Condensed Consolidating Financial Information (Tables)

9 Months Ended

Jul. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Operations

Nine Months Ended July 31, 2013



In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	348		$	317,643		$	368,404		$	871,248		$	(188,714	)	$	1,368,929
Cost of goods sold	—			191,351			258,249			404,992			(150,774		)	703,818
Gross profit	348			126,292			110,155			466,256			(37,940		)	665,111
Selling, general and administrative expense	39,154			102,946			104,790			429,114			(22,336		)	653,668
Asset impairments	—			1,646			5,602			3,404			—			10,652
Operating (loss)/income	(38,806		)	21,700			(237		)	33,738			(15,604		)	791
Interest expense, net	26,789			4,329			—			19,955			—			51,073
Foreign currency loss	35			23			31			4,347			—			4,436
Equity in earnings	(4,599		)	(1,018		)	—			—			5,617			—
(Loss)/income before provision/(benefit) for income taxes	(61,031		)	18,366			(268		)	9,436			(21,221		)	(54,718		)
Provision/(benefit) for income taxes	422			(161		)	(1,358		)	9,870			—			8,773
(Loss)/income from continuing operations	(61,453		)	18,527			1,090			(434		)	(21,221		)	(63,491		)
Income from discontinued operations	—			—			2,270			303			(100		)	2,473
Net (loss)/income	(61,453		)	18,527			3,360			(131		)	(21,321		)	(61,018		)
Net income attributable to non-controlling interest	—			—			—			(435		)	—			(435		)
Net (loss)/income attributable to Quiksilver, Inc.	(61,453		)	18,527			3,360			(566		)	(21,321		)	(61,453		)
Other comprehensive loss	(10,753		)	—			—			(10,753		)	10,753			(10,753		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(72,206	)	$	18,527		$	3,360		$	(11,319	)	$	(10,568	)	$	(72,206	)

Condensed Consolidating Statement of Operations

Nine Months Ended July 31, 2014



In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	348		$	264,492		$	276,213		$	796,593		$	(122,608	)	$	1,215,038
Cost of goods sold	193			163,397			200,313			375,817			(120,598		)	619,122
Gross profit	155			101,095			75,900			420,776			(2,010		)	595,916
Selling, general and administrative expense	20,950			160,868			68,579			389,739			(1,996		)	638,140
Asset impairments	—			39,695			3,477			160,236			—			203,408
Operating (loss)/income	(20,795		)	(99,468		)	3,844			(129,199		)	(14		)	(245,632		)
Interest expense, net	34,834			2,201			(3		)	20,435			—			57,467
Foreign currency loss/(gain)	29			(9		)	5			1,434			—			1,459
Equity in earnings	202,101			1,851			—			—			(203,952		)	—
(Loss)/income before (benefit)/provision for income taxes	(257,759		)	(103,511		)	3,842			(151,068		)	203,938			(304,558		)
(Benefit)/provision for income taxes	—			(9,800		)	(6,878		)	10,539			—			(6,139		)
(Loss)/income from continuing operations	(257,759		)	(93,711		)	10,720			(161,607		)	203,938			(298,419		)
Income from discontinued operations	—			19,757			10,549			60			—			30,366
Net (loss)/income	(257,759		)	(73,954		)	21,269			(161,547		)	203,938			(268,053		)
Net loss attributable to non-controlling interest	—			—			—			10,294			—			10,294
Net (loss)/income attributable to Quiksilver, Inc.	(257,759		)	(73,954		)	21,269			(151,253		)	203,938			(257,759		)
Other comprehensive loss	(10,549		)	—			—			(10,549		)	10,549			(10,549		)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(268,308	)	$	(73,954	)	$	21,269		$	(161,802	)	$	214,487		$	(268,308	)

Condensed Consolidating Statement of Operations

Third Quarter Ended July 31, 2014



In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	89,431		$	98,214		$	244,806		$	(36,912	)	$	395,655
Cost of goods sold	—			57,777			69,731			116,950			(37,739		)	206,719
Gross profit	116			31,654			28,483			127,856			827			188,936
Selling, general and administrative expense	5,547			45,764			24,684			136,764			(85		)	212,674
Asset impairments	—			38,930			—			143,634			—			182,564
Operating loss	(5,431		)	(53,040		)	3,799			(152,542		)	912			(206,302		)
Interest expense, net	11,616			736			(3		)	6,423			—			18,772
Foreign currency loss	(131		)	(6		)	9			(2,166		)	—			(2,294		)
Equity in earnings	203,169			2,469			—			—			(205,638		)	—
Loss before (benefit)/provision for income taxes	(220,085		)	(56,239		)	3,793			(156,799		)	206,550			(222,780		)
(Benefit)/provision for income taxes	—			489			—			(1,125		)	—			(636		)
Loss from continuing operations	(220,085		)	(56,728		)	3,793			(155,674		)	206,550			(222,144		)
Loss from discontinued operations	—			—			(34		)	—			—			(34		)
Net loss	(220,085		)	(56,728		)	3,759			(155,674		)	206,550			(222,178		)
Net loss attributable to non-controlling interest	—			—			—			2,093			—			2,093
Net loss attributable to Quiksilver, Inc.	(220,085		)	(56,728		)	3,759			(153,581		)	206,550			(220,085		)
Other comprehensive income	(1,808		)	—			—			(1,808		)	1,808			(1,808		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(221,893	)	$	(56,728	)	$	3,759		$	(155,389	)	$	208,358		$	(221,893	)

Condensed Consolidating Statement of Operations

Third Quarter Ended July 31, 2013



In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	123,731		$	153,634		$	286,757		$	(75,913	)	$	488,325
Cost of goods sold	—			73,456			101,312			129,432			(55,721		)	248,479
Gross profit	116			50,275			52,322			157,325			(20,192		)	239,846
Selling, general and administrative expense	11,426			30,423			34,134			146,429			(7,690		)	214,722
Asset impairments	—			—			925			1,227			—			2,152
Operating (loss)/income	(11,310		)	19,852			17,263			9,669			(12,502		)	22,972
Interest expense, net	12,251			1,420			1			6,551			—			20,223
Foreign currency (gain)/loss	(91		)	(64		)	(79		)	4,280			—			4,046
Equity in earnings	(25,541		)	(331		)	—			—			25,872			—
(Loss)/income before provision/(benefit) for income taxes	2,071			18,827			17,341			(1,162		)	(38,374		)	(1,297		)
Provision/(benefit) for income taxes	—			(205		)	(1,149		)	122			—			(1,232		)
Loss from continuing operations	2,071			19,032			18,490			(1,284		)	(38,374		)	(65		)
Income from discontinued operations	—			—			1,731			52			106			1,889
Net loss	2,071			19,032			20,221			(1,232		)	(38,268		)	1,824
Net income attributable to non-controlling interest	—			—			—			247			—			247
Net loss attributable to Quiksilver, Inc.	2,071			19,032			20,221			(985		)	(38,268		)	2,071
Other comprehensive loss	(2,140		)	—			—			(2,140		)	2,140			(2,140		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(69	)	$	19,032		$	20,221		$	(3,125	)	$	(36,128	)	$	(69	)

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 Balance Sheet

July 31, 2014



In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	149	$	29,571	$	(2,064	)	$	56,305	$	—		$	83,961
Restricted cash	—		22,494		—			1,403		—			23,897
Trade accounts receivable, net	—		64,380		43,118			210,798		—			318,296
Other receivables	10		3,387		1,332			22,584		—			27,313
Income taxes receivable					1,683					(148		)	1,535
Inventories, net	—		27,368		80,810			259,762		(21,868		)	346,072
Deferred income taxes - current	—		24,624		—			6,263		(21,109		)	9,778
Prepaid expenses and other current assets	1,574		6,519		3,599			18,670		—			30,362
Intercompany balances	—		163,992		—			—		(163,992		)	—
Total current assets	1,733		342,335		128,478			575,785		(207,117		)	841,214
Fixed assets, net	22,962		33,140		16,574			146,685		—			219,361
Intangible assets, net	5,704		43,971		1,124			84,828		—			135,627
Goodwill	—		61,982		11,089			7,774		—			80,845
Other assets	7,564		5,671		1,304			34,220		—			48,759
Deferred income taxes long-term	19,786		—		—			—		(19,786		)	—
Investment in subsidiaries	747,713		4,183		—			—		(751,896		)	—
Total assets	$	805,462	$	491,282	$	158,569		$	849,292	$	(978,799	)	$	1,325,806
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	3,003	$	40,051	$	26,056		$	129,768	$	—		$	198,878
Accrued liabilities	26,372		12,475		7,608			68,451		—			114,906
Current portion of long-term debt	—		576		—			27,830		—			28,406
Income taxes payable	—		—		—			148		(148		)	—
Deferred income taxes - current	20,365		—		744			—		(21,109		)	—
Intercompany balances	141,885		—		12,977			9,130		(163,992		)	—
Total current liabilities	191,625		53,102		47,385			235,327		(185,249		)	342,190
Long-term debt, net of current portion	501,281		21,590		—			289,472		—			812,343
Other long-term liabilities	364		5,442		7,758			19,558		—			33,122
Deferred income taxes long-term	—		41,039		2,053			698		(19,786		)	24,004
Total liabilities	693,270		121,173		57,196			545,055		(205,035		)	1,211,659
Stockholders’/invested equity	112,192		370,109		101,373			302,282		(773,764		)	112,192
Non-controlling interest	—		—		—			1,955		—			1,955
Total liabilities and equity	$	805,462	$	491,282	$	158,569		$	849,292	$	(978,799	)	$	1,325,806

Condensed Consolidating Statement of Cash Flows

Nine Months Ended July 31, 2014



In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(257,759	)	$	(73,954	)	$	21,269		$	(161,547	)	$	203,938		$	(268,053	)
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Income from discontinued operations	—			(19,757		)	(10,549		)	(60		)	—			(30,366		)
Depreciation and amortization	1,848			8,046			8,194			23,081			—			41,169
Stock-based compensation	15,810			—			—			—			—			15,810
Provision for doubtful accounts	—			15,280			488			4,066			—			19,834
Asset impairments	—			39,695			3,477			160,236			—			203,408
Equity in earnings	202,101			1,851			—			907			(203,952		)	907
Non-cash interest expense	1,419			749			—			488			—			2,656
Deferred income taxes	—			—			—			(1,706		)	—			(1,706		)
Other adjustments to reconcile net income	28			(42		)	(314		)	(3,678		)	—			(4,006		)
Changes in operating assets and liabilities:
Trade accounts receivable	—			4,331			4,624			58,207			—			67,162
Inventories	—			15,769			11,346			(27,193		)	14			(64		)
Intercompany	29,313			46,651			(79,642		)	3,678			—			—
Other operating assets and liabilities	6,823			(20,969		)	(12,774		)	(4,709		)	—			(31,629		)
Cash (used in)/provided by operating activities of continuing operations	(417		)	17,650			(53,881		)	51,770			—			15,122
Cash used in operating activities of discontinued operations	—			—			(924		)	(14,413		)	—			(15,337		)
Net cash (used in)/provided by operating activities	(417		)	17,650			(54,805		)	37,357			—			(215		)
Cash flows from investing activities:
Proceeds from the sale of assets				94			532			4,728						5,354
Capital expenditures	(5,133		)	(8,449		)	(6,139		)	(18,795		)	—			(38,516		)
Changes in restricted cash	—			(22,494		)	—			(1,403		)	—			(23,897		)
Cash used in investing activities of continuing operations	(5,133		)	(30,849		)	(5,607		)	(15,470		)	—			(57,059		)
Cash provided by investing activities of discontinued operations	—			19,000			58,052			—			—			77,052
Net cash (used in)/provided by investing activities	(5,133		)	(11,849		)	52,445			(15,470		)	—			19,993
Cash flows from financing activities:
Borrowings on long-term debt	—			77,000			—			110,495			—			187,495
Payments on long-term debt	—			(57,000		)	—			(114,268		)	—			(171,268		)
Payment on short-term debt	—			—			—			(15,223		)	—			(15,223		)
Stock option exercises and employee stock purchases	5,824			—			—			—			—			5,824
Payments of debt issuance costs	(160		)	37			—			—			—			(123		)
Cash provided by financing activities of continuing operations	5,664			20,037			—			(18,996		)	—			6,705
Net cash provided by financing activities	5,664			20,037			—			(18,996		)	—			6,705
Effect of exchange rate changes on cash	—			—			—			198			—			198
Net increase/(decrease) in cash and cash equivalents	114			25,838			(2,360		)	3,089			—			26,681
Cash and cash equivalents, beginning of period	35			3,733			296			53,216			—			57,280
Cash and cash equivalents, end of period	$	149		$	29,571		$	(2,064	)	$	56,305		$	—		$	83,961

Condensed Consolidating Statement of Cash Flows

Nine Months Ended July 31, 2013



In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(61,453	)	$	18,527		$	3,360		$	(131	)	$	(21,321	)	$	(61,018	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income from discontinued operations	—			—			(2,270		)	(303		)	100			(2,473		)
Depreciation and amortization	1,651			8,710			4,242			23,203			—			37,806
Stock-based compensation	16,195			—			—			—			—			16,195
Provision for doubtful accounts	—			(257		)	(1,379		)	5,946			—			4,310
Asset impairments	—			1,646			5,602			3,404			—			10,652
Equity in earnings	(4,599		)	(1,018		)	—			247			5,617			247
Non-cash interest expense	4,223			1,081			—			573			—			5,877
Deferred income taxes	—			—			—			(281		)	—			(281		)
Other adjustments to reconcile net (loss)/income	35			—			(124		)	733			—			644
Changes in operating assets and liabilities:
Trade accounts receivable	—			(4,000		)	8,177			(9,776		)	—			(5,599		)
Inventories	—			(7,297		)	(1,493		)	(62,494		)	15,604			(55,680		)
Intercompany	(46,914		)	44,762			(11,724		)	13,876			—			—
Other operating assets and liabilities	6,867			341			(4,289		)	25,974			—			28,893
Cash used in operating activities of continuing operations	(83,995		)	62,495			102			971			—			(20,427		)
Cash provided by operating activities of discontinued operations	—			—			7,219			691			—			7,910
Net cash (used in)/provided by operating activities	(83,995		)	62,495			7,321			1,662			—			(12,517		)
Cash flows from investing activities:
Proceeds from sale of properties	47						2			616						665
Capital expenditures	(5,374		)	(3,908		)	(7,083		)	(23,496		)	—			(39,861		)
Changes in Restricted Cash	(409,167		)													(409,167		)
Cash used in investing activities of continuing operations	(414,494		)	(3,908		)	(7,081		)	(22,880		)	—			(448,363		)
Cash used in investing activities of discontinued operations	—			—			(170		)	—			—			(170		)
Net cash used in investing activities	(414,494		)	(3,908		)	(7,251		)	(22,880		)	—			(448,533		)
Cash flows from financing activities:
Borrowings on lines of credit	—			—			—			6,157			—			6,157
Payments on lines of credit	—			—			—			(22,561		)	—			(22,561		)
Payments of debt issuance costs	(8,775		)	(4,312		)										(13,087		)
Borrowings on long-term debt	500,776			59,829			—			86,271			—			646,876
Payments on long-term debt	—			(114,029		)	—			(28,092		)	—			(142,121		)
Stock option exercises and employee stock purchases	6,165			—			—			—			—			6,165
Cash provided by financing activities of continuing operations	498,166			(58,512		)	—			41,775			—			481,429
Net cash provided by financing activities	498,166			(58,512		)	—			41,775			—			481,429
Effect of exchange rate changes on cash	—			—			—			181			—			181
Net (decrease)/increase in cash and cash equivalents	(323		)	75			70			20,738			—			20,560
Cash and cash equivalents, beginning of period	324			1,966			(1,831		)	41,364			—			41,823
Cash and cash equivalents, end of period	$	1		$	2,041		$	(1,761	)	$	62,102		$	—		$	62,383