Condensed Consolidation Financial Information (Tables)

9 Months Ended

Jul. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Operations

Three Months Ended July 31, 2015



In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	110		$	82,220		$	77,523		$	209,050		$	(32,769	)	$	336,134
Cost of goods sold	—			48,911			49,961			104,458			(28,588		)	174,742
Gross profit	110			33,309			27,562			104,592			(4,181		)	161,392
Selling, general and administrative expense	2,642			39,648			22,928			102,050			(1,345		)	165,923
Asset impairments	—			61,983			11,563			23,432			—			96,978
Operating loss	(2,532		)	(68,322		)	(6,929		)	(20,890		)	(2,836		)	(101,509		)
Interest expense, net	11,676			839			—			5,486			—			18,001
Foreign currency loss/(gain)	18			(148		)	38			4,830			—			4,738
Equity in earnings	110,546			(1,529		)	—			—			(109,017		)	—
Loss before (benefit)/provision for income taxes	(124,772		)	(67,484		)	(6,967		)	(31,206		)	106,181			(124,248		)
(Benefit)/provision for income taxes	(60		)	115			(1,069		)	1,478			—			464
Net loss	(124,712		)	(67,599		)	(5,898		)	(32,684		)	106,181			(124,712		)
Other comprehensive loss	(10,136		)	—			—			(10,136		)	10,136			(10,136		)
Comprehensive loss	$	(134,848	)	$	(67,599	)	$	(5,898	)	$	(42,820	)	$	116,317		$	(134,848	)

Asset impairments in the "QS Wholesale Inc." column above includes a $6 million non-cash charge for the impairment of DC Shoes goodwill that resides in the QS Wholesale Inc. legal entity, but is allocated to the APAC segment for reporting unit purposes. This charge is a component of the $80 million non-cash charge to fully impair all goodwill attributable to the Americas and APAC reporting units (see Note 7, “Intangible Assets and Goodwill”).

Condensed Consolidating Statement of Operations

Three Months Ended July 31, 2014



In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	89,127		$	98,063		$	227,821		$	(36,912	)	$	378,215
Cost of goods sold	—			57,580			69,632			107,671			(37,739		)	197,144
Gross profit	116			31,547			28,431			120,150			827			181,071
Selling, general and administrative expense	5,547			45,764			24,684			129,464			(85		)	205,374
Asset impairments	—			38,930			—			139,447			—			178,377
Operating (loss)/income	(5,431		)	(53,147		)	3,747			(148,761		)	912			(202,680		)
Interest expense, net	11,616			736			(3		)	6,368			—			18,717
Foreign currency (gain)/loss	(131		)	(6		)	9			(2,200		)	—			(2,328		)
Equity in earnings	203,676			2,469			—			—			(206,145		)	—
(Loss)/income before provision/(benefit) for income taxes	(220,592		)	(56,346		)	3,741			(152,929		)	207,057			(219,069		)
Provision/(benefit) for income taxes	—			489			—			(1,249		)	—			(760		)
(Loss)/income from continuing operations	(220,592		)	(56,835		)	3,741			(151,680		)	207,057			(218,309		)
Loss from discontinued operations	—			—			(34		)	(4,342		)	—			(4,376		)
Net (loss)/income	(220,592		)	(56,835		)	3,707			(156,022		)	207,057			(222,685		)
Net loss attributable to non-controlling interest	—			—			—			2,093			—			2,093
Net (loss)/income attributable to Quiksilver, Inc.	(220,592		)	(56,835		)	3,707			(153,929		)	207,057			(220,592		)
Other comprehensive loss	(1,801		)	—			—			(1,801		)	1,801			(1,801		)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(222,393	)	$	(56,835	)	$	3,707		$	(155,730	)	$	208,858		$	(222,393	)

Asset impairments in the "QS Wholesale Inc." column above includes a $38 million non-cash charge for the impairment of DC Shoes goodwill that resides in the QS Wholesale Inc. legal entity, but is allocated to the EMEA segment for reporting unit purposes. This charge is a component of the $178 million non-cash charge to fully impair all goodwill attributable to the EMEA reporting unit (see Note 7, “Intangible Assets and Goodwill”).

Condensed Consolidating Statement of Operations

Nine Months Ended July 31, 2015



In thousands	Quiksilver, Inc.			QS Wholesale Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	344		$	237,459		$	209,144		$	648,269		$	(85,176	)	$	1,010,040
Cost of goods sold	—			144,270			137,845			318,411			(78,120		)	522,406
Gross profit	344			93,189			71,299			329,858			(7,056		)	487,634
Selling, general and administrative expense	9,779			115,826			73,716			316,992			(4,707		)	511,606
Asset impairments	—			61,983			12,029			23,924			—			97,936
Operating loss	(9,435		)	(84,620		)	(14,446		)	(11,058		)	(2,349		)	(121,908		)
Interest expense, net	34,981			2,548			(4		)	16,918			—			54,443
Foreign currency (gain)/loss	(345		)	(436		)	468			2,450			—			2,137
Equity in earnings	129,005			(1,434		)	—			—			(127,571		)	—
Loss before provision/(benefit) for income taxes	(173,076		)	(85,298		)	(14,910		)	(30,426		)	125,222			(178,488		)
Provision/(benefit) for income taxes	—			407			(530		)	2,231			—			2,108
Loss from continuing operations	(173,076		)	(85,705		)	(14,380		)	(32,657		)	125,222			(180,596		)
(Loss)/income from discontinued operations	—			—			(2		)	6,734			—			6,732
Net loss	(173,076		)	(85,705		)	(14,382		)	(25,923		)	125,222			(173,864		)
Net loss attributable to non-controlling interest	—			—			—			788			—			788
Net loss attributable to Quiksilver, Inc.	(173,076		)	(85,705		)	(14,382		)	(25,135		)	125,222			(173,076		)
Other comprehensive loss	(32,907		)	—			—			(32,907		)	32,907			(32,907		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(205,983	)	$	(85,705	)	$	(14,382	)	$	(58,042	)	$	158,129		$	(205,983	)

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		$	265,600		$	276,768		$	754,609		$	(127,259	)	$	1,170,066
Cost of goods sold	193			164,118			200,673			349,679			(120,598		)	594,065
Gross profit	155			101,482			76,095			404,930			(6,661		)	576,001
Selling, general and administrative expense	20,950			160,868			68,579			373,329			(6,647		)	617,079
Asset impairments	—			39,695			3,477			140,671			—			183,843
Operating (loss)/income	(20,795		)	(99,081		)	4,039			(109,070		)	(14		)	(224,921		)
Interest expense, net	34,834			2,201			(3		)	20,327			—			57,359
Foreign currency loss/(gain)	29			(9		)	5			1,362			—			1,387
Equity in earnings	201,867			1,851			—			—			(203,718		)	—
(Loss)/income before (benefit)/provision for income taxes	(257,525		)	(103,124		)	4,037			(130,759		)	203,704			(283,667		)
(Benefit)/provision for income taxes	—			(9,800		)	(6,878		)	11,090			—			(5,588		)
(Loss)/income from continuing operations	(257,525		)	(93,324		)	10,915			(141,849		)	203,704			(278,079		)
Income/(loss) from discontinued operations	—			19,757			10,549			(20,046		)	—			10,260
Net (loss)/income	(257,525		)	(73,567		)	21,464			(161,895		)	203,704			(267,819		)
Net loss attributable to non-controlling interest	—			—			—			10,294			—			10,294
Net (loss)/income attributable to Quiksilver, Inc.	(257,525		)	(73,567		)	21,464			(151,601		)	203,704			(257,525		)
Other comprehensive loss	(10,542		)	—			—			(10,542		)	10,542			(10,542		)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(268,067	)	$	(73,567	)	$	21,464		$	(162,143	)	$	214,246		$	(268,067	)

Condensed Consolidating Balance Sheet

July 31, 2015



In thousands	Quiksilver, Inc.			QS Wholesale Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	157		$	23,911	$	—	$	39,829	$	(2,993	)	$	60,904
Restricted cash	—			—		—		6,373		—			6,373
Trade accounts receivable, net	—			41,869		24,750		152,343		—			218,962
Other receivables	10			2,089		356		33,032		—			35,487
Income taxes receivable	344			—		623		10,444		(967		)	10,444
Inventories	—			31,408		93,118		232,882		(18,976		)	338,432
Deferred income taxes - current	—			21,554		—		4,614		(21,554		)	4,614
Prepaid expenses and other current assets	1,691			9,206		3,735		14,160		—			28,792
Intercompany balances	—			261,710		—		26,038		(287,748		)	—
Total current assets	2,202			391,747		122,582		519,715		(332,238		)	704,008
Restricted cash	—			—		—		1,250		—			1,250
Fixed assets, net	18,612			29,206		21,907		111,604		—			181,329
Intangible assets, net	9,678			43,337		1,066		67,760		—			121,841
Other assets	5,810			4,190		681		27,226		—			37,907
Deferred income taxes long-term	30,807			—		2,582		13,921		(33,466		)	13,844
Investment in subsidiaries	596,083			2,959		—		—		(599,042		)	—
Total assets	$	663,192		$	471,439	$	148,818	$	741,476	$	(964,746	)	$	1,060,179
LIABILITIES AND EQUITY/(DEFICIT)
Current liabilities:
Lines of credit	$	—		$	—	$	—	$	26,505	$	—		$	26,505
Accounts payable	3,395			42,594		33,196		123,237		—			202,422
Accrued liabilities	27,893			12,070		9,155		57,627		(2,993		)	103,752
Long-term debt reclassified to current (See Note 10)	501,847			50,000		—		239,230		—			791,077
Current portion of long-term debt	—			600		—		1,590		—			2,190
Income taxes payable	—			1,537		—		9,176		(967		)	9,746
Deferred income taxes - current	31,450			—		4,925		4,331		(21,554		)	19,152
Intercompany balances	245,627			—		42,121		—		(287,748		)	—
Total current liabilities	810,212			106,801		89,397		461,696		(313,262		)	1,154,844
Long-term debt, net of current portion	—			1,126		—		1,335		—			2,461
Income tax payable long-term	—			—		—		7,133		—			7,133
Other long-term liabilities	1,378			5,617		8,973		8,824		—			24,792
Deferred income taxes long-term	—			37,155		—		15,658		(33,466		)	19,347
Total liabilities	811,590			150,699		98,370		494,646		(346,728		)	1,208,577
Stockholders’/invested equity/(deficit)	(148,398		)	320,740		50,448		246,830		(618,018		)	(148,398		)
Total liabilities and equity/(deficit)	$	663,192		$	471,439	$	148,818	$	741,476	$	(964,746	)	$	1,060,179

Condensed Consolidating Balance Sheet

October 31, 2014



In thousands	Quiksilver, Inc.		QS Wholesale Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	158	$	2,867	$	(2,701	)	$	46,340	$	—		$	46,664
Restricted cash	—		—		—			4,687		—			4,687
Trade accounts receivable, net	—		51,663		34,779			224,572		—			311,014
Other receivables	10		3,402		1,071			36,644		(280		)	40,847
Inventories	—		25,681		72,761			203,529		(17,454		)	284,517
Deferred income taxes - current	—		21,554		—			4,926		(21,554		)	4,926
Prepaid expenses and other current assets	1,579		6,209		2,941			17,351		—			28,080
Intercompany balances	—		258,808		—			—		(258,808		)	—
Current portion of assets held for sale	—		—		28			20,237		—			20,265
Total current assets	1,747		370,184		108,879			558,286		(298,096		)	741,000
Restricted cash	—		16,514		—			—		—			16,514
Fixed assets, net	20,381		34,408		21,259			137,720		—			213,768
Intangible assets, net	6,674		43,815		1,150			83,871		—			135,510
Goodwill	—		61,982		11,089			7,551		—			80,622
Other assets	7,097		5,160		1,255			33,574		—			47,086
Deferred income taxes long-term	30,807		—		2,052			16,088		(32,859		)	16,088
Investment in subsidiaries	722,935		1,525		—			—		(724,460		)	—
Assets held for sale, net of current portion	—		—		—			5,394		—			5,394
Total assets	$	789,641	$	533,588	$	145,684		$	842,484	$	(1,055,415	)	$	1,255,982
LIABILITIES AND EQUITY
Current liabilities:
Lines of credit	$	—	$	—	$	—		$	32,929	$	—		$	32,929
Accounts payable	4,582		40,942		22,008			100,775		—			168,307
Accrued liabilities	17,887		15,092		7,230			72,492		—			112,701
Current portion of long-term debt	—		600		—			1,832		—			2,432
Income taxes payable	—		—		—			1,404		(280		)	1,124
Deferred income taxes - current	31,450		—		4,925			4,807		(21,554		)	19,628
Intercompany balances	179,251		—		39,265			40,292		(258,808		)	—
Current portion of assets held for sale	—		—		6			13,260		—			13,266
Total current liabilities	233,170		56,634		73,434			267,791		(280,642		)	350,387
Long-term debt, net of current portion	501,416		22,657		—			269,156		—			793,229
Income taxes payable long-term	—		—		—			8,683		—			8,683
Other long-term liabilities	1,179		9,800		7,420			12,260		—			30,659
Deferred income taxes long-term	—		38,052		—			11,597		(32,859		)	16,790
Total liabilities	735,765		127,143		80,854			569,487		(313,501		)	1,199,748
Stockholders’/invested equity	53,876		406,445		64,830			270,639		(741,914		)	53,876
Non-controlling interest	—		—		—			2,358		—			2,358
Total liabilities and equity	$	789,641	$	533,588	$	145,684		$	842,484	$	(1,055,415	)	$	1,255,982

Condensed Consolidating Statement of Cash Flows

Nine Months Ended July 31, 2015



In thousands	Quiksilver, Inc.			QS Wholesale Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net loss	$	(173,076	)	$	(85,705	)	$	(14,382	)	$	(25,923	)	$	125,222		$	(173,864	)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
(Loss)/income from discontinued operations	—			—			2			(6,734		)	—			(6,732		)
Depreciation and amortization	2,217			7,102			3,996			17,051			—			30,366
Stock-based compensation	3,122			—			—			—			—			3,122
Provision for doubtful accounts	—			491			752			3,600			—			4,843
Asset impairments	—			61,983			12,029			23,924			—			97,936
Equity in earnings	129,005			(1,434		)	—			596			(127,571		)	596
Non-cash interest expense	1,569			973			—			149			—			2,691
Deferred income taxes	—			(896		)	(531		)	(5,086		)	—			(6,513		)
Other adjustments to reconcile net loss	(1,169		)	(162		)	90			(398		)	—			(1,639		)
Changes in operating assets and liabilities:
Trade accounts receivable	—			9,303			9,279			45,256			—			63,838
Inventories	—			(5,727		)	(18,008		)	(49,921		)	2,349			(71,307		)
Intercompany	77,074			25,253			(68,137		)	(31,197		)	(2,993		)	—
Other operating assets and liabilities	7,622			(6,223		)	15,493			27,351						44,243
Cash provided by/(used in) operating activities of continuing operations	46,364			4,958			(59,417		)	(1,332		)	(2,993		)	(12,420		)
Cash (used in)/provided by operating activities of discontinued operations	—			—			(2		)	4,670			—			4,668
Net cash provided by/(used in) operating activities	46,364			4,958			(59,419		)	3,338			(2,993		)	(7,752		)
Cash flows from investing activities:
Proceeds from sale of assets	—			—			—			460			—			460
Capital expenditures	(3,376		)	(1,441		)	(8,805		)	(15,488		)	—			(29,110		)
Changes in restricted cash	—			16,514			—			(2,936		)	—			13,578
Cash (used in)/provided by investing activities of continuing operations	(3,376		)	15,073			(8,805		)	(17,964		)	—			(15,072		)
Cash provided by investing activities of discontinued operations	—			—			—			10,713			—			10,713
Net cash (used in)/provided by investing activities	(3,376		)	15,073			(8,805		)	(7,251		)	—			(4,359		)
Cash flows from financing activities:
Borrowings on lines of credit	—			—			—			53,004			—			53,004
Payments on lines of credit	—			—			—			(55,098		)	—			(55,098		)
Borrowings on long-term debt	—			63,561			—			30,397			—			93,958
Payments on long-term debt	—			(35,100		)	—			(23,474		)	—			(58,574		)
Stock option exercises and employee stock purchases	587			—			—			—			—			587
Intercompany	(43,477		)	(27,448		)	70,925			—			—			—
Cash (used in)/provided by financing activities of continuing operations	(42,890		)	1,013			70,925			4,829			—			33,877
Net cash (used in)/provided by financing activities	(42,890		)	1,013			70,925			4,829			—			33,877
Effect of exchange rate changes on cash	(99		)	—			—			(7,427		)	—			(7,526		)
Net (decrease)/increase in cash and cash equivalents	(1		)	21,044			2,701			(6,511		)	(2,993		)	14,240
Cash and cash equivalents, beginning of period	158			2,867			(2,701		)	46,340			—			46,664
Cash and cash equivalents, end of period	$	157		$	23,911		$	—		$	39,829		$	(2,993	)	$	60,904

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	$	(257,525	)	$	(73,567	)	$	21,464		$	(161,895	)	$	203,704		$	(267,819	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
(Income)/loss from discontinued operations	—			(19,757		)	(10,549		)	20,046			—			(10,260		)
Depreciation and amortization	1,848			8,046			8,194			21,776			—			39,864
Stock-based compensation	15,810			—			—			—			—			15,810
Provision for doubtful accounts	—			15,280			488			4,066			—			19,834
Asset impairments	—			39,695			3,477			140,671			—			183,843
Equity in earnings	201,867			1,851			—			907			(203,718		)	907
Non-cash interest expense	1,419			749			—			488			—			2,656
Deferred income taxes	—			—			—			(1,032		)	—			(1,032		)
Other adjustments to reconcile net (loss)/income	28			(42		)	(314		)	(3,751		)	—			(4,079		)
Changes in operating assets and liabilities:
Trade accounts receivable	—			3,223			4,069			58,243			—			65,535
Inventories	—			16,490			11,706			(29,745		)	14			(1,535		)
Intercompany	29,313			46,651			(79,642		)	3,678			—			—
Other operating assets and liabilities	6,823			(20,969		)	(12,774		)	(1,008		)	—			(27,928		)
Cash (used in)/provided by operating activities of continuing operations	(417		)	17,650			(53,881		)	52,444			—			15,796
Cash used in operating activities of discontinued operations	—			—			(924		)	(15,087		)	—			(16,011		)
Net cash (used in)/provided by operating activities	(417		)	17,650			(54,805		)	37,357			—			(215		)
Cash flows from investing activities:
Proceeds from 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 lines of credit	—			—			—			100,523			—			100,523
Payments on lines of credit	—			—			—			(95,939		)	—			(95,939		)
Borrowings on long-term debt	—			77,000			—			9,972			—			86,972
Payments on long-term debt	—			(57,000		)	—			(33,552		)	—			(90,552		)
Stock option exercises and employee stock purchases	5,824			—			—			—			—			5,824
Payments of debt issuance costs	(160		)	37			—			—			—			(123		)
Cash provided by/(used in) financing activities of continuing operations	5,664			20,037			—			(18,996		)	—			6,705
Net cash provided by/(used in) 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