Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | SKX | |
Security Exchange Name | NYSE | |
Entity Registrant Name | SKECHERS USA INC | |
Entity Central Index Key | 0001065837 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity File Number | 001-14429 | |
Entity Tax Identification Number | 95-4376145 | |
Entity Address, Address Line One | 228 Manhattan Beach Blvd. | |
Entity Address, City or Town | Manhattan Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90266 | |
City Area Code | 310 | |
Local Phone Number | 318-3100 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 135,584,212 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21,570,477 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,294,222 | $ 824,876 |
Short-term investments | 106,767 | 112,037 |
Trade accounts receivable, less allowances of $41,750 in 2020 and $24,106 in 2019 | 708,947 | 645,303 |
Other receivables | 74,727 | 53,932 |
Total receivables | 783,674 | 699,235 |
Inventories | 1,053,360 | 1,069,863 |
Prepaid expenses and other current assets | 147,607 | 113,580 |
Total current assets | 3,385,630 | 2,819,591 |
Property, plant and equipment, net | 870,162 | 738,925 |
Operating lease right-of-use assets | 1,106,047 | 1,073,660 |
Deferred tax assets | 60,934 | 49,088 |
Long-term investments | 98,698 | 94,589 |
Goodwill | 93,497 | 71,412 |
Other assets, net | 96,426 | 45,678 |
Total non-current assets | 2,325,764 | 2,073,352 |
TOTAL ASSETS | 5,711,394 | 4,892,943 |
Current liabilities: | ||
Current installments of long-term borrowings | 106,702 | 66,234 |
Short-term borrowings | 21,720 | 5,789 |
Accounts payable | 742,226 | 764,844 |
Operating lease liabilities | 196,760 | 191,129 |
Accrued expenses | 193,032 | 210,235 |
Total current liabilities | 1,260,440 | 1,238,231 |
Long-term borrowings, excluding current installments | 683,611 | 49,183 |
Long-term operating lease liabilities | 1,004,584 | 966,011 |
Deferred tax liabilities | 11,926 | 322 |
Other long-term liabilities | 109,722 | 103,089 |
Total non-current liabilities | 1,809,843 | 1,118,605 |
Total liabilities | 3,070,283 | 2,356,836 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 359,678 | 306,669 |
Accumulated other comprehensive loss | (40,549) | (29,993) |
Retained earnings | 2,083,118 | 2,037,836 |
Skechers U.S.A., Inc. equity | 2,402,402 | 2,314,665 |
Non-controlling interests | 238,709 | 221,442 |
Total stockholders' equity | 2,641,111 | 2,536,107 |
TOTAL LIABILITIES AND EQUITY | 5,711,394 | 4,892,943 |
Class A Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | 133 | 131 |
Class B Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | $ 22 | $ 22 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Trade accounts receivable, allowances | $ 41,750 | $ 24,106 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 500,000,000 | 500,000,000 |
Common Stock, shares issued | 132,912,000 | 131,071,000 |
Common Stock, shares outstanding | 132,912,000 | 131,071,000 |
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 | 21,570,000 | 22,408,000 |
Common Stock, shares outstanding | 21,570,000 | 22,408,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Sales | $ 1,300,886 | $ 1,353,998 | $ 3,272,703 | $ 3,889,319 |
Cost of sales | 675,765 | 700,934 | 1,731,349 | 2,035,911 |
Gross profit | 625,121 | 653,064 | 1,541,354 | 1,853,408 |
Royalty income | 3,216 | 6,285 | 11,061 | 17,827 |
Operating income | 628,337 | 659,349 | 1,552,415 | 1,871,235 |
Operating expenses: | ||||
Selling | 85,926 | 97,516 | 220,222 | 281,237 |
General and administrative | 450,285 | 414,417 | 1,256,228 | 1,165,637 |
Operating expenses | 536,211 | 511,933 | 1,476,450 | 1,446,874 |
Earnings from operations | 92,126 | 147,416 | 75,965 | 424,361 |
Other income / (expense): | ||||
Interest income | 1,884 | 3,290 | 5,739 | 9,500 |
Interest expense | (4,643) | (2,012) | (11,428) | (5,194) |
Other, net | 7,726 | (4,194) | 15,882 | (8,628) |
Total other income / (expense) | 4,967 | (2,916) | 10,193 | (4,322) |
Earnings before income tax expense | 97,093 | 144,500 | 86,158 | 420,039 |
Income tax expense | 14,983 | 22,766 | 18,104 | 75,288 |
Net earnings | 82,110 | 121,734 | 68,054 | 344,751 |
Net earnings attributable to non-controlling interests | 17,832 | 18,644 | 22,771 | 57,723 |
Net earnings attributable to Skechers U.S.A., Inc. | $ 64,278 | $ 103,090 | $ 45,283 | $ 287,028 |
Net earnings per share attributable to Skechers U.S.A., Inc.: | ||||
Basic | $ 0.42 | $ 0.67 | $ 0.29 | $ 1.87 |
Diluted | $ 0.41 | $ 0.67 | $ 0.29 | $ 1.86 |
Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc.: | ||||
Basic | 154,462 | 153,298 | 154,061 | 153,396 |
Diluted | 154,980 | 153,978 | 154,707 | 154,021 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 82,110 | $ 121,734 | $ 68,054 | $ 344,751 |
Other comprehensive income, net of tax: | ||||
Gain / (loss) on foreign currency translation adjustment | 112,814 | (98,416) | (11,215) | (92,059) |
Comprehensive income | 194,924 | 23,318 | 56,839 | 252,692 |
Comprehensive income / (loss) attributable to non- controlling interests | 46,956 | (7,700) | 22,112 | 31,530 |
Comprehensive income attributable to Skechers U.S.A., Inc. | $ 147,968 | $ 31,018 | $ 34,727 | $ 221,162 |
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 INTEREST [Member] |
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 non-controlling interest of consolidated entity | 30,341 | 30,341 | ||||||||
Distribution to non-controlling interest of consolidated entity | (37,608) | (37,608) | ||||||||
Acquisition of minority interest in India joint-venture | (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 | (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 non-controlling 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 | ||||||||
Beginning Balance at Dec. 31, 2019 | 2,536,107 | 131 | 22 | 306,669 | (29,993) | 2,037,835 | 2,314,664 | 221,442 | ||
Beginning Balance, Shares at Dec. 31, 2019 | 131,071,000 | 22,408,000 | ||||||||
Net earnings | 68,054 | 45,283 | 45,283 | 22,771 | ||||||
Foreign currency translation adjustment | (11,215) | (10,556) | (10,556) | (659) | ||||||
Distribution to non-controlling interest of consolidated entity | (51,842) | (51,842) | ||||||||
Non-controlling interests of acquired businesses | 49,045 | 49,045 | ||||||||
Net unrealized loss on derivative contract | (2,048) | (2,048) | ||||||||
Stock compensation expense | 54,983 | 54,983 | 54,983 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan | 3,687 | 1 | 3,686 | 3,687 | ||||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 138,000 | |||||||||
Shares issued under the Incentive Award Plan | 1 | (1) | ||||||||
Shares issued under the Incentive Award Plan, Shares | 1,036,000 | |||||||||
Shares redeemed for employee tax withholdings | (5,659) | $ (5,700) | (5,659) | (5,659) | ||||||
Shares redeemed for employee tax withholdings, Shares | (171,120) | |||||||||
Conversion of Class B common stock into Class A common stock, Shares | 838,000 | (838,000) | ||||||||
Ending Balance at Sep. 30, 2020 | 2,641,111 | 133 | 22 | 359,678 | (40,549) | 2,083,118 | 2,402,402 | 238,709 | ||
Ending Balance, Shares at Sep. 30, 2020 | 132,912,000 | 21,570,000 | ||||||||
Beginning Balance at Jun. 30, 2020 | 2,437,144 | 133 | 22 | 329,958 | (124,238) | 2,018,840 | 2,224,715 | 212,429 | ||
Beginning Balance, Shares at Jun. 30, 2020 | 132,882,000 | 21,570,000 | ||||||||
Net earnings | 82,110 | 64,278 | 64,278 | 17,832 | ||||||
Foreign currency translation adjustment | 112,814 | 83,689 | 83,689 | 29,125 | ||||||
Distribution to non-controlling interest of consolidated entity | (20,788) | (20,788) | ||||||||
Net unrealized loss on derivative contract | 111 | 111 | ||||||||
Stock compensation expense | 29,720 | 29,720 | 29,720 | |||||||
Shares issued under the Incentive Award Plan, Shares | 30,000 | |||||||||
Shares redeemed for employee tax withholdings | $ (5,700) | |||||||||
Shares redeemed for employee tax withholdings, Shares | (171,120) | |||||||||
Ending Balance at Sep. 30, 2020 | $ 2,641,111 | $ 133 | $ 22 | $ 359,678 | $ (40,549) | $ 2,083,118 | $ 2,402,402 | $ 238,709 | ||
Ending Balance, Shares at Sep. 30, 2020 | 132,912,000 | 21,570,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 68,054 | $ 344,751 |
Adjustment to reconcile net earnings to net cash from operating activities: | ||
Depreciation and amortization | 105,752 | 80,731 |
Provision for bad debts and returns | 11,673 | 20,367 |
Share based compensation | 54,983 | 30,234 |
Deferred income taxes | (17,861) | (11,224) |
Net settlement gain | (13,877) | |
Other items, net | (223) | |
Net foreign currency adjustments | (2,523) | 7,769 |
Changes in operating assets and liabilities: | ||
Receivables | (103,895) | (143,266) |
Inventories | 23,629 | 1,533 |
Other assets | (87,058) | (47,112) |
Accounts payable | (22,889) | 48,317 |
Other liabilities | 41,008 | 17,385 |
Net cash provided by operating activities | 56,996 | 349,262 |
Cash flows from investing activities: | ||
Capital expenditures | (213,216) | (174,663) |
Acquisitions, net of cash acquired | (100,658) | |
Proceeds from sale of property, plant and equipment | 5,547 | |
Purchases of investments | (131,307) | (151,594) |
Proceeds from sales and maturities of investments | 132,469 | 147,772 |
Net cash used in investing activities | (212,054) | (273,596) |
Cash flows from financing activities: | ||
Repayments on long-term borrowings | (2,500) | (3,456) |
Proceeds from long-term borrowings | 677,788 | 17,941 |
Proceeds from short-term borrowings | 15,931 | 9,048 |
Payments for taxes related to net share settlement of equity awards | (5,659) | (13,745) |
Cash used for purchase of non-controlling interest | (82,894) | |
Distributions to non-controlling interests | (51,842) | (37,608) |
Net cash provided by (used in) financing activities | 637,405 | (137,557) |
Effect of exchange rate changes on cash and cash equivalents | (13,001) | 13,659 |
Net change in cash and cash equivalents | 469,346 | (48,232) |
Cash and cash equivalents at beginning of the period | 824,876 | 872,237 |
Cash and cash equivalents at end of the period | 1,294,222 | 824,004 |
Cash paid during the period for: | ||
Interest | 11,240 | 5,097 |
Income taxes, net | 39,542 | 92,855 |
Non-cash transactions: | ||
Land and other assets contribution from non-controlling interest | 30,341 | |
Note payable contribution from non-controlling interest | 2,150 | |
Purchase price adjustment for Manhattan SKMX, S. de R.L. de C.V. | 49,045 | |
Class A Common Stock [Member] | ||
Cash flows from financing activities: | ||
Net proceeds from the issuances of Class A common stock through the employee stock purchase plan | $ 3,687 | 3,177 |
Repurchase of Class A common stock | $ (30,019) |
General
General | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019. Effects of the COVID-19 Pandemic on the Company’s Business In March 2020, the Company temporarily closed its stores around the world and temporarily furloughed a meaningful portion of its hourly employees. The Company began reopening its stores in April 2020, and as of September 30, 2020, all but a few of the Company owned retail stores have reopened. The Company continues to monitor and react to the COVID-19 pandemic, including conforming to local governments and global health organizations’ guidance, implementing global travel restrictions, and implementing “work from home” measures for many of its employees. The Company is actively monitoring and assessing the rapidly emerging government policies and economic stimulus responses to the COVID-19 pandemic around the world. Although the Company has reopened nearly all of its worldwide retail stores, the economic impact of the COVID-19 pandemic continues to negatively affect the Company’s results of operations. Many of the reopened retail stores continue to have temporarily reduced operating hours and less foot traffic, which has resulted in lower sales. Additionally, the reopening of stores and other offices required the Company to implement safety protocols, facilitate social distancing, enhance cleaning and sanitation activities, and provide masks and gloves to all employees. These safety processes and procedures have increased our costs to operate for the foreseeable future. Given the unprecedented impact the COVID-19 pandemic has had, the Company is unable to forecast consumer demand and store productivity. Whether and how quickly customers may resume shopping, and the effect of the pandemic on consumer behavior and spending patterns remains highly uncertain. The Company expects customer demand to be suppressed in the near term. In addition, it is possible that there will be an increase in the number of COVID-19 cases in the future, which could require the Company’s stores to close again and negatively impact the Company’s sales. As the COVID-19 pandemic is complex and rapidly evolving, the Company’s plans as described above may change. The Company expects that the ongoing impact of the COVID-19 pandemic and the resulting economic disruption will have a material adverse effect on its consolidated results of operations, financial position, and cash flows throughout the remainder of fiscal year 2020, and beyond fiscal year 2020. 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 . • 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. The Company has one Level 2 derivative which is an interest rate swap related to the refinancing of its domestic distribution center (see Note 5 – Short-Term and Long-Term Borrowings) and classified as other long-term liabilities. 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. 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. 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. The Company considered COVID-19 related impacts to its estimates, as appropriate, within its condensed consolidated financial statements and there may be changes to those estimates in future periods. The Company believes that the accounting estimates are appropriate after giving considerations to the increased uncertainties surrounding the severity and duration of the COVID-19 pandemic. Such estimates and assumptions are subject to inherent uncertainties, 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,” 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 its 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 direct-to-consumer 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 an allowance for doubtful accounts for retail and direct-to-consumer sales is not 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, 2020 and December 31, 2019, the Company’s sales returns liability totaled $96.3 million and $86.5 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. In the second quarter of 2019, the Company purchased a 60% interest in Manhattan SKMX, S. de R.L. de C.V. (“Skechers Mexico”), for a total consideration of $120.6 million, net of cash acquired (see Note 7 – Acquisition). Skechers Mexico is a joint venture that operates and generates sales in Mexico. As a result of this purchase, Skechers Mexico became a majority-owned subsidiary and the results are included in the condensed consolidated financial statements from the date of acquisition. The purchase price allocation was completed during the quarter ended March 31, 2020. Pro forma results of operations have not been presented because the effects of the acquisition were not material to the Company’s condensed consolidated financial statements. Accounting Standards Adopted in 2020 In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” 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,” Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, In March 2020, the FASB issued ASU No. 2020-04 “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” |
Cash, Cash Equivalents, Short-T
Cash, Cash Equivalents, Short-Term And Long-Term Investments | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 870,815 $ - $ - $ 870,815 $ 870,815 $ - $ - Level 1: Money market funds 423,407 - - 423,407 423,407 - - U.S. Treasury securities 18,242 - - 18,242 - 7,199 11,043 Total level 1 441,649 - - 441,649 423,407 7,199 11,043 Level 2: - - - Corporate notes and bonds 117,377 - - 117,377 - 89,760 27,617 Asset-backed securities 31,156 - - 31,156 - 5,525 25,631 U.S. Agency securities 4,283 - - 4,283 - 4,283 - Mutual funds 34,407 - - 34,407 - - 34,407 Total level 2 187,223 - - 187,223 - 99,568 87,655 TOTAL $ 1,499,687 $ - $ - $ 1,499,687 $ 1,294,222 $ 106,767 $ 98,698 December 31, 2019 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 662,355 $ - $ - $ 662,355 $ 662,355 $ - $ - Level 1: Money market funds 162,521 - - 162,521 162,521 - - U.S. Treasury securities 9,686 - - 9,686 - 1,679 8,007 Total level 1 172,207 - - 172,207 162,521 1,679 8,007 Level 2: - - - Corporate notes and bonds 132,431 - - 132,431 - 104,130 28,301 Asset-backed securities 23,614 - - 23,614 - 263 23,351 U.S. Agency securities 12,352 - - 12,352 - 5,965 6,387 Mutual funds 28,543 - - 28,543 - - 28,543 Total level 2 196,940 - - 196,940 - 110,358 86,582 TOTAL $ 1,031,502 $ - $ - $ 1,031,502 $ 824,876 $ 112,037 $ 94,589 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 less than two years. The Company considers declines in market value of marketable securities investment portfolio to be temporary in nature. The Company minimizes the potential risk of principal loss by investing in highly-rated securities and limiting the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term, market sector and macroeconomic trends, including current conditions and forecasts to the extent they are reasonable and supportable. As of September 30, 2020, the current expected credit losses were not material to the Company’s condensed consolidated financial statements. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | (3) GOODWILL AND OTHER INTANGIBLE ASSETS The Company evaluated the impairment of goodwill and other intangible assets. Based on the evaluation performed, no impairment loss was recorded for the goodwill and other intangible assets during the quarter ended September 30, 2020. As of September 30, 2020 and December 31, 2019, the net carrying amount of goodwill and other intangible assets were $135.0 million and $72.3 million. September 30, 2020 December 31, 2019 Goodwill Skechers Mexico $ 91,563 $ 69,836 Others 1,934 1,576 Total goodwill 93,497 71,412 Other intangible assets Reacquired rights 46,100 641 Customer relationships and other acquisition related 5,478 — Others 13,441 13,290 Total gross carrying amount 65,019 13,931 Less: Accumulated amortization (23,490 ) (13,066 ) Total other intangible assets, net 41,529 865 Total $ 135,026 $ 72,277 The expected future amortization expense for other intangible assets were as follows (in thousands ): September 30, 2020 2020 remaining months $ 1,720 2021 6,871 2022 6,871 2023 6,871 2024 6,871 Thereafter 12,325 Total $ 41,529 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | (4) 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 right-of-use (“ROU”) assets and liabilities on the Company’s condensed consolidated balance sheet as of September 30, 2020. 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. Operating lease cost and other information (in thousands): Three Months Ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed lease cost $ 68,059 $ 63,724 $ 194,714 $ 180,324 Variable lease cost 1,141 1,219 2,152 10,157 Operating cash flows used for leases 61,630 67,744 188,540 192,066 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 45,327 74,500 177,379 114,542 Weighted-average remaining lease term 4.41 years 4.70 year 4.41 years 4.70 year Weighted-average discount rate 4.02 % 4.24 % 4.02 % 4.24 % The maturities of lease liabilities were as follows (in thousands): September 30, 2020 2020 remaining months $ 65,136 2021 240,845 2022 208,271 2023 184,152 2024 170,395 Thereafter 515,258 Total lease payments 1,384,057 Less: Imputed interest (182,713 ) $ 1,201,344 As of September 30, 2020, 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 $15.7 million. These operating leases will commence in 2020 and 2021 with lease terms ranging from 2 year to 10 years. |
Short-term and Long-term Borrow
Short-term and Long-term Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Borrowings | (5) SHORT-TERM AND LONG-TERM BORROWINGS The Company had $8.5 million Long-term borrowings at September 30, 2020 and December 31, 2019 are as follows (in thousands): 2020 2019 Unsecured revolving credit facility, variable-rate interest at 1.30% per annum, due November 2024 $ 487,500 $ — Note payable to banks, interest only, variable-rate interest at 2.55% per annum, secured by property, balloon payment of $129,505 due March 2025 129,505 63,692 Loan payable to a bank, variable-rate interest at 2.26% per annum, due April 2025 9,102 — Note payable to Luen Thai Enterprise, Ltd. — 393 Loan payable to a bank, variable-rate interest at 4.15% per annum, due September 2023 65,440 48,791 Loans payable to banks, variable-rate interests at a range of 1.84% to 3.87% per annum, due June 2024 78,563 2,541 Loan payable to a bank, variable-rate interest at 4.28% per annum, due May 2025 19,038 — Loan payable to a bank, variable-rate interest at 1.86% per annum, due June 2025 1,165 — Subtotal 790,313 115,417 Less: Current installments (106,702 ) (66,234 ) Total long-term borrowings $ 683,611 $ 49,183 Unsecured Revolving Credit Facility On November 21, 2019, the Company entered into a $500.0 million unsecured revolving credit facility, which matures on November 21, 2024 (the “2019 Credit Agreement”), with Bank of America, N.A., as administrative agent and joint lead arranger, HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A., as joint lead arrangers, and other lenders. The 2019 Credit Agreement replaced the Company’s then existing $250.0 million loan and security agreement dated June 30, 2015 with Bank of America, N.A., MUFG Union Bank, N.A. and HSBC Bank USA, National Association that was set to expire on June 30, 2020. The 2019 Credit Agreement may be increased by up to $250.0 million under certain conditions and provides for the issuance of letters of credit up to a maximum of $100.0 million and swingline loans up to a maximum of $25.0 million. The Company may use the proceeds from the 2019 Credit Agreement for working capital and other lawful corporate purposes. At the Company’s option, any loan (other than swingline loans) will bear interest at a rate equal to (a) LIBOR plus an applicable margin between 1.125% and 1.625% based upon the Company’s Total Adjusted Net Leverage Ratio (as defined in the 2019 Credit Agreement) or (b) a base rate (defined as the highest of (i) the Federal Funds Rate plus 0.50%, (ii) the Bank of America prime rate and (iii) LIBOR plus 1.00%) plus an applicable margin between 0.125% and 0.625% based upon the Company’s Total Adjusted Net Leverage Ratio. Any swingline loan will bear interest at the base rate. The Company will pay a variable commitment fee of between 0.125% and 0.25% of the actual daily unused amount of each lender’s commitment, and will also pay a variable letter of credit fee of between 1.125% and 1.625% on the maximum amount available to be drawn under each issued and outstanding letter of credit, both of which are based upon the Company’s Total Adjusted Net Leverage Ratio. The 2019 Credit Agreement contains customary affirmative and negative covenants for 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 2019 Credit Agreement also requires that the total adjusted net leverage ratio not exceed 3.75, except in the event of an acquisition in which case the ratio may be increased at the Company’s election to 4.25 for the quarter in which such acquisition occurs and for the next three quarters thereafter. As of September 30, 2020 The Company paid origination, arrangement and legal fees of $1.6 million on the 2019 Credit Agreement, which are being amortized to interest expense over the five-year life of the facility. On March 19, 2020, as a precautionary measure to maximize liquidity and to increase available cash on hand, the Company borrowed $490.0 million on its . The proceeds are available to be used for working capital, general corporate or other purposes. As of September 30, 2020, there was $487.5 million outstanding under the 2019 Credit Agreement, which is classified as long-term borrowings in the Company’s condensed consolidated balance sheets. As of December 31, 2019, there was no amount outstanding under the 2019 Credit Agreement. Construction Loans for U.S. Distribution Center On April 30, 2010, the JV, through HF Logistics-SKX T1, LLC, a Delaware limited liability company and wholly-owned subsidiary of the JV (“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 our U.S. distribution center (the “2010 Loan”). On November 16, 2012, HF-T1 executed an amendment to the Construction Loan Agreement (the “Amendment”), which added OneWest Bank, FSB as a lender, increased the borrowings under the 2010 Loan to $80.0 million and extended the maturity date of the 2010 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 amended and restated in its entirety the Construction Loan Agreement and the Amendment. Under the Amended Loan Agreement, the parties agreed that the lenders would loan $70.0 million to HF-T1 (the “2015 Loan”). Pursuant to the Amended Loan Agreement, the interest rate per annum on the 2015 Loan was LIBOR Daily Floating Rate (as defined therein) plus a margin of 2%. The maturity date of the 2015 Loan was August 12, 2020, subject to HF-T1 having an option to a 24-month extension upon payment of a fee and satisfaction of certain customary terms. On August 11, 2015, HF-T1 and Bank of America, N.A. also 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 had 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. On March 18, 2020, HF-T1 entered into an amendment to the Amended Loan Agreement with Bank of America, N.A., Raymond James Bank, N.A. and CIT Bank, N.A. (the “2020 Amendment”) that increased the borrowings under the 2015 Loan to $129.5 million and extended the maturity date of the 2015 Loan to March 18, 2025 (the “2020 Loan”). As of the date of the 2020 Amendment, the outstanding principal balance of the 2015 Loan was $63.3 million. The additional indebtedness of $66.2 million under the 2020 Amendment is being used by the JV through HF-T1 to (i) refinance all amounts owed on the 2015 Loan, (ii) pay $1.0 million in accrued interest, loan fees and other closing costs associated with the 2020 Amendment and (iii) make a distribution of $64.4 million to HF. Pursuant to the 2020 Amendment, the interest rate per annum on the 2020 Loan is the LIBOR Daily Floating Rate (as defined therein) plus a margin of 1.75%. On March 18, 2020, HF-T1 and Bank of America, N.A. also executed an amendment to the Swap Agreement (the “Swap Agreement Amendment”) to extend the maturity date of the Interest Rate Swap to March 18, 2025. The Swap Agreement Amendment fixes the effective interest rate on the 2020 Loan at 2.55% per annum. The 2020 Amendment and the Swap Agreement Amendment are subject to customary covenants and events of default. Bank of America, N.A. also acts as a lender and syndication agent under the Company’s credit agreement dated November 21, 2019. On April 3, 2020, the JV, through HF Logistics-SKX T2, LLC, a Delaware limited liability company and wholly-owned subsidiary of the JV (“HF-T2), entered into a construction loan agreement with Bank of America, N.A. as administrative agent and lender (collectively, the “2020 Construction Loan Agreement”), pursuant to which the JV obtained a loan of up to $73.0 million used for construction to expand our U.S. distribution center (the “2020 Construction Loan”). Under the 2020 Construction Loan Agreement, the interest rate per annum on the 2020 Construction Loan is LIBOR Daily Floating Rate (as defined therein) plus a margin of 190 basis points, reducing to 175 basis points upon substantial completion of the construction and certain other conditions being satisfied. The maturity date of the 2020 Construction Loan is April 3, 2025. The obligations of the JV under the 2020 Construction Loan Agreement are guaranteed by TGD Holdings I, LLC, which is an affiliate of HF. Construction Loan for Distribution Center in China On September 29, 2018, through the Taicang 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 floats and is calculated at a reference rate provided by the People’s Bank of China. The interest rate at September 30, 2020 was 4.15% and 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. As of September 30, 2020, there was $65.4 million outstanding under this credit facility, which is classified as long-term borrowings in the Company’s condensed consolidated balance sheets. Total Debt Obligations As of September 30, 2020, outstanding short-term and long-term borrowing were $812.0 million, of which $487.5 million related to its unsecured revolving credit facility and $129.5 million for a loan for its domestic distribution center, $65.4 million for construction for its distribution center in China, $78.6 million related to the operations in China, and $19.0 million related to a corporate office building in Shanghai, China and the remaining balance relates to the Company’s international operations. The Company’s long-term debt obligations contain both financial and non-financial covenants, including cross-default provisions. The Company is in compliance with all debt covenants related to its short-term and long-term borrowings as of September 30, 2020. |
Non-Controlling Interests
Non-Controlling Interests | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | (6) 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 7 – 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. There have been no changes during 2020 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, 2020 December 31, 2019 Current assets $ 25,924 $ 5,297 Non-current assets 116,700 104,527 Total assets $ 142,624 $ 109,824 Current liabilities $ 14,097 $ 64,600 Non-current liabilities 133,042 1,009 Total liabilities $ 147,139 $ 65,609 Product distribution joint ventures (2) September 30, 2020 December 31, 2019 Current assets $ 886,715 $ 747,668 Non-current assets 510,102 325,283 Total assets $ 1,396,817 $ 1,072,951 Current liabilities $ 583,166 $ 430,282 Non-current liabilities 185,434 135,903 Total liabilities $ 768,600 $ 566,185 (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, 2020 2019 2020 2019 Net earnings attributable to non-controlling interests $ 17,832 $ 18,644 $ 22,771 $ 57,723 Distributions to: HF Logistics-SKX, LLC 20,788 870 47,660 2,718 Skechers China Limited — 12,600 4,182 32,245 Skechers Southeast Asia Limited — 2,027 — 2,027 Skechers Hong Kong Limited — 618 — 618 Contributions from: HF Logistics-SKX, LLC — — — 7,565 Manhattan SKMX, S. de R.L. de C.V. — — 49,045 22,776 |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition | (7) 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 completed the purchase price allocation during the quarter ended March 31, 2020. The change to the provisional amounts resulted in a $22.1 million increase to goodwill, a $49.1 million increase to intangible assets and a $17.1 million increase to . Additionally, the change to the provisional amounts resulted in a $13.9 million gain on reacquired rights and an increase in amortization expense and accumulated amortization of $7.0 million, of which $5.2 million relates to the prior year and an $8.0 million increase in inventory, of which $6.0 million relates to the prior year. The prior year amounts were not material to amortization expense or cost of sales within the consolidated statements of earnings for the ended December 31, 2019. Pro forma results of operations have not been presented because the effect of the acquisition was not material to the Company’s condensed consolidated financial statements. The allocation of the total consideration has been recorded as follows (in thousands): Cash $ 1,061 Accounts receivable 31,763 Inventory (1) 47,890 VAT receivable 12,658 Deferred tax assets 2,180 Property, plant, and equipment 12,531 Reacquired rights intangible assets (2) 46,100 Customer relationships intangible assets (2) 3,000 Goodwill 91,563 Total assets acquired 248,746 Accounts payable 25,454 VAT payable 4,721 Deferred tax liability 17,129 Total liabilities assumed 47,304 Non-controlling interest 79,798 Total purchase price $ 121,644 (1) Included a step-up to fair market adjustment of $8.0 million, which was amortized over a period of less than 12 months. (2) Reacquired rights will be amortized over 1 to 7 years, and customer relationships will be amortized over 10 years. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
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, par value $0.001 per share (“Class A common stock”) and Class B common stock, par value $0.001 per share (“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 2020 2019 2020 2019 Net earnings attributable to Skechers U.S.A., Inc. $ 64,278 $ 103,090 $ 45,283 $ 287,028 Weighted average common shares outstanding 154,462 153,298 154,061 153,396 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 0.42 $ 0.67 $ 0.29 $ 1.87 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 2020 2019 2020 2019 Net earnings attributable to Skechers U.S.A., Inc. $ 64,278 $ 103,090 $ 45,283 $ 287,028 Weighted average common shares outstanding 154,462 153,298 154,061 153,396 Dilutive effect of unvested shares 518 680 646 625 Weighted average common shares outstanding 154,980 153,978 154,707 154,021 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 0.41 $ 0.67 $ 0.29 $ 1.86 There were 88,577 and 108,328 shares excluded from the computation of diluted earnings per share for the because their effect would have been anti-dilutive. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation | (9) STOCK COMPENSATION 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 15,000,000 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, employee stock purchase plan, 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 recognizes compensation expense based on the grant date fair value. Share‑based compensation expense was $29.7 million and $10.7 million for the three months ended September 30, 2020 and 2019. Share-based compensation expense was $55.0 million and $30.2 million for the nine months ended September 30, 2020 and 2019. Included in the compensation expense recognized in 2020 is an $18.2 million non-cash charge related to the cancellation of 750,000 unvested shares as a result of a legal settlement. During the three and nine months ended September 30, 2020, the Company redeemed 171,120 shares of Class A common stock for $5.7 million to satisfy employee tax withholding requirements. During the three and nine months ended September 30, 2019, the Company repurchased 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, respectively. A summary of the status and changes of the Company’s unvested shares related to the 2007 Plan and the 2017 Plan as of and for the nine months ended September 30, 2020 is presented below: Shares Weighted Average Grant-Date Fair Value Unvested at December 31, 2019 3,426,823 $ 32.54 Granted 1,069,300 $ 36.52 Vested (1,035,917 ) $ 32.43 Cancelled (784,000 ) $ 32.25 Unvested at September 30, 2020 2,676,206 $ 34.26 As of September 30, 2020, there was $66.0 million of unrecognized compensation cost related to unvested common shares. The cost is expected to be amortized over a weighted average period of 1.8 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and 2019 were as follows (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Income tax expense $ 14,983 $ 22,766 $ 18,104 $ 75,288 Effective tax rate 15.4 % 15.8 % 21.0 % 17.9 % The tax provisions for the three and nine months ended September 30, 2020 and 2019 were computed using the estimated effective tax rates applicable to each of the domestic and international taxable jurisdictions for the full year. 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 (losses) before income taxes. In the foreign jurisdictions in which the Company has operations, the applicable statutory rates range from 0.0% to 34.0%, which is on average significantly lower than the U.S. federal and state combined statutory rate of approximately 25%. For the three months As of September 30, 2020, the Company had approximately $1,294.2 million in cash and cash equivalents, of which $596.9 million, or 46%, was held outside the U.S. Of the $596.9 million held by the Company’s non-U.S. subsidiaries, approximately $299.6 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, 2020. 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 Company’s U.S. cash requirements and the need to provide payment of the Company’s provisional Transition Tax liability, the Company may begin repatriating certain funds held outside the U.S. for which all applicable U.S. federal and non-U.S. tax has been fully provided as of September 30, 2020. 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 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. On March 27, 2020, the President signed into law the CARES Act. The CARES Act, among other things, includes certain beneficial tax provisions. While we are able to take advantage of some of these provisions, none had a material impact on our business, financial condition, results of operations, or liquidity for the three and nine months ended September 30, 2020. We will continue to monitor the impact that the CARES Act may have on our business, financial condition, results of operations, or liquidity. 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 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, 2020 and 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, but the request was rejected on November 11, 2019. Altera subsequently appealed from the Ninth Circuit to the Supreme Court, but the request for hearing was denied on June 22, 2020. The tax impact of the decision of the Ninth Circuit was previously provided for and the Company currently includes share-based compensation in its cost sharing arrangement; therefore, the Supreme Court’s denial of hearing has no further tax impact. |
Business and Credit Concentrati
Business and Credit Concentrations | 9 Months Ended |
Sep. 30, 2020 | |
Risks And Uncertainties [Abstract] | |
Business and Credit Concentrations | (11) 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 $264.3 million and $228.5 million before allowances for bad debts, sales returns and chargebacks at September 30, 2020 and December 31, 2019, respectively. Foreign accounts receivable, which in some cases are collateralized by letters of credit, were $486.4 million and $440.9 million before allowance for bad debts, sales returns and chargebacks at September 30, 2020 and December 31, 2019, respectively. The Company’s credit losses attributable to write-offs for the three months ended September 30, 2020 and 2019 were $0.9 million and $1.6 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 $3,036.4 million and $2,643.8 million at September 30, 2020 and December 31, 2019, respectively. The Company’s net sales to its five largest customers accounted for approximately 8.8% and 9.4% of total sales for the three months ended September 30, 2020 and 2019, respectively. The Company’s sales to its five largest customers accounted for approximately 8.9% and 9.7% of total sales for the nine months ended September 30, 2020 and 2019, 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, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Manufacturer #1 16.4 % 16.5 % 20.6 % 15.8 % Manufacturer #2 6.7 % 8.3 % 6.9 % 8.3 % Manufacturer #3 6.0 % 7.2 % 5.8 % 6.9 % Manufacturer #4 5.7 % 5.5 % 4.5 % 5.1 % Manufacturer #5 4.8 % 4.7 % 4.4 % 5.0 % 39.6 % 42.2 % 42.2 % 41.1 % The majority of the Company’s products are produced in China and Vietnam. The Company’s operations are subject to the customary risks of doing business abroad, including, but not limited to, currency fluctuations and revaluations, custom duties, tariffs and related fees, various import controls and other monetary barriers, restrictions on the transfer of funds, labor unrest and strikes, local disruptions 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. |
Segment and Geographic Reportin
Segment and Geographic Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting | (12) SEGMENT AND GEOGRAPHIC REPORTING The Company has three reportable segments – domestic wholesale sales, international wholesale sales, and direct-to-consumer sales. Management evaluates segment performance based primarily on 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. 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, 2020 2019 2020 2019 Sales: Domestic wholesale $ 318,449 $ 299,634 $ 827,148 $ 951,635 International wholesale 643,393 646,596 1,603,774 1,824,214 Direct-to-consumer 339,044 407,768 841,781 1,113,470 Total $ 1,300,886 $ 1,353,998 $ 3,272,703 $ 3,889,319 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Gross profit: Domestic wholesale $ 123,122 $ 111,205 $ 318,824 $ 354,299 International wholesale 295,565 298,799 716,489 837,467 Direct-to-consumer 206,434 243,060 506,041 661,642 Total $ 625,121 $ 653,064 $ 1,541,354 $ 1,853,408 September 30, 2020 December 31, 2019 Identifiable assets: Domestic wholesale $ 1,934,991 $ 1,472,323 International wholesale 2,397,446 2,100,042 Direct-to-consumer 1,378,957 1,320,578 Total $ 5,711,394 $ 4,892,943 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Additions to property, plant and equipment: Domestic wholesale $ 36,036 $ 7,976 $ 71,245 $ 66,001 International wholesale 13,647 27,947 96,091 73,922 Direct-to-consumer 13,881 13,010 45,880 34,740 Total $ 63,564 $ 48,933 $ 213,216 $ 174,663 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, 2020 2019 2020 2019 Sales (1) United States $ 537,528 $ 558,173 $ 1,386,522 $ 1,655,413 Canada 36,995 46,576 97,203 138,900 Other international (2) 726,363 749,249 1,788,978 2,095,006 Total $ 1,300,886 $ 1,353,998 $ 3,272,703 $ 3,889,319 September 30, 2020 December 31, 2019 Property, plant and equipment, net: United States $ 491,600 $ 439,132 Canada 5,959 7,286 Other international (2) 372,603 292,507 Total $ 870,162 $ 738,925 (1) External sales are attributable to geographic regions based on the location of each of the Company’s subsidiaries. A subsidiary may earn revenue from external sales and external royalties, or from inter-subsidiary 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 consolidated financial statements and are not included as part of the external sales reported in different geographic areas. (2) Other international consists of Asia, Mexico, 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, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (13) 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. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | (14) 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, 2020, 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, 2020 | |
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, 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 . • 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. The Company has one Level 2 derivative which is an interest rate swap related to the refinancing of its domestic distribution center (see Note 5 – Short-Term and Long-Term Borrowings) and classified as other long-term liabilities. 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. 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. |
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. The Company considered COVID-19 related impacts to its estimates, as appropriate, within its condensed consolidated financial statements and there may be changes to those estimates in future periods. The Company believes that the accounting estimates are appropriate after giving considerations to the increased uncertainties surrounding the severity and duration of the COVID-19 pandemic. Such estimates and assumptions are subject to inherent uncertainties, 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,” 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 its 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 direct-to-consumer 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 an allowance for doubtful accounts for retail and direct-to-consumer sales is not 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. In the second quarter of 2019, the Company purchased a 60% interest in Manhattan SKMX, S. de R.L. de C.V. (“Skechers Mexico”), for a total consideration of $120.6 million, net of cash acquired (see Note 7 – Acquisition). Skechers Mexico is a joint venture that operates and generates sales in Mexico. As a result of this purchase, Skechers Mexico became a majority-owned subsidiary and the results are included in the condensed consolidated financial statements from the date of acquisition. The purchase price allocation was completed during the quarter ended March 31, 2020. Pro forma results of operations have not been presented because the effects of the acquisition were not material to the Company’s condensed consolidated financial statements. |
Accounting Standards Adopted in 2020 | Accounting Standards Adopted in 2020 In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” 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,” Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, In March 2020, the FASB issued ASU No. 2020-04 “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” |
Cash, Cash Equivalents, Short_2
Cash, Cash Equivalents, Short-Term And Long-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and December 31, 2019 (in thousands): September 30, 2020 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 870,815 $ - $ - $ 870,815 $ 870,815 $ - $ - Level 1: Money market funds 423,407 - - 423,407 423,407 - - U.S. Treasury securities 18,242 - - 18,242 - 7,199 11,043 Total level 1 441,649 - - 441,649 423,407 7,199 11,043 Level 2: - - - Corporate notes and bonds 117,377 - - 117,377 - 89,760 27,617 Asset-backed securities 31,156 - - 31,156 - 5,525 25,631 U.S. Agency securities 4,283 - - 4,283 - 4,283 - Mutual funds 34,407 - - 34,407 - - 34,407 Total level 2 187,223 - - 187,223 - 99,568 87,655 TOTAL $ 1,499,687 $ - $ - $ 1,499,687 $ 1,294,222 $ 106,767 $ 98,698 December 31, 2019 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 662,355 $ - $ - $ 662,355 $ 662,355 $ - $ - Level 1: Money market funds 162,521 - - 162,521 162,521 - - U.S. Treasury securities 9,686 - - 9,686 - 1,679 8,007 Total level 1 172,207 - - 172,207 162,521 1,679 8,007 Level 2: - - - Corporate notes and bonds 132,431 - - 132,431 - 104,130 28,301 Asset-backed securities 23,614 - - 23,614 - 263 23,351 U.S. Agency securities 12,352 - - 12,352 - 5,965 6,387 Mutual funds 28,543 - - 28,543 - - 28,543 Total level 2 196,940 - - 196,940 - 110,358 86,582 TOTAL $ 1,031,502 $ - $ - $ 1,031,502 $ 824,876 $ 112,037 $ 94,589 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | September 30, 2020 December 31, 2019 Goodwill Skechers Mexico $ 91,563 $ 69,836 Others 1,934 1,576 Total goodwill 93,497 71,412 Other intangible assets Reacquired rights 46,100 641 Customer relationships and other acquisition related 5,478 — Others 13,441 13,290 Total gross carrying amount 65,019 13,931 Less: Accumulated amortization (23,490 ) (13,066 ) Total other intangible assets, net 41,529 865 Total $ 135,026 $ 72,277 |
Schedule of Future Amortization of Intangible Assets | The expected future amortization expense for other intangible assets were as follows (in thousands ): September 30, 2020 2020 remaining months $ 1,720 2021 6,871 2022 6,871 2023 6,871 2024 6,871 Thereafter 12,325 Total $ 41,529 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Operating Lease Cost and Other Information | Operating lease cost and other information (in thousands): Three Months Ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed lease cost $ 68,059 $ 63,724 $ 194,714 $ 180,324 Variable lease cost 1,141 1,219 2,152 10,157 Operating cash flows used for leases 61,630 67,744 188,540 192,066 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 45,327 74,500 177,379 114,542 Weighted-average remaining lease term 4.41 years 4.70 year 4.41 years 4.70 year Weighted-average discount rate 4.02 % 4.24 % 4.02 % 4.24 % |
Summary of Maturities of Lease Liabilities | The maturities of lease liabilities were as follows (in thousands): September 30, 2020 2020 remaining months $ 65,136 2021 240,845 2022 208,271 2023 184,152 2024 170,395 Thereafter 515,258 Total lease payments 1,384,057 Less: Imputed interest (182,713 ) $ 1,201,344 |
Short-term and Long-term Borr_2
Short-term and Long-term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | Long-term borrowings at September 30, 2020 and December 31, 2019 are as follows (in thousands): 2020 2019 Unsecured revolving credit facility, variable-rate interest at 1.30% per annum, due November 2024 $ 487,500 $ — Note payable to banks, interest only, variable-rate interest at 2.55% per annum, secured by property, balloon payment of $129,505 due March 2025 129,505 63,692 Loan payable to a bank, variable-rate interest at 2.26% per annum, due April 2025 9,102 — Note payable to Luen Thai Enterprise, Ltd. — 393 Loan payable to a bank, variable-rate interest at 4.15% per annum, due September 2023 65,440 48,791 Loans payable to banks, variable-rate interests at a range of 1.84% to 3.87% per annum, due June 2024 78,563 2,541 Loan payable to a bank, variable-rate interest at 4.28% per annum, due May 2025 19,038 — Loan payable to a bank, variable-rate interest at 1.86% per annum, due June 2025 1,165 — Subtotal 790,313 115,417 Less: Current installments (106,702 ) (66,234 ) Total long-term borrowings $ 683,611 $ 49,183 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 December 31, 2019 Current assets $ 25,924 $ 5,297 Non-current assets 116,700 104,527 Total assets $ 142,624 $ 109,824 Current liabilities $ 14,097 $ 64,600 Non-current liabilities 133,042 1,009 Total liabilities $ 147,139 $ 65,609 Product distribution joint ventures (2) September 30, 2020 December 31, 2019 Current assets $ 886,715 $ 747,668 Non-current assets 510,102 325,283 Total assets $ 1,396,817 $ 1,072,951 Current liabilities $ 583,166 $ 430,282 Non-current liabilities 185,434 135,903 Total liabilities $ 768,600 $ 566,185 (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, 2020 2019 2020 2019 Net earnings attributable to non-controlling interests $ 17,832 $ 18,644 $ 22,771 $ 57,723 Distributions to: HF Logistics-SKX, LLC 20,788 870 47,660 2,718 Skechers China Limited — 12,600 4,182 32,245 Skechers Southeast Asia Limited — 2,027 — 2,027 Skechers Hong Kong Limited — 618 — 618 Contributions from: HF Logistics-SKX, LLC — — — 7,565 Manhattan SKMX, S. de R.L. de C.V. — — 49,045 22,776 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Allocation of Total Consideration | The allocation of the total consideration has been recorded as follows (in thousands): Cash $ 1,061 Accounts receivable 31,763 Inventory (1) 47,890 VAT receivable 12,658 Deferred tax assets 2,180 Property, plant, and equipment 12,531 Reacquired rights intangible assets (2) 46,100 Customer relationships intangible assets (2) 3,000 Goodwill 91,563 Total assets acquired 248,746 Accounts payable 25,454 VAT payable 4,721 Deferred tax liability 17,129 Total liabilities assumed 47,304 Non-controlling interest 79,798 Total purchase price $ 121,644 (1) Included a step-up to fair market adjustment of $8.0 million, which was amortized over a period of less than 12 months. (2) Reacquired rights will be amortized over 1 to 7 years, and customer relationships will be amortized over 10 years. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 2020 2019 2020 2019 Net earnings attributable to Skechers U.S.A., Inc. $ 64,278 $ 103,090 $ 45,283 $ 287,028 Weighted average common shares outstanding 154,462 153,298 154,061 153,396 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 0.42 $ 0.67 $ 0.29 $ 1.87 |
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 2020 2019 2020 2019 Net earnings attributable to Skechers U.S.A., Inc. $ 64,278 $ 103,090 $ 45,283 $ 287,028 Weighted average common shares outstanding 154,462 153,298 154,061 153,396 Dilutive effect of unvested shares 518 680 646 625 Weighted average common shares outstanding 154,980 153,978 154,707 154,021 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 0.41 $ 0.67 $ 0.29 $ 1.86 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Unvested Shares Related to the 2007 and 2017 Plan | A summary of the status and changes of the Company’s unvested shares related to the 2007 Plan and the 2017 Plan as of and for the nine months ended September 30, 2020 is presented below: Shares Weighted Average Grant-Date Fair Value Unvested at December 31, 2019 3,426,823 $ 32.54 Granted 1,069,300 $ 36.52 Vested (1,035,917 ) $ 32.43 Cancelled (784,000 ) $ 32.25 Unvested at September 30, 2020 2,676,206 $ 34.26 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and 2019 were as follows (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Income tax expense $ 14,983 $ 22,766 $ 18,104 $ 75,288 Effective tax rate 15.4 % 15.8 % 21.0 % 17.9 % |
Business and Credit Concentra_2
Business and Credit Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Manufacturer #1 16.4 % 16.5 % 20.6 % 15.8 % Manufacturer #2 6.7 % 8.3 % 6.9 % 8.3 % Manufacturer #3 6.0 % 7.2 % 5.8 % 6.9 % Manufacturer #4 5.7 % 5.5 % 4.5 % 5.1 % Manufacturer #5 4.8 % 4.7 % 4.4 % 5.0 % 39.6 % 42.2 % 42.2 % 41.1 % |
Segment and Geographic Report_2
Segment and Geographic Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | 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, 2020 2019 2020 2019 Sales: Domestic wholesale $ 318,449 $ 299,634 $ 827,148 $ 951,635 International wholesale 643,393 646,596 1,603,774 1,824,214 Direct-to-consumer 339,044 407,768 841,781 1,113,470 Total $ 1,300,886 $ 1,353,998 $ 3,272,703 $ 3,889,319 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Gross profit: Domestic wholesale $ 123,122 $ 111,205 $ 318,824 $ 354,299 International wholesale 295,565 298,799 716,489 837,467 Direct-to-consumer 206,434 243,060 506,041 661,642 Total $ 625,121 $ 653,064 $ 1,541,354 $ 1,853,408 September 30, 2020 December 31, 2019 Identifiable assets: Domestic wholesale $ 1,934,991 $ 1,472,323 International wholesale 2,397,446 2,100,042 Direct-to-consumer 1,378,957 1,320,578 Total $ 5,711,394 $ 4,892,943 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Additions to property, plant and equipment: Domestic wholesale $ 36,036 $ 7,976 $ 71,245 $ 66,001 International wholesale 13,647 27,947 96,091 73,922 Direct-to-consumer 13,881 13,010 45,880 34,740 Total $ 63,564 $ 48,933 $ 213,216 $ 174,663 |
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, 2020 2019 2020 2019 Sales (1) United States $ 537,528 $ 558,173 $ 1,386,522 $ 1,655,413 Canada 36,995 46,576 97,203 138,900 Other international (2) 726,363 749,249 1,788,978 2,095,006 Total $ 1,300,886 $ 1,353,998 $ 3,272,703 $ 3,889,319 September 30, 2020 December 31, 2019 Property, plant and equipment, net: United States $ 491,600 $ 439,132 Canada 5,959 7,286 Other international (2) 372,603 292,507 Total $ 870,162 $ 738,925 (1) External sales are attributable to geographic regions based on the location of each of the Company’s subsidiaries. A subsidiary may earn revenue from external sales and external royalties, or from inter-subsidiary 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 consolidated financial statements and are not included as part of the external sales reported in different geographic areas. (2) Other international consists of Asia, Mexico, Central America, Europe, the Middle East, and South America. |
General - Additional Informatio
General - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Apr. 30, 2019 |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Consideration paid, net of cash acquired | $ 100,658 | |||||
ASU 2016-13 [Member] | ||||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
ASU 2018-13 [Member] | ||||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
ASU 2018-15 [Member] | ||||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
Skechers Mexico [Member] | ||||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Ownership interest in joint venture | 60.00% | 60.00% | 60.00% | |||
Consideration paid, net of cash acquired | $ 120,600 | $ 120,600 | ||||
Sales Returns and Allowances [Member] | ||||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Sales returns liability | $ 96,300 | $ 86,500 |
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, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | $ 1,294,222 | $ 824,876 | $ 824,004 | $ 872,237 |
Short-Term Investments | 106,767 | 112,037 | ||
Long-Term Investments | 98,698 | 94,589 | ||
Adjusted Cost | 1,499,687 | 1,031,502 | ||
Fair Value | 1,499,687 | 1,031,502 | ||
Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 423,407 | 162,521 | ||
Short-Term Investments | 7,199 | 1,679 | ||
Long-Term Investments | 11,043 | 8,007 | ||
Adjusted Cost | 441,649 | 172,207 | ||
Fair Value | 441,649 | 172,207 | ||
Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 99,568 | 110,358 | ||
Long-Term Investments | 87,655 | 86,582 | ||
Adjusted Cost | 187,223 | 196,940 | ||
Fair Value | 187,223 | 196,940 | ||
Money market funds [Member] | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 423,407 | 162,521 | ||
Adjusted Cost | 423,407 | 162,521 | ||
Fair Value | 423,407 | 162,521 | ||
U.S. Treasury Securities | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 7,199 | 1,679 | ||
Long-Term Investments | 11,043 | 8,007 | ||
Adjusted Cost | 18,242 | 9,686 | ||
Fair Value | 18,242 | 9,686 | ||
Mutual Funds [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Long-Term Investments | 34,407 | 28,543 | ||
Adjusted Cost | 34,407 | 28,543 | ||
Fair Value | 34,407 | 28,543 | ||
Corporate Notes and Bonds [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 89,760 | 104,130 | ||
Long-Term Investments | 27,617 | 28,301 | ||
Adjusted Cost | 117,377 | 132,431 | ||
Fair Value | 117,377 | 132,431 | ||
Asset-backed Securities [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 5,525 | 263 | ||
Long-Term Investments | 25,631 | 23,351 | ||
Adjusted Cost | 31,156 | 23,614 | ||
Fair Value | 31,156 | 23,614 | ||
U.S. Agency Securities | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 4,283 | 5,965 | ||
Long-Term Investments | 6,387 | |||
Adjusted Cost | 4,283 | 12,352 | ||
Fair Value | 4,283 | 12,352 | ||
Cash [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 870,815 | 662,355 | ||
Fair Value | $ 870,815 | $ 662,355 |
Cash, Cash Equivalents, Short_4
Cash, Cash Equivalents, Short-Term and Long-Term Investments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Maximum [Member] | |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | |
Long-term investments maturity period | 2 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill, impairment loss | $ 0 | |
Other intangible assets, impairment loss | 0 | |
Net carrying amount of goodwill and other intangible assets | $ 135,026,000 | $ 72,277,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill | ||
Goodwill | $ 93,497 | $ 71,412 |
Other intangible assets | ||
Total gross carrying amount | 65,019 | 13,931 |
Less: Accumulated amortization | (23,490) | (13,066) |
Total other intangible assets, net | 41,529 | 865 |
Total | 135,026 | 72,277 |
Others [Member] | ||
Other intangible assets | ||
Total gross carrying amount | 13,441 | 13,290 |
Others [Member] | ||
Goodwill | ||
Goodwill | 1,934 | 1,576 |
Skechers Mexico [Member] | ||
Goodwill | ||
Goodwill | 91,563 | 69,836 |
Reacquired Rights [Member] | ||
Other intangible assets | ||
Total gross carrying amount | 46,100 | $ 641 |
Customer Relationship [Member] | ||
Other intangible assets | ||
Total gross carrying amount | $ 5,478 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 remaining months | $ 1,720 | |
2021 | 6,871 | |
2022 | 6,871 | |
2023 | 6,871 | |
2024 | 6,871 | |
Thereafter | 12,325 | |
Total other intangible assets, net | $ 41,529 | $ 865 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Operating Leased Assets [Line Items] | ||
Operating lease liabilities | $ 196,760 | $ 191,129 |
Operating lease right-of-use assets | $ 1,106,047 | $ 1,073,660 |
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 | |
New Retail Stores Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating lease right-of-use assets | $ 15,700 | |
Operating lease commencement description | These operating leases will commence in 2020 and 2021 | |
New Retail Stores Leases [Member] | Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease term | 2 years | |
New Retail Stores Leases [Member] | Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease term | 10 years |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Cost and Other Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Lessee Lease Description [Line Items] | |||||
Fixed lease cost | $ 68,059 | $ 63,724 | $ 194,714 | $ 180,324 | |
Variable lease cost | 1,141 | 1,219 | 2,152 | 10,157 | |
Operating cash flows used for leases | 61,630 | 67,744 | 188,540 | 192,066 | |
Noncash right-of-use assets recorded for lease liabilities: | |||||
Operating lease right-of-use assets | 1,106,047 | 1,106,047 | $ 1,073,660 | ||
In exchange for new lease liabilities during the period | $ 45,327 | $ 74,500 | $ 177,379 | $ 114,542 | |
Weighted-average remaining lease term | 4 years 4 months 28 days | 4 years 8 months 12 days | 4 years 4 months 28 days | 4 years 8 months 12 days | |
Weighted-average discount rate | 4.02% | 4.24% | 4.02% | 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, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 remaining months | $ 65,136 |
2021 | 240,845 |
2022 | 208,271 |
2023 | 184,152 |
2024 | 170,395 |
Thereafter | 515,258 |
Total lease payments | 1,384,057 |
Less: Imputed interest | (182,713) |
Present value of lease liabilities | $ 1,201,344 |
Short-term and Long-term Borr_3
Short-term and Long-term Borrowings - Additional Information (Detail) - USD ($) | Apr. 03, 2020 | Mar. 19, 2020 | Mar. 18, 2020 | Nov. 21, 2019 | Sep. 29, 2018 | Aug. 11, 2015 | Sep. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2015 | Nov. 16, 2012 | Apr. 30, 2010 |
Debt Instrument [Line Items] | |||||||||||
Outstanding letters of credit | $ 8,500,000 | $ 3,800,000 | |||||||||
Short-term borrowings | 21,720,000 | 5,789,000 | |||||||||
Outstanding Short-term and long-term borrowings | 812,000,000 | ||||||||||
Loan outstanding for domestic distribution center | 129,500,000 | ||||||||||
China [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, outstanding amount | 78,600,000 | ||||||||||
China [Member] | Corporate Office Building [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, outstanding amount | $ 19,000,000 | ||||||||||
China DC Loan Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum amount of credit facility | $ 700,000,000 | ||||||||||
Debt instrument maturity date | Sep. 28, 2023 | ||||||||||
Line of credit facility, frequency of payment and payment term | The interest rate at September 30, 2020 was 4.15% and 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. | ||||||||||
Variable interest rate of note payable | 4.15% | ||||||||||
Line of credit facility, outstanding amount | $ 65,400,000 | ||||||||||
Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | Interest Rate Swap [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate swap agreement date | Aug. 14, 2015 | ||||||||||
Derivative effective dates | Aug. 12, 2015 | ||||||||||
Derivative maturity date | Aug. 12, 2022 | ||||||||||
Derivative early termination date | Aug. 1, 2020 | ||||||||||
LIBOR Loans [Member] | Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | Interest Rate Swap [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument basis spread on variable rate | LIBOR Daily Floating Rate (as defined therein) plus a margin of 1.75%. | ||||||||||
Maximum [Member] | Equipment Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing under loan agreement | $ 80,000,000 | ||||||||||
Unsecured Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate of note payable | 1.30% | ||||||||||
Line of credit facility, outstanding amount | $ 487,500,000 | ||||||||||
2019 Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unsecured revolving credit facility | $ 490,000,000 | $ 500,000,000 | |||||||||
Maturity date of credit agreement | Nov. 21, 2024 | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding letters of credit | $ 487,500,000 | $ 0 | |||||||||
Maturity date of credit agreement | Jun. 30, 2020 | ||||||||||
Maximum amount of credit facility | $ 250,000,000 | ||||||||||
Line of credit facility, interest rate description | At the Company’s option, any loan (other than swingline loans) will bear interest at a rate equal to (a) LIBOR plus an applicable margin between 1.125% and 1.625% based upon the Company’s Total Adjusted Net Leverage Ratio (as defined in the 2019 Credit Agreement) or (b) a base rate (defined as the highest of (i) the Federal Funds Rate plus 0.50%, (ii) the Bank of America prime rate and (iii) LIBOR plus 1.00%) plus an applicable margin between 0.125% and 0.625% based upon the Company’s Total Adjusted Net Leverage Ratio. | ||||||||||
Adjusted net leverage ratio | 1.40% | ||||||||||
Increase in leverage ratio | 4.25% | ||||||||||
Origination, arrangement and legal fees | $ 1,600,000 | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | Federal Funds Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of line of credit agreement | 0.50% | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | LIBOR plus 1.00% [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of line of credit agreement | 1.00% | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit, increase | $ 250,000,000 | ||||||||||
Line of credit facility, fee percentage | 0.25% | ||||||||||
Adjusted net leverage ratio | 3.75% | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | Maximum [Member] | LIBOR Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of line of credit agreement | 1.625% | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | Maximum [Member] | LIBOR plus 1.00% [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of line of credit agreement | 0.625% | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | Maximum [Member] | Letter of Credit Fee [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, fee percentage | 1.625% | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, fee percentage | 0.125% | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | Minimum [Member] | LIBOR Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of line of credit agreement | 1.125% | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | Minimum [Member] | LIBOR plus 1.00% [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of line of credit agreement | 0.125% | ||||||||||
2019 Credit Agreement [Member] | Line of Credit [Member] | Minimum [Member] | Letter of Credit Fee [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, fee percentage | 1.125% | ||||||||||
2019 Credit Agreement [Member] | Letters of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum amount of credit facility | $ 100,000,000 | ||||||||||
2019 Credit Agreement [Member] | Swingline Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum amount of credit facility | $ 25,000,000 | ||||||||||
2010 Loan [Member] | Maximum [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing under loan agreement | $ 55,000,000 | ||||||||||
2010 Modified Loan [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument maturity date | Oct. 30, 2015 | ||||||||||
2015 Loan [Member] | Joint Venture with HF Logistics [Member] | Amended Loan Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument maturity date | Aug. 12, 2020 | ||||||||||
Current borrowing capacity | $ 70,000,000 | ||||||||||
Description of maturity date of debt instrument | The maturity date of the 2015 Loan was August 12, 2020, subject to HF-T1 having an option to a 24-month extension upon payment of a fee and satisfaction of certain customary terms. | ||||||||||
2015 Loan [Member] | LIBOR Loans [Member] | Joint Venture with HF Logistics [Member] | Amended Loan Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of line of credit agreement | 2.00% | ||||||||||
Debt instrument basis spread on variable rate | LIBOR Daily Floating Rate (as defined therein) plus a margin of 2%. | ||||||||||
2015 Modified Loan [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | Interest Rate Swap [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Derivative maturity date | Mar. 18, 2025 | ||||||||||
Effective fixed interest rate of loan with swap | 2.55% | ||||||||||
2015 Modified Loan [Member] | Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument maturity date | Mar. 18, 2025 | ||||||||||
Outstanding principal balance of the original loan | $ 63,300,000 | ||||||||||
Additional indebtedness | 66,200,000 | ||||||||||
Payment of accrued interest, loan fees and other closing costs | 1,000,000 | ||||||||||
Distribution made by JV | $ 64,400,000 | ||||||||||
2015 Modified Loan [Member] | LIBOR Loans [Member] | Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | Interest Rate Swap [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of line of credit agreement | 1.75% | ||||||||||
2015 Modified Loan [Member] | Minimum [Member] | 2020 Amendment Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing under loan agreement | $ 129,500,000 | ||||||||||
2020 Construction Loan [Member] | Joint Venture with HF Logistics [Member] | 2020 Construction Loan Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of line of credit agreement | 1.90% | ||||||||||
Debt instrument maturity date | Apr. 3, 2025 | ||||||||||
Debt instrument basis spread on variable rate | Under the 2020 Construction Loan Agreement, the interest rate per annum on the 2020 Construction Loan is LIBOR Daily Floating Rate (as defined therein) plus a margin of 190 basis points, reducing to 175 basis points upon substantial completion of the construction and certain other conditions being satisfied. | ||||||||||
Debt instrument, decrease in basis points | 1.75% | ||||||||||
2020 Construction Loan [Member] | Maximum [Member] | Joint Venture with HF Logistics [Member] | 2020 Construction Loan Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing under loan agreement | $ 73,000,000 |
Short-term and Long-term Borr_4
Short-term and Long-term Borrowings - Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 790,313 | $ 115,417 |
Less: Current installments | (106,702) | (66,234) |
Total long-term borrowings | 683,611 | 49,183 |
Loan Payable to a Bank, Variable-rate Interest at 2.26% Per Annum, Due April 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 9,102 | |
Loan Payable to a Bank, Variable-rate Interest at 1.86% Per Annum, Due June 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 1,165 | |
Loan Payable to a Bank, Variable-rate Interest at 4.15% Per Annum, Due September 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 65,440 | 48,791 |
Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 487,500 | |
Modification Loan [Member] | Construction Loan Agreement [Member] | Joint Venture with HF Logistics [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 129,505 | 63,692 |
Note payable to Luen Thai Enterprise, LTD [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 393 | |
Loans Payable to Banks, Variable-rate Interests at a Range of 1.84% to 3.87% per Annum, Due June 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 78,563 | $ 2,541 |
Loan Payable to a Bank, Variable-rate Interest at 4.28% per Annum, Due May 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 19,038 |
Short-term and Long-term Borr_5
Short-term and Long-term Borrowings - Long-Term Borrowings (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Loans Payable to Banks, Variable-rate Interests at a Range of 1.84% to 3.87% per Annum, Due June 2024 [Member] | |
Debt Instrument [Line Items] | |
Due date for loan payable | 2024-06 |
Loans Payable to Banks, Variable-rate Interests at a Range of 1.84% to 3.87% per Annum, Due June 2024 [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 1.84% |
Loans Payable to Banks, Variable-rate Interests at a Range of 1.84% to 3.87% per Annum, Due June 2024 [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 3.87% |
Loan Payable to a Bank, Variable-rate Interest at 4.28% per Annum, Due May 2025 [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 4.28% |
Due date for loan payable | 2025-05 |
Loan Payable to a Bank, Variable-rate Interest at 2.26% Per Annum, Due April 2025 [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 2.26% |
Due date for note payable | 2025-04 |
Loan Payable to a Bank, Variable-rate Interest at 4.15% Per Annum, Due September 2023 [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 4.15% |
Due date for loan payable | 2023-09 |
Loan Payable to a Bank, Variable-rate Interest at 1.86% Per Annum, Due June 2025 [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 1.86% |
Due date for loan payable | 2025-06 |
Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | Modification Loan [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 2.55% |
Balloon payment required under note payable | $ 129,505 |
Due date for note payable | 2025-03 |
Unsecured Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 1.30% |
Due date for note payable | 2024-11 |
Non-Controlling Interests - Add
Non-Controlling Interests - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |||
Feb. 28, 2019 | Jun. 30, 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% | 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, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 3,385,630 | $ 2,819,591 |
Non-current assets | 2,325,764 | 2,073,352 |
TOTAL ASSETS | 5,711,394 | 4,892,943 |
Current liabilities | 1,260,440 | 1,238,231 |
Non-current liabilities | 1,809,843 | 1,118,605 |
Total liabilities | 3,070,283 | 2,356,836 |
Variable interest entity, primary beneficiary [Member] | HF Logistics [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 25,924 | 5,297 |
Non-current assets | 116,700 | 104,527 |
TOTAL ASSETS | 142,624 | 109,824 |
Current liabilities | 14,097 | 64,600 |
Non-current liabilities | 133,042 | 1,009 |
Total liabilities | 147,139 | 65,609 |
Variable interest entity, primary beneficiary [Member] | Product distribution joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 886,715 | 747,668 |
Non-current assets | 510,102 | 325,283 |
TOTAL ASSETS | 1,396,817 | 1,072,951 |
Current liabilities | 583,166 | 430,282 |
Non-current liabilities | 185,434 | 135,903 |
Total liabilities | $ 768,600 | $ 566,185 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Variable Interest Entity [Line Items] | ||||
Net earnings attributable to non-controlling interests | $ 17,832 | $ 18,644 | $ 22,771 | $ 57,723 |
Distributions to non-controlling interests of consolidated entity | 51,842 | 37,608 | ||
HF Logistics-SKX, LLC [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | $ 20,788 | 870 | 47,660 | 2,718 |
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 | 4,182 | 32,245 | |
Skechers Southeast Asia Limited | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | 2,027 | 2,027 | ||
Skechers Hong Kong Limited | ||||
Variable Interest Entity [Line Items] | ||||
Distributions to non-controlling interests of consolidated entity | $ 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 | $ 49,045 | $ 22,776 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Apr. 30, 2019 |
Business Acquisition [Line Items] | ||||||
Consideration paid, net of cash acquired | $ 100,658 | |||||
Increase in Inventories | $ (23,629) | $ (1,533) | ||||
Skechers Mexico [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date | Apr. 1, 2019 | |||||
Ownership interest in joint venture | 60.00% | 60.00% | 60.00% | |||
Consideration paid, net of cash acquired | $ 120,600 | $ 120,600 | ||||
Increase to goodwill | 22,100 | |||||
Increase to intangible assets | 49,100 | |||||
Increase in deferred liabilities | 17,100 | |||||
Gain on reacquired rights | 13,900 | |||||
Increase in amortization expense and accumulated amortization | 7,000 | $ 5,200 | ||||
Increase in Inventories | 8,000 | $ 6,000 | ||||
Acquisition related costs | $ 900 |
Acquisition - Summary of Alloca
Acquisition - Summary of Allocation of Total Consideration (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Goodwill | $ 93,497 | $ 71,412 |
Skechers Mexico [Member] | ||
Business Acquisition [Line Items] | ||
Cash | 1,061 | |
Accounts receivable | 31,763 | |
Inventory | 47,890 | |
VAT receivable | 12,658 | |
Deferred tax assets | 2,180 | |
Property, plant, and equipment | 12,531 | |
Goodwill | 91,563 | $ 69,836 |
Total assets acquired | 248,746 | |
Accounts payable | 25,454 | |
VAT payable | 4,721 | |
Deferred tax liability | 17,129 | |
Total liabilities assumed | 47,304 | |
Non-controlling interest | 79,798 | |
Total purchase price | 121,644 | |
Skechers Mexico [Member] | Reacquired Rights [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | 46,100 | |
Skechers Mexico [Member] | Customer Relationship [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 3,000 |
Acquisition - Summary of Allo_2
Acquisition - Summary of Allocation of Total Consideration (Parenthetical) (Detail) - Skechers Mexico [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Business Acquisition [Line Items] | |
Business combination inventories step-up to fair market adjustment | $ 8 |
Business combination inventories step-up to fair market adjustment amortization period | 12 months |
Reacquired Rights [Member] | Minimum [Member] | |
Business Acquisition [Line Items] | |
Amortization period | 1 year |
Reacquired Rights [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Amortization period | 7 years |
Customer Relationship [Member] | |
Business Acquisition [Line Items] | |
Amortization period | 10 years |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Earnings Per Share [Line Items] | |||||
Shares excluded from the computation of diluted earnings | 88,577 | 6,454 | 108,328 | 101,992 | |
Class A Common Stock [Member] | |||||
Earnings Per Share [Line Items] | |||||
Common Stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common stock, voting rights | one vote per share | ||||
Class B Common Stock [Member] | |||||
Earnings Per Share [Line Items] | |||||
Common Stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic earnings per share | ||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 64,278 | $ 103,090 | $ 45,283 | $ 287,028 |
Weighted average common shares outstanding | 154,462 | 153,298 | 154,061 | 153,396 |
Basic earnings per share attributable to Skechers U.S.A., Inc. | $ 0.42 | $ 0.67 | $ 0.29 | $ 1.87 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Diluted earnings per share | ||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 64,278 | $ 103,090 | $ 45,283 | $ 287,028 |
Weighted average common shares outstanding | 154,462 | 153,298 | 154,061 | 153,396 |
Dilutive effect of unvested shares | 518 | 680 | 646 | 625 |
Weighted average common shares outstanding | 154,980 | 153,978 | 154,707 | 154,021 |
Diluted earnings per share attributable to Skechers U.S.A., Inc. | $ 0.41 | $ 0.67 | $ 0.29 | $ 1.86 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Apr. 17, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 29,700 | $ 10,700 | $ 55,000 | $ 30,200 | |
Non-cash charge related to cancellation of unvested shares | $ 18,200 | ||||
Cancellation of unvested shares | 750,000 | ||||
Stock redeemed, value | $ 161 | $ 5,659 | $ 13,745 | ||
Unrecognized compensation cost related to unvested common shares | $ 66,000 | $ 66,000 | |||
Weighted average period for recognition of cost | 1 year 9 months 18 days | ||||
Class A Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock redeemed, shares | 171,120 | 4,821 | 171,120 | 423,206 | |
Stock redeemed, value | $ 5,700 | $ 200 | $ 5,700 | $ 13,700 | |
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 | 15,000,000 |
Stock Compensation - Summary of
Stock Compensation - Summary of Unvested Shares Related to the 2007 and 2017 Plan (Detail) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unvested, Shares, Beginning of Period | shares | 3,426,823 |
Granted, Shares | shares | 1,069,300 |
Vested, Shares | shares | (1,035,917) |
Cancelled, Shares | shares | (784,000) |
Unvested, Shares, End of Period | shares | 2,676,206 |
Unvested, Weighted Average Grant-Date Fair Value, Beginning of Period | $ / shares | $ 32.54 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 36.52 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 32.43 |
Cancelled, Weighted Average Grant-Date Fair Value | $ / shares | 32.25 |
Unvested, Weighted Average Grant-Date Fair Value, End of Period | $ / shares | $ 34.26 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 14,983 | $ 22,766 | $ 18,104 | $ 75,288 |
Effective tax rate | 15.40% | 15.80% | 21.00% | 17.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule Of Income Taxes [Line Items] | |||||
U.S. federal and state statutory rate | 25.00% | ||||
Cash and cash equivalents | $ 1,294,222 | $ 824,876 | $ 824,004 | $ 872,237 | |
Cumulative total earnings | 299,600 | ||||
Cumulative income tax expense | $ 1,500 | ||||
Non-US [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Cash and cash equivalents | $ 596,900 | ||||
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 | 46.00% | ||||
Non-US [Member] | Funds Available For Repatriation [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Cash and cash equivalents | $ 596,900 | ||||
Minimum [Member] | Non-U.S jurisdictions [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Statutory federal rate | 0.00% | ||||
Maximum [Member] | Non-U.S jurisdictions [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Statutory federal rate | 34.00% |
Business and Credit Concentra_3
Business and Credit Concentrations - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)Customer | Sep. 30, 2019USD ($)Customer | Sep. 30, 2020USD ($)Customer | Sep. 30, 2019USD ($)Customer | Dec. 31, 2019USD ($) | |
Concentration Risk [Line Items] | |||||
Credit losses attributable to write-offs | $ 0.9 | $ 1.6 | $ 3.8 | $ 5.7 | |
Sales [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of largest customers | Customer | 5 | 5 | 5 | 5 | |
Percentage of concentration risk | 8.80% | 9.40% | 8.90% | 9.70% | |
Domestic [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 264.3 | $ 264.3 | $ 228.5 | ||
Non-US [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | 486.4 | 486.4 | 440.9 | ||
Net total assets held outside the United States | $ 3,036.4 | $ 3,036.4 | $ 2,643.8 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Concentration Risk [Line Items] | ||||
Percentage of total production | 39.60% | 42.20% | 42.20% | 41.10% |
Manufacturer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 16.40% | 16.50% | 20.60% | 15.80% |
Manufacturer Two [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 6.70% | 8.30% | 6.90% | 8.30% |
Manufacturer Three [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 6.00% | 7.20% | 5.80% | 6.90% |
Manufacturer Four [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 5.70% | 5.50% | 4.50% | 5.10% |
Manufacturer Five [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total production | 4.80% | 4.70% | 4.40% | 5.00% |
Segment and Geographic Report_3
Segment and Geographic Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020Segment | |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Sales, Total | $ 1,300,886 | $ 1,353,998 | $ 3,272,703 | $ 3,889,319 | |
Gross profit | 625,121 | 653,064 | 1,541,354 | 1,853,408 | |
Identifiable assets | 5,711,394 | 5,711,394 | $ 4,892,943 | ||
Additions to property, plant and equipment | 63,564 | 48,933 | 213,216 | 174,663 | |
Domestic wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales, Total | 318,449 | 299,634 | 827,148 | 951,635 | |
Gross profit | 123,122 | 111,205 | 318,824 | 354,299 | |
Identifiable assets | 1,934,991 | 1,934,991 | 1,472,323 | ||
Additions to property, plant and equipment | 36,036 | 7,976 | 71,245 | 66,001 | |
International wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales, Total | 643,393 | 646,596 | 1,603,774 | 1,824,214 | |
Gross profit | 295,565 | 298,799 | 716,489 | 837,467 | |
Identifiable assets | 2,397,446 | 2,397,446 | 2,100,042 | ||
Additions to property, plant and equipment | 13,647 | 27,947 | 96,091 | 73,922 | |
Direct-to-consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales, Total | 339,044 | 407,768 | 841,781 | 1,113,470 | |
Gross profit | 206,434 | 243,060 | 506,041 | 661,642 | |
Identifiable assets | 1,378,957 | 1,378,957 | $ 1,320,578 | ||
Additions to property, plant and equipment | $ 13,881 | $ 13,010 | $ 45,880 | $ 34,740 |
Segment and Geographic Report_5
Segment and Geographic Reporting - Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Sales, Total | $ 1,300,886 | $ 1,353,998 | $ 3,272,703 | $ 3,889,319 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 870,162 | 870,162 | $ 738,925 | ||
Domestic [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales, Total | 537,528 | 558,173 | 1,386,522 | 1,655,413 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 491,600 | 491,600 | 439,132 | ||
Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales, Total | 36,995 | 46,576 | 97,203 | 138,900 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 5,959 | 5,959 | 7,286 | ||
Other international [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales, Total | 726,363 | $ 749,249 | 1,788,978 | $ 2,095,006 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | $ 372,603 | $ 372,603 | $ 292,507 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Management [Member] | ||||
Related Party Transaction [Line Items] | ||||
Contribution to Skechers Foundation for various charitable purposes | $ 500,000 | $ 250,000 | $ 1,500,000 | $ 750,000 |