale channel, partially offset by strong double-digit percentage growth in the e-

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commerce channel and low single-digit percentage growth in the retail channel. EMEA net revenues decreased across all three core brands, but most prominently in our Quiksilver and DC brands which declined by high single-digit percentages. EMEA wholesale net revenues declined primarily due to decreased year-over-year net revenues of Spring/Summer products and increased returns and markdowns to aid inventory sell-through versus the prior year period. Net revenues decreased most significantly in Germany, where net revenues declined by a high-teens percentage, and France, where net revenues declined by a low single-digit percentage. These declines were partially offset by strong double-digit growth in Russia and in the United Kingdom, due largely to e-commerce growth.

Net revenues in the APAC segment decreased 5% on an as reported basis, but increased 7% in constant currency, versus the prior year period. Excluding the effects of foreign currency fluctuations, APAC net revenues grew by double-digit percentages within the retail and e-commerce channels and were flat in the wholesale channel. APAC net revenues increased across all three core brands, most significantly in our DC and Roxy brands within the retail channel. APAC net revenues in the retail channel were driven by 38 net store openings since the second quarter of fiscal 2013. Net revenues grew significantly in APAC emerging markets and by a low single-digit percentage in Japan. Net revenues decreased by a low single-digit percentage in Australia.

Net revenues in our emerging markets, which include Brazil, Russia, Indonesia, China, Mexico, South Korea, and Taiwan increased by 17% versus the prior year (30% in constant currency).

Revenues, net - by Brand

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

	Six Months Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Historical Currency (as reported)	2014		2013
Quiksilver	$	331	$	361	$	(30	)	(8	)%
Roxy	238		245		(6		)	(3	)%
DC	206		239		(33		)	(14	)%
Other	44		36		8
Total	$	819	$	881	$	(61	)	(7	)%

	Six Months Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Constant Currency (current year exchange rates)	2014		2013
Quiksilver	$	331	$	354	$	(23	)	(7	)%
Roxy	238		240		(2		)	(1	)%
DC	206		234		(28		)	(12	)%
Other	44		37		7
Total	$	819	$	865	$	(46	)	(5	)%

Quiksilver brand net revenues decreased 8% on an as reported basis (7% in constant currency) during the first six months of fiscal 2014 compared to the prior year period. This decrease was primarily due to a low-double digit percentage decline in wholesale channel net revenues which was spread across all three regional segments. These declines were partially offset by strong double-digit percentage growth in our APAC and EMEA e-commerce channels.

Roxy brand net revenues decreased 3% on an as reported basis (1% in constant currency) during the first six months of fiscal 2014 compared to the prior year period. Single-digit percentage declines in net revenues in the Americas wholesale and retail channels and the EMEA wholesale channel were largely offset by growth across all three channels within our APAC segment and within the e-commerce channel across all three segments.

DC brand net revenues decreased 14% on an as reported basis (12% in constant currency) during the first six months of fiscal 2014 versus the prior year period. DC brand net revenues declined by a high-teens percentage in the wholesale channel, particularly in North America and Europe. DC brand net revenues grew by strong double-digit percentages in the APAC and EMEA retail and e-commerce channels as we expanded the perimeter of the brand in these regional segments.

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Revenues, net - by Channel

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

	Six Months Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Historical Currency (as reported)	2014		2013
Wholesale	$	528	$	603	$	(76	)	(13	)%
Retail	220		221		(0		)	(0	)%
E-commerce	72		57		15			26	%
Total	$	819	$	881	$	(61	)	(7	)%

	Six Months Ended April 30,				$ Change Increase (Decrease)			% Change Increase (Decrease)
In millions Constant Currency (current year exchange rates)	2014		2013
Wholesale	$	528	$	592	$	(65	)	(11	)%
Retail	220		215		5			2	%
E-commerce	72		57		14			25	%
Total	$	819	$	865	$	(46	)	(5	)%

Wholesale net revenues decreased 13% on an as reported basis (11% in constant currency) in the first six months of fiscal 2014 versus the prior year period. Excluding the effects of foreign currency fluctuations, wholesale net revenues declined in the low double-digits on a percentage basis in our Americas and EMEA segments. APAC segment net revenues from the wholesale channel were flat. Wholesale net revenues of DC brand products decreased in the high-teens on a percentage basis, Quiksilver brand net revenues declined by a low double-digits percentage, and Roxy brand net revenues decreased by a low single-digit percentage.

Retail net revenues decreased less than 1% on an as reported basis, but increased 2% in constant currency, versus the prior year period. Global retail same-store sales improved 2% for the first six months of fiscal 2014. Excluding the effects of foreign currency fluctuations, retail net revenues increased by a low double-digit percentage in our APAC segment and by a low single-digit percentage in our EMEA segment. Retail net revenues decreased by a low single-digit percentage in our Americas segment, primarily as a result of the closure of 6 under-performing stores over the past twelve months. Retail net revenues increased by a low-teens percentage in our DC brand as a result of double-digit percentage growth in our APAC and EMEA segments due to expanding the perimeter of this brand versus the prior year period. Retail net revenues of our Roxy brand increased by a low single-digit percentage due to double-digit percentage growth in the APAC segment, largely offset by single-digit percentage declines in our Americas and EMEA segments. Retail net revenues of our Quiksilver brand decreased slightly with single-digit percentage growth in our APAC segment offset by a single-digit percentage decline in our Americas segment.

E-commerce net revenues increased 26% on an as reported basis (25% in constant currency) versus the prior year period. E-commerce net revenues increased in all three regional segments and across all three core brands, but was largely focused in our APAC and EMEA segments as we expanded our online business within these segments.

Gross Profit

Gross profit decreased to $407 million in the first six months of fiscal 2014 from $425 million in the comparable period of the prior year. Gross margin increased to 49.7% in the first six months of fiscal 2013 from 48.3% in the prior year period. This 140 basis point improvement in gross margin was primarily due to: 1) the segment and channel net revenue shifts toward our higher margin EMEA and APAC segments and retail and e-commerce channels versus our Americas segment and wholesale channel (100 basis points); 2) the gross margin benefits from licensing activities (30 basis points); and 3) the impact of reduced net revenues from clearance sales in our wholesale channel (20 basis points).

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Gross margin by segment for the first six months of fiscal 2014 and 2013 was as follows:

	Six Months Ended April 30,				Basis Point Change
	2014		2013
Americas	42.8	%	41.3	%	150 bp
EMEA	55.3	%	55.8	%	(50) bp
APAC	54.2	%	51.9	%	230 bp
Consolidated	49.7	%	48.3	%	140 bp

Selling, General and Administrative Expenses ("SG&A")

SG&A for the first six months of fiscal 2014 decreased $13 million, or 3%, to $425 million from $439 million in the comparable period of the prior year. This decrease was primarily attributable to the expense reduction initiatives within our PIP that were implemented in the past year. SG&A reductions were primarily driven by reduced employee compensation ($15 million), reduced event, athlete and other marketing spending ($9 million), the closure of under-performing retail stores, and smaller reductions across several expense categories. These decreases were partially offset by increased charges for bad debt expense ($11 million), early lease terminations ($6 million), and lesser increases across other expenses. The increase in bad debt expense was primarily due to increased reserves for doubtful accounts regarding certain specific independent distributor accounts. The increase in early lease termination expense was related to the closure of under-performing retail store locations.

SG&A by segment (in millions) as reported for the first six months of fiscal 2014 and 2013 was as follows:

	Six Months Ended April 30, 2014				Six Months Ended April 30, 2013				$ Change			Basis Point Change
In millions			% of Net Revenues				% of Net Revenues
Americas	$	175	48.8	%	$	169	41.3	%	$	6		750 bp
EMEA	165		49.9	%	164		49.1	%	1			80 bp
APAC	66		50.9	%	75		55.0	%	(9		)	(410) bp
Corporate Operations	19				31				(12		)
Consolidated	$	425	51.9	%	$	439	49.8	%	$	(13	)	210 bp

Asset Impairments

Asset impairment charges were $21 million in the first six months of fiscal 2014 compared to $9 million in the prior year period. Impairment charges in fiscal 2014 were primarily related to the write-down of Surfdome goodwill and intangible assets to estimated fair value ($15 million), and a planned restructuring of our e-commerce system ($4 million). Impairment charges in fiscal 2013 were primarily related to certain under-performing retail stores, discontinued brands and trademarks associated with those brands.

Non-Operating Expenses

Interest expense for the first six months of fiscal 2014 was $39 million compared to $31 million in the first six months of fiscal 2013. This increase was primarily due to increased net borrowings and higher interest rates associated with the refinancing of our senior notes in July 2013.

Our foreign currency loss amounted to $4 million for the first six months of fiscal 2014 compared to $0.4 million in the comparable period of the prior year. This larger 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 six months of fiscal 2014 was $6 million compared to income tax expense of $10 million in the comparable period of the prior year. Our sale of the Mervin and Hawk businesses in the first quarter of fiscal 2014 resulted in aggregate income tax expense of approximately $18 million for the first six months of fiscal 2014 within discontinued operations. However, as we do not expect to pay income tax after application of available loss carry-forwards, an offsetting income tax benefit was recognized within continuing operations. Before this income tax benefit, we generated income tax expense in the first six months 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.

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Net Loss from Continuing Operations Attributable to Quiksilver, Inc.

Our net loss from continuing operations attributable to Quiksilver, Inc. for the first six months of fiscal 2014 was $68 million, or $0.40 per share, compared to $64 million, or $0.39 per share, in the comparable period of the prior year.

Adjusted EBITDA

Adjusted EBITDA decreased to $16 million in the first six months of fiscal 2014 compared to $21 million in the first six months of fiscal 2013. This decrease was primarily due to the net revenue decline during fiscal 2014, partially offset by SG&A reductions. 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	April 30, 2014		October 31, 2013		April 30, 2013
Cash and cash equivalents	$	67	$	57	$	48
Restricted cash	56		—		—
Working capital	561		548		547
Total indebtedness	897		831		814

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

Net cash used by operating activities was $40 million in the first six months of fiscal 2014 compared to $18 million in the comparable period of the prior year. This $22 million increase in cash used was largely driven by a $28 million decrease in cash provided from the operating activities of our discontinued operations. Cash used in discontinued operations was $16 million in the first six months of fiscal 2014 compared to cash provided of $12 million in the prior year period (for a discussion of the income tax impacts associated with our sale of the Mervin and Hawk businesses, refer to Note 8 to our condensed consolidated financial statements). Net cash used in operating activities of continuing operations was $24 million in the first six months of fiscal 2014, slightly improved from the $30 million of net cash used in the comparable prior year period. The Company's non-cash adjustments to reconcile net loss to cash used in operating activities were $80 million in the first six months of fiscal 2014 compared to $51 million in the prior year period, generating a $29 million year-over-year benefit. This benefit was largely driven by increased asset impairments and provisions for doubtful accounts. Largely offsetting this benefit were two factors: 1) a larger loss from continuing operations in the first six months of fiscal 2014 ($76 million) versus the comparable prior year period ($63 million); and 2) an increased use of cash from operating assets and liabilities of $9 million. This use of cash from operating assets and liabilities was primarily attributable to increased payments of accounts payable of $51 million, partially offset by improved cash provided from inventories of $46 million.

Net cash used by investing activities totaled $2 million in the first six months of fiscal 2014 compared to $29 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 from the sale of $50 million at April 30, 2014 have been included with the changes in restricted cash of $56 million in the net cash used by investing activities. Capital expenditures totaled $23 million for the first six months of fiscal 2014 compared to $29 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 $51 million in the first six months of fiscal 2014 compared to $59 million in the comparable period of the prior year. Net cash provided primarily resulted from net borrowings on our existing credit facilities. In the first six months of fiscal 2014, the Company paid off debt of approximately $15 million to the former minority interest owners of the Company's Brazil subsidiary, related to the Company's acquisition of the remaining minority interest in this subsidiary in November 2013.

The net increase in cash and cash equivalents for the first six months of both fiscal 2014 and 2013 was approximately $10 million.

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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 15% to $352 million at April 30, 2014 compared to $414 million at October 31, 2013 due to the typical seasonality of our business. Compared to April 30, 2013, our net trade accounts receivable decreased 5% and our average days sales outstanding (“DSO”) increased 19%. The increase in DSO was driven by the net revenue decrease during the first six months of fiscal 2014, longer credit terms granted to certain wholesale customers, and the timing of customer payments.

Our net inventories decreased 9% to $321 million at April 30, 2014 compared to $354 million at October 31, 2013. Compared to April 30, 2013, net inventories decreased 10% and inventory days on hand increased 6%. The decrease in net inventories were primarily due to improved aged inventory management versus the comparable prior year period. The increase in inventory days on hand is the result of the reduced revenues compared to the comparable prior year period.

Income Taxes

As of April 30, 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.

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 fair market value of the inventory, whichever is lower. We regularly review our inventory quantities on hand, and adjust inventory values for excess or 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

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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, and more often if an indicator of impairment exists, 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.

We perform our annual goodwill impairment test during the fourth fiscal quarter. 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, $197 million for EMEA and $6 million for APAC as of October 31, 2013. However, certain factors may result in the need to perform an impairment test prior to the fourth fiscal quarter, including significant under-performance of the Company’s business relative to expected operating results, significant adverse economic and industry trends, significant decline in the Company’s market capitalization for an extended period of time relative to net book value, or a decision to divest an individual business within a reporting unit. Based upon our assessment of these factors in connection with the preparation of the Company’s financial statements for the second quarter of fiscal 2014, given the sales decline in our EMEA operating segment for the six months ended April 30, 2014, we performed an interim impairment test for the EMEA reporting unit using a discounted cash flow analysis and evaluated whether any adverse economic or industry trends would negatively affect the conclusions drawn from the prior period annual impairment test. The results of our interim impairment evaluation indicated that the fair value of the EMEA reporting unit exceeded its carrying value by 9%. As a result, we concluded that the EMEA reporting unit’s goodwill was not impaired based on the interim impairment evaluation.

In the second quarter of fiscal 2014, we also decided to maintain our investment in Surfdome which required us to reclassify this business from discontinued operations into continuing operations. As a result of the sale process conducted during the second quarter of fiscal 2014, we received offers to purchase from third parties which indicated that there was an impairment in the value of Surfdome. Consequently, we conducted an impairment analysis using the market approach based on the third-party purchase offers we received for Surfdome. Based upon the result of this analysis, we recorded a $15 million impairment charge within the EMEA reporting unit to write-down Surfdome goodwill and intangible assets to their estimated fair value.

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.

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

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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.

EMEA revenues decreased 2% in local currency during the second quarter of fiscal 2014 compared to the second quarter of fiscal 2013. As measured in U.S. dollars and reported in our condensed consolidated statements of operations, EMEA revenues decreased 5% primarily as a result of a weaker U.S. dollar versus the euro in comparison to the prior period.

APAC revenues decreased 6% in local currency during the second quarter of fiscal 2014 compared to the second quarter of fiscal 2013. As measured in U.S. dollars and reported in our condensed consolidated statements of operations, APAC revenues increased 3% 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

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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 April 30, 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 April 30, 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 April 30, 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.

At various times since May 2013, we have discussed plans, progress, status, and expectations regarding a multi-year profit improvement plan designed to improve upon our Adjusted EBITDA by an estimated $150 million as compared to our fiscal 2012 Adjusted EBITDA when fully implemented. 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 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.

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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 brands, 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 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. Several 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. Our competitors may offers sales terms and conditions that we are unwilling to match.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 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.

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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.

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.

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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, we could face litigation or legal costs in connection with exiting the relationship or delays in making planned changes to our operations in the applicable territories, and our results of operations and financial condition may be adversely affected.

We have operations in certain emerging markets and developing countries where the risk of asset misappropriation, civil unrest or social instability, 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.

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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.

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 or disruptions 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;

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• 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;

• 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. If we fail to select appropriate new store locations, we may consider exiting such leases before the end of the lease term. 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,

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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 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

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reduced efficiency of our operations, and it could require significant capital investments to remediate any such failure, problem or breach.

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. 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.

Employment related matters may affect our profitability.

As of April 30, 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.

We employ staff in jurisdictions where regulations or business practices dictate that we provide employees we intend to terminate with offer notification periods, or severance payments, which are significantly in excess of those traditionally provided in the United States. Consequently, our costs to terminate employees may be greater than the costs of other companies that do not employ significant numbers of employees in these jurisdictions.

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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	Amended and Restated Quiksilver, Inc. 2013 Performance Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed March 20, 2014). (1)
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
(1)	Management contract or compensatory plan.
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

52

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.

June 6, 2014

QUIKSILVER, INC.

/s/ Richard Shields

Richard Shields

Chief Financial Officer

(Principal Financial and Accounting Officer)

53

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: June 6, 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: June 6, 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 April 30, 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

June 6, 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 April 30, 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

June 6, 2014

XML

Segment Information - Information Related to Company's Operating Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013	Oct. 31, 2013
Revenues, net:
Revenues, net	$ 408,215	$ 455,563	$ 819,383	$ 880,604
Gross profit:
Gross profit	198,871	209,001	406,980	425,265
SG&A expense:
SG&A expense	213,647	216,922	425,466	438,946
Asset impairments:
Asset impairments	19,961	5,332	20,844	8,500
Operating (loss)/income:
Operating income/ (loss)	(34,737)	(13,253)	(39,330)	(22,181)
Identifiable assets:
Identifiable assets	1,541,507		1,541,507		1,620,470
Corporate Operations [Member]
Identifiable assets:
Identifiable assets	70,696		70,696		71,971
Operating Segments [Member] | Americas [Member]
Revenues, net:
Revenues, net	186,427	226,302	359,592	408,938
Gross profit:
Gross profit	78,972	90,772	154,082	168,893
SG&A expense:
SG&A expense	91,670	83,877	175,362	169,064
Asset impairments:
Asset impairments	4,191	5,322	4,413	6,943
Operating (loss)/income:
Operating income/ (loss)	(16,889)	1,573	(25,693)	(7,114)
Identifiable assets:
Identifiable assets	544,287		544,287		581,021
Operating Segments [Member] | EMEA [Member]
Revenues, net:
Revenues, net	161,977	164,725	329,930	333,751
Gross profit:
Gross profit	86,242	87,861	182,364	186,086
SG&A expense:
SG&A expense	80,046	80,837	164,793	163,737
Asset impairments:
Asset impairments	15,770	10	16,431	1,557
Operating (loss)/income:
Operating income/ (loss)	(9,574)	7,014	1,140	20,792
Identifiable assets:
Identifiable assets	730,889		730,889		744,936
Operating Segments [Member] | APAC [Member]
Revenues, net:
Revenues, net	59,721	63,581	129,596	136,276
Gross profit:
Gross profit	33,413	31,523	70,221	70,759
SG&A expense:
SG&A expense	33,391	37,735	66,006	74,927
Asset impairments:
Asset impairments	0	0	0	0
Operating (loss)/income:
Operating income/ (loss)	22	(6,212)	4,215	(4,168)
Identifiable assets:
Identifiable assets	195,635		195,635		222,542
Operating Segments [Member] | Corporate Operations [Member]
Revenues, net:
Revenues, net	90	955	265	1,639
Gross profit:
Gross profit	244	(1,155)	313	(473)
SG&A expense:
SG&A expense	8,540	14,473	19,305	31,218
Asset impairments:
Asset impairments	0	0	0	0
Operating (loss)/income:
Operating income/ (loss)	$ (8,296)	$ (15,628)	$ (18,992)	$ (31,691)

XML

Restructuring Charges - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013
Restructuring and Related Activities [Abstract]
Selling, general and administrative expense	$ 2
Severance charges		$ 3

XML

Inventories, net - Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 30, 2014	Oct. 31, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 4,191	$ 4,725
Work in-process	322	680
Finished goods	316,076	348,246
Inventory, net	$ 320,589	$ 353,651

XML

Debt - Summary of Lines of Credit and Long-term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 30, 2014	Oct. 31, 2013
Debt Instrument [Line Items]
Credit facility	$ 110,000
Capital lease obligations and other borrowings	8,695	6,449
Total debt	896,822	831,300
Less current portion of long-term debt	(49,873)	(23,488)
Long-term debt, net of current portion	846,949	807,812
2017 Notes [Member]
Debt Instrument [Line Items]
Lines of credit and long-term debt	276,855	274,952
2018 Notes [Member]
Debt Instrument [Line Items]
Lines of credit and long-term debt	278,719	278,612
2020 Notes [Member]
Debt Instrument [Line Items]
Lines of credit and long-term debt	222,430	222,285
EMEA [Member]
Debt Instrument [Line Items]
Credit facility	47,334	21,594
ABL Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility	$ 62,789	$ 27,408

XML

Earnings per Share and Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) (Restricted Stock [Member])	6 Months Ended
	Apr. 30, 2014
Restricted Stock [Member]
Shares
Non-vested, beginning balance	195,000
Granted	90,000
Vested	(85,000)
Forfeited	(30,000)
Non-vested, ending balance	170,000

XML

Stockholders' Equity and Non-controlling Interest (Tables)

6 Months Ended

Apr. 30, 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:

	Attributable to Quiksilver, Inc.			Non- controlling Interest			Total Stockholders’ Equity
In thousands
Six Months Ended April 30, 2014:
Balance, October 31, 2013	$	369,706		$	17,952		$	387,658
Stock compensation expense	11,588			—			11,588
Exercise of stock options	4,476			—			4,476
Employee stock purchase plan	673			—			673
Transactions with non-controlling interest holders	(10,839		)	(5,704		)	(16,543		)
Net loss and other comprehensive loss	(46,415		)	(8,201		)	(54,616		)
Balance, April 30, 2014	$	329,189		$	4,047		$	333,236
Six Months Ended April 30, 2013:
Balance, October 31, 2012	$	583,310		$	18,926		$	602,236
Stock compensation expense	11,223			—			11,223
Exercise of stock options	3,275			—			3,275
Employee stock purchase plan	557			—			557
Transactions with non-controlling interest holders	(44		)	44			—
Net loss and other comprehensive income	(72,137		)	682			(71,455		)
Balance, April 30, 2013	$	526,184		$	19,652		$	545,836

XML

Derivative Financial Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gains relating to hedging transactions, net of tax			$ (3)
Reclassification estimate of time to transfer			14 months
Reclassified into earnings net gain/(loss) relating to derivative contracts	$ 1	$ 1	$ 1	$ 2

XML

Basis of Presentation (Policies)

6 Months Ended

Apr. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [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 March 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on various glossary terms, covering a wide range of topics in the accounting standards codification. The amendments represent changes to clarify the master glossary, consolidate multiple instances of the same term into a single definition, or make minor improvements to the master glossary that are not expected to result in substantive changes to the application of existing guidance. The Company adopted this guidance, which did not impact its condensed consolidated financial statements.

In April 2014, the FASB issued Accounting Standards Update ("ASU") 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), which provides amended guidance on the presentation of financial statements and reporting discontinued operations and disclosures of disposals of components of an entity within property, plant and equipment. ASU 2014-08 amends the definition of a discontinued operation and requires entities to disclose additional information about disposal transactions that do not meet the discontinued-operations criteria. The effective date of ASU 2014-08 is for disposals that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. The Company is currently evaluating the impact, if any, that this amended guidance may have on its financial statements and related disclosures.

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 April 30, 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 pre-tax losses. As a result of the valuation allowances recorded, no tax benefits have been recognized for losses incurred in those tax jurisdictions.

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 April 30, 2014, the Company was hedging forecasted transactions expected to occur through June 2015. Assuming April 30, 2014 exchange rates remain constant, $3 million of losses, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 14 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 gain of $1 million each for the second quarters ended April 30,2014 and 2013, and net gains of $1 million and $2 million for the six months ended April 30,2014 and 2013, respectively.

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

Intangible Assets and Goodwill - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2014	Apr. 30, 2013
Indefinite-lived Intangible Assets [Line Items]
Finite lived intangible asset residual value	$ 0	$ 0
Intangible amortization expense		1	1
Estimated annual amortization expense fiscal 2015	2	2
Estimated annual amortization expense fiscal 2016	2	2
Estimated annual amortization expense fiscal 2017	2	2
Estimated annual amortization expense fiscal 2018	2	2
Estimated annual amortization expense fiscal 2019	2	2
Asset impairments	$ 15
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
Operating Segments [Member] | EMEA [Member]
Indefinite-lived Intangible Assets [Line Items]
Percent of fair value exceeding carrying value	9.00%	9.00%

XML

Earnings per Share and Stock-Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Oct. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Risk-free interest rate, minimum	0.60%	0.40%
Risk-free interest rate, maximum	0.70%	0.60%
Outstanding options exercisable	5,284,052
Outstanding options	7,218,535		8,829,618
Options granted	250,000
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Volatility rate, minimum	52.00%	64.00%
Volatility rate, maximum	58.00%	89.00%
Amount for dividend yield		0.00%
Weighted average fair value of the restricted stock units	$ 5.16	$ 4.12
Options granted	90,000
Unrecognized compensation expense	$ 0.8
Unrecognized compensation expense, weighted average period	1 year 8 months 12 days
Vesting period	3 years
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	0.6
Unrecognized compensation expense, weighted average period	1 year 9 months 7 days
Options granted	0
Performance Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding options exercisable	0
Outstanding options	11,944,845		11,675,782
Unrecognized compensation expense	2.9
Unrecognized compensation expense, weighted average period	4 months 28 days
Options granted	300,000
Non-Performance Based Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Risk-free interest rate	2.20%	1.30%
Volatility rate	81.00%	78.00%
Amount for dividend yield	0.00%
Expected life	6 years 8 months	7 years 1 month
Weighted average fair value of grants	$ 5.94	$ 4.61
Weighted average fair value of the restricted stock units	$ 3.25		$ 2.95
Options granted	250,000
Unrecognized compensation expense	$ 2.8
Unrecognized compensation expense, weighted average period	1 year 10 months 24 days
Vesting period	3 years

XML

Basis of Presentation (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Apr. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Asset impairments	$ 15

XML

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014 Segment	Apr. 30, 2013
Income Tax Contingency [Line Items]
Number of segments			4
Income tax expense	$ 7,098,000	$ 319,000	$ 17,508,000	$ 366,000
Liability for uncertain tax positions			12,000,000
Uncertain tax position liabilities excluding interest and penalties	11,000,000		11,000,000
Reasonably possible outcome within the next 12 months range, reduction of liability for unrecognized tax benefits excluding penalties and interest	10,000,000		10,000,000
Reasonably possible outcome within the next 12 months range, increase of liability for unrecognized tax benefits excluding penalties and interest	2,000,000		2,000,000
Mervin And Hawk [Member]
Income Tax Contingency [Line Items]
Income tax expense			$ 18,000,000

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Condensed Consolidating Financial Information - Condensed Consolidating Statement of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013
Condensed Financial Statements, Captions [Line Items]
Revenues, net	$ 408,215	$ 455,563	$ 819,383	$ 880,604
Cost of goods sold	209,344	246,562	412,403	455,339
Gross profit	198,871	209,001	406,980	425,265
Selling, general and administrative expense	213,647	216,922	425,466	438,946
Asset impairments	19,961	5,332	20,844	8,500
Operating (loss)/income	(34,737)	(13,253)	(39,330)	(22,181)
Interest expense, net	19,240	15,342	38,695	30,850
Foreign currency (gain)/loss	893	(2,696)	3,753	390
Equity in earnings	0	0	0	0
(Loss)/income before provision/(benefit) for income taxes	(54,870)	(25,899)	(81,778)	(53,421)
(Benefit)/provision for income taxes	(1,173)	6,828	(5,503)	10,005
(Loss)/income from continuing operations	(53,697)	(32,727)	(76,275)	(63,426)
Income from discontinued operations	(7,113)	509	30,400	584
Net (loss)/income	(60,810)	(32,218)	(45,875)	(62,842)
Net loss/(income) attributable to non-controlling interest	7,737	(177)	8,201	(682)
Net (loss)/income attributable to Quiksilver, Inc.	(53,073)	(32,395)	(37,674)	(63,524)
Other comprehensive (loss)/income	5,681	(16,723)	(8,741)	(8,613)
Comprehensive loss attributable to Quiksilver, Inc.	(47,392)	(49,118)	(46,415)	(72,137)
Quiksilver, Inc. [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	116	116	232	232
Cost of goods sold	193	0	193	0
Gross profit	(77)	116	39	232
Selling, general and administrative expense	6,378	11,753	15,403	27,728
Asset impairments	0	0	0	0
Operating (loss)/income	(6,455)	(11,637)	(15,364)	(27,496)
Interest expense, net	11,618	7,269	23,218	14,538
Foreign currency (gain)/loss	124	(28)	160	126
Equity in earnings	34,876	13,095	(1,068)	20,942
(Loss)/income before provision/(benefit) for income taxes	(53,073)	(31,973)	(37,674)	(63,102)
(Benefit)/provision for income taxes	0	422	0	422
(Loss)/income from continuing operations	(53,073)	(32,395)	(37,674)	(63,524)
Income from discontinued operations	0	0	0	0
Net (loss)/income	(53,073)	(32,395)	(37,674)	(63,524)
Net loss/(income) attributable to non-controlling interest	0	0	0	0
Net (loss)/income attributable to Quiksilver, Inc.	(53,073)	(32,395)	(37,674)	(63,524)
Other comprehensive (loss)/income	5,681	(16,723)	(8,741)	(8,613)
Comprehensive loss attributable to Quiksilver, Inc.	(47,392)	(49,118)	(46,415)	(72,137)
QS Wholesale, Inc. [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	91,057	105,393	175,061	193,912
Cost of goods sold	55,352	65,292	105,620	117,895
Gross profit	35,705	40,101	69,441	76,017
Selling, general and administrative expense	59,138	36,564	115,104	72,523
Asset impairments	765	1,646	765	1,646
Operating (loss)/income	(24,198)	1,891	(46,428)	1,848
Interest expense, net	455	1,440	1,465	2,909
Foreign currency (gain)/loss	7	73	(3)	87
Equity in earnings	(692)	(483)	(618)	(687)
(Loss)/income before provision/(benefit) for income taxes	(23,968)	861	(47,272)	(461)
(Benefit)/provision for income taxes	(4,120)	1,231	(10,289)	44
(Loss)/income from continuing operations	(19,848)	(370)	(36,983)	(505)
Income from discontinued operations	(4,165)	0	19,757	0
Net (loss)/income	(24,013)	(370)	(17,226)	(505)
Net loss/(income) attributable to non-controlling interest	0	0	0	0
Net (loss)/income attributable to Quiksilver, Inc.	(24,013)	(370)	(17,226)	(505)
Other comprehensive (loss)/income	0	0	0	0
Comprehensive loss attributable to Quiksilver, Inc.	(24,013)	(370)	(17,226)	(505)
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	80,024	104,308	177,999	214,770
Cost of goods sold	62,878	69,639	130,582	156,937
Gross profit	17,146	34,669	47,417	57,833
Selling, general and administrative expense	21,227	35,314	43,895	70,656
Asset impairments	3,255	3,342	3,477	4,677
Operating (loss)/income	(7,336)	(3,987)	45	(17,500)
Interest expense, net	0	(1)	0	(1)
Foreign currency (gain)/loss	220	46	(4)	110
Equity in earnings	0	0	0	0
(Loss)/income before provision/(benefit) for income taxes	(7,556)	(4,032)	49	(17,609)
(Benefit)/provision for income taxes	(2,933)	(299)	(6,878)	(209)
(Loss)/income from continuing operations	(4,623)	(3,733)	6,927	(17,400)
Income from discontinued operations	(2,948)	709	10,583	539
Net (loss)/income	(7,571)	(3,024)	17,510	(16,861)
Net loss/(income) attributable to non-controlling interest	0	0	0	0
Net (loss)/income attributable to Quiksilver, Inc.	(7,571)	(3,024)	17,510	(16,861)
Other comprehensive (loss)/income	0	0	0	0
Comprehensive loss attributable to Quiksilver, Inc.	(7,571)	(3,024)	17,510	(16,861)
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	268,112	289,793	551,787	584,491
Cost of goods sold	128,800	143,500	258,867	275,560
Gross profit	139,312	146,293	292,920	308,931
Selling, general and administrative expense	128,534	141,133	252,975	282,685
Asset impairments	15,941	344	16,602	2,177
Operating (loss)/income	(5,163)	4,816	23,343	24,069
Interest expense, net	7,167	6,634	14,012	13,404
Foreign currency (gain)/loss	542	(2,787)	3,600	67
Equity in earnings	0	0	0	0
(Loss)/income before provision/(benefit) for income taxes	(12,872)	969	5,731	10,598
(Benefit)/provision for income taxes	5,880	5,474	11,664	9,748
(Loss)/income from continuing operations	(18,752)	(4,505)	(5,933)	850
Income from discontinued operations	0	32	60	251
Net (loss)/income	(18,752)	(4,473)	(5,873)	1,101
Net loss/(income) attributable to non-controlling interest	7,737	(177)	8,201	(682)
Net (loss)/income attributable to Quiksilver, Inc.	(11,015)	(4,650)	2,328	419
Other comprehensive (loss)/income	5,681	(16,723)	(8,741)	(8,613)
Comprehensive loss attributable to Quiksilver, Inc.	(5,334)	(21,373)	(6,413)	(8,194)
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	(31,094)	(44,047)	(85,696)	(112,801)
Cost of goods sold	(37,879)	(31,869)	(82,859)	(95,053)
Gross profit	6,785	(12,178)	(2,837)	(17,748)
Selling, general and administrative expense	(1,630)	(7,842)	(1,911)	(14,646)
Asset impairments	0	0	0	0
Operating (loss)/income	8,415	(4,336)	(926)	(3,102)
Interest expense, net	0	0	0	0
Foreign currency (gain)/loss	0	0	0	0
Equity in earnings	(34,184)	(12,612)	1,686	(20,255)
(Loss)/income before provision/(benefit) for income taxes	42,599	8,276	(2,612)	17,153
(Benefit)/provision for income taxes	0	0	0	0
(Loss)/income from continuing operations	42,599	8,276	(2,612)	17,153
Income from discontinued operations	0	(232)	0	(206)
Net (loss)/income	42,599	8,044	(2,612)	16,947
Net loss/(income) attributable to non-controlling interest	0	0	0	0
Net (loss)/income attributable to Quiksilver, Inc.	42,599	8,044	(2,612)	16,947
Other comprehensive (loss)/income	(5,681)	16,723	8,741	8,613
Comprehensive loss attributable to Quiksilver, Inc.	$ 36,918	$ 24,767	$ 6,129	$ 25,560

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Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 73,918	$ 86,412
Changes in fair value, net of tax	(7,684)	(6,356)
Ending balance	65,177	77,799
Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Net losses (gains) reclassified to COGS	(1,057)	(2,279)
Net losses reclassified to foreign currency loss		22
Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(4,591)	5,756
Changes in fair value, net of tax	2,889	188
Ending balance	(2,759)	3,687
Derivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Net losses (gains) reclassified to COGS	(1,057)	(2,279)
Net losses reclassified to foreign currency loss		22
Foreign Currency Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	78,509	80,656
Net losses (gains) reclassified to COGS	0	0
Net losses reclassified to foreign currency loss		0
Changes in fair value, net of tax	(10,573)	(6,544)
Ending balance	$ 67,936	$ 74,112

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Restricted Cash - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 30, 2014	Oct. 31, 2013
Restricted Cash [Abstract]
Restricted cash balance	$ 56,047	$ 0

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Basis of Presentation

6 Months Ended

Apr. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

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 all periods presented. The Company's fiscal year ends on October 31 (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 thereto 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”). The Company’s Mervin and Hawk 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. As of October 31, 2013, the Company had also classified Surfdome Shop, Ltd. (“Surfdome”), a multi-brand e-commerce retailer, as "held for sale" based on the Company's intent and ability to sell its majority stake in Surfdome at that time. During the second quarter of fiscal 2014, the Company decided to maintain its investment in Surfdome. As a result, the Company has reclassified Surfdome back into continuing operations for all periods presented. The Company recorded an impairment charge of $15 million within continuing operations to write-down Surfdome goodwill and intangible assets to their estimated fair market value (see Note 15, "Discontinued Operations").

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Discontinued Operations - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended		1 Months Ended		6 Months Ended	3 Months Ended	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013	Nov. 30, 2013 Mervin [Member]	Jan. 31, 2014 Hawk [Member]	Apr. 30, 2014 Mervin And Hawk [Member]	Apr. 30, 2014 Surfdome [Member]	Apr. 30, 2014 Surfdome [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	30,833,000		30,833,000	0
Income tax expense	7,098,000	319,000	17,508,000	366,000			18,000,000
Asset impairments	15,000,000							15,000,000
Percentage of ownership owned by parent in subsidiaries								51.00%	51.00%
Percentage of ownership by subsidiary								49.00%	49.00%
Net loss/(income) attributable to non-controlling interest	$ (7,737,000)	$ 177,000	$ (8,201,000)	$ 682,000				$ 7,500,000	$ 7,500,000

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Earnings per Share and Stock-Based Compensation - Schedule of Activity Related to Performance Based Equity Instruments (Detail)	6 Months Ended
	Apr. 30, 2014
Activity related to these performance-based equity instruments
Outstanding, October 31, 2013	8,829,618
Granted	250,000
Exercised	(1,010,666)
Canceled	(850,417)
Outstanding, April 30, 2014	7,218,535
Performance Options [Member]
Activity related to these performance-based equity instruments
Outstanding, October 31, 2013	688,000
Granted	0
Exercised	(12,000)
Canceled	(36,000)
Outstanding, April 30, 2014	640,000
Performance Restricted Stock Units [Member]
Activity related to these performance-based equity instruments
Outstanding, October 31, 2013	11,675,782
Granted	300,000
Exercised	0
Canceled	(30,937)
Outstanding, April 30, 2014	11,944,845

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Intangible Assets and Goodwill (Tables)

6 Months Ended

Apr. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

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

	April 30, 2014							October 31, 2013
In thousands	Gross Amount		Accumulated Amortization			Net Book Value		Gross Amount		Accumulated Amortization			Net Book Value
Non-amortizable trademarks	$	124,117	$	—		$	124,117	$	124,099	$	—		$	124,099
Amortizable trademarks	21,664		(12,369		)	9,295		23,214		(11,543		)	11,671
Amortizable licenses	12,439		(12,439		)	—		12,749		(12,749		)	—
Other amortizable intangibles	8,296		(6,198		)	2,098		8,185		(5,964		)	2,221
	$	166,516	$	(31,006	)	$	135,510	$	168,247	$	(30,256	)	$	137,991

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		$	190,986		$	135,752		$	402,712
Accumulated impairment losses	—			—			(129,545		)	(129,545		)
Net goodwill at November 1, 2012	$	75,974		$	190,986		$	6,207		$	273,167
Foreign currency translation and other	(1,031		)	5,598			—			4,567
Gross goodwill	74,943			196,584			135,752			407,279
Accumulated impairment losses	—			—			(129,545		)	(129,545		)
Net goodwill at October 31, 2013	$	74,943		$	196,584		$	6,207		$	277,734
Foreign currency translation and other	(390		)	986			—			596
Gross goodwill	74,553			197,570			135,752			407,875
Accumulated impairment losses	—			(12,765		)	(129,545		)	(142,310		)
Net goodwill at April 30, 2014	$	74,553		$	184,805		$	6,207		$	265,565

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Inventories, net (Tables)

6 Months Ended

Apr. 30, 2014

Inventory Disclosure [Abstract]

Inventories

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

In thousands	April 30, 2014		October 31, 2013
Raw materials	$	4,191	$	4,725
Work in-process	322		680
Finished goods	316,076		348,246
	$	320,589	$	353,651

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Debt - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2014	Apr. 30, 2013
Debt Instrument [Line Items]
Maximum cash borrowings and letters of credit	$ 248,000,000	$ 248,000,000
Direct borrowings	110,000,000	110,000,000
Letters of credit outstanding	46,000,000	46,000,000
Amount of remaining borrowing capacity available for letters of credit		0	6,157,000
Repayments of other borrowings	15,000,000
U.S. and APAC [Member]
Debt Instrument [Line Items]
Amount of availability of remaining borrowings	67,000,000	67,000,000
Amount of remaining borrowing capacity available for letters of credit		55,000,000
EMEA [Member]
Debt Instrument [Line Items]
Amount of availability of remaining borrowings	24,000,000	24,000,000
Fair Value [Member]
Debt Instrument [Line Items]
Lines of credit and long-term debt fair value	972,000,000	972,000,000
Lines of credit and long-term debt carrying value	$ 897,000,000	$ 897,000,000

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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	6 Months Ended
	Apr. 30, 2014
Shares
Outstanding, October 31, 2013	8,829,618
Granted, Shares	250,000
Exercised, Shares	(1,010,666)
Canceled, Shares	(850,417)
Outstanding, April 30, 2014	7,218,535
Options exercisable, April 30, 2014	5,284,052
Weighted Average Price
Outstanding, Weighted Average Price, beginning balance	$ 4.83
Granted, Weighted Average Price	$ 8.21
Exercised, Weighted Average Price	$ 4.37
Canceled, Weighted Average Price	$ 7.89
Outstanding, Weighted Average Price, ending balance	$ 4.64
Options exercisable, Weighted Average Price, ending balance	$ 4.22
Outstanding, Weighted Average Life, ending balance	5 years 5 months 14 days
Options exercisable, Weighted Average Life, January 31, 2014	4 years 10 months 12 days
Exercised, Aggregate Intrinsic Value	$ 3,884
Outstanding, Aggregate Intrinsic Value, ending balance	15,751
Options exercisable, January 31, 2014, Aggregate Intrinsic Value	$ 14,130

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Restructuring Charges (Tables)

6 Months Ended

Apr. 30, 2014

Restructuring and Related Activities [Abstract]

Activity and Liability Balances

Activity and liability balances recorded as part of the PIP 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	5,593			5,120			10,713
Cash payments	(12,123		)	(2,861		)	(14,984		)
Balance, April 30, 2014	$	5,629		$	9,198		$	14,827

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Debt (Tables)

6 Months Ended

Apr. 30, 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	April 30, 2014			October 31, 2013
EMEA credit facilities	$	47,334		$	21,594
2017 Notes	276,855			274,952
ABL Credit Facility	62,789			27,408
2018 Notes	278,719			278,612
2020 Notes	222,430			222,285
Capital lease obligations and other borrowings	8,695			6,449
Total debt	896,822			831,300
Less current portion of long-term debt	(49,873		)	(23,488		)
Long-term debt, net of current portion	$	846,949		$	807,812

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013
Cash flows from operating activities:
Net loss	$ (45,875)	$ (62,842)
Adjustments to reconcile net loss to net cash used in operating activities:
Income from discontinued operations	(30,400)	(584)
Depreciation and amortization	25,614	24,885
Stock-based compensation	11,588	11,223
Provision for doubtful accounts	15,240	3,394
(Gain)/loss on disposal of fixed assets	(493)	29
Unrealized foreign currency loss/(gain)	4,245	(297)
Asset impairments	20,844	8,500
Non-cash interest expense	1,702	1,838
Equity in earnings	1,144	1,058
Deferred income taxes	(145)	184
Changes in operating assets and liabilities:
Trade accounts receivable	41,759	38,308
Other receivables	(6,700)	(3,146)
Inventories	28,490	(17,783)
Prepaid expenses and other current assets	(7,717)	(8,763)
Other assets	1,608	3,543
Accounts payable	(69,094)	(17,860)
Accrued liabilities and other long-term liabilities	(14,736)	(12,043)
Income taxes payable	(1,026)	115
Cash (used in)/provided by operating activities of continuing operations	(23,952)	(30,241)
Cash (used in)/provided by operating activities of discontinued operations	(16,274)	11,847
Net cash (used in)/provided by operating activities	(40,226)	(18,394)
Cash flows from investing activities:
Capital expenditures	(23,022)	(28,555)
Changes in restricted cash	(56,047)	0
Cash used in investing activities of continuing operations	(79,069)	(28,555)
Cash provided by/(used in) investing activities of discontinued operations	77,051	(89)
Net cash (used in)/provided by investing activities	(2,018)	(28,644)
Cash flows from financing activities:
Borrowings on lines of credit	0	6,157
Payments on lines of credit	0	(8,860)
Borrowings on long-term debt	167,199	103,134
Payments on long-term debt	(105,687)	(45,702)
Payment on short-term debt	(15,223)	0
Stock option exercises and employee stock purchases	5,150	3,832
Payments of debt issuance costs	(771)	0
Cash provided by financing activities of continuing operations	50,668	58,561
Cash provided by financing activities of discontinued operations	0	0
Net cash provided by financing activities	50,668	58,561
Effect of exchange rate changes on cash	1,430	(5,453)
Net (decrease)/increase in cash and cash equivalents	9,854	6,070
Cash and cash equivalents, beginning of period	57,280	41,823
Cash and cash equivalents, end of period	67,134	47,893
Cash paid during the period for:
Interest	38,530	28,828
Income taxes	9,618	8,126
Non-cash investing activities:
Capital expenditures accrued at period end	5,211	5,963
Non-cash financing activities:
Debt issued for purchase of non-controlling interest	$ 17,388	$ 0

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Derivative Financial Instruments (Tables)

6 Months Ended

Apr. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding Derivative Contracts Entered into Hedge Forecasted Purchases

As of April 30, 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	$	222,950	May 2014 – June 2015	$	(2,904	)

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

The following table reflects 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
April 30, 2014:
Derivative assets:
Other receivables	$	—	$	989		$	—	$	989
Derivative liabilities:
Accrued liabilities	—		(3,756		)	—		(3,756		)
Other liabilities	—		(137		)	—		(137		)
Total fair value	$	—	$	(2,904	)	$	—	$	(2,904	)
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 (Detail) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013
Earnings per Share and Stock Based Compensation [Abstract]
Shares used in computing basic net loss per share	170,475	166,815	170,105	166,282
Dilutive effect of stock options and restricted stock	0	0	0	0
Dilutive effect of stock warrants	0	0	0	0
Shares used in computing diluted net loss per share	170,475	166,815	170,105	166,282

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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	6 Months Ended	12 Months Ended
	Apr. 30, 2014	Oct. 31, 2013
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 19,098	$ 12,191
Charged to expense	10,713	28,509
Cash payments	(14,984)	(21,010)
Adjustments		(592)
Ending Balance	14,827	19,098
Workforce [Member]
Restructuring Reserve [Roll Forward]
Beginning Balance	12,159	5,335
Charged to expense	5,593	22,671
Cash payments	(12,123)	(15,847)
Adjustments		0
Ending Balance	5,629	12,159
Facility & Other [Member]
Restructuring Reserve [Roll Forward]
Beginning Balance	6,939	6,856
Charged to expense	5,120	5,838
Cash payments	(2,861)	(5,163)
Adjustments		(592)
Ending Balance	$ 9,198	$ 6,939

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013
Income Statement [Abstract]
Revenues, net	$ 408,215	$ 455,563	$ 819,383	$ 880,604
Cost of goods sold	209,344	246,562	412,403	455,339
Gross profit	198,871	209,001	406,980	425,265
Selling, general and administrative expense	213,647	216,922	425,466	438,946
Asset impairments	19,961	5,332	20,844	8,500
Operating (loss)/income	(34,737)	(13,253)	(39,330)	(22,181)
Interest expense, net	19,240	15,342	38,695	30,850
Foreign currency loss/(gain)	893	(2,696)	3,753	390
Loss before (benefit)/provision for income taxes	(54,870)	(25,899)	(81,778)	(53,421)
(Benefit)/provision for income taxes	(1,173)	6,828	(5,503)	10,005
(Loss)/income from continuing operations	(53,697)	(32,727)	(76,275)	(63,426)
(Loss)/income from discontinued operations, net of tax (includes net gain on sale of $30,833 and $0 for the six months of 2014 and 2013, respectively)	(7,113)	509	30,400	584
Net (loss)/income	(60,810)	(32,218)	(45,875)	(62,842)
Less: net loss/(income) attributable to non-controlling interest	7,737	(177)	8,201	(682)
Net (loss)/income attributable to Quiksilver, Inc.	(53,073)	(32,395)	(37,674)	(63,524)
Loss per share from continuing operations attributable to Quiksilver, Inc.	$ (0.27)	$ (0.20)	$ (0.40)	$ (0.39)
(Loss)/income per share from discontinued operations attributable to Quiksilver, Inc.	$ (0.04)	$ 0.00	$ 0.18	$ 0.00
Net loss per share attributable to Quiksilver, Inc.	$ (0.31)	$ (0.19)	$ (0.22)	$ (0.38)
Loss per share from continuing operations attributable to Quiksilver, Inc., assuming dilution	$ (0.27)	$ (0.20)	$ (0.40)	$ (0.39)
(Loss)/income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution	$ (0.04)	$ 0.00	$ 0.18	$ 0.00
Net loss per share attributable to Quiksilver, Inc., assuming dilution	$ (0.31)	$ (0.19)	$ (0.22)	$ (0.38)
Weighted average common shares outstanding, basic and diluted	170,475	166,815	170,105	166,282
Amounts attributable to Quiksilver, Inc.:
Loss from continuing operations	(45,960)	(32,904)	(68,074)	(64,108)
(Loss)/income from discontinued operations, net of tax	(7,113)	509	30,400	584
Net (loss)/income attributable to Quiksilver, Inc.	$ (53,073)	$ (32,395)	$ (37,674)	$ (63,524)

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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 $)	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013
Non-Performance Based Options [Member]
Shares
Non-vested, beginning balance	2,784,826
Granted	250,000
Vested	(995,343)
Canceled	(105,000)
Non-vested, ending balance	1,934,483
Weighted Average Grant Date Fair Value
Non-vested, beginning balance, Weighted-Average Grant Date Fair Value	$ 2.95
Granted, Weighted-Average Grant Date Fair Value	$ 5.94	$ 4.61
Vested, Weighted-Average Grant Date Fair Value	$ 2.91
Canceled, Weighted-Average Grant Date Fair Value	$ 4.71
Non-vested, ending balance, Weighted-Average Grant Date Fair Value	$ 3.25

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Apr. 30, 2014	Oct. 31, 2013
Current assets:
Cash and cash equivalents	$ 67,134	$ 57,280
Restricted cash	56,047	0
Trade accounts receivable, less allowances of $62,784 (2014) and $60,912 (2013)	351,744	413,500
Other receivables	29,604	22,881
Inventories, net	320,589	353,651
Deferred income taxes - current	9,696	10,103
Prepaid expenses and other current assets	30,966	24,463
Current portion of assets held for sale	0	33,378
Total current assets	865,780	915,256
Fixed assets, less accumulated depreciation and amortization of $250,761 (2014) and $251,150 (2013)	224,276	234,125
Intangible assets, net	135,510	137,991
Goodwill	265,565	277,734
Other assets	50,376	53,688
Assets held for sale, net of current portion	0	1,676
Total assets	1,541,507	1,620,470
Current liabilities:
Accounts payable	141,721	213,508
Accrued liabilities	111,456	121,664
Current portion of long-term debt	49,873	23,488
Income taxes payable	1,577	3,912
Current portion of assets held for sale	0	4,468
Total current liabilities	304,627	367,040
Long-term debt, net of current portion	846,949	807,812
Other long-term liabilities	34,649	36,345
Deferred income taxes long-term	22,046	21,428
Assets held for sale, net of current portion	0	187
Total liabilities	1,208,271	1,232,812
Equity:
Preferred stock, $0.01 par value, authorized shares - 5,000,000; issued and outstanding shares - none	0	0
Common stock, $0.01 par value, authorized shares - 285,000,000; issued shares - 173,781,295 (2014) and 172,579,182 (2013)	1,738	1,726
Additional paid-in capital	582,612	576,726
Treasury stock, 2,885,200 shares	(6,778)	(6,778)
Accumulated deficit	(313,560)	(275,886)
Accumulated other comprehensive income	65,177	73,918
Total Quiksilver, Inc. stockholders’ equity	329,189	369,706
Non-controlling interest	4,047	17,952
Total equity	333,236	387,658
Total liabilities and equity	$ 1,541,507	$ 1,620,470

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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	Apr. 30, 2014	Oct. 31, 2013
Derivative liabilities:
Total fair value	$ (2,904)	$ (905)
Other Receivables [Member]
Derivative assets:
Derivative assets	989	2,026
Other Assets [Member]
Derivative assets:
Derivative assets		382
Accrued Liabilities [Member]
Derivative liabilities:
Derivative liabilities	(3,756)	(3,313)
Other Liabilities [Member]
Derivative liabilities:
Derivative liabilities	(137)
Level 1 [Member]
Derivative liabilities:
Total fair value	0	0
Level 1 [Member] | Other Receivables [Member]
Derivative assets:
Derivative assets	0	0
Level 1 [Member] | Other Assets [Member]
Derivative assets:
Derivative assets		0
Level 1 [Member] | Accrued Liabilities [Member]
Derivative liabilities:
Derivative liabilities	0	0
Level 1 [Member] | Other Liabilities [Member]
Derivative liabilities:
Derivative liabilities	0
Level 2 [Member]
Derivative liabilities:
Total fair value	(2,904)	(905)
Level 2 [Member] | Other Receivables [Member]
Derivative assets:
Derivative assets	989	2,026
Level 2 [Member] | Other Assets [Member]
Derivative assets:
Derivative assets		382
Level 2 [Member] | Accrued Liabilities [Member]
Derivative liabilities:
Derivative liabilities	(3,756)	(3,313)
Level 2 [Member] | Other Liabilities [Member]
Derivative liabilities:
Derivative liabilities	(137)
Level 3 [Member]
Derivative liabilities:
Total fair value	0	0
Level 3 [Member] | Other Receivables [Member]
Derivative assets:
Derivative assets	0	0
Level 3 [Member] | Other Assets [Member]
Derivative assets:
Derivative assets		0
Level 3 [Member] | Accrued Liabilities [Member]
Derivative liabilities:
Derivative liabilities	0	0
Level 3 [Member] | Other Liabilities [Member]
Derivative liabilities:
Derivative liabilities	$ 0

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Discontinued Operations (Tables)

6 Months Ended

Apr. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Summarized Results from Discontinued Operations

The operating results of discontinued operations for the second quarter and first six months of fiscal 2014 and 2013 are as follows:

	Second Quarter Ended April 30,					Six Months Ended April 30,
In thousands	2014			2013		2014		2013
Revenues, net	$	20		$	3,184	$	1,626	$	9,161
(Loss)/income before income taxes	(15		)	828		47,908		950
Provision for income taxes	7,098			319		17,508		366
(Loss)/income from discontinued operations	$	(7,113	)	$	509	$	30,400	$	584

Components of Major Assets and Liabilities

There were no assets classified as held for sale at April 30, 2014. The components of major assets and liabilities held for sale at October 31, 2013 were as follows:

In thousands	October 31, 2013
Assets:
Receivables, net	$	22,792
Inventories, net	9,979
Other	2,283
	$	35,054
Liabilities:
Accounts payable	$	1,206
Accrued liabilities	3,262
Other	187
	$	4,655

Total Assets Held for Sale

Total assets held for sale as of October 31, 2013 by geographical segment were as follows:

In thousands	October 31, 2013
Americas	$	27,398
EMEA	7,001
APAC	655
	$	35,054

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Discontinued Operations - Total Assets Held for Sale (Detail) (USD $) In Thousands, unless otherwise specified	Oct. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	$ 35,054
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	7,001
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

6 Months Ended

Apr. 30, 2014

Equity [Abstract]

Accumulated Other Comprehensive Income

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:

	Derivative Instruments			Foreign Currency Adjustments			Total
In thousands
Six Months Ended April 30, 2014:
Balance, October 31, 2013	$	(4,591	)	$	78,509		$	73,918
Net gains reclassified to COGS	(1,057		)	—			(1,057		)
Changes in fair value, net of tax	2,889			(10,573		)	(7,684		)
Balance, April 30, 2014	$	(2,759	)	$	67,936		$	65,177
Six Months Ended April 30, 2013:
Balance, October 31, 2012	$	5,756		$	80,656		$	86,412
Net gains reclassified to COGS	(2,279		)	—			(2,279		)
Net losses reclassified to foreign currency loss	22			—			22
Changes in fair value, net of tax	188			(6,544		)	(6,356		)
Balance, April 30, 2013	$	3,687		$	74,112		$	77,799

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Condensed Consolidating Financial Information (Tables)

6 Months Ended

Apr. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Operations

Second Quarter Ended April 30, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	105,393		$	104,308		$	289,793		$	(44,047	)	$	455,563
Cost of goods sold	—			65,292			69,639			143,500			(31,869		)	246,562
Gross profit	116			40,101			34,669			146,293			(12,178		)	209,001
Selling, general and administrative expense	11,753			36,564			35,314			141,133			(7,842		)	216,922
Asset impairments	—			1,646			3,342			344			—			5,332
Operating (loss)/income	(11,637		)	1,891			(3,987		)	4,816			(4,336		)	(13,253		)
Interest expense, net	7,269			1,440			(1		)	6,634			—			15,342
Foreign currency (gain)/loss	(28		)	73			46			(2,787		)	—			(2,696		)
Equity in earnings	13,095			(483		)	—			—			(12,612		)	—
(Loss)/income before provision/(benefit) for income taxes	(31,973		)	861			(4,032		)	969			8,276			(25,899		)
Provision/(benefit) for income taxes	422			1,231			(299		)	5,474			—			6,828
Loss from continuing operations	(32,395		)	(370		)	(3,733		)	(4,505		)	8,276			(32,727		)
Income from discontinued operations	—			—			709			32			(232		)	509
Net loss	(32,395		)	(370		)	(3,024		)	(4,473		)	8,044			(32,218		)
Net income attributable to non-controlling interest	—			—			—			(177		)	—			(177		)
Net loss attributable to Quiksilver, Inc.	(32,395		)	(370		)	(3,024		)	(4,650		)	8,044			(32,395		)
Other comprehensive loss	(16,723		)	—			—			(16,723		)	16,723			(16,723		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(49,118	)	$	(370	)	$	(3,024	)	$	(21,373	)	$	24,767		$	(49,118	)

Condensed Consolidating Statement of Operations

Six Months Ended April 30,2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	232		$	175,061		$	177,999		$	551,787		$	(85,696	)	$	819,383
Cost of goods sold	193			105,620			130,582			258,867			(82,859		)	412,403
Gross profit	39			69,441			47,417			292,920			(2,837		)	406,980
Selling, general and administrative expense	15,403			115,104			43,895			252,975			(1,911		)	425,466
Asset impairments	—			765			3,477			16,602			—			20,844
Operating (loss)/income	(15,364		)	(46,428		)	45			23,343			(926		)	(39,330		)
Interest expense, net	23,218			1,465			—			14,012			—			38,695
Foreign currency loss/(gain)	160			(3		)	(4		)	3,600			—			3,753
Equity in earnings	(1,068		)	(618		)	—			—			1,686			—
(Loss)/income before (benefit)/provision for income taxes	(37,674		)	(47,272		)	49			5,731			(2,612		)	(81,778		)
(Benefit)/provision for income taxes	—			(10,289		)	(6,878		)	11,664			—			(5,503		)
(Loss)/income from continuing operations	(37,674		)	(36,983		)	6,927			(5,933		)	(2,612		)	(76,275		)
Income from discontinued operations	—			19,757			10,583			60			—			30,400
Net (loss)/income	(37,674		)	(17,226		)	17,510			(5,873		)	(2,612		)	(45,875		)
Net loss attributable to non-controlling interest	—			—			—			8,201			—			8,201
Net (loss)/income attributable to Quiksilver, Inc.	(37,674		)	(17,226		)	17,510			2,328			(2,612		)	(37,674		)
Other comprehensive loss	(8,741		)	—			—			(8,741		)	8,741			(8,741		)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(46,415	)	$	(17,226	)	$	17,510		$	(6,413	)	$	6,129		$	(46,415	)

Condensed Consolidating Statement of Operations

Second Quarter Ended April 30, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	91,057		$	80,024		$	268,112		$	(31,094	)	$	408,215
Cost of goods sold	193			55,352			62,878			128,800			(37,879		)	209,344
Gross profit	(77		)	35,705			17,146			139,312			6,785			198,871
Selling, general and administrative expense	6,378			59,138			21,227			128,534			(1,630		)	213,647
Asset impairments	—			765			3,255			15,941			—			19,961
Operating loss	(6,455		)	(24,198		)	(7,336		)	(5,163		)	8,415			(34,737		)
Interest expense, net	11,618			455			—			7,167			—			19,240
Foreign currency loss	124			7			220			542			—			893
Equity in earnings	34,876			(692		)	—			—			(34,184		)	—
Loss before (benefit)/provision for income taxes	(53,073		)	(23,968		)	(7,556		)	(12,872		)	42,599			(54,870		)
(Benefit)/provision for income taxes	—			(4,120		)	(2,933		)	5,880			—			(1,173		)
Loss from continuing operations	(53,073		)	(19,848		)	(4,623		)	(18,752		)	42,599			(53,697		)
Loss from discontinued operations	—			(4,165		)	(2,948		)	—			—			(7,113		)
Net loss	(53,073		)	(24,013		)	(7,571		)	(18,752		)	42,599			(60,810		)
Net loss attributable to non-controlling interest	—			—			—			7,737			—			7,737
Net loss attributable to Quiksilver, Inc.	(53,073		)	(24,013		)	(7,571		)	(11,015		)	42,599			(53,073		)
Other comprehensive income	5,681			—			—			5,681			(5,681		)	5,681
Comprehensive loss attributable to Quiksilver, Inc.	$	(47,392	)	$	(24,013	)	$	(7,571	)	$	(5,334	)	$	36,918		$	(47,392	)

Condensed Consolidating Statement of Operations

Six Months Ended April 30,2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	232		$	193,912		$	214,770		$	584,491		$	(112,801	)	$	880,604
Cost of goods sold	—			117,895			156,937			275,560			(95,053		)	455,339
Gross profit	232			76,017			57,833			308,931			(17,748		)	425,265
Selling, general and administrative expense	27,728			72,523			70,656			282,685			(14,646		)	438,946
Asset impairments	—			1,646			4,677			2,177			—			8,500
Operating (loss)/income	(27,496		)	1,848			(17,500		)	24,069			(3,102		)	(22,181		)
Interest expense, net	14,538			2,909			(1		)	13,404			—			30,850
Foreign currency loss	126			87			110			67			—			390
Equity in earnings	20,942			(687		)	—			—			(20,255		)	—
(Loss)/income before provision/(benefit) for income taxes	(63,102		)	(461		)	(17,609		)	10,598			17,153			(53,421		)
Provision/(benefit) for income taxes	422			44			(209		)	9,748			—			10,005
(Loss)/income from continuing operations	(63,524		)	(505		)	(17,400		)	850			17,153			(63,426		)
Income from discontinued operations	—			—			539			251			(206		)	584
Net (loss)/income	(63,524		)	(505		)	(16,861		)	1,101			16,947			(62,842		)
Net income attributable to non-controlling interest	—			—			—			(682		)	—			(682		)
Net (loss)/income attributable to Quiksilver, Inc.	(63,524		)	(505		)	(16,861		)	419			16,947			(63,524		)
Other comprehensive loss	(8,613		)	—			—			(8,613		)	8,613			(8,613		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(72,137	)	$	(505	)	$	(16,861	)	$	(8,194	)	$	25,560		$	(72,137	)

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

April 30, 2014

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	125	$	(10	)	$	113	$	66,906	$	—		$	67,134
Restricted cash	—		50,214			—		5,833		—			56,047
Trade accounts receivable, net	—		77,792			30,242		243,710		—			351,744
Other receivables	14		3,480			3,259		22,851		—			29,604
Inventories, net	—		34,845			80,518		227,612		(22,386		)	320,589
Deferred income taxes - current	—		24,624			—		6,181		(21,109		)	9,696
Prepaid expenses and other current assets	2,140		5,309			3,060		20,457		—			30,966
Intercompany balances	—		171,405			—		—		(171,405		)	—
Total current assets	2,279		367,659			117,192		593,550		(214,900		)	865,780
Fixed assets, net	23,066		32,790			17,966		150,454		—			224,276
Intangible assets, net	5,257		44,139			1,085		85,029		—			135,510
Goodwill	—		103,880			7,675		154,010		—			265,565
Other assets	7,958		5,664			1,245		35,509		—			50,376
Deferred income taxes long-term	19,786		—			—		1,260		(21,046		)	—
Investment in subsidiaries	950,882		6,652			—		—		(957,534		)	—
Total assets	$	1,009,228	$	560,784		$	145,163	$	1,019,812	$	(1,193,480	)	$	1,541,507
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,679	$	28,201		$	18,100	$	92,741	$	—		$	141,721
Accrued liabilities	15,266		14,272			6,744		75,174		—			111,456
Current portion of long-term debt	—		576			—		49,297		—			49,873
Income taxes payable	—		168			—		1,409		—			1,577
Deferred income taxes - current	20,365		—			744		—		(21,109		)	—
Intercompany balances	140,212		—			11,827		19,366		(171,405		)	—
Total current liabilities	178,522		43,217			37,415		237,987		(192,514		)	304,627
Long-term debt, net of current portion	501,149		44,090			—		301,710		—			846,949
Other long-term liabilities	368		5,600			8,081		20,600		—			34,649
Deferred income taxes long-term	—		41,039			2,053		—		(21,046		)	22,046
Total liabilities	680,039		133,946			47,549		560,297		(213,560		)	1,208,271
Stockholders’/invested equity	329,189		426,838			97,614		455,468		(979,920		)	329,189
Non-controlling interest	—		—			—		4,047		—			4,047
Total liabilities and equity	$	1,009,228	$	560,784		$	145,163	$	1,019,812	$	(1,193,480	)	$	1,541,507

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		281,279		—			413,500
Other receivables	19		5,613		2,007		15,242		—			22,881
Inventories, net	—		43,405		93,074		240,631		(23,459		)	353,651
Deferred income taxes - current	—		24,624		—		6,588		(21,109		)	10,103
Prepaid expenses and other current assets	3,372		3,271		3,752		14,068		—			24,463
Intercompany balances	—		173,547		—		—		(173,547		)	—
Current portion of assets held for sale	—		—		26,051		7,657		(330		)	33,378
Total current assets	3,426		338,184		173,410		618,681		(218,445		)	915,256
Fixed assets, net	21,378		35,152		21,816		155,779		—			234,125
Intangible assets, net	4,487		44,596		1,154		87,754		—			137,991
Goodwill	—		103,880		7,675		166,179		—			277,734
Other assets	8,025		5,654		1,096		38,913		—			53,688
Deferred income taxes long-term	21,085		—		—		579		(21,664		)	—
Investment in subsidiaries	949,814		8,795		—		—		(958,609		)	—
Assets held for sale, net of current portion	—		—		1,676		—		—			1,676
Total assets	$	1,008,215	$	536,261	$	206,827	$	1,067,885	$	(1,198,718	)	$	1,620,470
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	4,222	$	51,283	$	35,910	$	122,093	$	—		$	213,508
Accrued liabilities	17,900		9,921		6,929		86,914		—			121,664
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		6		—			4,468
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		—		(21,664		)	21,428
Assets held for sale, net of current portion	—		—		187		—		—			187
Total liabilities	638,509		108,376		105,966		596,281		(216,320		)	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	$	1,067,885	$	(1,198,718	)	$	1,620,470

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Six Months Ended April 30,2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(37,674	)	$	(17,226	)	$	17,510		$	(5,873	)	$	(2,612	)	$	(45,875	)
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Income from discontinued operations	—			(19,757		)	(10,583		)	(60		)	—			(30,400		)
Depreciation and amortization	1,157			5,298			4,355			14,804			—			25,614
Stock-based compensation	11,588			—			—			—			—			11,588
Provision for doubtful accounts	—			12,458			158			2,624			—			15,240
Asset impairments	—			765			3,477			16,602			—			20,844
Equity in earnings	(1,068		)	(618		)	—			1,144			1,686			1,144
Non-cash interest expense	942			491			—			269			—			1,702
Deferred income taxes	—			—			—			(145		)	—			(145		)
Other adjustments to reconcile net income	157			(13		)	(288		)	3,896			—			3,752
Changes in operating assets and liabilities:
Trade accounts receivable	—			(6,259		)	17,830			30,188			—			41,759
Inventories	—			8,292			10,148			9,124			926			28,490
Intercompany	26,610			(3,121		)	(35,129		)	11,640			—			—
Other operating assets and liabilities	(1,824		)	(29,289		)	(22,034		)	(44,518		)	—			(97,665		)
Cash (used in)/provided by operating activities of continuing operations	(112		)	(48,979		)	(14,556		)	39,695			—			(23,952		)
Cash used in operating activities of discontinued operations	—			—			(1,861		)	(14,413		)	—			(16,274		)
Net cash (used in)/provided by operating activities	(112		)	(48,979		)	(16,417		)	25,282			—			(40,226		)
Cash flows from investing activities:
Capital expenditures	(4,139		)	(5,148		)	(2,757		)	(10,978		)	—			(23,022		)
Changes in restricted cash	—			(50,214		)	—			(5,833		)	—			(56,047		)
Cash used in investing activities of continuing operations	(4,139		)	(55,362		)	(2,757		)	(16,811		)	—			(79,069		)
Cash provided by investing activities of discontinued operations	—			58,060			18,991			—			—			77,051
Net cash (used in)/provided by investing activities	(4,139		)	2,698			16,234			(16,811		)	—			(2,018		)
Cash flows from financing activities:
Borrowings on long-term debt	—			69,000			—			98,199			—			167,199
Payments on long-term debt	—			(26,500		)	—			(79,187		)	—			(105,687		)
Payment on short-term debt	—			—			—			(15,223		)	—			(15,223		)
Stock option exercises and employee stock purchases	5,150			—			—			—			—			5,150
Payments of debt issuance costs	(809		)	38			—			—			—			(771		)
Cash provided by financing activities of continuing operations	4,341			42,538			—			3,789			—			50,668
Cash provided by financing activities of discontinued operations	—			—			—			—			—			—
Net cash provided by financing activities	4,341			42,538			—			3,789			—			50,668
Effect of exchange rate changes on cash	—			—			—			1,430			—			1,430
Net increase/(decrease) in cash and cash equivalents	90			(3,743		)	(183		)	13,690			—			9,854
Cash and cash equivalents, beginning of period	35			3,733			296			53,216			—			57,280
Cash and cash equivalents, end of period	$	125		$	(10	)	$	113		$	66,906		$	—		$	67,134

Condensed Consolidating Statement of Cash Flows

Six Months Ended April 30,2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(63,524	)	$	(505	)	$	(16,861	)	$	1,101		$	16,947		$	(62,842	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income from discontinued operations	—			—			(539		)	(251		)	206			(584		)
Depreciation and amortization	1,124			5,921			2,951			14,889			—			24,885
Stock-based compensation	11,223			—			—			—			—			11,223
Provision for doubtful accounts	—			325			(1,422		)	4,491			—			3,394
Asset impairments	—			1,646			4,677			2,177			—			8,500
Equity in earnings	20,942			(687		)	—			1,058			(20,255		)	1,058
Non-cash interest expense	785			675			—			378			—			1,838
Deferred income taxes	—			—			—			184			—			184
Other adjustments to reconcile net (loss)/income	126			1,304			(1,321		)	(377		)	—			(268		)
Changes in operating assets and liabilities:
Trade accounts receivable	—			(2,670		)	42,146			(1,168		)	—			38,308
Inventories	—			(14,235		)	(4,525		)	(2,125		)	3,102			(17,783		)
Intercompany	29,829			(5,169		)	(7,900		)	(16,760		)	—			—
Other operating assets and liabilities	(582		)	4,377			(21,918		)	(20,031		)	—			(38,154		)
Cash used in operating activities of continuing operations	(77		)	(9,018		)	(4,712		)	(16,434		)	—			(30,241		)
Cash provided by operating activities of discontinued operations	—			—			9,090			2,757			—			11,847
Net cash (used in)/provided by operating activities	(77		)	(9,018		)	4,378			(13,677		)	—			(18,394		)
Cash flows from investing activities:
Capital expenditures	(3,971		)	(3,562		)	(3,950		)	(17,072		)	—			(28,555		)
Cash used in investing activities of continuing operations	(3,971		)	(3,562		)	(3,950		)	(17,072		)	—			(28,555		)
Cash used in investing activities of discontinued operations	—			—			(89		)	—			—			(89		)
Net cash used in investing activities	(3,971		)	(3,562		)	(4,039		)	(17,072		)	—			(28,644		)
Cash flows from financing activities:
Borrowings on lines of credit	—			—			—			6,157			—			6,157
Payments on lines of credit	—			—			—			(8,860		)	—			(8,860		)
Borrowings on long-term debt	—			49,000			—			54,134			—			103,134
Payments on long-term debt	—			(36,200		)	—			(9,502		)	—			(45,702		)
Stock option exercises and employee stock purchases	3,832			—			—			—			—			3,832
Cash provided by financing activities of continuing operations	3,832			12,800			—			41,929			—			58,561
Cash provided by financing activities of discontinued operations	—			—			—			—			—			—
Net cash provided by financing activities	3,832			12,800			—			41,929			—			58,561
Effect of exchange rate changes on cash	—			—			—			(5,453		)	—			(5,453		)
Net (decrease)/increase in cash and cash equivalents	(216		)	220			339			5,727			—			6,070
Cash and cash equivalents, beginning of period	324			1,966			(1,831		)	41,364			—			41,823
Cash and cash equivalents, end of period	$	108		$	2,186		$	(1,492	)	$	47,091		$	—		$	47,893

XML

Condensed Consolidating Financial Information

6 Months Ended

Apr. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Information

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 “Securities 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 guarantor 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 for the three and six months endedApril 30, 2014 and 2013, the financial position as of April 30, 2014 and October 31, 2013, and cash flows for the six months endedApril 30, 2014 and 2013, 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. 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

Second Quarter Ended April 30, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	91,057		$	80,024		$	268,112		$	(31,094	)	$	408,215
Cost of goods sold	193			55,352			62,878			128,800			(37,879		)	209,344
Gross profit	(77		)	35,705			17,146			139,312			6,785			198,871
Selling, general and administrative expense	6,378			59,138			21,227			128,534			(1,630		)	213,647
Asset impairments	—			765			3,255			15,941			—			19,961
Operating loss	(6,455		)	(24,198		)	(7,336		)	(5,163		)	8,415			(34,737		)
Interest expense, net	11,618			455			—			7,167			—			19,240
Foreign currency loss	124			7			220			542			—			893
Equity in earnings	34,876			(692		)	—			—			(34,184		)	—
Loss before (benefit)/provision for income taxes	(53,073		)	(23,968		)	(7,556		)	(12,872		)	42,599			(54,870		)
(Benefit)/provision for income taxes	—			(4,120		)	(2,933		)	5,880			—			(1,173		)
Loss from continuing operations	(53,073		)	(19,848		)	(4,623		)	(18,752		)	42,599			(53,697		)
Loss from discontinued operations	—			(4,165		)	(2,948		)	—			—			(7,113		)
Net loss	(53,073		)	(24,013		)	(7,571		)	(18,752		)	42,599			(60,810		)
Net loss attributable to non-controlling interest	—			—			—			7,737			—			7,737
Net loss attributable to Quiksilver, Inc.	(53,073		)	(24,013		)	(7,571		)	(11,015		)	42,599			(53,073		)
Other comprehensive income	5,681			—			—			5,681			(5,681		)	5,681
Comprehensive loss attributable to Quiksilver, Inc.	$	(47,392	)	$	(24,013	)	$	(7,571	)	$	(5,334	)	$	36,918		$	(47,392	)

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

Second Quarter Ended April 30, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	105,393		$	104,308		$	289,793		$	(44,047	)	$	455,563
Cost of goods sold	—			65,292			69,639			143,500			(31,869		)	246,562
Gross profit	116			40,101			34,669			146,293			(12,178		)	209,001
Selling, general and administrative expense	11,753			36,564			35,314			141,133			(7,842		)	216,922
Asset impairments	—			1,646			3,342			344			—			5,332
Operating (loss)/income	(11,637		)	1,891			(3,987		)	4,816			(4,336		)	(13,253		)
Interest expense, net	7,269			1,440			(1		)	6,634			—			15,342
Foreign currency (gain)/loss	(28		)	73			46			(2,787		)	—			(2,696		)
Equity in earnings	13,095			(483		)	—			—			(12,612		)	—
(Loss)/income before provision/(benefit) for income taxes	(31,973		)	861			(4,032		)	969			8,276			(25,899		)
Provision/(benefit) for income taxes	422			1,231			(299		)	5,474			—			6,828
Loss from continuing operations	(32,395		)	(370		)	(3,733		)	(4,505		)	8,276			(32,727		)
Income from discontinued operations	—			—			709			32			(232		)	509
Net loss	(32,395		)	(370		)	(3,024		)	(4,473		)	8,044			(32,218		)
Net income attributable to non-controlling interest	—			—			—			(177		)	—			(177		)
Net loss attributable to Quiksilver, Inc.	(32,395		)	(370		)	(3,024		)	(4,650		)	8,044			(32,395		)
Other comprehensive loss	(16,723		)	—			—			(16,723		)	16,723			(16,723		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(49,118	)	$	(370	)	$	(3,024	)	$	(21,373	)	$	24,767		$	(49,118	)

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

Six Months Ended April 30,2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	232		$	175,061		$	177,999		$	551,787		$	(85,696	)	$	819,383
Cost of goods sold	193			105,620			130,582			258,867			(82,859		)	412,403
Gross profit	39			69,441			47,417			292,920			(2,837		)	406,980
Selling, general and administrative expense	15,403			115,104			43,895			252,975			(1,911		)	425,466
Asset impairments	—			765			3,477			16,602			—			20,844
Operating (loss)/income	(15,364		)	(46,428		)	45			23,343			(926		)	(39,330		)
Interest expense, net	23,218			1,465			—			14,012			—			38,695
Foreign currency loss/(gain)	160			(3		)	(4		)	3,600			—			3,753
Equity in earnings	(1,068		)	(618		)	—			—			1,686			—
(Loss)/income before (benefit)/provision for income taxes	(37,674		)	(47,272		)	49			5,731			(2,612		)	(81,778		)
(Benefit)/provision for income taxes	—			(10,289		)	(6,878		)	11,664			—			(5,503		)
(Loss)/income from continuing operations	(37,674		)	(36,983		)	6,927			(5,933		)	(2,612		)	(76,275		)
Income from discontinued operations	—			19,757			10,583			60			—			30,400
Net (loss)/income	(37,674		)	(17,226		)	17,510			(5,873		)	(2,612		)	(45,875		)
Net loss attributable to non-controlling interest	—			—			—			8,201			—			8,201
Net (loss)/income attributable to Quiksilver, Inc.	(37,674		)	(17,226		)	17,510			2,328			(2,612		)	(37,674		)
Other comprehensive loss	(8,741		)	—			—			(8,741		)	8,741			(8,741		)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(46,415	)	$	(17,226	)	$	17,510		$	(6,413	)	$	6,129		$	(46,415	)

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

Six Months Ended April 30,2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	232		$	193,912		$	214,770		$	584,491		$	(112,801	)	$	880,604
Cost of goods sold	—			117,895			156,937			275,560			(95,053		)	455,339
Gross profit	232			76,017			57,833			308,931			(17,748		)	425,265
Selling, general and administrative expense	27,728			72,523			70,656			282,685			(14,646		)	438,946
Asset impairments	—			1,646			4,677			2,177			—			8,500
Operating (loss)/income	(27,496		)	1,848			(17,500		)	24,069			(3,102		)	(22,181		)
Interest expense, net	14,538			2,909			(1		)	13,404			—			30,850
Foreign currency loss	126			87			110			67			—			390
Equity in earnings	20,942			(687		)	—			—			(20,255		)	—
(Loss)/income before provision/(benefit) for income taxes	(63,102		)	(461		)	(17,609		)	10,598			17,153			(53,421		)
Provision/(benefit) for income taxes	422			44			(209		)	9,748			—			10,005
(Loss)/income from continuing operations	(63,524		)	(505		)	(17,400		)	850			17,153			(63,426		)
Income from discontinued operations	—			—			539			251			(206		)	584
Net (loss)/income	(63,524		)	(505		)	(16,861		)	1,101			16,947			(62,842		)
Net income attributable to non-controlling interest	—			—			—			(682		)	—			(682		)
Net (loss)/income attributable to Quiksilver, Inc.	(63,524		)	(505		)	(16,861		)	419			16,947			(63,524		)
Other comprehensive loss	(8,613		)	—			—			(8,613		)	8,613			(8,613		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(72,137	)	$	(505	)	$	(16,861	)	$	(8,194	)	$	25,560		$	(72,137	)

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Balance Sheet

April 30, 2014

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	125	$	(10	)	$	113	$	66,906	$	—		$	67,134
Restricted cash	—		50,214			—		5,833		—			56,047
Trade accounts receivable, net	—		77,792			30,242		243,710		—			351,744
Other receivables	14		3,480			3,259		22,851		—			29,604
Inventories, net	—		34,845			80,518		227,612		(22,386		)	320,589
Deferred income taxes - current	—		24,624			—		6,181		(21,109		)	9,696
Prepaid expenses and other current assets	2,140		5,309			3,060		20,457		—			30,966
Intercompany balances	—		171,405			—		—		(171,405		)	—
Total current assets	2,279		367,659			117,192		593,550		(214,900		)	865,780
Fixed assets, net	23,066		32,790			17,966		150,454		—			224,276
Intangible assets, net	5,257		44,139			1,085		85,029		—			135,510
Goodwill	—		103,880			7,675		154,010		—			265,565
Other assets	7,958		5,664			1,245		35,509		—			50,376
Deferred income taxes long-term	19,786		—			—		1,260		(21,046		)	—
Investment in subsidiaries	950,882		6,652			—		—		(957,534		)	—
Total assets	$	1,009,228	$	560,784		$	145,163	$	1,019,812	$	(1,193,480	)	$	1,541,507
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,679	$	28,201		$	18,100	$	92,741	$	—		$	141,721
Accrued liabilities	15,266		14,272			6,744		75,174		—			111,456
Current portion of long-term debt	—		576			—		49,297		—			49,873
Income taxes payable	—		168			—		1,409		—			1,577
Deferred income taxes - current	20,365		—			744		—		(21,109		)	—
Intercompany balances	140,212		—			11,827		19,366		(171,405		)	—
Total current liabilities	178,522		43,217			37,415		237,987		(192,514		)	304,627
Long-term debt, net of current portion	501,149		44,090			—		301,710		—			846,949
Other long-term liabilities	368		5,600			8,081		20,600		—			34,649
Deferred income taxes long-term	—		41,039			2,053		—		(21,046		)	22,046
Total liabilities	680,039		133,946			47,549		560,297		(213,560		)	1,208,271
Stockholders’/invested equity	329,189		426,838			97,614		455,468		(979,920		)	329,189
Non-controlling interest	—		—			—		4,047		—			4,047
Total liabilities and equity	$	1,009,228	$	560,784		$	145,163	$	1,019,812	$	(1,193,480	)	$	1,541,507

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		281,279		—			413,500
Other receivables	19		5,613		2,007		15,242		—			22,881
Inventories, net	—		43,405		93,074		240,631		(23,459		)	353,651
Deferred income taxes - current	—		24,624		—		6,588		(21,109		)	10,103
Prepaid expenses and other current assets	3,372		3,271		3,752		14,068		—			24,463
Intercompany balances	—		173,547		—		—		(173,547		)	—
Current portion of assets held for sale	—		—		26,051		7,657		(330		)	33,378
Total current assets	3,426		338,184		173,410		618,681		(218,445		)	915,256
Fixed assets, net	21,378		35,152		21,816		155,779		—			234,125
Intangible assets, net	4,487		44,596		1,154		87,754		—			137,991
Goodwill	—		103,880		7,675		166,179		—			277,734
Other assets	8,025		5,654		1,096		38,913		—			53,688
Deferred income taxes long-term	21,085		—		—		579		(21,664		)	—
Investment in subsidiaries	949,814		8,795		—		—		(958,609		)	—
Assets held for sale, net of current portion	—		—		1,676		—		—			1,676
Total assets	$	1,008,215	$	536,261	$	206,827	$	1,067,885	$	(1,198,718	)	$	1,620,470
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	4,222	$	51,283	$	35,910	$	122,093	$	—		$	213,508
Accrued liabilities	17,900		9,921		6,929		86,914		—			121,664
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		6		—			4,468
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		—		(21,664		)	21,428
Assets held for sale, net of current portion	—		—		187		—		—			187
Total liabilities	638,509		108,376		105,966		596,281		(216,320		)	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	$	1,067,885	$	(1,198,718	)	$	1,620,470

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Cash Flows

Six Months Ended April 30,2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(37,674	)	$	(17,226	)	$	17,510		$	(5,873	)	$	(2,612	)	$	(45,875	)
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Income from discontinued operations	—			(19,757		)	(10,583		)	(60		)	—			(30,400		)
Depreciation and amortization	1,157			5,298			4,355			14,804			—			25,614
Stock-based compensation	11,588			—			—			—			—			11,588
Provision for doubtful accounts	—			12,458			158			2,624			—			15,240
Asset impairments	—			765			3,477			16,602			—			20,844
Equity in earnings	(1,068		)	(618		)	—			1,144			1,686			1,144
Non-cash interest expense	942			491			—			269			—			1,702
Deferred income taxes	—			—			—			(145		)	—			(145		)
Other adjustments to reconcile net income	157			(13		)	(288		)	3,896			—			3,752
Changes in operating assets and liabilities:
Trade accounts receivable	—			(6,259		)	17,830			30,188			—			41,759
Inventories	—			8,292			10,148			9,124			926			28,490
Intercompany	26,610			(3,121		)	(35,129		)	11,640			—			—
Other operating assets and liabilities	(1,824		)	(29,289		)	(22,034		)	(44,518		)	—			(97,665		)
Cash (used in)/provided by operating activities of continuing operations	(112		)	(48,979		)	(14,556		)	39,695			—			(23,952		)
Cash used in operating activities of discontinued operations	—			—			(1,861		)	(14,413		)	—			(16,274		)
Net cash (used in)/provided by operating activities	(112		)	(48,979		)	(16,417		)	25,282			—			(40,226		)
Cash flows from investing activities:
Capital expenditures	(4,139		)	(5,148		)	(2,757		)	(10,978		)	—			(23,022		)
Changes in restricted cash	—			(50,214		)	—			(5,833		)	—			(56,047		)
Cash used in investing activities of continuing operations	(4,139		)	(55,362		)	(2,757		)	(16,811		)	—			(79,069		)
Cash provided by investing activities of discontinued operations	—			58,060			18,991			—			—			77,051
Net cash (used in)/provided by investing activities	(4,139		)	2,698			16,234			(16,811		)	—			(2,018		)
Cash flows from financing activities:
Borrowings on long-term debt	—			69,000			—			98,199			—			167,199
Payments on long-term debt	—			(26,500		)	—			(79,187		)	—			(105,687		)
Payment on short-term debt	—			—			—			(15,223		)	—			(15,223		)
Stock option exercises and employee stock purchases	5,150			—			—			—			—			5,150
Payments of debt issuance costs	(809		)	38			—			—			—			(771		)
Cash provided by financing activities of continuing operations	4,341			42,538			—			3,789			—			50,668
Cash provided by financing activities of discontinued operations	—			—			—			—			—			—
Net cash provided by financing activities	4,341			42,538			—			3,789			—			50,668
Effect of exchange rate changes on cash	—			—			—			1,430			—			1,430
Net increase/(decrease) in cash and cash equivalents	90			(3,743		)	(183		)	13,690			—			9,854
Cash and cash equivalents, beginning of period	35			3,733			296			53,216			—			57,280
Cash and cash equivalents, end of period	$	125		$	(10	)	$	113		$	66,906		$	—		$	67,134

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Cash Flows

Six Months Ended April 30,2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(63,524	)	$	(505	)	$	(16,861	)	$	1,101		$	16,947		$	(62,842	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income from discontinued operations	—			—			(539		)	(251		)	206			(584		)
Depreciation and amortization	1,124			5,921			2,951			14,889			—			24,885
Stock-based compensation	11,223			—			—			—			—			11,223
Provision for doubtful accounts	—			325			(1,422		)	4,491			—			3,394
Asset impairments	—			1,646			4,677			2,177			—			8,500
Equity in earnings	20,942			(687		)	—			1,058			(20,255		)	1,058
Non-cash interest expense	785			675			—			378			—			1,838
Deferred income taxes	—			—			—			184			—			184
Other adjustments to reconcile net (loss)/income	126			1,304			(1,321		)	(377		)	—			(268		)
Changes in operating assets and liabilities:
Trade accounts receivable	—			(2,670		)	42,146			(1,168		)	—			38,308
Inventories	—			(14,235		)	(4,525		)	(2,125		)	3,102			(17,783		)
Intercompany	29,829			(5,169		)	(7,900		)	(16,760		)	—			—
Other operating assets and liabilities	(582		)	4,377			(21,918		)	(20,031		)	—			(38,154		)
Cash used in operating activities of continuing operations	(77		)	(9,018		)	(4,712		)	(16,434		)	—			(30,241		)
Cash provided by operating activities of discontinued operations	—			—			9,090			2,757			—			11,847
Net cash (used in)/provided by operating activities	(77		)	(9,018		)	4,378			(13,677		)	—			(18,394		)
Cash flows from investing activities:
Capital expenditures	(3,971		)	(3,562		)	(3,950		)	(17,072		)	—			(28,555		)
Cash used in investing activities of continuing operations	(3,971		)	(3,562		)	(3,950		)	(17,072		)	—			(28,555		)
Cash used in investing activities of discontinued operations	—			—			(89		)	—			—			(89		)
Net cash used in investing activities	(3,971		)	(3,562		)	(4,039		)	(17,072		)	—			(28,644		)
Cash flows from financing activities:
Borrowings on lines of credit	—			—			—			6,157			—			6,157
Payments on lines of credit	—			—			—			(8,860		)	—			(8,860		)
Borrowings on long-term debt	—			49,000			—			54,134			—			103,134
Payments on long-term debt	—			(36,200		)	—			(9,502		)	—			(45,702		)
Stock option exercises and employee stock purchases	3,832			—			—			—			—			3,832
Cash provided by financing activities of continuing operations	3,832			12,800			—			41,929			—			58,561
Cash provided by financing activities of discontinued operations	—			—			—			—			—			—
Net cash provided by financing activities	3,832			12,800			—			41,929			—			58,561
Effect of exchange rate changes on cash	—			—			—			(5,453		)	—			(5,453		)
Net (decrease)/increase in cash and cash equivalents	(216		)	220			339			5,727			—			6,070
Cash and cash equivalents, beginning of period	324			1,966			(1,831		)	41,364			—			41,823
Cash and cash equivalents, end of period	$	108		$	2,186		$	(1,492	)	$	47,091		$	—		$	47,893

XML

Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 30, 2014	Oct. 31, 2013	Apr. 30, 2013	Oct. 31, 2012
Current assets:
Cash and cash equivalents	$ 67,134	$ 57,280	$ 47,893	$ 41,823
Restricted cash	56,047	0
Trade accounts receivable, net	351,744	413,500
Other receivables	29,604	22,881
Inventories, net	320,589	353,651
Deferred income taxes - current	9,696	10,103
Prepaid expenses and other current assets	30,966	24,463
Intercompany balances	0	0
Current portion of assets held for sale	0	33,378
Total current assets	865,780	915,256
Fixed assets, net	224,276	234,125
Intangible assets, net	135,510	137,991
Goodwill	265,565	277,734		273,167
Other assets	50,376	53,688
Deferred income taxes long-term	0	0
Investment in subsidiaries	0	0
Assets held for sale, net of current portion	0	1,676
Total assets	1,541,507	1,620,470
Current liabilities:
Accounts payable	141,721	213,508
Accrued liabilities	111,456	121,664
Current portion of long-term debt	49,873	23,488
Income taxes payable	1,577	3,912
Deferred income taxes - current	0	0
Intercompany balances	0	0
Current portion of assets held for sale	0	4,468
Total current liabilities	304,627	367,040
Long-term debt, net of current portion	846,949	807,812
Other long-term liabilities	34,649	36,345
Deferred income taxes long-term	22,046	21,428
Assets held for sale, net of current portion	0	187
Total liabilities	1,208,271	1,232,812
Stockholders'/invested equity:	329,189	369,706
Non-controlling interest	4,047	17,952
Total liabilities and equity	1,541,507	1,620,470
Quiksilver, Inc. [Member]
Current assets:
Cash and cash equivalents	125	35	108	324
Restricted cash	0
Trade accounts receivable, net	0	0
Other receivables	14	19
Inventories, net	0	0
Deferred income taxes - current	0	0
Prepaid expenses and other current assets	2,140	3,372
Intercompany balances	0	0
Current portion of assets held for sale		0
Total current assets	2,279	3,426
Fixed assets, net	23,066	21,378
Intangible assets, net	5,257	4,487
Goodwill	0	0
Other assets	7,958	8,025
Deferred income taxes long-term	19,786	21,085
Investment in subsidiaries	950,882	949,814
Assets held for sale, net of current portion		0
Total assets	1,009,228	1,008,215
Current liabilities:
Accounts payable	2,679	4,222
Accrued liabilities	15,266	17,900
Current portion of long-term debt	0	0
Income taxes payable	0	0
Deferred income taxes - current	20,365	20,365
Intercompany balances	140,212	92,815
Current portion of assets held for sale		689
Total current liabilities	178,522	135,991
Long-term debt, net of current portion	501,149	500,896
Other long-term liabilities	368	1,622
Deferred income taxes long-term	0	0
Assets held for sale, net of current portion		0
Total liabilities	680,039	638,509
Stockholders'/invested equity:	329,189	369,706
Non-controlling interest	0	0
Total liabilities and equity	1,009,228	1,008,215
QS Wholesale, Inc. [Member]
Current assets:
Cash and cash equivalents	(10)	3,733	2,186	1,966
Restricted cash	50,214
Trade accounts receivable, net	77,792	83,991
Other receivables	3,480	5,613
Inventories, net	34,845	43,405
Deferred income taxes - current	24,624	24,624
Prepaid expenses and other current assets	5,309	3,271
Intercompany balances	171,405	173,547
Current portion of assets held for sale		0
Total current assets	367,659	338,184
Fixed assets, net	32,790	35,152
Intangible assets, net	44,139	44,596
Goodwill	103,880	103,880
Other assets	5,664	5,654
Deferred income taxes long-term	0	0
Investment in subsidiaries	6,652	8,795
Assets held for sale, net of current portion		0
Total assets	560,784	536,261
Current liabilities:
Accounts payable	28,201	51,283
Accrued liabilities	14,272	9,921
Current portion of long-term debt	576	0
Income taxes payable	168	121
Deferred income taxes - current	0	0
Intercompany balances	0	0
Current portion of assets held for sale		0
Total current liabilities	43,217	61,325
Long-term debt, net of current portion	44,090	0
Other long-term liabilities	5,600	6,012
Deferred income taxes long-term	41,039	41,039
Assets held for sale, net of current portion		0
Total liabilities	133,946	108,376
Stockholders'/invested equity:	426,838	427,885
Non-controlling interest	0	0
Total liabilities and equity	560,784	536,261
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	113	296	(1,492)	(1,831)
Restricted cash	0
Trade accounts receivable, net	30,242	48,230
Other receivables	3,259	2,007
Inventories, net	80,518	93,074
Deferred income taxes - current	0	0
Prepaid expenses and other current assets	3,060	3,752
Intercompany balances	0	0
Current portion of assets held for sale		26,051
Total current assets	117,192	173,410
Fixed assets, net	17,966	21,816
Intangible assets, net	1,085	1,154
Goodwill	7,675	7,675
Other assets	1,245	1,096
Deferred income taxes long-term	0	0
Investment in subsidiaries	0	0
Assets held for sale, net of current portion		1,676
Total assets	145,163	206,827
Current liabilities:
Accounts payable	18,100	35,910
Accrued liabilities	6,744	6,929
Current portion of long-term debt	0	0
Income taxes payable	0	0
Deferred income taxes - current	744	744
Intercompany balances	11,827	47,424
Current portion of assets held for sale		3,773
Total current liabilities	37,415	94,780
Long-term debt, net of current portion	0	0
Other long-term liabilities	8,081	8,946
Deferred income taxes long-term	2,053	2,053
Assets held for sale, net of current portion		187
Total liabilities	47,549	105,966
Stockholders'/invested equity:	97,614	100,861
Non-controlling interest	0	0
Total liabilities and equity	145,163	206,827
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	66,906	53,216	47,091	41,364
Restricted cash	5,833
Trade accounts receivable, net	243,710	281,279
Other receivables	22,851	15,242
Inventories, net	227,612	240,631
Deferred income taxes - current	6,181	6,588
Prepaid expenses and other current assets	20,457	14,068
Intercompany balances	0	0
Current portion of assets held for sale		7,657
Total current assets	593,550	618,681
Fixed assets, net	150,454	155,779
Intangible assets, net	85,029	87,754
Goodwill	154,010	166,179
Other assets	35,509	38,913
Deferred income taxes long-term	1,260	579
Investment in subsidiaries	0	0
Assets held for sale, net of current portion		0
Total assets	1,019,812	1,067,885
Current liabilities:
Accounts payable	92,741	122,093
Accrued liabilities	75,174	86,914
Current portion of long-term debt	49,297	23,488
Income taxes payable	1,409	3,791
Deferred income taxes - current	0	0
Intercompany balances	19,366	33,308
Current portion of assets held for sale		6
Total current liabilities	237,987	269,600
Long-term debt, net of current portion	301,710	306,916
Other long-term liabilities	20,600	19,765
Deferred income taxes long-term	0	0
Assets held for sale, net of current portion		0
Total liabilities	560,297	596,281
Stockholders'/invested equity:	455,468	453,652
Non-controlling interest	4,047	17,952
Total liabilities and equity	1,019,812	1,067,885
Eliminations [Member]
Current assets:
Cash and cash equivalents	0	0	0	0
Restricted cash	0
Trade accounts receivable, net	0	0
Other receivables	0	0
Inventories, net	(22,386)	(23,459)
Deferred income taxes - current	(21,109)	(21,109)
Prepaid expenses and other current assets	0	0
Intercompany balances	(171,405)	(173,547)
Current portion of assets held for sale		(330)
Total current assets	(214,900)	(218,445)
Fixed assets, net	0	0
Intangible assets, net	0	0
Goodwill	0	0
Other assets	0	0
Deferred income taxes long-term	(21,046)	(21,664)
Investment in subsidiaries	(957,534)	(958,609)
Assets held for sale, net of current portion		0
Total assets	(1,193,480)	(1,198,718)
Current liabilities:
Accounts payable	0	0
Accrued liabilities	0	0
Current portion of long-term debt	0	0
Income taxes payable	0	0
Deferred income taxes - current	(21,109)	(21,109)
Intercompany balances	(171,405)	(173,547)
Current portion of assets held for sale		0
Total current liabilities	(192,514)	(194,656)
Long-term debt, net of current portion	0	0
Other long-term liabilities	0	0
Deferred income taxes long-term	(21,046)	(21,664)
Assets held for sale, net of current portion		0
Total liabilities	(213,560)	(216,320)
Stockholders'/invested equity:	(979,920)	(982,398)
Non-controlling interest	0	0
Total liabilities and equity	$ (1,193,480)	$ (1,198,718)

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Apr. 30, 2014	Oct. 31, 2013
Statement of Financial Position [Abstract]
Allowances for trade accounts receivable	$ 62,784	$ 60,912
Fixed assets, accumulated depreciation and amortization	$ 250,761	$ 251,150
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	173,781,295	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	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2014	Apr. 30, 2013
Income Statement [Abstract]
Net gain on sales of businesses	$ 30,833	$ 30,833	$ 0

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Restructuring Charges

6 Months Ended

Apr. 30, 2014

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

In connection with the globalization of its organizational structure and core processes, as well as its cost reduction efforts, the Company formulated and announced a multi-year profit improvement plan (the "PIP") in May 2013. The PIP 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 PIP that are not yet determined. The PIP 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 PIP and 2011 Plan were primarily recorded in selling, general and administrative expense ("SG&A") with smaller amounts recorded in cost of goods sold (“COGS”) in the Company’s consolidated statements of operations.

Activity and liability balances recorded as part of the PIP 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	5,593			5,120			10,713
Cash payments	(12,123		)	(2,861		)	(14,984		)
Balance, April 30, 2014	$	5,629		$	9,198		$	14,827

Amounts charged to expense during the six months endedApril 30, 2014 were primarily composed of severance and separation charges for employees and early lease exit costs. The majority of these charges were 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 six months endedApril 30, 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 six months endedApril 30, 2013 which were unrelated to the PIP or the 2011 Plan.

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Document and Entity Information	6 Months Ended
	Apr. 30, 2014	May 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
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		170,904,595

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Debt

6 Months Ended

Apr. 30, 2014

Debt Disclosure [Abstract]

Debt

Debt

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

In thousands	April 30, 2014			October 31, 2013
EMEA credit facilities	$	47,334		$	21,594
2017 Notes	276,855			274,952
ABL Credit Facility	62,789			27,408
2018 Notes	278,719			278,612
2020 Notes	222,430			222,285
Capital lease obligations and other borrowings	8,695			6,449
Total debt	896,822			831,300
Less current portion of long-term debt	(49,873		)	(23,488		)
Long-term debt, net of current portion	$	846,949		$	807,812

As of April 30, 2014, the Company’s credit facilities allowed for total cash borrowings and letters of credit of $248 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 April 30, 2014, the Company had a total of $110 million of direct borrowings and $46 million in letters of credit outstanding. As of April 30, 2014, the effective availability for borrowings remaining under the Company’s credit facilities was $67 million, $55 million of which could also be used for letters of credit in the United States and APAC. In addition to the $67 million of effective availability for borrowings, the Company also had $24 million in additional capacity for letters of credit in EMEA as of April 30, 2014. Many of the Company’s debt agreements contain customary default provisions and restrictive covenants. The Company is in compliance with such covenants.

During the quarter ended April 30, 2014, the Company paid approximately $15 million of other borrowings to the former minority interest owners of the Company's Brazil subsidiary, related to the Company's acquisition of the remaining minority interest in this subsidiary in November 2013.

The estimated fair value of the Company’s borrowings under lines of credit and long-term debt as of April 30, 2014 was $972 million, compared to a carrying value of $897 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 credit facilities due to the variable rate nature of those debt obligations.

Other Fair Value Disclosures

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		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013
Statement of Comprehensive Income [Abstract]
Net loss	$ (60,810)	$ (32,218)	$ (45,875)	$ (62,842)
Other comprehensive income/(loss):
Foreign currency translation adjustment	10,142	(18,302)	(10,573)	(6,544)
Net unrealized (loss)/gain on derivative instruments, net of tax (benefit)/provision of $(1,445) and $660 for the second quarter of 2014 and 2013, respectively, and $(123) and $(968) for the six months of 2014 and 2013, respectively	(4,461)	1,579	1,832	(2,069)
Comprehensive loss	(55,129)	(48,941)	(54,616)	(71,455)
Comprehensive loss/(income) attributable to non-controlling interest	7,737	(177)	8,201	(682)
Comprehensive loss attributable to Quiksilver, Inc.	$ (47,392)	$ (49,118)	$ (46,415)	$ (72,137)

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Earnings per Share and Stock-Based Compensation

6 Months Ended

Apr. 30, 2014

Earnings per Share and Stock Based Compensation [Abstract]

Earnings per Share and Stock-Based Compensation

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 second quarter and six months ended April 30, 2014 and 2013:

	Second Quarter Ended April 30,		Six Months Ended April 30,
In thousands	2014	2013	2014	2013
Shares used in computing basic net loss per share	170,475	166,815	170,105	166,282
Dilutive effect of stock options and restricted stock(1)	—	—	—	—
Dilutive effect of stock warrants(1)	—	—	—	—
Shares used in computing diluted net loss per share	170,475	166,815	170,105	166,282

(1) For the second quarter of fiscal 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,229,000 and 4,389,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,113,000 and 18,074,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the second quarter of fiscal 2014 and 2013, additional stock options outstanding of 4,173,000 and 6,252,000, respectively, and additional warrant shares outstanding of 6,541,000 and 7,580,000, 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. For the six months ended April 30, 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,603,000 and 3,814,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,542,000 and 16,833,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the six months ended April 30, 2014 and 2013, additional stock options outstanding of 3,805,000 and 6,936,000, respectively, and additional warrant shares outstanding of 6,112,000 and 8,821,000, 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 stock options and performance-based restricted stock units 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 performance-based stock 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 of the awards, the Company used a Monte-Carlo simulation in order to determine the grant date fair values of the awards. For the six months ended April 30, 2014 and 2013, the assumptions used in the Monte-Carlo simulations for the performance-based restricted stock units granted included a risk-free interest rate of 0.6% to 0.7% and 0.4 % to 0.6%, respectively; volatility of 52% to 58% and 64% to 89%, respectively; and a zero dividend yield. The weighted average fair value of the restricted stock units granted in the six months ended April 30, 2014 and 2013 was $5.16 and $4.12, respectively. There were no performance-based stock options granted in the first six months of fiscal 2014 or 2013.

Activity related to these performance-based equity instruments for the six months ended April 30, 2014 was as follows:

	Performance Options		Performance Restricted Stock Units
Outstanding, October 31, 2013	688,000		11,675,782
Granted	—		300,000
Exercised	(12,000	)	—
Canceled	(36,000	)	(30,937	)
Outstanding, April 30, 2014	640,000		11,944,845

As of April 30, 2014, 82,000 of the 640,000 outstanding performance-based stock options were exercisable and none of the performance-based restricted stock units were exercisable. As of April 30, 2014, the Company had unrecognized compensation expense, net of estimated forfeitures, of approximately $0.6 million related to the performance-based stock options and approximately $2.9 million related to the performance-based restricted stock units. This unrecognized compensation expense is expected to be recognized over a weighted average period of approximately 1.8 years and 0.4 years, respectively.

For non-performance-based stock 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 stock 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 six months of fiscal 2014 and 2013, non-performance based options granted were valued assuming a risk-free interest rate of 2.2% and 1.3%, respectively, volatility of 81% and 78%, respectively, zero dividend yield, and an expected life of 6.7 years and 7.1 years, respectively. The weighted average fair value of the grants was $5.94 and $4.61 for the first six months of fiscal 2014 and 2013, respectively. The Company records stock-based compensation expense using the graded vested method over the vesting period, which is generally three years. As of April 30, 2014, the Company had approximately $2.8 million of unrecognized compensation expense for non-performance-based stock options expected to be recognized over a weighted average period of approximately 1.9 years.

Changes in shares under option, excluding performance-based stock options, for the six months ended April 30, 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	250,000		8.21
Exercised	(1,010,666	)	4.37			$	3,884
Canceled	(850,417	)	7.89
Outstanding, April 30, 2014	7,218,535		$	4.64	5.5	$	15,751
Options exercisable, April 30, 2014	5,284,052		$	4.22	4.9	$	14,130

Changes in non-vested shares under option, excluding performance-based stock options, for the six months ended April 30, 2014 were as follows:

	Shares		Weighted Average Grant Date Fair Value
Non-vested, October 31, 2013	2,784,826		$	2.95
Granted	250,000		5.94
Vested	(995,343	)	2.91
Canceled	(105,000	)	4.71
Non-vested, April 30, 2014	1,934,483		$	3.25

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. Changes in restricted stock for the six months ended April 30, 2014 were as follows:

	Shares
Outstanding, October 31, 2013	195,000
Granted	90,000
Vested	(85,000	)
Forfeited	(30,000	)
Outstanding, April 30, 2014	170,000

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 April 30, 2014, there had been no acceleration of amortization periods and the Company had approximately $0.8 million of unrecognized compensation expense expected to be recognized over a weighted average period of approximately 1.7 years.

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Segment Information

6 Months Ended

Apr. 30, 2014

Segment Reporting [Abstract]

Segment Information

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 are as follows:

	Second Quarter Ended April 30,						Six Months Ended April 30,
In thousands	2014			2013			2014			2013
Revenues, net:
Americas	$	186,427		$	226,302		$	359,592		$	408,938
EMEA	161,977			164,725			329,930			333,751
APAC	59,721			63,581			129,596			136,276
Corporate Operations	90			955			265			1,639
	$	408,215		$	455,563		$	819,383		$	880,604
Gross profit:
Americas	$	78,972		$	90,772		$	154,082		$	168,893
EMEA	86,242			87,861			182,364			186,086
APAC	33,413			31,523			70,221			70,759
Corporate Operations	244			(1,155		)	313			(473		)
	$	198,871		$	209,001		$	406,980		$	425,265
SG&A expense:
Americas	$	91,670		$	83,877		$	175,362		$	169,064
EMEA	80,046			80,837			164,793			163,737
APAC	33,391			37,735			66,006			74,927
Corporate Operations	8,540			14,473			19,305			31,218
	$	213,647		$	216,922		$	425,466		$	438,946
Asset impairments:
Americas	$	4,191		$	5,322		$	4,413		$	6,943
EMEA	15,770			10			16,431			1,557
APAC	—			—			—			—
Corporate Operations	—			—			—			—
	$	19,961		$	5,332		$	20,844		$	8,500
Operating (loss)/income:
Americas	$	(16,889	)	$	1,573		$	(25,693	)	$	(7,114	)
EMEA	(9,574		)	7,014			1,140			20,792
APAC	22			(6,212		)	4,215			(4,168		)
Corporate Operations	(8,296		)	(15,628		)	(18,992		)	(31,691		)
	$	(34,737	)	$	(13,253	)	$	(39,330	)	$	(22,181	)

In thousands	April 30, 2014		October 31, 2013
Identifiable assets:
Americas	$	544,287	$	581,021
EMEA	730,889		744,936
APAC	195,635		222,542
Corporate Operations	70,696		71,971
	$	1,541,507	$	1,620,470

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Discontinued Operations

6 Months Ended

Apr. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

One of the elements of the Company’s PIP 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 $31 million during the first six months of fiscal 2014, which is included in income from discontinued operations in the table below. The Company’s sale of these businesses generated income tax expense of approximately $18 million within discontinued operations during the first six months 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.

Mervin, Hawk and Surfdome were classified as "assets held for sale" as of October 31, 2013. In the second quarter of fiscal 2014, the Company decided to maintain its investment in Surfdome. Consequently, Surfdome was reclassified from discontinued operations into continuing operations for all periods presented. The Company recorded a $15 million impairment charge within continuing operations to write-down the carrying value of Surfdome goodwill and intangible assets to their estimated fair value (see Note 7). As a result of the Company's 51% ownership stake in Surfdome, 49% of this charge, or $7.5 million, is allocated to "net loss/(income) attributable to non-controlling interest" in the accompanying condensed consolidated statements of operations for the second quarter and six months endedApril 30, 2014.

The operating results of discontinued operations for the second quarter and first six months of fiscal 2014 and 2013 are as follows:

	Second Quarter Ended April 30,					Six Months Ended April 30,
In thousands	2014			2013		2014		2013
Revenues, net	$	20		$	3,184	$	1,626	$	9,161
(Loss)/income before income taxes	(15		)	828		47,908		950
Provision for income taxes	7,098			319		17,508		366
(Loss)/income from discontinued operations	$	(7,113	)	$	509	$	30,400	$	584

There were no assets classified as held for sale at April 30, 2014. The components of major assets and liabilities held for sale at October 31, 2013 were as follows:

In thousands	October 31, 2013
Assets:
Receivables, net	$	22,792
Inventories, net	9,979
Other	2,283
	$	35,054
Liabilities:
Accounts payable	$	1,206
Accrued liabilities	3,262
Other	187
	$	4,655

Total assets held for sale as of October 31, 2013 by geographical segment were as follows:

In thousands	October 31, 2013
Americas	$	27,398
EMEA	7,001
APAC	655
	$	35,054

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Derivative Financial Instruments

6 Months Ended

Apr. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

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 April 30, 2014, the Company was hedging forecasted transactions expected to occur through June 2015. Assuming April 30, 2014 exchange rates remain constant, $3 million of losses, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 14 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 gain of $1 million each for the second quarters ended April 30,2014 and 2013, and net gains of $1 million and $2 million for the six months ended April 30,2014 and 2013, respectively.

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 April 30, 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	$	222,950	May 2014 – June 2015	$	(2,904	)

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 table reflects 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
April 30, 2014:
Derivative assets:
Other receivables	$	—	$	989		$	—	$	989
Derivative liabilities:
Accrued liabilities	—		(3,756		)	—		(3,756		)
Other liabilities	—		(137		)	—		(137		)
Total fair value	$	—	$	(2,904	)	$	—	$	(2,904	)
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

6 Months Ended

Apr. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

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

	April 30, 2014							October 31, 2013
In thousands	Gross Amount		Accumulated Amortization			Net Book Value		Gross Amount		Accumulated Amortization			Net Book Value
Non-amortizable trademarks	$	124,117	$	—		$	124,117	$	124,099	$	—		$	124,099
Amortizable trademarks	21,664		(12,369		)	9,295		23,214		(11,543		)	11,671
Amortizable licenses	12,439		(12,439		)	—		12,749		(12,749		)	—
Other amortizable intangibles	8,296		(6,198		)	2,098		8,185		(5,964		)	2,221
	$	166,516	$	(31,006	)	$	135,510	$	168,247	$	(30,256	)	$	137,991

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 six months ended April 30, 2014 and 2013 was approximately $1 million. Annual amortization expense is estimated to be approximately $2 million per year through fiscal 2019.

The Company performs its annual goodwill impairment test during the fourth fiscal quarter. As of October 31, 2013, the fair value of each of our reporting units substantially exceeded their respective carrying values. However, certain factors may result in the need to perform an impairment test prior to the fourth fiscal quarter, including significant under-performance of the Company’s business relative to expected operating results, significant adverse economic and industry trends, significant decline in the Company’s market capitalization for an extended period of time relative to net book value, or a decision to divest an individual business within a reporting unit. Based upon the Company’s assessment of these factors in connection with the preparation of the Company’s financial statements for the second quarter of fiscal 2014, given the sales decline in the Company’s EMEA operating segment for the six months ended April 30, 2014, the Company performed an interim impairment test for the EMEA reporting unit using a discounted cash flow analysis and evaluated whether any adverse economic or industry trends would negatively affect the conclusions drawn from the prior period annual impairment test. The results of the Company’s interim impairment evaluation indicated that the fair value of the EMEA reporting unit exceeded its carrying value by 9%. As a result, the Company concluded that the EMEA reporting unit’s goodwill was not impaired based on the interim impairment evaluation.

During the second quarter of fiscal 2014, the Company also decided to maintain its investment in Surfdome, which resulted in the reclassification of the Surfdome business from "held for sale" to "held and used". As a result of the sale process conducted during the second quarter of fiscal 2014, the Company received offers to purchase from third parties which indicated that there was an impairment in the value of Surfdome. Consequently, the Company conducted an impairment analysis using the market approach based on third-party purchase offers received for Surfdome. Based upon the result of the analysis, the Company recorded a $15 million impairment charge during the second quarter of fiscal 2014 against Surfdome goodwill and intangible assets within the EMEA segment. This impairment charge reduced the carrying value of Surfdome assets to their estimated fair value.

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		$	190,986		$	135,752		$	402,712
Accumulated impairment losses	—			—			(129,545		)	(129,545		)
Net goodwill at November 1, 2012	$	75,974		$	190,986		$	6,207		$	273,167
Foreign currency translation and other	(1,031		)	5,598			—			4,567
Gross goodwill	74,943			196,584			135,752			407,279
Accumulated impairment losses	—			—			(129,545		)	(129,545		)
Net goodwill at October 31, 2013	$	74,943		$	196,584		$	6,207		$	277,734
Foreign currency translation and other	(390		)	986			—			596
Gross goodwill	74,553			197,570			135,752			407,875
Accumulated impairment losses	—			(12,765		)	(129,545		)	(142,310		)
Net goodwill at April 30, 2014	$	74,553		$	184,805		$	6,207		$	265,565

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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		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			$ 387,658	$ 602,236
Stock compensation expense			11,588	11,223
Exercise of stock options			4,476	3,275
Employee stock purchase plan			673	557
Transactions with non-controlling interest holders			(16,543)	0
Net income/(loss) and other comprehensive income/(loss)	(55,129)	(48,941)	(54,616)	(71,455)
Ending Balance	333,236	545,836	333,236	545,836
Quiksilver, Inc. [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			369,706	583,310
Stock compensation expense			11,588	11,223
Exercise of stock options			4,476	3,275
Employee stock purchase plan			673	557
Transactions with non-controlling interest holders			(10,839)	(44)
Net income/(loss) and other comprehensive income/(loss)			(46,415)	(72,137)
Ending Balance	329,189	526,184	329,189	526,184
Non-Controlling Interest [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			17,952	18,926
Stock compensation expense			0	0
Exercise of stock options			0	0
Employee stock purchase plan			0	0
Transactions with non-controlling interest holders			(5,704)	44
Net income/(loss) and other comprehensive income/(loss)			(8,201)	682
Ending Balance	$ 4,047	$ 19,652	$ 4,047	$ 19,652

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Restricted Cash

6 Months Ended

Apr. 30, 2014

Restricted Cash [Abstract]

Restricted Cash

Restricted Cash

The Company’s restricted cash balance as of April 30, 2014 was $56 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 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

6 Months Ended

Apr. 30, 2014

Inventory Disclosure [Abstract]

Inventories, net

Inventories, net

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

In thousands	April 30, 2014		October 31, 2013
Raw materials	$	4,191	$	4,725
Work in-process	322		680
Finished goods	316,076		348,246
	$	320,589	$	353,651

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Income Taxes

6 Months Ended

Apr. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of April 30, 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 pre-tax 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 in the first quarter of fiscal 2014 generated income tax expense of approximately $18 million within discontinued operations during the first six months 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 six months ended April 30, 2014 and 2013 due to being unable to record tax benefits against the losses in certain jurisdictions where the Company has previously recorded valuation allowances.

As of April 30, 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 $10 million to an increase of the liability of $2 million, excluding penalties and interest for its existing tax positions.

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Discontinued Operations - Components of Major Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Oct. 31, 2013
Assets:
Receivables, net	$ 22,792
Inventories, net	9,979
Other	2,283
Total assets	35,054
Liabilities:
Accounts payable	1,206
Accrued liabilities	3,262
Other	187
Total liabilities	$ 4,655

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Condensed Consolidating Financial Information - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 30, 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		$ 225,000
Percentage of ownership owned by parent in subsidiaries	100.00%		100.00%

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Discontinued Operations - Summarized Results from Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]
Revenues, net	$ 20	$ 3,184	$ 1,626	$ 9,161
(Loss)/income before income taxes	(15)	828	47,908	950
Provision for income taxes	7,098	319	17,508	366
(Loss)/income from discontinued operations	$ (7,113)	$ 509	$ 30,400	$ 584

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Apr. 30, 2014

Equity [Abstract]

Components of Accumulated Other Comprehensive Income

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

	Derivative Instruments			Foreign Currency Adjustments			Total
In thousands
Six Months Ended April 30, 2014:
Balance, October 31, 2013	$	(4,591	)	$	78,509		$	73,918
Net gains reclassified to COGS	(1,057		)	—			(1,057		)
Changes in fair value, net of tax	2,889			(10,573		)	(7,684		)
Balance, April 30, 2014	$	(2,759	)	$	67,936		$	65,177
Six Months Ended April 30, 2013:
Balance, October 31, 2012	$	5,756		$	80,656		$	86,412
Net gains reclassified to COGS	(2,279		)	—			(2,279		)
Net losses reclassified to foreign currency loss	22			—			22
Changes in fair value, net of tax	188			(6,544		)	(6,356		)
Balance, April 30, 2013	$	3,687		$	74,112		$	77,799

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Intangible Assets and Goodwill - Summary of Goodwill by Segment (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Apr. 30, 2014	Oct. 31, 2013	Oct. 31, 2012
Goodwill [Line Items]
Gross goodwill	$ 407,875	$ 407,279	$ 402,712
Accumulated impairment losses	(142,310)	(129,545)	(129,545)
Net goodwill	265,565	277,734	273,167
Foreign currency translation and other	596	4,567
Americas [Member]
Goodwill [Line Items]
Gross goodwill	74,553	74,943	75,974
Accumulated impairment losses	0	0	0
Net goodwill	74,553	74,943	75,974
Foreign currency translation and other	(390)	(1,031)
EMEA [Member]
Goodwill [Line Items]
Gross goodwill	197,570	196,584	190,986
Accumulated impairment losses	(12,765)	0	0
Net goodwill	184,805	196,584	190,986
Foreign currency translation and other	986	5,598
APAC [Member]
Goodwill [Line Items]
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
Foreign currency translation and other	$ 0	$ 0

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Litigation, Indemnities and Guarantees

6 Months Ended

Apr. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Litigation, Indemnities and Guarantees

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)

6 Months Ended

Apr. 30, 2014

Segment Reporting [Abstract]

Information Related to Company's Operating Segments

Information related to the Company’s operating segments are as follows:

	Second Quarter Ended April 30,						Six Months Ended April 30,
In thousands	2014			2013			2014			2013
Revenues, net:
Americas	$	186,427		$	226,302		$	359,592		$	408,938
EMEA	161,977			164,725			329,930			333,751
APAC	59,721			63,581			129,596			136,276
Corporate Operations	90			955			265			1,639
	$	408,215		$	455,563		$	819,383		$	880,604
Gross profit:
Americas	$	78,972		$	90,772		$	154,082		$	168,893
EMEA	86,242			87,861			182,364			186,086
APAC	33,413			31,523			70,221			70,759
Corporate Operations	244			(1,155		)	313			(473		)
	$	198,871		$	209,001		$	406,980		$	425,265
SG&A expense:
Americas	$	91,670		$	83,877		$	175,362		$	169,064
EMEA	80,046			80,837			164,793			163,737
APAC	33,391			37,735			66,006			74,927
Corporate Operations	8,540			14,473			19,305			31,218
	$	213,647		$	216,922		$	425,466		$	438,946
Asset impairments:
Americas	$	4,191		$	5,322		$	4,413		$	6,943
EMEA	15,770			10			16,431			1,557
APAC	—			—			—			—
Corporate Operations	—			—			—			—
	$	19,961		$	5,332		$	20,844		$	8,500
Operating (loss)/income:
Americas	$	(16,889	)	$	1,573		$	(25,693	)	$	(7,114	)
EMEA	(9,574		)	7,014			1,140			20,792
APAC	22			(6,212		)	4,215			(4,168		)
Corporate Operations	(8,296		)	(15,628		)	(18,992		)	(31,691		)
	$	(34,737	)	$	(13,253	)	$	(39,330	)	$	(22,181	)

In thousands	April 30, 2014		October 31, 2013
Identifiable assets:
Americas	$	544,287	$	581,021
EMEA	730,889		744,936
APAC	195,635		222,542
Corporate Operations	70,696		71,971
	$	1,541,507	$	1,620,470

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Intangible Assets and Goodwill - Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 30, 2014	Oct. 31, 2013
Indefinite-lived Intangible Assets [Line Items]
Gross Amount, Total	$ 166,516	$ 168,247
Accumulated Amortization	(31,006)	(30,256)
Net Book Value	135,510	137,991
Amortizable Trademarks [Member]
Indefinite-lived Intangible Assets [Line Items]
Gross Amount	21,664	23,214
Accumulated Amortization	(12,369)	(11,543)
Net Book Value	9,295	11,671
Amortizable Licenses [Member]
Indefinite-lived Intangible Assets [Line Items]
Gross Amount	12,439	12,749
Accumulated Amortization	(12,439)	(12,749)
Net Book Value	0	0
Other Amortizable Intangibles [Member]
Indefinite-lived Intangible Assets [Line Items]
Gross Amount	8,296	8,185
Accumulated Amortization	(6,198)	(5,964)
Net Book Value	2,098	2,221
Non-Amortizable Trademarks [Member]
Indefinite-lived Intangible Assets [Line Items]
Gross Amount	124,117	124,099
Accumulated Amortization	0	0
Net Book Value	$ 124,117	$ 124,099

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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		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 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	3,229,000	4,389,000	3,603,000	3,814,000
Additional shares excluded from calculation of diluted EPS	4,173,000	6,252,000	3,805,000	6,936,000
Dilutive Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded in computing diluted net loss per share	19,113,000	18,074,000	19,542,000	16,833,000
Additional shares excluded from calculation of diluted EPS	6,541,000	7,580,000	6,112,000	8,821,000

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Condensed Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013
Statement of Comprehensive Income [Abstract]
Unrealized gain/(loss) on derivative instruments, tax	$ (1,445)	$ 660	$ (123)	$ (968)

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New Accounting Pronouncements

6 Months Ended

Apr. 30, 2014

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In March 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on various glossary terms, covering a wide range of topics in the accounting standards codification. The amendments represent changes to clarify the master glossary, consolidate multiple instances of the same term into a single definition, or make minor improvements to the master glossary that are not expected to result in substantive changes to the application of existing guidance. The Company adopted this guidance, which did not impact its condensed consolidated financial statements.

In April 2014, the FASB issued Accounting Standards Update ("ASU") 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), which provides amended guidance on the presentation of financial statements and reporting discontinued operations and disclosures of disposals of components of an entity within property, plant and equipment. ASU 2014-08 amends the definition of a discontinued operation and requires entities to disclose additional information about disposal transactions that do not meet the discontinued-operations criteria. The effective date of ASU 2014-08 is for disposals that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. The Company is currently evaluating the impact, if any, that this amended guidance may have on its financial statements and related disclosures.

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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	Apr. 30, 2014
Inventory Commodity [Member] | United States Dollars [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount	$ 222,950
Fair Value	$ (2,904)

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Condensed Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013
Cash flows from operating activities:
Net (loss)/income	$ (45,875)	$ (62,842)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	(30,400)	(584)
Depreciation and amortization	25,614	24,885
Stock based compensation	11,588	11,223
Provision for doubtful accounts	15,240	3,394
Asset impairments	20,844	8,500
Equity in earnings	1,144	1,058
Non-cash interest expense	1,702	1,838
Deferred income taxes	(145)	184
Other adjustments to reconcile net (loss)/income	3,752	(268)
Changes in operating assets and liabilities:
Trade accounts receivable	41,759	38,308
Inventories	28,490	(17,783)
Intercompany	0	0
Other operating assets and liabilities	(97,665)	(38,154)
Cash (used in)/provided by operating activities of continuing operations	(23,952)	(30,241)
Cash (used in)/provided by operating activities of discontinued operations	(16,274)	11,847
Net cash (used in)/provided by operating activities	(40,226)	(18,394)
Cash flows from investing activities
Capital expenditures	(23,022)	(28,555)
Changes in restricted cash	(56,047)	0
Cash used in investing activities of continuing operations	(79,069)	(28,555)
Cash provided by/(used in) investing activities of discontinued operations	77,051	(89)
Net cash (used in)/provided by investing activities	(2,018)	(28,644)
Cash flows from financing activities:
Borrowings on lines of credit	0	6,157
Payments on lines of credit	0	(8,860)
Borrowings on long-term debt	167,199	103,134
Payments on long-term debt	(105,687)	(45,702)
Payment on short-term debt	(15,223)	0
Stock option exercises and employee stock purchases	5,150	3,832
Payments of debt issuance costs	(771)	0
Cash provided by financing activities of continuing operations	50,668	58,561
Cash provided by financing activities of discontinued operations	0	0
Net cash provided by financing activities	50,668	58,561
Effect of exchange rate changes on cash	1,430	(5,453)
Net (decrease)/increase in cash and cash equivalents	9,854	6,070
Cash and cash equivalents, beginning of period	57,280	41,823
Cash and cash equivalents, end of period	67,134	47,893
Quiksilver, Inc. [Member]
Cash flows from operating activities:
Net (loss)/income	(37,674)	(63,524)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	0	0
Depreciation and amortization	1,157	1,124
Stock based compensation	11,588	11,223
Provision for doubtful accounts	0	0
Asset impairments	0	0
Equity in earnings	(1,068)	20,942
Non-cash interest expense	942	785
Deferred income taxes	0	0
Other adjustments to reconcile net (loss)/income	157	126
Changes in operating assets and liabilities:
Trade accounts receivable	0	0
Inventories	0	0
Intercompany	26,610	29,829
Other operating assets and liabilities	(1,824)	(582)
Cash (used in)/provided by operating activities of continuing operations	(112)	(77)
Cash (used in)/provided by operating activities of discontinued operations	0	0
Net cash (used in)/provided by operating activities	(112)	(77)
Cash flows from investing activities
Capital expenditures	(4,139)	(3,971)
Changes in restricted cash	0
Cash used in investing activities of continuing operations	(4,139)	(3,971)
Cash provided by/(used in) investing activities of discontinued operations	0	0
Net cash (used in)/provided by investing activities	(4,139)	(3,971)
Cash flows from financing activities:
Borrowings on lines of credit		0
Payments on lines of credit		0
Borrowings on long-term debt	0	0
Payments on long-term debt	0	0
Payment on short-term debt	0
Stock option exercises and employee stock purchases	5,150	3,832
Payments of debt issuance costs	(809)
Cash provided by financing activities of continuing operations	4,341	3,832
Cash provided by financing activities of discontinued operations	0	0
Net cash provided by financing activities	4,341	3,832
Effect of exchange rate changes on cash	0	0
Net (decrease)/increase in cash and cash equivalents	90	(216)
Cash and cash equivalents, beginning of period	35	324
Cash and cash equivalents, end of period	125	108
QS Wholesale, Inc. [Member]
Cash flows from operating activities:
Net (loss)/income	(17,226)	(505)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	(19,757)	0
Depreciation and amortization	5,298	5,921
Stock based compensation	0	0
Provision for doubtful accounts	12,458	325
Asset impairments	765	1,646
Equity in earnings	(618)	(687)
Non-cash interest expense	491	675
Deferred income taxes	0	0
Other adjustments to reconcile net (loss)/income	(13)	1,304
Changes in operating assets and liabilities:
Trade accounts receivable	(6,259)	(2,670)
Inventories	8,292	(14,235)
Intercompany	(3,121)	(5,169)
Other operating assets and liabilities	(29,289)	4,377
Cash (used in)/provided by operating activities of continuing operations	(48,979)	(9,018)
Cash (used in)/provided by operating activities of discontinued operations	0	0
Net cash (used in)/provided by operating activities	(48,979)	(9,018)
Cash flows from investing activities
Capital expenditures	(5,148)	(3,562)
Changes in restricted cash	(50,214)
Cash used in investing activities of continuing operations	(55,362)	(3,562)
Cash provided by/(used in) investing activities of discontinued operations	58,060	0
Net cash (used in)/provided by investing activities	2,698	(3,562)
Cash flows from financing activities:
Borrowings on lines of credit		0
Payments on lines of credit		0
Borrowings on long-term debt	69,000	49,000
Payments on long-term debt	(26,500)	(36,200)
Payment on short-term debt	0
Stock option exercises and employee stock purchases	0	0
Payments of debt issuance costs	38
Cash provided by financing activities of continuing operations	42,538	12,800
Cash provided by financing activities of discontinued operations	0	0
Net cash provided by financing activities	42,538	12,800
Effect of exchange rate changes on cash	0	0
Net (decrease)/increase in cash and cash equivalents	(3,743)	220
Cash and cash equivalents, beginning of period	3,733	1,966
Cash and cash equivalents, end of period	(10)	2,186
Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net (loss)/income	17,510	(16,861)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	(10,583)	(539)
Depreciation and amortization	4,355	2,951
Stock based compensation	0	0
Provision for doubtful accounts	158	(1,422)
Asset impairments	3,477	4,677
Equity in earnings	0	0
Non-cash interest expense	0	0
Deferred income taxes	0	0
Other adjustments to reconcile net (loss)/income	(288)	(1,321)
Changes in operating assets and liabilities:
Trade accounts receivable	17,830	42,146
Inventories	10,148	(4,525)
Intercompany	(35,129)	(7,900)
Other operating assets and liabilities	(22,034)	(21,918)
Cash (used in)/provided by operating activities of continuing operations	(14,556)	(4,712)
Cash (used in)/provided by operating activities of discontinued operations	(1,861)	9,090
Net cash (used in)/provided by operating activities	(16,417)	4,378
Cash flows from investing activities
Capital expenditures	(2,757)	(3,950)
Changes in restricted cash	0
Cash used in investing activities of continuing operations	(2,757)	(3,950)
Cash provided by/(used in) investing activities of discontinued operations	18,991	(89)
Net cash (used in)/provided by investing activities	16,234	(4,039)
Cash flows from financing activities:
Borrowings on lines of credit		0
Payments on lines of credit		0
Borrowings on long-term debt	0	0
Payments on long-term debt	0	0
Payment on short-term debt	0
Stock option exercises and employee stock purchases	0	0
Payments of debt issuance costs	0
Cash provided by financing activities of continuing operations	0	0
Cash provided by financing activities of discontinued operations	0	0
Net cash provided by financing activities	0	0
Effect of exchange rate changes on cash	0	0
Net (decrease)/increase in cash and cash equivalents	(183)	339
Cash and cash equivalents, beginning of period	296	(1,831)
Cash and cash equivalents, end of period	113	(1,492)
Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net (loss)/income	(5,873)	1,101
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	(60)	(251)
Depreciation and amortization	14,804	14,889
Stock based compensation	0	0
Provision for doubtful accounts	2,624	4,491
Asset impairments	16,602	2,177
Equity in earnings	1,144	1,058
Non-cash interest expense	269	378
Deferred income taxes	(145)	184
Other adjustments to reconcile net (loss)/income	3,896	(377)
Changes in operating assets and liabilities:
Trade accounts receivable	30,188	(1,168)
Inventories	9,124	(2,125)
Intercompany	11,640	(16,760)
Other operating assets and liabilities	(44,518)	(20,031)
Cash (used in)/provided by operating activities of continuing operations	39,695	(16,434)
Cash (used in)/provided by operating activities of discontinued operations	(14,413)	2,757
Net cash (used in)/provided by operating activities	25,282	(13,677)
Cash flows from investing activities
Capital expenditures	(10,978)	(17,072)
Changes in restricted cash	(5,833)
Cash used in investing activities of continuing operations	(16,811)	(17,072)
Cash provided by/(used in) investing activities of discontinued operations	0	0
Net cash (used in)/provided by investing activities	(16,811)	(17,072)
Cash flows from financing activities:
Borrowings on lines of credit		6,157
Payments on lines of credit		(8,860)
Borrowings on long-term debt	98,199	54,134
Payments on long-term debt	(79,187)	(9,502)
Payment on short-term debt	(15,223)
Stock option exercises and employee stock purchases	0	0
Payments of debt issuance costs	0
Cash provided by financing activities of continuing operations	3,789	41,929
Cash provided by financing activities of discontinued operations	0	0
Net cash provided by financing activities	3,789	41,929
Effect of exchange rate changes on cash	1,430	(5,453)
Net (decrease)/increase in cash and cash equivalents	13,690	5,727
Cash and cash equivalents, beginning of period	53,216	41,364
Cash and cash equivalents, end of period	66,906	47,091
Eliminations [Member]
Cash flows from operating activities:
Net (loss)/income	(2,612)	16,947
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	0	206
Depreciation and amortization	0	0
Stock based compensation	0	0
Provision for doubtful accounts	0	0
Asset impairments	0	0
Equity in earnings	1,686	(20,255)
Non-cash interest expense	0	0
Deferred income taxes	0	0
Other adjustments to reconcile net (loss)/income	0	0
Changes in operating assets and liabilities:
Trade accounts receivable	0	0
Inventories	926	3,102
Intercompany	0	0
Other operating assets and liabilities	0	0
Cash (used in)/provided by operating activities of continuing operations	0	0
Cash (used in)/provided by operating activities of discontinued operations	0	0
Net cash (used in)/provided by operating activities	0	0
Cash flows from investing activities
Capital expenditures	0	0
Changes in restricted cash	0
Cash used in investing activities of continuing operations	0	0
Cash provided by/(used in) investing activities of discontinued operations	0	0
Net cash (used in)/provided by investing activities	0	0
Cash flows from financing activities:
Borrowings on lines of credit		0
Payments on lines of credit		0
Borrowings on long-term debt	0	0
Payments on long-term debt	0	0
Payment on short-term debt	0
Stock option exercises and employee stock purchases	0	0
Payments of debt issuance costs	0
Cash provided by financing activities of continuing operations	0	0
Cash provided by financing activities of discontinued operations	0	0
Net cash provided by financing activities	0	0
Effect of exchange rate changes on cash	0	0
Net (decrease)/increase in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	$ 0	$ 0

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Earnings per Share and Stock-Based Compensation (Tables)

6 Months Ended

Apr. 30, 2014

Earnings per Share and Stock Based Compensation [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 second quarter and six months ended April 30, 2014 and 2013:

	Second Quarter Ended April 30,		Six Months Ended April 30,
In thousands	2014	2013	2014	2013
Shares used in computing basic net loss per share	170,475	166,815	170,105	166,282
Dilutive effect of stock options and restricted stock(1)	—	—	—	—
Dilutive effect of stock warrants(1)	—	—	—	—
Shares used in computing diluted net loss per share	170,475	166,815	170,105	166,282

(1) For the second quarter of fiscal 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,229,000 and 4,389,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,113,000 and 18,074,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the second quarter of fiscal 2014 and 2013, additional stock options outstanding of 4,173,000 and 6,252,000, respectively, and additional warrant shares outstanding of 6,541,000 and 7,580,000, 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. For the six months ended April 30, 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,603,000 and 3,814,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,542,000 and 16,833,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the six months ended April 30, 2014 and 2013, additional stock options outstanding of 3,805,000 and 6,936,000, respectively, and additional warrant shares outstanding of 6,112,000 and 8,821,000, 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 six months ended April 30, 2014 was as follows:

	Performance Options		Performance Restricted Stock Units
Outstanding, October 31, 2013	688,000		11,675,782
Granted	—		300,000
Exercised	(12,000	)	—
Canceled	(36,000	)	(30,937	)
Outstanding, April 30, 2014	640,000		11,944,845

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

Changes in shares under option, excluding performance-based stock options, for the six months ended April 30, 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	250,000		8.21
Exercised	(1,010,666	)	4.37			$	3,884
Canceled	(850,417	)	7.89
Outstanding, April 30, 2014	7,218,535		$	4.64	5.5	$	15,751
Options exercisable, April 30, 2014	5,284,052		$	4.22	4.9	$	14,130

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

Changes in non-vested shares under option, excluding performance-based stock options, for the six months ended April 30, 2014 were as follows:

	Shares		Weighted Average Grant Date Fair Value
Non-vested, October 31, 2013	2,784,826		$	2.95
Granted	250,000		5.94
Vested	(995,343	)	2.91
Canceled	(105,000	)	4.71
Non-vested, April 30, 2014	1,934,483		$	3.25

Schedule of Restricted Stock Activity

Changes in restricted stock for the six months ended April 30, 2014 were as follows:

	Shares
Outstanding, October 31, 2013	195,000
Granted	90,000
Vested	(85,000	)
Forfeited	(30,000	)
Outstanding, April 30, 2014	170,000

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Segment Information - Additional Information (Detail)	6 Months Ended
	Apr. 30, 2014 Segment
Segment Reporting [Abstract]
Number of segments	4

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Stockholders' Equity and Non-controlling Interest

6 Months Ended

Apr. 30, 2014

Equity [Abstract]

Stockholders' Equity and Non-controlling Interest

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:

	Attributable to Quiksilver, Inc.			Non- controlling Interest			Total Stockholders’ Equity
In thousands
Six Months Ended April 30, 2014:
Balance, October 31, 2013	$	369,706		$	17,952		$	387,658
Stock compensation expense	11,588			—			11,588
Exercise of stock options	4,476			—			4,476
Employee stock purchase plan	673			—			673
Transactions with non-controlling interest holders	(10,839		)	(5,704		)	(16,543		)
Net loss and other comprehensive loss	(46,415		)	(8,201		)	(54,616		)
Balance, April 30, 2014	$	329,189		$	4,047		$	333,236
Six Months Ended April 30, 2013:
Balance, October 31, 2012	$	583,310		$	18,926		$	602,236
Stock compensation expense	11,223			—			11,223
Exercise of stock options	3,275			—			3,275
Employee stock purchase plan	557			—			557
Transactions with non-controlling interest holders	(44		)	44			—
Net loss and other comprehensive income	(72,137		)	682			(71,455		)
Balance, April 30, 2013	$	526,184		$	19,652		$	545,836