Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | 135,799,652 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,163,312 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 700,071 | $ 736,431 |
Trade accounts receivable, less allowances of $19,885 in 2018 and $51,180 in 2017 | 692,569 | 405,921 |
Other receivables | 31,271 | 27,083 |
Total receivables | 723,840 | 433,004 |
Inventories | 800,323 | 873,016 |
Prepaid expenses and other current assets | 68,920 | 62,573 |
Total current assets | 2,293,154 | 2,105,024 |
Property, plant and equipment, net | 552,540 | 541,601 |
Deferred tax assets | 29,575 | 29,922 |
Other assets, net | 60,715 | 58,535 |
Total non-current assets | 642,830 | 630,058 |
TOTAL ASSETS | 2,935,984 | 2,735,082 |
Current liabilities: | ||
Current installments of long-term borrowings | 1,805 | 1,801 |
Short-term borrowings | 12,200 | 8,011 |
Accounts payable | 524,427 | 505,334 |
Accrued expenses | 135,588 | 82,202 |
Total current liabilities | 674,020 | 597,348 |
Long-term borrowings, excluding current installments | 70,646 | 71,103 |
Deferred tax liabilities | 161 | 161 |
Other long-term liabilities | 107,832 | 118,259 |
Total non-current liabilities | 178,639 | 189,523 |
Total liabilities | 852,659 | 786,871 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 450,377 | 453,417 |
Accumulated other comprehensive loss | (12,250) | (14,744) |
Retained earnings | 1,507,887 | 1,390,235 |
Skechers U.S.A., Inc. equity | 1,946,170 | 1,829,064 |
Non-controlling interests | 137,155 | 119,147 |
Total stockholders' equity | 2,083,325 | 1,948,211 |
TOTAL LIABILITIES AND EQUITY | 2,935,984 | 2,735,082 |
Class A Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | 132 | 132 |
Class B Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | $ 24 | $ 24 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Trade accounts receivable, allowances | $ 19,885 | $ 51,180 |
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 | 132,414,000 | 131,784,000 |
Common Stock, shares outstanding | 132,414,000 | 131,784,000 |
Class B 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 | 24,163,000 | 24,545,000 |
Common Stock, shares outstanding | 24,163,000 | 24,545,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 1,250,078 | $ 1,072,808 |
Cost of sales | 666,974 | 596,310 |
Gross profit | 583,104 | 476,498 |
Royalty income | 5,522 | 4,230 |
Operating income | 588,626 | 480,728 |
Operating expenses: | ||
Selling | 84,446 | 73,809 |
General and administrative | 355,381 | 282,496 |
Operating expenses | 439,827 | 356,305 |
Earnings from operations | 148,799 | 124,423 |
Other income (expense): | ||
Interest income | 755 | 413 |
Interest expense | (1,078) | (1,490) |
Other, net | 3,403 | 696 |
Total other income (expense) | 3,080 | (381) |
Earnings before income tax expense | 151,879 | 124,042 |
Income tax expense | 14,621 | 17,407 |
Net earnings | 137,258 | 106,635 |
Less: Net earnings attributable to non-controlling interests | 19,606 | 12,640 |
Net earnings attributable to Skechers U.S.A., Inc. | $ 117,652 | $ 93,995 |
Net earnings per share attributable to Skechers U.S.A., Inc.: | ||
Basic | $ 0.75 | $ 0.61 |
Diluted | $ 0.75 | $ 0.60 |
Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc.: | ||
Basic | 156,433 | 155,097 |
Diluted | 157,630 | 155,927 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net earnings | $ 137,258 | $ 106,635 |
Other comprehensive income, net of tax: | ||
Gain on foreign currency translation adjustment | 5,333 | 4,583 |
Comprehensive income | 142,591 | 111,218 |
Less: Comprehensive income attributable to non-controlling interests | 22,445 | 14,323 |
Comprehensive income attributable to Skechers U.S.A., Inc. | $ 120,146 | $ 96,895 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 137,258 | $ 106,635 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property, plant and equipment | 24,175 | 18,879 |
Amortization of other assets | 3,001 | 3,454 |
Provision for bad debts and returns | 13,571 | 11,988 |
Non-cash share-based compensation | 8,678 | 6,628 |
Deferred income taxes | 435 | |
Gain (loss) on non-current assets | 17 | (585) |
Net foreign currency adjustments | (469) | (492) |
(Increase) decrease in assets: | ||
Receivables | (275,837) | (233,676) |
Inventories | 79,926 | 117,963 |
Prepaid expenses and other current assets | (7,910) | (180) |
Other assets | (711) | (4,087) |
Increase (decrease) in liabilities: | ||
Accounts payable | 11,097 | (98,279) |
Accrued expenses and other long-term liabilities | 10,307 | (12,653) |
Net cash provided by (used in) operating activities | 3,538 | (84,405) |
Cash flows from investing activities: | ||
Capital expenditures | (34,464) | (28,882) |
Purchases of investments | (1,468) | (684) |
Proceeds from sales of investments | 347 | 240 |
Net cash used in investing activities | (35,585) | (29,326) |
Cash flows from financing activities: | ||
Payments on long-term debt | (458) | (444) |
Proceeds from long-term debt | 2,065 | |
Proceeds (payments) from short-term borrowings | 4,189 | (219) |
Payments for taxes related to net share settlement of equity awards | (8,718) | |
Distributions to non-controlling interests of consolidated entity | (4,437) | (892) |
Contributions from non-controlling interests of consolidated entity | 46 | |
Net cash provided by (used in) financing activities | (12,424) | 556 |
Net decrease in cash and cash equivalents | (44,471) | (113,175) |
Effect of exchange rates on cash and cash equivalents | 8,111 | 2,452 |
Cash and cash equivalents at beginning of the period | 736,431 | 718,536 |
Cash and cash equivalents at end of the period | 700,071 | 607,813 |
Cash paid during the period for: | ||
Interest | 1,080 | 1,455 |
Income taxes, net | 16,283 | $ 10,538 |
Class A Common Stock [Member] | ||
Cash flows from financing activities: | ||
Repurchase of Class A common stock | $ (3,000) |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2018. Inventories Inventories, principally finished goods, are stated at the lower of cost (based on the first-in, first-out method) or market (net realizable value). Cost includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. The Company provides for estimated losses from obsolete or slow-moving inventories, and writes down the cost of inventory at the time such determinations are made. Reserves are estimated based on inventory on hand, historical sales activity, industry trends, the retail environment, and the expected net realizable value. The net realizable value is determined using estimated sales prices of similar inventory through off-price or discount store channels. 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 short-term and 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). 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 March 31, 2018 and December 31, 2017, the interest rate swap was a Level 2 derivative and HF Logistics is responsible for any amounts related to the interest rate swap agreement. 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 when control of the promised goods or services is transferred to its customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company derives income from the sale of footwear and royalties earned from licensing the Skechers brand. For North America, goods are shipped Free on Board (“FOB”) shipping point directly from the Company’s domestic distribution center in Rancho Belago, California. For international wholesale customers product is shipped FOB shipping point, (i) direct from the Company’s distribution center in Liege, Belgium, (ii) to third-party distribution centers in Central America, South America and Asia, (iii) directly from third-party manufacturers to our other international customers. For our distributor sales, the goods are generally delivered directly from the independent factories to third-party distribution centers or to our distributors’ freight forwarders on a Free Named Carrier (“FCA”) basis. The Company recognizes revenue on wholesale sales upon shipment as that is when the customer obtains control of the promised goods. are accounted for as a fulfillment cost and not as a separate performance obligation. The Company records accounts receivable at the time of shipment when the Company’s right to the consideration becomes unconditional. The Company typically extends credit terms to our wholesale customers based on their creditworthiness and generally does not receive advance payments. Generally, wholesale customers do not have the right to return goods, however, the Company periodically decides to accept returns or provide customers with credits. Allowances for estimated returns, discounts, doubtful accounts and chargebacks are provided for when related revenue is recorded. Retail and e-commerce sales represent amounts due from credit card companies and are generally collected within a few days of the purchase. As such, the Company has determined that no allowance for doubtful accounts is necessary. The Company earns royalty income from its licensing arrangements which qualify as symbolic licenses rather than functional licenses. Upon signing a new licensing agreement, we receive up-front fees, which are generally characterized as prepaid royalties. These fees are initially deferred and recognized as revenue as earned (i.e., as licensed sales are reported to the Company or on a straight-line basis over the term of the agreement). The first calculated royalty payment is based on actual sales of the licensed product or, in some cases, minimum royalty payments. The Company calculates and accrues estimated royalties based on the agreement terms and correspondence with the licensees regarding actual sales. Judgments The Company considered several factors in determining that control transfers to the customer upon shipment of products. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership at the time of shipment. The Company accrues a reserve for product returns at the time of sale based on our historical experience. The Company also accrues amounts for goods expected to be returned in salable condition. As of March 31, 2018 and December 31, 2017, the Company’s sales returns reserve totaled $30.7 million and $43.4 million, respectively, and was included in other accrued liabilities and accounts receivable in the condensed consolidated balance sheet, respectively. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 “ Revenue from Contracts with Customers Revenue from Contracts with Customers Revenue Recognition These ASU’s also require enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” In October 2016, the FASB issued ASU No. 2016-16, “ Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory |
Line of Credit, Short-Term and
Line of Credit, Short-Term and Long-Term Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Line of Credit, Short-Term and Long-Term Borrowings | (2) LINE OF CREDIT, SHORT-TERM AND LONG-TERM BORROWINGS The Company had $4.4 million of outstanding letters of credit as of March 31, 2018 and December 31, 2017, respectively, and approximately $12.2 million and $8.0 million in short-term borrowings as of March 31, 2018 and December 31, 2017, respectively. Long-term borrowings at March 31, 2018 and December 31, 2017 are as follows (in thousands): 2018 2017 Note payable to banks, due in monthly installments of $337.1 (includes principal and interest), variable-rate interest at 3.88% per annum, secured by property, balloon payment of $62,843 due August 2020 $ 66,240 $ 66,604 Note payable to Luen Thai Enterprise, Ltd., balloon payment of $5,741 due January 2021 5,741 5,745 Note payable to TCF Equipment Finance, Inc., due in monthly installments of $31 (includes principal and interest), fixed- rate interest at 5.24% per annum, due July 2019 470 555 Subtotal 72,451 72,904 Less current installments 1,805 1,801 Total long-term borrowings $ 70,646 $ 71,103 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 March 31, 2018. 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. As of March 31, 2018 and December 31, 2017, there was $0.1 million outstanding under the Company’s credit facilities, classified as short-term borrowings in the Company’s condensed consolidated balance sheets. The remaining balance in short-term borrowings, as of March 31, 2018, is related to the Company’s international operations. 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, and 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 fixes the effective interest rate of the New Loan at 4.08% per annum. 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 consolidated statement of equity within non-controlling interests. 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. |
Non-Controlling Interests
Non-Controlling Interests | 3 Months Ended |
Mar. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | (3) 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 2018 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 March 31, 2018 December 31, 2017 Current assets $ 2,474 $ 1,540 Non-current assets 102,093 103,407 Total assets $ 104,567 $ 104,947 Current liabilities $ 3,155 $ 2,718 Non-current liabilities 65,914 66,367 Total liabilities $ 69,069 $ 69,085 Distribution joint ventures (1) March 31, 2018 December 31, 2017 Current assets $ 490,142 $ 389,687 Non-current assets 89,940 90,972 Total assets $ 580,082 $ 480,659 Current liabilities $ 250,847 $ 188,700 Non-current liabilities 6,072 9,201 Total liabilities $ 256,919 $ 197,901 _____________________ (1) Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, Skechers Retail India Private Limited, and Skechers South Asia Private Limited. The following is a summary of net earnings attributable to, distributions to and contributions from non-controlling interests (in thousands): Three Months Ended March 31, 2018 2017 Net earnings attributable to non-controlling interests $ 19,606 $ 12,640 Distributions to: HF Logistics-SKX, LLC 1,327 892 Skechers China Limited 3,110 — Contributions from: Skechers Footwear Ltd. (Israel) — 46 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | (4) STOCKHOLDERS’ EQUITY During the three months ended March 31, 2018, 381,876 shares of Class B common stock were converted into shares of Class A common stock. During the three months ended March 31, 2017, no shares of Class B common stock were converted into shares of Class A common stock. The following table reconciles equity attributable to non-controlling interests (in thousands): Three Months Ended March 31, 2018 2017 Non-controlling interests, beginning of period $ 119,147 $ 81,881 Net earnings 19,606 12,640 Foreign currency translation adjustment 2,839 1,683 Capital contributions — 46 Capital distributions (4,437 ) (892 ) Non-controlling interests, end of period $ 137,155 $ 95,358 |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2018 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | (5) SHARE REPURCHASE PROGRAM On February 6, 2018, the Company's Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which the Company may, from time to time, purchase shares of its Class A common stock, par value $0.001 per share (“Class A common stock”), for an aggregate repurchase price not to exceed $150.0 million. The Share Repurchase Program expires on February 6, 2021. Share repurchases may be executed through various means, including, without limitation, open market transactions, privately negotiated transactions or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements and other relevant factors. The Share Repurchase Program does not obligate the Company to acquire any particular amount of shares of Class A common stock and the program may be suspended or discontinued at any time. The following table provides a summary of the Company’s stock repurchase activities during the three months ended March 31, 2018: March 31, 2018 Shares repurchased 75,991 Average cost per share $ 39.47 Total cost of shares repurchased $ 3,000,000 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (6) 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 March 31, Basic earnings per share 2018 2017 Net earnings attributable to Skechers U.S.A., Inc. $ 117,652 $ 93,995 Weighted average common shares outstanding 156,433 155,097 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 0.75 $ 0.61 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 March 31, Diluted earnings per share 2018 2017 Net earnings attributable to Skechers U.S.A., Inc. $ 117,652 $ 93,995 Weighted average common shares outstanding 156,433 155,097 Dilutive effect of nonvested shares 1,197 830 Weighted average common shares outstanding 157,630 155,927 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 0.75 $ 0.60 There were 190,364 and 126,636 shares excluded from the computation of diluted earnings per share for the three months ended March 31, 2018 and 2017, respectively because they are anti-dilutive. |
Stock Compensation
Stock Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation | (7) STOCK COMPENSATION (a) Incentive Award Plan On April 16, 2007, the Company’s Board of Directors adopted the 2007 Incentive Award Plan (the “2007 Plan”), which became effective upon approval by the Company’s stockholders on May 24, 2007 and expired pursuant to its terms on May 24, 2017. On April 17, 2017, the Company’s Board of Directors adopted the 2017 Incentive Award Plan (the “2017 Plan”), which became effective upon approval by the Company’s stockholders on May 23, 2017. The 2017 Plan replaced and superseded in its entirety the 2007 Plan. A total of 10,000,000 shares of Class A Common Stock are reserved for issuance under the 2017 Plan, which provides for grants of ISOs, non-qualified stock options, restricted stock and various other types of equity awards as described in the plan to the employees, consultants and directors of the Company and its subsidiaries. The 2017 Plan is administered by the Company’s Board of Directors with respect to awards to non-employee directors and by the Company’s Compensation Committee with respect to other eligible participants. For stock-based awards, the Company recognized compensation expense based on the grant date fair value. Share‑based compensation expense was $8.7 million and $6.6 million for the three months ended March 31, 2018 and 2017, respectively. During the quarter ended March 31, 2018, the Company redeemed 212,930 shares of Class A Common Stock for $8.7 million to satisfy employee tax withholding requirements. A summary of the status and changes of the Company’s nonvested shares related to the 2007 Plan and the 2017 Plan, as of and for the three months ended March 31, 2018 is presented below: Shares Weighted Average Grant-Date Fair Value Nonvested at December 31, 2017 2,303,557 $ 26.25 Granted 1,637,500 39.00 Vested (537,500 ) 18.93 Cancelled (18,333 ) 30.89 Nonvested at March 31, 2018 3,385,224 33.55 As of March 31, 2018, there was $92.4 million of unrecognized compensation cost related to nonvested common shares. The cost is expected to be amortized over a weighted average period of 3.0 years. (b) Stock Purchase Plan On April 17, 2017, the Company’s Board of Directors adopted the 2018 Employee Stock Purchase Plan (the “2018 ESPP”), which the Company’s stockholders approved on May 23, 2017. The 2018 Employee Stock Purchase Plan provides eligible employees of the Company and its subsidiaries with the opportunity to purchase shares of the Company’s Class A Common Stock at a purchase price equal to 85% of the Class A Common Stock’s fair market value on the first trading day or last trading day of each purchase period, whichever is lower. The 2018 ESPP generally provides for two six-month purchase periods every twelve months: June 1 through November 30 and December 1 through May 31, except that the initial purchase period under the 2018 ESPP will have a duration of five months, commencing on January 1, 2018 and ending on May 31, 2018. Eligible employees participating in the 2018 ESPP will, for a purchase period, be able to invest up to 15% of their compensation through payroll deductions during each purchase period. A total of 5,000,000 shares of Class A Common Stock are available for sale under the 2018 ESPP. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) INCOME TAXES Income tax expense and the effective tax rate for the three months ended March 31, 2018 and 2017 were as follows (in thousands, except the effective tax rate): Three Months Ended March 31, 2018 2017 Income tax expense $ 14,621 $ 17,407 Effective tax rate 9.6 % 14.0 % The tax provisions for the three months ended March 31, 2018 and 2017 were 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 effective annual tax rate for 2018 to be between 12% and 17%, 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 on average significantly lower than the U.S. federal and state combined statutory rate of approximately 25%. Due to the enactment of Tax Cuts and Jobs Act (“the Tax Act”) in December 2017, the Company is subject to a tax on global intangible low-taxed income (“GILTI”). GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences including outside basis differences expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost, and therefore has included GILTI expense in its effective tax rate calculation for the three months ended March 31, 2018. The SEC staff issued Staff Accounting Bulletin 118, (“SAB 118”), which provides guidance on accounting for certain tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under Accounting Standards Codification 740 (“ASC 740”). For the three months ended March 31, 2018, the Company obtained additional information which reduced the Company’s provisional accounting for certain tax effects of the Tax Act by $8.0 million, from $99.9 million as reported at December 31, 2017, to $91.9 million at March 31, 2018. For the three months ended March 31, 2018, the decrease in the Company’s effective tax rate as compared to the three months ended March 31, 2017, was primarily due to an $8.0 million reduction in the Company’s accounting for certain tax effects of the Tax Act, and an increase of $1.1 million in excess tax benefits under ASU 2016-09. As of March 31, 2018, the Company had approximately $700.1 million in cash and cash equivalents, of which $297.4 million, or 42.5%, was held outside the U.S. Of the $297.4 million held by the Company’s non-U.S. subsidiaries, approximately $124.9 million is available for repatriation to the U.S. without incurring U.S. income taxes and applicable non-U.S. income and withholding taxes in excess of the amounts accrued in the Company’s condensed consolidated financial statements as of March 31, 2018. The Company’s cash and cash equivalents held in the U.S. and cash provided from operations are sufficient to meet the Company’s liquidity needs in the U.S. for the next twelve months. However, in anticipation of the needs of the Company’s share repurchase program and the need to provide payment of the Company’s provisional Transition Tax liability, the Company may repatriate certain funds held outside the U.S. for which all applicable U.S. and non-U.S. tax has been fully provided as of March 31, 2018. Because of the need for cash for operating capital and continued overseas expansion, the Company also does not foresee the need for any of its foreign subsidiaries to distribute funds up to an intermediate foreign parent company in any form of taxable dividend. Under current applicable tax laws, if the Company chooses to repatriate some or all of the funds the Company has designated as indefinitely reinvested outside the U.S., the amount repatriated would not be subject to U.S. income taxes but may be subject to applicable non-U.S. income and withholding taxes. |
Business and Credit Concentrati
Business and Credit Concentrations | 3 Months Ended |
Mar. 31, 2018 | |
Risks And Uncertainties [Abstract] | |
Business and Credit Concentrations | (9) BUSINESS AND CREDIT CONCENTRATIONS The Company generates 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 $317.8 million and $206.1 million before allowances for bad debts, sales returns and chargebacks at March 31, 2018 and December 31, 2017, respectively. Foreign accounts receivable, which in some cases are collateralized by letters of credit, were $394.6 million and $251.0 million before allowance for bad debts, sales returns and chargebacks at March 31, 2018 and December 31, 2017, respectively. The Company’s credit losses attributable to write-offs for the three months ended March 31, 2018 and 2017 were $2.0 million and $0.1 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 $1.364 billion and $1.273 billion at March 31, 2018 and December 31, 2017, respectively. The Company’s net sales to its five largest customers accounted for approximately 10.8% and 13.2% of total net sales for the three months ended March 31, 2018 and 2017, respectively. No customer accounted for more than 10.0% of the Company’s net sales during the three months ended March 31, 2018 and 2017. No customer accounted for more than 10.0% of trade receivables at March 31, 2018 or December 31, 2017. The Company’s top five manufacturers produced the following, as a percentage of total production, for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Manufacturer #1 15.5 % 22.8 % Manufacturer #2 11.9 % 10.9 % Manufacturer #3 8.6 % 9.4 % Manufacturer #4 6.9 % 5.6 % Manufacturer #5 5.4 % 4.6 % 48.3 % 53.3 % 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 | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting | (10) SEGMENT AND GEOGRAPHIC REPORTING 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 March 31, 2018 2017 Net sales: Domestic wholesale $ 389,029 $ 358,432 International wholesale 578,003 490,452 Retail 283,046 223,924 Total $ 1,250,078 $ 1,072,808 Three Months Ended March 31, 2018 2017 Gross profit: Domestic wholesale $ 142,143 $ 139,808 International wholesale 279,362 210,314 Retail 161,599 126,376 Total $ 583,104 $ 476,498 March 31, 2018 December 31, 2017 Identifiable assets: Domestic wholesale $ 1,367,211 $ 1,259,119 International wholesale 1,196,652 1,116,928 Retail 372,121 359,035 Total $ 2,935,984 $ 2,735,082 Three Months Ended March 31, 2018 2017 Additions to property, plant and equipment: Domestic wholesale $ 11,375 $ 1,533 International wholesale 10,938 11,793 Retail 12,151 15,556 Total $ 34,464 $ 28,882 Geographic Information: The following summarizes the Company’s operations in different geographic areas for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Net Sales (1) United States $ 575,525 $ 522,796 Canada 57,040 48,228 Other international (2) 617,513 501,784 Total $ 1,250,078 $ 1,072,808 March 31, 2018 December 31, 2017 Property, plant and equipment, net: United States $ 391,607 $ 382,426 Canada 9,421 9,888 Other international (2) 151,512 149,287 Total $ 552,540 $ 541,601 _____________________ (1) The Company has subsidiaries in Asia, Central America, Europe, the Middle East, North America, and South America that generate net sales within those respective regions and in some cases the neighboring regions. The Company 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, the Middle East, 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 | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (11) 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, are also officers and directors of the Foundation. During the three months ended March 31, 2018, the Company did not make any contributions to the Foundation. The Company made a contribution to the Foundation of $250,000 during the three months ended March 31, 2017. |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | (12) LITIGATION 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 March 31, 2018, nor is it possible to estimate what litigation-related costs will be in the future; however, the Company believes that the likelihood that claims related to litigation would result in a material loss to the Company, either individually or in the aggregate, is remote. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2018. |
Inventories | Inventories Inventories, principally finished goods, are stated at the lower of cost (based on the first-in, first-out method) or market (net realizable value). Cost includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. The Company provides for estimated losses from obsolete or slow-moving inventories, and writes down the cost of inventory at the time such determinations are made. Reserves are estimated based on inventory on hand, historical sales activity, industry trends, the retail environment, and the expected net realizable value. The net realizable value is determined using estimated sales prices of similar inventory through off-price or discount store channels. |
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 short-term and 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). 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 March 31, 2018 and December 31, 2017, the interest rate swap was a Level 2 derivative and HF Logistics is responsible for any amounts related to the interest rate swap agreement. |
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 when control of the promised goods or services is transferred to its customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company derives income from the sale of footwear and royalties earned from licensing the Skechers brand. For North America, goods are shipped Free on Board (“FOB”) shipping point directly from the Company’s domestic distribution center in Rancho Belago, California. For international wholesale customers product is shipped FOB shipping point, (i) direct from the Company’s distribution center in Liege, Belgium, (ii) to third-party distribution centers in Central America, South America and Asia, (iii) directly from third-party manufacturers to our other international customers. For our distributor sales, the goods are generally delivered directly from the independent factories to third-party distribution centers or to our distributors’ freight forwarders on a Free Named Carrier (“FCA”) basis. The Company recognizes revenue on wholesale sales upon shipment as that is when the customer obtains control of the promised goods. are accounted for as a fulfillment cost and not as a separate performance obligation. The Company records accounts receivable at the time of shipment when the Company’s right to the consideration becomes unconditional. The Company typically extends credit terms to our wholesale customers based on their creditworthiness and generally does not receive advance payments. Generally, wholesale customers do not have the right to return goods, however, the Company periodically decides to accept returns or provide customers with credits. Allowances for estimated returns, discounts, doubtful accounts and chargebacks are provided for when related revenue is recorded. Retail and e-commerce sales represent amounts due from credit card companies and are generally collected within a few days of the purchase. As such, the Company has determined that no allowance for doubtful accounts is necessary. The Company earns royalty income from its licensing arrangements which qualify as symbolic licenses rather than functional licenses. Upon signing a new licensing agreement, we receive up-front fees, which are generally characterized as prepaid royalties. These fees are initially deferred and recognized as revenue as earned (i.e., as licensed sales are reported to the Company or on a straight-line basis over the term of the agreement). The first calculated royalty payment is based on actual sales of the licensed product or, in some cases, minimum royalty payments. The Company calculates and accrues estimated royalties based on the agreement terms and correspondence with the licensees regarding actual sales. Judgments The Company considered several factors in determining that control transfers to the customer upon shipment of products. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership at the time of shipment. The Company accrues a reserve for product returns at the time of sale based on our historical experience. The Company also accrues amounts for goods expected to be returned in salable condition. As of March 31, 2018 and December 31, 2017, the Company’s sales returns reserve totaled $30.7 million and $43.4 million, respectively, and was included in other accrued liabilities and accounts receivable in the condensed consolidated balance sheet, respectively. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 “ Revenue from Contracts with Customers Revenue from Contracts with Customers Revenue Recognition These ASU’s also require enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” In October 2016, the FASB issued ASU No. 2016-16, “ Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory |
Non-Controlling Interests | 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 2018 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. |
Line of Credit, Short-Term an20
Line of Credit, Short-Term and Long-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | Long-term borrowings at March 31, 2018 and December 31, 2017 are as follows (in thousands): 2018 2017 Note payable to banks, due in monthly installments of $337.1 (includes principal and interest), variable-rate interest at 3.88% per annum, secured by property, balloon payment of $62,843 due August 2020 $ 66,240 $ 66,604 Note payable to Luen Thai Enterprise, Ltd., balloon payment of $5,741 due January 2021 5,741 5,745 Note payable to TCF Equipment Finance, Inc., due in monthly installments of $31 (includes principal and interest), fixed- rate interest at 5.24% per annum, due July 2019 470 555 Subtotal 72,451 72,904 Less current installments 1,805 1,801 Total long-term borrowings $ 70,646 $ 71,103 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 December 31, 2017 Current assets $ 2,474 $ 1,540 Non-current assets 102,093 103,407 Total assets $ 104,567 $ 104,947 Current liabilities $ 3,155 $ 2,718 Non-current liabilities 65,914 66,367 Total liabilities $ 69,069 $ 69,085 Distribution joint ventures (1) March 31, 2018 December 31, 2017 Current assets $ 490,142 $ 389,687 Non-current assets 89,940 90,972 Total assets $ 580,082 $ 480,659 Current liabilities $ 250,847 $ 188,700 Non-current liabilities 6,072 9,201 Total liabilities $ 256,919 $ 197,901 _____________________ (1) Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, Skechers Retail India Private Limited, and Skechers South Asia Private Limited. |
Net Earnings Attributable to Non-controlling Interest, Distributions and Contributions | The following is a summary of net earnings attributable to, distributions to and contributions from non-controlling interests (in thousands): Three Months Ended March 31, 2018 2017 Net earnings attributable to non-controlling interests $ 19,606 $ 12,640 Distributions to: HF Logistics-SKX, LLC 1,327 892 Skechers China Limited 3,110 — Contributions from: Skechers Footwear Ltd. (Israel) — 46 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Equity Attributable to Non-controlling Interests | The following table reconciles equity attributable to non-controlling interests (in thousands): Three Months Ended March 31, 2018 2017 Non-controlling interests, beginning of period $ 119,147 $ 81,881 Net earnings 19,606 12,640 Foreign currency translation adjustment 2,839 1,683 Capital contributions — 46 Capital distributions (4,437 ) (892 ) Non-controlling interests, end of period $ 137,155 $ 95,358 |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Share Repurchase Program [Abstract] | |
Summary of Stock Repurchase Activities | The following table provides a summary of the Company’s stock repurchase activities during the three months ended March 31, 2018: March 31, 2018 Shares repurchased 75,991 Average cost per share $ 39.47 Total cost of shares repurchased $ 3,000,000 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, Basic earnings per share 2018 2017 Net earnings attributable to Skechers U.S.A., Inc. $ 117,652 $ 93,995 Weighted average common shares outstanding 156,433 155,097 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 0.75 $ 0.61 |
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 March 31, Diluted earnings per share 2018 2017 Net earnings attributable to Skechers U.S.A., Inc. $ 117,652 $ 93,995 Weighted average common shares outstanding 156,433 155,097 Dilutive effect of nonvested shares 1,197 830 Weighted average common shares outstanding 157,630 155,927 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 0.75 $ 0.60 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Nonvested Shares Related to the 2007 Plan | A summary of the status and changes of the Company’s nonvested shares related to the 2007 Plan and the 2017 Plan, as of and for the three months ended March 31, 2018 is presented below: Shares Weighted Average Grant-Date Fair Value Nonvested at December 31, 2017 2,303,557 $ 26.25 Granted 1,637,500 39.00 Vested (537,500 ) 18.93 Cancelled (18,333 ) 30.89 Nonvested at March 31, 2018 3,385,224 33.55 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense and Effective Tax Rate | Income tax expense and the effective tax rate for the three months ended March 31, 2018 and 2017 were as follows (in thousands, except the effective tax rate): Three Months Ended March 31, 2018 2017 Income tax expense $ 14,621 $ 17,407 Effective tax rate 9.6 % 14.0 % |
Business and Credit Concentra27
Business and Credit Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Manufacturer #1 15.5 % 22.8 % Manufacturer #2 11.9 % 10.9 % Manufacturer #3 8.6 % 9.4 % Manufacturer #4 6.9 % 5.6 % Manufacturer #5 5.4 % 4.6 % 48.3 % 53.3 % |
Segment and Geographic Report28
Segment and Geographic Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 2017 Net sales: Domestic wholesale $ 389,029 $ 358,432 International wholesale 578,003 490,452 Retail 283,046 223,924 Total $ 1,250,078 $ 1,072,808 Three Months Ended March 31, 2018 2017 Gross profit: Domestic wholesale $ 142,143 $ 139,808 International wholesale 279,362 210,314 Retail 161,599 126,376 Total $ 583,104 $ 476,498 March 31, 2018 December 31, 2017 Identifiable assets: Domestic wholesale $ 1,367,211 $ 1,259,119 International wholesale 1,196,652 1,116,928 Retail 372,121 359,035 Total $ 2,935,984 $ 2,735,082 Three Months Ended March 31, 2018 2017 Additions to property, plant and equipment: Domestic wholesale $ 11,375 $ 1,533 International wholesale 10,938 11,793 Retail 12,151 15,556 Total $ 34,464 $ 28,882 |
Geographic Information | Geographic Information: The following summarizes the Company’s operations in different geographic areas for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Net Sales (1) United States $ 575,525 $ 522,796 Canada 57,040 48,228 Other international (2) 617,513 501,784 Total $ 1,250,078 $ 1,072,808 March 31, 2018 December 31, 2017 Property, plant and equipment, net: United States $ 391,607 $ 382,426 Canada 9,421 9,888 Other international (2) 151,512 149,287 Total $ 552,540 $ 541,601 _____________________ (1) The Company has subsidiaries in Asia, Central America, Europe, the Middle East, North America, and South America that generate net sales within those respective regions and in some cases the neighboring regions. The Company 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, the Middle East, and South America. |
General - Additional Informatio
General - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Derivative effective dates | Aug. 12, 2015 | |
Sales returns reserve | $ 30.7 | $ 43.4 |
Line of Credit, Short-Term an30
Line of Credit, Short-Term and Long-Term Borrowings - Additional Information (Detail) - USD ($) | Aug. 11, 2015 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2015 | Nov. 16, 2012 | Apr. 30, 2010 |
Debt Instrument [Line Items] | ||||||
Outstanding letters of credit | $ 4,400,000 | $ 4,400,000 | ||||
Short-term borrowings | $ 12,200,000 | 8,011,000 | ||||
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 | |||||
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. | |||||
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% | |||||
Line of credit facility, expiration period | 5 years | |||||
Line of credit facility, outstanding amount | $ 100,000 | $ 100,000 | ||||
Line of Credit [Member] | Other Assets [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt closing and arrangement fees | $ 1,100,000 | |||||
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 an31
Line of Credit, Short-Term and Long-Term Borrowings - Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 72,451 | $ 72,904 |
Less current installments | 1,805 | 1,801 |
Total long-term borrowings | 70,646 | 71,103 |
Modification Loan [Member] | Construction Loan Agreement [Member] | Joint Venture with HF Logistics [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 66,240 | 66,604 |
Note payable to Luen Thai Enterprise, LTD [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 5,741 | 5,745 |
Notes payable to TCF Finance [Member] | Equipment Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 470 | $ 555 |
Line of Credit, Short-Term an32
Line of Credit, Short-Term and Long-Term Borrowings - Long-Term Borrowings (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Note payable to Luen Thai Enterprise, LTD [Member] | |
Debt Instrument [Line Items] | |
Balloon payment required under note payable | $ 5,741,000 |
Due date for note payable | 2021-01 |
Equipment Notes [Member] | Notes payable to TCF Finance [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | $ 31,000 |
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 | $ 337,100 |
Variable interest rate of note payable | 3.88% |
Balloon payment required under note payable | $ 62,843,000 |
Due date for note payable | 2020-08 |
Frequency of periodic payment | monthly |
Non-Controlling Interests - Car
Non-Controlling Interests - Carrying Amounts and Classification of Assets and Liabilities for VIEs (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 2,293,154 | $ 2,105,024 |
Non-current assets | 642,830 | 630,058 |
TOTAL ASSETS | 2,935,984 | 2,735,082 |
Current liabilities | 674,020 | 597,348 |
Non-current liabilities | 178,639 | 189,523 |
Total liabilities | 852,659 | 786,871 |
Variable interest entity, primary beneficiary [Member] | HF Logistics-SKX, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 2,474 | 1,540 |
Non-current assets | 102,093 | 103,407 |
TOTAL ASSETS | 104,567 | 104,947 |
Current liabilities | 3,155 | 2,718 |
Non-current liabilities | 65,914 | 66,367 |
Total liabilities | 69,069 | 69,085 |
Variable interest entity, primary beneficiary [Member] | Distribution joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 490,142 | 389,687 |
Non-current assets | 89,940 | 90,972 |
TOTAL ASSETS | 580,082 | 480,659 |
Current liabilities | 250,847 | 188,700 |
Non-current liabilities | 6,072 | 9,201 |
Total liabilities | $ 256,919 | $ 197,901 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Net earnings attributable to non-controlling interests | $ 19,606 | $ 12,640 |
Distributions to non-controlling interests of consolidated entity | 4,437 | 892 |
Contributions from non-controlling interests of consolidated entity | 46 | |
HF Logistics-SKX, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Distributions to non-controlling interests of consolidated entity | 1,327 | 892 |
Skechers China Limited [Member] | ||
Variable Interest Entity [Line Items] | ||
Distributions to non-controlling interests of consolidated entity | $ 3,110 | |
Skechers Footwear Ltd. (Israel) [Member] | ||
Variable Interest Entity [Line Items] | ||
Contributions from non-controlling interests of consolidated entity | $ 46 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Certain Class B stockholders converted into Class A | 381,876 | 0 |
Stockholders' Equity - Equity A
Stockholders' Equity - Equity Attributable to Non-controlling Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Noncontrolling Interest [Abstract] | ||
Non-controlling interests, beginning of period | $ 119,147 | $ 81,881 |
Net earnings | 19,606 | 12,640 |
Foreign currency translation adjustment | 2,839 | 1,683 |
Capital contributions | 46 | |
Capital distributions | (4,437) | (892) |
Non-controlling interests, end of period | $ 137,155 | $ 95,358 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Feb. 06, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Stock repurchase program expiration date | Feb. 6, 2021 | ||
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, par value | $ 0.001 | $ 0.001 | |
Stock repurchase program authorized amount | $ 150 | ||
Class A Common Stock [Member] | Share Repurchase Program [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, par value | $ 0.001 |
Share Repurchase Program - Summ
Share Repurchase Program - Summary of Stock Repurchase Activities (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Share Repurchase Program [Abstract] | |
Shares repurchased | shares | 75,991 |
Average cost per share | $ / shares | $ 39.47 |
Total cost of shares repurchased | $ | $ 3,000,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Line Items] | ||
Options excluded from the computation of diluted earnings | 190,364 | 126,636 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basic earnings per share | ||
Net earnings attributable to Skechers U.S.A., Inc. | $ 117,652 | $ 93,995 |
Weighted average common shares outstanding | 156,433 | 155,097 |
Basic earnings per share attributable to Skechers U.S.A., Inc. | $ 0.75 | $ 0.61 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Diluted earnings per share | ||
Net earnings attributable to Skechers U.S.A., Inc. | $ 117,652 | $ 93,995 |
Weighted average common shares outstanding | 156,433 | 155,097 |
Dilutive effect of nonvested shares | 1,197 | 830 |
Weighted average common shares outstanding | 157,630 | 155,927 |
Diluted earnings per share attributable to Skechers U.S.A., Inc. | $ 0.75 | $ 0.60 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 17, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 8.7 | $ 6.6 | |
Unrecognized compensation cost related to nonvested common shares | $ 92.4 | ||
Weighted average period for recognition of cost | 3 years | ||
Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock redeemed, shares | 212,930 | ||
Stock redeemed, value | $ 8.7 | ||
2017 Plan [Member] | Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reserved for issuance | 10,000,000 | ||
2018 ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of employee's compensation to purchase common stock | 15.00% | ||
Percentage of price of common stock purchased | 85.00% | ||
2018 ESPP [Member] | Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for sale under employee stock purchase plan | 5,000,000 |
Stock Compensation - Summary of
Stock Compensation - Summary of Nonvested Shares Related to the 2007 and 2017 Plan (Detail) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Nonvested, Shares, Beginning of Period | shares | 2,303,557 |
Granted, Shares | shares | 1,637,500 |
Vested, Shares | shares | (537,500) |
Cancelled, Shares | shares | (18,333) |
Nonvested, Shares, End of Period | shares | 3,385,224 |
Nonvested, Weighted Average Grant-Date Fair Value, Beginning of Period | $ / shares | $ 26.25 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 39 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 18.93 |
Cancelled, Weighted Average Grant-Date Fair Value | $ / shares | 30.89 |
Nonvested, Weighted Average Grant-Date Fair Value, End of Period | $ / shares | $ 33.55 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 14,621 | $ 17,407 |
Effective tax rate | 9.60% | 14.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Income Taxes [Line Items] | ||||
Effective tax rate | 9.60% | 14.00% | ||
U.S. federal and state statutory rate | 25.00% | |||
Provisional tax | $ 91,900 | $ 99,900 | ||
Reduction in provisional tax | 8,000 | |||
Cash and cash equivalents | 700,071 | $ 607,813 | $ 736,431 | $ 718,536 |
Non-US [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Cash and cash equivalents | $ 297,400 | |||
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 | 42.50% | |||
Non-US [Member] | Funds Available For Repatriation [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Cash and cash equivalents | $ 124,900 | |||
ASU 2016-09 [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Excess tax benefits recorded in earnings | $ 1,100 | |||
Minimum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Effective tax rate | 12.00% | |||
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 | 17.00% | |||
Maximum [Member] | Non-U.S jurisdictions [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Statutory federal rate | 34.00% |
Business and Credit Concentra46
Business and Credit Concentrations - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018USD ($)Customer | Mar. 31, 2017USD ($)Customer | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Credit losses attributable to write-offs | $ 2 | $ 0.1 | |
Net Sales [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Number of largest customers | Customer | 5 | 5 | |
Percentage of concentration risk | 10.80% | 13.20% | |
Number of customers accounting for more than 10% | Customer | 0 | 0 | |
Net Trade Receivable [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers accounting for more than 10% | Customer | 0 | 0 | |
Domestic [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 317.8 | $ 206.1 | |
Non-US [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | 394.6 | 251 | |
Net total assets held outside the United States | $ 1,364 | $ 1,273 |
Business and Credit Concentra47
Business and Credit Concentrations - Company's Top Five Manufacturers Produced (Detail) - Cost of Goods, Total [Member] - Supplier Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Concentration Risk [Line Items] | ||
Percentage of total production | 48.30% | 53.30% |
Manufacturer One [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of total production | 15.50% | 22.80% |
Manufacturer Two [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of total production | 11.90% | 10.90% |
Manufacturer Three [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of total production | 8.60% | 9.40% |
Manufacturer Four [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of total production | 6.90% | 5.60% |
Manufacturer Five [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of total production | 5.40% | 4.60% |
Segment and Geographic Report48
Segment and Geographic Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment and Geographic Report49
Segment and Geographic Reporting - Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales, Total | $ 1,250,078 | $ 1,072,808 | |
Gross profit | 583,104 | 476,498 | |
Identifiable assets | 2,935,984 | $ 2,735,082 | |
Additions to property, plant and equipment | 34,464 | 28,882 | |
Domestic wholesale [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales, Total | 389,029 | 358,432 | |
Gross profit | 142,143 | 139,808 | |
Identifiable assets | 1,367,211 | 1,259,119 | |
Additions to property, plant and equipment | 11,375 | 1,533 | |
International wholesale [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales, Total | 578,003 | 490,452 | |
Gross profit | 279,362 | 210,314 | |
Identifiable assets | 1,196,652 | 1,116,928 | |
Additions to property, plant and equipment | 10,938 | 11,793 | |
Retail [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales, Total | 283,046 | 223,924 | |
Gross profit | 161,599 | 126,376 | |
Identifiable assets | 372,121 | $ 359,035 | |
Additions to property, plant and equipment | $ 12,151 | $ 15,556 |
Segment and Geographic Report50
Segment and Geographic Reporting - Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Net Sales | |||
Net sales, Total | $ 1,250,078 | $ 1,072,808 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | 552,540 | $ 541,601 | |
Domestic [Member] | |||
Net Sales | |||
Net sales, Total | 575,525 | 522,796 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | 391,607 | 382,426 | |
Canada [Member] | |||
Net Sales | |||
Net sales, Total | 57,040 | 48,228 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | 9,421 | 9,888 | |
Other international [Member] | |||
Net Sales | |||
Net sales, Total | 617,513 | $ 501,784 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | $ 151,512 | $ 149,287 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Management [Member] | ||
Related Party Transaction [Line Items] | ||
Contribution to Skechers Foundation for various charitable purposes | $ 0 | $ 250,000 |