Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
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 | 133,320,987 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,545,188 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 628,827 | $ 507,991 |
Trade accounts receivable, less allowances of $26,602 in 2016 and $24,260 in 2015 | 468,572 | 343,930 |
Other receivables | 20,545 | 18,661 |
Total receivables | 489,117 | 362,591 |
Inventories | 590,711 | 620,247 |
Prepaid expenses and other current assets | 57,283 | 57,363 |
Total current assets | 1,765,938 | 1,548,192 |
Property, plant and equipment, net | 464,403 | 435,907 |
Deferred tax assets | 17,680 | 17,825 |
Other assets | 43,411 | 37,954 |
Total non-current assets | 525,494 | 491,686 |
TOTAL ASSETS | 2,291,432 | 2,039,878 |
Current liabilities: | ||
Current installments of long-term borrowings | 1,775 | 15,653 |
Short-term borrowings | 3,274 | 59 |
Accounts payable | 534,180 | 473,983 |
Accrued expenses | 71,661 | 87,318 |
Total current liabilities | 610,890 | 577,013 |
Long-term borrowings, excluding current installments | 68,053 | 68,942 |
Deferred tax liabilities | 9,058 | 8,507 |
Other long-term liabilities | 11,740 | 9,682 |
Total non-current liabilities | 88,851 | 87,131 |
Total liabilities | 699,741 | 664,144 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 404,421 | 386,156 |
Accumulated other comprehensive loss | (19,365) | (26,305) |
Retained earnings | 1,139,271 | 967,552 |
Skechers U.S.A., Inc. equity | 1,524,481 | 1,327,556 |
Noncontrolling interests | 67,210 | 48,178 |
Total stockholders' equity | 1,591,691 | 1,375,734 |
TOTAL LIABILITIES AND EQUITY | 2,291,432 | 2,039,878 |
Class A Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | 130 | 127 |
Class B Convertible Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | $ 24 | $ 26 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Trade accounts receivable, allowances | $ 26,602 | $ 24,260 |
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 | 500,000,000 | 500,000,000 |
Common Stock, shares issued | 129,641,000 | 127,324,000 |
Common Stock, shares outstanding | 129,641,000 | 127,324,000 |
Class B Convertible Common Stock [Member] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 24,545,000 | 26,278,000 |
Common Stock, shares outstanding | 24,545,000 | 26,278,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 877,810 | $ 800,464 | $ 1,856,604 | $ 1,568,461 |
Cost of sales | 461,556 | 425,856 | 1,008,198 | 861,313 |
Gross profit | 416,254 | 374,608 | 848,406 | 707,148 |
Royalty income | 3,307 | 3,630 | 5,932 | 5,512 |
Operating income | 419,561 | 378,238 | 854,338 | 712,660 |
Operating expenses: | ||||
Selling | 75,966 | 64,875 | 129,844 | 113,967 |
General and administrative | 243,240 | 201,021 | 485,589 | 398,162 |
Operating expenses | 319,206 | 265,896 | 615,433 | 512,129 |
Earnings from operations | 100,355 | 112,342 | 238,905 | 200,531 |
Other income (expense): | ||||
Interest income | 319 | 157 | 585 | 344 |
Interest expense | (1,861) | (3,041) | (3,249) | (5,878) |
Other, net | (2,604) | 2,990 | 175 | (1,771) |
Total other income (expense) | (4,146) | 106 | (2,489) | (7,305) |
Earnings before income tax expense | 96,209 | 112,448 | 236,416 | 193,226 |
Income tax expense | 12,200 | 25,383 | 42,768 | 44,503 |
Net earnings | 84,009 | 87,065 | 193,648 | 148,723 |
Less: Net earnings attributable to non-controlling interests | 9,902 | 7,283 | 21,929 | 12,861 |
Net earnings attributable to Skechers U.S.A., Inc. | $ 74,107 | $ 79,782 | $ 171,719 | $ 135,862 |
Net earnings per share attributable to Skechers U.S.A., Inc.: | ||||
Basic | $ 0.48 | $ 0.52 | $ 1.12 | $ 0.89 |
Diluted | $ 0.48 | $ 0.52 | $ 1.11 | $ 0.88 |
Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc.: | ||||
Basic | 154,049 | 152,712 | 153,901 | 152,565 |
Diluted | 155,023 | 154,027 | 154,912 | 153,778 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 84,009 | $ 87,065 | $ 193,648 | $ 148,723 |
Other comprehensive income, net of tax: | ||||
Gain (loss) on foreign currency translation adjustment | 338 | 1,742 | 6,336 | (2,879) |
Comprehensive income | 84,347 | 88,807 | 199,984 | 145,844 |
Less: Comprehensive income attributable to non-controlling interests | 8,353 | 7,307 | 21,326 | 12,652 |
Comprehensive income attributable to Skechers U.S.A., Inc. | $ 75,994 | $ 81,500 | $ 178,658 | $ 133,192 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 193,648 | $ 148,723 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization of property, plant and equipment | 30,555 | 27,676 |
Amortization of other assets | 5,820 | 617 |
Provision for bad debts and returns | 8,385 | 4,216 |
Non-cash share-based compensation | 10,870 | 8,874 |
Deferred income taxes | 692 | 2,215 |
Loss (gain) on non-current assets | 557 | (20) |
Net foreign currency adjustments | (441) | |
(Increase) decrease in assets: | ||
Receivables | (130,707) | (166,970) |
Inventories | 33,789 | (19,209) |
Prepaid expenses and other current assets | (4,142) | 4,997 |
Other assets | (3,867) | (8,223) |
Increase (decrease) in liabilities: | ||
Accounts payable | 54,213 | 75,679 |
Accrued expenses | (19,149) | 8,368 |
Other long-term liabilities | 2,059 | |
Net cash provided by operating activities | 182,282 | 86,943 |
Cash flows from investing activities: | ||
Capital expenditures | (55,034) | (33,004) |
Intangible asset additions | (95) | |
Purchases of investments | (2,194) | (2,106) |
Proceeds from sales of investments | 131 | 105 |
Net cash used in investing activities | (57,097) | (35,100) |
Cash flows from financing activities: | ||
Net proceeds from the issuances of common stock through the employee stock purchase plan | 2,928 | 2,238 |
Payments on long-term debt | (14,768) | (5,599) |
Proceeds from (payments on) short-term borrowings | (3,232) | 487 |
Excess tax benefits from share-based compensation | 4,469 | 2,656 |
Distributions to non-controlling interests of consolidated entity | (5,199) | (2,350) |
Contributions from non-controlling interests of consolidated entity | 2,905 | 485 |
Net cash used in financing activities | (6,433) | (3,057) |
Net increase in cash and cash equivalents | 118,752 | 48,786 |
Effect of exchange rates on cash and cash equivalents | 2,084 | (1,569) |
Cash and cash equivalents at beginning of the period | 507,991 | 466,685 |
Cash and cash equivalents at end of the period | 628,827 | 513,902 |
Cash paid during the period for: | ||
Interest | 3,041 | 4,947 |
Income taxes, net | $ 34,391 | $ 32,487 |
General
General | 6 Months Ended |
Jun. 30, 2016 | |
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 generally accepted accounting principles in the United States of America (“U.S. GAAP”), 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 notes and financial presentations normally required under U.S. GAAP 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, 2015. The results of operations for the six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2016. On August 21, 2015, the Company’s board of directors approved a three-for-one stock split, effected in the form of a stock dividend, of both the Company’s Class A and Class B common stock. The stock split was made on October 16, 2015 to stockholders of record at the close of business on October 2, 2015. All share numbers and per share amounts presented in the condensed consolidated financial statements reflect the three-for-one stock split. 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, which are considered Level 2 liabilities, approximates fair value based upon current rates and terms available to the Company for similar debt. As of August 12, 2015, the Company entered into an interest rate swap agreement concurrent with refinancing its domestic distribution center construction loan (see Note 2, Line of Credit, Short-Term and Long-Term Borrowings). The fair value of the interest rate swap was determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipt was based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with U.S. GAAP, credit valuation adjustments were incorporated to appropriately reflect both the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The majority of the inputs used to value the interest rate swap were within Level 2 of the fair value hierarchy. As of June 30, 2016 and December 31, 2015, the interest rate swap was a Level 2 derivative and was classified as other long-term liabilities on the Company’s condensed consolidated balance sheets. Use of Estimates The preparation of the condensed consolidated financial statements, in conformity with U.S. GAAP, 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 June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” In March 2016, the FASB issued ASU No. 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 Emerging Issues Task Force Meeting (“EITF”), Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients,” In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In July 2015, the FASB issued ASU No 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, which amended the FASB Accounting Standards Codification (“ASC”) and created a new Topic ASC 606, “ Revenue from Contracts with Customers Revenue Recognition |
Line of Credit, Short-Term and
Line of Credit, Short-Term and Long-Term Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
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 $2.0 million and $4.0 million of outstanding letters of credit as of June 30, 2016 and December 31, 2015, respectively, and approximately $3.3 million and $0.1 million in short-term borrowings as of June 30, 2016 and December 31, 2015, respectively. Long-term borrowings at June 30, 2016 and December 31, 2015 are as follows (in thousands): 2016 2015 Note payable to banks, due in monthly installments of $121.3 (includes principal and interest), variable-rate interest at 2.46% per annum, secured by property, balloon payment of $63,692 due August 2020 $ 68,787 $ 69,515 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 paid in full June 2016 — 13,886 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 1,041 1,194 Subtotal 69,828 84,595 Less current installments 1,775 15,653 Total long-term borrowings $ 68,053 $ 68,942 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 June 30, 2016 and December 31, 2015. On June 30, 2015, the Company entered into a $250.0 million loan and security agreement, subject to increase by up to $100.0 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 the Company’s 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 of 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 included in Other assets in the condensed consolidated balance sheets, and are being amortized to interest expense over the five-year life of the facility. On April 30, 2010, HF Logistics-SKX, LLC (the “JV”), through its subsidiary HF-T1, entered into a construction loan agreement with Bank of America, N.A. as administrative agent and as a lender, and Raymond James Bank, FSB, as a lender (collectively, the "Construction Loan Agreement"), pursuant to which the JV obtained a loan of up to $55.0 million used for construction of the project on certain property (the "Original Loan"). On November 16, 2012, HF-T1 executed a modification to the Construction Loan Agreement (the "Modification"), which added OneWest Bank, FSB as a lender, increased the borrowings under the Original Loan to $80.0 million and extended the maturity date of the Original Loan to October 30, 2015. On August 11, 2015, the JV, through HF-T1, entered into an amended and restated loan agreement with Bank of America, N.A., as administrative agent and as a lender, and CIT Bank, N.A. (formerly known as OneWest Bank, FSB) and Raymond James Bank, N.A., as lenders (collectively, the "Amended Loan Agreement"), which amends and restates in its entirety the Construction Loan Agreement and the Modification. As of the date of the Amended Loan Agreement, the outstanding principal balance of the Original Loan was $77.3 million. In connection with this refinancing of the Original Loan, the JV, the Company and its joint-venture partner HF Logistics (“HF”) agreed that the Company would make an additional capital contribution of $38.7 million to the JV, through HF-T1, to make a prepayment on the Original Loan based on the Company’s 50% equity interest in the JV. The prepayment equaled the Company’s 50% share of the outstanding principal balance of the Original Loan. Under the Amended Loan Agreement, the parties agreed that the lenders would loan $70.0 million to HF-T1 (the "New Loan"). The New Loan was used by the JV, through HF-T1, to (i) refinance all amounts owed on the Original Loan after taking into account the prepayment described above, (ii) pay $0.9 million in accrued interest, loan fees and other closing costs associated with the New Loan and (iii) make a distribution of $31.3 million less the amounts described in clause (ii) to HF. Pursuant to the Amended Loan Agreement, the interest rate on the New Loan is the LIBOR Daily Floating Rate (as defined in the Amended Loan Agreement) plus a margin of 2%. The maturity date of the New Loan is August 12, 2020, which HF-T1 has one option to extend by an additional 24 months, or until August 12, 2022, upon payment of a fee and satisfaction of certain customary conditions. On August 11, 2015, HF-T1 and Bank of America, N.A. entered into an ISDA Master Agreement (together with the schedule related thereto, the "Swap Agreement") to govern derivative and/or hedging transactions that HF-T1 concurrently entered into with Bank of America, N.A. Pursuant to the Swap Agreement, on August 14, 2015, HF-T1 entered into a confirmation of swap transactions (the "Interest Rate Swap") with Bank of America, N.A. The Interest Rate Swap has an effective date of August 12, 2015 and a maturity date of August 12, 2022, subject to early termination at the option of HF-T1, commencing on August 1, 2020. The Interest Rate Swap effectively modifies interest rate risk exposure by converting the Company’s floating-rate debt to a fixed-rate of 4.08% for the term of the New Loan, thus reducing the impact of interest-rate changes on future interest payments. Pursuant to the terms of the JV, HF is responsible for the related interest expense payments on the New Loan, and any amounts related to the Swap Agreement. The full amount of interest expense paid related to the New Loan has been included in the Company’s condensed consolidated statements of equity within non-controlling interests. The Company’s objectives in using an interest rate derivative are to add stability to interest payments and to manage exposure to interest rate movements. The Amended Loan Agreement and the Swap Agreement are subject to customary covenants and events of default. Bank of America, N.A. also acts as a lender and syndication agent under the Credit Agreement dated June 30, 2015. By utilizing an interest rate swap, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company entered into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of June 30, 2016, all counterparties to the interest rate swap had performed in accordance with their contractual obligations. On December 29, 2010, the Company entered into a Master Loan and Security Agreement (the “Master Agreement”), by and between the Company and Banc of America Leasing & Capital, LLC, and an Equipment Security Note (together with the Master Agreement, the “Loan Documents”), by and among the Company, 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 First Note entered into on the same date as the Master Agreement represented a borrowing of approximately $39.3 million (“the First Note”). Interest accrued at a fixed rate of 3.54% per annum on the First Note. The Company made the final payment on the First Note on December 29, 2015. On June 30, 2011, the Company entered into another Note agreement for approximately $36.3 million (“the Second Note”). Interest accrued at a fixed rate of 3.19% per annum on the Second Note. The Company made the final payment on the Second Note on June 29, 2016. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | (3) STOCKHOLDERS’ EQUITY During the three months ended June 30, 2016, 682,408 shares of Class B common stock were converted into shares of Class A common stock. During the three months ended June 30, 2015, 2,456,730 shares of Class B common stock were converted into shares of Class A common stock. During the six months ended June 30, 2016, 1,733,270 shares of Class B common stock were converted into shares of Class A common stock. During the six months ended June 30, 2015, 3,223,296 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, 2016 2015 Non-controlling interests, beginning of period $ 48,178 $ 58,858 Net earnings attributable to non-controlling interests 21,929 12,861 Foreign currency translation adjustment (603 ) (209 ) Capital contributions from non-controlling interests 2,905 485 Capital distributions to non-controlling interests (5,199 ) (2,350 ) Non-controlling interests, end of period $ 67,210 $ 69,645 |
Non-Controlling Interests
Non-Controlling Interests | 6 Months Ended |
Jun. 30, 2016 | |
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 primarily throughout Asia or to construct the Company’s domestic distribution facility. These joint ventures are variable interest entities (“VIEs”) under 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 condensed consolidated financial statements, even though the Company may not hold a majority equity interest. There have been no changes during 2016 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, 2016 December 31, 2015 Current assets $ 816 $ 2,111 Non-current assets 111,298 113,928 Total assets $ 112,114 $ 116,039 Current liabilities $ 2,544 $ 2,461 Non-current liabilities 69,062 69,951 Total liabilities $ 71,606 $ 72,412 Distribution joint ventures (1) June 30, 2016 December 31, 2015 Current assets $ 220,571 $ 154,060 Non-current assets 42,113 34,782 Total assets $ 262,684 $ 188,842 Current liabilities $ 99,879 $ 68,198 Non-current liabilities 65 62 Total liabilities $ 99,944 $ 68,260 (1) Distribution joint ventures include Skechers China Limited, Skechers Ltd. (Israel), Skechers Retail India Private Limited, Skechers South Asia Private Limited, Skechers Southeast Asia Limited, and Skechers Thailand Limited. The following is a summary of net earnings attributable to, distributions to and contributions from non-controlling interests (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net earnings attributable to non-controlling interests $ 9,902 $ 7,283 $ 21,929 $ 12,861 Distributions to: HF Logistics-SKX, LLC 1,210 750 2,116 1,900 Skechers China Limited — 450 3,083 450 Contributions from: India distribution joint ventures — 485 2,905 485 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (5) EARNINGS PER SHARE Basic earnings per share represent 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 dilutive common 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 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 transfer to any person or entity who is not a permitted transferee. 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 2016 2015 2016 2015 Net earnings attributable to Skechers U.S.A., Inc. $ 74,107 $ 79,782 $ 171,719 $ 135,862 Weighted average common shares outstanding 154,049 152,712 153,901 152,565 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 0.48 $ 0.52 $ 1.12 $ 0.89 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 2016 2015 2016 2015 Net earnings attributable to Skechers U.S.A., Inc. $ 74,107 $ 79,782 $ 171,719 $ 135,862 Weighted average common shares outstanding 154,049 152,712 153,901 152,565 Dilutive effect of nonvested shares 974 1,315 1,011 1,213 Weighted average common shares outstanding 155,023 154,027 154,912 153,778 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 0.48 $ 0.52 $ 1.11 $ 0.88 |
Stock Compensation
Stock Compensation | 6 Months Ended |
Jun. 30, 2016 | |
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 $6.2 million and $4.5 million for the three months ended June 30, 2016 and 2015, respectively. Share-based compensation expense was $10.9 million and $8.9 million for the six months ended June 30, 2016 and 2015, respectively. A summary of the status and changes of the Company’s nonvested shares related to the 2007 Incentive Award Plan (the “2007 Plan”), as of and for the six months ended June 30, 2016 is presented below: Shares Weighted Average Grant-Date Fair Value Nonvested at December 31, 2015 2,725,500 $ 15.77 Granted 1,434,000 31.75 Vested (468,000 ) 9.88 Cancelled (12,000 ) 17.47 Nonvested at June 30, 2016 3,679,500 22.74 As of June 30, 2016, there was $68.3 million of unrecognized compensation cost related to nonvested common shares. The cost is expected to be amortized over a weighted average period of 2.4 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015 were as follows (in thousands, except the effective tax rate): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Income tax expense $ 12,200 $ 25,383 $ 42,768 $ 44,503 Effective tax rate 12.7 % 22.6 % 18.1 % 23.0 % The tax provision for the three and six months ended June 30, 2016 and 2015 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 for the remainder of 2016 to be between 17% and 22%, which is subject to management’s quarterly review and revision, as 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, 2016, the decrease in the effective tax rate was primarily due to an increase in the amount of projected foreign earnings for our China operations relative to projected domestic earnings as compared to the same period in the prior year. As of June 30, 2016, the Company had approximately $628.8 million in cash and cash equivalents, of which $332.0 million, or 52.8%, was held outside the U.S. Of the $332.0 million held by the Company’s foreign subsidiaries, approximately $70.3 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. 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. In November 2015, the FASB issued ASU No. 2015‑17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” |
Business and Credit Concentrati
Business and Credit Concentrations | 6 Months Ended |
Jun. 30, 2016 | |
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 $258.2 million and $180.2 million before allowances for bad debts, sales returns and chargebacks at June 30, 2016 and December 31, 2015, respectively. Foreign accounts receivable, which in some cases are collateralized by letters of credit, were equal to $237.0 million and $188.0 million before allowance for bad debts, sales returns and chargebacks at June 30, 2016 and December 31, 2015, respectively. The Company’s credit losses attributable to write-offs (recoveries) for the three months ended June 30, 2016 and 2015 were $1.5 million and $(0.4) million, respectively. The Company’s credit losses attributable to write-offs for the six months ended June 30, 2016 and 2015 were $4.0 million and $0.7 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 $945.3 million and $773.5 million at June 30, 2016 and December 31, 2015, respectively. The Company’s net sales to its five largest customers accounted for approximately 11.8% and 15.9% of total net sales for the three months ended June 30, 2016 and 2015, respectively. The Company’s net sales to its five largest customers accounted for approximately 12.7% and 16.3% of total net sales for the six months ended June 30, 2016 and 2015, respectively. No customer accounted for more than 10.0% of the Company’s net sales during the three and six months ended June 30, 2016 and 2015. No customer accounted for more than 10.0% of trade receivables at June 30, 2016. As of December 31, 2015, one customer accounted for 10.6% of trade receivables. The Company’s top five manufacturers produced the following, as a percentage of total production, for the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Manufacturer #1 25.1 % 32.8 % 25.6 % 33.5 % Manufacturer #2 10.4 % 7.5 % 10.7 % 7.9 % Manufacturer #3 8.9 % 7.4 % 9.6 % 7.2 % Manufacturer #4 6.6 % 6.9 % 5.4 % 5.7 % Manufacturer #5 5.0 % 3.5 % 4.2 % 3.9 % 56.0 % 58.1 % 55.5 % 58.2 % The majority of the Company’s products are produced in China and Vietnam. 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, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting Information | (9) SEGMENT AND GEOGRAPHIC REPORTING INFORMATION The Company has three reportable segments – domestic wholesale sales, international wholesale sales and retail sales, which includes 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 sales segments on a combined basis were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net sales: Domestic wholesale $ 320,498 $ 338,646 $ 680,768 $ 659,975 International wholesale 303,432 241,872 723,467 527,443 Retail 253,880 219,946 452,369 381,043 Total $ 877,810 $ 800,464 $ 1,856,604 $ 1,568,461 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Gross profit: Domestic wholesale $ 124,656 $ 135,062 $ 265,171 $ 260,793 International wholesale 139,288 103,771 315,308 217,148 Retail 152,310 135,775 267,927 229,207 Total $ 416,254 $ 374,608 $ 848,406 $ 707,148 June 30, 2016 December 31, 2015 Identifiable assets: Domestic wholesale $ 1,140,427 $ 1,086,554 International wholesale 879,135 713,424 Retail 271,870 239,900 Total $ 2,291,432 $ 2,039,878 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Additions to property, plant and equipment: Domestic wholesale $ 1,096 $ 3,729 $ 11,232 $ 9,417 International wholesale 5,695 4,971 21,674 8,526 Retail 13,045 9,681 22,128 15,061 Total $ 19,836 $ 18,381 $ 55,034 $ 33,004 Geographic Information: The following summarizes the Company’s operations in different geographic areas for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net Sales (1) United States $ 509,902 $ 512,705 $ 1,022,139 $ 965,869 Canada 34,433 27,641 71,501 50,883 Other international (2) 333,475 260,118 762,964 551,709 Total $ 877,810 $ 800,464 $ 1,856,604 $ 1,568,461 June 30, 2016 December 31, 2015 Property, plant and equipment, net: United States $ 363,825 $ 356,704 Canada 9,679 8,447 Other international (2) 90,899 70,756 Total $ 464,403 $ 435,907 (1) The Company has subsidiaries in Asia, Central America, Europe, North America, and South America that generate net sales within those respective regions and in some cases the neighboring regions. The Company also has joint ventures in Asia that generate net sales from those regions. 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. External net sales are attributable to geographic regions based on the location of each of the Company’s subsidiaries. A subsidiary may earn revenue from external net sales and external royalties, or from inter-subsidiary net sales, royalties, fees and commissions provided in accordance with certain inter-subsidiary agreements. The resulting earnings of each subsidiary in its respective country are recognized under each respective country’s tax code. Inter-subsidiary revenues and expenses subsequently are eliminated in the Company’s condensed consolidated financial statements and are not included as part of the external net sales reported in different geographic areas. (2) Other international includes Asia, Central America, Europe, North America, and South America. In response to the State Department’s trade restrictions with Sudan and Syria, we do not authorize or permit any distribution or sales of our product in these countries, and we are not aware of any current or past distribution or sales of our product in Sudan or Syria. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (10) RELATED PARTY TRANSACTIONS 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 three and six months ended June 30, 2016, the Company made contributions of $250,000 and $500,000, respectively, to the Foundation. During the three and six months ended June 30, 2015, the Company did not make any contributions to the Foundation. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | (11) LITIGATION The Company recognizes legal expense in connection with loss contingencies as incurred. Personal Injury Lawsuits Involving Shape-ups — As previously reported, on February 20, 2011, Skechers U.S.A., Inc., Skechers U.S.A., Inc. II and Skechers Fitness Group were named as defendants in a lawsuit that alleged, among other things, that Shape-ups are defective and unreasonably dangerous, negligently designed and/or manufactured, and do not conform to representations made by the Company, and that the Company failed to provide adequate warnings of alleged risks associated with Shape-ups. In total, the Company is named as a defendant in 1,137 currently pending cases (some on behalf of multiple plaintiffs) filed in various courts that assert further varying injuries but employ similar legal theories and assert similar claims to the first case, as well as claims for breach of express and implied warranties, loss of consortium, and fraud. Although there are some variations in the relief sought, the plaintiffs generally seek compensatory and/or economic damages, exemplary and/or punitive damages, and attorneys’ fees and costs. On December 19, 2011, the Judicial Panel on Multidistrict Litigation issued an order establishing a multidistrict litigation (“MDL”) proceeding in the United States District Court for the Western District of Kentucky entitled In re Skechers Toning Shoe Products Liability Litigation, Skechers U.S.A., Inc., Skechers U.S.A., Inc. II and Skechers Fitness Group also have been named as defendants in a total of 72 personal injury actions filed in various Superior Courts of the State of California that were brought on behalf of 920 individual plaintiffs (360 of whom also submitted MDL court-approved questionnaires for mediation purposes in the MDL proceeding). Of those cases, 68 were originally filed in the Superior Court for the County of Los Angeles (the “LASC cases”). On August 20, 2014, the Judicial Council of California granted a petition by the Company to coordinate all personal injury actions filed in California that relate to Shape-ups with the LASC cases (collectively, the “LASC Coordinated Cases”). On October 6, 2014, three cases that had been pending in other counties were transferred to and coordinated with the LASC Coordinated Cases. On April 17, 2015, an additional case was transferred to and coordinated with the LASC Coordinated Cases. Thirty-five actions brought on behalf of a total of 476 plaintiffs have been settled and dismissed. The Company has also settled in principle an additional 31 actions brought on behalf of 405 plaintiffs pursuant to a global settlement program that has been approved by the plaintiffs’ attorneys (described in greater detail below). One single plaintiff lawsuit and the claims of 28 additional plaintiffs in multi-plaintiff lawsuits have been dismissed entirely either voluntarily or on motion by the Company. The claims of 21 additional persons have been dismissed in part, either voluntarily or on motions by the Company. Thus, taking into account both consummated settlements and cases subject to the settlement program, only five lawsuits on behalf of a total of ten plaintiffs are expected to remain in the LASC Coordinated Cases. Discovery is continuing in those five remaining cases. No trial dates have been set. In other state courts, a total of 12 personal injury actions (some on behalf of numerous plaintiffs) have been filed that have not been removed to federal court and transferred to the MDL. Ten of those actions have been resolved and dismissed. One of the remaining actions that includes the claims of 65 plaintiffs, has been settled in principle pursuant to a global settlement program that has been approved by the plaintiffs’ attorneys (described in greater detail below). The last remaining action in a state court other than California was recently filed in Missouri on January 4, 2016 on behalf of a single plaintiff. The Company has not yet been served in that action. With respect to the global settlement programs referenced above, the personal injury cases in the MDL and LASC Coordinated Cases and in other state courts were largely solicited and handled by the same plaintiffs law firms. Accordingly, mediations to discuss potential resolution of the various lawsuits brought by these firms were held on May 18, June 18, and July 24, 2015. At the conclusion of those mediations, the parties reached an agreement in principle on a global settlement program that is expected to resolve all or substantially all of the claims by persons represented by those firms. A master settlement agreement was executed on March 24, 2016. If a material number of individual plaintiffs fail to participate in the settlement program or the global settlement is not otherwise consummated such that the litigation proceeds, it is too early to predict the outcome of any case, whether adverse results in any single case or in the aggregate would have a material adverse impact on our operations or financial position, and whether insurance coverage will be adequate to cover any losses. The settlements have been reached for business purposes in order to end the distraction of litigation, and the Company continues to believe it has meritorious defenses and intend to defend any remaining cases vigorously. In addition, it is too early to predict whether there will be future personal injury cases filed which are not covered by the global settlement program, whether adverse results in any single case or in the aggregate would have a material adverse impact on our operations or financial position, and whether insurance coverage will be available and/or adequate to cover any losses. Converse, Inc. v. Skechers U.S.A., Inc. — On October 14, 2014, Converse filed an action against the Company in the United States District Court for the Eastern District of New York, Brooklyn Division, Case 1:14-cv-05977-DLI-MDG, alleging trademark infringement, false designation of origin, unfair competition, trademark dilution and deceptive practices arising out of the Company’s alleged use of certain design elements on footwear. The complaint seeks, among other things, injunctive relief, profits, actual damages, enhanced damages, punitive damages, costs and attorneys’ fees. On October 14, 2014, Converse also filed a complaint naming 27 respondents including the Company with the U.S. International Trade Commission (the “ITC” or “Commission”), Federal Register Doc. 2014-24890, alleging violations of federal law in the importation into and the sale within the United States of certain footwear. Converse has requested that the Commission issue a general exclusion order, or in the alternative a limited exclusion order, and cease and desist orders. On December 8, 2014, the District Court stayed the proceedings before it. On December 19, 2014, The Company responded to the ITC complaint, denying the material allegations and asserting affirmative defenses. A trial before an administrative law judge of the ITC was held in August 2015. On November 15, 2015, the ITC judge issued his interim decision finding that certain discontinued products (Daddy’$ Money and HyDee HyTops) infringed on Converse’s intellectual property, but that other, still active product lines (Twinkle Toes and BOBS Utopia) did not. On February 3, 2016, the ITC decided that it would review in part certain matters that were decided by the ITC judge. On June 28, 2016, the full ITC issued a ruling affirming that Skechers Twinkle Toe’s and Bob’s canvas shoes do not infringe Converse’s Chuck Taylor Midsole Trademark and affirming that Converse’s common law trademark was invalid. The full ITC also invalidated Converse’s registered trademark. Converse is expected to appeal to the United States Court of Appeals for the Federal Circuit. While it is too early to predict the outcome of these legal proceedings or whether an adverse result in either or both of them would have a material adverse impact on the Company’s operations or financial position, the Company believes it has meritorious defenses and intend to defend these legal matters vigorously. In accordance with U.S. GAAP, the Company records a liability in its condensed 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 condensed consolidated financial statements as of June 30, 2016, nor is it possible to estimate what litigation-related costs will be in the future. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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 generally accepted accounting principles in the United States of America (“U.S. GAAP”), 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 notes and financial presentations normally required under U.S. GAAP 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, 2015. The results of operations for the six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2016. On August 21, 2015, the Company’s board of directors approved a three-for-one stock split, effected in the form of a stock dividend, of both the Company’s Class A and Class B common stock. The stock split was made on October 16, 2015 to stockholders of record at the close of business on October 2, 2015. All share numbers and per share amounts presented in the condensed consolidated financial statements reflect the three-for-one stock split. |
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, which are considered Level 2 liabilities, approximates fair value based upon current rates and terms available to the Company for similar debt. As of August 12, 2015, the Company entered into an interest rate swap agreement concurrent with refinancing its domestic distribution center construction loan (see Note 2, Line of Credit, Short-Term and Long-Term Borrowings). The fair value of the interest rate swap was determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipt was based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with U.S. GAAP, credit valuation adjustments were incorporated to appropriately reflect both the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The majority of the inputs used to value the interest rate swap were within Level 2 of the fair value hierarchy. As of June 30, 2016 and December 31, 2015, the interest rate swap was a Level 2 derivative and was classified as other long-term liabilities on the Company’s condensed consolidated balance sheets. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements, in conformity with U.S. GAAP, 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 June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” In March 2016, the FASB issued ASU No. 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 Emerging Issues Task Force Meeting (“EITF”), Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients,” In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In July 2015, the FASB issued ASU No 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, which amended the FASB Accounting Standards Codification (“ASC”) and created a new Topic ASC 606, “ Revenue from Contracts with Customers Revenue Recognition |
Line of Credit, Short-Term an19
Line of Credit, Short-Term and Long-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | Long-term borrowings at June 30, 2016 and December 31, 2015 are as follows (in thousands): 2016 2015 Note payable to banks, due in monthly installments of $121.3 (includes principal and interest), variable-rate interest at 2.46% per annum, secured by property, balloon payment of $63,692 due August 2020 $ 68,787 $ 69,515 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 paid in full June 2016 — 13,886 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 1,041 1,194 Subtotal 69,828 84,595 Less current installments 1,775 15,653 Total long-term borrowings $ 68,053 $ 68,942 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Equity Attributable to Noncontrolling Interests | The following table reconciles equity attributable to noncontrolling interests (in thousands): Six Months Ended June 30, 2016 2015 Non-controlling interests, beginning of period $ 48,178 $ 58,858 Net earnings attributable to non-controlling interests 21,929 12,861 Foreign currency translation adjustment (603 ) (209 ) Capital contributions from non-controlling interests 2,905 485 Capital distributions to non-controlling interests (5,199 ) (2,350 ) Non-controlling interests, end of period $ 67,210 $ 69,645 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 December 31, 2015 Current assets $ 816 $ 2,111 Non-current assets 111,298 113,928 Total assets $ 112,114 $ 116,039 Current liabilities $ 2,544 $ 2,461 Non-current liabilities 69,062 69,951 Total liabilities $ 71,606 $ 72,412 Distribution joint ventures (1) June 30, 2016 December 31, 2015 Current assets $ 220,571 $ 154,060 Non-current assets 42,113 34,782 Total assets $ 262,684 $ 188,842 Current liabilities $ 99,879 $ 68,198 Non-current liabilities 65 62 Total liabilities $ 99,944 $ 68,260 (1) Distribution joint ventures include Skechers China Limited, Skechers Ltd. (Israel), Skechers Retail India Private Limited, Skechers South Asia Private Limited, Skechers Southeast Asia Limited, and Skechers Thailand Limited. |
Summary of Net Earnings Attributable to, Distribution to and Contribution from Non-controlling | The following is a summary of net earnings attributable to, distributions to and contributions from non-controlling interests (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net earnings attributable to non-controlling interests $ 9,902 $ 7,283 $ 21,929 $ 12,861 Distributions to: HF Logistics-SKX, LLC 1,210 750 2,116 1,900 Skechers China Limited — 450 3,083 450 Contributions from: India distribution joint ventures — 485 2,905 485 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 2016 2015 2016 2015 Net earnings attributable to Skechers U.S.A., Inc. $ 74,107 $ 79,782 $ 171,719 $ 135,862 Weighted average common shares outstanding 154,049 152,712 153,901 152,565 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 0.48 $ 0.52 $ 1.12 $ 0.89 |
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 2016 2015 2016 2015 Net earnings attributable to Skechers U.S.A., Inc. $ 74,107 $ 79,782 $ 171,719 $ 135,862 Weighted average common shares outstanding 154,049 152,712 153,901 152,565 Dilutive effect of nonvested shares 974 1,315 1,011 1,213 Weighted average common shares outstanding 155,023 154,027 154,912 153,778 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 0.48 $ 0.52 $ 1.11 $ 0.88 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 the Company’s nonvested shares related to the 2007 Incentive Award Plan (the “2007 Plan”), as of and for the six months ended June 30, 2016 is presented below: Shares Weighted Average Grant-Date Fair Value Nonvested at December 31, 2015 2,725,500 $ 15.77 Granted 1,434,000 31.75 Vested (468,000 ) 9.88 Cancelled (12,000 ) 17.47 Nonvested at June 30, 2016 3,679,500 22.74 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015 were as follows (in thousands, except the effective tax rate): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Income tax expense $ 12,200 $ 25,383 $ 42,768 $ 44,503 Effective tax rate 12.7 % 22.6 % 18.1 % 23.0 % |
Business and Credit Concentra25
Business and Credit Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Manufacturer #1 25.1 % 32.8 % 25.6 % 33.5 % Manufacturer #2 10.4 % 7.5 % 10.7 % 7.9 % Manufacturer #3 8.9 % 7.4 % 9.6 % 7.2 % Manufacturer #4 6.6 % 6.9 % 5.4 % 5.7 % Manufacturer #5 5.0 % 3.5 % 4.2 % 3.9 % 56.0 % 58.1 % 55.5 % 58.2 % |
Segment and Geographic Report26
Segment and Geographic Reporting Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 sales segments on a combined basis were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net sales: Domestic wholesale $ 320,498 $ 338,646 $ 680,768 $ 659,975 International wholesale 303,432 241,872 723,467 527,443 Retail 253,880 219,946 452,369 381,043 Total $ 877,810 $ 800,464 $ 1,856,604 $ 1,568,461 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Gross profit: Domestic wholesale $ 124,656 $ 135,062 $ 265,171 $ 260,793 International wholesale 139,288 103,771 315,308 217,148 Retail 152,310 135,775 267,927 229,207 Total $ 416,254 $ 374,608 $ 848,406 $ 707,148 June 30, 2016 December 31, 2015 Identifiable assets: Domestic wholesale $ 1,140,427 $ 1,086,554 International wholesale 879,135 713,424 Retail 271,870 239,900 Total $ 2,291,432 $ 2,039,878 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Additions to property, plant and equipment: Domestic wholesale $ 1,096 $ 3,729 $ 11,232 $ 9,417 International wholesale 5,695 4,971 21,674 8,526 Retail 13,045 9,681 22,128 15,061 Total $ 19,836 $ 18,381 $ 55,034 $ 33,004 |
Geographic Information | Geographic Information: The following summarizes the Company’s operations in different geographic areas for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net Sales (1) United States $ 509,902 $ 512,705 $ 1,022,139 $ 965,869 Canada 34,433 27,641 71,501 50,883 Other international (2) 333,475 260,118 762,964 551,709 Total $ 877,810 $ 800,464 $ 1,856,604 $ 1,568,461 June 30, 2016 December 31, 2015 Property, plant and equipment, net: United States $ 363,825 $ 356,704 Canada 9,679 8,447 Other international (2) 90,899 70,756 Total $ 464,403 $ 435,907 (1) The Company has subsidiaries in Asia, Central America, Europe, North America, and South America that generate net sales within those respective regions and in some cases the neighboring regions. The Company also has joint ventures in Asia that generate net sales from those regions. 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. External net sales are attributable to geographic regions based on the location of each of the Company’s subsidiaries. A subsidiary may earn revenue from external net sales and external royalties, or from inter-subsidiary net sales, royalties, fees and commissions provided in accordance with certain inter-subsidiary agreements. The resulting earnings of each subsidiary in its respective country are recognized under each respective country’s tax code. Inter-subsidiary revenues and expenses subsequently are eliminated in the Company’s condensed consolidated financial statements and are not included as part of the external net sales reported in different geographic areas. (2) Other international includes Asia, Central America, Europe, North America, and South America. |
Non-Controlling Interests - Car
Non-Controlling Interests - Carrying Amounts and Classification of Assets and Liabilities for VIEs (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 1,765,938 | $ 1,548,192 |
Non-current assets | 525,494 | 491,686 |
TOTAL ASSETS | 2,291,432 | 2,039,878 |
Current liabilities | 610,890 | 577,013 |
Non-current liabilities | 88,851 | 87,131 |
Total liabilities | 699,741 | 664,144 |
Variable interest entity, primary beneficiary [Member] | HF Logistics-SKX, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 816 | 2,111 |
Non-current assets | 111,298 | 113,928 |
TOTAL ASSETS | 112,114 | 116,039 |
Current liabilities | 2,544 | 2,461 |
Non-current liabilities | 69,062 | 69,951 |
Total liabilities | 71,606 | 72,412 |
Variable interest entity, primary beneficiary [Member] | Distribution joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 220,571 | 154,060 |
Non-current assets | 42,113 | 34,782 |
TOTAL ASSETS | 262,684 | 188,842 |
Current liabilities | 99,879 | 68,198 |
Non-current liabilities | 65 | 62 |
Total liabilities | $ 99,944 | $ 68,260 |
General - Additional Informatio
General - Additional Information (Detail) | Aug. 21, 2015 | Jun. 30, 2016 |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Derivative effective dates | Aug. 12, 2015 | |
Class A and Class B Common Stock [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Common stock split ratio | 3 | |
Dividend payable date to common stock shareholders | Oct. 16, 2015 | |
Dividend record date on common stock | Oct. 2, 2015 |
Line of Credit, Short-Term an29
Line of Credit, Short-Term and Long-Term Borrowings - Additional Information (Detail) - USD ($) | Aug. 21, 2015 | Dec. 29, 2010 | Jun. 30, 2016 | Dec. 31, 2015 | Aug. 11, 2015 | Jun. 30, 2015 | Nov. 16, 2012 | Jun. 30, 2011 | Apr. 30, 2010 |
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit | $ 2,000,000 | $ 4,000,000 | |||||||
Short-term borrowings | $ 3,274,000 | 59,000 | |||||||
Derivative effective dates | Aug. 12, 2015 | ||||||||
Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | Interest Rate Swap [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swap agreement date | Aug. 14, 2015 | ||||||||
Derivative effective dates | Aug. 12, 2015 | ||||||||
Maturity date of swap agreement | Aug. 12, 2022 | ||||||||
Derivative early termination date | Aug. 1, 2020 | ||||||||
Effective fixed interest rate of loan with swap | 4.08% | ||||||||
Original Modified Loan [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument maturity date | Oct. 30, 2015 | ||||||||
Maximum limit of Master Agreement for long-term debt | $ 80,000,000 | ||||||||
Term of Master Agreement for long-term debt | 60 months | ||||||||
Modification Loan [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument maturity date | Aug. 12, 2020 | ||||||||
Outstanding principal balance of the original loan | $ 77,300,000 | ||||||||
Capital contribution made by the company | $ 38,700,000 | ||||||||
Ownership percentage joint venture | 50.00% | ||||||||
Current borrowing capacity | $ 70,000,000 | ||||||||
Payment of accrued interest, loan fees and other closing costs | $ 900,000 | ||||||||
Distribution made by JV | $ 31,300,000 | ||||||||
Description of maturity date of debt instrument | The maturity date of the New Loan is August 12, 2020, which HF-T1 has one option to extend by an additional 24 months, or until August 12, 2022, upon payment of a fee and satisfaction of certain customary conditions | ||||||||
First Note [Member] | Equipment Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing under Master Agreement for long-term debt | $ 39,300,000 | ||||||||
Fixed interest rate of note payable | 3.54% | ||||||||
Second Note [Member] | Equipment Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed interest rate of note payable | 3.19% | ||||||||
Borrowing limit under new agreement | $ 36,300,000 | ||||||||
LIBOR Loans [Member] | Modification Loan [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of line of credit agreement | 2.00% | ||||||||
Debt instrument basis spread on variable rate | LIBOR Daily Floating Rate (as defined in the Amended Loan Agreement) plus a margin of 2% | ||||||||
Maximum [Member] | Equipment Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing under loan agreement | $ 80,000,000 | ||||||||
Maximum [Member] | Original Loan [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing under loan agreement | $ 55,000,000 | ||||||||
Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount of credit facility | $ 250,000,000 | ||||||||
Maturity date of credit agreement | Jun. 30, 2020 | ||||||||
Line of credit facility, interest rate | Borrowings bear interest at the Company’s 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% | ||||||||
Debt closing and arrangement fees | $ 1,100,000 | ||||||||
Line of credit facility, expiration period | 5 years | ||||||||
Line of credit facility, outstanding amount | $ 3,300,000 | $ 59,000 | |||||||
Line of Credit [Member] | Federal Funds Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of line of credit agreement | 0.50% | ||||||||
Line of Credit [Member] | LIBOR Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of line of credit agreement | 1.00% | ||||||||
Line of Credit [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, increase | $ 100,000,000 |
Line of Credit, Short-Term an30
Line of Credit, Short-Term and Long-Term Borrowings - Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 69,828 | $ 84,595 |
Less current installments | 1,775 | 15,653 |
Total long-term borrowings | 68,053 | 68,942 |
Modification Loan [Member] | Construction Loan Agreement [Member] | Joint Venture with HF Logistics [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 68,787 | 69,515 |
Second Note [Member] | Equipment Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 13,886 | |
Notes payable to TCF Finance [Member] | Equipment Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 1,041 | $ 1,194 |
Line of Credit, Short-Term an31
Line of Credit, Short-Term and Long-Term Borrowings - Long-Term Borrowings (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Equipment Notes [Member] | Second Note [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, paid | $ 11,670,000 |
Due date for note payable | 2016-06 |
Frequency of periodic payment | Monthly |
Equipment Notes [Member] | Notes payable to TCF Finance [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 |
Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | Modification Loan [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | $ 121,300 |
Variable interest rate of note payable | 2.46% |
Balloon payment required under note payable | $ 63,692,000 |
Due date for note payable | 2020-08 |
Frequency of periodic payment | Monthly |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Class B Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Certain Class B stockholders converted into Class A | 682,408 | 2,456,730 | 1,733,270 | 3,223,296 |
Class A Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Shares issued as a part of conversion | 682,408 | 2,456,730 | 1,733,270 | 3,223,296 |
Stockholders' Equity - Equity A
Stockholders' Equity - Equity Attributable to Noncontrolling Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | ||||
Non-controlling interests, beginning of period | $ 48,178 | $ 58,858 | ||
Net earnings attributable to non-controlling interests | $ 9,902 | $ 7,283 | 21,929 | 12,861 |
Foreign currency translation adjustment | (603) | (209) | ||
Capital contributions from non-controlling interests | 2,905 | 485 | ||
Capital distributions to non-controlling interests | (5,199) | (2,350) | ||
Non-controlling interests, end of period | $ 67,210 | $ 69,645 | $ 67,210 | $ 69,645 |
Non-Controlling Interests - Sum
Non-Controlling Interests - Summary of Net Earnings Attributable to, Distribution to and Contribution from Non-controlling (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Variable Interest Entity [Line Items] | ||||
Less: Net earnings attributable to non-controlling interests | $ 9,902 | $ 7,283 | $ 21,929 | $ 12,861 |
Distributions to non-controlling interests of consolidated entity | 5,199 | 2,350 | ||
Contributions from non-controlling interests of consolidated entity | 2,905 | 485 | ||
HF Logistics-SKX, LLC [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | $ 1,210 | 750 | 2,116 | 1,900 |
Skechers China Limited [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | 450 | 3,083 | 450 | |
India Distribution Joint Ventures [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Contributions from non-controlling interests of consolidated entity | $ 485 | $ 2,905 | $ 485 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016 | |
Class A Common Stock [Member] | |
Earnings Per Share [Line Items] | |
Common stock, voting rights | One vote per share |
Class B Common Stock [Member] | |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic earnings per share | ||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 74,107 | $ 79,782 | $ 171,719 | $ 135,862 |
Weighted average common shares outstanding | 154,049 | 152,712 | 153,901 | 152,565 |
Basic earnings per share attributable to Skechers U.S.A., Inc. | $ 0.48 | $ 0.52 | $ 1.12 | $ 0.89 |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Diluted earnings per share | ||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 74,107 | $ 79,782 | $ 171,719 | $ 135,862 |
Weighted average common shares outstanding | 154,049 | 152,712 | 153,901 | 152,565 |
Dilutive effect of nonvested shares | 974 | 1,315 | 1,011 | 1,213 |
Weighted average common shares outstanding | 155,023 | 154,027 | 154,912 | 153,778 |
Diluted earnings per share attributable to Skechers U.S.A., Inc. | $ 0.48 | $ 0.52 | $ 1.11 | $ 0.88 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Share-based compensation expense | $ 6.2 | $ 4.5 | $ 10.9 | $ 8.9 |
Unrecognized compensation cost related to nonvested common shares | $ 68.3 | $ 68.3 | ||
Weighted average period for recognition of cost | 2 years 4 months 24 days |
Stock Compensation - Summary of
Stock Compensation - Summary of Nonvested Shares Related to Equity Incentive Plans (Detail) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Nonvested, Shares, Beginning of Period | shares | 2,725,500 |
Granted, Shares | shares | 1,434,000 |
Vested, Shares | shares | (468,000) |
Cancelled, Shares | shares | (12,000) |
Nonvested, Shares, End of Period | shares | 3,679,500 |
Nonvested, Weighted Average Grant-Date Fair Value | $ / shares | $ 15.77 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 31.75 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 9.88 |
Cancelled, Weighted Average Grant-Date Fair Value | $ / shares | 17.47 |
Nonvested, Weighted Average Grant-Date Fair Value | $ / shares | $ 22.74 |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 12,200 | $ 25,383 | $ 42,768 | $ 44,503 |
Effective tax rate | 12.70% | 22.60% | 18.10% | 23.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Income Taxes [Line Items] | ||||||
Effective tax rate | 12.70% | 22.60% | 18.10% | 23.00% | ||
U.S. federal and state statutory rate | 39.00% | |||||
Cash and cash equivalents | $ 628,827 | $ 513,902 | $ 628,827 | $ 513,902 | $ 507,991 | $ 466,685 |
Non-US [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Cash and cash equivalents | 332,000 | $ 332,000 | ||||
Non-US [Member] | Geographic concentration risk [Member] | Cash and Cash Equivalents Geographical Area [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Percentage of cash and cash equivalents | 52.80% | |||||
Non-US [Member] | Funds Available For Repatriation [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Cash and cash equivalents | $ 70,300 | $ 70,300 | ||||
Minimum [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Effective tax rate | 17.00% | |||||
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 | 22.00% | |||||
Maximum [Member] | Non-U.S jurisdictions [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Statutory federal rate | 34.00% |
Business and Credit Concentra42
Business and Credit Concentrations - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)Customer | Jun. 30, 2015USD ($)Customer | Jun. 30, 2016USD ($)Customer | Jun. 30, 2015USD ($)Customer | Dec. 31, 2015USD ($)Customer | |
Concentration Risk [Line Items] | |||||
Credit losses attributable to write-offs (recoveries) | $ | $ 1.5 | $ (0.4) | $ 4 | $ 0.7 | |
Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of largest customers | Customer | 5 | 5 | 5 | 5 | |
Percentage of concentration risk | 11.80% | 15.90% | 12.70% | 16.30% | |
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 | |||
Gross Trade Receivable [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of concentration risk | 10.60% | ||||
Number of customers accounting for more than 10% | Customer | 1 | ||||
Domestic [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ | $ 258.2 | $ 258.2 | $ 180.2 | ||
Non-US [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ | 237 | 237 | 188 | ||
Net total assets held outside the United States | $ | $ 945.3 | $ 945.3 | $ 773.5 |
Business and Credit Concentra43
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Concentration Risk [Line Items] | ||||
Percentage of total production | 56.00% | 58.10% | 55.50% | 58.20% |
Manufacturer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 25.10% | 32.80% | 25.60% | 33.50% |
Manufacturer Two [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 10.40% | 7.50% | 10.70% | 7.90% |
Manufacturer Three [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 8.90% | 7.40% | 9.60% | 7.20% |
Manufacturer Four [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 6.60% | 6.90% | 5.40% | 5.70% |
Manufacturer Five [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 5.00% | 3.50% | 4.20% | 3.90% |
Segment and Geographic Report44
Segment and Geographic Reporting Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment and Geographic Report45
Segment and Geographic Reporting Information - Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Net sales, Total | $ 877,810 | $ 800,464 | $ 1,856,604 | $ 1,568,461 | |
Gross profit | 416,254 | 374,608 | 848,406 | 707,148 | |
Identifiable assets | 2,291,432 | 2,291,432 | $ 2,039,878 | ||
Additions to property, plant and equipment | 19,836 | 18,381 | 55,034 | 33,004 | |
Domestic wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 320,498 | 338,646 | 680,768 | 659,975 | |
Gross profit | 124,656 | 135,062 | 265,171 | 260,793 | |
Identifiable assets | 1,140,427 | 1,140,427 | 1,086,554 | ||
Additions to property, plant and equipment | 1,096 | 3,729 | 11,232 | 9,417 | |
International wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 303,432 | 241,872 | 723,467 | 527,443 | |
Gross profit | 139,288 | 103,771 | 315,308 | 217,148 | |
Identifiable assets | 879,135 | 879,135 | 713,424 | ||
Additions to property, plant and equipment | 5,695 | 4,971 | 21,674 | 8,526 | |
Retail [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 253,880 | 219,946 | 452,369 | 381,043 | |
Gross profit | 152,310 | 135,775 | 267,927 | 229,207 | |
Identifiable assets | 271,870 | 271,870 | $ 239,900 | ||
Additions to property, plant and equipment | $ 13,045 | $ 9,681 | $ 22,128 | $ 15,061 |
Segment and Geographic Report46
Segment and Geographic Reporting Information - Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Net Sales | |||||
Net sales, Total | $ 877,810 | $ 800,464 | $ 1,856,604 | $ 1,568,461 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 464,403 | 464,403 | $ 435,907 | ||
Domestic [Member] | |||||
Net Sales | |||||
Net sales, Total | 509,902 | 512,705 | 1,022,139 | 965,869 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 363,825 | 363,825 | 356,704 | ||
Canada [Member] | |||||
Net Sales | |||||
Net sales, Total | 34,433 | 27,641 | 71,501 | 50,883 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 9,679 | 9,679 | 8,447 | ||
Other international [Member] | |||||
Net Sales | |||||
Net sales, Total | 333,475 | $ 260,118 | 762,964 | $ 551,709 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | $ 90,899 | $ 90,899 | $ 70,756 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Management [Member] | ||
Related Party Transaction [Line Items] | ||
Contribution to Skechers Foundation for various charitable purposes | $ 250,000 | $ 500,000 |
Litigation - Additional Informa
Litigation - Additional Information (Detail) | Apr. 17, 2015CasePlaintiff | Jun. 30, 2016CaseClaimPlaintiffSettlementQuestionnaire | Jun. 30, 2016CaseClaim | Oct. 06, 2014Case |
Loss Contingencies [Line Items] | ||||
Number of personal injury cases filed | 12 | |||
Number of personal Injury cases settled | Claim | 1,328 | |||
Skechers U.S.A., Inc., Skechers U.S.A., Inc. II and Skechers Fitness Group [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of claim dismissed in part | 21 | |||
Filed As Formal Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of personal Injury cases settled | Claim | 1,097 | |||
Plaintiff Fact Sheets [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of personal injury cases filed | 414 | |||
Number of personal Injury cases settled | Claim | 231 | |||
Number of unfiled claims abandoned | Claim | 38 | |||
Superior Courts of the State of California [Member] | Skechers U.S.A., Inc., Skechers U.S.A., Inc. II and Skechers Fitness Group [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of personal injury cases filed | 72 | |||
Number of claims plaintiffs | Plaintiff | 920 | |||
LASC Coordinated Cases [Member] | Skechers U.S.A., Inc., Skechers U.S.A., Inc. II and Skechers Fitness Group [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of pending cases | 5 | 5 | 3 | |
Number of claims plaintiffs | Plaintiff | 476 | 68 | ||
Number claims settled and dismissed | 35 | |||
Number of plaintiffs proceeding | Plaintiff | 10 | |||
LASC Coordinated Cases [Member] | Skechers U.S.A., Inc., Skechers U.S.A., Inc. II and Skechers Fitness Group [Member] | Settled Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of personal Injury cases settled | 31 | |||
Number of claims plaintiffs | Plaintiff | 405 | |||
Personal Injury Lawsuits Involving Shapeups [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of pending cases | 1,137 | 1,137 | ||
MDL [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of pending cases | 2 | 2 | ||
Number of personal injury cases filed | 1,235 | |||
Number of personal Injury cases settled | Claim | 485 | |||
Number of cases in dismissed | 42 | |||
MDL [Member] | Settled Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of claims plaintiffs | SettlementQuestionnaire | 65 | |||
Number claims settled and dismissed | Claim | 10 | |||
MDL [Member] | Filed As Formal Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of personal Injury cases settled | Claim | 94 | |||
MDL [Member] | Plaintiff Fact Sheets [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of personal Injury cases settled | Claim | 391 | |||
MDL [Member] | Superior Courts of the State of California [Member] | Skechers U.S.A., Inc., Skechers U.S.A., Inc. II and Skechers Fitness Group [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of claims plaintiffs | Plaintiff | 360 | |||
Single Plaintiff Lawsuit [Member] | Skechers U.S.A., Inc., Skechers U.S.A., Inc. II and Skechers Fitness Group [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases in dismissed | 1 | |||
Multi-Plaintiff Lawsuits [Member] | Skechers U.S.A., Inc., Skechers U.S.A., Inc. II and Skechers Fitness Group [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases in dismissed | 28 |