Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | SKX | |
Security Exchange Name | NYSE | |
Entity Registrant Name | SKECHERS USA INC | |
Entity Central Index Key | 0001065837 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity File Number | 001-14429 | |
Entity Tax Identification Number | 95-4376145 | |
Entity Address, Address Line One | 228 Manhattan Beach Blvd. | |
Entity Address, City or Town | Manhattan Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90266 | |
City Area Code | 310 | |
Local Phone Number | 318-3100 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 134,368,462 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,385,569 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 896,514 | $ 615,733 |
Short-term investments | 80,648 | 102,166 |
Trade accounts receivable, less allowances of $61,984 and $59,472 | 940,201 | 848,287 |
Other receivables | 69,307 | 86,036 |
Inventory | 1,486,012 | 1,818,016 |
Prepaid expenses and other | 197,007 | 176,035 |
Total current assets ($1,061,021 and $1,014,962 related to VIEs) | 3,669,689 | 3,646,273 |
Property, plant and equipment, net | 1,417,225 | 1,345,370 |
Operating lease right-of-use assets | 1,230,635 | 1,200,565 |
Deferred tax assets | 461,021 | 454,190 |
Long-term investments | 96,591 | 70,498 |
Goodwill | 101,483 | 93,497 |
Other assets, net | 131,013 | 83,094 |
Total non-current assets ($608,819 and $598,973 related to VIEs) | 3,437,968 | 3,247,214 |
TOTAL ASSETS | 7,107,657 | 6,893,487 |
Current liabilities | ||
Accounts payable | 802,234 | 957,384 |
Accrued expenses | 300,071 | 294,143 |
Operating lease liabilities | 261,954 | 238,694 |
Current installments of long-term borrowings | 76,388 | 103,184 |
Short-term borrowings | 36,654 | 19,635 |
Total current liabilities ($538,025 and $568,158 related to VIEs) | 1,477,301 | 1,613,040 |
Long-term operating lease liabilities | 1,069,384 | 1,063,672 |
Long-term borrowings | 236,763 | 216,488 |
Deferred tax liabilities | 20,224 | 8,656 |
Other long-term liabilities | 112,523 | 120,045 |
Total non-current liabilities ($310,148 and $293,726 related to VIEs) | 1,438,894 | 1,408,861 |
Total liabilities | 2,916,195 | 3,021,901 |
Commitments and contingencies (Note 10) | 0 | 0 |
Stockholders’ equity | ||
Preferred Stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 362,769 | 403,799 |
Accumulated other comprehensive loss | (87,707) | (84,897) |
Retained earnings | 3,564,133 | 3,250,931 |
Skechers U.S.A., Inc. equity | 3,839,349 | 3,569,988 |
Noncontrolling interests | 352,113 | 301,598 |
Total stockholders' equity | 4,191,462 | 3,871,586 |
TOTAL LIABILITIES AND EQUITY | 7,107,657 | 6,893,487 |
Class A Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock | 134 | 134 |
Class B Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock | $ 20 | $ 21 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Trade accounts receivable, allowances | $ 68,501 | $ 59,472 |
Current assets related to VIEs | 3,669,689 | 3,646,273 |
Non-current assets related to VIEs | 3,437,968 | 3,247,214 |
Current liabilities related to VIEs | 1,477,301 | 1,613,040 |
Non-current liabilities related to VIEs | $ 1,438,894 | $ 1,408,861 |
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 |
Variable interest entity, primary beneficiary [Member] | ||
Current assets related to VIEs | $ 1,100,137 | $ 1,014,962 |
Non-current assets related to VIEs | 616,850 | 598,973 |
Current liabilities related to VIEs | 533,807 | 568,158 |
Non-current liabilities related to VIEs | $ 313,526 | $ 293,726 |
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 | 134,291,000 | 134,473,000 |
Common Stock, shares outstanding | 134,291,000 | 134,473,000 |
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 | 20,464,000 | 20,810,000 |
Common Stock, shares outstanding | 20,464,000 | 20,810,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Sales | $ 2,012,516 | $ 1,867,804 | $ 4,014,444 | $ 3,687,398 |
Cost of sales | 951,992 | 970,225 | 1,975,341 | 1,965,656 |
Gross profit | 1,060,524 | 897,579 | 2,039,103 | 1,721,742 |
Operating expenses | ||||
Selling | 187,118 | 166,609 | 315,678 | 274,818 |
General and administrative | 655,673 | 576,812 | 1,282,115 | 1,116,862 |
Total operating expenses | 842,791 | 743,421 | 1,597,793 | 1,391,680 |
Earnings from operations | 217,733 | 154,158 | 441,310 | 330,062 |
Other income (expense) | 2,792 | (19,259) | 12,715 | (25,005) |
Earnings before income taxes | 220,525 | 134,899 | 454,025 | 305,057 |
Income tax expense | 38,942 | 28,739 | 82,158 | 62,731 |
Net earnings | 181,583 | 106,160 | 371,867 | 242,326 |
Less: Net earnings attributable to noncontrolling interests | 28,824 | 15,756 | 58,665 | 30,699 |
Net earnings attributable to Skechers U.S.A., Inc. | $ 152,759 | $ 90,404 | $ 313,202 | $ 211,627 |
Net earnings per share attributable to Skechers U.S.A., Inc. | ||||
Basic | $ 0.99 | $ 0.58 | $ 2.02 | $ 1.36 |
Diluted | $ 0.98 | $ 0.58 | $ 2 | $ 1.35 |
Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc. | ||||
Basic | 154,970 | 155,941 | 155,055 | 155,969 |
Diluted | 156,571 | 156,748 | 156,654 | 157,074 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 181,583 | $ 106,160 | $ 371,867 | $ 242,326 |
Other comprehensive income, net of tax | ||||
Net unrealized gain (loss) on derivative contract | 499 | 1,254 | (917) | 7,097 |
Loss on foreign currency translation adjustment | (16,144) | (42,229) | (9,293) | (40,740) |
Comprehensive income | 165,938 | 65,185 | 361,657 | 208,683 |
Less: Comprehensive income attributable to noncontrolling interests | 20,669 | 3,743 | 51,265 | 23,764 |
Comprehensive income attributable to Skechers U.S.A., Inc. | $ 145,269 | $ 61,442 | $ 310,392 | $ 184,919 |
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 Loss [Member] | Retained Earnings [Member] | Skechers U.S.A., Inc. Equity [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2021 | $ 3,542,072 | $ 135 | $ 21 | $ 429,608 | $ (48,323) | $ 2,877,903 | $ 3,259,344 | $ 282,728 | ||
Beginning Balance, Shares at Dec. 31, 2021 | 135,107,000 | 20,939,000 | ||||||||
Net earnings | 242,326 | 211,627 | 211,627 | 30,699 | ||||||
Foreign currency translation adjustment | (40,740) | (27,461) | (27,461) | (13,279) | ||||||
Distributions to noncontrolling interests | (4,650) | 4,650 | ||||||||
Net unrealized gain (loss) on derivative contract | 7,097 | 753 | 753 | 6,344 | ||||||
Stock compensation expense | 33,796 | 33,796 | 33,796 | |||||||
Proceeds from the employee stock purchase plan, Shares | 144,000 | |||||||||
Proceeds from the employee stock purchase plan | 4,836 | 4,836 | 4,836 | |||||||
Shares issued under the incentive award plan | $ 1 | (1) | ||||||||
Shares issued under the incentive award plan, Shares | 1,258,000 | |||||||||
Shares redeemed for employee tax withholdings | 17,401 | 17,401 | 17,401 | |||||||
Shares redeemed for employee tax withholdings, Shares | 427,000 | |||||||||
Repurchases of common stock | $ (49,232) | $ 1 | 49,231 | 49,232 | ||||||
Repurchases of common stock, Shares | (1,287,486) | 1,287,000 | ||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 50,000 | (50,000) | ||||||||
Ending Balance at Jun. 30, 2022 | $ 3,718,104 | $ 135 | $ 21 | 402,360 | (75,784) | 3,089,530 | 3,416,262 | 301,842 | ||
Ending Balance, Shares at Jun. 30, 2022 | 134,845,000 | 20,889,000 | ||||||||
Beginning Balance at Mar. 31, 2022 | 3,665,916 | $ 135 | $ 21 | 415,357 | (46,822) | 2,999,126 | 3,367,817 | 298,099 | ||
Beginning Balance, Shares at Mar. 31, 2022 | 134,829,000 | 20,939,000 | ||||||||
Net earnings | 106,160 | 90,404 | 90,404 | 15,756 | ||||||
Foreign currency translation adjustment | (42,229) | (28,962) | (28,962) | (13,267) | ||||||
Net unrealized gain (loss) on derivative contract | 1,254 | 1,254 | ||||||||
Stock compensation expense | 15,828 | 15,828 | 15,828 | |||||||
Proceeds from the employee stock purchase plan, Shares | 144,000 | |||||||||
Proceeds from the employee stock purchase plan | 4,836 | 4,836 | 4,836 | |||||||
Shares issued under the incentive award plan | $ 1 | (1) | ||||||||
Shares issued under the incentive award plan, Shares | 692,000 | |||||||||
Shares redeemed for employee tax withholdings | 9,429 | 9,429 | 9,429 | |||||||
Shares redeemed for employee tax withholdings, Shares | 234,000 | |||||||||
Repurchases of common stock | $ (24,232) | $ 1 | 24,231 | 24,232 | ||||||
Repurchases of common stock, Shares | (635,712) | 636,000 | ||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 50,000 | (50,000) | ||||||||
Ending Balance at Jun. 30, 2022 | $ 3,718,104 | $ 135 | $ 21 | 402,360 | (75,784) | 3,089,530 | 3,416,262 | 301,842 | ||
Ending Balance, Shares at Jun. 30, 2022 | 134,845,000 | 20,889,000 | ||||||||
Beginning Balance at Dec. 31, 2022 | 3,871,586 | $ 134 | $ 21 | 403,799 | (84,897) | 3,250,931 | 3,569,988 | 301,598 | ||
Beginning Balance, Shares at Dec. 31, 2022 | 134,473,000 | 20,810,000 | 134,473,000 | 20,810,000 | ||||||
Net earnings | 371,867 | 313,202 | 313,202 | 58,665 | ||||||
Foreign currency translation adjustment | (9,293) | (2,810) | (2,810) | (6,483) | ||||||
Distributions to noncontrolling interests | (750) | 750 | ||||||||
Net unrealized gain (loss) on derivative contract | (917) | (917) | ||||||||
Stock compensation expense | 31,968 | 31,968 | 31,968 | |||||||
Proceeds from the employee stock purchase plan, Shares | 148,000 | |||||||||
Proceeds from the employee stock purchase plan | 5,402 | 5,402 | 5,402 | |||||||
Shares issued under the incentive award plan | $ 1 | (1) | ||||||||
Shares issued under the incentive award plan, Shares | 938,000 | |||||||||
Shares redeemed for employee tax withholdings | 18,375 | 18,375 | 18,375 | |||||||
Shares redeemed for employee tax withholdings, Shares | 358,000 | |||||||||
Repurchases of common stock | $ (60,026) | $ 2 | 60,024 | 60,026 | ||||||
Repurchases of common stock, Shares | (1,255,665) | 1,256,000 | ||||||||
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 | 346,000 | (346,000) | ||||||||
Ending Balance at Jun. 30, 2023 | $ 4,191,462 | $ 134 | $ 20 | 362,769 | (87,707) | 3,564,133 | 3,839,349 | 352,113 | ||
Ending Balance, Shares at Jun. 30, 2023 | 134,291,000 | 20,464,000 | 134,291,000 | 20,464,000 | ||||||
Beginning Balance at Mar. 31, 2023 | 4,046,295 | $ 134 | $ 20 | 383,540 | (80,217) | 3,411,374 | 3,714,851 | 331,444 | ||
Beginning Balance, Shares at Mar. 31, 2023 | 134,259,000 | 20,474,000 | ||||||||
Net earnings | 181,583 | 152,759 | 152,759 | 28,824 | ||||||
Foreign currency translation adjustment | (16,144) | 7,490 | 7,490 | 8,654 | ||||||
Net unrealized gain (loss) on derivative contract | (499) | (499) | ||||||||
Stock compensation expense | 17,716 | 17,716 | 17,716 | |||||||
Proceeds from the employee stock purchase plan, Shares | 148,000 | |||||||||
Proceeds from the employee stock purchase plan | 5,402 | 5,402 | 5,402 | |||||||
Shares issued under the incentive award plan | $ 1 | (1) | ||||||||
Shares issued under the incentive award plan, Shares | 713,000 | |||||||||
Shares redeemed for employee tax withholdings | (13,877) | (13,877) | (13,877) | |||||||
Shares redeemed for employee tax withholdings, Shares | 260,000 | |||||||||
Repurchases of common stock | $ (30,012) | $ (1) | (30,011) | (30,012) | ||||||
Repurchases of common stock, Shares | (579,475) | 579,000 | ||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 10,000 | (10,000) | ||||||||
Ending Balance at Jun. 30, 2023 | $ 4,191,462 | $ 134 | $ 20 | $ 362,769 | $ (87,707) | $ 3,564,133 | $ 3,839,349 | $ 352,113 | ||
Ending Balance, Shares at Jun. 30, 2023 | 134,291,000 | 20,464,000 | 134,291,000 | 20,464,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net earnings | $ 371,867 | $ 242,326 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation and amortization | 85,395 | 72,032 |
Provision for bad debts and returns | 35,169 | 9,542 |
Stock compensation | 31,968 | 33,796 |
Deferred income taxes | (5,381) | (4,110) |
Net foreign currency adjustments | (16,211) | 12,336 |
Changes in operating assets and liabilities | ||
Receivables | (61,318) | (210,229) |
Inventory | 353,102 | (125,485) |
Other assets | (27,440) | 10,766 |
Accounts payable | (164,224) | 118,667 |
Other liabilities | (27,668) | (4,932) |
Net cash provided by operating activities | 575,259 | 154,709 |
Cash flows from investing activities | ||
Capital expenditures | (147,425) | (163,511) |
Acquisitions, net of cash acquired | (70,369) | |
Purchases of investments | (73,034) | (32,770) |
Proceeds from sales and maturities of investments | 68,458 | 82,418 |
Net cash used in investing activities | (222,370) | (113,863) |
Cash flows from financing activities | ||
Net proceeds from the employee stock purchase plan | 5,402 | 4,836 |
Repayments on long-term borrowings | (28,031) | (29,777) |
Proceeds from long-term borrowings | 21,510 | 16,040 |
Net proceeds from (repayments on) short-term borrowings | 17,019 | (1,195) |
Payments for employee taxes related to stock compensation | (18,375) | (17,401) |
Repurchases of common stock | (60,026) | (49,232) |
Distributions to noncontrolling interests | (750) | (4,650) |
Net cash used in financing activities | (63,251) | (81,379) |
Effect of exchange rate changes on cash and cash equivalents | (8,857) | (3,846) |
Net change in cash and cash equivalents | 280,781 | (44,379) |
Cash and cash equivalents at beginning of the period | 615,733 | 796,283 |
Cash and cash equivalents at end of the period | 896,514 | 751,904 |
Cash paid during the period for | ||
Interest | 10,770 | 8,855 |
Income taxes, net | 66,782 | 50,817 |
Non-cash transactions | ||
Right-of-use assets exchanged for lease liabilities | 143,941 | $ 154,448 |
Non-cash consideration for acquired business | $ 9,180 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 152,759 | $ 90,404 | $ 313,202 | $ 211,627 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General
General | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
General | (1) General Basis of Presentation The accompanying unaudited 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 (“GAAP”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S‑X. In the opinion of management, all normal adjustments and accruals considered necessary to provide a fair statement of the results of operations for the interim periods presented have been included. The December 31, 2022 balance sheet data was derived from audited financial statements; however, the accompanying notes to condensed consolidated financial statements do not include all of the annual disclosures required under GAAP and should be read in conjunction with the Company’s 2022 Annual Report on Form 10-K. Certain reclassifications have been made to the condensed consolidated financial statements in prior years to conform to the current year presentation. Noncontrolling Interests The Company has equity interests in several joint ventures that were established either to exclusively distribute the Company’s products throughout Mexico, Asia and the Middle East or to construct the Company’s domestic distribution facility. These joint ventures are variable interest entities (“VIE”), and the Company is considered the primary beneficiary. This determination is based on the relationships between the Company and the VIE, including management agreements, governance documents and other contractual arrangements. Specifically, the Company has both of the following characteristics: (a) the power to direct the activities of the entity 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. The assets and liabilities and results of operations of these entities are included in the Company’s condensed consolidated financial statements, even though the Company may not hold a majority equity interest. The Company continues to reassess these relationships quarterly. The assets of these joint ventures are restricted, as 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. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value hierarchy as defined by applicable accounting standards prioritizes the use of inputs used in valuation techniques into the following three levels: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions. The Company’s Level 1 investments primarily include money market funds, United States (“U.S.”) Treasury securities and actively traded mutual funds; Level 2 investments primarily include corporate notes and bonds, asset-backed securities and U.S. Agency securities; and the Company does not currently have any Level 3 assets or liabilities. The Company has one Level 2 derivative instrument which is an interest rate swap related to the refinancing of its U.S. distribution center (see Note 4 – Financial Commitments) classified as other assets, net. 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. The carrying amount of receivables, payables and other amounts arising out of the normal course of business 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 on current rates and terms available to the Company for similar debt. DERIVATIVE INSTRUMENTS The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements . To accomplish this objective, the Company uses an interest rate swap as part of its interest rate risk management strategy. The Company’s interest rate swap, designated as a cash flow hedge, involves the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. By utilizing an interest rate swap, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of June 30, 2023 , all counterparties to the interest rate swap had performed in accordance with their contractual obligations. RecentLY ADOPTED Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, as amended and supplemented by subsequent ASUs (collectively, “ASU 2020-04” and “ASU 2022-06”), which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for borrowing instruments, which use London Interbank Offered Rate ("LIBOR") as a reference rate, and is available through December 31, 2024. During the second quarter of 2023, the Company amended certain terms of our loan agreement with Bank of America and the related interest rate swap to replace the LIBOR with the daily Secured Overnight Financing Rate ("SOFR") as part of our planned reference rate reform activities, as discussed in Note 4 - Financial Commitments . The Company elected to apply the practical expedient which allows us to account for the modification of the amended agreements as if the modifications were not substantial. These amendments did not result in any change to our application of hedge accounting or and did not have a material impact to our consolidated financial statements. |
Cash, Cash Equivalents, Short-T
Cash, Cash Equivalents, Short-Term And Long-Term Investments | 6 Months Ended |
Jun. 30, 2023 | |
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 following tables show the Company’s cash, cash equivalents, short-term and long-term investments by significant investment category: As of June 30, 2023 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 789,496 $ 789,496 $ 789,496 $ — $ — Level 1 Money market funds 98,033 98,033 98,033 — — U.S. Treasury securities 14,119 14,119 2,999 11,120 — Mutual funds N/A 11,355 — — 11,355 Total level 1 112,152 123,507 101,032 11,120 11,355 Level 2 Corporate notes and bonds 98,921 98,921 5,986 66,526 26,409 Asset-backed securities 8,547 8,547 — — 8,547 U.S. Agency securities 4,710 4,710 — 3,002 1,708 Total level 2 112,178 112,178 5,986 69,528 36,664 Total $ 1,013,826 $ 1,025,181 $ 896,514 $ 80,648 $ 48,019 As of December 31, 2022 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 539,730 $ 539,730 $ 539,730 $ — $ — Level 1 Money market funds 71,503 71,503 71,503 — — U.S. Treasury securities 18,201 18,201 2,000 16,201 — Mutual funds N/A 5,893 — — 5,893 Total level 1 89,704 95,597 73,503 16,201 5,893 Level 2 Corporate notes and bonds 101,959 101,959 2,500 85,731 13,728 Asset-backed securities 4,641 4,641 — 234 4,407 Total level 2 106,600 106,600 2,500 85,965 18,135 Total $ 736,034 $ 741,927 $ 615,733 $ 102,166 $ 24,028 The Company’s investments consist of 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. The Company holds mutual funds in its deferred compensation plan which are classified as trading securities. 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 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. Included in long-term investments on the Condensed Consolidated Balance Sheets are company owned life insurance contracts of $ 48.6 million and $ 46.5 million as of June 30, 2023 and December 31, 2022. Interest income was $ 5.2 million and $ 1.6 million for three months ended June 30, 2023 and 2022, and $ 7.9 million and $ 2.7 million for six months ended June 30, 2023 and 2022. When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term and macroeconomic trends, including current conditions and forecasts to the extent they are reasonable and supportable. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (3) Accrued Expenses Accrued expenses were as follows: As of As of (in thousands) June 30, 2023 December 31, 2022 Accrued payroll, taxes, and other $ 147,217 $ 143,664 Return reserve liability 80,072 60,482 Accrued inventory purchases 72,782 89,997 Accrued expenses $ 300,071 $ 294,143 |
Financial Commitments
Financial Commitments | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Financial Commitments | (4) Financial Commitments The Company had $ 3.1 million and $ 2.7 million letters of credit as of June 30, 2023 and December 31, 2022, and approximately $ 36.7 million and $ 19.6 million in short-term borrowings as of June 30, 2023 and December 31, 2022. Interest expense was $ 6.0 million and $ 4.6 million for the three months ended June 30, 2023 and 2022, and $ 11.1 million and $ 9.1 million for six months ended June 30, 2023 and 2022. Long-term borrowings were as follows: As of As of (in thousands) June 30, 2023 December 31, 2022 HF-T1 Distribution Center Loan $ 129,505 $ 129,505 HF-T2 Distribution Center Construction Loan 73,017 72,098 China Distribution Center Construction Loan 19,255 41,329 China Distribution Center Expansion Construction Loan 34,015 14,507 China Operational Loans 53,051 54,361 Other 4,308 7,872 Subtotal 313,151 319,672 Less: Current installments 76,388 103,184 Total long-term borrowings $ 236,763 $ 216,488 Revolving Credit Facility The Company maintains a revolving credit facility to manage liquidity, including working capital and capital expenditures. On December 15, 2021, the Company amended its $ 500.0 million senior, unsecured revolving credit agreement dated November 21, 2019 (the “Amended Credit Agreement”). The Amended Credit Agreement expands its senior, unsecured credit facility to $ 750.0 million, which 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 $ 50.0 million. The Amended Credit Agreement extends the maturity date of the credit agreement, which was due to expire on November 21, 2024 , to December 15, 2026 . As of June 30, 2023 , there was no outstanding balance under the revolving credit facility. The unused credit capacity was $ 746.9 million and $ 747.3 million as of June 30, 2023 and December 31 , 2022. The Company is required to maintain a maximum total adjusted net leverage ratio of 3.75 :1, except in the event of an acquisition in which case the ratio may be increased at the Company’s election to 4.25 :1 for the quarter in which such acquisition occurs and for the next three quarters thereafter. The Company was in compliance with the financial covenants as of June 30, 2023 . In addition, the Company had $ 36.7 million and $ 19.6 million outstanding under short-term borrowings as of June 30, 2023 and December 31, 2022. Included in these amounts are $ 30.8 million and $ 14.5 million as of June 30, 2023 and December 31, 2022, related to our subsidiary in India, which has a line of credit of $ 42.9 million and $ 34.1 million as of June 30, 2023 and December 31, 2022, and a weighted average interest rate of 8.7 % for the six months ended June 30, 2023. HF-T1 Distribution Center Loan To finance construction and improvements to the Company’s North American distribution center, the Company’s joint venture with HF Logistics I, LLC (“HF”), HF Logistics-SKX, LLC (the “JV”) , through a wholly-owned subsidiary of the JV (“HF - T1”), entered into a $ 129.5 million construction loan agreement which matures on March 18, 2025 (the “HF-T1 2020 Loan”) with interest of SOFR Daily Floating Rate plus a margin of 1.75 % per annum. HF-T1 also entered into an ISDA master agreement (together with the schedule related thereto, the “Swap Agreement”) with Bank of America, N.A. 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”) as amended (the “Swap Agreement Amendment”) on March 18, 2020 with Bank of America, N.A. with a maturity date of March 18, 2025 . The Swap Agreement Amendment fixes the effective interest rate on the HF-T1 2020 Loan at 2.55 % per annum. The HF-T1 2020 Loan and 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 revolving credit facility. The obligations of the JV under this loan are guaranteed by HF. The Interest Rate Swap involves the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During the second quarter of 2023, the Company amended certain terms of our loan agreement with Bank of America and the related interest rate swap to replace the LIBOR with the daily SOFR as part of our planned reference rate reform activities. As of both June 30, 2023 and December 31, 2022, the Interest Rate Swap had an aggregate notional amount of $ 129.5 million. Under the terms of the Swap Agreement Amendment, the Company will pay a weighted-average fixed rate of 0.778 % on the notional amount and receive payments from the counterparty based on the 30-day SOFR rate, effectively modifying the Company’s exposure to interest rate risk by converting floating-rate debt to a fixed rate of 2.63 %. HF-T2 Distribution Center Construction Loan To finance the expansion of the Company’s North American distribution center, the JV, through HF Logistics-SKX T2, LLC, a wholly-owned subsidiary of the JV (“HF-T2”) entered into a construction loan agreement of up to $ 73.0 million which matures on April 3, 2025 . Under the 2020 Construction Loan Agreement, the interest rate per annum on the HF-T2 2020 Construction Loan based on the Bloomberg Short-Term Bank Yield Index (“BSBY”) 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 weighted-average annual interest rate on borrowings under the HF-T2 Distribution Center Construction Loan was approximately 6.63 % during the six months ended June 30, 2023 . The obligations of the JV under this loan are guaranteed by TGD Holdings I, LLC, which is an affiliate of HF. China Distribution Center Construction Loan The Company entered into a 700.0 million yuan loan agreement to finance the construction of its distribution center in China which matures on September 28, 2023 . The interest rate at June 30, 2023 was 4.00 % and may increase or decrease over the life of the loan, and will be evaluated every 12 months. Beginning in 2021, the principal of the loan is repaid in semi-annual installments of variable amounts. The obligations of the China distribution center construction loan, entered through the Company’s Taicang Subsidiary are jointly and severally guaranteed by the Company’s China joint venture. As of June 30, 2023 and December 31, 2022, the outstanding balance under this loan included approximately $ 19.3 million and $ 41.3 million classified as current installments of long-term borrowings. China Distribution Center Expansion Construction Loan On October 18, 2022, the Company entered into a loan agreement for 1.1 billion yuan with Bank of China Co., Ltd to finance the construction of its distribution center expansion in China. Interest is paid quarterly. The interest rate at June 30, 2023 was 3.4 % and may increase or decrease over the life of the loan, and will be evaluated every 12 months. This loan matures 10 years from the initial receipt of funds. Beginning in 2026, the principal of the loan will be repaid in semi-annual installments of variable amounts. The obligations of this loan entered through the Company’s Taicang Subsidiary are jointly and severally guaranteed by the Company’s China joint venture. China Operational Loans The Company has certain secured credit facilities to support the operations of its China joint venture. The balance of working capital loans was approximately $ 53.1 million with interest rates ranging from 2.90 % to 3.00 % per annum as of June 30, 2023 . The balance of working capital loans as of December 31, 2022 was approximately $ 54.4 million with interest rates ranging from 2.90 % to 3.41 % per annum. The outstanding balances under these working capital loans are classified as current installments of long-term borrowings. |
Stockholders Equity and Stock C
Stockholders Equity and Stock Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders Equity and Stock Compensation | (5) Stockholders Equity and Stock Compensation SHARE REPURCHASE PROGRAM On January 31, 2022, the Company’s Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which the Company may, from time to time, purchase shares of its Class A common stock, for an aggregate repurchase price not to exceed $ 500 million. The Share Repurchase Program expires on January 31, 2025 and does not obligate the Company to acquire any particular amount of shares. As of June 30, 2023, there was $ 365.7 million remaining to repurchase shares under the Share Repurchase Program. The following table provides a summary the Company’s stock repurchase activities: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Shares repurchased 579,475 635,712 1,255,665 1,287,486 Average cost per share $ 51.79 $ 38.12 $ 47.80 $ 38.24 Total cost of shares repurchased (in thousands) $ 30,012 $ 24,232 $ 60,026 $ 49,232 INCENTIVE AWARD PLAN On April 6, 2023, the Company's Board of Directors adopted the 2023 Incentive Award Plan (the "2023 Plan"), which became effective upon approval by the Company's stockholders on June 12, 2023. The 2023 Plan replaced and superseded in its entirety the 2017 Plan. A total of 7,500,000 shares of Class A Common Stock are reserved for issuance under the 2023 Plan, which provides for the grants of ISOs, non-qualified stock options, restricted stock and various other types of equity awards as described in the plan to the employees, consultants, and directors of the Company. The 2023 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. In the six months ended June 30, 2023 , the Company granted restricted stock with time-based vesting as well as performance-based awards. The performance-based awards include a market condition tied to the Company’s total shareholder return in relation to its peer companies as well as a financial performance condition tied to annual earnings per share (“EPS”) growth. The vesting and ultimate payout of performance awards is determined at the end of the three-year performance period and can vary from zero to 200 % based on actual results. As of June 30, 2023 , there were 6,768,539 shares available for grant as equity awards under the 2023 Incentive Award Plan if target levels are achieved for performance-based awards and 6,292,756 if maximum levels are achieved. The Company issued the following stock-based instruments: Six Months Ended June 30, 2023 2022 Granted Weighted-Average Grant-Date Fair Value Granted Weighted-Average Grant-Date Fair Value Restricted stock 885,490 $ 45.83 1,314,850 $ 38.57 Performance-based restricted stock 121,225 $ 43.34 116,250 $ 42.46 Market-based restricted stock 121,225 $ 59.71 116,250 $ 58.85 A summary of the status and changes of the Company’s unvested shares is presented below: Shares Weighted-Average Grant-Date Fair Value Unvested at December 31, 2022 3,423,902 $ 40.62 Granted 1,127,940 47.06 Vested ( 938,237 ) 38.96 Cancelled ( 37,000 ) 40.63 Unvested at June 30, 2023 3,576,605 $ 43.08 The Company determines the fair value of restricted stock awards and any performance-related components based on the closing market price of the Company’s common stock on the date of grant. For share-based awards with a performance-based vesting requirement, the Company evaluates the probability of achieving the performance criteria throughout the performance period and will adjust stock compensation expense up or down based on its estimated probable outcome. Certain performance-based awards contain market condition components which are valued on the date of grant using a Monte Carlo simulation model. For the three months ended June 30, 2023 and 2022, the Company recognized $ 16.9 million and $ 15.1 million of incentive stock compensation expense. For the six months ended June 30, 2023 and 2022 , the Company recognized $ 30.4 million and $ 32.3 million of incentive stock compensation expense. As of June 30, 2023 , the unamortized stock compensation of $ 111.6 million is expected to be recognized over a weighted-average period of 1.93 years. STOCK PURCHASE PLAN A total of 5,000,000 shares of Class A Common Stock are available for sale under the 2018 Employee Stock Purchase Plan (“2018 ESPP”). The 2018 ESPP provides eligible employees of the Company and its subsidiaries the opportunity to purchase shares of the Company’s Class A Common Stock at a purchase price equal to 85 % of the fair market value on the first trading day or last trading day of each purchase period, whichever is lower. Eligible employees can invest up to 15 % of their compensation through payroll deductions during each purchase period. The purchase price discount and the look-back feature cause the 2018 ESPP to be compensatory and the Company recognizes compensation expense, which is computed using the Black-Scholes valuation model. For the three months ended June 30, 2023 and 2022, the Company recognized $ 0.8 million and $ 0.7 million of ESPP stock compensation expense. For the six months ended June 30, 2023 and 2022, the Company recognized $ 1.5 million of ESPP stock compensation expense. As of June 30, 2023 , there were 3,667,869 shares available for sale under the 2018 ESPP. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (6) Earnings Per Share Basic EPS and diluted EPS are calculated by dividing net earnings by the following: for basic EPS, the weighted-average number of common shares outstanding for the period; and for diluted EPS, the sum of the weighted-average number of both outstanding common shares and potentially dilutive common shares using the treasury stock method. The calculation of EPS is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2023 2022 2023 2022 Net earnings attributable to Skechers U.S.A., Inc. $ 152,759 $ 90,404 $ 313,202 $ 211,627 Weighted-average common shares outstanding, basic 154,970 155,941 155,055 155,969 Dilutive effect of nonvested shares 1,601 807 1,599 1,105 Weighted-average common shares outstanding, diluted 156,571 156,748 156,654 157,074 Anti-dilutive common shares excluded above 12 67 14 37 Net earnings per share attributable to Skechers U.S.A., Inc. Basic $ 0.99 $ 0.58 $ 2.02 $ 1.36 Diluted $ 0.98 $ 0.58 $ 2.00 $ 1.35 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes The tax provisions for the three and six months ended June 30, 2023 and 2022, 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 (loss) before income taxes. In the foreign jurisdictions in which the Company has operations, the applicable statutory rates range from 0 % to 35 % , which is on average significantly lower than the U.S. federal and state combined statutory rate of approximately 25 %. The Company’s effective tax rate was 17.7 % and 21.3 % for the three months ended June 30, 2023 and 2022, and 18.1 % and 20.6 % for the six months ended June 30, 2023 and 2022. The decrease for the quarterly rates is primarily due to the positive impact of discrete items. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (8) Related Party Transactions The Skechers Foundation (the “Foundation”) is a 501(c)(3) non-profit entity and not a subsidiary or otherwise affiliated with the Company. 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 officers and directors of the Foundation. During the three months ended June 30, 2023 and June 30, 2022 , the Company made contributions of $ 1.0 million and $ 0.5 million, and contributions of $ 1.0 million for each of the six-month periods ended June 30, 2023 and June 30, 2022 . |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | (9) Segment and Geographic Information The Company has two reportable segments, Wholesale and Direct-to-Consumer. Management evaluates segment performance based primarily on sales and gross margin. Other costs and expenses of the Company are analyzed on an aggregate basis and not allocated to the segments. The following summarizes the Company’s operations by segment and geographic area: Segment Information Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Wholesale sales $ 1,073,019 $ 1,140,325 $ 2,367,576 $ 2,391,631 Gross profit 431,551 414,479 943,550 869,439 Gross margin 40.2 % 36.3 % 39.9 % 36.4 % Direct-to-Consumer sales $ 939,497 $ 727,479 $ 1,646,868 $ 1,295,767 Gross profit 628,973 483,100 1,095,553 852,303 Gross margin 66.9 % 66.4 % 66.5 % 65.8 % Total sales $ 2,012,516 $ 1,867,804 $ 4,014,444 $ 3,687,398 Gross profit 1,060,524 897,579 2,039,103 1,721,742 Gross margin 52.7 % 48.1 % 50.8 % 46.7 % (in thousands) As of As of Identifiable assets Wholesale $ 3,575,560 $ 3,682,860 Direct-to-Consumer 3,532,097 3,210,627 Total $ 7,107,657 $ 6,893,487 Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Additions to property, plant and equipment Wholesale $ 55,916 $ 49,965 $ 107,432 $ 114,663 Direct-to-Consumer 20,296 24,148 39,993 48,848 Total $ 76,212 $ 74,113 $ 147,425 $ 163,511 Geographic Information Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Geographic sales Domestic Wholesale $ 390,783 $ 521,041 $ 832,685 $ 1,059,610 Domestic Direct-to-Consumer 411,063 319,508 710,027 558,956 Total domestic sales 801,846 840,549 1,542,712 1,618,566 International Wholesale 682,236 619,284 1,534,891 1,332,021 International Direct-to-Consumer 528,434 407,971 936,841 736,811 Total international sales 1,210,670 1,027,255 2,471,732 2,068,832 Total sales $ 2,012,516 $ 1,867,804 $ 4,014,444 $ 3,687,398 Regional Sales Americas (AMER) $ 1,027,006 $ 1,033,879 $ 1,972,936 $ 1,980,765 Europe, Middle East & Africa (EMEA) 433,351 374,566 967,845 815,767 Asia Pacific (APAC) 552,159 459,359 1,073,663 890,866 Total sales $ 2,012,516 $ 1,867,804 $ 4,014,444 $ 3,687,398 China sales $ 302,401 $ 254,917 $ 584,354 $ 527,948 (in thousands) As of As of Property, plant and equipment, net Domestic $ 901,797 $ 870,924 International 515,428 474,446 Total $ 1,417,225 $ 1,345,370 China property plant and equipment, net $ 280,463 $ 264,422 The Company’s sales to its five largest customers accounted for approximately 8.0 % and 11.1 % of total sales for the three months ended June 30, 2023 and 2022, and for the six months ended June 30, 2023 and 2022 were 7.8 % and 10.2 % . 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 U.S. were $ 4.8 billion and $ 4.4 billion at June 30, 2023 and December 31, 2022. Goodwill of $ 101.5 million and $ 93.5 million is included in the Wholesale segment as of June 30, 2023 and December 31, 2022. The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. Domestic accounts receivable generally do not require collateral. Foreign accounts receivable are generally collateralized by letters of credit. The Company’s additions to the provision for expected credit losses for the three months ended June 30, 2023 and 2022 were $ 0.4 million and $ 0.7 million, and for the six months ended June 30, 2023 and 2022 were $ 1.1 million and $ 1.0 million. The Company’s accounts receivables, excluding allowances for bad debts and chargebacks, by geography are summarized as follows: (in thousands) As of As of Domestic Accounts Receivable $ 331,663 $ 310,138 International Accounts Receivable 677,039 597,621 The Company’s top five manufacturers produced the following: Three Months Ended June 30, Six Months Ended June 30, (percentage of total production) 2023 2022 2023 2022 Manufacturer #1 17.1 16.1 19.8 16.9 Manufacturer #2 7.1 6.3 6.5 5.6 Manufacturer #3 6.8 6.1 6.5 5.6 Manufacturer #4 6.1 6.0 5.7 5.1 Manufacturer #5 5.5 5.0 5.2 4.7 Total 42.6 39.5 43.7 37.9 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies In accordance with GAAP, the Company records a liability in its condensed consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from litigation and governmental proceedings are inherently difficult to predict, particularly when the matters are in the procedural stages or with unspecified or indeterminate claims for damages, potential penalties, or fines. Accordingly, the Company cannot determine the final amount, if any, of its liability beyond the amount accrued in the condensed consolidated financial statements as of June 30, 2023 , 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. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | (11) Business Combinations Business acquisitions are accounted for under the acquisition method by assigning the purchase consideration to tangible and intangible assets acquired and liabilities assumed. The results of businesses acquired in a business combination are included in the consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase consideration over the amounts assigned is recorded as goodwill. Purchased intangible assets with finite lives are amortized over their estimated useful lives. 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. On May 31, 2023, the Company acquired 100 % of the equity interests of Sports Connection Holdings ApS ("Sports Connection"), a Denmark-based company and a former distributor, to further broaden our reach in Europe. The total consideration is approximately $ 84.0 million and consisted of an initial cash payment of $ 74.8 million, the settlement of pre-existing receivables of $ 1.7 million and a contingent consideration payable of up to $ 7.5 million, subject to the acquiree achieving certain 2023 financial results. On the acquisition date, we recorded intangible assets of $ 54.4 million, goodwill of $ 8.0 million and other net assets of $ 21.6 million. The intangible assets have an estimated life of 7 years and are primarily related to reacquired rights. The acquisition is a non-taxable business combination and goodwill is not deductible for tax purposes. The results of Sports Connection's operations have been included in, but are not material to, the Company's consolidated results of operations since the date of acquisition. Unaudited supplemental 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. One-time acquisition related costs of $ 1.4 million were expensed as general and administrative expenses as incurred. The purchase accounting for the Sports Connection acquisition remains preliminary. Although the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, as well as any contingent consideration, the estimates are inherently uncertain and subject to refinement. As a result, any adjustments will be recognized in the reporting period in which the amounts are determined, but not to exceed twelve months from the acquisition date. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited 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 (“GAAP”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S‑X. In the opinion of management, all normal adjustments and accruals considered necessary to provide a fair statement of the results of operations for the interim periods presented have been included. The December 31, 2022 balance sheet data was derived from audited financial statements; however, the accompanying notes to condensed consolidated financial statements do not include all of the annual disclosures required under GAAP and should be read in conjunction with the Company’s 2022 Annual Report on Form 10-K. Certain reclassifications have been made to the condensed consolidated financial statements in prior years to conform to the current year presentation. |
Noncontrolling Interests | Noncontrolling Interests The Company has equity interests in several joint ventures that were established either to exclusively distribute the Company’s products throughout Mexico, Asia and the Middle East or to construct the Company’s domestic distribution facility. These joint ventures are variable interest entities (“VIE”), and the Company is considered the primary beneficiary. This determination is based on the relationships between the Company and the VIE, including management agreements, governance documents and other contractual arrangements. Specifically, the Company has both of the following characteristics: (a) the power to direct the activities of the entity 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. The assets and liabilities and results of operations of these entities are included in the Company’s condensed consolidated financial statements, even though the Company may not hold a majority equity interest. The Company continues to reassess these relationships quarterly. The assets of these joint ventures are restricted, as 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. |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value hierarchy as defined by applicable accounting standards prioritizes the use of inputs used in valuation techniques into the following three levels: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions. The Company’s Level 1 investments primarily include money market funds, United States (“U.S.”) Treasury securities and actively traded mutual funds; Level 2 investments primarily include corporate notes and bonds, asset-backed securities and U.S. Agency securities; and the Company does not currently have any Level 3 assets or liabilities. The Company has one Level 2 derivative instrument which is an interest rate swap related to the refinancing of its U.S. distribution center (see Note 4 – Financial Commitments) classified as other assets, net. 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. The carrying amount of receivables, payables and other amounts arising out of the normal course of business 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 on current rates and terms available to the Company for similar debt. |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements . To accomplish this objective, the Company uses an interest rate swap as part of its interest rate risk management strategy. The Company’s interest rate swap, designated as a cash flow hedge, involves the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. By utilizing an interest rate swap, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of June 30, 2023 , all counterparties to the interest rate swap had performed in accordance with their contractual obligations. |
Recently Adopted Accounting Pronouncements | RecentLY ADOPTED Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, as amended and supplemented by subsequent ASUs (collectively, “ASU 2020-04” and “ASU 2022-06”), which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for borrowing instruments, which use London Interbank Offered Rate ("LIBOR") as a reference rate, and is available through December 31, 2024. During the second quarter of 2023, the Company amended certain terms of our loan agreement with Bank of America and the related interest rate swap to replace the LIBOR with the daily Secured Overnight Financing Rate ("SOFR") as part of our planned reference rate reform activities, as discussed in Note 4 - Financial Commitments . The Company elected to apply the practical expedient which allows us to account for the modification of the amended agreements as if the modifications were not substantial. These amendments did not result in any change to our application of hedge accounting or and did not have a material impact to our consolidated financial statements. |
Cash, Cash Equivalents, Short_2
Cash, Cash Equivalents, Short-Term And Long-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 789,496 $ 789,496 $ 789,496 $ — $ — Level 1 Money market funds 98,033 98,033 98,033 — — U.S. Treasury securities 14,119 14,119 2,999 11,120 — Mutual funds N/A 11,355 — — 11,355 Total level 1 112,152 123,507 101,032 11,120 11,355 Level 2 Corporate notes and bonds 98,921 98,921 5,986 66,526 26,409 Asset-backed securities 8,547 8,547 — — 8,547 U.S. Agency securities 4,710 4,710 — 3,002 1,708 Total level 2 112,178 112,178 5,986 69,528 36,664 Total $ 1,013,826 $ 1,025,181 $ 896,514 $ 80,648 $ 48,019 As of December 31, 2022 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 539,730 $ 539,730 $ 539,730 $ — $ — Level 1 Money market funds 71,503 71,503 71,503 — — U.S. Treasury securities 18,201 18,201 2,000 16,201 — Mutual funds N/A 5,893 — — 5,893 Total level 1 89,704 95,597 73,503 16,201 5,893 Level 2 Corporate notes and bonds 101,959 101,959 2,500 85,731 13,728 Asset-backed securities 4,641 4,641 — 234 4,407 Total level 2 106,600 106,600 2,500 85,965 18,135 Total $ 736,034 $ 741,927 $ 615,733 $ 102,166 $ 24,028 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses were as follows: As of As of (in thousands) June 30, 2023 December 31, 2022 Accrued payroll, taxes, and other $ 147,217 $ 143,664 Return reserve liability 80,072 60,482 Accrued inventory purchases 72,782 89,997 Accrued expenses $ 300,071 $ 294,143 |
Financial Commitments (Tables)
Financial Commitments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | Long-term borrowings were as follows: As of As of (in thousands) June 30, 2023 December 31, 2022 HF-T1 Distribution Center Loan $ 129,505 $ 129,505 HF-T2 Distribution Center Construction Loan 73,017 72,098 China Distribution Center Construction Loan 19,255 41,329 China Distribution Center Expansion Construction Loan 34,015 14,507 China Operational Loans 53,051 54,361 Other 4,308 7,872 Subtotal 313,151 319,672 Less: Current installments 76,388 103,184 Total long-term borrowings $ 236,763 $ 216,488 |
Stockholders Equity and Stock_2
Stockholders Equity and Stock Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Summary of Stock Repurchase Activities | The following table provides a summary the Company’s stock repurchase activities: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Shares repurchased 579,475 635,712 1,255,665 1,287,486 Average cost per share $ 51.79 $ 38.12 $ 47.80 $ 38.24 Total cost of shares repurchased (in thousands) $ 30,012 $ 24,232 $ 60,026 $ 49,232 |
Summary of Stock-Based Instruments | The Company issued the following stock-based instruments: Six Months Ended June 30, 2023 2022 Granted Weighted-Average Grant-Date Fair Value Granted Weighted-Average Grant-Date Fair Value Restricted stock 885,490 $ 45.83 1,314,850 $ 38.57 Performance-based restricted stock 121,225 $ 43.34 116,250 $ 42.46 Market-based restricted stock 121,225 $ 59.71 116,250 $ 58.85 |
Summary of Unvested Shares | A summary of the status and changes of the Company’s unvested shares is presented below: Shares Weighted-Average Grant-Date Fair Value Unvested at December 31, 2022 3,423,902 $ 40.62 Granted 1,127,940 47.06 Vested ( 938,237 ) 38.96 Cancelled ( 37,000 ) 40.63 Unvested at June 30, 2023 3,576,605 $ 43.08 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of EPS | The calculation of EPS is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2023 2022 2023 2022 Net earnings attributable to Skechers U.S.A., Inc. $ 152,759 $ 90,404 $ 313,202 $ 211,627 Weighted-average common shares outstanding, basic 154,970 155,941 155,055 155,969 Dilutive effect of nonvested shares 1,601 807 1,599 1,105 Weighted-average common shares outstanding, diluted 156,571 156,748 156,654 157,074 Anti-dilutive common shares excluded above 12 67 14 37 Net earnings per share attributable to Skechers U.S.A., Inc. Basic $ 0.99 $ 0.58 $ 2.02 $ 1.36 Diluted $ 0.98 $ 0.58 $ 2.00 $ 1.35 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Segment Information Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Wholesale sales $ 1,073,019 $ 1,140,325 $ 2,367,576 $ 2,391,631 Gross profit 431,551 414,479 943,550 869,439 Gross margin 40.2 % 36.3 % 39.9 % 36.4 % Direct-to-Consumer sales $ 939,497 $ 727,479 $ 1,646,868 $ 1,295,767 Gross profit 628,973 483,100 1,095,553 852,303 Gross margin 66.9 % 66.4 % 66.5 % 65.8 % Total sales $ 2,012,516 $ 1,867,804 $ 4,014,444 $ 3,687,398 Gross profit 1,060,524 897,579 2,039,103 1,721,742 Gross margin 52.7 % 48.1 % 50.8 % 46.7 % (in thousands) As of As of Identifiable assets Wholesale $ 3,575,560 $ 3,682,860 Direct-to-Consumer 3,532,097 3,210,627 Total $ 7,107,657 $ 6,893,487 Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Additions to property, plant and equipment Wholesale $ 55,916 $ 49,965 $ 107,432 $ 114,663 Direct-to-Consumer 20,296 24,148 39,993 48,848 Total $ 76,212 $ 74,113 $ 147,425 $ 163,511 |
Geographic Information | Geographic Information Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Geographic sales Domestic Wholesale $ 390,783 $ 521,041 $ 832,685 $ 1,059,610 Domestic Direct-to-Consumer 411,063 319,508 710,027 558,956 Total domestic sales 801,846 840,549 1,542,712 1,618,566 International Wholesale 682,236 619,284 1,534,891 1,332,021 International Direct-to-Consumer 528,434 407,971 936,841 736,811 Total international sales 1,210,670 1,027,255 2,471,732 2,068,832 Total sales $ 2,012,516 $ 1,867,804 $ 4,014,444 $ 3,687,398 Regional Sales Americas (AMER) $ 1,027,006 $ 1,033,879 $ 1,972,936 $ 1,980,765 Europe, Middle East & Africa (EMEA) 433,351 374,566 967,845 815,767 Asia Pacific (APAC) 552,159 459,359 1,073,663 890,866 Total sales $ 2,012,516 $ 1,867,804 $ 4,014,444 $ 3,687,398 China sales $ 302,401 $ 254,917 $ 584,354 $ 527,948 (in thousands) As of As of Property, plant and equipment, net Domestic $ 901,797 $ 870,924 International 515,428 474,446 Total $ 1,417,225 $ 1,345,370 China property plant and equipment, net $ 280,463 $ 264,422 |
Summary of Accounts Receivables Excluding the Allowance for Bad Debts and Chargebacks | The Company’s accounts receivables, excluding allowances for bad debts and chargebacks, by geography are summarized as follows: (in thousands) As of As of Domestic Accounts Receivable $ 331,663 $ 310,138 International Accounts Receivable 677,039 597,621 |
Company's Top Five Manufacturers Produced | The Company’s top five manufacturers produced the following: Three Months Ended June 30, Six Months Ended June 30, (percentage of total production) 2023 2022 2023 2022 Manufacturer #1 17.1 16.1 19.8 16.9 Manufacturer #2 7.1 6.3 6.5 5.6 Manufacturer #3 6.8 6.1 6.5 5.6 Manufacturer #4 6.1 6.0 5.7 5.1 Manufacturer #5 5.5 5.0 5.2 4.7 Total 42.6 39.5 43.7 37.9 |
General - Additional Informatio
General - Additional Information (Detail) | Jun. 30, 2023 Derivative |
Interest Rate Swap [Member] | Level 2 [Member] | |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | |
Number of derivative instrument | 1 |
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | $ 896,514 | $ 615,733 |
Short-Term Investments | 80,648 | 102,166 |
Long-Term Investments | 48,019 | 24,028 |
Adjusted Cost | 1,013,826 | 736,034 |
Fair Value | 1,025,181 | 741,927 |
Level 1 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 101,032 | 73,503 |
Fair Value | 123,507 | 95,597 |
Short-Term Investments | 11,120 | 16,201 |
Long-Term Investments | 11,355 | 5,893 |
Adjusted Cost | 112,152 | 89,704 |
Level 2 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 5,986 | 2,500 |
Fair Value | 112,178 | 106,600 |
Short-Term Investments | 69,528 | 85,965 |
Long-Term Investments | 36,664 | 18,135 |
Adjusted Cost | 112,178 | 106,600 |
Money market funds [Member] | Level 1 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 98,033 | 71,503 |
Fair Value | 98,033 | 71,503 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | 0 | 0 |
Adjusted Cost | 98,033 | 71,503 |
U.S. Treasury Securities [Member] | Level 1 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 2,999 | 2,000 |
Fair Value | 14,119 | 18,201 |
Short-Term Investments | 11,120 | 16,201 |
Long-Term Investments | 0 | 0 |
Adjusted Cost | 14,119 | 18,201 |
Mutual Funds [Member] | Level 1 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Fair Value | 11,355 | 5,893 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | 11,355 | 5,893 |
Adjusted Cost | 0 | 0 |
Corporate Notes and Bonds [Member] | Level 2 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 5,986 | 2,500 |
Fair Value | 98,921 | 101,959 |
Short-Term Investments | 66,526 | 85,731 |
Long-Term Investments | 26,409 | 13,728 |
Adjusted Cost | 98,921 | 101,959 |
Asset-backed Securities [Member] | Level 2 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Fair Value | 8,547 | 4,641 |
Short-Term Investments | 0 | 234 |
Long-Term Investments | 8,547 | 4,407 |
Adjusted Cost | 8,547 | 4,641 |
Cash [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 789,496 | 539,730 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | 0 | 0 |
Fair Value | 789,496 | $ 539,730 |
U.S. Agency securities [Member] | Level 2 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 0 | |
Fair Value | 4,710 | |
Short-Term Investments | 3,002 | |
Long-Term Investments | 1,708 | |
Adjusted Cost | $ 4,710 |
Cash, Cash Equivalents, Short_4
Cash, Cash Equivalents, Short-Term and Long-Term Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | |||||
Interest income | $ 5,200 | $ 1,600 | $ 7,900 | $ 2,700 | |
Company owned life insurance contracts | 96,591 | 96,591 | $ 70,498 | ||
Life Insurance Contracts [Member] | |||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | |||||
Company owned life insurance contracts | $ 48,600 | $ 48,600 | $ 46,500 | ||
Maximum [Member] | |||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | |||||
Long-term investments maturity period | 2 years |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued payroll, taxes, and other | $ 147,217 | $ 143,664 |
Return reserve liability | 80,072 | 60,482 |
Accrued inventory purchases | 72,782 | 89,997 |
Accrued expenses | $ 300,071 | $ 294,143 |
Financial Commitments - Additio
Financial Commitments - Additional Information (Detail) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Oct. 18, 2022 CNY (¥) | Dec. 15, 2021 USD ($) | Mar. 18, 2020 | Nov. 21, 2019 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Outstanding letters of credit | $ 3,100,000 | $ 3,100,000 | $ 2,700,000 | |||||||
Short-term borrowings | 36,654,000 | 36,654,000 | 19,635,000 | |||||||
Interest Expense | $ 6,000,000 | $ 4,600,000 | $ 11,100,000 | $ 9,100,000 | ||||||
Weighted-average annual interest rate | 8.70% | 8.70% | 8.70% | |||||||
Interest Rate Swap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate notional amount | $ 129,500,000 | $ 129,500,000 | $ 129,500,000 | |||||||
Weighted-average fixed rate | 0.778% | 0.778% | 0.778% | 0.778% | ||||||
Derivative, fixed interest rate | 2.63% | 2.63% | 2.63% | 2.63% | ||||||
China Distribution Center Construction Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum amount of credit facility | ¥ | ¥ 700 | |||||||||
Debt instrument maturity date | Sep. 28, 2023 | |||||||||
Debt instrument variable rate | 4% | 4% | 4% | |||||||
Line of credit facility, frequency of payment and payment term | The interest rate at June 30, 2023 was 4.00% and may increase or decrease over the life of the loan, and will be evaluated every 12 months. | |||||||||
Outstanding balance | $ 19,300,000 | $ 19,300,000 | $ 41,300,000 | |||||||
Loan amount | ¥ | ¥ 1,100 | |||||||||
Debt instrument rate | 3.40% | 3.40% | 3.40% | |||||||
Debt instrument, term | 10 years | |||||||||
Other China Operational Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum amount of credit facility | $ 53,100,000 | $ 53,100,000 | 54,400,000 | |||||||
Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | SOFR Loans [Member] | Interest Rate Swap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument basis spread on variable rate | SOFR Daily Floating Rate plus a margin of 1.75% per annum. | |||||||||
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 | |||||||||
Joint Venture with HF Logistics [Member] | 2020 Construction Loan Agreement [Member] | HF-T2 Distribution Center Construction Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted-average annual interest rate | 6.63% | 6.63% | 6.63% | |||||||
Debt instrument maturity date | Apr. 03, 2025 | |||||||||
Interest rate of line of credit agreement | 1.90% | |||||||||
Debt instrument basis spread on variable rate | Under the 2020 Construction Loan Agreement, the interest rate per annum on the HF-T2 2020 Construction Loan | |||||||||
Debt instrument, decrease in basis points | 1.75% | |||||||||
India [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Short-term borrowings | $ 30,800,000 | $ 30,800,000 | 14,500,000 | |||||||
Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit | 42,900,000 | 42,900,000 | 34,100,000 | |||||||
Maximum [Member] | Joint Venture with HF Logistics [Member] | 2020 Construction Loan Agreement [Member] | HF-T2 Distribution Center Construction Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing under loan agreement | 73,000,000 | 73,000,000 | ||||||||
Amended Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument unused credit capacity | 746,900,000 | 746,900,000 | $ 747,300,000 | |||||||
Amended Credit Agreement [Member] | Unsecured Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum amount of credit facility | $ 750,000,000 | $ 500,000,000 | ||||||||
Maturity date of credit agreement | Dec. 15, 2026 | Nov. 21, 2024 | ||||||||
Amended Credit Agreement [Member] | Line of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Increase in leverage ratio | 4.25% | |||||||||
Amended Credit Agreement [Member] | Line of Credit [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, increase | $ 250,000,000 | |||||||||
Adjusted net leverage ratio | 3.75 | |||||||||
Amended Credit Agreement [Member] | Letters of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum amount of credit facility | $ 100,000,000 | |||||||||
Amended Credit Agreement [Member] | Swingline Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum amount of credit facility | $ 50,000,000 | |||||||||
Amended Credit Agreement [Member] | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Short-term borrowings | 0 | $ 0 | ||||||||
HF-T1 Distribution Center Loan [Member] | Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument maturity date | Mar. 18, 2025 | |||||||||
HF-T1 Distribution Center Loan [Member] | Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | SOFR Loans [Member] | Interest Rate Swap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate of line of credit agreement | 1.75% | |||||||||
HF-T1 Distribution Center 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% | |||||||||
HF-T1 Distribution Center Loan [Member] | Minimum [Member] | 2020 Amendment Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing under loan agreement | $ 129,500,000 | $ 129,500,000 | ||||||||
Interests at a Range of 2.90% to 3.00% per Annum [Member] | Maximum [Member] | Other China Operational Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument variable rate | 3% | 3% | 3% | |||||||
Interests at a Range of 2.90% to 3.00% per Annum [Member] | Minimum [Member] | Other China Operational Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument variable rate | 2.90% | 2.90% | 2.90% | |||||||
Interests at a Range of 2.90% to 3.41% per Annum [Member] | Maximum [Member] | Other China Operational Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument variable rate | 3.41% | |||||||||
Interests at a Range of 2.90% to 3.41% per Annum [Member] | Minimum [Member] | Other China Operational Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument variable rate | 2.90% |
Financial Commitments - Long-Te
Financial Commitments - Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 313,151 | $ 319,672 |
Current installments of long-term borrowings | 76,388 | 103,184 |
Long-term borrowings | 236,763 | 216,488 |
China Operational Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 53,051 | 54,361 |
China Distribution Center Construction Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 19,255 | 41,329 |
China Distribution Center Expansion Construction Loan | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 34,015 | 14,507 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 4,308 | 7,872 |
HF-T1 Distribution Center Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 129,505 | 129,505 |
HF-T2 Distribution Center Construction Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 73,017 | $ 72,098 |
Stockholders Equity and Stock_3
Stockholders Equity and Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jan. 31, 2022 | |
Class Of Stock [Line Items] | |||||
Stock repurchase program expiration date | Jan. 31, 2025 | ||||
Remaining to repurchase shares under Share Repurchase Program | $ 365.7 | $ 365.7 | |||
Recognized stock compensation expense | 16.9 | $ 15.1 | 30.4 | $ 32.3 | |
Unrecognized compensation cost related to nonvested common shares | 111.6 | $ 111.6 | |||
Weighted average period for recognition of cost | 1 year 11 months 4 days | ||||
ESPP | |||||
Class Of Stock [Line Items] | |||||
Recognized stock compensation expense | $ 0.8 | $ 0.7 | $ 1.5 | $ 1.5 | |
Performance-Based Awards [Member] | |||||
Class Of Stock [Line Items] | |||||
Performance period | 3 years | ||||
Performance-Based Awards [Member] | Minimum [Member] | |||||
Class Of Stock [Line Items] | |||||
Payout percentage of performance awards | 0% | ||||
Performance-Based Awards [Member] | Maximum [Member] | |||||
Class Of Stock [Line Items] | |||||
Payout percentage of performance awards | 200% | ||||
2018 ESPP [Member] | |||||
Class Of Stock [Line Items] | |||||
Number of shares available for sale under employee stock purchase plan | 3,667,869 | 3,667,869 | |||
Percentage of price of common stock purchased | 85% | ||||
Maximum percentage of employee's compensation to purchase common stock | 15% | 15% | |||
2023 Plan [Member] | Performance-Based Awards [Member] | |||||
Class Of Stock [Line Items] | |||||
Number of shares that remain available for grant | 6,768,539 | 6,768,539 | |||
2023 Plan [Member] | Performance-Based Awards [Member] | Maximum [Member] | |||||
Class Of Stock [Line Items] | |||||
Number of shares that remain available for grant | 6,292,756 | 6,292,756 | |||
Class A Common Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Stock repurchase program authorized amount | $ 500 | ||||
Class A Common Stock [Member] | 2018 ESPP [Member] | |||||
Class Of Stock [Line Items] | |||||
Number of shares available for sale under employee stock purchase plan | 5,000,000 | 5,000,000 | |||
Class A Common Stock [Member] | 2023 Plan [Member] | |||||
Class Of Stock [Line Items] | |||||
Number of shares reserved for issuance | 7,500,000 | 7,500,000 |
Stockholders Equity and Stock_4
Stockholders Equity and Stock Compensation - Summary of Stock Repurchase Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Shares repurchased | 579,475 | 635,712 | 1,255,665 | 1,287,486 |
Average cost per share | $ 51.79 | $ 38.12 | $ 47.8 | $ 38.24 |
Total cost of shares repurchased (in thousands) | $ 30,012 | $ 24,232 | $ 60,026 | $ 49,232 |
Stockholders Equity and Stock_5
Stockholders Equity and Stock Compensation - Summary of Stock-Based Instruments (Detail) - $ / shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, shares | 1,127,940 | |
Weighted-Average Grant-Date Fair Value, shares | $ 47.06 | |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, shares | 885,490 | 1,314,850 |
Weighted-Average Grant-Date Fair Value, shares | $ 45.83 | $ 38.57 |
Performance-Based Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, shares | 121,225 | 116,250 |
Weighted-Average Grant-Date Fair Value, shares | $ 43.34 | $ 42.46 |
Market-Based Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, shares | 121,225 | 116,250 |
Weighted-Average Grant-Date Fair Value, shares | $ 59.71 | $ 58.85 |
Stockholders Equity and Stock_6
Stockholders Equity and Stock Compensation - Summary of Unvested Shares (Detail) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Unvested, Shares, Beginning of Period | shares | 3,423,902 |
Granted, Shares | shares | 1,127,940 |
Vested, Shares | shares | (938,237) |
Cancelled, Shares | shares | (37,000) |
Unvested, Shares, End of Period | shares | 3,576,605 |
Unvested, Weighted Average Grant-Date Fair Value, Beginning of Period | $ / shares | $ 40.62 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 47.06 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 38.96 |
Cancelled, Weighted Average Grant-Date Fair Value | $ / shares | 40.63 |
Unvested, Weighted Average Grant-Date Fair Value, End of Period | $ / shares | $ 43.08 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Calculation of EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) | $ 152,759 | $ 90,404 | $ 313,202 | $ 211,627 |
Weighted-average common shares outstanding, basic | 154,970 | 155,941 | 155,055 | 155,969 |
Dilutive effect of nonvested shares | 1,601 | 807 | 1,599 | 1,105 |
Weighted-average common shares outstanding, diluted | 156,571 | 156,748 | 156,654 | 157,074 |
Anti-dilutive common shares excluded above | 12 | 67 | 14 | 37 |
Net earnings per share attributable to Skechers U.S.A., Inc. | ||||
Basic | $ 0.99 | $ 0.58 | $ 2.02 | $ 1.36 |
Diluted | $ 0.98 | $ 0.58 | $ 2 | $ 1.35 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule Of Income Taxes [Line Items] | ||||
U.S. federal and state statutory rate | 25% | |||
Effective tax rate | 17.70% | 21.30% | 18.10% | 20.60% |
Non-U.S jurisdictions [Member] | Minimum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Statutory federal rate | 0% | |||
Non-U.S jurisdictions [Member] | Maximum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Statutory federal rate | 35% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transactions [Abstract] | ||||
Contributions to Skechers Foundation for various charitable purposes | $ 1 | $ 0.5 | $ 1 | $ 1 |
Segment and Geographic Inform_3
Segment and Geographic Information - Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 2,012,516 | $ 1,867,804 | $ 4,014,444 | $ 3,687,398 | |
Gross profit | $ 1,060,524 | $ 897,579 | $ 2,039,103 | $ 1,721,742 | |
Gross margin | 52.70% | 48.10% | 50.80% | 46.70% | |
Identifiable assets | $ 7,107,657 | $ 7,107,657 | $ 6,893,487 | ||
Additions to property, plant and equipment | 76,212 | $ 74,113 | 147,425 | $ 163,511 | |
Wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,073,019 | 1,140,325 | 2,367,576 | 2,391,631 | |
Gross profit | $ 431,551 | $ 414,479 | $ 943,550 | $ 869,439 | |
Gross margin | 40.20% | 36.30% | 39.90% | 36.40% | |
Identifiable assets | $ 3,575,560 | $ 3,575,560 | 3,682,860 | ||
Additions to property, plant and equipment | 55,916 | $ 49,965 | 107,432 | $ 114,663 | |
Direct-to-Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 939,497 | 727,479 | 1,646,868 | 1,295,767 | |
Gross profit | $ 628,973 | $ 483,100 | $ 1,095,553 | $ 852,303 | |
Gross margin | 66.90% | 66.40% | 66.50% | 65.80% | |
Identifiable assets | $ 3,532,097 | $ 3,532,097 | $ 3,210,627 | ||
Additions to property, plant and equipment | $ 20,296 | $ 24,148 | $ 39,993 | $ 48,848 |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 2,012,516 | $ 1,867,804 | $ 4,014,444 | $ 3,687,398 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 1,417,225 | 1,417,225 | $ 1,345,370 | ||
Wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,073,019 | 1,140,325 | 2,367,576 | 2,391,631 | |
Direct-to-Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 939,497 | 727,479 | 1,646,868 | 1,295,767 | |
Domestic [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 801,846 | 840,549 | 1,542,712 | 1,618,566 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 901,797 | 901,797 | 870,924 | ||
Domestic [Member] | Wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 390,783 | 521,041 | 832,685 | 1,059,610 | |
Domestic [Member] | Direct-to-Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 411,063 | 319,508 | 710,027 | 558,956 | |
Americas (AMER) [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,027,006 | 1,033,879 | 1,972,936 | 1,980,765 | |
Europe, Middle East & Africa (EMEA) [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 433,351 | 374,566 | 967,845 | 815,767 | |
Asia Pacific (APAC) [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 552,159 | 459,359 | 1,073,663 | 890,866 | |
China Operational Loans [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 302,401 | 254,917 | 584,354 | 527,948 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 280,463 | 280,463 | 264,422 | ||
International [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,210,670 | 1,027,255 | 2,471,732 | 2,068,832 | |
Property, plant and equipment, net | |||||
Property, plant and equipment, net | 515,428 | 515,428 | $ 474,446 | ||
International [Member] | Wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 682,236 | 619,284 | 1,534,891 | 1,332,021 | |
International [Member] | Direct-to-Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | $ 528,434 | $ 407,971 | $ 936,841 | $ 736,811 |
Segment and Geographic Inform_5
Segment and Geographic Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) Customer | Jun. 30, 2022 USD ($) Customer | Jun. 30, 2023 USD ($) Customer | Jun. 30, 2022 USD ($) Customer | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Goodwill | $ 101,483 | $ 101,483 | $ 93,497 | ||
Provision for expected credit losses | 35,169 | $ 9,542 | |||
Wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | 101,500 | 101,500 | 93,500 | ||
International [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net assets held outside the United States | 4,800,000 | 4,800,000 | $ 4,400,000 | ||
Provision for expected credit losses | $ 400 | $ 700 | $ 1,100 | $ 1,000 | |
Sales [Member] | Customer Concentration Risk [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Number of largest customers | Customer | 5 | 5 | 5 | 5 | |
Sales [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of concentration risk | 8% | 11.10% | 7.80% | 10.20% |
Segment and Geographic Inform_6
Segment and Geographic Information - Summary of Accounts Receivables Excluding the Allowance for Bad Debts and Chargebacks (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Domestic [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | $ 331,663 | $ 310,138 |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | $ 677,039 | $ 597,621 |
Segment and Geographic Inform_7
Segment and Geographic Information - Company's Top Five Manufacturers Produced (Detail) - Cost of Goods, Total [Member] - Supplier Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Manufacturer One [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of Total Production | 17.10% | 16.10% | 19.80% | 16.90% |
Manufacturer Two [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of Total Production | 7.10% | 6.30% | 6.50% | 5.60% |
Manufacturer Three [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of Total Production | 6.80% | 6.10% | 6.50% | 5.60% |
Manufacturer Four [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of Total Production | 6.10% | 6% | 5.70% | 5.10% |
Manufacturer Five [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of Total Production | 5.50% | 5% | 5.20% | 4.70% |
Top Five Manufacturers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of Total Production | 42.60% | 39.50% | 43.70% | 37.90% |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 101,483 | $ 93,497 | |
Other net assets | $ 131,013 | $ 83,094 | |
Sports Connection Holdings Aps [Member] | |||
Business Acquisition [Line Items] | |||
Company acquired equity interest | 100% | ||
Business combination, consideration transferred | $ 84,000 | ||
Business combination, cash payments | 74,800 | ||
Business combination, settlement of pre-existing receivables | 1,700 | ||
Business combination, intangible assets acquired | 54,400 | ||
Goodwill | 8,000 | ||
Other net assets | $ 21,600 | ||
Intangible assets, estimated life | 7 years | ||
Sports Connection Holdings Aps [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Business combination, contingent consideration payable | $ 7,500 | ||
Sports Connection Holdings Aps [Member] | General and Administrative Expenses | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 1,400 |