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

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

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

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