Condensed Combined Financial Information

12 Months Ended

Oct. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Combined Financial Statements

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, jointly and severally, on a senior unsecured basis by certain of its 100% owned domestic subsidiaries.

The Company presents condensed consolidating financial information for Quiksilver, Inc. and its domestic subsidiaries within the notes to the 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, financial position and cash flows 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 as of October 31, 2015 and October 31, 2014 and for each of fiscal 2015, 2014 and 2013. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	461		$	302,686		$	275,676		$	869,189		$	(102,072	)	$	1,345,940
Cost of goods sold	—			191,937			181,725			445,202			(94,304		)	724,560
Gross profit	461			110,749			93,951			423,987			(7,768		)	621,380
Selling, general and administrative expense	13,120			123,470			120,742			441,846			(6,354		)	692,824
Asset impairments	—			62,480			20,606			35,452			—			118,538
Operating loss	(12,659		)	(75,201		)	(47,397		)	(53,311		)	(1,414		)	(189,982		)
Interest expense, net	39,917			4,245			(4		)	22,571			—			66,729
Foreign currency (gain)/loss	(355		)	(440		)	480			6,423			—			6,108
Equity in earnings	242,644			(7,625		)	—			—			(235,019		)	—
Reorganization items	11,260			22,974			958			44			—			35,236
Loss before provision/(benefit) for income taxes	(306,125		)	(94,355		)	(48,831		)	(82,349		)	233,605			(298,055		)
Provision/(benefit) for income taxes	47			(714		)	648			15,656			—			15,637
Loss from continuing operations	(306,172		)	(93,641		)	(49,479		)	(98,005		)	233,605			(313,692		)
(Loss)/income from discontinued operations	—			—			(2		)	6,734			—			6,732
Net loss	(306,172		)	(93,641		)	(49,481		)	(91,271		)	233,605			(306,960		)
Net loss attributable to non-controlling interest	—			—			—			788			—			788
Net loss attributable to Quiksilver, Inc.	(306,172		)	(93,641		)	(49,481		)	(90,483		)	233,605			(306,172		)
Other comprehensive loss	(42,343		)	—			—			(42,343		)	42,343			(42,343		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(348,515	)	$	(93,641	)	$	(49,481	)	$	(132,826	)	$	275,948		$	(348,515	)

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 8 — Intangible Assets and Goodwill).

Condensed Consolidating Statement of Operations

Year Ended October 31, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	465		$	340,819		$	362,182		$	1,025,745		$	(157,757	)	$	1,571,454
Cost of goods sold	193			214,431			258,055			487,092			(151,527		)	808,244
Gross profit	272			126,388			104,127			538,653			(6,230		)	763,210
Selling, general and administrative expense	36,514			113,530			160,695			522,649			(6,207		)	827,181
Asset impairments	2,043			40,430			4,267			142,391			—			189,131
Operating loss	(38,285		)	(27,572		)	(60,835		)	(126,387		)	(23		)	(253,102		)
Interest expense, net	46,464			2,917			(5		)	26,615			—			75,991
Foreign currency (gain)/loss	(216		)	(269		)	66			3,077			—			2,658
Equity in earnings	223,412			4,509			—			—			(227,921		)	—
Loss before provision/(benefit) for income taxes	(307,945		)	(34,729		)	(60,896		)	(156,079		)	227,898			(331,751		)
Provision/(benefit) for income taxes	119			584			(17,531		)	12,471			—			(4,357		)
Loss from continuing operations	(308,064		)	(35,313		)	(43,365		)	(168,550		)	227,898			(327,394		)
Income/(loss) from discontinued operations	—			—			29,244			(19,804		)	—			9,440
Net loss	(308,064		)	(35,313		)	(14,121		)	(188,354		)	227,898			(317,954		)
Net loss attributable to non-controlling interest	—			—			—			9,891			—			9,891
Net loss attributable to Quiksilver, Inc.	(308,064		)	(35,313		)	(14,121		)	(178,463		)	227,898			(308,063		)
Other comprehensive loss	(16,630		)	—			—			(16,630		)	16,630			(16,630		)
Comprehensive loss attributable to Quiksilver, Inc.	$	(324,694	)	$	(35,313	)	$	(14,121	)	$	(195,093	)	$	244,528		$	(324,693	)

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 8 — Intangible Assets and Goodwill).

Condensed Consolidating Statement of Operations

Year Ended October 31, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	464		$	428,193		$	475,855		$	1,158,281		$	(243,249	)	$	1,819,544
Cost of goods sold	—			255,992			332,599			548,582			(193,201		)	943,972
Gross profit	464			172,201			143,256			609,699			(50,048		)	875,572
Selling, general and administrative expense	54,002			131,560			137,148			559,152			(24,305		)	857,557
Asset impairments	—			1,646			5,939			4,742			—			12,327
Operating (loss)/income	(53,538		)	38,995			169			45,805			(25,743		)	5,688
Interest expense, net	39,487			4,359			1			27,202			—			71,049
Foreign currency loss/(gain)	318			56			(4		)	4,319			—			4,689
Equity in earnings	134,970			2,739			—			—			(137,709		)	—
(Loss)/income before provision/(benefit) for income taxes	(228,313		)	31,841			172			14,284			111,966			(70,050		)
Provision/(benefit) for income taxes	422			(665		)	(3,488		)	169,951			—			166,220
(Loss)/income from continuing operations	(228,735		)	32,506			3,660			(155,667		)	111,966			(236,270		)
(Loss)/income from discontinued operations	(689		)	—			5,211			1,353			11			5,886
Net (loss)/income	(229,424		)	32,506			8,871			(154,314		)	111,977			(230,384		)
Net loss attributable to non-controlling interest	—			—			—			960			—			960
Net (loss)/income attributable to Quiksilver, Inc.	(229,424		)	32,506			8,871			(153,354		)	111,977			(229,424		)
Other comprehensive loss	(12,494		)	—			—			(12,494		)	12,494			(12,494		)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(241,918	)	$	32,506		$	8,871		$	(165,848	)	$	124,471		$	(241,918	)

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	4,082	$	1,447	$	—	$	32,945	$	(2,013	)	$	36,461
Restricted cash	125		—		—		2,396		—			2,521
Trade accounts receivable, net	—		42,022		25,982		145,489		—			213,493
Other receivables	—		5,727		746		18,716		—			25,189
Income tax receivable	—		144		—		6,042		(144		)	6,042
Inventories	—		35,764		75,667		200,960		(17,329		)	295,062
Prepaid expenses and other current assets	—		5,728		5,058		18,552		—			29,338
Intercompany balances	—		307,874		—		30,104		(337,978		)	—
Total current assets	4,207		398,706		107,453		455,204		(357,464		)	608,106
Restricted cash	—		—		—		650		—			650
Fixed assets, net	18,030		26,531		12,012		103,806		—			160,379
Intangible assets, net	9,609		43,179		1,018		60,557		—			114,363
Other assets	31		1,527		415		27,041		—			29,014
Deferred income taxes long-term	—		—		—		10,011		—			10,011
Investment in subsidiaries	482,444		9,150		—		—		(491,594		)	—
Total assets	$	514,321	$	479,093	$	120,898	$	657,269	$	(849,058	)	$	922,523

Condensed Consolidating Balance Sheet (Continued)

October 31, 2015

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
LIABILITIES AND EQUITY/(DEFICIT)
Liabilities not subject to compromise:
Current liabilities:
Lines of credit	$	—		$	—	$	—	$	25,143	$	—		$	25,143
Debtor-in-possession financing	—			70,641		—		17,093		—			87,734
Accounts payable	397			24,690		9,125		109,305		—			143,517
Accrued liabilities	612			18,801		6,944		65,767		(2,013		)	90,111
Long-term debt reclassified to current	—			—		—		220,518		—			220,518
Income taxes payable	—			—		352		5,029		(144		)	5,237
Intercompany balances	282,489			—		55,489		—		(337,978		)	—
Total current liabilities not subject to compromise	283,498			114,132		71,910		442,855		(340,135		)	572,260
Long-term debt, net of current portion	—			—		—		903		—			903
Income tax payable - long-term	—			—		—		9,438		—			9,438
Deferred income taxes long-term	708			15,608		2,343		14,926		—			33,585
Other long-term liabilities	—			5,226		6,741		8,377		—			20,344
Total liabilities not subject to compromise	284,206			134,966		80,994		476,499		(340,135		)	636,530
Liabilities subject to compromise	519,782			31,323		24,555		—		—			575,660
Total liabilities	803,988			166,289		105,549		476,499		(340,135		)	1,212,190
Stockholders’/invested equity (deficit)	(289,667		)	312,804		15,349		180,770		(508,923		)	(289,667		)
Total liabilities and equity/(deficit)	$	514,321		$	479,093	$	120,898	$	657,269	$	(849,058	)	$	922,523

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 liabilities associated with 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

Year Ended October 31, 2015

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net loss	$	(306,172	)	$	(93,641	)	$	(49,481	)	$	(91,271	)	$	233,605		$	(306,960	)
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:
Income/(loss) from discontinued operations	—			—			2			(6,734		)	—			(6,732		)
Depreciation and amortization	2,989			10,403			6,049			23,279			—			42,720
Stock-based compensation	4,342			—			—			—			—			4,342
Provision for doubtful accounts	—			1,521			540			7,472			—			9,533
Asset impairments	—			62,480			20,606			35,452			—			118,538
Reorganization items - non-cash	10,454			7,440			—			—			—			17,894
Equity in earnings	242,644			(7,625		)	—			2,091			(235,019		)	2,091
Non-cash interest expense	1,688			1,146			—			201			—			3,035
Deferred income taxes	48			(911		)	(550		)	1,094			—			(319		)
Other adjustments to reconcile net loss	(1,178		)	(167		)	94			3,691			—			2,440
Changes in operating assets and liabilities:
Trade accounts receivable	—			8,120			8,260			46,294			—			62,674
Inventories	—			(10,083		)	(1,492		)	(20,689		)	1,414			(30,850		)
Intercompany	130,730			(35,152		)	(61,387		)	(32,178		)	(2,013		)	—
Other operating assets and liabilities	(11,861		)	8,254			11,642			26,304			—			34,339
Cash provided by/(used by) operating activities of continuing operations	73,684			(48,215		)	(65,717		)	(4,994		)	(2,013		)	(47,255		)
Cash (used by)/provided by operating activities of discontinued operations	—			—			(2		)	4,670			—			4,668
Net cash provided by/(used in) operating activities	73,684			(48,215		)	(65,719		)	(324		)	(2,013		)	(42,587		)
Cash flows from investing activities:
Proceeds from sale of fixed assets	—			26			—			473			—			499
Capital expenditures	(3,496		)	(2,156		)	(9,113		)	(18,211		)	—			(32,976		)
Changes in restricted cash	(125		)	16,514			—			1,641			—			18,030
Intercompany	(66,092		)	(11,441		)	—			—			—			(77,533		)
Cash used in investing activities of continuing operations	(69,713		)	2,943			(9,113		)	(16,097		)	—			(91,980		)
Cash provided by/(used by) investing activities of discontinued operations	—			—			—			10,713			—			10,713
Net cash (used in)/provided by investing activities	(69,713		)	2,943			(9,113		)	(5,384		)	—			(81,267		)
Cash flows from financing activities:
Borrowings on lines of credit	—			—			—			66,339			—			66,339
Payments on lines of credit	—			—			—			(69,894		)	—			(69,894		)
Borrowings on debtor-in-possession financing	—			105,454			—			3,509			—			108,963
Payments on debtor-in-possession financing	—			(70,618		)	—			(2,442		)	—			(73,060		)
Payments on debtor-in-possession financing fees	—			(900		)	—			—			—			(900		)
Borrowings on debt	—			63,561			—			42,702			—			106,263
Payments on debt	(577		)	(53,645		)	—			(38,072		)	—			(92,294		)
Stock option exercises and employee stock purchases	629			—			—			—			—			629
Intercompany	—			—			77,533			—			—			77,533
Cash (used in)/provided by financing activities of continuing operations	52			43,852			77,533			2,142			—			123,579
Net cash provided by/(used in) financing activities	52			43,852			77,533			2,142			—			123,579
Effect of exchange rate changes on cash	(99		)	—			—			(9,829		)	—			(9,928		)
Net increase/(decrease) in cash and cash equivalents	3,924			(1,420		)	2,701			(13,395		)	(2,013		)	(10,203		)
Cash and cash equivalents, beginning of period	158			2,867			(2,701		)	46,340			—			46,664
Cash and cash equivalents, end of period	$	4,082		$	1,447		$	—		$	32,945		$	(2,013	)	$	36,461

Condensed Consolidating Statement of Cash Flows

Year Ended October 31, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net loss	$	(308,064	)	$	(35,313	)	$	(14,121	)	$	(188,354	)	$	227,898		$	(317,954	)
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:
(Loss)/income from discontinued operations	—			—			(29,244		)	19,804			—			(9,440		)
Depreciation and amortization	2,696			10,712			9,752			28,778			—			51,938
Stock-based compensation	17,260			—			—			—			—			17,260
Provision for doubtful accounts	—			15,515			437			5,904			—			21,856
Asset impairments	2,043			40,430			4,267			142,391			—			189,131
Equity in earnings	223,412			4,509			—			228			(227,921		)	228
Non-cash interest expense	1,911			1,016			—			542			—			3,469
Deferred income taxes	—			1,467			—			(6,290		)	—			(4,823		)
Other adjustments to reconcile net loss	(375		)	(295		)	(306		)	(5,544		)	—			(6,520		)
Changes in operating assets and liabilities:
Trade accounts receivable	—			10,187			9,850			29,514			—			49,551
Inventories	—			21,738			21,342			(5,319		)	23			37,784
Intercompany	132,629			(45,566		)	(128,989		)	41,926			—			—
Other operating assets and liabilities	(16,870		)	5,948			(18,527		)	(11,552		)	—			(41,001		)
Cash provided by/(used in) operating activities of continuing operations	54,642			30,348			(145,539		)	52,028			—			(8,521		)
Cash (used in)/provided by operating activities of discontinued operations	—			(18,791		)	16,805			(16,428		)	—			(18,414		)
Net cash provided by/(used in) operating activities	54,642			11,557			(128,734		)	35,600			—			(26,935		)
Cash flows from investing activities:
Capital expenditures	(6,480		)	(12,365		)	(10,569		)	(24,001		)	—			(53,415		)
Changes in restricted cash	—			(16,514		)	—			(4,687		)	—			(21,201		)
Proceeds from sale of fixed assets	174			94			532			4,850			—			5,650
Cash used in investing activities of continuing operations	(6,306		)	(28,785		)	(10,037		)	(23,838		)	—			(68,966		)
Cash provided by/(used in) investing activities of discontinued operations	—			19,000			58,052			(1,938		)	—			75,114
Net cash (used in)/provided by investing activities	(6,306		)	(9,785		)	48,015			(25,776		)	—			6,148
Cash flows from financing activities:
Borrowings on lines of credit	—			—			—			57,413			—			57,413
Payments on lines of credit	—			—			—			(24,485		)	—			(24,485		)
Borrowings on long-term debt	—			117,068			—			80,018			—			197,086
Payments on long-term debt	—			(95,976		)	—			(126,196		)	—			(222,172		)
Payments of debt issuance costs	(160		)	37			—			—			—			(123		)
Stock option exercises and employee stock purchases	5,902			—			—			—			—			5,902
Intercompany	(53,955		)	(22,801		)	76,756			—			—			—
Cash (used in)/provided by financing activities of continuing operations	(48,213		)	(1,672		)	76,756			(13,250		)	—			13,621
Cash (used in)/provided by financing activities of discontinued operations	—			(966		)	966			—			—			—
Net cash (used in)/provided by financing activities	(48,213		)	(2,638		)	77,722			(13,250		)	—			13,621
Effect of exchange rate changes on cash	—			—			—			(3,450		)	—			(3,450		)
Net increase/(decrease) in cash and cash equivalents	123			(866		)	(2,997		)	(6,876		)	—			(10,616		)
Cash and cash equivalents, beginning of period	35			3,733			296			53,216			—			57,280
Cash and cash equivalents, end of period	$	158		$	2,867		$	(2,701	)	$	46,340		$	—		$	46,664

Condensed Consolidating Statement of Cash Flows

Year Ended October 31, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(229,424	)	$	32,506		$	8,871		$	(154,314	)	$	111,977		$	(230,384	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income/(loss) from discontinued operations	689			—			(5,211		)	(1,353		)	(11		)	(5,886		)
Depreciation and amortization	2,218			11,556			6,031			30,153			—			49,958
Stock-based compensation	21,556			—			—			—			—			21,556
Provision for doubtful accounts	—			(129		)	(1,823		)	7,681			—			5,729
Asset impairments	—			1,646			5,939			4,742			—			12,327
Equity in earnings	134,970			2,739			—			613			(137,709		)	613
Non-cash interest expense	4,702			1,312			—			781						6,795
Deferred income taxes	—			(1,750		)	—			160,847			—			159,097
Other adjustments to reconcile net (loss)/income	316			27			(196		)	(1,529		)	—			(1,382		)
Changes in operating assets and liabilities:
Trade accounts receivable	—			(9,322		)	33,619			(34,491		)	—			(10,194		)
Inventories	—			(7,293		)	5,774			(30,251		)	25,743			(6,027		)
Other operating assets and liabilities	8,327			3,080			(20,748		)	32,027			—			22,686
Cash (used in)/provided by operating activities of continuing operations	(56,646		)	34,372			32,256			14,906			—			24,888
Cash provided by operating activities of discontinued operations	—			—			1,515			789			—			2,304
Net cash (used in)/provided by operating activities	(56,646		)	34,372			33,771			15,695			—			27,192
Cash flows from investing activities:
Capital expenditures	(7,347		)	(6,606		)	(7,965		)	(30,264		)	—			(52,182		)
Proceeds from sale of fixed assets	55			—			12			792			—			859
Cash used in investing activities of continuing operations	(7,292		)	(6,606		)	(7,953		)	(29,472		)	—			(51,323		)
Cash used in investing activities of discontinued operations	—			—			(268		)	(2,302		)	—			(2,570		)
Net cash used in investing activities	(7,292		)	(6,606		)	(8,221		)	(31,774		)	—			(53,893		)
Cash flows from financing activities:
Transactions with non-controlling interest owners	—			(58		)	—			—			—			(58		)
Borrowings on lines of credit	—			—			—			6,157			—			6,157
Payments on lines of credit	—			—			—			(22,561		)	—			(22,561		)
Borrowings on long-term debt	500,776			59,829			—			92,310			—			652,915
Payments on long term debt	(400,000		)	(129,123		)	—			(53,333		)	—			(582,456		)
Payments of debt and equity issuance costs	(9,965		)	(4,312		)	—			—			—			(14,277		)
Stock option exercises and employee stock purchases	9,944			—			—			—			—			9,944
Intercompany	(37,106		)	47,665			(23,423		)	12,864			—			—
Cash provided by/(used in) financing activities of continuing operations	63,649			(25,999		)	(23,423		)	35,437			—			49,664
Cash provided by financing activities of discontinued operations	—			—			—			—			—			—
Net cash provided by/(used in) financing activities	63,649			(25,999		)	(23,423		)	35,437			—			49,664
Effect of exchange rate changes on cash	—			—			—			(7,506		)	—			(7,506		)
Net (decrease)/increase in cash and cash equivalents	(289		)	1,767			2,127			11,852			—			15,457
Cash and cash equivalents, beginning of period	324			1,966			(1,831		)	41,364			—			41,823
Cash and cash equivalents, end of period	$	35		$	3,733		$	296		$	53,216		$	—		$	57,280

Condensed Combined Financial Statements

Condensed combined financial statements are presented below for the Debtors as of and for the fiscal year ended October 31, 2015. Intercompany transactions and intercompany balances among the Debtors have been eliminated in the condensed combined financial statements. If the terms of the PSA are implemented, on the Effective Date, intercompany interests held by the Debtors, with the consent of the Plan Sponsor, or the Reorganized Debtors, as applicable, will be (i) reinstated, or (ii) deemed automatically cancelled, released or extinguished. No allowances for intercompany receivables from the Debtors have been recorded in the Company's consolidated financial statements. If the terms of the PSA are implemented, new common shares will be issued to holders of the 2018 Notes. All of the Company’s existing equity securities, including its shares of common stock and warrants, will be cancelled and extinguished without holders receiving any distribution.

Condensed Combined Statement of Operations

In thousands	Year Ended October 31, 2015
Revenues, net	$	498,123
Gross profit	203,747
Selling, general and administrative expense	257,332
Asset impairments	83,086
Operating loss	(136,671		)
Interest expense, net and foreign currency (gain)/loss	43,843
Equity in earnings	91,271
Reorganization items (See Note 24)	35,192
Loss before benefit for income taxes	(306,977		)
Benefit for income taxes	(19		)
Loss from continuing operations	(306,958		)
Loss from discontinued operations	(2		)
Net loss	(306,960		)
Net loss attributable to non-controlling interest	788
Net loss attributable to Quiksilver, Inc.	$	(306,172	)

Condensed Combined Balance Sheet

In thousands	October 31, 2015
ASSETS
Current assets excluding intercompany receivables	$	177,395
Intercompany receivables	71,312
Fixed assets, net	56,573
Intangible assets, net	53,806
Other assets	1,973
Investment in subsidiaries	453,132
Total assets	$	814,191
LIABILITIES AND EQUITY
Liabilities not subject to compromise:
Current liabilities:
Debtor-in-possession financing	$	70,641
Accounts payable, accrued liabilities and income taxes payable	60,921
Intercompany payable	36,291
Total current liabilities not subject to compromise	167,853
Deferred income taxes - long-term and other long-term liabilities	30,626
Total liabilities not subject to compromise	198,479
Liabilities subject to compromise (See Note 23)	575,660
Total liabilities	774,139
Stockholders’/invested equity	40,052
Total liabilities and equity	$	814,191

Condensed Combined Statement of Cash Flows

In thousands	Year Ended October 31, 2015
Cash used in operating activities of continuing operations	$	(40,248	)
Cash used in operating activities of discontinued operations	(2		)
Net cash used in operating activities	(40,250		)
Cash used in investing activities of continuing operations	(75,883		)
Cash provided by financing activities of continuing operations	121,437
Effect of exchange rate changes on cash	(99		)
Net increase in cash and cash equivalents	5,205
Cash and cash equivalents, beginning of period	324
Cash and cash equivalents, end of period	$	5,529