Crocs — Oct 29, 2024 release

12 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE Full Year 2024: Approximately: Non-GAAP operating margin reconciliation:   GAAP operating margin Over 24% Non-GAAP adjustments, primarily related to IT system impairments (1) 1% Non-GAAP operating margin Over 25% Non-GAAP effective tax rate reconciliation: GAAP effective tax rate 21% Non-GAAP adjustments, primarily related to amortization of intellectual property (1)(2) (5)% Non-GAAP effective tax rate 16% Non-GAAP diluted earnings per share reconciliation: GAAP diluted earnings per share $11.83 to $11.91 Non-GAAP adjustments, primarily related to IT system impairments and amortization of intellectual property (1)(2) $0.99 Non-GAAP diluted earnings per share $12.82 to $12.90 (1) For the full year 2024, we expect to incur approximately $28 million in costs primarily for an impairment of information technology systems related to the HEYDUDE integration and costs to transition to our new HEYDUDE distribution center in Las Vegas, Nevada. (2) In the fourth quarter of 2023, and previously in 2021 and 2020, we made changes to our international legal structure, including an intra-entity transfer of certain intellectual property rights, primarily to align with current and future international operations. The transfers resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of