Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Feb. 17, 2015 |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SKX | ||
Entity Registrant Name | SKECHERS USA INC | ||
Entity Central Index Key | 1065837 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1,831 | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 41,551,376 | ||
Class B Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 10,469,918 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $466,685 | $372,011 |
Trade accounts receivable, less allowances of $21,007 in 2014 and $15,926 in 2013 | 272,103 | 225,941 |
Other receivables | 16,510 | 10,599 |
Total receivables | 288,613 | 236,540 |
Inventories | 453,837 | 358,168 |
Prepaid expenses and other current assets | 57,015 | 26,094 |
Deferred tax assets | 18,864 | 22,115 |
Total current assets | 1,285,014 | 1,014,928 |
Property, plant and equipment, at cost, less accumulated depreciation and amortization | 373,183 | 361,755 |
Goodwill and other intangible assets, less accumulated amortization | 1,630 | 2,377 |
Deferred tax assets | 2,044 | 9,950 |
Other assets, at cost | 13,047 | 19,560 |
Total non-current assets | 389,904 | 393,642 |
TOTAL ASSETS | 1,674,918 | 1,408,570 |
Current Liabilities: | ||
Current installments of long-term borrowings | 101,407 | 12,028 |
Short-term borrowings | 1,810 | 87 |
Accounts payable | 352,815 | 258,183 |
Accrued expenses | 49,705 | 40,124 |
Total current liabilities | 505,737 | 310,422 |
Long-term borrowings, excluding current installments | 15,081 | 116,488 |
Other long-term liabilities | 19,993 | 1,740 |
Total non-current liabilities | 35,074 | 118,228 |
Total liabilities | 540,811 | 428,650 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred Stock, $.001 par value; 10,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 355,636 | 342,143 |
Accumulated other comprehensive loss | -16,077 | -8,701 |
Retained earnings | 735,640 | 596,829 |
Skechers U.S.A., Inc. equity | 1,075,249 | 930,322 |
Noncontrolling interests | 58,858 | 49,598 |
Total equity | 1,134,107 | 979,920 |
TOTAL LIABILITIES AND EQUITY | 1,674,918 | 1,408,570 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock | 40 | 40 |
Total equity | 40 | 40 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock | 10 | 11 |
Total equity | $10 | $11 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Trade accounts receivable, allowances | $21,007 | $15,926 |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 40,287,000 | 39,688,000 |
Common Stock, shares outstanding | 40,287,000 | 39,688,000 |
Class B Common Stock [Member] | ||
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common Stock, shares issued | 10,470,000 | 10,870,000 |
Common Stock, shares outstanding | 10,470,000 | 10,870,000 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Net sales | $2,377,561 | $1,846,361 | $1,560,321 |
Cost of sales | 1,305,656 | 1,027,569 | 876,995 |
Gross profit | 1,071,905 | 818,792 | 683,326 |
Royalty income | 9,107 | 7,734 | 7,104 |
Operating income | 1,081,012 | 826,526 | 690,430 |
Operating expenses: | |||
Selling | 181,018 | 153,491 | 134,920 |
General and administrative | 690,923 | 579,426 | 533,191 |
Operating expenses | 871,941 | 732,917 | 668,111 |
Earnings from operations | 209,071 | 93,609 | 22,319 |
Other income (expense): | |||
Interest income | 837 | 841 | 559 |
Interest expense | -12,466 | -11,890 | -13,324 |
Other, net | -662 | 447 | -216 |
Gain (loss) on foreign currency transactions | -5,400 | -792 | 1,135 |
Total Other income (expense) | -17,691 | -11,394 | -11,846 |
Earnings before income tax expense | 191,380 | 82,215 | 10,473 |
Income tax expense (benefit) | 39,184 | 21,347 | -39 |
Net earnings | 152,196 | 60,868 | 10,512 |
Less: Net earnings attributable to noncontrolling interests | 13,385 | 6,080 | 1,000 |
Net earnings attributable to Skechers U.S.A., Inc. | $138,811 | $54,788 | $9,512 |
Net earnings per share attributable to Skechers U.S.A., Inc.: | |||
Basic | $2.74 | $1.09 | $0.19 |
Diluted | $2.72 | $1.08 | $0.19 |
Weighted average shares used in calculating earnings per share attributable to Skechers U.S.A., Inc.: | |||
Basic | 50,613 | 50,363 | 49,495 |
Diluted | 51,026 | 50,563 | 49,942 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $152,196 | $60,868 | $10,512 |
Other comprehensive income, net of tax: | |||
Loss on foreign currency translation adjustment, net of tax | -7,954 | -6,363 | -1,251 |
Comprehensive income | 144,242 | 54,505 | 9,261 |
Less: Comprehensive income attributable to noncontrolling interests | 12,807 | 6,018 | 1,255 |
Comprehensive income attributable to Skechers U.S.A., Inc. | $131,435 | $48,487 | $8,006 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | ADDITIONAL PAID-IN CAPITAL [Member] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Member] | RETAINED EARNINGS [Member] | SKECHERS U.S.A., INC. EQUITY [Member] | NON CONTROLLING INTERESTS [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] |
In Thousands, except Share data | ||||||||
Beginning Balance at Dec. 31, 2011 | $892,527 | $320,877 | ($894) | $532,529 | $852,561 | $39,966 | $38 | $11 |
Beginning Balance, Shares at Dec. 31, 2011 | 37,959,000 | 11,297,000 | ||||||
Net earnings | 10,512 | 9,512 | 9,512 | 1,000 | ||||
Foreign currency translation adjustment | -1,251 | -1,506 | -1,506 | 255 | ||||
Contribution from noncontrolling interest of consolidated entity | 3,501 | 3,501 | ||||||
Distribution to noncontrolling interest of consolidated entity | -1,602 | -1,602 | ||||||
Stock compensation expense | 11,527 | 11,527 | 11,527 | |||||
Proceeds from issuance of common stock under the employee stock purchase plan | 2,374 | 2,374 | 2,374 | |||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 186,199 | 186,000 | ||||||
Proceeds from issuance of common stock under the employee stock option plan | 1,051 | 1,050 | 1,051 | 1 | ||||
Proceeds from issuance of common stock under the employee stock option plan, Shares | 853,000 | |||||||
Tax benefit of stock options exercised | 450 | 450 | 450 | |||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 23,000 | -23,000 | ||||||
Ending Balance at Dec. 31, 2012 | 919,089 | 336,278 | -2,400 | 542,041 | 875,969 | 43,120 | 39 | 11 |
Ending Balance, Shares at Dec. 31, 2012 | 39,021,000 | 11,274,000 | ||||||
Net earnings | 60,868 | 54,788 | 54,788 | 6,080 | ||||
Foreign currency translation adjustment | -6,363 | -6,301 | -6,301 | -62 | ||||
Contribution from noncontrolling interest of consolidated entity | 3,635 | 3,635 | ||||||
Distribution to noncontrolling interest of consolidated entity | -3,175 | -3,175 | ||||||
Stock compensation expense | 2,388 | 2,388 | 2,388 | |||||
Proceeds from issuance of common stock under the employee stock purchase plan | 2,614 | 2,614 | 2,614 | |||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 149,257 | 149,000 | ||||||
Proceeds from issuance of common stock under the employee stock option plan | 333 | 332 | 333 | 1 | ||||
Proceeds from issuance of common stock under the employee stock option plan, Shares | 114,000 | |||||||
Tax benefit of stock options exercised | 531 | 531 | 531 | |||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 404,000 | -404,000 | ||||||
Ending Balance at Dec. 31, 2013 | 979,920 | 342,143 | -8,701 | 596,829 | 930,322 | 49,598 | 40 | 11 |
Ending Balance, Shares at Dec. 31, 2013 | 39,688,000 | 10,870,000 | ||||||
Net earnings | 152,196 | 138,811 | 138,811 | 13,385 | ||||
Foreign currency translation adjustment | -7,954 | -7,376 | -7,376 | -578 | ||||
Contribution from noncontrolling interest of consolidated entity | 503 | 503 | ||||||
Distribution to noncontrolling interest of consolidated entity | -4,050 | -4,050 | ||||||
Stock compensation expense | 8,684 | 8,684 | 8,684 | |||||
Proceeds from issuance of common stock under the employee stock purchase plan | 3,363 | 3,363 | 3,363 | |||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 102,153 | 102,000 | ||||||
Proceeds from issuance of common stock under the employee stock option plan, Shares | 97,000 | |||||||
Tax benefit of stock options exercised | 1,446 | 1,446 | 1,446 | |||||
Conversion of Class B Common Stock into Class A Common Stock | -1 | -1 | -1 | |||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 400,000 | -400,000 | ||||||
Ending Balance at Dec. 31, 2014 | $1,134,107 | $355,636 | ($16,077) | $735,640 | $1,075,249 | $58,858 | $40 | $10 |
Ending Balance, Shares at Dec. 31, 2014 | 40,287,000 | 10,470,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net earnings | $152,196 | $60,868 | $10,512 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Depreciation of property, plant and equipment | 47,557 | 42,397 | 41,542 |
Amortization of deferred financing costs | 1,201 | 1,201 | 1,195 |
Amortization of intangible assets | 747 | 912 | 906 |
Provision for bad debts, returns and allowances | 14,153 | 2,868 | 1,112 |
Tax benefit from share-based compensation | -201 | -78 | |
Non-cash share-based compensation | 8,684 | 2,388 | 11,527 |
Deferred income taxes (benefits) | 22,411 | 11,583 | -7,538 |
Loss (gain) on disposal of property, plant and equipment | 837 | -447 | 216 |
(Increase) decrease in assets: | |||
Receivables | -70,695 | -21,279 | -36,989 |
Inventories | -100,162 | -22,589 | -111,813 |
Prepaid expenses and other current assets | -31,788 | 1,205 | 60,266 |
Other assets | 4,548 | -3,239 | -4,955 |
Increase (decrease) in liabilities: | |||
Accounts payable | 98,686 | 17,596 | 9,958 |
Accrued expenses | 15,507 | 5,714 | 20,692 |
Net cash provided by (used in) operating activities | 163,882 | 98,977 | -3,447 |
Cash flows from investing activities: | |||
Capital expenditures | -56,905 | -41,294 | -52,452 |
Intangible additions | -87 | ||
Net cash used in investing activities | -56,905 | -41,381 | -52,452 |
Cash flows from financing activities: | |||
Net proceeds from the issuances of stock through employee stock purchase plan and the exercise of stock options | 3,363 | 2,947 | 3,425 |
Contribution from non-controlling interest of consolidated entity | 503 | 3,635 | 3,501 |
Distributions to non-controlling interest of consolidated entity | -4,050 | -3,175 | -1,602 |
Excess tax benefits from share-based compensation | 1,446 | 732 | 528 |
Proceeds (payments) on short-term borrowings | 1,723 | -2,382 | -47,998 |
Proceeds from long-term debt | 82,143 | ||
Payments on long-term debt | -12,028 | -11,667 | -10,243 |
Net cash (used in) provided by financing activities | -9,043 | -9,910 | 29,754 |
Net increase (decrease) in cash and cash equivalents | 97,934 | 47,686 | -26,145 |
Effect of exchange rates on cash and cash equivalents | -3,260 | -1,501 | 827 |
Cash and cash equivalents at beginning of year | 372,011 | 325,826 | 351,144 |
Cash and cash equivalents at end of year | 466,685 | 372,011 | 325,826 |
Cash paid (received) during the year for: | |||
Interest | 10,822 | 10,624 | 11,812 |
Income taxes paid (recovered) | $29,499 | $5,480 | ($48,706) |
The_Company_and_Summary_Of_Sig
The Company and Summary Of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
The Company and Summary Of Significant Accounting Policies | -1 | THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
(a) | The Company and Basis of Presentation | ||||||||||||
Skechers U.S.A., Inc. and subsidiaries (the “Company”) designs, develops, markets and distributes footwear. The Company also operates 362 domestic and 87 international retail stores and an e-commerce business as of December 31, 2014. | |||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
(b) | Use of Estimates | ||||||||||||
The Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States. Significant areas requiring the use of estimates relate primarily to revenue recognition, allowance for bad debts, returns, sales allowances and customer chargebacks, inventory write-downs, valuation of intangibles and long-lived assets, litigation reserves and valuation of deferred income taxes. Actual results could differ from those estimates. | |||||||||||||
(c) | Revenue Recognition | ||||||||||||
The Company recognizes revenue on wholesale sales when products are shipped and the customer takes title and assumes risk of loss, collection of the relevant receivable is reasonably assured, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. This generally occurs at time of shipment. Wholesale sales, which include amounts billed for shipping and handling costs, are recognized net of allowances for estimated returns, sales allowances, discounts, chargebacks. Allowances for estimated returns, discounts, doubtful accounts and chargebacks are recorded when related revenue is recorded. Related costs paid to third-party shipping companies are recorded as cost of sales. The Company recognizes revenue from retail and e-commerce sales at the point of sale. Sales and value added taxes collected from retail customers are excluded from reported revenues. | |||||||||||||
Royalty income is earned from licensing arrangements. Upon signing a new licensing agreement, the Company receives up-front fees, which are generally characterized as prepaid royalties. These fees are initially deferred and recognized as revenue as earned. In addition, the Company receives royalty payments based on actual sales of the licensed products. Typically, at each quarter-end the Company receives correspondence from licensees indicating the actual sales for the period. This information is used to calculate and record the related royalties based on the terms of the agreement. | |||||||||||||
(d) | Business Segment Information | ||||||||||||
The Company’s operations and segments are organized along its distribution channels and consist of the following: domestic wholesale, international wholesale, retail and e-commerce sales. Information regarding these segments is summarized in Note 13 — Segment Information. | |||||||||||||
(e) | Noncontrolling Interests | ||||||||||||
The Company has equity interests in several joint ventures that were established either to exclusively distribute the Company’s products throughout Asia or to construct the Company’s domestic distribution facility. These joint ventures are variable interest entities (“VIE”)’s under Accounting Standards Codification (“ASC”) 810-10-15-14. The Company’s determination of the primary beneficiary of a VIE considers all relationships between the Company and the VIE, including management agreements, governance documents and other contractual arrangements. The Company has determined for its VIE’s the Company is the primary beneficiary because it has both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (b) the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Accordingly, the Company includes the assets and liabilities and results of operations of these entities in its consolidated financial statements, even though the Company may not hold a majority equity interest. There have been no changes during 2014 in the accounting treatment or characterization of any previously identified VIE. The Company continues to reassess these relationships quarterly. The assets of these joint ventures are restricted in that they are not available for general business use outside the context of such joint ventures. The holders of the liabilities of each joint venture have no recourse to the Company. The Company does not have a variable interest in any unconsolidated VIEs. | |||||||||||||
(f) | Fair Value of Financial Instruments | ||||||||||||
The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, investments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the relatively short maturity of such instruments. | |||||||||||||
The carrying amount of the Company’s long-term borrowings are considered Level 2 liabilities, which approximates the fair value based upon current rates and terms available to the Company for similar debt. | |||||||||||||
(g) | Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents consist primarily of certificates of deposit with an initial term of less than three months. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. | |||||||||||||
(h) | Allowance for Bad Debts, Returns, Sales Allowances and Customer Chargebacks | ||||||||||||
The Company provides a reserve charged against revenue and its receivables for estimated losses that may result from its customers’ inability to pay. To minimize the likelihood of uncollectibility, customers’ credit-worthiness is reviewed periodically based on external credit reporting services, financial statements issued by the customer and the Company’s experience with the account, and it is adjusted accordingly. When a customer’s account becomes significantly past due, the Company generally places a hold on the account and discontinues further shipments to that customer, minimizing further risk of loss. The Company determines the amount of the reserve by analyzing known uncollectible accounts, aged receivables, economic conditions in the customers’ countries or industries, historical losses and its customers’ credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged or written off against this reserve. | |||||||||||||
The Company also reserves for potential disputed amounts or chargebacks from its customers. The Company’s chargeback reserve is based on a collectibility percentage based on factors such as historical trends, current economic conditions, and nature of the chargeback receivables. The Company also reserves for potential sales returns and allowances based on historical trends. | |||||||||||||
The likelihood of a material loss on an uncollectible account would be mainly dependent on deterioration in the overall economic conditions in a particular country or environment. Reserves are fully provided for all probable losses of this nature. For receivables that are not specifically identified as high risk, the Company provides a reserve based upon its historical loss rate as a percentage of sales. | |||||||||||||
(i) | Inventories | ||||||||||||
Inventories, principally finished goods, are stated at the lower of cost (based on the first-in, first-out method) or market (net realizable value). Cost includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. The Company provides for estimated losses from obsolete or slow-moving inventories and writes down the cost of inventory at the time such determinations are made. Reserves are estimated based upon inventory on hand, historical sales activity, industry trends, the retail environment, and the expected net realizable value. The net realizable value is determined based upon estimated sales prices of such inventory through off-price or discount store channels. | |||||||||||||
(j) | Property, Plant and Equipment | ||||||||||||
Depreciation and amortization of property, plant and equipment is computed using the straight-line method based on the following estimated useful lives: | |||||||||||||
Buildings | 20 years | ||||||||||||
Building improvements | 10 years | ||||||||||||
Furniture, fixtures and equipment | 5 to 20 years | ||||||||||||
Leasehold improvements | Useful life or remaining lease term, whichever is shorter | ||||||||||||
Property, plant and equipment subject to depreciation and amortization is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company reviews both quantitative and qualitative factors to assess if a triggering event occurred. The Company prepares a summary of store cash flows from its retail stores to assess potential impairment of the fixed assets and leasehold improvements. Stores with negative cash flows opened in excess of 24 months are then reviewed in detail to determine if impairment exists. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company did not record impairment charges during the years ended December 31, 2014, December 31, 2013 or December 31, 2012. | |||||||||||||
(k) | Goodwill, Intangible Assets, Purchased Intangibles and Deferred Financing Costs | ||||||||||||
Goodwill and other intangible assets are measured for impairment at least annually and more often when events indicate that impairment exists. Intellectual property, which include purchased intellectual property, artwork and designs, trade names and trademarks are amortized over their useful lives ranging from 1–10 years, generally on a straight-line basis. Intangible assets, which were primarily allocated to the domestic wholesale segment, as of December 31, 2014 and 2013, are as follows (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Intellectual property | $ | 7,887 | $ | 7,887 | |||||||||
Goodwill | 1,575 | 1,575 | |||||||||||
Less accumulated amortization | (7,832 | ) | (7,085 | ) | |||||||||
Total intangible assets | $ | 1,630 | $ | 2,377 | |||||||||
The Company recorded, in general and administrative expenses, amortization expense of $0.7 million, $0.9 million and $0.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company recorded, in interest expense, amortization of deferred financing costs of $1.2 million, $1.2 million and $1.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company did not record impairment charges during the years ended December 31, 2014, December 31, 2013 or December 31, 2012. | |||||||||||||
(l) | Income Taxes | ||||||||||||
The Company accounts for income taxes in accordance with ASC 740-10, which requires that the Company recognize deferred tax liabilities for taxable temporary differences and deferred tax assets for deductible temporary differences and operating loss carry-forwards using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit or expense is recognized as a result of changes in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all of any deferred tax assets will not be realized. | |||||||||||||
(m) | Foreign Currency Translation | ||||||||||||
In accordance with ASC 830-30, certain international operations use the respective local currencies as their functional currency, while other international operations use the U.S. Dollar as their functional currency. The Company considers the U.S. dollar as its reporting currency. The Company operates internationally through several foreign subsidiaries. Translation adjustments for these subsidiaries are included in other comprehensive income. Additionally, one international subsidiary, Skechers S.a.r.l. located in Switzerland, operates with a functional currency of the U.S. dollar. Resulting re-measurement gains and losses from this subsidiary are included in the determination of net earnings. Assets and liabilities of the foreign operations denominated in local currencies are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the weighted average rate of exchange during the period. Translations of intercompany loans of a long-term investment nature are included as a component of translation adjustment in other comprehensive income. | |||||||||||||
(n) | Net Earnings Per Share Attributable to Skechers U.S.A., Inc. | ||||||||||||
Basic earnings per share represents net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share, in addition to the weighted average determined for basic earnings per share, includes potential common shares which would arise from the exercise of stock options using the treasury stock method. | |||||||||||||
The Company has two classes of issued and outstanding common stock, Class A Common Stock and Class B Common Stock. Holders of Class A Common Stock and holders of Class B Common Stock have substantially identical rights, including rights with respect to any declared dividends or distributions of cash or property and the right to receive proceeds on liquidation or dissolution of the Company after payment of the Company’s indebtedness. The two classes have different voting rights, with holders of Class A Common Stock entitled to one vote per share while holders of Class B Common Stock are entitled to ten votes per share on all matters submitted to a vote of stockholders. The Company uses the two-class method for calculating net earnings per share. Basic and diluted net earnings per share of Class A Common Stock and Class B Common Stock are identical. The shares of Class B Common Stock are convertible at any time at the option of the holder into shares of Class A Common Stock on a share-for-share basis. In addition, shares of Class B Common Stock will be automatically converted into a like number of shares of Class A Common Stock upon any transfer to any person or entity which is not a permitted transferee. | |||||||||||||
The following is a reconciliation of net earnings and weighted average common shares outstanding for purposes of calculating earnings per share (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
Basic earnings per share | 2014 | 2013 | 2012 | ||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $ | 138,811 | $ | 54,788 | $ | 9,512 | |||||||
Weighted average common shares outstanding | 50,613 | 50,363 | 49,495 | ||||||||||
Basic earnings per share | $ | 2.74 | $ | 1.09 | $ | 0.19 | |||||||
Years Ended December 31, | |||||||||||||
Diluted earnings per share | 2014 | 2013 | 2012 | ||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $ | 138,811 | $ | 54,788 | $ | 9,512 | |||||||
Weighted average common shares outstanding | 50,613 | 50,363 | 49,495 | ||||||||||
Dilutive stock options | 413 | 200 | 447 | ||||||||||
Weighted average common shares outstanding | 51,026 | 50,563 | 49,942 | ||||||||||
Diluted earnings per share | $ | 2.72 | $ | 1.08 | $ | 0.19 | |||||||
There were no options excluded from the computation of diluted earnings per share for the years ended December 31, 2014, 2013 or 2012. | |||||||||||||
(o) | Comprehensive Income | ||||||||||||
Comprehensive income consists of net earnings and foreign currency translation adjustments. Comprehensive income is presented in the consolidated statements of comprehensive income. Components of accumulated other comprehensive income consist of foreign currency translation adjustments and income attributable to non-controlling interests. The Company operates internationally through several foreign subsidiaries. Assets and liabilities of the foreign operations denominated in local currencies are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the weighted average rate of exchange during the period of translation. The resulting translation adjustments along with translation adjustments related to intercompany loans of a long-term nature are included in the translation adjustment in other comprehensive income. | |||||||||||||
(p) | Advertising Costs | ||||||||||||
Advertising costs are expensed in the period in which the advertisements are first run or over the life of the endorsement contract. Advertising expense for the years ended December 31, 2014, 2013 and 2012 was approximately $141.7 million, $118.5 million and $103.9 million, respectively. Prepaid advertising costs were $13.0 million and $5.5 million at December 31, 2014 and 2013, respectively. Prepaid amounts outstanding at December 31, 2014 and 2013, represent the unamortized portion of endorsement contracts, advertising in trade publications and media productions created which had not run as of December 31, 2014 and 2013, respectively. | |||||||||||||
(q) | Product Design and Development Costs | ||||||||||||
The Company charges all product design and development costs to general and administrative expenses when incurred. Product design and development costs aggregated approximately $10.3 million, $9.2 million, and $9.5 million during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
(r) | Warehouse and Distribution Costs | ||||||||||||
The Company’s distribution network related costs are included in general and administrative expenses and are not allocated to specific segments. The expenses related to its distribution network, including the functions of purchasing, receiving, inspecting, allocating, warehousing and packaging of its products totaled $134.8 million, $122.9 million and $119.3 million for 2014, 2013 and 2012, respectively. | |||||||||||||
(s) | Recent Accounting Pronouncements | ||||||||||||
In May 2014, the FASB amended the FASB Accounting Standards Codification and created a new Topic ASC 606. This amendment prescribes that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, and most industry-specific guidance throughout the Industry Topics of the Codification. For annual and interim reporting periods the mandatory adoption date of ASC 606 is January 1, 2017, and there will be two methods of adoption allowed, either a full retrospective adoption or a modified retrospective adoption. The Company is currently evaluating the impact of ASC 606, but at the current time does not know what impact the new standard will have on revenue recognized and other accounting decisions in future periods, if any, nor what method of adoption will be selected if the impact is material. | |||||||||||||
In August 2014, the FASB amended the FASB Accounting Standards Codification and amended Subtopic 205-40, “Presentation of Financial Statements — Going Concern.” This amendment prescribes that an entity should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The amendments will become effective for the Company’s annual and interim reporting periods beginning January 1, 2017. The Company is evaluating the impact on its consolidated financial statements, however, the Company does not expect that the adoption of this standard will have a material impact on the Company’s consolidated financial statements. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | -2 | PROPERTY, PLANT AND EQUIPMENT | |||||||
Property, plant and equipment at December 31, 2014 and 2013 is summarized as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Land | $ | 61,163 | $ | 59,113 | |||||
Buildings and improvements | 177,348 | 176,987 | |||||||
Furniture, fixtures and equipment | 217,271 | 195,629 | |||||||
Leasehold improvements | 197,467 | 174,663 | |||||||
Total property, plant and equipment | 653,249 | 606,392 | |||||||
Less accumulated depreciation and amortization | 280,066 | 244,637 | |||||||
Property, plant and equipment, net | $ | 373,183 | $ | 361,755 | |||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Expenses | -3 | ACCRUED EXPENSES | |||||||
Accrued expenses at December 31, 2014 and 2013 are summarized as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Accrued inventory purchases | $ | 22,553 | $ | 15,514 | |||||
Accrued payroll and taxes | 27,152 | 24,610 | |||||||
Accrued expenses | $ | 49,705 | $ | 40,124 | |||||
Line_of_Credit_and_ShortTerm_B
Line of Credit and Short-Term Borrowings | 12 Months Ended | ||
Dec. 31, 2014 | |||
Debt Disclosure [Abstract] | |||
Line of Credit and Short-Term Borrowings | -4 | LINE OF CREDIT AND SHORT-TERM BORROWINGS | |
On June 30, 2009, the Company entered into a $250.0 million secured credit agreement, (the “Credit Agreement”) with a syndicate of banks, of which six currently remain as participants. On November 5, 2009, March 4, 2010, May 3, 2011, and September 30, 2013, the company entered into four successive amendments to the Credit Agreement (collectively, the “Amended Credit Agreement”). The Amended Credit Agreement matures in June 2015. The Amended Credit Agreement permits the Company and certain of its subsidiaries to borrow up to $250.0 million based upon a borrowing base of eligible accounts receivable and inventory, which amount can be increased to $300.0 million at its request and upon satisfaction of certain conditions including obtaining the commitment of existing or prospective lenders willing to provide the incremental amount. Borrowings bear interest at the Company’s election based on LIBOR or a Base Rate (defined as the greatest of the base LIBOR plus 1.00%, the Federal Funds Rate plus 0.5% or one of the lenders’ prime rate), in each case, plus an applicable margin based on the average daily principal balance of revolving loans under the credit agreement (0.50%, 0.75% or 1.00% for Base Rate loans and 1.50%, 1.75% or 2.00% for LIBOR loans). The company pays a monthly unused line of credit fee of 0.25% or 0.375% per annum, which varies based on the average daily principal balance of outstanding revolving loans and undrawn amounts of letters of credit outstanding during such month. The Amended Credit Agreement further provides for a limit on the issuance of letters of credit to a maximum of $50.0 million. The Amended Credit Agreement contains customary affirmative and negative covenants for secured credit facilities of this type, including a fixed charge coverage ratio that applies when excess availability is less than $40.0 million. In addition, the Amended Credit Agreement places limits on additional indebtedness that the Company is permitted to incur as well as other restrictions on certain transactions. The Company paid syndication and commitment fees of $6.7 million on this facility, which are being amortized to interest expense over the six-year life of the facility. As of December 31, 2014, there is $0.1 million outstanding under this facility, which is classified as short-term borrowings in the consolidated balance sheet. The remaining balance in short-term borrowings, as of December 31, 2014, is related to the Company’s joint venture in India. |
LongTerm_Borrowings
Long-Term Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Borrowings | -5 | LONG-TERM BORROWINGS | |||||||
Long-term borrowings at December 31, 2014 and 2013 is as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Note payable to bank, due in monthly installments of $346.6 (includes principal and interest), variable rate interest at 3.92% per annum, secured by property, balloon payment of $77,060 due October 2015 | $ | 77,900 | $ | 78,908 | |||||
Note payable to bank, due in monthly installments of $531.4 (includes principal and interest), fixed rate interest at 3.54% per annum, secured by property, balloon payment of $12,635 due December 2015 | 19,159 | 23,573 | |||||||
Note payable to bank, due in monthly installments of $483.9 (includes principal and interest), fixed rate interest at 3.19% per annum, secured by property, balloon payment of $11,670 due June 2016 | 17,940 | 24,265 | |||||||
Note payable to TCF Equipment Finance, Inc., due in monthly installments of $30.5 (includes principal and interest), fixed rate interest at 5.24% per annum, maturity date of July 2019 | 1,489 | 1,770 | |||||||
Subtotal | 116,488 | 128,516 | |||||||
Less current installments | 101,407 | 12,028 | |||||||
Total long-term borrowings, excluding current installments | $ | 15,081 | $ | 116,488 | |||||
The aggregate maturities of long-term borrowings at December 31, 2014 are as follows: | |||||||||
2015 | 101,407 | ||||||||
2016 | 14,198 | ||||||||
2017 | 328 | ||||||||
2018 | 345 | ||||||||
2019 | 210 | ||||||||
Thereafter | — | ||||||||
$ | 116,488 | ||||||||
The Company’s long-term debt obligations contain both financial and non-financial covenants, including cross-default provisions. The Company is in compliance with its non-financial covenants, including any cross default provisions, and financial covenants of its long-term borrowings as of December 31, 2014. | |||||||||
On April 30, 2010, the Company entered into a construction loan agreement (the “Loan Agreement”), by and among HF Logistics-SKX T1, LLC, a wholly-owned subsidiary of the JV (“HF-T1”), Bank of America, N.A. and Raymond James Bank, FSB. Borrowings made pursuant to the Loan Agreement were up to a maximum limit of $55.0 million (the “Loan”), which were used to construct the domestic distribution facility in Rancho Belago, California. Borrowings bore interest based on LIBOR, and the Loan Agreement’s original maturity date was April 30, 2012, which was extended to November 30, 2012. On November 16, 2012, HF-T1 executed a modification to the Loan Agreement (the “Modification”), which increased the borrowings under the Loan to $80.0 million and extended the maturity date of the Loan to October 31, 2015. The $80.0 million was used to (i) repay $54.7 million in outstanding borrowings under the original Loan, (ii) repay a loan of $18.3 million including accrued interest from HF to the JV, (iii) repay a loan to the JV of $2.5 million including accrued interest from Skechers RB, LLC, a wholly-owned subsidiary of the Company (iv) pay a deferred management fee of $1.9 million to HF, and (iv) pay distributions of $0.9 million to each of HF and Skechers RB, LLC, with (v) $0.8 million used for loan fees and other closing costs. Under the Modification, OneWest Bank, FSB is an additional lender that funded in part the increase to the Loan, and the interest rate on the Loan is the daily British Bankers Association LIBOR rate plus a margin of 3.75%, which is no longer subject to a minimum rate. The Loan Agreement and the Modification are subject to customary covenants and events of default. As of December 31, 2014, there was $77.9 million outstanding under the Loan Agreement and the Modification, which is included in current installments of long-term borrowings. As of December 31, 2013, there was $78.9 million outstanding under the Loan Agreement and the Modification, which was included in long-term borrowings. The Company paid commitment fees of $0.6 million on the Loan, which are being amortized to interest expense over the life of the Loan. | |||||||||
On December 29, 2010, the Company entered into a master loan and security agreement (the “Master Agreement”), by and between us and Banc of America Leasing & Capital, LLC, and an Equipment Security Note (together with the Master Agreement, the “Loan Documents”), by and among us, Banc of America Leasing & Capital, LLC, and Bank of Utah, as agent (“Agent”). The Company used the proceeds to refinance certain equipment already purchased and to purchase new equipment for use in the Rancho Belago distribution facility. Borrowings made pursuant to the Master Agreement may be in the form of one or more equipment security notes (each a “Note,” and, collectively, the “Notes”) up to a maximum limit of $80.0 million and each for a term of 60 months. The Note entered into on the same date as the Master Agreement represents a borrowing of approximately $39.3 million. Interest will accrue at a fixed rate of 3.54% per annum. On June 30, 2011, the Company entered into another Note agreement for approximately $36.3 million. Interest will accrue at a fixed rate of 3.19% per annum. As of December 31, 2014, the Company had $37.1 million outstanding on the Notes, of which $23.2 is included in current installments of long-term borrowings and $13.9 million is included in long-term borrowings. As of December 31, 2013, there was $47.8 million outstanding on the Notes, which was included in long-term borrowings. The Company paid commitment fees of $0.8 million on this loan, which are being amortized to interest expense over the five-year life of the Notes. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Income Taxes | -6 | INCOME TAXES | |||||||||||||||||||||||
The provisions for income tax expense (benefit) were as follows (in thousands): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Federal: | |||||||||||||||||||||||||
Current | $ | 7,677 | $ | 632 | $ | (67 | ) | ||||||||||||||||||
Deferred | 23,659 | 11,537 | (6,381 | ) | |||||||||||||||||||||
Total federal | 31,336 | 12,169 | (6,448 | ) | |||||||||||||||||||||
State: | |||||||||||||||||||||||||
Current | 2,060 | 519 | 1,796 | ||||||||||||||||||||||
Deferred | 529 | 119 | (307 | ) | |||||||||||||||||||||
Total state | 2,589 | 638 | 1,489 | ||||||||||||||||||||||
Foreign: | |||||||||||||||||||||||||
Current | 5,399 | 8,228 | 5,325 | ||||||||||||||||||||||
Deferred | (140 | ) | 312 | (405 | ) | ||||||||||||||||||||
Total foreign | 5,259 | 8,540 | 4,920 | ||||||||||||||||||||||
Total income taxes (benefit) | $ | 39,184 | $ | 21,347 | $ | (39 | ) | ||||||||||||||||||
The Company’s provision for income tax expense (benefit) and effective income tax rate are significantly impacted by the mix of the Company’s domestic and foreign earnings (loss) before income taxes. In the non-U.S. jurisdictions in which the Company has operations, the applicable statutory rates are generally significantly lower than in the U.S., ranging from 0% to 34%. The Company’s provision for income tax expense (benefit) was calculated using the applicable statutory rate for each jurisdiction applied to the Company’s pre-tax earnings (loss) in each jurisdiction, while the Company’s effective tax rate is calculated by dividing income tax expense (benefit) by earnings before income taxes. | |||||||||||||||||||||||||
The Company’s earnings (loss) before income taxes and income tax expense (benefit) for 2014, 2013 and 2012 are as follows (in thousands): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Income tax jurisdiction | Earnings (loss) | Income tax | Earnings (loss) | Income tax | Earnings (loss) | Income tax | |||||||||||||||||||
before income | expense | before income | expense | before income | expense | ||||||||||||||||||||
taxes | taxes | taxes | (benefit) | ||||||||||||||||||||||
United States | $ | 82,778 | $ | 32,500 | $ | 38,705 | $ | 12,807 | $ | (27,379 | ) | $ | (5,867 | ) | |||||||||||
Canada | 6,241 | 1,572 | 4,091 | 1,187 | 2,564 | 545 | |||||||||||||||||||
Chile | 629 | 138 | 9,622 | 1,920 | 5,971 | 1,043 | |||||||||||||||||||
Peoples Republic of China (“China”) | 15,201 | 1,179 | 6,148 | 1,646 | 1,278 | 319 | |||||||||||||||||||
Jersey (1) | 77,555 | — | 25,348 | — | 25,162 | — | |||||||||||||||||||
Non-benefited loss operations (2) | (13,021 | ) | — | (15,841 | ) | — | (13,492 | ) | — | ||||||||||||||||
Other jurisdictions (3) | 21,997 | 3,795 | 14,142 | 3,787 | 16,369 | 3,921 | |||||||||||||||||||
Earnings before income taxes | $ | 191,380 | $ | 39,184 | $ | 82,215 | $ | 21,347 | $ | 10,473 | $ | (39 | ) | ||||||||||||
Effective tax rate (4) | 20.5 | % | 26 | % | (0.4 | )% | |||||||||||||||||||
-1 | Jersey does not assess income tax on corporate net earnings. | ||||||||||||||||||||||||
-2 | Consists of entities in the following tax jurisdictions where no tax benefit is recognized in the period being reported because of the provision of offsetting valuation allowances: Japan, Brazil and India. | ||||||||||||||||||||||||
-3 | Consists of entities in the following tax jurisdictions, each of which comprises not more than 5%, of 2014 consolidated earnings (loss) before taxes: UK, Germany, France, Spain, Belgium, Italy, Netherlands, Switzerland, Malaysia, Thailand, Singapore, Hong Kong, Portugal and Austria. | ||||||||||||||||||||||||
-4 | The effective tax rate is calculated by dividing income tax expense (benefit) by earnings before income taxes. | ||||||||||||||||||||||||
For 2014, the effective tax rate was lower than the U.S. federal and state combined statutory rate of approximately 39% primarily because of earnings from foreign operations in jurisdictions imposing either lower tax rates on corporate earnings or no corporate income tax. During 2014, as reflected in the table above, earnings (loss) before income taxes in the U.S. was earnings of $82.8 million, with income tax expense of $32.5 million, an average rate of 39.3%, while earnings (loss) before income taxes in non-U.S. jurisdictions was earnings of $108.6 million, with aggregate income tax expense of $6.7 million, an average rate of 6.2%. Combined, this results in consolidated earnings before income taxes for the period of $191.4 million, and consolidated income tax expense for the period of $39.2 million, resulting in an effective tax rate of 20.5%. | |||||||||||||||||||||||||
For 2014, of the Company’s $108.6 million in earnings before income tax earned outside the U.S., $77.6 million was earned in Jersey, which does not impose a tax on corporate earnings. In addition, there were foreign losses of $13.0 million for which no tax benefit was recognized during the year ended December 31, 2014 because of the provision of offsetting valuation allowances. Individually, none of the other foreign jurisdictions included in “Other jurisdictions” in the table above had more than 5% of 2014 consolidated earnings (loss) before taxes. | |||||||||||||||||||||||||
Unremitted earnings of non-U.S. subsidiaries are expected to be reinvested outside of the U.S. indefinitely. Such earnings would become taxable upon the sale or liquidation of these subsidiaries or upon the remittance of dividends. | |||||||||||||||||||||||||
As of December 31, 2014, the Company had approximately $466.7 million in cash and cash equivalents, of which $193.2 million, or 41.4%, was held outside the U.S. Of the $193.2 million held by the Company’s non-U.S. subsidiaries, approximately $42.8 million is available for repatriation to the U.S. without incurring U.S. income taxes and applicable non-U.S. income and withholding taxes in excess of the amounts accrued in the Company’s financial statements as of December 31, 2014. The Company’s cash and cash equivalents held in the U.S. and cash provided from operations are sufficient to meet the Company’s liquidity needs in the U.S. for the next twelve months and the Company does not expect to repatriate any of the funds presently designated as indefinitely reinvested outside the U.S. Under current applicable tax laws, if the Company chooses to repatriate some or all of the funds designated as indefinitely reinvested outside the U.S., the amount repatriated would be subject to U.S. income taxes and applicable non-U.S. income and withholding taxes. As of December 31, 2014 and 2013, U.S. income taxes have not been provided on cumulative total earnings of $318.2 million and $226.0 million, respectively. | |||||||||||||||||||||||||
Income taxes differ from the statutory tax rates as applied to earnings before income taxes as follows (in thousands): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Expected income tax expense | $ | 66,981 | $ | 28,775 | $ | 3,666 | |||||||||||||||||||
State income tax, net of federal benefit | 1,032 | 255 | 1,406 | ||||||||||||||||||||||
Rate differential on foreign income | (27,364 | ) | (11,897 | ) | (8,752 | ) | |||||||||||||||||||
Change in unrecognized tax benefits | (2,717 | ) | 740 | (149 | ) | ||||||||||||||||||||
Non-deductible expenses | 288 | (150 | ) | 194 | |||||||||||||||||||||
Prior year R&D credit claims | — | (493 | ) | — | |||||||||||||||||||||
Other | 3,333 | (1,187 | ) | 79 | |||||||||||||||||||||
Change in valuation allowance | (2,369 | ) | 5,304 | 3,517 | |||||||||||||||||||||
Total provision (benefit) for income taxes | $ | 39,184 | $ | 21,347 | $ | (39 | ) | ||||||||||||||||||
Effective tax rate | 20.5 | % | 26 | % | (0.4 | )% | |||||||||||||||||||
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are presented below (in thousands): | |||||||||||||||||||||||||
DEFERRED TAX ASSETS: | 2014 | 2013 | |||||||||||||||||||||||
Deferred tax assets – current: | |||||||||||||||||||||||||
Inventory adjustments | $ | 4,942 | $ | 5,075 | |||||||||||||||||||||
Accrued expenses | 15,103 | 17,084 | |||||||||||||||||||||||
Allowances for bad debts and chargebacks | 6,407 | 6,179 | |||||||||||||||||||||||
Total current assets | 26,452 | 28,338 | |||||||||||||||||||||||
Deferred tax assets – long term: | |||||||||||||||||||||||||
Loss carryforwards | 23,247 | 43,711 | |||||||||||||||||||||||
Business credit carryforward | 4,042 | 9,763 | |||||||||||||||||||||||
Share-based compensation | 2,282 | 279 | |||||||||||||||||||||||
Valuation allowance | (17,534 | ) | (19,903 | ) | |||||||||||||||||||||
Total long term assets | 12,037 | 33,850 | |||||||||||||||||||||||
Total deferred tax assets | 38,489 | 62,188 | |||||||||||||||||||||||
Deferred tax liabilities – current: | |||||||||||||||||||||||||
Prepaid expenses | 7,588 | 6,223 | |||||||||||||||||||||||
Deferred tax liabilities – long term: | |||||||||||||||||||||||||
Depreciation on property, plant and equipment | 22,050 | 24,703 | |||||||||||||||||||||||
Total deferred tax liabilities | 29,638 | 30,926 | |||||||||||||||||||||||
Net deferred tax assets | $ | 8,851 | $ | 31,262 | |||||||||||||||||||||
The Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets. | |||||||||||||||||||||||||
Unused U.S. Federal tax credits and net operating losses carried forward from 2012 and prior tax years were used to reduce the Company’s 2014 and 2013 federal tax liability. There were no Federal carry-forward amounts remaining as of December 31, 2014. Federal tax credits and net operating loss carry-forward amounts remaining as of December 31, 2013 were $7.8 million and $47.7 million, respectively. As of December 31, 2014 and 2013, no valuation allowance against the related deferred tax asset has been set up for these loss and tax credit carry-forwards as the carry-forwards were fully utilized in reducing taxable income in 2013 and 2014. | |||||||||||||||||||||||||
State tax credit and net operating loss carry-forward amounts remaining as of December 31, 2014 were $7.2 million and $65.6 million, respectively. State tax credit and net operating loss carry-forward amounts remaining as of December 31, 2013 were $6.0 million and $109.2 million, respectively. These tax credit and net operating loss carry-forward amounts don’t begin to expire until 2028 and 2021, respectively. As of December 31, 2014 and 2013, no valuation allowance against the related deferred tax asset has been set up for these loss and credit carry-forwards as it is believed the carry-forwards will be fully utilized in reducing future taxable income. | |||||||||||||||||||||||||
As of December 31, 2014 and 2013, the Company had combined foreign net operating loss carry-forwards available to reduce future taxable income of approximately $56.9 million and $55.9 million, respectively. Some of these net operating losses expire beginning in 2015; however others can be carried forward indefinitely. As of December 31, 2014 and 2013, valuation allowances of $15.9 million and $16.5 million, respectively, had been set up against the related deferred tax assets for those loss carry-forwards that are not more likely than not to be fully utilized in reducing future taxable income. | |||||||||||||||||||||||||
The balance of unrecognized tax benefits included in net prepaid expenses and long-term liabilities in the consolidated balance sheets decreased by $2.9 million during the year. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Beginning balance | $ | 10,816 | $ | 10,221 | |||||||||||||||||||||
Additions for current year tax positions | 773 | 696 | |||||||||||||||||||||||
Additions for prior year tax positions | — | 164 | |||||||||||||||||||||||
Reductions for prior year tax positions | (2,227 | ) | (5 | ) | |||||||||||||||||||||
Settlement of uncertain tax positions | — | — | |||||||||||||||||||||||
Reductions related to lapse of statute of limitations | (1,426 | ) | (260 | ) | |||||||||||||||||||||
Ending balance | $ | 7,936 | $ | 10,816 | |||||||||||||||||||||
If recognized, $7.1 million of unrecognized tax benefits would be recorded as a reduction in income tax expense. | |||||||||||||||||||||||||
Estimated interest and penalties related to the underpayment of income taxes are classified as a component of income tax expense (benefit) and totaled ($0.2) million for the year ended December 31, 2014, $0.1 million for the year ended December 31, 2013, and $0.2 million for the year ended December 31, 2012. Accrued interest and penalties were $1.7 million and $1.8 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The amount of income taxes the Company pays is subject to ongoing audits by taxing jurisdictions around the world. The Company’s estimate of the potential outcome of any uncertain tax position is subject to its assessment of relevant risks, facts, and circumstances existing at that time. The Company believes that it has adequately provided for these matters. However, the Company’s future results may include favorable or unfavorable adjustments to its estimates in the period the audits are resolved, which may impact the Company’s effective tax rate. | |||||||||||||||||||||||||
As of December 31, 2014, the Company’s tax filings are generally subject to examination in the U.S. and several Asian and European tax jurisdictions for years ending on or after December 31, 2007. During the year, the Company reduced the balance of 2014 and prior year unrecognized tax benefits by $1.4 million as a result of expiring statutes. | |||||||||||||||||||||||||
The Company is currently under examination by the IRS for tax years 2007 through 2011. The Company is also under examination by a number of states and certain foreign jurisdictions. During the year ended December 31, 2014, there was no reduction in the balance of 2014 and prior year unrecognized tax benefits due to any settlement of an examination. It is reasonably possible that certain federal, state and foreign examinations could be settled during the next twelve months which would reduce the balance of 2014 and prior year unrecognized tax benefits by $4.1 million. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | -7 | COMMITMENTS AND CONTINGENCIES | |||
(a) | Leases | ||||
The Company leases facilities under operating lease agreements expiring through November 2031. The Company pays taxes, maintenance and insurance in addition to the lease obligations. The Company also leases certain equipment and automobiles under operating lease agreements expiring at various dates through September 2018. Rent expense for the years ended December 31, 2014, 2013 and 2012 approximated $107.0 million, $94.0 million and $88.7 million, respectively. | |||||
Minimum lease payments, which take into account escalation clauses, are recognized on a straight-line basis over the minimum lease term. Subsequent adjustments to the lease payments due to changes in an existing index, usually the consumer price index, are typically included in the calculation of the minimum lease payments when the adjustment is known. Reimbursements for leasehold improvements are recorded as liabilities and are amortized over the lease term. Lease concessions, usually a free rent period, are considered in the calculation of the minimum lease payments for the minimum lease term. | |||||
Future minimum lease payments under noncancellable leases at December 31, 2014 are as follows (in thousands): | |||||
OPERATING | |||||
LEASES | |||||
Year ending December 31: | |||||
2015 | $ | 142,695 | |||
2016 | 135,195 | ||||
2017 | 120,204 | ||||
2018 | 110,608 | ||||
2019 | 99,389 | ||||
Thereafter | 461,356 | ||||
$ | 1,069,447 | ||||
(b) | Litigation | ||||
The Company recognizes legal expense in connection with loss contingencies as incurred. | |||||
In accordance with accounting principles generally accepted in the U.S., the Company records a liability in its consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from litigation and governmental proceedings are inherently difficult to predict, particularly when the matters are in the procedural stages or with unspecified or indeterminate claims for damages, potential penalties, or fines. Accordingly, the Company cannot determine the final amount, if any, of its liability beyond the amount accrued in the consolidated financial statements as of December 31, 2014, nor is it possible to estimate what litigation-related costs will be in the future. | |||||
(c) | Product and Other Financing | ||||
The Company finances production activities in part through the use of interest-bearing open purchase arrangements with certain of its international manufacturers. These arrangements currently bear interest at rates between 0% and 0.5% for 30- to 60- day financing. The amounts outstanding under these arrangements at December 31, 2014 and 2013 were $171.4 million and $69.1 million, respectively, which are included in accounts payable in the accompanying consolidated balance sheets. Interest expense incurred by the Company under these arrangements amounted to $5.1 million in 2014, $3.9 million in 2013, and $3.8 million in 2012. The Company has open purchase commitments with its foreign manufacturers at December 31, 2014 of $558.7 million, which are not included in the accompanying consolidated balance sheets. |
Noncontrolling_Interests
Noncontrolling Interests | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Noncontrolling Interests | -8 | NONCONTROLLING INTERESTS | |||||||
The following VIE’s are consolidated into the Company’s consolidated financial statements and the carrying amounts and classification of assets and liabilities were as follows (in thousands): | |||||||||
HF Logistics-SKX, LLC | December 31, 2014 | December 31, 2013 | |||||||
Current assets | $ | 6,812 | $ | 3,076 | |||||
Noncurrent assets | 118,837 | 129,796 | |||||||
Total assets | $ | 125,649 | $ | 132,872 | |||||
Current liabilities | $ | 78,668 | $ | 1,835 | |||||
Noncurrent liabilities | 1,194 | 79,389 | |||||||
Total liabilities | $ | 79,862 | $ | 81,224 | |||||
Distribution joint ventures (1) | December 31, 2014 | December 31, 2013 | |||||||
Current assets | $ | 94,819 | $ | 49,835 | |||||
Noncurrent assets | 10,322 | 9,209 | |||||||
Total assets | $ | 105,141 | $ | 59,044 | |||||
Current liabilities | $ | 38,470 | $ | 15,687 | |||||
Noncurrent liabilities | 66 | 32 | |||||||
Total liabilities | $ | 38,536 | $ | 15,719 | |||||
-1 | Distribution joint ventures include Skechers China Limited, Skechers Southeast Asia Limited, Skechers Thailand Limited, Skechers South Asia Private Limited, and Skechers Retail India Private Limited. | ||||||||
Noncontrolling interest earnings was $13.4 million, $6.1 million and $1.0 million for the years ended December 31, 2014, 2013 and 2012, respectively, which represents the share of net earnings or loss that is attributable to the Company’s joint venture partners. HF Logistics-SKX, LLC made cash capital distributions of $3.7 million and $3.2 million during the years ended December 31, 2014 and 2013, respectively. Skechers China Limited made capital distributions of $0.4 million during the year ended December 31, 2014. The distribution joint venture partners made cash capital contributions of $0.5 million, $3.6 million and $3.5 million during the year ended December 31, 2014, 2013 and 2012, respectively. |
Stock_Compensation
Stock Compensation | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock Compensation | -9 | STOCK COMPENSATION | |||||||
(a) | Equity Incentive Plans | ||||||||
In January 1998, the Company’s Board of Directors adopted the Amended and Restated 1998 Stock Option, Deferred Stock and Restricted Stock Plan for the grant of incentive stock options (“ISOs”), non-qualified stock options and deferred and restricted stock (the “Equity Incentive Plan”). In June 2001, the stockholders approved an amendment to the plan to increase the number of shares of Class A Common Stock authorized for issuance under the plan to 8,215,154. In May 2003, stockholders approved an amendment to the plan to increase the number of shares of Class A Common Stock authorized for issuance under the plan to 11,215,154. Stock option awards are generally granted with an exercise price per share equal to the market price of a share of Class A Common Stock on the date of grant. Stock option awards generally become exercisable over a three-year graded vesting period and expire ten years from the date of grant. | |||||||||
On April 16, 2007, the Company’s Board of Directors adopted the 2007 Incentive Award Plan (the “2007 Plan”), which became effective upon approval by the Company’s stockholders on May 24, 2007. The Company’s Board of Directors terminated the Equity Incentive Plan as of May 24, 2007, with no granting of awards being permitted thereafter, although any awards then outstanding under the Equity Incentive Plan remain in force according to the terms of such terminated plan and the applicable award agreements. A total of 7,500,000 shares of Class A Common Stock are reserved for issuance under the 2007 Plan, which provides for grants of ISOs, non-qualified stock options, restricted stock and various other types of equity awards as described in the plan to the employees, consultants and directors of the Company and its subsidiaries. The 2007 Plan is administered by the Compensation Committee of the Company’s Board of Directors. | |||||||||
(b) | Valuation Assumptions | ||||||||
There were no stock options granted under the Equity Incentive Plan or the 2007 Plan during 2014, 2013 or 2012. There were no options exercised during 2014. The total intrinsic value of options exercised during 2013 and 2012 was $0.9 million and $1.9 million, respectively. | |||||||||
(c) | Stock-Based Payment Awards | ||||||||
Stock options granted pursuant to the 1998 Stock Option, Deferred Stock and Restricted Stock Plan and the 2007 Incentive Award Plan (the “Equity Incentive Plans”) were as follows: | |||||||||
SHARES | WEIGHTED AVERAGE | ||||||||
OPTION EXERCISE | |||||||||
PRICE | |||||||||
Outstanding at December 31, 2011 | 206,400 | $ | 7.62 | ||||||
Granted | — | — | |||||||
Exercised | (149,489 | ) | 7.03 | ||||||
Cancelled | (4,215 | ) | 6.95 | ||||||
Outstanding at December 31, 2012 | 52,696 | 9.34 | |||||||
Granted | — | — | |||||||
Exercised | (37,696 | ) | 8.83 | ||||||
Cancelled | — | — | |||||||
Outstanding at December 31, 2013 | 15,000 | 10.6 | |||||||
Granted | — | — | |||||||
Exercised | — | — | |||||||
Cancelled | (15,000 | ) | 10.6 | ||||||
Outstanding at December 31, 2014 | 0 | $ | 0 | ||||||
There was no unrecognized compensation cost related to stock option shares as of December 31, 2014 and 2013, respectively. | |||||||||
A summary of the status and changes of nonvested shares related to the Equity Incentive Plans as of and for the period ended December 31, 2014 is presented below: | |||||||||
SHARES | WEIGHTED AVERAGE | ||||||||
GRANT-DATE FAIR | |||||||||
VALUE | |||||||||
Nonvested at December 31, 2011 | 740,493 | $ | 19.02 | ||||||
Granted | 281,000 | 17.58 | |||||||
Vested/Released | (704,160 | ) | 18.58 | ||||||
Cancelled | (33,000 | ) | 27.6 | ||||||
Nonvested at December 31, 2012 | 284,333 | 17.69 | |||||||
Granted | 67,500 | 27.7 | |||||||
Vested/Released | (75,667 | ) | 18.03 | ||||||
Cancelled | — | — | |||||||
Nonvested at December 31, 2013 | 276,166 | 20.05 | |||||||
Granted | 1,092,500 | 47.02 | |||||||
Vested/Released | (97,333 | ) | 19.98 | ||||||
Cancelled | (7,500 | ) | 18.75 | ||||||
Nonvested at December 31, 2014 | 1,263,833 | $ | 43.38 | ||||||
As of December 31, 2014, a total of 3,716,381 shares remain available for grant as equity awards under the 2007 Plan. | |||||||||
The Company recognized compensation expense of $8.7 million, $2.4 million and $11.5 million and related income tax benefits (expense) of $1.4 million, $0.5 million, and $0.5 million for grants under its stock-based compensation plans in the consolidated statements of operations for the years ended December 31, 2014, 2013, and 2012, respectively. There was $48.7 million and $5.0 million of unrecognized compensation cost related to nonvested common shares as of December 31, 2014 and 2013, respectively. That cost is expected to be recognized over a weighted average period of 3.0 years and 2.7 years, respectively. The total fair value of shares vested during the period ended December 31, 2014 and 2013 was $1.9 million and $1.4 million, respectively. | |||||||||
(d) | Stock Purchase Plans | ||||||||
On April 16, 2007, the Company’s Board of Directors adopted the 2008 Employee Stock Purchase Plan (the “2008 ESPP”), and the Company’s stockholders approved the 2008 ESPP on May 24, 2007. The 2008 ESPP became effective on January 1, 2008, and the Company’s Board of Directors terminated the 1998 ESPP as of such date, with no additional granting of rights being permitted under the 1998 ESPP. The 2008 ESPP provides that a total of 3,000,000 shares of Class A Common Stock are reserved for issuance under the plan. The number of shares that may be made available for sale is subject to automatic increases on the first day of each fiscal year during the term of the 2008 ESPP as provided in the plan. The 2008 ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended. The terms of the 2008 ESPP permit eligible employees to purchase Class A Common Stock at six-month intervals through payroll deductions, which may not exceed 15% of an employee’s compensation. The price of Class A Common Stock purchased under the 2008 ESPP is 85% of the lower of the fair market value of the Class A Common Stock at the beginning of each six-month offering period or on the applicable purchase date. Employees may end their participation in an offering at any time during the offering period. The 2008 ESPP is administered by the Company’s Board of Directors. | |||||||||
During 2014, 2013 and 2012, 102,153 shares, 149,257 shares and 186,199 shares were issued under the 2008 ESPP for which the Company received approximately $3.4 million, $2.6 million and $2.4 million, respectively. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||
Dec. 31, 2014 | |||
Equity [Abstract] | |||
Stockholders' Equity | -10 | STOCKHOLDERS’ EQUITY | |
The authorized capital stock of the Company consists of 100,000,000 shares of Class A Common Stock, par value $.001 per share, 60,000,000 shares of Class B Common Stock, par value $.001 per share, and 10,000,000 shares of preferred stock, $.001 par value per share. | |||
The Company has two classes of issued and outstanding common stock, Class A Common Stock and Class B Common Stock. Holders of Class A Common Stock and holders of Class B Common Stock have substantially identical rights, including rights with respect to any declared dividends or distributions of cash or property and the right to receive proceeds on liquidation or dissolution of the Company after payment of the Company’s indebtedness. The two classes have different voting rights, with holders of Class A Common Stock entitled to one vote per share while holders of Class B Common Stock are entitled to ten votes per share on all matters submitted to a vote of stockholders. The shares of Class B Common Stock are convertible at any time at the option of the holder into shares of Class A Common Stock on a share-for-share basis. In addition, shares of Class B Common Stock will be automatically converted into a like number of shares of Class A Common Stock upon any transfer to any person or entity which is not a permitted transferee. | |||
During 2014, 2013 and 2012, certain Class B stockholders converted 399,776 shares, 404,396 shares and 22,880 shares, respectively, of Class B Common Stock to Class A Common Stock. |
Business_and_Credit_Concentrat
Business and Credit Concentrations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||
Business and Credit Concentrations | -11 | BUSINESS AND CREDIT CONCENTRATIONS | |||||||||||
The Company generates the majority of its sales in the United States; however, several of its products are sold into various foreign countries, which subject the Company to the risks of doing business abroad. In addition, the Company operates in the footwear industry, which is impacted by the general economy, and its business depends on the general economic environment and levels of consumer spending. Changes in the marketplace may significantly affect the Company’s estimates and its performance. The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. Domestic accounts receivable, which generally do not require collateral from customers, amounted to $166.9 million and $138.4 million before allowances for bad debts and sales returns, and chargebacks at December 31, 2014 and 2013, respectively. Foreign accounts receivable, which generally are collateralized by letters of credit, amounted to $126.2 million and $103.5 million before allowance for bad debts, sales returns, and chargebacks at December 31, 2014 and 2013, respectively. International net sales amounted to $819.3 million, $558.1 million and $496.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company’s credit losses charged to expense for the years ended December 31, 2014, 2013 and 2012 were $11.8 million, $2.6 million and $1.5 million, respectively. In addition, the Company’s recorded sales return and allowance expense (recoveries) for the years ended December 31, 2014, 2013 and 2012 were $2.3 million, $0.2 million and $(0.4) million, respectively. | |||||||||||||
Assets located outside the United States consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Net assets held outside the United States were $548.9 million and $413.2 million at December 31, 2014 and 2013, respectively. | |||||||||||||
During 2014, 2013 and 2012, no customer accounted for 10.0% or more of net sales. No customer accounted for more than 10% of net trade receivables at December 31, 2014 or December 31, 2013. During 2014, 2013 and 2012, net sales to the five largest customers were approximately 15.7%, 18.1% and 18.1%, respectively. | |||||||||||||
The Company’s top five manufacturers produced the following for the years ended December 31, 2014, 2013 and 2012, respectively: | |||||||||||||
Percentage of total production | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Manufacturer #1 | 37.5 | % | 37.8 | % | 33.5 | % | |||||||
Manufacturer #2 | 6.1 | % | 7.1 | % | 9.2 | % | |||||||
Manufacturer #3 | 5.7 | % | 6.1 | % | 6.7 | % | |||||||
Manufacturer #4 | 4.9 | % | 4.8 | % | 6.6 | % | |||||||
Manufacturer #5 | 4.7 | % | 4.1 | % | 5.6 | % | |||||||
58.9 | % | 59.9 | % | 61.6 | % | ||||||||
The majority of the Company’s products are produced in China. The Company’s operations are subject to the customary risks of doing business abroad, including but not limited to currency fluctuations and revaluations, custom duties and related fees, various import controls and other monetary barriers, restrictions on the transfer of funds, labor unrest and strikes and, in certain parts of the world, political instability. The Company believes it has acted to reduce these risks by diversifying manufacturing among various factories. To date, these business risks have not had a material adverse impact on the Company’s operations. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||
Dec. 31, 2014 | |||
Postemployment Benefits [Abstract] | |||
Employee Benefit Plans | -12 | EMPLOYEE BENEFIT PLANS | |
The Company has a 401(k) profit sharing plan covering all employees who are 21 years of age and have completed six months of service. Employees may contribute up to 15.0% of annual compensation. Company contributions to the plan are discretionary and vest over a six year period. The Company did not make a contribution to the plan for the years ended December 31, 2014, 2013 and 2012, respectively. | |||
In May 2013, the Company established the Skechers U.S.A., Inc. Deferred Compensation Plan (the “Plan”), which allows eligible employees to defer compensation up to a maximum amount to a future date on a nonqualified basis. The Plan provides for the Company to make discretionary contributions to participating employees, which will be determined by the Company’s Compensation Committee. The Company did not make a contribution to the plan for the year ended December 31, 2014 or 2013. The value of the deferred compensation is recognized based on the fair value of the participants’ accounts as determined monthly. The Company has established a rabbi trust (the “Trust”) as a reserve for the benefits payable under the Plan. The assets of the Trust and deferred liabilities are presented in the Company’s condensed consolidated balance sheets. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information | -13 | SEGMENT INFORMATION | |||||||||||
The Company has four reportable segments – domestic wholesale sales, international wholesale sales, retail sales, and e-commerce sales. The Company evaluates segment performance based primarily on net sales and gross margins. All other costs and expenses of the Company are analyzed on an aggregate basis, and these costs are not allocated to the Company’s segments. Net sales, gross margins and identifiable assets for the domestic wholesale, international wholesale, retail, and the e-commerce segment on a combined basis were as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
Domestic wholesale | $ | 997,994 | $ | 802,163 | $ | 652,651 | |||||||
International wholesale | 689,195 | 478,799 | 432,163 | ||||||||||
Retail | 663,528 | 538,186 | 453,600 | ||||||||||
E-commerce | 26,844 | 27,213 | 21,907 | ||||||||||
Total | $ | 2,377,561 | $ | 1,846,361 | $ | 1,560,321 | |||||||
2014 | 2013 | 2012 | |||||||||||
Gross profit | |||||||||||||
Domestic wholesale | $ | 367,980 | $ | 288,818 | $ | 242,931 | |||||||
International wholesale | 292,722 | 198,853 | 166,454 | ||||||||||
Retail | 398,613 | 319,036 | 264,010 | ||||||||||
E-commerce | 12,590 | 12,085 | 9,931 | ||||||||||
Total | $ | 1,071,905 | $ | 818,792 | $ | 683,326 | |||||||
2014 | 2013 | ||||||||||||
Identifiable assets | |||||||||||||
Domestic wholesale | $ | 979,582 | $ | 865,071 | |||||||||
International wholesale | 510,063 | 374,738 | |||||||||||
Retail | 185,041 | 168,532 | |||||||||||
E-commerce | 232 | 229 | |||||||||||
Total | $ | 1,674,918 | $ | 1,408,570 | |||||||||
2014 | 2013 | 2012 | |||||||||||
Additions to property, plant and equipment | |||||||||||||
Domestic wholesale | $ | 9,655 | $ | 9,652 | $ | 33,488 | |||||||
International wholesale | 18,899 | 4,828 | 2,939 | ||||||||||
Retail | 28,351 | 26,814 | 16,025 | ||||||||||
Total | $ | 56,905 | $ | 41,294 | $ | 52,452 | |||||||
Geographic Information | |||||||||||||
The following summarizes the Company’s operations in different geographic areas as of and for the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Sales (1) | |||||||||||||
United States | $ | 1,558,226 | $ | 1,288,302 | $ | 1,064,298 | |||||||
Canada | 85,139 | 63,665 | 49,460 | ||||||||||
Other international (2) | 734,196 | 494,394 | 446,563 | ||||||||||
Total | $ | 2,377,561 | $ | 1,846,361 | $ | 1,560,321 | |||||||
2014 | 2013 | ||||||||||||
Property, plant and equipment | |||||||||||||
United States | $ | 332,383 | $ | 337,727 | |||||||||
Canada | 7,203 | 5,079 | |||||||||||
Other international (2) | 33,597 | 18,949 | |||||||||||
Total | $ | 373,183 | $ | 361,755 | |||||||||
-1 | The Company has subsidiaries in Canada, the United Kingdom, Germany, France, Spain, Portugal, Italy, the Netherlands, Japan, Brazil and Chile that generate net sales within those respective countries and in some cases the neighboring regions. The Company has joint ventures in India, China, Hong Kong, Malaysia, Singapore and Thailand that generate net sales from those countries. The Company also has a subsidiary in Switzerland that generates net sales from that country in addition to net sales to distributors located in numerous non-European countries. Net sales are attributable to geographic regions based on the location of the Company subsidiary. | ||||||||||||
-2 | Other international consists of Switzerland, the United Kingdom, Germany, Austria, France, Spain, Portugal, Italy, the Netherlands, China, Hong Kong, Malaysia, Singapore, Thailand, Brazil, Chile, Vietnam, India and Japan. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||
Dec. 31, 2014 | |||
Related Party Transactions [Abstract] | |||
Related Party Transactions | -14 | RELATED PARTY TRANSACTIONS | |
The Company paid approximately $160,000, $178,000, and $162,000 during 2014, 2013 and 2012, respectively, to the Manhattan Inn Operating Company, LLC (“MIOC”) for lodging, food and events including the Company’s holiday party at the Shade Hotel, which is owned and operated by MIOC. Michael Greenberg, President and a director of the Company, owns a 12% beneficial ownership interest in MIOC, and four other officers, directors and senior vice presidents of the Company own in aggregate an additional 5% beneficial ownership in MIOC. The Company had no outstanding accounts receivable or payable with MIOC or the Shade Hotel at December 31, 2014. | |||
On July 29, 2010, the Company formed the Skechers Foundation (the “Foundation”), which is a 501(c)(3) non-profit entity that does not have any shareholders or members. The Foundation is not a subsidiary of and is not otherwise affiliated with the Company, and the Company does not have a financial interest in the Foundation. However, two officers and directors of the Company, Michael Greenberg, the Company’s President, and David Weinberg, the Company’s Chief Operating Officer and Chief Financial Officer, are also officers and directors of the Foundation. During the year ended December 31, 2014, the Company did not make any contributions to the Foundation. During the years ended December 31, 2013 and 2012, the Company contributed $1.1 million and $1.0 million, respectively, to the Foundation to use for various charitable causes. | |||
The Company had receivables from officers and employees of $0.6 million and $0.4 million at December 31, 2014 and 2013, respectively. These amounts primarily relate to travel advances and incidental personal purchases on Company-issued credit cards. These receivables are short-term and are expected to be repaid within a reasonable period of time. The Company had no other significant transactions with or payables to officers, directors or significant shareholders of the Company. |
Subsequent_Events
Subsequent Events | 12 Months Ended | ||
Dec. 31, 2014 | |||
Subsequent Events [Abstract] | |||
Subsequent Events | -15 | SUBSEQUENT EVENTS | |
The Company has evaluated events subsequent to December 31, 2014, to assess the need for potential recognition or disclosure in this filing. Based upon this evaluation, it was determined that no subsequent events occurred that require recognition in the consolidated financial statements. |
Summary_of_Quarterly_Financial
Summary of Quarterly Financial Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of Quarterly Financial Information | -16 | SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||
Summarized unaudited financial data are as follows (in thousands): | |||||||||||||||||
2014 | MARCH 31 | JUNE 30 | SEPTEMBER 30 | DECEMBER 31 | |||||||||||||
Net sales | $ | 546,518 | $ | 587,051 | $ | 674,270 | $ | 569,722 | |||||||||
Gross profit | 240,403 | 269,375 | 304,498 | 257,629 | |||||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | 30,965 | 34,802 | 51,123 | 21,921 | |||||||||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.61 | $ | 0.69 | $ | 1.01 | $ | 0.43 | |||||||||
Diluted | 0.61 | 0.68 | 1 | 0.43 | |||||||||||||
2013 | MARCH 31 | JUNE 30 | SEPTEMBER 30 | DECEMBER 31 | |||||||||||||
Net sales | $ | 451,621 | $ | 428,247 | $ | 515,756 | $ | 450,737 | |||||||||
Gross profit | 192,732 | 194,894 | 230,521 | 200,645 | |||||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | 6,680 | 7,094 | 26,849 | 14,165 | |||||||||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.13 | $ | 0.14 | $ | 0.53 | $ | 0.28 | |||||||||
Diluted | 0.13 | 0.14 | 0.53 | 0.28 |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(in thousands) | |||||||||||||||||
Years Ended December 31, 2014, 2013, and 2012 | |||||||||||||||||
DESCRIPTION | BALANCE AT | CHARGED TO | DEDUCTIONS | BALANCE | |||||||||||||
BEGINNING OF | REVENUE | AND | AT END | ||||||||||||||
PERIOD | COSTS AND | WRITE-OFFS | OF PERIOD | ||||||||||||||
EXPENSES | |||||||||||||||||
Year-ended December 31, 2012: | |||||||||||||||||
Allowance for chargebacks | $ | 2,340 | $ | 1,357 | $ | (896 | ) | $ | 2,801 | ||||||||
Allowance for doubtful accounts | 10,331 | 186 | (3,350 | ) | 7,167 | ||||||||||||
Reserve for sales returns and allowances | 7,752 | (431 | ) | (367 | ) | 6,954 | |||||||||||
Reserve for shrinkage | 300 | 1,300 | (1,300 | ) | 300 | ||||||||||||
Reserve for obsolescence | 11,959 | 931 | (4,041 | ) | 8,849 | ||||||||||||
Year-ended December 31, 2013: | |||||||||||||||||
Allowance for chargebacks | $ | 2,801 | $ | 1,514 | $ | (1,825 | ) | $ | 2,490 | ||||||||
Allowance for doubtful accounts | 7,167 | 1,105 | (2,292 | ) | 5,980 | ||||||||||||
Reserve for sales returns and allowances | 6,954 | 249 | 253 | 7,456 | |||||||||||||
Reserve for shrinkage | 300 | 1,166 | (1,200 | ) | 266 | ||||||||||||
Reserve for obsolescence | 8,849 | 1,333 | (6,697 | ) | 3,485 | ||||||||||||
Year-ended December 31, 2014: | |||||||||||||||||
Allowance for chargebacks | $ | 2,490 | $ | 5,530 | $ | (1,469 | ) | $ | 6,551 | ||||||||
Allowance for doubtful accounts | 5,980 | 6,284 | (6,823 | ) | 5,441 | ||||||||||||
Reserve for sales returns and allowances | 7,456 | 2,339 | (780 | ) | 9,015 | ||||||||||||
Reserve for shrinkage | 266 | 1,292 | (1,220 | ) | 338 | ||||||||||||
Reserve for obsolescence | 3,485 | 5,656 | (6,140 | ) | 3,001 |
The_Company_and_Summary_Of_Sig1
The Company and Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
The Company and Basis of Presentation | (a) | The Company and Basis of Presentation | |||||||||||
Skechers U.S.A., Inc. and subsidiaries (the “Company”) designs, develops, markets and distributes footwear. The Company also operates 362 domestic and 87 international retail stores and an e-commerce business as of December 31, 2014. | |||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
Use of Estimates | (b) | Use of Estimates | |||||||||||
The Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States. Significant areas requiring the use of estimates relate primarily to revenue recognition, allowance for bad debts, returns, sales allowances and customer chargebacks, inventory write-downs, valuation of intangibles and long-lived assets, litigation reserves and valuation of deferred income taxes. Actual results could differ from those estimates. | |||||||||||||
Revenue Recognition | (c) | Revenue Recognition | |||||||||||
The Company recognizes revenue on wholesale sales when products are shipped and the customer takes title and assumes risk of loss, collection of the relevant receivable is reasonably assured, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. This generally occurs at time of shipment. Wholesale sales, which include amounts billed for shipping and handling costs, are recognized net of allowances for estimated returns, sales allowances, discounts, chargebacks. Allowances for estimated returns, discounts, doubtful accounts and chargebacks are recorded when related revenue is recorded. Related costs paid to third-party shipping companies are recorded as cost of sales. The Company recognizes revenue from retail and e-commerce sales at the point of sale. Sales and value added taxes collected from retail customers are excluded from reported revenues. | |||||||||||||
Royalty income is earned from licensing arrangements. Upon signing a new licensing agreement, the Company receives up-front fees, which are generally characterized as prepaid royalties. These fees are initially deferred and recognized as revenue as earned. In addition, the Company receives royalty payments based on actual sales of the licensed products. Typically, at each quarter-end the Company receives correspondence from licensees indicating the actual sales for the period. This information is used to calculate and record the related royalties based on the terms of the agreement. | |||||||||||||
Business Segment Information | (d) | Business Segment Information | |||||||||||
The Company’s operations and segments are organized along its distribution channels and consist of the following: domestic wholesale, international wholesale, retail and e-commerce sales. Information regarding these segments is summarized in Note 13 — Segment Information. | |||||||||||||
Noncontrolling Interests | (e) | Noncontrolling Interests | |||||||||||
The Company has equity interests in several joint ventures that were established either to exclusively distribute the Company’s products throughout Asia or to construct the Company’s domestic distribution facility. These joint ventures are variable interest entities (“VIE”)’s under Accounting Standards Codification (“ASC”) 810-10-15-14. The Company’s determination of the primary beneficiary of a VIE considers all relationships between the Company and the VIE, including management agreements, governance documents and other contractual arrangements. The Company has determined for its VIE’s the Company is the primary beneficiary because it has both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (b) the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Accordingly, the Company includes the assets and liabilities and results of operations of these entities in its consolidated financial statements, even though the Company may not hold a majority equity interest. There have been no changes during 2014 in the accounting treatment or characterization of any previously identified VIE. The Company continues to reassess these relationships quarterly. The assets of these joint ventures are restricted in that they are not available for general business use outside the context of such joint ventures. The holders of the liabilities of each joint venture have no recourse to the Company. The Company does not have a variable interest in any unconsolidated VIEs. | |||||||||||||
Fair Value of Financial Instruments | (f) | Fair Value of Financial Instruments | |||||||||||
The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, investments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the relatively short maturity of such instruments. | |||||||||||||
The carrying amount of the Company’s long-term borrowings are considered Level 2 liabilities, which approximates the fair value based upon current rates and terms available to the Company for similar debt. | |||||||||||||
Cash and Cash Equivalents | (g) | Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents consist primarily of certificates of deposit with an initial term of less than three months. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. | |||||||||||||
Allowance for Bad Debts, Returns, Sales Allowances and Customer Chargebacks | (h) | Allowance for Bad Debts, Returns, Sales Allowances and Customer Chargebacks | |||||||||||
The Company provides a reserve charged against revenue and its receivables for estimated losses that may result from its customers’ inability to pay. To minimize the likelihood of uncollectibility, customers’ credit-worthiness is reviewed periodically based on external credit reporting services, financial statements issued by the customer and the Company’s experience with the account, and it is adjusted accordingly. When a customer’s account becomes significantly past due, the Company generally places a hold on the account and discontinues further shipments to that customer, minimizing further risk of loss. The Company determines the amount of the reserve by analyzing known uncollectible accounts, aged receivables, economic conditions in the customers’ countries or industries, historical losses and its customers’ credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged or written off against this reserve. | |||||||||||||
The Company also reserves for potential disputed amounts or chargebacks from its customers. The Company’s chargeback reserve is based on a collectibility percentage based on factors such as historical trends, current economic conditions, and nature of the chargeback receivables. The Company also reserves for potential sales returns and allowances based on historical trends. | |||||||||||||
The likelihood of a material loss on an uncollectible account would be mainly dependent on deterioration in the overall economic conditions in a particular country or environment. Reserves are fully provided for all probable losses of this nature. For receivables that are not specifically identified as high risk, the Company provides a reserve based upon its historical loss rate as a percentage of sales. | |||||||||||||
Inventories | (i) | Inventories | |||||||||||
Inventories, principally finished goods, are stated at the lower of cost (based on the first-in, first-out method) or market (net realizable value). Cost includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. The Company provides for estimated losses from obsolete or slow-moving inventories and writes down the cost of inventory at the time such determinations are made. Reserves are estimated based upon inventory on hand, historical sales activity, industry trends, the retail environment, and the expected net realizable value. The net realizable value is determined based upon estimated sales prices of such inventory through off-price or discount store channels. | |||||||||||||
Property, Plant and Equipment | (j) | Property, Plant and Equipment | |||||||||||
Depreciation and amortization of property, plant and equipment is computed using the straight-line method based on the following estimated useful lives: | |||||||||||||
Buildings | 20 years | ||||||||||||
Building improvements | 10 years | ||||||||||||
Furniture, fixtures and equipment | 5 to 20 years | ||||||||||||
Leasehold improvements | Useful life or remaining lease term, whichever is shorter | ||||||||||||
Property, plant and equipment subject to depreciation and amortization is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company reviews both quantitative and qualitative factors to assess if a triggering event occurred. The Company prepares a summary of store cash flows from its retail stores to assess potential impairment of the fixed assets and leasehold improvements. Stores with negative cash flows opened in excess of 24 months are then reviewed in detail to determine if impairment exists. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company did not record impairment charges during the years ended December 31, 2014, December 31, 2013 or December 31, 2012. | |||||||||||||
Goodwill, Intangible Assets, Purchased Intangibles and Deferred Financing Costs | (k) | Goodwill, Intangible Assets, Purchased Intangibles and Deferred Financing Costs | |||||||||||
Goodwill and other intangible assets are measured for impairment at least annually and more often when events indicate that impairment exists. Intellectual property, which include purchased intellectual property, artwork and designs, trade names and trademarks are amortized over their useful lives ranging from 1–10 years, generally on a straight-line basis. Intangible assets, which were primarily allocated to the domestic wholesale segment, as of December 31, 2014 and 2013, are as follows (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Intellectual property | $ | 7,887 | $ | 7,887 | |||||||||
Goodwill | 1,575 | 1,575 | |||||||||||
Less accumulated amortization | (7,832 | ) | (7,085 | ) | |||||||||
Total intangible assets | $ | 1,630 | $ | 2,377 | |||||||||
The Company recorded, in general and administrative expenses, amortization expense of $0.7 million, $0.9 million and $0.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company recorded, in interest expense, amortization of deferred financing costs of $1.2 million, $1.2 million and $1.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company did not record impairment charges during the years ended December 31, 2014, December 31, 2013 or December 31, 2012. | |||||||||||||
Income Taxes | (l) | Income Taxes | |||||||||||
The Company accounts for income taxes in accordance with ASC 740-10, which requires that the Company recognize deferred tax liabilities for taxable temporary differences and deferred tax assets for deductible temporary differences and operating loss carry-forwards using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit or expense is recognized as a result of changes in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all of any deferred tax assets will not be realized. | |||||||||||||
Foreign Currency Translation | (m) | Foreign Currency Translation | |||||||||||
In accordance with ASC 830-30, certain international operations use the respective local currencies as their functional currency, while other international operations use the U.S. Dollar as their functional currency. The Company considers the U.S. dollar as its reporting currency. The Company operates internationally through several foreign subsidiaries. Translation adjustments for these subsidiaries are included in other comprehensive income. Additionally, one international subsidiary, Skechers S.a.r.l. located in Switzerland, operates with a functional currency of the U.S. dollar. Resulting re-measurement gains and losses from this subsidiary are included in the determination of net earnings. Assets and liabilities of the foreign operations denominated in local currencies are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the weighted average rate of exchange during the period. Translations of intercompany loans of a long-term investment nature are included as a component of translation adjustment in other comprehensive income. | |||||||||||||
Net Earnings Per Share Attributable to Skechers U.S.A., Inc. | (n) | Net Earnings Per Share Attributable to Skechers U.S.A., Inc. | |||||||||||
Basic earnings per share represents net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share, in addition to the weighted average determined for basic earnings per share, includes potential common shares which would arise from the exercise of stock options using the treasury stock method. | |||||||||||||
The Company has two classes of issued and outstanding common stock, Class A Common Stock and Class B Common Stock. Holders of Class A Common Stock and holders of Class B Common Stock have substantially identical rights, including rights with respect to any declared dividends or distributions of cash or property and the right to receive proceeds on liquidation or dissolution of the Company after payment of the Company’s indebtedness. The two classes have different voting rights, with holders of Class A Common Stock entitled to one vote per share while holders of Class B Common Stock are entitled to ten votes per share on all matters submitted to a vote of stockholders. The Company uses the two-class method for calculating net earnings per share. Basic and diluted net earnings per share of Class A Common Stock and Class B Common Stock are identical. The shares of Class B Common Stock are convertible at any time at the option of the holder into shares of Class A Common Stock on a share-for-share basis. In addition, shares of Class B Common Stock will be automatically converted into a like number of shares of Class A Common Stock upon any transfer to any person or entity which is not a permitted transferee. | |||||||||||||
The following is a reconciliation of net earnings and weighted average common shares outstanding for purposes of calculating earnings per share (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
Basic earnings per share | 2014 | 2013 | 2012 | ||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $ | 138,811 | $ | 54,788 | $ | 9,512 | |||||||
Weighted average common shares outstanding | 50,613 | 50,363 | 49,495 | ||||||||||
Basic earnings per share | $ | 2.74 | $ | 1.09 | $ | 0.19 | |||||||
Years Ended December 31, | |||||||||||||
Diluted earnings per share | 2014 | 2013 | 2012 | ||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $ | 138,811 | $ | 54,788 | $ | 9,512 | |||||||
Weighted average common shares outstanding | 50,613 | 50,363 | 49,495 | ||||||||||
Dilutive stock options | 413 | 200 | 447 | ||||||||||
Weighted average common shares outstanding | 51,026 | 50,563 | 49,942 | ||||||||||
Diluted earnings per share | $ | 2.72 | $ | 1.08 | $ | 0.19 | |||||||
There were no options excluded from the computation of diluted earnings per share for the years ended December 31, 2014, 2013 or 2012. | |||||||||||||
Comprehensive Income | (o) | Comprehensive Income | |||||||||||
Comprehensive income consists of net earnings and foreign currency translation adjustments. Comprehensive income is presented in the consolidated statements of comprehensive income. Components of accumulated other comprehensive income consist of foreign currency translation adjustments and income attributable to non-controlling interests. The Company operates internationally through several foreign subsidiaries. Assets and liabilities of the foreign operations denominated in local currencies are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the weighted average rate of exchange during the period of translation. The resulting translation adjustments along with translation adjustments related to intercompany loans of a long-term nature are included in the translation adjustment in other comprehensive income. | |||||||||||||
Advertising Costs | (p) | Advertising Costs | |||||||||||
Advertising costs are expensed in the period in which the advertisements are first run or over the life of the endorsement contract. Advertising expense for the years ended December 31, 2014, 2013 and 2012 was approximately $141.7 million, $118.5 million and $103.9 million, respectively. Prepaid advertising costs were $13.0 million and $5.5 million at December 31, 2014 and 2013, respectively. Prepaid amounts outstanding at December 31, 2014 and 2013, represent the unamortized portion of endorsement contracts, advertising in trade publications and media productions created which had not run as of December 31, 2014 and 2013, respectively. | |||||||||||||
Product Design and Development Costs | (q) | Product Design and Development Costs | |||||||||||
The Company charges all product design and development costs to general and administrative expenses when incurred. Product design and development costs aggregated approximately $10.3 million, $9.2 million, and $9.5 million during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Warehouse and Distribution Costs | (r) | Warehouse and Distribution Costs | |||||||||||
The Company’s distribution network related costs are included in general and administrative expenses and are not allocated to specific segments. The expenses related to its distribution network, including the functions of purchasing, receiving, inspecting, allocating, warehousing and packaging of its products totaled $134.8 million, $122.9 million and $119.3 million for 2014, 2013 and 2012, respectively. | |||||||||||||
Recent Accounting Pronouncements | (s) | Recent Accounting Pronouncements | |||||||||||
In May 2014, the FASB amended the FASB Accounting Standards Codification and created a new Topic ASC 606. This amendment prescribes that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, and most industry-specific guidance throughout the Industry Topics of the Codification. For annual and interim reporting periods the mandatory adoption date of ASC 606 is January 1, 2017, and there will be two methods of adoption allowed, either a full retrospective adoption or a modified retrospective adoption. The Company is currently evaluating the impact of ASC 606, but at the current time does not know what impact the new standard will have on revenue recognized and other accounting decisions in future periods, if any, nor what method of adoption will be selected if the impact is material. | |||||||||||||
In August 2014, the FASB amended the FASB Accounting Standards Codification and amended Subtopic 205-40, “Presentation of Financial Statements — Going Concern.” This amendment prescribes that an entity should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The amendments will become effective for the Company’s annual and interim reporting periods beginning January 1, 2017. The Company is evaluating the impact on its consolidated financial statements, however, the Company does not expect that the adoption of this standard will have a material impact on the Company’s consolidated financial statements. |
The_Company_and_Summary_Of_Sig2
The Company and Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Estimated Useful Lives of Property, Plant and Equipment | Depreciation and amortization of property, plant and equipment is computed using the straight-line method based on the following estimated useful lives: | ||||||||||||
Buildings | 20 years | ||||||||||||
Building improvements | 10 years | ||||||||||||
Furniture, fixtures and equipment | 5 to 20 years | ||||||||||||
Leasehold improvements | Useful life or remaining lease term, whichever is shorter | ||||||||||||
Schedule of Goodwill and Intangible Assets | Intangible assets, which were primarily allocated to the domestic wholesale segment, as of December 31, 2014 and 2013, are as follows (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Intellectual property | $ | 7,887 | $ | 7,887 | |||||||||
Goodwill | 1,575 | 1,575 | |||||||||||
Less accumulated amortization | (7,832 | ) | (7,085 | ) | |||||||||
Total intangible assets | $ | 1,630 | $ | 2,377 | |||||||||
Reconciliation of Net Earnings and Weighted Average Common Shares Outstanding | The following is a reconciliation of net earnings and weighted average common shares outstanding for purposes of calculating earnings per share (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
Basic earnings per share | 2014 | 2013 | 2012 | ||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $ | 138,811 | $ | 54,788 | $ | 9,512 | |||||||
Weighted average common shares outstanding | 50,613 | 50,363 | 49,495 | ||||||||||
Basic earnings per share | $ | 2.74 | $ | 1.09 | $ | 0.19 | |||||||
Years Ended December 31, | |||||||||||||
Diluted earnings per share | 2014 | 2013 | 2012 | ||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $ | 138,811 | $ | 54,788 | $ | 9,512 | |||||||
Weighted average common shares outstanding | 50,613 | 50,363 | 49,495 | ||||||||||
Dilutive stock options | 413 | 200 | 447 | ||||||||||
Weighted average common shares outstanding | 51,026 | 50,563 | 49,942 | ||||||||||
Diluted earnings per share | $ | 2.72 | $ | 1.08 | $ | 0.19 | |||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property, Plant and Equipment | Property, plant and equipment at December 31, 2014 and 2013 is summarized as follows (in thousands): | ||||||||
2014 | 2013 | ||||||||
Land | $ | 61,163 | $ | 59,113 | |||||
Buildings and improvements | 177,348 | 176,987 | |||||||
Furniture, fixtures and equipment | 217,271 | 195,629 | |||||||
Leasehold improvements | 197,467 | 174,663 | |||||||
Total property, plant and equipment | 653,249 | 606,392 | |||||||
Less accumulated depreciation and amortization | 280,066 | 244,637 | |||||||
Property, plant and equipment, net | $ | 373,183 | $ | 361,755 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Summary of Accrued Expenses | Accrued expenses at December 31, 2014 and 2013 are summarized as follows (in thousands): | ||||||||
2014 | 2013 | ||||||||
Accrued inventory purchases | $ | 22,553 | $ | 15,514 | |||||
Accrued payroll and taxes | 27,152 | 24,610 | |||||||
Accrued expenses | $ | 49,705 | $ | 40,124 | |||||
LongTerm_Borrowings_Tables
Long-Term Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Borrowings | Long-term borrowings at December 31, 2014 and 2013 is as follows (in thousands): | ||||||||
2014 | 2013 | ||||||||
Note payable to bank, due in monthly installments of $346.6 (includes principal and interest), variable rate interest at 3.92% per annum, secured by property, balloon payment of $77,060 due October 2015 | $ | 77,900 | $ | 78,908 | |||||
Note payable to bank, due in monthly installments of $531.4 (includes principal and interest), fixed rate interest at 3.54% per annum, secured by property, balloon payment of $12,635 due December 2015 | 19,159 | 23,573 | |||||||
Note payable to bank, due in monthly installments of $483.9 (includes principal and interest), fixed rate interest at 3.19% per annum, secured by property, balloon payment of $11,670 due June 2016 | 17,940 | 24,265 | |||||||
Note payable to TCF Equipment Finance, Inc., due in monthly installments of $30.5 (includes principal and interest), fixed rate interest at 5.24% per annum, maturity date of July 2019 | 1,489 | 1,770 | |||||||
Subtotal | 116,488 | 128,516 | |||||||
Less current installments | 101,407 | 12,028 | |||||||
Total long-term borrowings, excluding current installments | $ | 15,081 | $ | 116,488 | |||||
Aggregate Maturities of Long-Term Borrowings | The aggregate maturities of long-term borrowings at December 31, 2014 are as follows: | ||||||||
2015 | 101,407 | ||||||||
2016 | 14,198 | ||||||||
2017 | 328 | ||||||||
2018 | 345 | ||||||||
2019 | 210 | ||||||||
Thereafter | — | ||||||||
$ | 116,488 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Provisions for Income Tax Expense (Benefit) | The provisions for income tax expense (benefit) were as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Federal: | |||||||||||||||||||||||||
Current | $ | 7,677 | $ | 632 | $ | (67 | ) | ||||||||||||||||||
Deferred | 23,659 | 11,537 | (6,381 | ) | |||||||||||||||||||||
Total federal | 31,336 | 12,169 | (6,448 | ) | |||||||||||||||||||||
State: | |||||||||||||||||||||||||
Current | 2,060 | 519 | 1,796 | ||||||||||||||||||||||
Deferred | 529 | 119 | (307 | ) | |||||||||||||||||||||
Total state | 2,589 | 638 | 1,489 | ||||||||||||||||||||||
Foreign: | |||||||||||||||||||||||||
Current | 5,399 | 8,228 | 5,325 | ||||||||||||||||||||||
Deferred | (140 | ) | 312 | (405 | ) | ||||||||||||||||||||
Total foreign | 5,259 | 8,540 | 4,920 | ||||||||||||||||||||||
Total income taxes (benefit) | $ | 39,184 | $ | 21,347 | $ | (39 | ) | ||||||||||||||||||
Schedule of Earnings (Loss) before Income Taxes and Income Tax Expense (Benefit) | The Company’s earnings (loss) before income taxes and income tax expense (benefit) for 2014, 2013 and 2012 are as follows (in thousands): | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Income tax jurisdiction | Earnings (loss) | Income tax | Earnings (loss) | Income tax | Earnings (loss) | Income tax | |||||||||||||||||||
before income | expense | before income | expense | before income | expense | ||||||||||||||||||||
taxes | taxes | taxes | (benefit) | ||||||||||||||||||||||
United States | $ | 82,778 | $ | 32,500 | $ | 38,705 | $ | 12,807 | $ | (27,379 | ) | $ | (5,867 | ) | |||||||||||
Canada | 6,241 | 1,572 | 4,091 | 1,187 | 2,564 | 545 | |||||||||||||||||||
Chile | 629 | 138 | 9,622 | 1,920 | 5,971 | 1,043 | |||||||||||||||||||
Peoples Republic of China (“China”) | 15,201 | 1,179 | 6,148 | 1,646 | 1,278 | 319 | |||||||||||||||||||
Jersey (1) | 77,555 | — | 25,348 | — | 25,162 | — | |||||||||||||||||||
Non-benefited loss operations (2) | (13,021 | ) | — | (15,841 | ) | — | (13,492 | ) | — | ||||||||||||||||
Other jurisdictions (3) | 21,997 | 3,795 | 14,142 | 3,787 | 16,369 | 3,921 | |||||||||||||||||||
Earnings before income taxes | $ | 191,380 | $ | 39,184 | $ | 82,215 | $ | 21,347 | $ | 10,473 | $ | (39 | ) | ||||||||||||
Effective tax rate (4) | 20.5 | % | 26 | % | (0.4 | )% | |||||||||||||||||||
-1 | Jersey does not assess income tax on corporate net earnings. | ||||||||||||||||||||||||
-2 | Consists of entities in the following tax jurisdictions where no tax benefit is recognized in the period being reported because of the provision of offsetting valuation allowances: Japan, Brazil and India. | ||||||||||||||||||||||||
-3 | Consists of entities in the following tax jurisdictions, each of which comprises not more than 5%, of 2014 consolidated earnings (loss) before taxes: UK, Germany, France, Spain, Belgium, Italy, Netherlands, Switzerland, Malaysia, Thailand, Singapore, Hong Kong, Portugal and Austria. | ||||||||||||||||||||||||
-4 | The effective tax rate is calculated by dividing income tax expense (benefit) by earnings before income taxes. | ||||||||||||||||||||||||
Summary of Earnings before Income Taxes | Income taxes differ from the statutory tax rates as applied to earnings before income taxes as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Expected income tax expense | $ | 66,981 | $ | 28,775 | $ | 3,666 | |||||||||||||||||||
State income tax, net of federal benefit | 1,032 | 255 | 1,406 | ||||||||||||||||||||||
Rate differential on foreign income | (27,364 | ) | (11,897 | ) | (8,752 | ) | |||||||||||||||||||
Change in unrecognized tax benefits | (2,717 | ) | 740 | (149 | ) | ||||||||||||||||||||
Non-deductible expenses | 288 | (150 | ) | 194 | |||||||||||||||||||||
Prior year R&D credit claims | — | (493 | ) | — | |||||||||||||||||||||
Other | 3,333 | (1,187 | ) | 79 | |||||||||||||||||||||
Change in valuation allowance | (2,369 | ) | 5,304 | 3,517 | |||||||||||||||||||||
Total provision (benefit) for income taxes | $ | 39,184 | $ | 21,347 | $ | (39 | ) | ||||||||||||||||||
Effective tax rate | 20.5 | % | 26 | % | (0.4 | )% | |||||||||||||||||||
Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are presented below (in thousands): | ||||||||||||||||||||||||
DEFERRED TAX ASSETS: | 2014 | 2013 | |||||||||||||||||||||||
Deferred tax assets – current: | |||||||||||||||||||||||||
Inventory adjustments | $ | 4,942 | $ | 5,075 | |||||||||||||||||||||
Accrued expenses | 15,103 | 17,084 | |||||||||||||||||||||||
Allowances for bad debts and chargebacks | 6,407 | 6,179 | |||||||||||||||||||||||
Total current assets | 26,452 | 28,338 | |||||||||||||||||||||||
Deferred tax assets – long term: | |||||||||||||||||||||||||
Loss carryforwards | 23,247 | 43,711 | |||||||||||||||||||||||
Business credit carryforward | 4,042 | 9,763 | |||||||||||||||||||||||
Share-based compensation | 2,282 | 279 | |||||||||||||||||||||||
Valuation allowance | (17,534 | ) | (19,903 | ) | |||||||||||||||||||||
Total long term assets | 12,037 | 33,850 | |||||||||||||||||||||||
Total deferred tax assets | 38,489 | 62,188 | |||||||||||||||||||||||
Deferred tax liabilities – current: | |||||||||||||||||||||||||
Prepaid expenses | 7,588 | 6,223 | |||||||||||||||||||||||
Deferred tax liabilities – long term: | |||||||||||||||||||||||||
Depreciation on property, plant and equipment | 22,050 | 24,703 | |||||||||||||||||||||||
Total deferred tax liabilities | 29,638 | 30,926 | |||||||||||||||||||||||
Net deferred tax assets | $ | 8,851 | $ | 31,262 | |||||||||||||||||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Beginning balance | $ | 10,816 | $ | 10,221 | |||||||||||||||||||||
Additions for current year tax positions | 773 | 696 | |||||||||||||||||||||||
Additions for prior year tax positions | — | 164 | |||||||||||||||||||||||
Reductions for prior year tax positions | (2,227 | ) | (5 | ) | |||||||||||||||||||||
Settlement of uncertain tax positions | — | — | |||||||||||||||||||||||
Reductions related to lapse of statute of limitations | (1,426 | ) | (260 | ) | |||||||||||||||||||||
Ending balance | $ | 7,936 | $ | 10,816 | |||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future Minimum Lease Payments under Noncancellable Leases | Future minimum lease payments under noncancellable leases at December 31, 2014 are as follows (in thousands): | ||||
OPERATING | |||||
LEASES | |||||
Year ending December 31: | |||||
2015 | $ | 142,695 | |||
2016 | 135,195 | ||||
2017 | 120,204 | ||||
2018 | 110,608 | ||||
2019 | 99,389 | ||||
Thereafter | 461,356 | ||||
$ | 1,069,447 | ||||
Noncontrolling_Interests_Table
Noncontrolling Interests (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Carrying Amounts and Classification of Assets and Liabilities for VIEs | The following VIE’s are consolidated into the Company’s consolidated financial statements and the carrying amounts and classification of assets and liabilities were as follows (in thousands): | ||||||||
HF Logistics-SKX, LLC | December 31, 2014 | December 31, 2013 | |||||||
Current assets | $ | 6,812 | $ | 3,076 | |||||
Noncurrent assets | 118,837 | 129,796 | |||||||
Total assets | $ | 125,649 | $ | 132,872 | |||||
Current liabilities | $ | 78,668 | $ | 1,835 | |||||
Noncurrent liabilities | 1,194 | 79,389 | |||||||
Total liabilities | $ | 79,862 | $ | 81,224 | |||||
Distribution joint ventures (1) | December 31, 2014 | December 31, 2013 | |||||||
Current assets | $ | 94,819 | $ | 49,835 | |||||
Noncurrent assets | 10,322 | 9,209 | |||||||
Total assets | $ | 105,141 | $ | 59,044 | |||||
Current liabilities | $ | 38,470 | $ | 15,687 | |||||
Noncurrent liabilities | 66 | 32 | |||||||
Total liabilities | $ | 38,536 | $ | 15,719 | |||||
-1 | Distribution joint ventures include Skechers China Limited, Skechers Southeast Asia Limited, Skechers Thailand Limited, Skechers South Asia Private Limited, and Skechers Retail India Private Limited. |
Stock_Compensation_Tables
Stock Compensation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock Options Granted Pursuant to Equity Incentive Plans | Stock options granted pursuant to the 1998 Stock Option, Deferred Stock and Restricted Stock Plan and the 2007 Incentive Award Plan (the “Equity Incentive Plans”) were as follows: | ||||||||
SHARES | WEIGHTED AVERAGE | ||||||||
OPTION EXERCISE | |||||||||
PRICE | |||||||||
Outstanding at December 31, 2011 | 206,400 | $ | 7.62 | ||||||
Granted | — | — | |||||||
Exercised | (149,489 | ) | 7.03 | ||||||
Cancelled | (4,215 | ) | 6.95 | ||||||
Outstanding at December 31, 2012 | 52,696 | 9.34 | |||||||
Granted | — | — | |||||||
Exercised | (37,696 | ) | 8.83 | ||||||
Cancelled | — | — | |||||||
Outstanding at December 31, 2013 | 15,000 | 10.6 | |||||||
Granted | — | — | |||||||
Exercised | — | — | |||||||
Cancelled | (15,000 | ) | 10.6 | ||||||
Outstanding at December 31, 2014 | 0 | $ | 0 | ||||||
Summary of Nonvested Shares Related to Equity Incentive Plans | A summary of the status and changes of nonvested shares related to the Equity Incentive Plans as of and for the period ended December 31, 2014 is presented below: | ||||||||
SHARES | WEIGHTED AVERAGE | ||||||||
GRANT-DATE FAIR | |||||||||
VALUE | |||||||||
Nonvested at December 31, 2011 | 740,493 | $ | 19.02 | ||||||
Granted | 281,000 | 17.58 | |||||||
Vested/Released | (704,160 | ) | 18.58 | ||||||
Cancelled | (33,000 | ) | 27.6 | ||||||
Nonvested at December 31, 2012 | 284,333 | 17.69 | |||||||
Granted | 67,500 | 27.7 | |||||||
Vested/Released | (75,667 | ) | 18.03 | ||||||
Cancelled | — | — | |||||||
Nonvested at December 31, 2013 | 276,166 | 20.05 | |||||||
Granted | 1,092,500 | 47.02 | |||||||
Vested/Released | (97,333 | ) | 19.98 | ||||||
Cancelled | (7,500 | ) | 18.75 | ||||||
Nonvested at December 31, 2014 | 1,263,833 | $ | 43.38 | ||||||
Business_and_Credit_Concentrat1
Business and Credit Concentrations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||
Company's Top Five Manufacturers Produced | The Company’s top five manufacturers produced the following for the years ended December 31, 2014, 2013 and 2012, respectively: | ||||||||||||
Percentage of total production | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Manufacturer #1 | 37.5 | % | 37.8 | % | 33.5 | % | |||||||
Manufacturer #2 | 6.1 | % | 7.1 | % | 9.2 | % | |||||||
Manufacturer #3 | 5.7 | % | 6.1 | % | 6.7 | % | |||||||
Manufacturer #4 | 4.9 | % | 4.8 | % | 6.6 | % | |||||||
Manufacturer #5 | 4.7 | % | 4.1 | % | 5.6 | % | |||||||
58.9 | % | 59.9 | % | 61.6 | % | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting Information | Net sales, gross margins and identifiable assets for the domestic wholesale, international wholesale, retail, and the e-commerce segment on a combined basis were as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
Domestic wholesale | $ | 997,994 | $ | 802,163 | $ | 652,651 | |||||||
International wholesale | 689,195 | 478,799 | 432,163 | ||||||||||
Retail | 663,528 | 538,186 | 453,600 | ||||||||||
E-commerce | 26,844 | 27,213 | 21,907 | ||||||||||
Total | $ | 2,377,561 | $ | 1,846,361 | $ | 1,560,321 | |||||||
2014 | 2013 | 2012 | |||||||||||
Gross profit | |||||||||||||
Domestic wholesale | $ | 367,980 | $ | 288,818 | $ | 242,931 | |||||||
International wholesale | 292,722 | 198,853 | 166,454 | ||||||||||
Retail | 398,613 | 319,036 | 264,010 | ||||||||||
E-commerce | 12,590 | 12,085 | 9,931 | ||||||||||
Total | $ | 1,071,905 | $ | 818,792 | $ | 683,326 | |||||||
2014 | 2013 | ||||||||||||
Identifiable assets | |||||||||||||
Domestic wholesale | $ | 979,582 | $ | 865,071 | |||||||||
International wholesale | 510,063 | 374,738 | |||||||||||
Retail | 185,041 | 168,532 | |||||||||||
E-commerce | 232 | 229 | |||||||||||
Total | $ | 1,674,918 | $ | 1,408,570 | |||||||||
2014 | 2013 | 2012 | |||||||||||
Additions to property, plant and equipment | |||||||||||||
Domestic wholesale | $ | 9,655 | $ | 9,652 | $ | 33,488 | |||||||
International wholesale | 18,899 | 4,828 | 2,939 | ||||||||||
Retail | 28,351 | 26,814 | 16,025 | ||||||||||
Total | $ | 56,905 | $ | 41,294 | $ | 52,452 | |||||||
Geographic Information | The following summarizes the Company’s operations in different geographic areas as of and for the years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Sales (1) | |||||||||||||
United States | $ | 1,558,226 | $ | 1,288,302 | $ | 1,064,298 | |||||||
Canada | 85,139 | 63,665 | 49,460 | ||||||||||
Other international (2) | 734,196 | 494,394 | 446,563 | ||||||||||
Total | $ | 2,377,561 | $ | 1,846,361 | $ | 1,560,321 | |||||||
2014 | 2013 | ||||||||||||
Property, plant and equipment | |||||||||||||
United States | $ | 332,383 | $ | 337,727 | |||||||||
Canada | 7,203 | 5,079 | |||||||||||
Other international (2) | 33,597 | 18,949 | |||||||||||
Total | $ | 373,183 | $ | 361,755 | |||||||||
-1 | The Company has subsidiaries in Canada, the United Kingdom, Germany, France, Spain, Portugal, Italy, the Netherlands, Japan, Brazil and Chile that generate net sales within those respective countries and in some cases the neighboring regions. The Company has joint ventures in India, China, Hong Kong, Malaysia, Singapore and Thailand that generate net sales from those countries. The Company also has a subsidiary in Switzerland that generates net sales from that country in addition to net sales to distributors located in numerous non-European countries. Net sales are attributable to geographic regions based on the location of the Company subsidiary. | ||||||||||||
-2 | Other international consists of Switzerland, the United Kingdom, Germany, Austria, France, Spain, Portugal, Italy, the Netherlands, China, Hong Kong, Malaysia, Singapore, Thailand, Brazil, Chile, Vietnam, India and Japan. |
Summary_of_Quarterly_Financial1
Summary of Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of Unaudited Financial Data | Summarized unaudited financial data are as follows (in thousands): | ||||||||||||||||
2014 | MARCH 31 | JUNE 30 | SEPTEMBER 30 | DECEMBER 31 | |||||||||||||
Net sales | $ | 546,518 | $ | 587,051 | $ | 674,270 | $ | 569,722 | |||||||||
Gross profit | 240,403 | 269,375 | 304,498 | 257,629 | |||||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | 30,965 | 34,802 | 51,123 | 21,921 | |||||||||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.61 | $ | 0.69 | $ | 1.01 | $ | 0.43 | |||||||||
Diluted | 0.61 | 0.68 | 1 | 0.43 | |||||||||||||
2013 | MARCH 31 | JUNE 30 | SEPTEMBER 30 | DECEMBER 31 | |||||||||||||
Net sales | $ | 451,621 | $ | 428,247 | $ | 515,756 | $ | 450,737 | |||||||||
Gross profit | 192,732 | 194,894 | 230,521 | 200,645 | |||||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | 6,680 | 7,094 | 26,849 | 14,165 | |||||||||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.13 | $ | 0.14 | $ | 0.53 | $ | 0.28 | |||||||||
Diluted | 0.13 | 0.14 | 0.53 | 0.28 |
Recovered_Sheet1
The Company and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Impairment charges | $0 | $0 | $0 |
Amortization expense | 747,000 | 912,000 | 906,000 |
Impairment of intangible assets | 0 | 0 | 0 |
Amortization of deferred financing costs | 1,201,000 | 1,201,000 | 1,195,000 |
Options excluded from the computation of diluted earnings | 0 | 0 | 0 |
Advertising expense | 141,700,000 | 118,500,000 | 103,900,000 |
Prepaid advertising costs | 13,000,000 | 5,500,000 | |
Product design and development costs | 10,300,000 | 9,200,000 | 9,500,000 |
Warehouse and distribution costs | $134,800,000 | $122,900,000 | $119,300,000 |
Domestic [Member] | |||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating retail stores | 362 | ||
International [Member] | |||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating retail stores | 87 | ||
Minimum [Member] | |||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets useful life | 1 year | ||
Maximum [Member] | |||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets useful life | 10 years |
Recovered_Sheet2
The Company and Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Building improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Useful life or remaining lease term, whichever is shorter |
Recovered_Sheet3
The Company and Summary of Significant Accounting Policies - Schedule of Goodwill and Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intellectual property | $7,887 | $7,887 |
Goodwill | 1,575 | 1,575 |
Less accumulated amortization | -7,832 | -7,085 |
Total intangible assets | $1,630 | $2,377 |
The_Company_and_Summary_of_Sig3
The Company and Summary of Significant Accounting Policies - Reconciliation of Net Earnings and Weighted Average Common Shares Outstanding (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per share | |||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $21,921 | $51,123 | $34,802 | $30,965 | $14,165 | $26,849 | $7,094 | $6,680 | $138,811 | $54,788 | $9,512 |
Weighted average common shares outstanding | 50,613 | 50,363 | 49,495 | ||||||||
Basic earnings per share | $0.43 | $1.01 | $0.69 | $0.61 | $0.28 | $0.53 | $0.14 | $0.13 | $2.74 | $1.09 | $0.19 |
Diluted earnings per share | |||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $21,921 | $51,123 | $34,802 | $30,965 | $14,165 | $26,849 | $7,094 | $6,680 | $138,811 | $54,788 | $9,512 |
Weighted average common shares outstanding | 50,613 | 50,363 | 49,495 | ||||||||
Dilutive stock options | 413 | 200 | 447 | ||||||||
Weighted average common shares outstanding | 51,026 | 50,563 | 49,942 | ||||||||
Diluted earnings per share | $0.43 | $1 | $0.68 | $0.61 | $0.28 | $0.53 | $0.14 | $0.13 | $2.72 | $1.08 | $0.19 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Land | $61,163 | $59,113 |
Buildings and improvements | 177,348 | 176,987 |
Furniture, fixtures and equipment | 217,271 | 195,629 |
Leasehold improvements | 197,467 | 174,663 |
Total property, plant and equipment | 653,249 | 606,392 |
Less accumulated depreciation and amortization | 280,066 | 244,637 |
Property, plant and equipment, net | $373,183 | $361,755 |
Accrued_Expenses_Summary_of_Ac
Accrued Expenses - Summary of Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued inventory purchases | $22,553 | $15,514 |
Accrued payroll and taxes | 27,152 | 24,610 |
Accrued expenses | $49,705 | $40,124 |
Line_of_Credit_and_ShortTerm_B1
Line of Credit and Short-Term Borrowings - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2009 |
Amendments | Bank | ||
Line of Credit Facility [Line Items] | |||
Maximum amount of credit facility | $300 | $300 | $250 |
Number of syndicate banks in agreement | 6 | ||
Number of successive amendments to credit agreement | 4 | ||
Maturity date of amended credit agreement | 30-Jun-15 | ||
Line of credit, subsidiaries | 250 | ||
Line of credit facility, interest rate description | LIBOR | ||
Line of credit facility, interest rate | LIBOR plus 1.00% | ||
Interest rate of line of credit agreement | 1.00% | ||
Unused line of credit fee | 0.25% | 0.38% | |
Maximum limit for letters of credit | 50 | ||
Maximum excess availability for credit agreement | 40 | ||
Syndication and commitment fees | 6.7 | ||
Number of years for amortization of syndication and commitment fees | 6 years | ||
Line of credit facility, outstanding amount | $0.10 | $0.10 | |
Federal Funds Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, interest rate | Federal Funds Rate plus 0.5% | ||
Base Rate Loans [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate of line of credit agreement | 0.50% | ||
Base Rate Loans [Member] | Weighted Average [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate of line of credit agreement | 0.75% | ||
Base Rate Loans [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate of line of credit agreement | 1.00% | ||
LIBOR Loans [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate of line of credit agreement | 1.50% | ||
LIBOR Loans [Member] | Weighted Average [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate of line of credit agreement | 1.75% | ||
LIBOR Loans [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate of line of credit agreement | 2.00% |
LongTerm_Borrowings_LongTerm_B
Long-Term Borrowings - Long-Term Borrowings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $116,488 | $128,516 |
Less current installments | 101,407 | 12,028 |
Total long-term borrowings, excluding current installments | 15,081 | 116,488 |
Note payable to bank one [Member] | ||
Debt Instrument [Line Items] | ||
Note payable to bank | 77,900 | 78,908 |
Note payable to bank two [Member] | ||
Debt Instrument [Line Items] | ||
Note payable to bank | 19,159 | 23,573 |
Note payable to bank three [Member] | ||
Debt Instrument [Line Items] | ||
Note payable to bank | 17,940 | 24,265 |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Note payable to TCF Equipment Finance, Inc. | $1,489 | $1,770 |
LongTerm_Borrowings_LongTerm_B1
Long-Term Borrowings - Long-Term Borrowings (Parenthetical) (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Note payable to bank one [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | $346,600 |
Variable interest rate of note payable | 3.92% |
Balloon payment required under note payable | 77,060,000 |
Due date for note payable | 2015-10 |
Frequency of periodic payment | Monthly |
Note payable to bank two [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | 531,400 |
Fixed interest rate of note payable | 3.54% |
Balloon payment required under note payable | 12,635,000 |
Due date for note payable | 2015-12 |
Frequency of periodic payment | Monthly |
Note payable to bank three [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | 483,900 |
Fixed interest rate of note payable | 3.19% |
Balloon payment required under note payable | 11,670,000 |
Due date for note payable | 2016-06 |
Frequency of periodic payment | Monthly |
Notes Payable, Other Payables [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | $30,500 |
Fixed interest rate of note payable | 5.24% |
Due date for note payable | 2019-07 |
Frequency of periodic payment | Monthly |
LongTerm_Borrowings_Aggregate_
Long-Term Borrowings - Aggregate Maturities of Long-Term Borrowings (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $101,407 |
2016 | 14,198 |
2017 | 328 |
2018 | 345 |
2019 | 210 |
Thereafter | 0 |
Long-term borrowings | $116,488 |
LongTerm_Borrowings_Additional
Long-Term Borrowings - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||
Current installments of long-term borrowings | $101,407,000 | $12,028,000 |
Long-term borrowings | 15,081,000 | 116,488,000 |
Building Loan [Member] | ||
Debt Instrument [Line Items] | ||
Original maximum limit of borrowing under loan agreement | 55,000,000 | |
Construction loan original expiration date | 30-Apr-12 | |
Construction loan original extension date | 30-Nov-12 | |
Increase in borrowings under Loan | 80,000,000 | |
Repayment of outstanding borrowings | 54,700,000 | |
Repayment of loan including accrued interest | 18,300,000 | |
Payment of deferred management fees paid | 1,900,000 | |
Payment of distributions | 900,000 | |
Payment of loan fees and other closing costs | 800,000 | |
Maturity date of Loan | 31-Oct-15 | |
Outstanding limit of construction Loan Agreement | 77,900,000 | 78,900,000 |
Commitment fees | 600,000 | |
Maximum limit of Master Agreement for long-term debt | 80,000,000 | |
Term of Master Agreement for long-term debt | 60 months | |
Borrowing under Master Agreement for long-term debt | 39,300,000 | |
Borrowing limit under new agreement | 36,300,000 | |
Long-term debt | 37,100,000 | 47,800,000 |
Current installments of long-term borrowings | 23,200,000 | |
Long-term borrowings | 13,900,000 | |
Commitment fees | 800,000 | |
Number of years for amortization of commitment fees | 5 years | |
Building Loan [Member] | LIBOR Loans [Member] | ||
Debt Instrument [Line Items] | ||
LIBOR rate plus margin | 3.75% | |
Building Loan [Member] | Skechers RB, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Repayment of loan including accrued interest | 2,500,000 | |
Note payable to bank two [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding limit of construction Loan Agreement | 19,159,000 | 23,573,000 |
Fixed interest rate of note payable | 3.54% | |
Note payable to bank three [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding limit of construction Loan Agreement | $17,940,000 | $24,265,000 |
Fixed interest rate of note payable | 3.19% |
Income_Taxes_Provisions_for_In
Income Taxes - Provisions for Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal: | |||
Current | $7,677 | $632 | ($67) |
Deferred | 23,659 | 11,537 | -6,381 |
Total federal | 31,336 | 12,169 | -6,448 |
State: | |||
Current | 2,060 | 519 | 1,796 |
Deferred | 529 | 119 | -307 |
Total state | 2,589 | 638 | 1,489 |
Foreign: | |||
Current | 5,399 | 8,228 | 5,325 |
Deferred | -140 | 312 | -405 |
Total foreign | 5,259 | 8,540 | 4,920 |
Total income taxes (benefit) | $39,184 | $21,347 | ($39) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Income Taxes [Line Items] | ||||||||||||
U.S. federal and state statutory rate | 39.00% | |||||||||||
Income (loss) before income taxes | $191,380,000 | $82,215,000 | $10,473,000 | |||||||||
Income tax expense (benefit) | 39,184,000 | 21,347,000 | -39,000 | |||||||||
Effective tax rate | 20.50% | 26.00% | -0.40% | |||||||||
Income (loss) before income taxes | 21,921,000 | 51,123,000 | 34,802,000 | 30,965,000 | 14,165,000 | 26,849,000 | 7,094,000 | 6,680,000 | 138,811,000 | 54,788,000 | 9,512,000 | |
Cash and cash equivalents | 466,685,000 | 372,011,000 | 466,685,000 | 372,011,000 | 325,826,000 | 351,144,000 | ||||||
Repatriation of earnings | 42,800,000 | |||||||||||
Cumulative total earnings | 318,200,000 | 226,000,000 | 318,200,000 | 226,000,000 | ||||||||
Net operating loss carry-forwards | 56,900,000 | 55,900,000 | 56,900,000 | 55,900,000 | ||||||||
Valuation allowance against deferred tax assets | 17,534,000 | 19,903,000 | 17,534,000 | 19,903,000 | ||||||||
Credit carry-forward expiration, description | These tax credit and net operating loss carry-forward amounts don't begin to expire until 2028 and 2021, respectively. | |||||||||||
Decrease in unrecognized tax benefits | -2,900,000 | |||||||||||
Unrecognized tax benefits recorded as reduction in income tax expense | 7,100,000 | 7,100,000 | ||||||||||
Interest and penalties | -200,000 | 100,000 | 200,000 | |||||||||
Accrued interest and penalties | 1,700,000 | 1,800,000 | 1,700,000 | 1,800,000 | ||||||||
Prior year unrecognized tax benefits by result of expiring statutes | 1,400,000 | |||||||||||
Reduction in prior period unrecognized tax benefits | 4,100,000 | |||||||||||
Non-U.S jurisdictions [Member] | ||||||||||||
Schedule Of Income Taxes [Line Items] | ||||||||||||
Income (loss) before income taxes | 108,600,000 | |||||||||||
Average income tax rate | 6.20% | |||||||||||
Income tax expense (benefit) | 6,700,000 | |||||||||||
Income (loss) before income taxes | 108,600,000 | |||||||||||
Income before income taxes relates to foreign losses | 13,000,000 | |||||||||||
Cash and cash equivalents | 193,200,000 | 193,200,000 | ||||||||||
Percentage of cash and cash equivalents | 41.40% | |||||||||||
U.S Jurisdictions [Member] | ||||||||||||
Schedule Of Income Taxes [Line Items] | ||||||||||||
Income (loss) before income taxes | 82,800,000 | |||||||||||
Average income tax rate | 39.30% | |||||||||||
Income tax expense (benefit) | 32,500,000 | |||||||||||
Jersey [Member] | ||||||||||||
Schedule Of Income Taxes [Line Items] | ||||||||||||
Income (loss) before income taxes | 77,600,000 | |||||||||||
Other jurisdictions [Member] | ||||||||||||
Schedule Of Income Taxes [Line Items] | ||||||||||||
Income (loss) before income taxes | 21,997,000 | 14,142,000 | 16,369,000 | |||||||||
Income tax expense (benefit) | 3,795,000 | 3,787,000 | 3,921,000 | |||||||||
Consolidated earnings (loss) before taxes, percent | 5.00% | |||||||||||
Federal [Member] | ||||||||||||
Schedule Of Income Taxes [Line Items] | ||||||||||||
Net operating loss carry-forwards | 0 | 47,700,000 | 0 | 47,700,000 | ||||||||
Tax credits due to operating loss carried back | 7,800,000 | |||||||||||
Domestic [Member] | ||||||||||||
Schedule Of Income Taxes [Line Items] | ||||||||||||
Income (loss) before income taxes | 82,778,000 | 38,705,000 | -27,379,000 | |||||||||
Income tax expense (benefit) | 32,500,000 | 12,807,000 | -5,867,000 | |||||||||
Valuation allowance against deferred tax assets | 0 | 0 | 0 | 0 | ||||||||
State [Member] | ||||||||||||
Schedule Of Income Taxes [Line Items] | ||||||||||||
Net operating loss carry-forwards | 65,600,000 | 109,200,000 | 65,600,000 | 109,200,000 | ||||||||
Tax credits due to operating loss carried back | 7,200,000 | 6,000,000 | ||||||||||
Valuation allowance against deferred tax assets | $0 | $0 | $0 | $0 | ||||||||
Minimum [Member] | Non-U.S jurisdictions [Member] | ||||||||||||
Schedule Of Income Taxes [Line Items] | ||||||||||||
Statutory federal rate | 0.00% | |||||||||||
Maximum [Member] | Non-U.S jurisdictions [Member] | ||||||||||||
Schedule Of Income Taxes [Line Items] | ||||||||||||
Statutory federal rate | 34.00% |
Income_Taxes_Schedule_of_Earni
Income Taxes - Schedule of Earnings (Loss) before Income Taxes and Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | $191,380 | $82,215 | $10,473 |
Income tax expense (benefit) | 39,184 | 21,347 | -39 |
Effective tax rate | 20.50% | 26.00% | -0.40% |
Domestic [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 82,778 | 38,705 | -27,379 |
Income tax expense (benefit) | 32,500 | 12,807 | -5,867 |
Canada [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 6,241 | 4,091 | 2,564 |
Income tax expense (benefit) | 1,572 | 1,187 | 545 |
Chile [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 629 | 9,622 | 5,971 |
Income tax expense (benefit) | 138 | 1,920 | 1,043 |
Peoples Republic of China [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 15,201 | 6,148 | 1,278 |
Income tax expense (benefit) | 1,179 | 1,646 | 319 |
Jersey [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 77,555 | 25,348 | 25,162 |
Non-benefited loss operations [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | -13,021 | -15,841 | -13,492 |
Other jurisdictions [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 21,997 | 14,142 | 16,369 |
Income tax expense (benefit) | $3,795 | $3,787 | $3,921 |
Income_Taxes_Schedule_of_Earni1
Income Taxes - Schedule of Earnings (Loss) before Income Taxes and Income Tax Expense (Benefit) (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Individual foreign jurisdiction income threshold | 5.00% |
Income_Taxes_Summary_of_Earnin
Income Taxes - Summary of Earnings before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Expected income tax expense | $66,981 | $28,775 | $3,666 |
State income tax, net of federal benefit | 1,032 | 255 | 1,406 |
Rate differential on foreign income | -27,364 | -11,897 | -8,752 |
Change in unrecognized tax benefits | -2,717 | 740 | -149 |
Non-deductible expenses | 288 | -150 | 194 |
Prior year R&D credit claims | -493 | ||
Other | 3,333 | -1,187 | 79 |
Change in valuation allowance | -2,369 | 5,304 | 3,517 |
Total income taxes (benefit) | $39,184 | $21,347 | ($39) |
Effective tax rate | 20.50% | 26.00% | -0.40% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets - current: | ||
Inventory adjustments | $4,942 | $5,075 |
Accrued expenses | 15,103 | 17,084 |
Allowances for bad debts and chargebacks | 6,407 | 6,179 |
Total current assets | 26,452 | 28,338 |
Deferred tax assets - long term: | ||
Loss carryforwards | 23,247 | 43,711 |
Business credit carryforward | 4,042 | 9,763 |
Share-based compensation | 2,282 | 279 |
Valuation allowance | -17,534 | -19,903 |
Total long term assets | 12,037 | 33,850 |
Total deferred tax assets | 38,489 | 62,188 |
Deferred tax liabilities - current: | ||
Prepaid expenses | 7,588 | 6,223 |
Deferred tax liabilities - long term: | ||
Depreciation on property, plant and equipment | 22,050 | 24,703 |
Total deferred tax liabilities | 29,638 | 30,926 |
Net deferred tax assets | $8,851 | $31,262 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $10,816 | $10,221 |
Additions for current year tax positions | 773 | 696 |
Additions for prior year tax positions | 164 | |
Reductions for prior year tax positions | -2,227 | -5 |
Settlement of uncertain tax positions | 0 | 0 |
Reductions related to lapse of statute of limitations | -1,426 | -260 |
Ending balance | $7,936 | $10,816 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expenses | $107 | $94 | $88.70 |
Minimum percentage of interest-bearing open purchase arrangements | 0.00% | ||
Maximum percentage of interest-bearing open purchase arrangements | 0.50% | ||
Minimum financing days of interest- bearing open purchase arrangements | 30 days | ||
Maximum financing days of interest- bearing open purchase arrangements | 60 days | ||
Amounts outstanding under interest- bearing open purchase arrangements | 171.4 | 69.1 | |
Interest expense under interest- bearing open purchase arrangements | 5.1 | 3.9 | 3.8 |
Open purchase commitments | $558.70 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments under Noncancellable Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015, Operating Leases | $142,695 |
2016, Operating Leases | 135,195 |
2017, Operating Leases | 120,204 |
2018, Operating Leases | 110,608 |
2019, Operating Leases | 99,389 |
Thereafter, Operating leases | 461,356 |
Total, Operating leases | $1,069,447 |
Noncontrolling_Interests_Carry
Noncontrolling Interests - Carrying Amounts and Classification of Assets and Liabilities for VIEs (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Current assets | $1,285,014 | $1,014,928 |
Noncurrent assets | 389,904 | 393,642 |
Total assets | 1,674,918 | 1,408,570 |
Current liabilities | 505,737 | 310,422 |
Noncurrent liabilities | 35,074 | 118,228 |
Total liabilities | 540,811 | 428,650 |
Variable interest entity, primary beneficiary [Member] | HF Logistics-SKX, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 6,812 | 3,076 |
Noncurrent assets | 118,837 | 129,796 |
Total assets | 125,649 | 132,872 |
Current liabilities | 78,668 | 1,835 |
Noncurrent liabilities | 1,194 | 79,389 |
Total liabilities | 79,862 | 81,224 |
Variable interest entity, primary beneficiary [Member] | Distribution joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 94,819 | 49,835 |
Noncurrent assets | 10,322 | 9,209 |
Total assets | 105,141 | 59,044 |
Current liabilities | 38,470 | 15,687 |
Noncurrent liabilities | 66 | 32 |
Total liabilities | $38,536 | $15,719 |
NonControlling_Interests_Addit
Non-Controlling Interests - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entity [Line Items] | |||
Net earnings attributable to non-controlling interests | $13,385 | $6,080 | $1,000 |
Capital distributions to non-controlling interest | 4,050 | 3,175 | 1,602 |
Capital contributions from non-controlling interest | 503 | 3,635 | 3,501 |
Other Distribution Joint Ventures [Member] | |||
Variable Interest Entity [Line Items] | |||
Net earnings attributable to non-controlling interests | 13,400 | 6,100 | 1,000 |
Capital contributions from non-controlling interest | 500 | 3,600 | 3,500 |
HF Logistics-SKX, LLC [Member] | |||
Variable Interest Entity [Line Items] | |||
Capital distributions to non-controlling interest | 3,700 | 3,200 | |
Skechers China Limited [Member] | |||
Variable Interest Entity [Line Items] | |||
Capital distributions to non-controlling interest | $400 |
Stock_Compensation_Additional_
Stock Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 16, 2007 | 31-May-03 | Jun. 30, 2001 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period stock option awards | 3 years | |||||
Expiration period of stock option awards | 10 years | |||||
Number of shares reserved for issuance | 7,500,000 | |||||
Intrinsic value of options exercised | $900,000 | $1,900,000 | ||||
Stock options granted | 0 | 0 | 0 | |||
Number of options exercised | 0 | 37,696 | 149,489 | |||
Unrecognized compensation cost related to stock option | 0 | 0 | ||||
Number of shares remain available for grant | 3,716,381 | |||||
Recognized compensation expense | 8,700,000 | 2,400,000 | 11,500,000 | |||
Income tax benefits (expense) | 1,400,000 | 500,000 | 500,000 | |||
Unrecognized compensation cost related to nonvested common shares | 48,700,000 | 5,000,000 | ||||
Weighted average period for recognition of cost | 3 years | 2 years 8 months 12 days | ||||
Total fair value of shares vested | 1,900,000 | 1,400,000 | ||||
Maximum percentage of employee's compensation to purchase common stock | 15.00% | |||||
Percentage of price of common stock purchased | 85.00% | |||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 102,153 | 149,257 | 186,199 | |||
Proceeds from issuance of common stock under the employee stock purchase plan | $3,400,000 | $2,600,000 | $2,400,000 | |||
Employee Stock Purchase Plan 1998 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares reserved for issuance | 3,000,000 | |||||
Class A Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for issuance | 11,215,154 | 8,215,154 | ||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 102,000 | 149,000 | 186,000 |
Stock_Compensation_Stock_Optio
Stock Compensation - Stock Options Granted Pursuant to Equity Incentive Plans (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding, Shares, Beginning of Period | 15,000 | 52,696 | 206,400 |
Granted, Shares | 0 | 0 | 0 |
Exercised, Shares | 0 | -37,696 | -149,489 |
Cancelled, Shares | -15,000 | -4,215 | |
Outstanding, Shares, End of Period | 0 | 15,000 | 52,696 |
Outstanding, Weighted Average Option Exercise Price, Beginning of Period | $10.60 | $9.34 | $7.62 |
Granted, Weighted Average Option Exercise Price | $0 | $0 | $0 |
Exercised, Weighted Average Option Exercise Price | $8.83 | $7.03 | |
Cancelled, Weighted Average Option Exercise Price | $10.60 | $6.95 | |
Outstanding, Weighted Average Option Exercise Price, End of Period | $0 | $10.60 | $9.34 |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Nonvested Shares Related to Equity Incentive Plans (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Nonvested, Shares, Beginning of Period | 276,166 | 284,333 | 740,493 |
Granted, Shares | 1,092,500 | 67,500 | 281,000 |
Vested/Released, Shares | -97,333 | -75,667 | -704,160 |
Cancelled, Shares | -7,500 | -33,000 | |
Nonvested, Shares, End of Period | 1,263,833 | 276,166 | 284,333 |
Nonvested, Weighted Average Grant-Date Fair Value, Beginning of Period | $20.05 | $17.69 | $19.02 |
Granted, Weighted Average Grant-Date Fair Value | $47.02 | $27.70 | $17.58 |
Vested/Released, Weighted Average Grant-Date Fair Value | $19.98 | $18.03 | $18.58 |
Cancelled, Weighted Average Grant-Date Fair Value | $18.75 | $27.60 | |
Nonvested, Weighted Average Grant-Date Fair Value, End of Period | $43.38 | $20.05 | $17.69 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, par value | $0.00 | $0.00 | |
Voting rights | Class A Common Stock entitled to one vote per share while holders of Class B Common Stock are entitled to ten votes per share on all matters submitted to a vote of stockholders. | ||
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock, par value | $0.00 | $0.00 | |
Class B Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, shares authorized | 60,000,000 | 60,000,000 | |
Common Stock, par value | $0.00 | $0.00 | |
Certain Class B stockholders converted into Class A | 399,776 | 404,396 | 22,880 |
Business_and_Credit_Concentrat2
Business and Credit Concentrations - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Concentration Risk [Line Items] | |||
Credit losses charged to expense | $11.80 | $2.60 | $1.50 |
Sales return and allowance expense (recoveries) | 2.3 | 0.2 | -0.4 |
Net assets held outside the United States | 548.9 | 413.2 | |
Net Sales [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers accounting for more than 10% | 0 | 0 | 0 |
Number of largest customers | 5 | 5 | 5 |
Percentage of net sales to largest customers | 15.70% | 18.10% | 18.10% |
Net Trade Receivable [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers accounting for more than 10% | 0 | 0 | |
Domestic [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | 166.9 | 138.4 | |
Foreign [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | 126.2 | 103.5 | |
International net sales | $819.30 | $558.10 | $496 |
Business_and_Credit_Concentrat3
Business and Credit Concentrations - Company's Top Five Manufacturers Produced (Detail) (Cost of Goods, Total [Member], Supplier Concentration Risk [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration Risk [Line Items] | |||
Percentage of total production | 58.90% | 59.90% | 61.60% |
Manufacturer One [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 37.50% | 37.80% | 33.50% |
Manufacturer Two [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 6.10% | 7.10% | 9.20% |
Manufacturer Three [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 5.70% | 6.10% | 6.70% |
Manufacturer Four [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 4.90% | 4.80% | 6.60% |
Manufacturer Five [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 4.70% | 4.10% | 5.60% |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Maximum annual contributions per employee percent | 15.00% | ||
Minimum age for employees to be covered under profit sharing plan | 21 years | ||
Minimum service period for employees to be covered under profit sharing plan | 6 months | ||
Vesting period for company contributions to benefit plan | 6 years | ||
Employer contribution | $0 | $0 | $0 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment_Information_Segment_Re
Segment Information - Segment Reporting Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Identifiable assets | $1,674,918 | $1,408,570 | $1,674,918 | $1,408,570 | |||||||
Net sales, Total | 569,722 | 674,270 | 587,051 | 546,518 | 450,737 | 515,756 | 428,247 | 451,621 | 2,377,561 | 1,846,361 | 1,560,321 |
Gross profit | 257,629 | 304,498 | 269,375 | 240,403 | 200,645 | 230,521 | 194,894 | 192,732 | 1,071,905 | 818,792 | 683,326 |
Additions to property, plant and equipment | 56,905 | 41,294 | 52,452 | ||||||||
Domestic wholesale [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Identifiable assets | 979,582 | 865,071 | 979,582 | 865,071 | |||||||
Net sales, Total | 997,994 | 802,163 | 652,651 | ||||||||
Gross profit | 367,980 | 288,818 | 242,931 | ||||||||
Additions to property, plant and equipment | 9,655 | 9,652 | 33,488 | ||||||||
International wholesale [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Identifiable assets | 510,063 | 374,738 | 510,063 | 374,738 | |||||||
Net sales, Total | 689,195 | 478,799 | 432,163 | ||||||||
Gross profit | 292,722 | 198,853 | 166,454 | ||||||||
Additions to property, plant and equipment | 18,899 | 4,828 | 2,939 | ||||||||
Retail [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Identifiable assets | 185,041 | 168,532 | 185,041 | 168,532 | |||||||
Net sales, Total | 663,528 | 538,186 | 453,600 | ||||||||
Gross profit | 398,613 | 319,036 | 264,010 | ||||||||
Additions to property, plant and equipment | 28,351 | 26,814 | 16,025 | ||||||||
E-commerce [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Identifiable assets | 232 | 229 | 232 | 229 | |||||||
Net sales, Total | 26,844 | 27,213 | 21,907 | ||||||||
Gross profit | $12,590 | $12,085 | $9,931 |
Segment_Information_Geographic
Segment Information - Geographic Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, plant and equipment | |||||||||||
Property and equipment | $373,183 | $361,755 | $373,183 | $361,755 | |||||||
Net sales | |||||||||||
Net sales, Total | 569,722 | 674,270 | 587,051 | 546,518 | 450,737 | 515,756 | 428,247 | 451,621 | 2,377,561 | 1,846,361 | 1,560,321 |
Domestic [Member] | |||||||||||
Property, plant and equipment | |||||||||||
Property and equipment | 332,383 | 337,727 | 332,383 | 337,727 | |||||||
Net sales | |||||||||||
Net sales, Total | 1,558,226 | 1,288,302 | 1,064,298 | ||||||||
Canada [Member] | |||||||||||
Property, plant and equipment | |||||||||||
Property and equipment | 7,203 | 5,079 | 7,203 | 5,079 | |||||||
Net sales | |||||||||||
Net sales, Total | 85,139 | 63,665 | 49,460 | ||||||||
Other international [Member] | |||||||||||
Property, plant and equipment | |||||||||||
Property and equipment | 33,597 | 18,949 | 33,597 | 18,949 | |||||||
Net sales | |||||||||||
Net sales, Total | $734,196 | $494,394 | $446,563 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Contribution to Skechers Foundation for various charitable purposes | $0 | $1,100,000 | $1,000,000 |
Management [Member] | |||
Related Party Transaction [Line Items] | |||
Company paid to Manhattan Inn Operating Company, LLC (MIOC) | 160,000 | 178,000 | 162,000 |
Ownership owned by President and director of the Company | 12.00% | ||
Percentage of interest owned by other officers | 5.00% | ||
Outstanding accounts receivable with MIOC or the Shade Hotel | 0 | ||
Outstanding accounts payable with MIOC or the Shade Hotel | 0 | ||
Advances receivables from officers and employees | 600,000 | 400,000 | |
Other significant transactions with or payables to officers, directors or significant shareholders of the company | $0 |
Summary_of_Quarterly_Financial2
Summary of Quarterly Financial Information - Summary of Unaudited Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||||||||||
Net sales | $569,722 | $674,270 | $587,051 | $546,518 | $450,737 | $515,756 | $428,247 | $451,621 | $2,377,561 | $1,846,361 | $1,560,321 |
Gross profit | 257,629 | 304,498 | 269,375 | 240,403 | 200,645 | 230,521 | 194,894 | 192,732 | 1,071,905 | 818,792 | 683,326 |
Net earnings attributable to Skechers U.S.A., Inc. | $21,921 | $51,123 | $34,802 | $30,965 | $14,165 | $26,849 | $7,094 | $6,680 | $138,811 | $54,788 | $9,512 |
Net earnings per share: | |||||||||||
Net earnings per share, Basic | $0.43 | $1.01 | $0.69 | $0.61 | $0.28 | $0.53 | $0.14 | $0.13 | $2.74 | $1.09 | $0.19 |
Net earnings per share, Diluted | $0.43 | $1 | $0.68 | $0.61 | $0.28 | $0.53 | $0.14 | $0.13 | $2.72 | $1.08 | $0.19 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for chargebacks [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF PERIOD | $2,490 | $2,801 | $2,340 |
CHARGED TO REVENUE COSTS AND EXPENSES | 5,530 | 1,514 | 1,357 |
DEDUCTIONS AND WRITE-OFFS | -1,469 | -1,825 | -896 |
BALANCE AT END OF PERIOD | 6,551 | 2,490 | 2,801 |
Allowance for doubtful accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF PERIOD | 5,980 | 7,167 | 10,331 |
CHARGED TO REVENUE COSTS AND EXPENSES | 6,284 | 1,105 | 186 |
DEDUCTIONS AND WRITE-OFFS | -6,823 | -2,292 | -3,350 |
BALANCE AT END OF PERIOD | 5,441 | 5,980 | 7,167 |
Reserve for sales returns and allowances allowances [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF PERIOD | 7,456 | 6,954 | 7,752 |
CHARGED TO REVENUE COSTS AND EXPENSES | 2,339 | 249 | -431 |
DEDUCTIONS AND WRITE-OFFS | -780 | 253 | -367 |
BALANCE AT END OF PERIOD | 9,015 | 7,456 | 6,954 |
Reserve for shrinkage [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF PERIOD | 266 | 300 | 300 |
CHARGED TO REVENUE COSTS AND EXPENSES | 1,292 | 1,166 | 1,300 |
DEDUCTIONS AND WRITE-OFFS | -1,220 | -1,200 | -1,300 |
BALANCE AT END OF PERIOD | 338 | 266 | 300 |
Reserve for obsolescence [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF PERIOD | 3,485 | 8,849 | 11,959 |
CHARGED TO REVENUE COSTS AND EXPENSES | 5,656 | 1,333 | 931 |
DEDUCTIONS AND WRITE-OFFS | -6,140 | -6,697 | -4,041 |
BALANCE AT END OF PERIOD | $3,001 | $3,485 | $8,849 |