Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 01, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SKX | |
Entity Registrant Name | SKECHERS USA INC | |
Entity Central Index Key | 1,065,837 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 42,686,958 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,395,486 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 513,902 | $ 466,685 |
Trade accounts receivable, less allowances of $23,313 in 2015 and $21,007 in 2014 | 434,191 | 272,103 |
Other receivables | 15,314 | 16,510 |
Total receivables | 449,505 | 288,613 |
Inventories | 470,640 | 453,837 |
Prepaid expenses and other current assets | 51,633 | 57,015 |
Deferred tax assets | 18,866 | 18,864 |
Total current assets | 1,504,546 | 1,285,014 |
Property, plant and equipment, net | 381,853 | 373,183 |
Other assets | 26,126 | 16,721 |
Total non-current assets | 407,979 | 389,904 |
TOTAL ASSETS | 1,912,525 | 1,674,918 |
Current Liabilities: | ||
Current installments of long-term borrowings | 109,290 | 101,407 |
Short-term borrowings | 1,340 | 1,810 |
Accounts payable | 430,422 | 352,815 |
Accrued expenses | 53,626 | 49,705 |
Total current liabilities | 594,678 | 505,737 |
Long-term borrowings, excluding current installments | 1,592 | 15,081 |
Other long-term liabilities | 24,400 | 19,993 |
Total non-current liabilities | 25,992 | 35,074 |
Total liabilities | $ 620,670 | $ 540,811 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred Stock, $.001 par value; 10,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | $ 369,404 | $ 355,636 |
Accumulated other comprehensive loss | (18,747) | (16,077) |
Retained earnings | 871,502 | 735,640 |
Skechers U.S.A., Inc. equity | 1,222,210 | 1,075,249 |
Noncontrolling interests | 69,645 | 58,858 |
Total equity | 1,291,855 | 1,134,107 |
TOTAL LIABILITIES AND EQUITY | 1,912,525 | 1,674,918 |
Class A Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | 42 | 40 |
Class B Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | $ 9 | $ 10 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Trade accounts receivable, allowances | $ 23,313 | $ 21,007 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 41,563,000 | 40,287,000 |
Common Stock, shares outstanding | 41,563,000 | 40,287,000 |
Class B Common Stock [Member] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common Stock, shares issued | 9,395,000 | 10,470,000 |
Common Stock, shares outstanding | 9,395,000 | 10,470,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 800,464 | $ 587,051 | $ 1,568,461 | $ 1,133,569 |
Cost of sales | 425,856 | 317,676 | 861,313 | 623,791 |
Gross profit | 374,608 | 269,375 | 707,148 | 509,778 |
Royalty income | 3,630 | 1,836 | 5,512 | 4,858 |
Operating income | 378,238 | 271,211 | 712,660 | 514,636 |
Operating expenses: | ||||
Selling | 64,875 | 53,839 | 113,967 | 90,581 |
General and administrative | 201,021 | 163,616 | 398,162 | 322,139 |
Operating expenses | 265,896 | 217,455 | 512,129 | 412,720 |
Earnings from operations | 112,342 | 53,756 | 200,531 | 101,916 |
Other income (expense): | ||||
Interest income | 157 | 197 | 344 | 300 |
Interest expense | (3,041) | (3,656) | (5,878) | (6,352) |
Other, net | 2,990 | 148 | (1,771) | (934) |
Total other income (expense) | 106 | (3,311) | (7,305) | (6,986) |
Earnings before income tax expense | 112,448 | 50,445 | 193,226 | 94,930 |
Income tax expense | 25,383 | 12,232 | 44,503 | 23,669 |
Net earnings | 87,065 | 38,213 | 148,723 | 71,261 |
Less: Net earnings attributable to non-controlling interests | 7,283 | 3,411 | 12,861 | 5,494 |
Net earnings attributable to Skechers U.S.A., Inc. | $ 79,782 | $ 34,802 | $ 135,862 | $ 65,767 |
Net earnings per share attributable to Skechers U.S.A., Inc.: | ||||
Basic | $ 1.57 | $ 0.69 | $ 2.67 | $ 1.30 |
Diluted | $ 1.55 | $ 0.68 | $ 2.65 | $ 1.29 |
Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc.: | ||||
Basic | 50,904 | 50,565 | 50,855 | 50,562 |
Diluted | 51,342 | 50,914 | 51,259 | 50,879 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 87,065 | $ 38,213 | $ 148,723 | $ 71,261 |
Other comprehensive gain (loss), net of tax: | ||||
Gain (loss) on foreign currency translation adjustment | 1,742 | 801 | (2,879) | 1,102 |
Comprehensive income | 88,807 | 39,014 | 145,844 | 72,363 |
Less: Comprehensive income attributable to non-controlling interests | 7,307 | 3,516 | 12,652 | 5,519 |
Comprehensive income attributable to Skechers U.S.A., Inc. | $ 81,500 | $ 35,498 | $ 133,192 | $ 66,844 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 148,723 | $ 71,261 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 27,676 | 22,886 |
Amortization of deferred financing costs | 601 | 601 |
Amortization of intangible assets | 16 | 467 |
Provision for bad debts and returns | 4,216 | 6,597 |
Tax benefits from share-based compensation | 10 | |
Non-cash share-based compensation | 8,874 | 2,920 |
Loss (gain) on disposal of property, plant and equipment | (20) | 244 |
Deferred income taxes | 2,215 | 20,162 |
(Increase) decrease in assets: | ||
Receivables | (166,970) | (95,196) |
Inventories | (19,209) | (3,249) |
Prepaid expenses and other current assets | 4,997 | (10,942) |
Other assets | (8,223) | (474) |
Increase in liabilities: | ||
Accounts payable | 75,679 | 53,985 |
Accrued expenses | 8,368 | 4,994 |
Net cash provided by operating activities | 86,943 | 74,266 |
Cash flows from investing activities: | ||
Capital expenditures | (33,004) | (23,927) |
Intangible asset additions | (95) | |
Purchases of investments | (2,106) | |
Sales of investments | 105 | |
Net cash used in investing activities | (35,100) | (23,927) |
Cash flows from financing activities: | ||
Net proceeds from the issuances of stock through employee stock purchase plan | 2,238 | 1,721 |
Net payments on long-term debt | (5,599) | (5,967) |
Net proceeds (payments) on short-term borrowings | (487) | 97 |
Excess tax benefits from share-based compensation | 2,656 | |
Contribution from non-controlling interests of consolidated entity | 485 | 83 |
Distributions to non-controlling interests of consolidated entity | (2,350) | (1,975) |
Net cash used in financing activities | (3,057) | (6,041) |
Net increase in cash and cash equivalents | 48,786 | 44,298 |
Effect of exchange rates on cash and cash equivalents | (1,569) | (1,501) |
Cash and cash equivalents at beginning of the period | 466,685 | 372,011 |
Cash and cash equivalents at end of the period | 513,902 | 414,808 |
Cash paid during the period for: | ||
Interest | 4,947 | 5,735 |
Income taxes | $ 32,487 | $ 13,577 |
General
General | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
General | (1) GENERAL Basis of Presentation The accompanying condensed consolidated financial statements of Skechers U.S.A., Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S‑X. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial reporting. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The results of operations for the six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2015. Fair Value of Financial Instruments The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value because of the relatively short maturity of such instruments. The carrying amount of the Company’s long-term borrowings are considered Level 2 liabilities that approximates fair value based upon current rates and terms available to the Company for similar debt. Use of Estimates The preparation of the condensed consolidated financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. 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, and chargebacks. Allowances for estimated returns, discounts, 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. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) amended the FASB Accounting Standards Codification and created a new Topic ASC 606, “ Revenue from Contracts with Customers Revenue Recognition In August 2014, the FASB amended the FASB Accounting Standards Codification and amended Subtopic 205-40, “ Presentation of Financial Statements – Going Concern In February 2015, the FASB issued ASU 2015-02, “ Amendments to the Consolidation Analysis” In April 2015, the FASB issued ASU 2015-03, “ Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs |
Line of Credit, Short-Term and
Line of Credit, Short-Term and Long-Term Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Line of Credit, Short-Term and Long-Term Borrowings | (2) LINE OF CREDIT, SHORT-TERM AND LONG-TERM BORROWINGS The Company and its subsidiaries had $4.4 million and $3.4 million of outstanding letters of credit as of June 30, 2015 and December 31, 2014, respectively, and approximately $1.3 million and $1.8 million in short-term borrowings as of June 30, 2015 and December 31, 2014, respectively. Long-term borrowings at June 30, 2015 and December 31, 2014 are as follows (in thousands): 2015 2014 Note payable to banks, due in monthly installments of $338.0 (includes principal and interest), variable-rate interest at 3.94% per annum, secured by property, balloon payment of $77,060 due October 2015 $ 77,396 $ 77,900 Note payable to banks, 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 15,048 17,940 Note payable to banks, 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 16,544 19,159 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 1,344 1,489 Note payable to bank from Skechers Retail India Private Ltd. 550 — Subtotal 110,882 116,488 Less current installments 109,290 101,407 Total long-term borrowings $ 1,592 $ 15,081 On June 30, 2015, the Company entered into a $250.0 million loan and security agreement, subject to increase by up to $100 million, (the “Credit Agreement”), with the following lenders: Bank of America, N.A., MUFG Union Bank, N.A. and HSBC Bank USA, National Association. The Credit Agreement matures on June 30, 2020. The Credit Agreement replaces the credit agreement dated June 30, 2009, which expired on June 30, 2015. The Credit Agreement permits the Company and certain of its subsidiaries to borrow based on a percentage of eligible accounts receivable plus the sum of (a) the lesser of (i) a percentage of eligible inventory to be sold at wholesale and (ii) a percentage of net orderly liquidation value of eligible inventory to be sold at wholesale, plus (b) the lesser of (i) a percentage of the value of eligible inventory to be sold at retail and (ii) a percentage of net orderly liquidation value of eligible inventory to be sold at retail, plus (c) the lesser of (i) a percentage of the value of eligible in-transit inventory and (ii) a percentage of the net orderly liquidation value of eligible in-transit inventory. Borrowings bear interest at our election based on (a) LIBOR or (b) the greater of (i) the Prime Rate, (ii) the Federal Funds Rate plus 0.5% and (iii) LIBOR for a 30-day period plus 1.0%, in each case, plus an applicable margin based on the average daily principal balance of revolving loans available under the Credit Agreement. The Company pays a monthly unused line of credit fee of 0.25%, payable on the first day of each month in arrears, which is based on the average daily principal balance of outstanding revolving loans and undrawn amounts of letters of credit outstanding during such month. The Credit Agreement further provides for a limit on the issuance of letters of credit to a maximum of $100.0 million. The Credit Agreement contains customary affirmative and negative covenants for secured credit facilities of this type, including covenants that will limit the ability of the Company and its subsidiaries to, among other things, incur debt, grant liens, make certain acquisitions, dispose assets, effect a change of control of the Company, make certain restricted payments including certain dividends and stock redemptions, make certain investments or loans, enter into certain transactions with affiliates and certain prohibited uses of proceeds. The Credit Agreement also requires compliance with a minimum fixed-charge coverage ratio if Availability drops below 10% of the Revolver Commitments (as such terms are defined in the Credit Agreement) until the date when no event of default has existed and Availability has been over 10% for 30 consecutive days. The Company paid closing and arrangement fees of $1.1 million on this facility, which are being amortized to interest expense over the five-year life of the facility. As of June 30, 2015, there was $1.3 million outstanding under this credit facility, which is classified as short-term borrowings in our condensed consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | (3) STOCKHOLDERS’ EQUITY During the three months ended June 30, 2015, 818,910 shares of Class B common stock were converted into shares of Class A common stock. During the three months ended June 30, 2014, 289,480 shares of Class B common stock were converted into shares of Class A common stock. During the six months ended June 30, 2015, 1,074,432 shares of Class B common stock were converted into shares of Class A common stock. During the six months ended June 30, 2014, 299,776 shares of Class B common stock were converted into shares of Class A common stock. The following table reconciles equity attributable to noncontrolling interests (in thousands): Six Months Ended June 30, 2015 2014 Non-controlling interests, beginning of period $ 58,858 $ 49,598 Net earnings attributable to non-controlling interests 12,861 5,494 Foreign currency translation adjustment (209 ) 25 Capital contribution by non-controlling interests 485 83 Capital distribution to non-controlling interests (2,350 ) (1,975 ) Non-controlling interests, end of period $ 69,645 $ 53,225 |
Non-Controlling Interests
Non-Controlling Interests | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | (4) NON-CONTROLLING 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 VIEs 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 VIEs that 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 VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. 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 2015 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. The following VIEs are consolidated into the Company’s condensed consolidated financial statements and the carrying amounts and classification of assets and liabilities were as follows (in thousands): HF Logistics-SKX, LLC June 30, 2015 December 31, 2014 Current assets $ 7,908 $ 6,812 Noncurrent assets 116,214 118,837 Total assets $ 124,122 $ 125,649 Current liabilities $ 78,678 $ 78,668 Noncurrent liabilities 1,041 1,194 Total liabilities $ 79,719 $ 79,862 Distribution joint ventures (1) June 30, 2015 December 31, 2014 Current assets $ 117,333 $ 94,819 Noncurrent assets 13,001 10,322 Total assets $ 130,334 $ 105,141 Current liabilities $ 40,547 $ 38,470 Noncurrent liabilities 616 66 Total liabilities $ 41,163 $ 38,536 (1) Distribution joint ventures include Skechers China Limited, Skechers Southeast Asia Limited, Skechers Thailand Limited, Skechers Retail India Private Limited, and Skechers South Asia Private Limited. Net earnings attributable to non-controlling interests were $7.3 million and $3.4 million for the three months ended June 30, 2015 and 2014, respectively, which represents the share of net earnings that is attributable to our joint venture partners. Net earnings attributable to non-controlling interests were $12.9 million and $5.5 million for the six months ended June 30, 2015 and 2014, respectively. HF Logistics-SKX, LLC made capital distributions of $0.8 million and $1.9 million during the three and six months ended June 30, 2015, respectively. HF Logistics-SKX, LLC made capital distributions of $0.7 million and $1.6 million during the three and six months ended June 30, 2014, respectively. Skechers China Limited made capital distributions of $0.5 million during the three and six months ended June 30, 2015. Skechers China Limited made capital distributions of $0.3 million during the three and six months ended June 30, 2014. Our distribution joint venture partners made cash capital contributions of $0.5 during the three and six months ended June 30, 2015, respectively. Our distribution joint venture partners made cash capital contributions of $0.1 million during the three and six months ended June 30, 2014. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (5) EARNINGS PER SHARE 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, if dilutive, that would arise from the exercise of stock options and nonvested shares 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. 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 following is a reconciliation of net earnings and weighted average common shares outstanding for purposes of calculating basic earnings per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, Basic earnings per share 2015 2014 2015 2014 Net earnings attributable to Skechers U.S.A., Inc. $ 79,782 $ 34,802 $ 135,862 $ 65,767 Weighted average common shares outstanding 50,904 50,565 50,855 50,562 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 1.57 $ 0.69 $ 2.67 $ 1.30 The following is a reconciliation of net earnings and weighted average common shares outstanding for purposes of calculating diluted earnings per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, Diluted earnings per share 2015 2014 2015 2014 Net earnings attributable to Skechers U.S.A., Inc. $ 79,782 $ 34,802 $ 135,862 $ 65,767 Weighted average common shares outstanding 50,904 50,565 50,855 50,562 Dilutive effect of nonvested shares 438 349 404 317 Weighted average common shares outstanding 51,342 50,914 51,259 50,879 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 1.55 $ 0.68 $ 2.65 $ 1.29 There were no options excluded in the computation of diluted earnings per share for the three and six months ended June 30, 2015 and 2014. |
Stock Compensation
Stock Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation | (6) STOCK COMPENSATION For stock-based awards the Company recognized compensation expense based on the grant date fair value. Share-based compensation expense was $4.5 million and $1.6 million for the three months ended June 30, 2015 and 2014, respectively. Share-based compensation expense was $8.9 million and $2.9 million for the six months ended June 30, 2015 and 2014, respectively. A summary of the status and changes of our nonvested shares related to the Company’s Equity Incentive Plans as of and for the six months ended June 30, 2015 is presented below: Shares Weighted Average Grant-Date Fair Value Nonvested at December 31, 2014 1,263,833 $ 43.38 Granted 7,500 68.01 Vested (153,500 ) 29.02 Cancelled — — Nonvested at June 30, 2015 1,117,833 $ 45.52 As of June 30, 2015, there was $40.9 million of unrecognized compensation cost related to nonvested common shares. The cost is expected to be amortized over a weighted average period of 2.3 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) INCOME TAXES Income tax expense and the effective tax rate for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands, except the effective tax rate): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Income tax expense $ 25,383 $ 12,232 44,503 $ 23,669 Effective tax rate 22.6 % 24.2 % 23.0 % 24.9 % The tax provision for the three and six months ended June 30, 2015 and 2014 was computed using the estimated effective tax rates applicable to each of the domestic and international taxable jurisdictions for the full year. The Company estimates its ongoing effective annual tax rate in 2015 to be between 21% and 25%, which is subject to management’s quarterly review and revision, if necessary. The Company’s provision for income tax expense 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 foreign jurisdictions in which the Company has operations, the applicable statutory rates range from 0% to 34%, which is generally significantly lower than the U.S. federal and state combined statutory rate of approximately 39%. For the three and six months ended June 30, 2015, the decrease in the effective tax rate was primarily attributable to an increase in the amount of foreign earnings relative to domestic earnings as compared to the same period in the prior year. As of June 30, 2015, the Company had approximately $513.9 million in cash and cash equivalents, of which $233.6 million, or 45.4%, was held outside the U.S. Of the $233.6 million held by the Company’s foreign subsidiaries, approximately $82.9 million is available for repatriation to the U.S. without incurring U.S. income taxes and applicable foreign income and withholding taxes in excess of the amounts accrued in the Company’s condensed consolidated financial statements as of June 30, 2015. 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 foreign income and withholding taxes. The Company does not expect to repatriate any of the funds presently designated as indefinitely reinvested outside the U.S. As such, the Company did not provide for deferred income taxes on its accumulated undistributed earnings of the Company’s foreign subsidiaries. |
Business and Credit Concentrati
Business and Credit Concentrations | 6 Months Ended |
Jun. 30, 2015 | |
Risks And Uncertainties [Abstract] | |
Business and Credit Concentrations | (8) 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 subjects the Company to the risks of doing business abroad. In addition, the Company operates in the footwear industry, and its business depends on the general economic environment and levels of consumer spending. Changes in the marketplace may significantly affect management’s estimates and the Company’s performance. Management 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, were $256.0 million and $166.9 million before allowances for bad debts, sales returns and chargebacks at June 30, 2015 and December 31, 2014, respectively. Foreign accounts receivable, which in some cases are collateralized by letters of credit, were equal to $201.5 million and $126.2 million before allowance for bad debts, sales returns and chargebacks at June 30, 2015 and December 31, 2014, respectively. The Company’s charges for bad debt and reserves for credit losses for the six months ended June 30, 2015 and 2014 were $4.2 million and $6.6 million, respectively. The Company’s credit losses attributable to write-offs for the six months ended June 30, 2015 and 2014 were $0.7 million and $4.9 million, respectively. Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Net assets held outside the United States were $659.8 million and $548.9 million at June 30, 2015 and December 31, 2014, respectively. The Company’s net sales to its five largest customers accounted for approximately 15.9% and 16.2% of total net sales for the three months ended June 30, 2015 and 2014, respectively. The Company’s net sales to its five largest customers accounted for approximately 16.3% and 16.6% of total net sales for the six months ended June 30, 2015 and 2014, respectively. No customer accounted for more than 10% of our net sales during the three and six months ended June 30, 2015 and 2014. No customer accounted for more than 10% of net trade receivables at June 30, 2015 or December 31, 2014. The Company’s top five manufacturers produced the following, as a percentage of total production, for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Manufacturer #1 32.8 % 35.8 % 33.5 % 36.3 % Manufacturer #2 7.5 % 7.1 % 7.9 % 6.3 % Manufacturer #3 7.4 % 6.0 % 7.2 % 5.7 % Manufacturer #4 6.9 % 4.9 % 5.7 % 5.3 % Manufacturer #5 3.5 % 3.9 % 3.9 % 4.3 % 58.1 % 57.7 % 58.2 % 57.9 % 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. |
Segment and Geographic Reportin
Segment and Geographic Reporting Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting Information | (9) SEGMENT AND GEOGRAPHIC REPORTING INFORMATION The Company has four reportable segments – domestic wholesale sales, international wholesale sales, retail sales, and e-commerce sales. Management evaluates segment performance based primarily on net sales and gross profit. 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, identifiable assets and additions to property and equipment for the domestic wholesale, international wholesale, retail, and the e-commerce segments on a combined basis were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net sales: Domestic wholesale $ 338,646 $ 256,684 $ 659,975 $ 489,177 International wholesale 241,872 151,051 527,443 330,134 Retail 212,667 171,881 367,224 300,759 E-commerce 7,279 7,435 13,819 13,499 Total $ 800,464 $ 587,051 $ 1,568,461 $ 1,133,569 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Gross profit: Domestic wholesale $ 135,062 $ 94,186 $ 260,793 $ 178,741 International wholesale 103,771 64,792 217,148 141,081 Retail 130,669 106,817 220,939 183,578 E-commerce 5,106 3,580 8,268 6,378 Total $ 374,608 $ 269,375 $ 707,148 $ 509,778 June 30, 2015 December 31, 2014 Identifiable assets: Domestic wholesale $ 1,096,705 $ 979,582 International wholesale 616,080 510,063 Retail 199,497 185,041 E-commerce 243 232 Total $ 1,912,525 $ 1,674,918 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Additions to property, plant and equipment: Domestic wholesale $ 3,729 $ 2,950 $ 9,417 $ 4,956 International wholesale 4,971 3,929 8,526 4,933 Retail 9,681 5,678 15,061 14,038 Total $ 18,381 $ 12,557 $ 33,004 $ 23,927 Geographic Information: The following summarizes the Company’s operations in different geographic areas for the period indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net Sales (1): United States $ 512,705 $ 402,009 $ 965,869 $ 746,663 Canada 27,641 18,433 50,883 40,118 Other international (2) 260,118 166,609 551,709 346,788 Total $ 800,464 $ 587,051 $ 1,568,461 $ 1,133,569 June 30, 2015 December 31, 2014 Property, plant and equipment, net: United States $ 336,849 $ 332,383 Canada 7,547 7,203 Other international (2) 37,457 33,597 Total $ 381,853 $ 373,183 (1) The Company has subsidiaries in Austria, Belgium, Brazil, Canada, Chile, France, Germany, Italy, Japan, the Netherlands, Portugal, Spain, Switzerland, and the United Kingdom that generate net sales within those respective countries and in some cases the neighboring regions. The Company has joint ventures in China, Hong Kong, India, 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 includes Austria, Belgium, Brazil, Canada, Chile, China, France, Germany, Hong Kong, Hungary, India, Italy, Japan, Malaysia, the Netherlands, Poland, Portugal, Singapore, Spain, Switzerland, Thailand, Vietnam, and the United Kingdom. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | (10) 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 June 30, 2015, nor is it possible to estimate what litigation-related costs will be in the future. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of Skechers U.S.A., Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S‑X. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial reporting. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The results of operations for the six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2015. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value because of the relatively short maturity of such instruments. The carrying amount of the Company’s long-term borrowings are considered Level 2 liabilities that approximates fair value based upon current rates and terms available to the Company for similar debt. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. |
Revenue Recognition | 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, and chargebacks. Allowances for estimated returns, discounts, 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) amended the FASB Accounting Standards Codification and created a new Topic ASC 606, “ Revenue from Contracts with Customers Revenue Recognition In August 2014, the FASB amended the FASB Accounting Standards Codification and amended Subtopic 205-40, “ Presentation of Financial Statements – Going Concern In February 2015, the FASB issued ASU 2015-02, “ Amendments to the Consolidation Analysis” In April 2015, the FASB issued ASU 2015-03, “ Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs |
Non-Controlling 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 VIEs 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 VIEs that 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 VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. 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 2015 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. The following VIEs are consolidated into the Company’s condensed consolidated financial statements and the carrying amounts and classification of assets and liabilities were as follows (in thousands): HF Logistics-SKX, LLC June 30, 2015 December 31, 2014 Current assets $ 7,908 $ 6,812 Noncurrent assets 116,214 118,837 Total assets $ 124,122 $ 125,649 Current liabilities $ 78,678 $ 78,668 Noncurrent liabilities 1,041 1,194 Total liabilities $ 79,719 $ 79,862 Distribution joint ventures (1) June 30, 2015 December 31, 2014 Current assets $ 117,333 $ 94,819 Noncurrent assets 13,001 10,322 Total assets $ 130,334 $ 105,141 Current liabilities $ 40,547 $ 38,470 Noncurrent liabilities 616 66 Total liabilities $ 41,163 $ 38,536 (1) Distribution joint ventures include Skechers China Limited, Skechers Southeast Asia Limited, Skechers Thailand Limited, Skechers Retail India Private Limited, and Skechers South Asia Private Limited. |
Line of Credit, Short-Term an18
Line of Credit, Short-Term and Long-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | Long-term borrowings at June 30, 2015 and December 31, 2014 are as follows (in thousands): 2015 2014 Note payable to banks, due in monthly installments of $338.0 (includes principal and interest), variable-rate interest at 3.94% per annum, secured by property, balloon payment of $77,060 due October 2015 $ 77,396 $ 77,900 Note payable to banks, 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 15,048 17,940 Note payable to banks, 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 16,544 19,159 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 1,344 1,489 Note payable to bank from Skechers Retail India Private Ltd. 550 — Subtotal 110,882 116,488 Less current installments 109,290 101,407 Total long-term borrowings $ 1,592 $ 15,081 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Equity Attributable to Noncontrolling Interests | The following table reconciles equity attributable to noncontrolling interests (in thousands): Six Months Ended June 30, 2015 2014 Non-controlling interests, beginning of period $ 58,858 $ 49,598 Net earnings attributable to non-controlling interests 12,861 5,494 Foreign currency translation adjustment (209 ) 25 Capital contribution by non-controlling interests 485 83 Capital distribution to non-controlling interests (2,350 ) (1,975 ) Non-controlling interests, end of period $ 69,645 $ 53,225 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Carrying Amounts and Classification of Assets and Liabilities for VIEs | The following VIEs are consolidated into the Company’s condensed consolidated financial statements and the carrying amounts and classification of assets and liabilities were as follows (in thousands): HF Logistics-SKX, LLC June 30, 2015 December 31, 2014 Current assets $ 7,908 $ 6,812 Noncurrent assets 116,214 118,837 Total assets $ 124,122 $ 125,649 Current liabilities $ 78,678 $ 78,668 Noncurrent liabilities 1,041 1,194 Total liabilities $ 79,719 $ 79,862 Distribution joint ventures (1) June 30, 2015 December 31, 2014 Current assets $ 117,333 $ 94,819 Noncurrent assets 13,001 10,322 Total assets $ 130,334 $ 105,141 Current liabilities $ 40,547 $ 38,470 Noncurrent liabilities 616 66 Total liabilities $ 41,163 $ 38,536 (1) Distribution joint ventures include Skechers China Limited, Skechers Southeast Asia Limited, Skechers Thailand Limited, Skechers Retail India Private Limited, and Skechers South Asia Private Limited. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic Earnings Per Share | The following is a reconciliation of net earnings and weighted average common shares outstanding for purposes of calculating basic earnings per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, Basic earnings per share 2015 2014 2015 2014 Net earnings attributable to Skechers U.S.A., Inc. $ 79,782 $ 34,802 $ 135,862 $ 65,767 Weighted average common shares outstanding 50,904 50,565 50,855 50,562 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 1.57 $ 0.69 $ 2.67 $ 1.30 |
Diluted Earnings Per Share | The following is a reconciliation of net earnings and weighted average common shares outstanding for purposes of calculating diluted earnings per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, Diluted earnings per share 2015 2014 2015 2014 Net earnings attributable to Skechers U.S.A., Inc. $ 79,782 $ 34,802 $ 135,862 $ 65,767 Weighted average common shares outstanding 50,904 50,565 50,855 50,562 Dilutive effect of nonvested shares 438 349 404 317 Weighted average common shares outstanding 51,342 50,914 51,259 50,879 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 1.55 $ 0.68 $ 2.65 $ 1.29 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Nonvested Shares Related to Equity Incentive Plans | A summary of the status and changes of our nonvested shares related to the Company’s Equity Incentive Plans as of and for the six months ended June 30, 2015 is presented below: Shares Weighted Average Grant-Date Fair Value Nonvested at December 31, 2014 1,263,833 $ 43.38 Granted 7,500 68.01 Vested (153,500 ) 29.02 Cancelled — — Nonvested at June 30, 2015 1,117,833 $ 45.52 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense and Effective Tax Rate | Income tax expense and the effective tax rate for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands, except the effective tax rate): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Income tax expense $ 25,383 $ 12,232 44,503 $ 23,669 Effective tax rate 22.6 % 24.2 % 23.0 % 24.9 % |
Business and Credit Concentra24
Business and Credit Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Risks And Uncertainties [Abstract] | |
Company's Top Five Manufacturers Produced | The Company’s top five manufacturers produced the following, as a percentage of total production, for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Manufacturer #1 32.8 % 35.8 % 33.5 % 36.3 % Manufacturer #2 7.5 % 7.1 % 7.9 % 6.3 % Manufacturer #3 7.4 % 6.0 % 7.2 % 5.7 % Manufacturer #4 6.9 % 4.9 % 5.7 % 5.3 % Manufacturer #5 3.5 % 3.9 % 3.9 % 4.3 % 58.1 % 57.7 % 58.2 % 57.9 % |
Segment and Geographic Report25
Segment and Geographic Reporting Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Net sales, gross margins, identifiable assets and additions to property and equipment for the domestic wholesale, international wholesale, retail, and the e-commerce segments on a combined basis were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net sales: Domestic wholesale $ 338,646 $ 256,684 $ 659,975 $ 489,177 International wholesale 241,872 151,051 527,443 330,134 Retail 212,667 171,881 367,224 300,759 E-commerce 7,279 7,435 13,819 13,499 Total $ 800,464 $ 587,051 $ 1,568,461 $ 1,133,569 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Gross profit: Domestic wholesale $ 135,062 $ 94,186 $ 260,793 $ 178,741 International wholesale 103,771 64,792 217,148 141,081 Retail 130,669 106,817 220,939 183,578 E-commerce 5,106 3,580 8,268 6,378 Total $ 374,608 $ 269,375 $ 707,148 $ 509,778 June 30, 2015 December 31, 2014 Identifiable assets: Domestic wholesale $ 1,096,705 $ 979,582 International wholesale 616,080 510,063 Retail 199,497 185,041 E-commerce 243 232 Total $ 1,912,525 $ 1,674,918 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Additions to property, plant and equipment: Domestic wholesale $ 3,729 $ 2,950 $ 9,417 $ 4,956 International wholesale 4,971 3,929 8,526 4,933 Retail 9,681 5,678 15,061 14,038 Total $ 18,381 $ 12,557 $ 33,004 $ 23,927 |
Geographic Information | Geographic Information: The following summarizes the Company’s operations in different geographic areas for the period indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net Sales (1): United States $ 512,705 $ 402,009 $ 965,869 $ 746,663 Canada 27,641 18,433 50,883 40,118 Other international (2) 260,118 166,609 551,709 346,788 Total $ 800,464 $ 587,051 $ 1,568,461 $ 1,133,569 June 30, 2015 December 31, 2014 Property, plant and equipment, net: United States $ 336,849 $ 332,383 Canada 7,547 7,203 Other international (2) 37,457 33,597 Total $ 381,853 $ 373,183 (1) The Company has subsidiaries in Austria, Belgium, Brazil, Canada, Chile, France, Germany, Italy, Japan, the Netherlands, Portugal, Spain, Switzerland, and the United Kingdom that generate net sales within those respective countries and in some cases the neighboring regions. The Company has joint ventures in China, Hong Kong, India, 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 includes Austria, Belgium, Brazil, Canada, Chile, China, France, Germany, Hong Kong, Hungary, India, Italy, Japan, Malaysia, the Netherlands, Poland, Portugal, Singapore, Spain, Switzerland, Thailand, Vietnam, and the United Kingdom. |
Line of Credit, Short-Term an26
Line of Credit, Short-Term and Long-Term Borrowings - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Line Of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 4,400,000 | $ 3,400,000 |
Short-term borrowings | 1,340,000 | $ 1,810,000 |
Maximum amount of credit facility | 250,000,000 | |
Increase in maximum amount of credit facility | $ 100,000,000 | |
Maturity date of credit agreement | Jun. 30, 2020 | |
Line of credit facility, interest rate | Borrowings bear interest at our election based on (a) LIBOR or (b) the greater of (i) the Prime Rate, (ii) the Federal Funds Rate plus 0.5% and (iii) LIBOR for a 30-day period plus 1.0%, in each case, plus an applicable margin based on the average daily principal balance of revolving loans available under the Credit Agreement. | |
Unused line of credit fee | 0.25% | |
Maximum limit for letters of credit | $ 100,000,000 | |
Debt closing and arrangement fees | $ 1,100,000 | |
Line of credit facility, expiration period | 5 years | |
Line of credit facility, outstanding amount | $ 1,300,000 | |
Federal Funds Rate [Member] | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, interest rate | Federal Funds Rate plus 0.5% | |
Interest rate of line of credit agreement | 0.50% | |
LIBOR Loans [Member] | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, interest rate | LIBOR for a 30-day period plus 1.0% | |
Interest rate of line of credit agreement | 1.00% |
Line of Credit, Short-Term an27
Line of Credit, Short-Term and Long-Term Borrowings - Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 110,882 | $ 116,488 |
Less current installments | 109,290 | 101,407 |
Total long-term borrowings | 1,592 | 15,081 |
Notes payable to banks [Member] | Skechers Retail India Private Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 550 | |
Notes payable to banks [Member] | Modified loan agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 77,396 | 77,900 |
Notes payable to banks [Member] | Master agreement one [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 15,048 | 17,940 |
Notes payable to banks [Member] | Master agreement two [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 16,544 | 19,159 |
Notes payable to TCF Finance [Member] | Equipment agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 1,344 | $ 1,489 |
Line of Credit, Short-Term an28
Line of Credit, Short-Term and Long-Term Borrowings - Long-Term Borrowings (Parenthetical) (Detail) - Jun. 30, 2015 - Notes payable to banks [Member] - USD ($) | Total |
Modified loan agreement [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | $ 338,000 |
Variable interest rate of note payable | 3.94% |
Balloon payment required under note payable | $ 77,060,000 |
Due date for note payable | 2015-10 |
Frequency of periodic payment | Monthly |
Master agreement one [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 |
Master agreement two [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 |
Equipment agreement [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 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Class B Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Certain Class B stockholders converted into Class A | 818,910 | 289,480 | 1,074,432 | 299,776 |
Class A Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Shares issued as a part of conversion | 818,910 | 289,480 | 1,074,432 | 299,776 |
Stockholders' Equity - Equity A
Stockholders' Equity - Equity Attributable to Noncontrolling Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Noncontrolling Interest [Abstract] | ||||
Non-controlling interests, beginning of period | $ 58,858 | $ 49,598 | ||
Net earnings attributable to non-controlling interests | $ 7,283 | $ 3,411 | 12,861 | 5,494 |
Foreign currency translation adjustment | (209) | 25 | ||
Capital contribution by non-controlling interests | 485 | 83 | ||
Capital distribution to non-controlling interests | (2,350) | (1,975) | ||
Non-controlling interests, end of period | $ 69,645 | $ 53,225 | $ 69,645 | $ 53,225 |
Non-Controlling Interests - Car
Non-Controlling Interests - Carrying Amounts and Classification of Assets and Liabilities for VIEs (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 1,504,546 | $ 1,285,014 |
Noncurrent assets | 407,979 | 389,904 |
TOTAL ASSETS | 1,912,525 | 1,674,918 |
Current liabilities | 594,678 | 505,737 |
Noncurrent liabilities | 25,992 | 35,074 |
Total liabilities | 620,670 | 540,811 |
Variable interest entity, primary beneficiary [Member] | HF Logistics-SKX, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 7,908 | 6,812 |
Noncurrent assets | 116,214 | 118,837 |
TOTAL ASSETS | 124,122 | 125,649 |
Current liabilities | 78,678 | 78,668 |
Noncurrent liabilities | 1,041 | 1,194 |
Total liabilities | 79,719 | 79,862 |
Variable interest entity, primary beneficiary [Member] | Distribution joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 117,333 | 94,819 |
Noncurrent assets | 13,001 | 10,322 |
TOTAL ASSETS | 130,334 | 105,141 |
Current liabilities | 40,547 | 38,470 |
Noncurrent liabilities | 616 | 66 |
Total liabilities | $ 41,163 | $ 38,536 |
Non-Controlling Interests - Add
Non-Controlling Interests - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Variable Interest Entity [Line Items] | ||||
Net earnings attributable to non-controlling interests | $ 7,283 | $ 3,411 | $ 12,861 | $ 5,494 |
Capital distributions to non-controlling interest | 2,350 | 1,975 | ||
Capital contributions from non-controlling interest | 485 | 83 | ||
Variable interest entity, primary beneficiary [Member] | HF Logistics-SKX, LLC [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Capital distributions to non-controlling interest | 800 | 700 | 1,900 | 1,600 |
Variable interest entity, primary beneficiary [Member] | Skechers China Limited [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Capital distributions to non-controlling interest | 500 | 300 | 500 | 300 |
Variable interest entity, primary beneficiary [Member] | Other Distribution Joint Ventures [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Capital contributions from non-controlling interest | $ 500 | $ 100 | $ 500 | $ 100 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options excluded from the computation of diluted earnings | 0 | 0 | 0 | 0 |
Class A Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common stock, voting rights | One vote per share | |||
Class B Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common stock, voting rights | Ten votes per share |
Earnings Per Share - Basic Earn
Earnings Per Share - Basic Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic earnings per share | ||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 79,782 | $ 34,802 | $ 135,862 | $ 65,767 |
Weighted average common shares outstanding | 50,904 | 50,565 | 50,855 | 50,562 |
Basic earnings per share attributable to Skechers U.S.A., Inc. | $ 1.57 | $ 0.69 | $ 2.67 | $ 1.30 |
Earnings Per Share - Diluted Ea
Earnings Per Share - Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Diluted earnings per share | ||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 79,782 | $ 34,802 | $ 135,862 | $ 65,767 |
Weighted average common shares outstanding | 50,904 | 50,565 | 50,855 | 50,562 |
Dilutive effect of nonvested shares | 438 | 349 | 404 | 317 |
Weighted average common shares outstanding | 51,342 | 50,914 | 51,259 | 50,879 |
Diluted earnings per share attributable to Skechers U.S.A., Inc. | $ 1.55 | $ 0.68 | $ 2.65 | $ 1.29 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Share-based compensation expense | $ 4.5 | $ 1.6 | $ 8.9 | $ 2.9 |
Unrecognized compensation cost related to nonvested common shares | $ 40.9 | $ 40.9 | ||
Weighted average period for recognition of cost | 2 years 3 months 18 days |
Stock Compensation - Summary of
Stock Compensation - Summary of Nonvested Shares Related to Equity Incentive Plans (Detail) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Nonvested, Shares, Beginning of Period | 1,263,833 |
Granted, Shares | 7,500 |
Vested, Shares | (153,500) |
Nonvested, Shares, End of Period | 1,117,833 |
Nonvested, Weighted Average Grant-Date Fair Value, Beginning of Period | $ 43.38 |
Granted, Weighted Average Grant-Date Fair Value | 68.01 |
Vested, Weighted Average Grant-Date Fair Value | 29.02 |
Nonvested, Weighted Average Grant-Date Fair Value, End of Period | $ 45.52 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 25,383 | $ 12,232 | $ 44,503 | $ 23,669 |
Effective tax rate | 22.60% | 24.20% | 23.00% | 24.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Income Taxes [Line Items] | ||||||
Effective tax rate | 22.60% | 24.20% | 23.00% | 24.90% | ||
U.S. federal and state statutory rate | 39.00% | 39.00% | ||||
Cash and cash equivalents | $ 513,902 | $ 414,808 | $ 513,902 | $ 414,808 | $ 466,685 | $ 372,011 |
Repatriation of earnings | 82,900 | |||||
Non-US [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Cash and cash equivalents | $ 233,600 | $ 233,600 | ||||
Non-US [Member] | GeographicConcentrationRisk[Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Percentage of cash and cash equivalents | 45.40% | |||||
Minimum [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Effective tax rate | 21.00% | |||||
Minimum [Member] | Non-U.S jurisdictions [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Statutory federal rate | 0.00% | |||||
Maximum [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Effective tax rate | 25.00% | |||||
Maximum [Member] | Non-U.S jurisdictions [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Statutory federal rate | 34.00% |
Business and Credit Concentra40
Business and Credit Concentrations - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)Customer | Jun. 30, 2014Customer | Jun. 30, 2015USD ($)Customer | Jun. 30, 2014USD ($)Customer | Dec. 31, 2014USD ($)Customer | |
Concentration Risk [Line Items] | |||||
Provision for bad debts, returns and allowances | $ 4,216 | $ 6,597 | |||
Credit losses attributable to write-offs | $ 700 | $ 4,900 | |||
Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of largest customers | Customer | 5 | 5 | 5 | 5 | |
Percentage of cash and cash equivalents | 15.90% | 16.20% | 16.30% | 16.60% | |
Number of customers accounting for more than 10% | Customer | 0 | 0 | 0 | 0 | |
Net Trade Receivable [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customers accounting for more than 10% | Customer | 0 | 0 | |||
Domestic [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 256,000 | $ 256,000 | $ 166,900 | ||
Outside U.S. [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | 201,500 | 201,500 | 126,200 | ||
Net total assets held outside the United States | $ 659,800 | $ 659,800 | $ 548,900 |
Business and Credit Concentra41
Business and Credit Concentrations - Company's Top Five Manufacturers Produced (Detail) - Cost of Goods, Total [Member] - Supplier Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Concentration Risk [Line Items] | ||||
Percentage of total production | 58.10% | 57.70% | 58.20% | 57.90% |
Manufacturer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 32.80% | 35.80% | 33.50% | 36.30% |
Manufacturer Two [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 7.50% | 7.10% | 7.90% | 6.30% |
Manufacturer Three [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 7.40% | 6.00% | 7.20% | 5.70% |
Manufacturer Four [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 6.90% | 4.90% | 5.70% | 5.30% |
Manufacturer Five [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 3.50% | 3.90% | 3.90% | 4.30% |
Segment and Geographic Report42
Segment and Geographic Reporting Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment and Geographic Report43
Segment and Geographic Reporting Information - Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Net sales, Total | $ 800,464 | $ 587,051 | $ 1,568,461 | $ 1,133,569 | |
Gross profit | 374,608 | 269,375 | 707,148 | 509,778 | |
Identifiable assets | 1,912,525 | 1,912,525 | $ 1,674,918 | ||
Additions to property, plant and equipment | 18,381 | 12,557 | 33,004 | 23,927 | |
Domestic wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 338,646 | 256,684 | 659,975 | 489,177 | |
Gross profit | 135,062 | 94,186 | 260,793 | 178,741 | |
Identifiable assets | 1,096,705 | 1,096,705 | 979,582 | ||
Additions to property, plant and equipment | 3,729 | 2,950 | 9,417 | 4,956 | |
International wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 241,872 | 151,051 | 527,443 | 330,134 | |
Gross profit | 103,771 | 64,792 | 217,148 | 141,081 | |
Identifiable assets | 616,080 | 616,080 | 510,063 | ||
Additions to property, plant and equipment | 4,971 | 3,929 | 8,526 | 4,933 | |
Retail [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 212,667 | 171,881 | 367,224 | 300,759 | |
Gross profit | 130,669 | 106,817 | 220,939 | 183,578 | |
Identifiable assets | 199,497 | 199,497 | 185,041 | ||
Additions to property, plant and equipment | 9,681 | 5,678 | 15,061 | 14,038 | |
E-commerce [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 7,279 | 7,435 | 13,819 | 13,499 | |
Gross profit | 5,106 | $ 3,580 | 8,268 | $ 6,378 | |
Identifiable assets | $ 243 | $ 243 | $ 232 |
Segment and Geographic Report44
Segment and Geographic Reporting Information - Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Net Sales | |||||
Net sales, Total | $ 800,464 | $ 587,051 | $ 1,568,461 | $ 1,133,569 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 381,853 | 381,853 | $ 373,183 | ||
Domestic [Member] | |||||
Net Sales | |||||
Net sales, Total | 512,705 | 402,009 | 965,869 | 746,663 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 336,849 | 336,849 | 332,383 | ||
Canada [Member] | |||||
Net Sales | |||||
Net sales, Total | 27,641 | 18,433 | 50,883 | 40,118 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 7,547 | 7,547 | 7,203 | ||
Other international [Member] | |||||
Net Sales | |||||
Net sales, Total | 260,118 | $ 166,609 | 551,709 | $ 346,788 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | $ 37,457 | $ 37,457 | $ 33,597 |