Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | SKX | |
Security Exchange Name | NYSE | |
Entity Registrant Name | SKECHERS USA INC | |
Entity Central Index Key | 0001065837 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity File Number | 001-14429 | |
Entity Tax Identification Number | 95-4376145 | |
Entity Address, Address Line One | 228 Manhattan Beach Blvd. | |
Entity Address, City or Town | Manhattan Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90266 | |
City Area Code | 310 | |
Local Phone Number | 318-3100 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 133,913,825 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,843,955 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 824,004 | $ 872,237 |
Short-term investments | 106,747 | 100,029 |
Trade accounts receivable, less allowances of $25,737 in 2019 and $25,616 in 2018 | 662,356 | 501,913 |
Other receivables | 46,222 | 55,683 |
Total receivables | 708,578 | 557,596 |
Inventories | 890,409 | 863,260 |
Prepaid expenses and other current assets | 97,638 | 79,018 |
Total current assets | 2,627,376 | 2,472,140 |
Property, plant and equipment, net | 702,545 | 585,457 |
Operating lease right-of-use assets | 985,001 | |
Deferred tax assets | 52,424 | 39,431 |
Long-term investments | 90,849 | 93,745 |
Other assets, net | 108,003 | 37,482 |
Total non-current assets | 1,938,822 | 756,115 |
TOTAL ASSETS | 4,566,198 | 3,228,255 |
Current liabilities: | ||
Current installments of long-term borrowings | 66,646 | 1,666 |
Short-term borrowings | 16,270 | 7,222 |
Accounts payable | 661,428 | 679,553 |
Operating lease liabilities | 172,947 | |
Accrued expenses | 189,522 | 161,781 |
Total current liabilities | 1,106,813 | 850,222 |
Long-term borrowings, excluding current installments | 39,773 | 88,119 |
Long-term operating lease liabilities | 976,658 | |
Deferred tax liabilities | 433 | 451 |
Other long-term liabilities | 101,068 | 100,188 |
Total non-current liabilities | 1,117,932 | 188,758 |
Total liabilities | 2,224,745 | 1,038,980 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 293,399 | 375,017 |
Accumulated other comprehensive loss | (97,354) | (31,488) |
Retained earnings | 1,978,304 | 1,691,276 |
Skechers U.S.A., Inc. equity | 2,174,502 | 2,034,958 |
Non-controlling interests | 166,951 | 154,317 |
Total stockholders' equity | 2,341,453 | 2,189,275 |
TOTAL LIABILITIES AND EQUITY | 4,566,198 | 3,228,255 |
Class A Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | 130 | 129 |
Class B Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | $ 23 | $ 24 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Trade accounts receivable, allowances | $ 25,737 | $ 25,616 |
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 | 130,411,000 | 129,525,000 |
Common Stock, shares outstanding | 130,411,000 | 129,525,000 |
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 | 22,904,000 | 23,983,000 |
Common Stock, shares outstanding | 22,904,000 | 23,983,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,353,998 | $ 1,176,395 | $ 3,889,319 | $ 3,561,270 |
Cost of sales | 700,934 | 612,529 | 2,035,911 | 1,853,344 |
Gross profit | 653,064 | 563,866 | 1,853,408 | 1,707,926 |
Royalty income | 6,285 | 4,860 | 17,827 | 15,732 |
Operating income | 659,349 | 568,726 | 1,871,235 | 1,723,658 |
Operating expenses: | ||||
Selling | 97,516 | 90,138 | 281,237 | 288,606 |
General and administrative | 414,417 | 354,676 | 1,165,637 | 1,080,984 |
Operating expenses | 511,933 | 444,814 | 1,446,874 | 1,369,590 |
Earnings from operations | 147,416 | 123,912 | 424,361 | 354,068 |
Other income / (expense): | ||||
Interest income | 3,290 | 3,008 | 9,500 | 6,280 |
Interest expense | (2,012) | (1,199) | (5,194) | (3,742) |
Other, net | (4,194) | (2,849) | (8,628) | (6,918) |
Total other income / (expense) | (2,916) | (1,040) | (4,322) | (4,380) |
Earnings before income tax expense | 144,500 | 122,872 | 420,039 | 349,688 |
Income tax expense | 22,766 | 16,821 | 75,288 | 45,521 |
Net earnings | 121,734 | 106,051 | 344,751 | 304,167 |
Less: Net earnings attributable to non-controlling interests | 18,644 | 15,323 | 57,723 | 50,504 |
Net earnings attributable to Skechers U.S.A., Inc. | $ 103,090 | $ 90,728 | $ 287,028 | $ 253,663 |
Net earnings per share attributable to Skechers U.S.A., Inc.: | ||||
Basic | $ 0.67 | $ 0.58 | $ 1.87 | $ 1.62 |
Diluted | $ 0.67 | $ 0.58 | $ 1.86 | $ 1.62 |
Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc.: | ||||
Basic | 153,298 | 155,766 | 153,396 | 156,238 |
Diluted | 153,978 | 156,298 | 154,021 | 156,981 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 121,734 | $ 106,051 | $ 344,751 | $ 304,167 |
Other comprehensive income, net of tax: | ||||
Loss on foreign currency translation adjustment | (98,416) | (8,634) | (92,059) | (23,509) |
Comprehensive income | 23,318 | 97,417 | 252,692 | 280,658 |
Less: Comprehensive income (loss) attributable to non- controlling interests | (7,700) | 11,487 | 31,530 | 42,385 |
Comprehensive income attributable to Skechers U.S.A., Inc. | $ 31,018 | $ 85,930 | $ 221,162 | $ 238,273 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Class A Common Stock [Member] | Class B Common Stock [Member] | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | ADDITIONAL PAID-IN CAPITAL [Member] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Member] | RETAINED EARNINGS [Member] | SKECHERS U.S.A., INC. EQUITY [Member] | NON CONTROLLING INTERESTS [Member] |
Beginning Balance at Dec. 31, 2017 | $ 1,948,211 | $ 132 | $ 24 | $ 453,417 | $ (14,744) | $ 1,390,235 | $ 1,829,064 | $ 119,147 | ||
Beginning Balance, Shares at Dec. 31, 2017 | 131,784,000 | 24,545,000 | ||||||||
Net earnings | 304,167 | 253,663 | 253,663 | 50,504 | ||||||
Foreign currency translation adjustment | (23,509) | (15,389) | (15,389) | (8,120) | ||||||
Distribution to noncontrolling interest of consolidated entity | (18,663) | (18,663) | ||||||||
Stock compensation expense | 23,588 | 23,588 | 23,588 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan | 2,889 | 2,889 | 2,889 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 117,000 | |||||||||
Shares issued under the Incentive Award Plan | 1 | (1) | ||||||||
Shares issued under the Incentive Award Plan, Shares | 820,000 | |||||||||
Shares redeemed for employee tax withholdings | (11,401) | $ (11,400) | (11,401) | (11,401) | ||||||
Shares redeemed for employee tax withholdings, Shares | (308,155) | |||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 382,000 | (382,000) | ||||||||
Repurchases of common stock | $ (58,027) | (2) | (58,025) | (58,027) | ||||||
Repurchase of common stock, Shares | (1,993,163) | (1,993,000) | ||||||||
Ending Balance at Sep. 30, 2018 | $ 2,167,255 | 131 | 24 | 410,467 | (30,133) | 1,643,898 | 2,024,387 | 142,868 | ||
Ending Balance, Shares at Sep. 30, 2018 | 130,802,000 | 24,163,000 | ||||||||
Beginning Balance at Jun. 30, 2018 | 2,113,462 | 132 | 24 | 443,092 | (25,334) | 1,553,170 | 1,971,084 | 142,378 | ||
Beginning Balance, Shares at Jun. 30, 2018 | 132,193,000 | 24,163,000 | ||||||||
Net earnings | 106,051 | 90,728 | 90,728 | 15,323 | ||||||
Foreign currency translation adjustment | (8,634) | (4,799) | (4,799) | (3,835) | ||||||
Distribution to noncontrolling interest of consolidated entity | (10,998) | (10,998) | ||||||||
Stock compensation expense | 7,621 | 7,621 | 7,621 | |||||||
Shares issued under the Incentive Award Plan, Shares | 23,000 | |||||||||
Shares redeemed for employee tax withholdings | (220) | $ (200) | (220) | (220) | ||||||
Shares redeemed for employee tax withholdings, Shares | (7,899) | |||||||||
Repurchases of common stock | $ (40,027) | (1) | (40,026) | (40,027) | ||||||
Repurchase of common stock, Shares | (1,406,591) | (1,406,000) | ||||||||
Ending Balance at Sep. 30, 2018 | $ 2,167,255 | 131 | 24 | 410,467 | (30,133) | 1,643,898 | 2,024,387 | 142,868 | ||
Ending Balance, Shares at Sep. 30, 2018 | 130,802,000 | 24,163,000 | ||||||||
Beginning Balance at Dec. 31, 2018 | 2,189,275 | 129 | 24 | 375,017 | (31,488) | 1,691,276 | 2,034,958 | 154,317 | ||
Beginning Balance, Shares at Dec. 31, 2018 | 129,525,000 | 23,983,000 | ||||||||
Net earnings | 344,751 | 287,028 | 287,028 | 57,723 | ||||||
Foreign currency translation adjustment | (92,059) | (65,866) | (65,866) | (26,193) | ||||||
Contribution from noncontrolling interest of consolidated entity | 30,341 | 30,341 | ||||||||
Distribution to noncontrolling interest of consolidated entity | (37,608) | (37,608) | ||||||||
Purchase of non-controlling interest | (82,894) | (71,265) | (71,265) | (11,629) | ||||||
Stock compensation expense | 30,234 | 30,234 | 30,234 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan | 3,177 | 3,177 | 3,177 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 134,000 | |||||||||
Shares issued under the Incentive Award Plan | 1 | (1) | ||||||||
Shares issued under the Incentive Award Plan, Shares | 1,065,000 | |||||||||
Shares redeemed for employee tax withholdings | (13,745) | $ (13,700) | (13,745) | (13,745) | ||||||
Shares redeemed for employee tax withholdings, Shares | (423,206) | |||||||||
Conversion of Class B Common Stock into Class A Common Stock | 1 | (1) | ||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 1,079,000 | (1,079,000) | ||||||||
Repurchases of common stock | $ (30,019) | (1) | (30,018) | (30,019) | ||||||
Repurchase of common stock, Shares | (968,724) | (969,000) | ||||||||
Ending Balance at Sep. 30, 2019 | $ 2,341,453 | 130 | 23 | 293,399 | (97,354) | 1,978,304 | 2,174,502 | 166,951 | ||
Ending Balance, Shares at Sep. 30, 2019 | 130,411,000 | 22,904,000 | ||||||||
Beginning Balance at Jun. 30, 2019 | 2,323,673 | 130 | 23 | 282,822 | (25,282) | 1,875,214 | 2,132,907 | 190,766 | ||
Beginning Balance, Shares at Jun. 30, 2019 | 130,275,000 | 23,016,000 | ||||||||
Net earnings | 121,734 | 103,090 | 103,090 | 18,644 | ||||||
Foreign currency translation adjustment | (98,416) | (72,072) | (72,072) | (26,344) | ||||||
Distribution to noncontrolling interest of consolidated entity | (16,115) | (16,115) | ||||||||
Stock compensation expense | 10,738 | 10,738 | 10,738 | |||||||
Shares issued under the Incentive Award Plan, Shares | 29,000 | |||||||||
Shares redeemed for employee tax withholdings | (161) | $ (200) | (161) | (161) | ||||||
Shares redeemed for employee tax withholdings, Shares | (4,821) | |||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 112,000 | (112,000) | ||||||||
Ending Balance at Sep. 30, 2019 | $ 2,341,453 | $ 130 | $ 23 | $ 293,399 | $ (97,354) | $ 1,978,304 | $ 2,174,502 | $ 166,951 | ||
Ending Balance, Shares at Sep. 30, 2019 | 130,411,000 | 22,904,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 344,751 | $ 304,167 |
Adjustment to reconcile net earnings to net cash from operating activities: | ||
Depreciation and amortization | 80,731 | 81,260 |
Provision for bad debts and returns | 20,367 | 27,975 |
Share based compensation | 30,234 | 23,588 |
Deferred income taxes | (11,224) | 1,267 |
Other items, net | (223) | 467 |
Net foreign currency adjustments | 7,769 | 3,222 |
(Increase) decrease in assets: | ||
Receivables | (143,266) | (143,743) |
Inventories | 1,533 | 99,316 |
Other assets | (47,112) | (32,904) |
Increase (decrease) in liabilities: | ||
Accounts payable | 48,317 | 48,334 |
Other liabilities | 17,385 | (139) |
Net cash provided by operating activities | 349,262 | 412,810 |
Cash flows from investing activities: | ||
Capital expenditures | (174,663) | (97,309) |
Acquisitions, net of cash acquired | (100,658) | |
Proceeds from sale of property, plant and equipment | 5,547 | |
Purchases of investments | (151,594) | (408,126) |
Proceeds from sales and maturities of investments | 147,772 | 247,158 |
Net cash used in investing activities | (273,596) | (258,277) |
Cash flows from financing activities: | ||
Net proceeds from the issuances of common stock through the employee stock purchase plan | 3,177 | 2,889 |
Repayments on long-term borrowings | (3,456) | (1,381) |
Proceeds from long-term borrowings | 17,941 | |
Proceeds from short-term borrowings | 9,048 | 7,491 |
Payments for taxes related to net share settlement of equity awards | (13,745) | (11,401) |
Cash used for purchase of non-controlling interest | (82,894) | |
Distributions to non-controlling interests | (37,608) | (18,663) |
Net cash used in financing activities | (137,557) | (79,092) |
Effect of exchange rate changes on cash and cash equivalents | 13,659 | (9,101) |
Net change in cash and cash equivalents | (48,232) | 66,340 |
Cash and cash equivalents at beginning of the period | 872,237 | 736,431 |
Cash and cash equivalents at end of the period | 824,004 | 802,771 |
Cash paid during the period for: | ||
Interest | 5,097 | 3,585 |
Income taxes, net | 92,855 | 72,020 |
Non-cash transactions: | ||
Land and other assets contribution from non-controlling interest | 30,341 | |
Class A Common Stock [Member] | ||
Cash flows from financing activities: | ||
Repurchase of Class A common stock | $ (30,019) | $ (58,027) |
General
General | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018. The results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2019. 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 accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: • Level 1 – Quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 non-derivative investments primarily include money market funds and U.S. Treasury securities. • Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s Level 2 non-derivative investments primarily include corporate notes and bonds, asset-backed securities, U.S. Agency securities, and actively traded mutual funds. The Company has one Level 2 derivative which is an interest rate swap related to the refinancing of its domestic distribution center (see below). • Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The Company currently does not have any Level 3 assets or liabilities. The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, short-term investments, accounts receivable, long-term investments, 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 4). 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. 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 In accordance with Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers 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 for retail and e-commerce sales 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, the Company receives up-front fees, which are generally characterized as prepaid royalties. These fees are initially deferred and recognized as revenue is earned (i.e., as licensed sales are reported to the Company or on a straight-line basis over the term of the agreement). The Company applies the sales-based royalty exception for the royalty income based on sales and recognizes revenue only when subsequent sales occur. 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 liability 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 September 30, 2019 and December 31, 2018, the Company’s sales returns liability totaled $79.6 million and $67.3 million, respectively, and was included in accrued expenses in the accompanying condensed consolidated balance sheets. Business Combinations Business acquisitions are accounted for under the acquisition method by assigning the purchase price to tangible and intangible assets acquired and liabilities assumed. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Purchased intangible assets with finite lives are amortized over their estimated useful lives. Goodwill and intangible assets with indefinite lives are not amortized but are tested at least annually for impairment or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value determinations require judgment and may involve the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives, and market multiples, among other items. The purchase price allocation is subject to adjustment until the Company has completed its analysis within the measurement period. During the nine months ended September 30, 2019, the Company made acquisitions amounting to $100.7 million. The Company is in the process of preparing the purchase price allocation and the finalization may result in changes in the valuation of assets acquired and liabilities assumed. The Company will finalize the purchase price allocation as soon as practicable, but not to exceed one year following April 1, 2019. Accounting Standards Adopted in 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases Leases. The standard did not have an impact on debt-covenant compliance under the Company's current debt agreements because it is a result of a change in accounting principle. See Note 3 - Leases for additional information regarding the accounting for leases. 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,” Recent Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” In August 2018, the FASB issued ASU No. 2018-15 “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract,” In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Measurement of Credit Losses on Financial Statements, (“ASU No. 201 6 -13”) which required measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2020 and is required to be applied prospectively. For our trade receivables, certain other receivables and certain other financial instruments, we will be required to use a new forward-looking “expected” credit loss model based on historical loss rates that will replace the existing “incurred” credit los s model, which will generally result in earlier recognition of allowances for credit losses. The Company is currently evaluating the impact of ASU 201 6 -1 3 ; however, at the current time the Company does not expect that the adoption of this ASU will have a material impact on its condensed consolidated financial statements or disclosures. |
Cash, Cash Equivalents, Short-T
Cash, Cash Equivalents, Short-Term And Long-Term Investments | 9 Months Ended |
Sep. 30, 2019 | |
Cash Cash Equivalents And Short Term And Long Term Investments [Abstract] | |
Cash, Cash Equivalents, Short-Term and Long-Term Investments | (2) CASH, CASH EQUIVALENTS, SHORT-TERM AND LONG-TERM INVESTMENTS The Company’s investments consist of mutual funds held in the Company’s deferred compensation plan which are classified as trading securities, U.S. Treasury securities, corporate notes and bonds, asset-backed securities and U.S. Agency securities, which the Company has the intent and ability to hold to maturity and therefore, are classified as held-to-maturity. September 30, 2019 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 658,259 $ - $ - $ 658,259 $ 658,259 $ - $ - Level 1: Money market funds 165,745 - - 165,745 165,745 - - U.S. Treasury securities 9,949 - - 9,949 - 1,855 8,094 Total level 1 175,694 - - 175,694 165,745 1,855 8,094 Level 2: - - - Corporate notes and bonds 128,542 - - 128,542 - 96,899 31,643 Asset-backed securities 20,887 - - 20,887 - 1,372 19,515 U.S. Agency securities 13,765 - - 13,765 - 6,621 7,144 Mutual funds 24,453 - - 24,453 - - 24,453 Total level 2 187,647 - - 187,647 - 104,892 82,755 TOTAL $ 1,021,600 $ - $ - $ 1,021,600 $ 824,004 $ 106,747 $ 90,849 December 31, 2018 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 713,624 $ - $ - $ 713,624 $ 713,624 $ - $ - Level 1: Money market funds 158,613 - - 158,613 158,613 - - U.S. Treasury securities 6,955 - - 6,955 - 4,979 1,976 Total level 1 165,568 - - 165,568 158,613 4,979 1,976 Level 2: - - - Corporate notes and bonds 132,280 - - 132,280 - 88,412 43,868 Asset-backed securities 23,310 - - 23,310 - 2,115 21,195 U.S. Agency securities 10,272 - - 10,272 - 4,523 5,749 Mutual funds 20,957 - - 20,957 - - 20,957 Total level 2 186,819 - - 186,819 - 95,050 91,769 TOTAL $ 1,066,011 $ - $ - $ 1,066,011 $ 872,237 $ 100,029 $ 93,745 The Company may sell certain of its investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s long-term investments are typically less than two years. The Company considers the declines in market value of its marketable securities investment portfolio to be temporary in nature. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy generally requires investments to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates and the Company’s intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s cost basis. As of September 30, 2019, the Company does not consider any of its investments to be other-than-temporarily impaired. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | (3) LEASES The Company determines if an arrangement is a lease at inception, and, if a lease, what type of lease it is. The Company regularly enters into non-cancellable operating leases for automobiles, retail stores, and real estate leases for offices, showrooms and distribution facilities. Most leases have fixed rental payments. Leases for retail stores typically have initial terms ranging from 5 to 10 years. Other real estate or facility leases may have initial lease terms of up to 20 years. These leases are included within operating lease ROU assets and liabilities on the Company’s condensed consolidated balance sheet as of September 30, 2019. The predominant asset for most real estate leases is the right to occupy the space which the Company has determined is the single lease component. Many of the Company’s real estate leases include options to extend or to terminate the lease that are not reasonably certain at the time of determining the expected lease term. In addition the Company’s real estate leases may also require additional payments for real estate taxes and other occupancy-related costs. The Company considers renewal options and other occupancy-related costs which it considers as non-lease components. Percentage rent expense, which is specified in the lease agreement, is owed when sales at individual retail store locations exceed a base amount. Percentage rent expense is recognized in the condensed consolidated financial statements when incurred. Rent expense for leases having rent holidays, landlord incentives or scheduled rent increases is recorded on a straight-line basis over the earlier of the beginning of the lease term or when the Company takes possession or control of the leased premises. The amount of the excess straight-line rent expense over scheduled payments is recorded as an operating lease liability. Operating lease ROU assets and operating lease liabilities are recognized based upon the present value of the future lease payments over the lease term at the commencement date. Most of the Company’s leases do not provide an implicit borrowing rate. Therefore the Company uses an estimated incremental borrowing rate based upon a combination of market-based factors, such as market quoted forward yield curves and Company specific factors, such as lease size and duration. The incremental borrowing rate is then used at the commencement date of the lease to determine the present value of future lease payments. The future minimum obligations under operating leases in effect as of December 31, 2018 having a noncancelable term in excess of one year as determined prior to the adoption of ASU 842 are as follows (in thousands): December 31, 2018 2019 $ 251,711 2020 228,716 2021 203,979 2022 178,850 2023 181,227 Thereafter 596,901 $ 1,641,384 Operating lease cost and other information (in thousands): Three months ended Nine months ended September 30, 2019 September 30, 2019 Fixed lease cost $ 63,724 $ 180,324 Variable lease cost $ 1,219 $ 10,157 Operating cash flows used for leases $ 67,744 $ 192,066 Noncash right-of-use assets recorded for lease liabilities: For January 1 adoption of Topic 842 $ — $ 1,035,062 In exchange for new lease liabilities during the period $ 74,500 $ 114,542 Weighted-average remaining lease term 4.70 years 4.70 years Weighted-average discount rate 4.24% 4.24% The maturities of lease liabilities were as follows (in thousands): September 30, 2019 2019 remaining months $ 14,092 2020 210,473 2021 185,415 2022 159,454 2023 144,674 Thereafter 500,187 Total lease payments 1,214,295 Less: Imputed interest (64,690 ) $ 1,149,605 As of September 30, 2019, the Company has additional operating leases, primarily for new retail stores, that have not yet commenced which will generate additional right-of-use assets of $2.7 million. These operating leases will commence in 2019 with lease terms ranging from 1 year to 10 years. |
Line of Credit, Short-Term and
Line of Credit, Short-Term and Long-Term Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Line of Credit, Short-Term and Long-Term Borrowings | ( 4 ) LINE OF CREDIT, SHORT-TERM AND LONG-TERM BORROWINGS The Company had $3.7 million Long-term borrowings at September 30, 2019 and December 31, 2018 are as follows (in thousands): 2019 2018 Note payable to banks, due in monthly installments of $348 (includes principal and interest), variable-rate interest at 4.24% per annum, secured by property, balloon payment of $62,843 due August 2020 $ 64,056 $ 65,148 Note payable to Luen Thai Enterprise, Ltd., balloon payment of $5,880 due January 2021 5,880 5,800 Note payable to TCF Equipment Finance, Inc., due in monthly installments of $30 (includes principal and interest), fixed- rate interest at 5.24% per annum, paid in July 2019 — 211 Loan payable to a bank, variable-rate interest at 4.28% per annum, due September 2023 33,893 18,626 Loan payable to a bank, variable-rate interest at 3.20% per annum, due October 2023 2,590 — Subtotal 106,419 89,785 Less: current installments 66,646 1,666 Total long-term borrowings $ 39,773 $ 88,119 The Company’s long-term debt obligations contain both financial and non-financial covenants, including cross-default provisions. The Company was in compliance with the covenants of its long-term borrowings as of September 30, 2019. On October 24, 2018, through our Chinese joint venture, the Company entered into a $17.5 million loan agreement with The Hongkong and Shanghai Banking Corporation Limited (the “China Loan Agreement”). The China Loan Agreement allows for partial drawdown. Interest will be paid at one, two or three months, depending on the period of the drawdown. The interest rate will be based upon the London Interbank Offered Rate (“LIBOR”) plus 1.2% per annum. As specified in the China Loan Agreement, the principal of the loan will be repayable by fifteen equal quarterly installments of $0.4 million, commencing fifteen months after drawdown plus a final installment of $10.9 million. The loan has a term of 5 years. The China Loan Agreement contains customary affirmative and negative covenants for secured credit facilities of this type. The obligations of our Chinese joint venture under the China Loan Agreement are jointly and severally guaranteed by the Company and Luen Thai Enterprises Ltd. The Company had $2.6 million outstanding in current installments of long-term borrowing as of September 30, 2019. On October 19, 2018, through a subsidiary of the Company’s Chinese joint venture (the “TC Subsidiary”), the Company entered into a 50 million yuan revolving loan agreement with China Construction Bank Corporation (the “China DC Revolving Loan Agreement”). The proceeds from the China DC Revolving Loan Agreement will be used to finance the construction and operation of the Company’s distribution center in China. Interest will be paid quarterly. The interest rate will be based upon the prime rate from the People’s Bank of China less a discount. As specified in the China DC Revolving Loan Agreement, the entire principal balance of the loan will be repaid when the China DC Revolving Loan Agreement matures on October 18, 2020. The TC Subsidiary has the option to extend the China DC Revolving Agreement, conditioned upon the satisfaction of certain terms. The China DC Revolving Loan Agreement contains customary affirmative and negative covenants for secured credit facilities of this type, including covenants that will limit the ability of the TC Subsidiary, to among other things, allow external investment to be added, pledge assets, issue debt with priority over the China DC Revolving Loan Agreement, and adjust the capital stock structure of the TC Subsidiary. The obligations of the TC Subsidiary under the China DC Revolving Loan Agreement are jointly and severally guaranteed by the Company’s Chinese joint venture. There was no amount outstanding as of September 30, 2019. On September 29, 2018, through the TC Subsidiary, the Company entered into a 700 million yuan loan agreement with China Construction Bank Corporation (“the China DC Loan Agreement”). The proceeds from the China DC Loan Agreement is being used to finance the construction of the Company’s distribution center in China. Interest is paid quarterly. The interest rate was 4.28% at September 30, 2019, which floats and is calculated at a reference rate provided by the People’s Bank of China. The interest rate may increase or decrease over the life of the loan, and will be evaluated every 12 months. The principal of the loan will be repaid in semi-annual installments, beginning in 2021, of variable amounts as specified in the China DC Loan Agreement. The China DC Loan Agreement contains customary affirmative and negative covenants for secured credit facilities of this type, including covenants that limit the ability of the Subsidiary to, among other things, allow external investment to be added, pledge assets, issue debt with priority over the China DC Loan Agreement, and adjust the capital stock structure of the TC Subsidiary. The China DC Loan Agreement matures on September 28, 2023. The obligations of the TC Subsidiary under the China DC Loan Agreement are jointly and severally guaranteed by the Company’s Chinese joint venture. The Company had $33.9 million outstanding in long-term borrowings as of September 30, 2019. On September 20, 2018, through two subsidiaries of the Company’s Chinese joint venture (the “SGZ and SSH Subsidiaries”), the Company entered into a 125 million yuan revolving loan agreement with HSBC Bank (China) Company Limited, Guangzhou Branch (the “Revolving Loan Agreement”). The Revolving Loan Agreement is comprised of two tranches: a 125 million yuan revolving loan facility and a 15 million yuan non-financial bank guarantee facility. The proceeds from the Revolving Loan Agreement will be used to finance the SGZ and SSH Subsidiaries’ working capital requirements. Interest will be paid at one, two or three months, depending on the term of each loan. The interest rate will be equal to 100% of the applicable People’s Bank of China (“PBOC”) Benchmark Lending Rate, provided that if the PBOC Benchmark Lending Rate changes during the term of a loan, the applicable interest rate for that loan will not change until the next rollover date of that loan (if any). The Revolving Loan Agreement contains customary affirmative and negative covenants for secured credit facilities of this type, including covenants that limit the ability of the joint venture to, among other things, allow external investment to be added, pledge assets and issue debt with priority over the Revolving Loan Agreement. The term of each loan will be one, three or six months or such other period as agreed by the lender. The term of a loan, including any extension or rollover, shall not exceed twelve months. The obligations of the SGZ and SSH Subsidiaries under the Revolving Loan Agreement are guaranteed by the Company, Luen Thai Enterprises Ltd., Skechers Guangzhou Co., Ltd and Skechers Trading (Shanghai) Co Ltd. There was no amount outstanding as of September 30, 2019. 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 “2015 Credit Agreement”), with the following lenders: Bank of America, N.A., MUFG Union Bank, N.A. and HSBC Bank USA, National Association. The 2015 Credit Agreement matures on June 30, 2020. The 2015 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 2015 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 2015 Credit Agreement further provides for a limit on the issuance of letters of credit to a maximum of $100.0 million. The 2015 Credit Agreement contains customary affirmative and negative covenants for secured credit facilities of this type, including covenants that 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 2015 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 2015 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 September 30, 2019 and December 31, 2018, there was $0.3 and $0.1 million outstanding under the 2015 Credit Agreement which is classified as short-term borrowings in the Company’s condensed consolidated balance sheets. The remaining balance in short-term borrowings, as of September 30, 2019, 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 non-controlling interests in the condensed consolidated balance sheets. 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 2015 Credit Agreement dated June 30, 2015. As of September 30, 2019, there was $64.1 million outstanding under the Amended Loan Agreement, which is included in current installments of long-term borrowings. |
Non-Controlling Interests
Non-Controlling Interests | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | ( 5 ) NON-CONTROLLING INTERESTS The Company has equity interests in several joint ventures that were established either to exclusively distribute the Company’s products 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. In April 2019, the Company acquired a 60% interest in a joint venture in Mexico. See Note 6 – Acquisition for additional information. In February 2019, the Company purchased the minority interest of its India joint-venture for $82.9 million, which made its India joint venture a wholly owned subsidiary. With the exception of the India joint venture becoming a wholly owned subsidiary and the acquisition of the Mexico joint venture, there have been no changes during 2019 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 (1) September 30, 2019 December 31, 2018 Current assets $ 6,278 $ 2,121 Non-current assets 105,161 98,148 Total assets $ 111,439 $ 100,269 Current liabilities $ 65,305 $ 2,738 Non-current liabilities 1,009 64,702 Total liabilities $ 66,314 $ 67,440 Product distribution joint ventures (2) September 30, 2019 December 31, 2018 Current assets $ 685,514 $ 540,768 Non-current assets 269,293 128,250 Total assets $ 954,807 $ 669,018 Current liabilities $ 417,534 $ 294,640 Non-current liabilities 142,435 26,444 Total liabilities $ 559,969 $ 321,084 (1) Includes HF Logistics-SKX, LLC and HF Logistics-SKX, T2, LLC (2) Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, and Manhattan SKMX, S. de R.L. de C.V. (Mexico). The following is a summary of net earnings attributable to, distributions to and contributions from non-controlling interests (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net earnings attributable to non-controlling interests $ 18,644 $ 15,323 $ 57,723 $ 50,504 Distributions to: HF Logistics-SKX, LLC 870 1,085 2,718 3,292 Skechers China Limited 12,600 7,270 32,245 12,660 Skechers South Asia Private Limited — — — 68 Skechers Southeast Asia Limited 2,027 2,025 2,027 2,025 Skechers Hong Kong Limited 618 618 618 618 Contributions from: HF Logistics-SKX, LLC — — 7,565 — Manhattan SKMX, S. de R.L. de C.V. — — 22,776 — |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition | (6) ACQUISITION Mexico Joint Venture Acquisition On April 1, 2019, the Company purchased a 60% interest in Manhattan SKMX, S. de R.L. de C.V. (“Skechers Mexico”) Skechers Mexico is a The Company is in the process of preparing a purchase price allocation and the finalization may result in changes in the valuation of assets acquired and liabilities assumed. The Company will finalize the purchase price allocation as soon as practicable, but not to exceed one year following April 1, 2019. Pro forma results of operations have not been presented because the effects of the acquisition, individually and in the aggregate, were not material to the Company’s condensed consolidated financial statements. |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Sep. 30, 2019 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | ( 7 ) 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. As of September 30, 2019, there was $20.0 million remaining to repurchase shares under the Share Repurchase Program. 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 and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Shares repurchased — 1,406,591 968,724 1,993,163 Average cost per share $ — $ 28.46 $ 30.99 $ 29.11 Total cost of shares repurchased (in thousands): $ — $ 40,027 $ 30,019 $ 58,027 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | ( 8 ) 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 September 30, Nine Months Ended September 30, Basic earnings per share 2019 2018 2019 2018 Net earnings attributable to Skechers U.S.A., Inc. $ 103,090 $ 90,728 $ 287,028 $ 253,663 Weighted average common shares outstanding 153,298 155,766 153,396 156,238 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 0.67 $ 0.58 $ 1.87 $ 1.62 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 September 30, Nine Months Ended September 30, Diluted earnings per share 2019 2018 2019 2018 Net earnings attributable to Skechers U.S.A., Inc. $ 103,090 $ 90,728 $ 287,028 $ 253,663 Weighted average common shares outstanding 153,298 155,766 153,396 156,238 Dilutive effect of nonvested shares 680 532 625 743 Weighted average common shares outstanding 153,978 156,298 154,021 156,981 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 0.67 $ 0.58 $ 1.86 $ 1.62 There were 6,454 and 101,992 shares excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2019 because they are anti-dilutive. There were 407,267 and 335,885 shares excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2018 because they are anti-dilutive. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation | ( 9 ) STOCK COMPENSATION (a) Incentive Award Plan 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 Incentive Award Plan (the “2007 Plan”), which expired pursuant to its terms on May 24, 2017. 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 $10.7 million and $7.6 million for the three months ended September 30, 2019 and 2018, respectively. Share-based compensation expense was $30.2 million and $23.6 million for the nine months ended September 30, 2019 and 2018, respectively. During the three and nine months ended September 30, 2019, the Company redeemed 4,821 and 423,206 shares of Class A Common Stock for $0.2 million and $13.7 million to satisfy employee tax withholding requirements. During the three and nine months ended September 30, 2018, the Company redeemed 7,899 and 308,155 shares of Class A Common Stock for $0.2 million and $11.4 million to satisfy employee tax withholding requirements, respectively. 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 nine months ended September 30, 2019 is presented below: Shares Weighted Average Grant-Date Fair Value Nonvested at December 31, 2018 2,968,941 $ 34.79 Granted 1,567,000 $ 28.21 Vested (1,065,283 ) $ 32.27 Cancelled (25,250 ) $ 39.69 Nonvested at September 30, 2019 3,445,408 $ 32.54 As of September 30, 2019, there was $90.5 million of unrecognized compensation cost related to nonvested common shares. The cost is expected to be amortized over a weighted average period of 2.3 years. (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 ESPP replaced the Company’s previous employee stock purchase plan, the Skechers U.S.A., Inc. 2008 Employee Stock Purchase Plan (the “2008 ESPP”), which expired pursuant to its terms on January 1, 2018. 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. 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 issuance under the 2018 ESPP. The purchase price discount and the look-back feature cause the 2018 ESPP to be compensatory and the Company recognizes compensation expense which is computed using Black-Scholes options pricing model. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 10 ) INCOME TAXES Income tax expense and the effective tax rate for the three and nine months ended September 30, 2019 and 2018 were as follows (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income tax expense $ 22,766 $ 16,821 $ 75,288 $ 45,521 Effective tax rate 15.8 % 13.7 % 17.9 % 13.0 % The tax provisions for the three and nine months ended September 30, 2019 and 2018 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 tax rate to be between 17.0% to 19.0% for 2019. The Company’s tax rate 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 0.0% to 34.6%, which is on average significantly lower than the U.S. federal and state combined statutory rate of approximately 24.7%. Due to the enactment of the 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 and nine months ended September 30, 2019 and 2018. For the three months As of September 30, 2019, the Company had approximately $824.0 million in cash and cash equivalents, of which $533.6 million, or 64.8%, was held outside the U.S. Of the $533.6 million held by the Company’s non-U.S. subsidiaries, approximately $247.3 million is available for repatriation to the U.S. without incurring U.S. federal 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 September 30, 2019. On July 27, 2015, the United States Tax Court issued a decision (the “Tax Court Decision”) in Altera Corp. v. Commissioner, which concluded that related parties in a cost sharing arrangement are not required to share expenses related to share-based compensation. The Tax Court Decision was appealed by the Commissioner to the Ninth Circuit Court of Appeals (the “Ninth Circuit”). On June 7, 2019, a three-judge panel from the Ninth Circuit issued an opinion (the“Altera Ninth Circuit Panel Opinion”) that reversed the Tax Court Decision. Based on the Altera Ninth Circuit Panel Opinion, the Company recorded a cumulative income tax expense of $1.5 million in the second quarter of 2019. On July 22, 2019, Altera requested a rehearing before the full Ninth Circuit and may subsequently appeal from the Ninth Circuit to the Supreme Court. As a result, the final outcome of the case is uncertain. If the Altera Ninth Circuit Panel Opinion is reversed, we would anticipate recording an income tax benefit at that time. 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 Transition Tax liability, the Company may repatriate certain funds held outside the U.S. for which U.S. federal and non-U.S. tax has been fully provided as of September 30, 2019. The Company has provided for the tax impact of expected distributions from its joint venture in China as well as from its subsidiary in Chile to its intermediate parent company in Switzerland. Otherwise, because of the need for cash for operating capital and continued overseas expansion, the Company does not foresee the need for any of our other 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 choses to repatriate some or all of the funds it 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, and to certain state income taxes. |
Business and Credit Concentrati
Business and Credit Concentrations | 9 Months Ended |
Sep. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Business and Credit Concentrations | (1 1 ) 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 $213.6 million and $213.7 million before allowances for bad debts, sales returns and chargebacks at September 30, 2019 and December 31, 2018, respectively. Foreign accounts receivable, which in some cases are collateralized by letters of credit, were $474.5 million and $313.8 million before allowance for bad debts, sales returns and chargebacks at September 30, 2019 and December 31, 2018, respectively. The Company’s credit losses attributable to write-offs for the three months ended September 30, 2019 and 2018 were $1.6 million and $2.2 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 $2.4 billion and $1.6 billion at September 30, 2019 and December 31, 2018, respectively. The Company’s net sales to its five largest customers accounted for approximately 9.4% and 10.6% of total net sales for the three months ended September 30, 2019 and 2018, respectively. The Company’s net sales to its five largest customers accounted for approximately 9.7% and 10.5% of total net sales for the nine months ended September 30, 2019 and 2018, respectively. The Company’s top five manufacturers produced the following, as a percentage of total production, for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Manufacturer #1 16.5 % 11.1 % 15.8 % 11.3 % Manufacturer #2 8.3 % 10.1 % 8.3 % 10.7 % Manufacturer #3 7.2 % 6.8 % 6.9 % 9.1 % Manufacturer #4 5.5 % 6.7 % 5.1 % 5.4 % Manufacturer #5 4.7 % 5.6 % 5.0 % 5.4 % 42.2 % 40.3 % 41.1 % 41.9 % Th e 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, tariffs 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 | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting | (1 2 ) SEGMENT AND GEOGRAPHIC REPORTING The Company has three reportable segments – domestic wholesale sales, international wholesale sales, and direct-to-consumer 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, direct-to-consumer sales segments on a combined basis were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales: Domestic wholesale $ 299,634 $ 285,406 $ 951,635 $ 991,658 International wholesale 646,595 531,123 1,824,214 1,573,955 Direct-to-consumer 407,769 359,866 1,113,470 995,657 Total $ 1,353,998 $ 1,176,395 $ 3,889,319 $ 3,561,270 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Gross profit: Domestic wholesale $ 111,205 $ 110,572 $ 354,299 $ 372,166 International wholesale 298,800 240,056 837,467 752,336 Direct-to-consumer 243,059 213,238 661,642 583,424 Total $ 653,064 $ 563,866 $ 1,853,408 $ 1,707,926 September 30, 2019 December 31, 2018 Identifiable assets: Domestic wholesale $ 1,402,723 $ 1,428,463 International wholesale 1,929,322 1,423,048 Direct-to-consumer 1,234,153 376,744 Total $ 4,566,198 $ 3,228,255 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Additions to property, plant and equipment: Domestic wholesale $ 7,976 $ 10,654 $ 66,001 $ 28,320 International wholesale 27,947 13,711 73,922 31,118 Direct-to-consumer 13,010 12,126 34,740 37,871 Total $ 48,933 $ 36,491 $ 174,663 $ 97,309 Geographic Information: The following summarizes the Company’s operations in different geographic areas for the periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net Sales (1) United States $ 558,173 $ 523,281 $ 1,655,413 $ 1,648,642 Canada 46,576 44,646 138,900 146,080 Other international (2) 749,249 608,468 2,095,006 1,766,548 Total $ 1,353,998 $ 1,176,395 $ 3,889,319 $ 3,561,270 September 30, 2019 December 31, 2018 Property, plant and equipment, net: United States 434,687 385,584 Canada 7,549 9,081 Other international (2) 260,309 190,792 Total $ 702,545 $ 585,457 (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 and Mexico 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, the Company does not authorize or permit any distribution or sales of its product in these countries, and the Company is not aware of any current or past distribution or sales of our product in Sudan or Syria. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (1 3 ) 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 September 30, 2019 and 2018, the Company made contributions of $250,000 and $251,000 to the Foundation, respectively. During the nine months ended September 30, 2019 and 2018, the Company made contributions of $750,000 and $751,000 to the Foundation, respectively. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | (1 4 ) 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 September 30, 2019, 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) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018. The results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2019. |
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 accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: • Level 1 – Quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 non-derivative investments primarily include money market funds and U.S. Treasury securities. • Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s Level 2 non-derivative investments primarily include corporate notes and bonds, asset-backed securities, U.S. Agency securities, and actively traded mutual funds. The Company has one Level 2 derivative which is an interest rate swap related to the refinancing of its domestic distribution center (see below). • Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The Company currently does not have any Level 3 assets or liabilities. The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, short-term investments, accounts receivable, long-term investments, 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 4). 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. |
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 In accordance with Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers 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 for retail and e-commerce sales 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, the Company receives up-front fees, which are generally characterized as prepaid royalties. These fees are initially deferred and recognized as revenue is earned (i.e., as licensed sales are reported to the Company or on a straight-line basis over the term of the agreement). The Company applies the sales-based royalty exception for the royalty income based on sales and recognizes revenue only when subsequent sales occur. The Company calculates and accrues estimated royalties based on the agreement terms and correspondence with the licensees regarding actual sales. Judgments |
Business Combinations | Business Combinations Business acquisitions are accounted for under the acquisition method by assigning the purchase price to tangible and intangible assets acquired and liabilities assumed. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Purchased intangible assets with finite lives are amortized over their estimated useful lives. Goodwill and intangible assets with indefinite lives are not amortized but are tested at least annually for impairment or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value determinations require judgment and may involve the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives, and market multiples, among other items. The purchase price allocation is subject to adjustment until the Company has completed its analysis within the measurement period. During the nine months ended September 30, 2019, the Company made acquisitions amounting to $100.7 million. The Company is in the process of preparing the purchase price allocation and the finalization may result in changes in the valuation of assets acquired and liabilities assumed. The Company will finalize the purchase price allocation as soon as practicable, but not to exceed one year following April 1, 2019. |
Accounting Standards Adopted in 2019 | Accounting Standards Adopted in 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases Leases. The standard did not have an impact on debt-covenant compliance under the Company's current debt agreements because it is a result of a change in accounting principle. See Note 3 - Leases for additional information regarding the accounting for leases. 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,” Recent Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” In August 2018, the FASB issued ASU No. 2018-15 “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract,” In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Measurement of Credit Losses on Financial Statements, (“ASU No. 201 6 -13”) which required measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2020 and is required to be applied prospectively. For our trade receivables, certain other receivables and certain other financial instruments, we will be required to use a new forward-looking “expected” credit loss model based on historical loss rates that will replace the existing “incurred” credit los s model, which will generally result in earlier recognition of allowances for credit losses. The Company is currently evaluating the impact of ASU 201 6 -1 3 ; however, at the current time the Company does not expect that the adoption of this ASU will have a material impact on its condensed consolidated financial statements or disclosures. |
Cash, Cash Equivalents, Short_2
Cash, Cash Equivalents, Short-Term And Long-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash Cash Equivalents And Short Term And Long Term Investments [Abstract] | |
Summary of Cash, Cash Equivalents, Short-Term and Long-Term Investments by Significant Investment Category | The following tables show the Company’s cash, cash equivalents, short-term and long-term investments by significant investment category as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 658,259 $ - $ - $ 658,259 $ 658,259 $ - $ - Level 1: Money market funds 165,745 - - 165,745 165,745 - - U.S. Treasury securities 9,949 - - 9,949 - 1,855 8,094 Total level 1 175,694 - - 175,694 165,745 1,855 8,094 Level 2: - - - Corporate notes and bonds 128,542 - - 128,542 - 96,899 31,643 Asset-backed securities 20,887 - - 20,887 - 1,372 19,515 U.S. Agency securities 13,765 - - 13,765 - 6,621 7,144 Mutual funds 24,453 - - 24,453 - - 24,453 Total level 2 187,647 - - 187,647 - 104,892 82,755 TOTAL $ 1,021,600 $ - $ - $ 1,021,600 $ 824,004 $ 106,747 $ 90,849 December 31, 2018 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 713,624 $ - $ - $ 713,624 $ 713,624 $ - $ - Level 1: Money market funds 158,613 - - 158,613 158,613 - - U.S. Treasury securities 6,955 - - 6,955 - 4,979 1,976 Total level 1 165,568 - - 165,568 158,613 4,979 1,976 Level 2: - - - Corporate notes and bonds 132,280 - - 132,280 - 88,412 43,868 Asset-backed securities 23,310 - - 23,310 - 2,115 21,195 U.S. Agency securities 10,272 - - 10,272 - 4,523 5,749 Mutual funds 20,957 - - 20,957 - - 20,957 Total level 2 186,819 - - 186,819 - 95,050 91,769 TOTAL $ 1,066,011 $ - $ - $ 1,066,011 $ 872,237 $ 100,029 $ 93,745 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Future Minimum Obligations under Operating Leases Before Adoption of ASU 842 | The future minimum obligations under operating leases in effect as of December 31, 2018 having a noncancelable term in excess of one year as determined prior to the adoption of ASU 842 are as follows (in thousands): December 31, 2018 2019 $ 251,711 2020 228,716 2021 203,979 2022 178,850 2023 181,227 Thereafter 596,901 $ 1,641,384 |
Summary of Operating Lease Cost and Other Information | Operating lease cost and other information (in thousands): Three months ended Nine months ended September 30, 2019 September 30, 2019 Fixed lease cost $ 63,724 $ 180,324 Variable lease cost $ 1,219 $ 10,157 Operating cash flows used for leases $ 67,744 $ 192,066 Noncash right-of-use assets recorded for lease liabilities: For January 1 adoption of Topic 842 $ — $ 1,035,062 In exchange for new lease liabilities during the period $ 74,500 $ 114,542 Weighted-average remaining lease term 4.70 years 4.70 years Weighted-average discount rate 4.24% 4.24% |
Summary of Maturities of Lease Liabilities | The maturities of lease liabilities were as follows (in thousands): September 30, 2019 2019 remaining months $ 14,092 2020 210,473 2021 185,415 2022 159,454 2023 144,674 Thereafter 500,187 Total lease payments 1,214,295 Less: Imputed interest (64,690 ) $ 1,149,605 |
Line of Credit, Short-Term an_2
Line of Credit, Short-Term and Long-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | Long-term borrowings at September 30, 2019 and December 31, 2018 are as follows (in thousands): 2019 2018 Note payable to banks, due in monthly installments of $348 (includes principal and interest), variable-rate interest at 4.24% per annum, secured by property, balloon payment of $62,843 due August 2020 $ 64,056 $ 65,148 Note payable to Luen Thai Enterprise, Ltd., balloon payment of $5,880 due January 2021 5,880 5,800 Note payable to TCF Equipment Finance, Inc., due in monthly installments of $30 (includes principal and interest), fixed- rate interest at 5.24% per annum, paid in July 2019 — 211 Loan payable to a bank, variable-rate interest at 4.28% per annum, due September 2023 33,893 18,626 Loan payable to a bank, variable-rate interest at 3.20% per annum, due October 2023 2,590 — Subtotal 106,419 89,785 Less: current installments 66,646 1,666 Total long-term borrowings $ 39,773 $ 88,119 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 (1) September 30, 2019 December 31, 2018 Current assets $ 6,278 $ 2,121 Non-current assets 105,161 98,148 Total assets $ 111,439 $ 100,269 Current liabilities $ 65,305 $ 2,738 Non-current liabilities 1,009 64,702 Total liabilities $ 66,314 $ 67,440 Product distribution joint ventures (2) September 30, 2019 December 31, 2018 Current assets $ 685,514 $ 540,768 Non-current assets 269,293 128,250 Total assets $ 954,807 $ 669,018 Current liabilities $ 417,534 $ 294,640 Non-current liabilities 142,435 26,444 Total liabilities $ 559,969 $ 321,084 (1) Includes HF Logistics-SKX, LLC and HF Logistics-SKX, T2, LLC (2) Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, and Manhattan SKMX, S. de R.L. de C.V. (Mexico). |
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net earnings attributable to non-controlling interests $ 18,644 $ 15,323 $ 57,723 $ 50,504 Distributions to: HF Logistics-SKX, LLC 870 1,085 2,718 3,292 Skechers China Limited 12,600 7,270 32,245 12,660 Skechers South Asia Private Limited — — — 68 Skechers Southeast Asia Limited 2,027 2,025 2,027 2,025 Skechers Hong Kong Limited 618 618 618 618 Contributions from: HF Logistics-SKX, LLC — — 7,565 — Manhattan SKMX, S. de R.L. de C.V. — — 22,776 — |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Shares repurchased — 1,406,591 968,724 1,993,163 Average cost per share $ — $ 28.46 $ 30.99 $ 29.11 Total cost of shares repurchased (in thousands): $ — $ 40,027 $ 30,019 $ 58,027 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, Nine Months Ended September 30, Basic earnings per share 2019 2018 2019 2018 Net earnings attributable to Skechers U.S.A., Inc. $ 103,090 $ 90,728 $ 287,028 $ 253,663 Weighted average common shares outstanding 153,298 155,766 153,396 156,238 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 0.67 $ 0.58 $ 1.87 $ 1.62 |
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 September 30, Nine Months Ended September 30, Diluted earnings per share 2019 2018 2019 2018 Net earnings attributable to Skechers U.S.A., Inc. $ 103,090 $ 90,728 $ 287,028 $ 253,663 Weighted average common shares outstanding 153,298 155,766 153,396 156,238 Dilutive effect of nonvested shares 680 532 625 743 Weighted average common shares outstanding 153,978 156,298 154,021 156,981 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 0.67 $ 0.58 $ 1.86 $ 1.62 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30, 2019 is presented below: Shares Weighted Average Grant-Date Fair Value Nonvested at December 31, 2018 2,968,941 $ 34.79 Granted 1,567,000 $ 28.21 Vested (1,065,283 ) $ 32.27 Cancelled (25,250 ) $ 39.69 Nonvested at September 30, 2019 3,445,408 $ 32.54 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30, 2019 and 2018 were as follows (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income tax expense $ 22,766 $ 16,821 $ 75,288 $ 45,521 Effective tax rate 15.8 % 13.7 % 17.9 % 13.0 % |
Business and Credit Concentra_2
Business and Credit Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30, 2019 and 2018: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Manufacturer #1 16.5 % 11.1 % 15.8 % 11.3 % Manufacturer #2 8.3 % 10.1 % 8.3 % 10.7 % Manufacturer #3 7.2 % 6.8 % 6.9 % 9.1 % Manufacturer #4 5.5 % 6.7 % 5.1 % 5.4 % Manufacturer #5 4.7 % 5.6 % 5.0 % 5.4 % 42.2 % 40.3 % 41.1 % 41.9 % |
Segment and Geographic Report_2
Segment and Geographic Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Net sales, gross margins, identifiable assets and additions to property and equipment for the domestic wholesale, international wholesale, direct-to-consumer sales segments on a combined basis were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales: Domestic wholesale $ 299,634 $ 285,406 $ 951,635 $ 991,658 International wholesale 646,595 531,123 1,824,214 1,573,955 Direct-to-consumer 407,769 359,866 1,113,470 995,657 Total $ 1,353,998 $ 1,176,395 $ 3,889,319 $ 3,561,270 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Gross profit: Domestic wholesale $ 111,205 $ 110,572 $ 354,299 $ 372,166 International wholesale 298,800 240,056 837,467 752,336 Direct-to-consumer 243,059 213,238 661,642 583,424 Total $ 653,064 $ 563,866 $ 1,853,408 $ 1,707,926 September 30, 2019 December 31, 2018 Identifiable assets: Domestic wholesale $ 1,402,723 $ 1,428,463 International wholesale 1,929,322 1,423,048 Direct-to-consumer 1,234,153 376,744 Total $ 4,566,198 $ 3,228,255 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Additions to property, plant and equipment: Domestic wholesale $ 7,976 $ 10,654 $ 66,001 $ 28,320 International wholesale 27,947 13,711 73,922 31,118 Direct-to-consumer 13,010 12,126 34,740 37,871 Total $ 48,933 $ 36,491 $ 174,663 $ 97,309 |
Geographic Information | Geographic Information: The following summarizes the Company’s operations in different geographic areas for the periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net Sales (1) United States $ 558,173 $ 523,281 $ 1,655,413 $ 1,648,642 Canada 46,576 44,646 138,900 146,080 Other international (2) 749,249 608,468 2,095,006 1,766,548 Total $ 1,353,998 $ 1,176,395 $ 3,889,319 $ 3,561,270 September 30, 2019 December 31, 2018 Property, plant and equipment, net: United States 434,687 385,584 Canada 7,549 9,081 Other international (2) 260,309 190,792 Total $ 702,545 $ 585,457 (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 and Mexico 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 Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Derivative effective dates | Aug. 12, 2015 | |
Cash consideration paid, net of cash acquired | $ 100,658 | |
Sales Returns and Allowances [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Sales returns liability | $ 79,600 | $ 67,300 |
Cash, Cash Equivalents, Short_3
Cash, Cash Equivalents, Short-Term and Long-Term Investments - Summary of Cash, Cash Equivalents, Short-Term and Long-Term Investments by Significant Investment Category (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | $ 824,004 | $ 872,237 | $ 802,771 | $ 736,431 |
Short-Term Investments | 106,747 | 100,029 | ||
Long-Term Investments | 90,849 | 93,745 | ||
Adjusted Cost | 1,021,600 | 1,066,011 | ||
Fair Value | 1,021,600 | 1,066,011 | ||
Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 165,745 | 158,613 | ||
Short-Term Investments | 1,855 | 4,979 | ||
Long-Term Investments | 8,094 | 1,976 | ||
Adjusted Cost | 175,694 | 165,568 | ||
Fair Value | 175,694 | 165,568 | ||
Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 104,892 | 95,050 | ||
Long-Term Investments | 82,755 | 91,769 | ||
Adjusted Cost | 187,647 | 186,819 | ||
Fair Value | 187,647 | 186,819 | ||
Money market funds [Member] | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 165,745 | 158,613 | ||
Adjusted Cost | 165,745 | 158,613 | ||
Fair Value | 165,745 | 158,613 | ||
U.S. Treasury Securities | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 1,855 | 4,979 | ||
Long-Term Investments | 8,094 | 1,976 | ||
Adjusted Cost | 9,949 | 6,955 | ||
Fair Value | 9,949 | 6,955 | ||
Mutual Funds [Member] | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Long-Term Investments | 24,453 | 20,957 | ||
Adjusted Cost | 24,453 | 20,957 | ||
Fair Value | 24,453 | 20,957 | ||
Corporate Notes and Bonds [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 96,899 | 88,412 | ||
Long-Term Investments | 31,643 | 43,868 | ||
Adjusted Cost | 128,542 | 132,280 | ||
Fair Value | 128,542 | 132,280 | ||
Asset-backed Securities [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 1,372 | 2,115 | ||
Long-Term Investments | 19,515 | 21,195 | ||
Adjusted Cost | 20,887 | 23,310 | ||
Fair Value | 20,887 | 23,310 | ||
U.S. Agency Securities | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 6,621 | 4,523 | ||
Long-Term Investments | 7,144 | 5,749 | ||
Adjusted Cost | 13,765 | 10,272 | ||
Fair Value | 13,765 | 10,272 | ||
Cash [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 658,259 | 713,624 | ||
Fair Value | $ 658,259 | $ 713,624 |
Cash, Cash Equivalents, Short_4
Cash, Cash Equivalents, Short-Term and Long-Term Investments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Maximum [Member] | |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | |
Long-term investments maturity period | 2 years |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leased Assets [Line Items] | |
Operating lease liabilities | $ 172,947 |
Operating lease right-of-use assets | $ 985,001 |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lease term | 1 year |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lease term | 10 years |
Retail Stores Leases [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease right-of-use assets | $ 2,700 |
Retail Stores Leases [Member] | Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lease term | 5 years |
Retail Stores Leases [Member] | Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lease term | 10 years |
Other Real Estate or Facility Leases [Member] | Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lease term | 20 years |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Obligations under Operating Leases Before Adoption of ASU 842 (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 | $ 251,711 |
2020 | 228,716 |
2021 | 203,979 |
2022 | 178,850 |
2023 | 181,227 |
Thereafter | 596,901 |
Total | $ 1,641,384 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Cost and Other Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lessee Lease Description [Line Items] | ||
Fixed lease cost | $ 63,724 | $ 180,324 |
Variable lease cost | 1,219 | 10,157 |
Operating cash flows used for leases | 67,744 | 192,066 |
Noncash right-of-use assets recorded for lease liabilities: | ||
Operating lease right-of-use assets | 985,001 | 985,001 |
In exchange for new lease liabilities during the period | $ 74,500 | $ 114,542 |
Weighted-average remaining lease term | 4 years 8 months 12 days | 4 years 8 months 12 days |
Weighted-average discount rate | 4.24% | 4.24% |
Topic 842 [Member] | ||
Noncash right-of-use assets recorded for lease liabilities: | ||
Operating lease right-of-use assets | $ 1,035,062 | $ 1,035,062 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 remaining months | $ 14,092 |
2020 | 210,473 |
2021 | 185,415 |
2022 | 159,454 |
2023 | 144,674 |
Thereafter | 500,187 |
Total lease payments | 1,214,295 |
Less: Imputed interest | (64,690) |
Present value of lease liabilities | $ 1,149,605 |
Line of Credit, Short-Term an_3
Line of Credit, Short-Term and Long-Term Borrowings - Additional Information (Detail) | Oct. 24, 2018USD ($)Installment | Oct. 19, 2018CNY (¥) | Sep. 29, 2018CNY (¥) | Aug. 11, 2015USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2015USD ($) | Nov. 16, 2012USD ($) | Apr. 30, 2010USD ($) |
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit | $ 3,700,000 | $ 3,200,000 | |||||||
Short-term borrowings | 16,270,000 | 7,222,000 | |||||||
Current installments of long-term borrowings | $ 66,646,000 | 1,666,000 | |||||||
Derivative effective dates | Aug. 12, 2015 | ||||||||
Long-term borrowings | $ 106,419,000 | 89,785,000 | |||||||
Modification Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term borrowings | $ 64,100,000 | ||||||||
Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount of credit facility | $ 250,000,000 | ||||||||
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 2015 Credit Agreement. | ||||||||
Line of credit facility, expiration period | 5 years | ||||||||
Line of credit facility, outstanding amount | $ 300,000 | 100,000 | |||||||
Maturity date of credit agreement | Jun. 30, 2020 | ||||||||
Unused line of credit fee | 0.25% | ||||||||
Line of Credit [Member] | Other Assets [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt closing and arrangement fees | $ 1,100,000 | ||||||||
Line of Credit [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, increase | $ 100,000,000 | ||||||||
LIBOR Loans [Member] | Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of line of credit agreement | 1.00% | ||||||||
Federal Funds Rate [Member] | Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of line of credit agreement | 0.50% | ||||||||
China USD Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount of credit facility | $ 17,500,000 | ||||||||
Line of credit facility, interest rate | Interest will be paid at one, two or three months, depending on the period of the drawdown. The interest rate will be based upon the London Interbank Offered Rate (“LIBOR”) plus 1.2% per annum. | ||||||||
Line of credit facility, frequency of payment and payment term | the principal of the loan will be repayable by fifteen equal quarterly installments of $0.4 million, commencing fifteen months after drawdown plus a final installment of $10.9 million. | ||||||||
Number of quarterly installments | Installment | 15 | ||||||||
Line of credit facility, quarterly principal payment | 0.4 million | ||||||||
Line of credit facility, final principal payment | $ 10,900,000 | ||||||||
Line of credit facility, expiration period | 5 years | ||||||||
Current installments of long-term borrowings | $ 2,600,000 | ||||||||
China USD Loan Agreement [Member] | LIBOR Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of line of credit agreement | 1.20% | ||||||||
China DC Revolving Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount of credit facility | ¥ | ¥ 50,000,000 | ||||||||
Debt instrument maturity date | Oct. 18, 2020 | ||||||||
Line of credit facility, outstanding amount | $ 0 | ||||||||
China DC Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount of credit facility | ¥ | ¥ 700,000,000 | ||||||||
Line of credit facility, frequency of payment and payment term | Interest is paid quarterly. The interest rate was 4.28% at September 30, 2019, which floats and is calculated at a reference rate provided by the People’s Bank of China. The interest rate may increase or decrease over the life of the loan, and will be evaluated every 12 months. The principal of the loan will be repaid in semi-annual installments, beginning in 2021, of variable amounts as specified in the China DC Loan Agreement. | ||||||||
Debt instrument maturity date | Sep. 28, 2023 | ||||||||
Line of credit facility, outstanding amount | $ 33,900,000 | ||||||||
Debt instrument variable rate | 4.28% | ||||||||
Construction Loan Agreement [Member] | Joint Venture with HF Logistics [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% | ||||||||
Construction Loan Agreement [Member] | Original Modified Loan [Member] | Joint Venture with HF Logistics [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument maturity date | Oct. 30, 2015 | ||||||||
Construction Loan Agreement [Member] | Modification Loan [Member] | Joint Venture with HF Logistics [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument maturity date | Aug. 12, 2020 | ||||||||
Debt instrument variable rate | 4.24% | ||||||||
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. | ||||||||
Long-term borrowings | $ 64,056,000 | $ 65,148,000 | |||||||
Construction Loan Agreement [Member] | Maximum [Member] | Original Loan [Member] | Joint Venture with HF Logistics [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing under loan agreement | $ 55,000,000 | ||||||||
Construction Loan Agreement [Member] | LIBOR Loans [Member] | Modification Loan [Member] | Joint Venture with HF Logistics [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%. | ||||||||
Equipment Notes [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing under loan agreement | $ 80,000,000 |
Line of Credit, Short-Term an_4
Line of Credit, Short-Term and Long-Term Borrowings - Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 106,419 | $ 89,785 |
Less: current installments | 66,646 | 1,666 |
Total long-term borrowings | 39,773 | 88,119 |
Loan Payable to Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 33,893 | 18,626 |
Loan Payable to Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 2,590 | |
Modification Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 64,100 | |
Modification Loan [Member] | Construction Loan Agreement [Member] | Joint Venture with HF Logistics [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 64,056 | 65,148 |
Note payable to Luen Thai Enterprise, LTD [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 5,880 | 5,800 |
Notes payable to TCF Finance [Member] | Equipment Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 211 |
Line of Credit, Short-Term an_5
Line of Credit, Short-Term and Long-Term Borrowings - Long-Term Borrowings (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Note payable to Luen Thai Enterprise, LTD [Member] | |
Debt Instrument [Line Items] | |
Balloon payment required under note payable | $ 5,880 |
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 | $ 30 |
Fixed interest rate of note payable | 5.24% |
Due date for note payable | 2019-07 |
Frequency of periodic payment | monthly |
Loan Payable to Bank [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 4.28% |
Due date for loan payable | 2023-09 |
Loan Payable to Bank [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 3.20% |
Due date for loan payable | 2023-10 |
Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | Modification Loan [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | $ 348 |
Variable interest rate of note payable | 4.24% |
Balloon payment required under note payable | $ 62,843 |
Due date for note payable | 2020-08 |
Frequency of periodic payment | monthly |
Non-Controlling Interests - Add
Non-Controlling Interests - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | ||
Feb. 28, 2019 | Apr. 30, 2019 | Apr. 01, 2019 | |
Skechers Retail India Private Limited [Member] | |||
Variable Interest Entity [Line Items] | |||
Purchase of joint venture | $ 82.9 | ||
Skechers Mexico [Member] | |||
Variable Interest Entity [Line Items] | |||
Ownership interest in joint venture | 60.00% | 60.00% |
Non-Controlling Interests - Car
Non-Controlling Interests - Carrying Amounts and Classification of Assets and Liabilities for VIEs (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 2,627,376 | $ 2,472,140 |
Non-current assets | 1,938,822 | 756,115 |
TOTAL ASSETS | 4,566,198 | 3,228,255 |
Current liabilities | 1,106,813 | 850,222 |
Non-current liabilities | 1,117,932 | 188,758 |
Total liabilities | 2,224,745 | 1,038,980 |
Variable interest entity, primary beneficiary [Member] | HF Logistics [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 6,278 | 2,121 |
Non-current assets | 105,161 | 98,148 |
TOTAL ASSETS | 111,439 | 100,269 |
Current liabilities | 65,305 | 2,738 |
Non-current liabilities | 1,009 | 64,702 |
Total liabilities | 66,314 | 67,440 |
Variable interest entity, primary beneficiary [Member] | Distribution joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 685,514 | 540,768 |
Non-current assets | 269,293 | 128,250 |
TOTAL ASSETS | 954,807 | 669,018 |
Current liabilities | 417,534 | 294,640 |
Non-current liabilities | 142,435 | 26,444 |
Total liabilities | $ 559,969 | $ 321,084 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Variable Interest Entity [Line Items] | ||||
Net earnings attributable to non-controlling interests | $ 18,644 | $ 15,323 | $ 57,723 | $ 50,504 |
Distributions to non-controlling interests of consolidated entity | 37,608 | 18,663 | ||
HF Logistics-SKX, LLC [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | 870 | 1,085 | 2,718 | 3,292 |
Contributions from non-controlling interests of consolidated entity | 7,565 | |||
Skechers China Limited [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | 12,600 | 7,270 | 32,245 | 12,660 |
Skechers South Asia Private Limited [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | 68 | |||
Skechers Southeast Asia Limited [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | 2,027 | 2,025 | 2,027 | 2,025 |
Skechers Hong Kong Limited [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | $ 618 | $ 618 | 618 | $ 618 |
Manhattan SKMX, S. de R.L. de C.V. [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Contributions from non-controlling interests of consolidated entity | $ 22,776 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2019 | Sep. 30, 2019 | Apr. 30, 2019 |
Business Acquisition [Line Items] | |||
Cash consideration paid, net of cash acquired | $ 100,658 | ||
Skechers Mexico [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition date | Apr. 1, 2019 | ||
Ownership interest in joint venture | 60.00% | 60.00% | |
Cash consideration paid, net of cash acquired | $ 100,700 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Feb. 06, 2018 | |
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 | ||
Stock repurchase program remaining authorized repurchase amount | $ 20 | ||
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) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Repurchase Program [Abstract] | |||
Shares repurchased | 1,406,591 | 968,724 | 1,993,163 |
Average cost per share | $ 28.46 | $ 30.99 | $ 29.11 |
Total cost of shares repurchased (in thousands): | $ 40,027 | $ 30,019 | $ 58,027 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Line Items] | ||||
Options excluded from the computation of diluted earnings | 6,454 | 407,267 | 101,992 | 335,885 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per share | ||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 103,090 | $ 90,728 | $ 287,028 | $ 253,663 |
Weighted average common shares outstanding | 153,298 | 155,766 | 153,396 | 156,238 |
Basic earnings per share attributable to Skechers U.S.A., Inc. | $ 0.67 | $ 0.58 | $ 1.87 | $ 1.62 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Diluted earnings per share | ||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 103,090 | $ 90,728 | $ 287,028 | $ 253,663 |
Weighted average common shares outstanding | 153,298 | 155,766 | 153,396 | 156,238 |
Dilutive effect of nonvested shares | 680 | 532 | 625 | 743 |
Weighted average common shares outstanding | 153,978 | 156,298 | 154,021 | 156,981 |
Diluted earnings per share attributable to Skechers U.S.A., Inc. | $ 0.67 | $ 0.58 | $ 1.86 | $ 1.62 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 17, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 10,700 | $ 7,600 | $ 30,200 | $ 23,600 | |
Stock redeemed, value | 161 | $ 220 | 13,745 | $ 11,401 | |
Unrecognized compensation cost related to nonvested common shares | $ 90,500 | $ 90,500 | |||
Weighted average period for recognition of cost | 2 years 3 months 18 days | ||||
Class A Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock redeemed, shares | 4,821 | 7,899 | 423,206 | 308,155 | |
Stock redeemed, value | $ 200 | $ 200 | $ 13,700 | $ 11,400 | |
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% | 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) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Nonvested, Shares, Beginning of Period | shares | 2,968,941 |
Granted, Shares | shares | 1,567,000 |
Vested, Shares | shares | (1,065,283) |
Cancelled, Shares | shares | (25,250) |
Nonvested, Shares, End of Period | shares | 3,445,408 |
Nonvested, Weighted Average Grant-Date Fair Value, Beginning of Period | $ / shares | $ 34.79 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 28.21 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 32.27 |
Cancelled, Vested, Weighted Average Grant-Date Fair Value | $ / shares | 39.69 |
Nonvested, Weighted Average Grant-Date Fair Value, End of Period | $ / shares | $ 32.54 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 22,766 | $ 16,821 | $ 75,288 | $ 45,521 |
Effective tax rate | 15.80% | 13.70% | 17.90% | 13.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Income Taxes [Line Items] | |||||||
U.S. federal and state statutory rate | 24.70% | ||||||
Change in effective tax rate due to adjustment in discrete tax expense (benefit) | $ 900 | $ (3,900) | $ 3,900 | $ (13,100) | |||
Cash and cash equivalents | 824,004 | $ 802,771 | 824,004 | $ 802,771 | $ 872,237 | $ 736,431 | |
Cumulative total earnings | 247,300 | 247,300 | |||||
Cumulative income tax expense | $ 1,500 | ||||||
Non-US [Member] | |||||||
Schedule Of Income Taxes [Line Items] | |||||||
Cash and cash equivalents | 533,600 | $ 533,600 | |||||
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 | 64.80% | ||||||
Non-US [Member] | Funds Available For Repatriation [Member] | |||||||
Schedule Of Income Taxes [Line Items] | |||||||
Cash and cash equivalents | $ 533,600 | $ 533,600 | |||||
Minimum [Member] | |||||||
Schedule Of Income Taxes [Line Items] | |||||||
Effective tax rate, remainder of fiscal year | 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, remainder of fiscal year | 19.00% | ||||||
Maximum [Member] | Non-U.S jurisdictions [Member] | |||||||
Schedule Of Income Taxes [Line Items] | |||||||
Statutory federal rate | 34.60% |
Business and Credit Concentra_3
Business and Credit Concentrations - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)Customer | Sep. 30, 2018USD ($)Customer | Sep. 30, 2019USD ($)Customer | Sep. 30, 2018USD ($)Customer | Dec. 31, 2018USD ($) | |
Concentration Risk [Line Items] | |||||
Credit losses attributable to write-offs | $ 1.6 | $ 2.2 | $ 5.7 | $ 6.4 | |
Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of largest customers | Customer | 5 | 5 | 5 | 5 | |
Percentage of concentration risk | 9.40% | 10.60% | 9.70% | 10.50% | |
Domestic [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 213.6 | $ 213.6 | $ 213.7 | ||
Non-US [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | 474.5 | 474.5 | 313.8 | ||
Net total assets held outside the United States | $ 2,400 | $ 2,400 | $ 1,600 |
Business and Credit Concentra_4
Business and Credit Concentrations - Company's Top Five Manufacturers Produced (Detail) - Cost of Goods, Total [Member] - Supplier Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Concentration Risk [Line Items] | ||||
Percentage of total production | 42.20% | 40.30% | 41.10% | 41.90% |
Manufacturer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 16.50% | 11.10% | 15.80% | 11.30% |
Manufacturer Two [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 8.30% | 10.10% | 8.30% | 10.70% |
Manufacturer Three [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 7.20% | 6.80% | 6.90% | 9.10% |
Manufacturer Four [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 5.50% | 6.70% | 5.10% | 5.40% |
Manufacturer Five [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 4.70% | 5.60% | 5.00% | 5.40% |
Segment and Geographic Report_3
Segment and Geographic Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment and Geographic Report_4
Segment and Geographic Reporting - Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net sales, Total | $ 1,353,998 | $ 1,176,395 | $ 3,889,319 | $ 3,561,270 | |
Gross profit | 653,064 | 563,866 | 1,853,408 | 1,707,926 | |
Identifiable assets | 4,566,198 | 4,566,198 | $ 3,228,255 | ||
Additions to property, plant and equipment | 48,933 | 36,491 | 174,663 | 97,309 | |
Domestic wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 299,634 | 285,406 | 951,635 | 991,658 | |
Gross profit | 111,205 | 110,572 | 354,299 | 372,166 | |
Identifiable assets | 1,402,723 | 1,402,723 | 1,428,463 | ||
Additions to property, plant and equipment | 7,976 | 10,654 | 66,001 | 28,320 | |
International wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 646,595 | 531,123 | 1,824,214 | 1,573,955 | |
Gross profit | 298,800 | 240,056 | 837,467 | 752,336 | |
Identifiable assets | 1,929,322 | 1,929,322 | 1,423,048 | ||
Additions to property, plant and equipment | 27,947 | 13,711 | 73,922 | 31,118 | |
Direct-to-consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 407,769 | 359,866 | 1,113,470 | 995,657 | |
Gross profit | 243,059 | 213,238 | 661,642 | 583,424 | |
Identifiable assets | 1,234,153 | 1,234,153 | $ 376,744 | ||
Additions to property, plant and equipment | $ 13,010 | $ 12,126 | $ 34,740 | $ 37,871 |
Segment and Geographic Report_5
Segment and Geographic Reporting - Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net sales, Total | $ 1,353,998 | $ 1,176,395 | $ 3,889,319 | $ 3,561,270 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 702,545 | 702,545 | $ 585,457 | ||
Domestic [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 558,173 | 523,281 | 1,655,413 | 1,648,642 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 434,687 | 434,687 | 385,584 | ||
Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 46,576 | 44,646 | 138,900 | 146,080 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 7,549 | 7,549 | 9,081 | ||
Other international [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, Total | 749,249 | $ 608,468 | 2,095,006 | $ 1,766,548 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | $ 260,309 | $ 260,309 | $ 190,792 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Management [Member] | ||||
Related Party Transaction [Line Items] | ||||
Contribution to Skechers Foundation for various charitable purposes | $ 250,000 | $ 251,000 | $ 750,000 | $ 751,000 |