Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 17, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SKX | ||
Entity Registrant Name | SKECHERS USA INC | ||
Entity Central Index Key | 0001065837 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-14429 | ||
Entity Incorporation, State or Country Code | DE | ||
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 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 4.2 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Definitive Proxy Statement issued in connection with the 2020 Annual Meeting of the Stockholders of the registrant are incorporated by reference into Part III. | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 134,497,828 | ||
Class B Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 22,407,803 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 824,876 | $ 872,237 |
Short-term investments | 112,037 | 100,029 |
Trade accounts receivable, less allowances of $24,106 in 2019 and $25,616 in 2018 | 645,303 | 501,913 |
Other receivables | 53,932 | 55,683 |
Total receivables | 699,235 | 557,596 |
Inventories | 1,069,863 | 863,260 |
Prepaid expenses and other current assets | 113,580 | 79,018 |
Total current assets | 2,819,591 | 2,472,140 |
Property, plant and equipment, net | 738,925 | 585,457 |
Operating lease right-of-use assets | 1,073,660 | |
Deferred tax assets | 49,088 | 39,431 |
Long-term investments | 94,589 | 93,745 |
Other assets, net | 117,090 | 37,482 |
Total non-current assets | 2,073,352 | 756,115 |
TOTAL ASSETS | 4,892,943 | 3,228,255 |
Current liabilities: | ||
Current installments of long-term borrowings | 66,234 | 1,666 |
Short-term borrowings | 5,789 | 7,222 |
Accounts payable | 764,844 | 679,553 |
Operating lease liabilities | 191,129 | |
Accrued expenses | 210,235 | 161,781 |
Total current liabilities | 1,238,231 | 850,222 |
Long-term borrowings, excluding current installments | 49,183 | 88,119 |
Long-term operating lease liabilities | 966,011 | |
Deferred tax liabilities | 322 | 451 |
Other long-term liabilities | 103,089 | 100,188 |
Total non-current liabilities | 1,118,605 | 188,758 |
Total liabilities | 2,356,836 | 1,038,980 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 306,669 | 375,017 |
Accumulated other comprehensive loss | (29,993) | (31,488) |
Retained earnings | 2,037,836 | 1,691,276 |
Skechers U.S.A., Inc. equity | 2,314,665 | 2,034,958 |
Non-controlling interests | 221,442 | 154,317 |
Total stockholders' equity | 2,536,107 | 2,189,275 |
TOTAL LIABILITIES AND EQUITY | 4,892,943 | 3,228,255 |
Class A Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | 131 | 129 |
Class B Common Stock [Member] | ||
Stockholders’ equity: | ||
Common Stock | $ 22 | $ 24 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade accounts receivable, allowances | $ 24,106 | $ 25,616 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 500,000,000 | 500,000,000 |
Common Stock, shares issued | 131,071,000 | 129,525,000 |
Common Stock, shares outstanding | 131,071,000 | 129,525,000 |
Class B Common Stock [Member] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 22,408,000 | 23,983,000 |
Common Stock, shares outstanding | 22,408,000 | 23,983,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Sales | $ 5,220,051 | $ 4,642,068 | $ 4,164,160 |
Cost of sales | 2,728,894 | 2,418,463 | 2,225,271 |
Gross profit | 2,491,157 | 2,223,605 | 1,938,889 |
Royalty income | 22,493 | 20,582 | 16,666 |
Operating income | 2,513,650 | 2,244,187 | 1,955,555 |
Operating expenses: | |||
Selling | 369,901 | 350,435 | 327,201 |
General and administrative | 1,625,306 | 1,455,987 | 1,245,474 |
Operating expenses | 1,995,207 | 1,806,422 | 1,572,675 |
Earnings from operations | 518,443 | 437,765 | 382,880 |
Other income / (expense): | |||
Interest income | 11,782 | 10,128 | 2,420 |
Interest expense | (7,509) | (5,847) | (6,677) |
Other, net | (6,711) | (10,162) | 5,637 |
Total other income / (expense) | (2,438) | (5,881) | 1,380 |
Earnings before income tax expense | 516,005 | 431,884 | 384,260 |
Income tax expense | 88,753 | 60,611 | 149,156 |
Net earnings | 427,252 | 371,273 | 235,104 |
Less: Net earnings attributable to non-controlling interests | 80,692 | 70,232 | 55,914 |
Net earnings attributable to Skechers U.S.A., Inc. | $ 346,560 | $ 301,041 | $ 179,190 |
Net earnings per share attributable to Skechers U.S.A., Inc.: | |||
Basic | $ 2.26 | $ 1.93 | $ 1.15 |
Diluted | $ 2.25 | $ 1.92 | $ 1.14 |
Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc.: | |||
Basic | 153,392 | 155,815 | 155,651 |
Diluted | 154,151 | 156,450 | 156,523 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings | $ 427,252 | $ 371,273 | $ 235,104 |
Other comprehensive income: | |||
Gain (loss) on foreign currency translation adjustment | 1,298 | (24,806) | 19,119 |
Comprehensive income | 428,550 | 346,467 | 254,223 |
Less: Comprehensive income attributable to noncontrolling interests | 80,495 | 62,170 | 63,173 |
Comprehensive income attributable to Skechers U.S.A., Inc. | $ 348,055 | $ 284,297 | $ 191,050 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Class A Common Stock [Member] | Class B Common Stock [Member] | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | ADDITIONAL PAID-IN CAPITAL [Member] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Member] | RETAINED EARNINGS [Member] | SKECHERS U.S.A., INC. EQUITY [Member] | NON CONTROLLING INTERESTS [Member] |
Beginning Balance at Dec. 31, 2016 | $ 1,685,514 | $ 130 | $ 24 | $ 419,038 | $ (26,604) | $ 1,211,045 | $ 1,603,633 | $ 81,881 | ||
Beginning Balance, Shares at Dec. 31, 2016 | 130,386,000 | 24,545,000 | ||||||||
Net earnings | 235,104 | 179,190 | 179,190 | 55,914 | ||||||
Foreign currency translation adjustment | 19,119 | 11,860 | 11,860 | 7,259 | ||||||
Contribution from noncontrolling interest of consolidated entity | 46 | 46 | ||||||||
Distribution to noncontrolling interest of consolidated entity | (25,953) | (25,953) | ||||||||
Stock compensation expense | 28,902 | 28,902 | 28,902 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan | 5,479 | 5,479 | 5,479 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 240,000 | |||||||||
Shares issued under the Incentive Award Plan | 2 | (2) | ||||||||
Shares issued under the Incentive Award Plan, Shares | 1,158,000 | |||||||||
Ending Balance at Dec. 31, 2017 | 1,948,211 | 132 | 24 | 453,417 | (14,744) | 1,390,235 | 1,829,064 | 119,147 | ||
Ending Balance, Shares at Dec. 31, 2017 | 131,784,000 | 24,545,000 | ||||||||
Net earnings | 371,273 | 301,041 | 301,041 | 70,232 | ||||||
Foreign currency translation adjustment | (24,806) | (16,744) | (16,744) | (8,062) | ||||||
Distribution to noncontrolling interest of consolidated entity | (27,000) | (27,000) | ||||||||
Stock compensation expense | 30,468 | 30,468 | 30,468 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan | 5,297 | 5,297 | 5,297 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 222,000 | |||||||||
Shares issued under the Incentive Award Plan | 1 | (1) | ||||||||
Shares issued under the Incentive Award Plan, Shares | 1,018,000 | |||||||||
Shares redeemed for employee tax withholdings | (14,191) | (1) | (14,190) | (14,191) | ||||||
Shares redeemed for employee tax withholdings, Shares | (405,000) | |||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 562,000 | (562,000) | ||||||||
Repurchases of common stock | (99,977) | $ (99,977) | (3) | (99,974) | (99,977) | |||||
Repurchase of common stock, Shares | (3,656,277) | |||||||||
Ending Balance at Dec. 31, 2018 | 2,189,275 | 129 | 24 | 375,017 | (31,488) | 1,691,276 | 2,034,958 | 154,317 | ||
Ending Balance, Shares at Dec. 31, 2018 | 129,525,000 | 23,983,000 | ||||||||
Net earnings | 427,252 | 346,560 | 346,560 | 80,692 | ||||||
Foreign currency translation adjustment | 1,298 | 1,495 | 1,495 | (197) | ||||||
Contribution from noncontrolling interest of consolidated entity | 36,934 | 36,934 | ||||||||
Distribution to noncontrolling interest of consolidated entity | (38,675) | (38,675) | ||||||||
Purchase of non-controlling interest | (82,894) | (71,265) | (71,265) | (11,629) | ||||||
Stock compensation expense | 41,076 | 41,076 | 41,076 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan | 6,173 | 6,173 | 6,173 | |||||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 261,000 | |||||||||
Shares issued under the Incentive Award Plan | 1 | (1) | ||||||||
Shares issued under the Incentive Award Plan, Shares | 1,117,000 | |||||||||
Shares redeemed for employee tax withholdings | (14,313) | (14,313) | (14,313) | |||||||
Shares redeemed for employee tax withholdings, Shares | (438,000) | |||||||||
Conversion of Class B Common Stock into Class A Common Stock | 2 | (2) | ||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 1,575,000 | (1,575,000) | ||||||||
Repurchases of common stock | (30,019) | $ (30,019) | (1) | (30,018) | (30,019) | |||||
Repurchase of common stock, Shares | (968,724) | |||||||||
Ending Balance at Dec. 31, 2019 | $ 2,536,107 | $ 131 | $ 22 | $ 306,669 | $ (29,993) | $ 2,037,836 | $ 2,314,665 | $ 221,442 | ||
Ending Balance, Shares at Dec. 31, 2019 | 131,071,000 | 22,408,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net earnings | $ 427,252 | $ 371,273 | $ 235,104 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 111,515 | 109,680 | 96,510 |
Provision for bad debts and returns | 52,456 | 35,730 | 18,398 |
Share based compensation | 41,076 | 30,468 | 28,902 |
Deferred income taxes | (7,568) | (9,767) | (3,947) |
Other items, net | 334 | 550 | (2,187) |
Net foreign currency adjustments | 2,114 | 10,072 | (7,749) |
(Increase) decrease in assets: | |||
Receivables | (118,390) | (136,188) | (102,222) |
Inventories | (171,903) | (7,212) | (158,628) |
Other assets | (69,234) | (30,069) | (18,061) |
Increase (decrease) in liabilities: | |||
Accounts payable | 154,464 | 174,352 | (12,806) |
Other liabilities | 4,436 | 19,663 | 86,023 |
Net cash provided by operating activities | 426,552 | 568,552 | 159,337 |
Cash flows from investing activities: | |||
Capital expenditures | (236,111) | (143,036) | (135,976) |
Acquisitions, net of cash acquired | (100,658) | ||
Proceeds from sale of property, plant and equipment | 5,547 | (214) | |
Purchases of investments | (189,624) | (446,127) | (2,344) |
Proceeds from sales and maturities of investments | 176,773 | 269,749 | 284 |
Net cash used in investing activities | (344,073) | (319,414) | (138,250) |
Cash flows from financing activities: | |||
Net proceeds from the issuances of common stock through employee stock purchase plan | 6,173 | 5,297 | 5,479 |
Repayments on long-term debt | (4,108) | (1,683) | (1,783) |
Proceeds from long-term debt | 33,296 | 18,626 | 5,745 |
Proceeds (payments) on short-term borrowings | (1,433) | (787) | 1,925 |
Payments for taxes related to net share settlement of equity awards | (14,313) | (14,191) | |
Cash used for purchase of India non-controlling interest | (82,894) | ||
Distributions to non-controlling interests of consolidated entity | (38,675) | (27,000) | (25,953) |
Contribution from non-controlling interests of consolidated entity | 46 | ||
Net cash used in financing activities | (131,973) | (119,715) | (14,541) |
Effect of exchange rates on cash and cash equivalents | 2,133 | 6,383 | 11,349 |
Net change in cash and cash equivalents | (47,361) | 135,806 | 17,895 |
Cash and cash equivalents at beginning of the year | 872,237 | 736,431 | 718,536 |
Cash and cash equivalents at end of the year | 824,876 | 872,237 | 736,431 |
Cash paid during the year for: | |||
Interest | 7,140 | 5,568 | 6,392 |
Income taxes, net | 88,753 | 93,041 | $ 56,633 |
Non-cash transactions: | |||
Land and other assets contribution from non-controlling interest | 36,934 | ||
Class A Common Stock [Member] | |||
Cash flows from financing activities: | |||
Repurchase of Class A Common Stock | $ (30,019) | $ (99,977) |
The Company and Summary Of Sign
The Company and Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company and Summary Of Significant Accounting Policies | (1) THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) The Company and Basis of Presentation Skechers U.S.A., Inc. and subsidiaries (the “Company”) designs, develops, markets and distributes footwear. The Company operates 497 domestic and 303 international retail stores and direct-to-consumer business as of December 31, 2019. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the consolidated financial statements in prior years to conform to the current year presentation. (b) Use of Estimates The Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States. Significant areas requiring the use of estimates relate primarily to revenue recognition, allowance for bad debts, returns, sales allowances and customer chargebacks, inventory write-downs, valuation of intangibles and long-lived assets, goodwill, litigation reserves and valuation of deferred income taxes. Actual results could differ materially from those estimates. (c) Revenue Recognition In accordance with Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers are accounted for as a fulfillment cost and not as a separate performance obligation. The Company records accounts receivable at the time of shipment when the Company’s right to the consideration becomes unconditional. The Company typically extends credit terms to its wholesale customers based on their creditworthiness and generally does not receive advance payments. Generally, wholesale customers do not have the right to return goods, however, the Company periodically decides to accept returns or provide customers with credits. Allowances for estimated returns, discounts, doubtful accounts and chargebacks are provided for when related revenue is recorded. Retail and direct-to-consumer sales represent amounts due from credit card companies and are generally collected within a few days of the purchase. As such, the Company has determined that an allowance for doubtful accounts for retail and direct-to-consumer sales is not necessary. The Company earns royalty income from its licensing arrangements, which qualify as symbolic licenses rather than functional licenses. Upon signing a new licensing agreement, the Company receives up-front fees, which are generally characterized as prepaid royalties. These fees are initially deferred and recognized as revenue is earned (i.e., as licensed sales are reported to the Company or on a straight-line basis over the term of the agreement). The Company applies the sales-based royalty exception for the royalty income based on sales and recognizes revenue only when subsequent sales occur. The Company calculates and accrues estimated royalties based on the agreement terms and correspondence with the licensees regarding actual sales. Judgments The Company considered several factors in determining that control transfers to the customer upon shipment of products. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership at the time of shipment. The Company accrues a liability for product returns at the time of sale based on historical experience. The Company also accrues amounts for goods expected to be returned in salable condition. As of December 31, 2019, and December 31, 2018, the Company’s sales returns liability totaled $86.5 million and $67.3 million, respectively, and was included in accrued expenses in the consolidated balance sheets. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic revenue recognition methodology under ASC 605, Revenue Recognition (d) Business Combinations Business acquisitions are accounted for under the acquisition method by assigning the purchase price to tangible and intangible assets acquired and liabilities assumed. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Purchased intangible assets with finite lives are amortized over their estimated useful lives. Goodwill and intangible assets with indefinite lives are not amortized but are tested at least annually for impairment or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value determinations require judgment and may involve the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives, and market multiples, among other items. The purchase price allocation is subject to adjustment until the Company has completed its analysis within the measurement period. In the second quarter of 2019, the Company purchased a 60% interest in Manhattan SKMX, de R.L. de C.V. (“Skechers Mexico”), for a total cash consideration of $100.7 million, net of cash acquired. Skechers Mexico is a joint venture that operates and generates sales in Mexico. As a result of this purchase, Skechers Mexico became a majority-owned subsidiary and the results are consolidated in the consolidated financial statements. The Company is in the final process of completing the purchase price allocation, which will be completed by April 1, 2020. However, the finalization may result in changes in the assets acquired and tax-related items. Pro forma results of operations have not been presented because the effects of the acquisition, individually and in the aggregate, were not material to the Company’s consolidated financial statements. ( e ) Business Segment Information The Company’s operations and segments are organized along its distribution channels and consist of the following: domestic wholesale, international wholesale, and direct-to-consumer sales. Information regarding these segments is summarized in Note 20 – Segment and Geographic Reporting. ( f ) 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”)’s under Accounting Standards Codification (“ASC”) 810-10-15-14. The Company’s determination of the primary beneficiary of a VIE considers all relationships between the Company and the VIE, including management agreements, governance documents and other contractual arrangements. The Company has determined that it is the primary beneficiary for these VIE’s because the Company has both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance; and (b) the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity, or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Accordingly, the Company includes the assets and liabilities and results of operations of these entities in its consolidated financial statements, even though the Company may not hold a majority equity interest. There have been no changes during 2019 in the accounting treatment or characterization of any previously identified VIE. The Company continues to reassess these relationships quarterly. The assets of these joint ventures are restricted in that they are not available for general business use outside the context of such joint ventures. The holders of the liabilities of each joint venture have no recourse to the Company. The Company does not have a variable interest in any unconsolidated VIEs. ( g ) Fair Value of Financial Instruments The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: • Level 1 – Quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 non-derivative investments primarily include money market funds and U.S. Treasury securities. • Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s Level 2 non-derivative investments primarily include corporate notes and bonds, asset-backed securities, U.S. Agency securities, and actively traded mutual funds. The Company has one Level 2 derivative which is an interest rate swap related to the refinancing of its domestic distribution center (see below). • Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The Company currently does not have any Level 3 assets or liabilities. The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, short-term investments, accounts receivable, long-term investments, accounts payable and accrued expenses approximates fair value because of the relatively short maturity of such instruments. The carrying amount of the Company’s short-term and long-term borrowings, which are considered Level 2 liabilities, approximates fair value based upon current rates and terms available to the Company for similar debt. As of August 12, 2015, the Company entered into an interest rate swap agreement concurrent with refinancing its domestic distribution center construction loan (see Note 8 - Derivative Instruments). The fair value of the interest rate swap was determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipt was based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with U.S. GAAP, credit valuation adjustments were incorporated to appropriately reflect both the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The majority of the inputs used to value the interest rate swap were within Level 2 of the fair value hierarchy. As of December 31, 2019, the interest rate swap was a Level 2 derivative and was classified as other long-term liabilities in the Company’s consolidated balance sheets. ( h ) Cash and Cash Equivalents Cash and cash equivalents include deposits with initial terms of less than three months. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. ( i ) Investments In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments consist of U.S. Treasury Bonds, U.S. Agency securities, corporate notes and bonds, asset-backed securities and actively traded mutual funds. ( j ) Allowance for Bad Debts, Returns, Sales Allowances and Customer Chargebacks The Company provides a reserve, charged against revenue and its receivables, for estimated losses that may result from its customers’ inability to pay. To minimize the likelihood of uncollectability, customers’ credit-worthiness is reviewed and adjusted periodically in accordance with external credit reporting services, financial statements issued by the customer and the Company’s experience with the account. When a customer’s account becomes significantly past due, the Company generally places a hold on the account and discontinues further shipments to that customer, minimizing further risk of loss. The Company determines the amount of the reserve by analyzing known uncollectible accounts, aged receivables, economic conditions in the customers’ countries or industries, historical losses and its customers’ credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged against this reserve. Allowance for returns, sales allowances and The Company also reserves for potential disputed amounts or chargebacks from its customers. The Company’s chargeback reserve is based on a collectability percentage calculated using factors such as historical trends, current economic conditions, and nature of the chargeback receivables. The Company also reserves for potential sales returns and allowances based on historical trends. The likelihood of a material loss on an uncollectible account would be mainly dependent on deterioration in the overall economic conditions in a particular country or environment. Reserves are fully provided for all probable losses of this nature. For receivables that are not specifically identified as high-risk, the Company provides a reserve based upon its historical loss rate as a percentage of sales. ( k ) Inventories Inventories, principally finished goods, are stated at the lower of cost (based on the first-in, first-out method) or market (net realizable value). Cost includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. The Company provides for estimated losses from obsolete or slow-moving inventories, and writes down the cost of inventory at the time such determinations are made. Reserves are estimated based on inventory on hand, historical sales activity, industry trends, the retail environment, and the expected net realizable value. The net realizable value is determined using estimated sales prices of similar inventory through off-price or discount store channels. ( l ) Property, Plant and Equipment Depreciation and amortization of property, plant and equipment is computed using the straight-line method, which based on the following estimated useful lives: Buildings 20 years Building improvements 10 years Furniture, fixtures and equipment 5 to 20 years Leasehold improvements Useful life or remaining lease term, whichever is shorter Property, plant and equipment subject to depreciation and amortization is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The Company reviews both quantitative and qualitative factors to assess whether a triggering event occurred. The Company reviews all stores for impairment annually or more frequently if events or changes in circumstances require it. The Company prepares a summary of store cash flows from its retail stores to assess potential impairment of the fixed assets, leasehold improvements, and operating lease right-of-use assets. Stores with negative cash flows which have been open in excess of 24 months are then reviewed in detail to determine whether impairment exists. Recoverability of assets or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. The Company did not record impairment charges during the years ended December 31, 2019, 2018 or 2017. (m) Goodwill Goodwill is assigned to reporting units. Goodwill is not amortized, but the Company assesses goodwill for impairment annually or more frequently if events or changes in circumstances require it. First, the Company determines if, based on qualitative factors, it is more likely than not that an impairment exists. Factors considered include historical financial performance, macroeconomic and industry conditions and the legal and regulatory environment. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. The quantitative assessment involves calculating an estimated fair value of each reporting unit based on projected future cash flows and comparing the estimated fair values of the reporting units to their carrying amounts, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying value, including goodwill, no impairment is recognized. However, if the carrying amount of a reporting unit, including goodwill, exceeds its fair value, an impairment loss is recognized in an amount equal to the excess, limited to the total goodwill balance of the reporting unit. The quantitative assessment requires an analysis of several best estimates and assumptions, including future sales and operating results, and other factors that could affect fair value or otherwise indicate potential impairment. The Company also considers the reporting units’ projected ability to generate income from operations and positive cash flow in future periods, as well as perceived changes in consumer demand and acceptance of products, or factors impacting the industry generally. The fair value assessment could change materially if different estimates and assumptions were used. ( n ) Income Taxes The Company accounts for income taxes in accordance with ASC 740-10, which requires that the Company recognize deferred tax liabilities for taxable temporary differences and deferred tax assets for deductible temporary differences and operating loss carry‑forwards using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit or expense is recognized as a result of changes in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all of any deferred tax assets will not be realized. ( o ) Foreign Currency Translation In accordance with ASC 830-30, ( p ) Comprehensive Income Comprehensive income is presented in the consolidated statements of comprehensive income. Comprehensive income consists of net earnings, foreign currency translation adjustments, and income attributable to non-controlling interests. ( q ) Advertising Costs Advertising costs are expensed in the period in which the advertisements are first run, or over the life of the endorsement contract. Advertising expense for the years ended December 31, 2019, 2018 and 2017 was approximately $297.1 million, $278.4 million and $260.4 million, respectively. Prepaid advertising costs were $6.4 million and $4.4 million at December 31, 2019 and 2018, respectively. Prepaid amounts outstanding at December 31, 2019 and 2018 represent the unamortized portion of endorsement contracts, advertising in trade publications and media productions created, but not run, as of December 31, 2019 and 2018, respectively. ( r ) Product Design and Development Costs The Company charges all product design and development costs to general and administrative expenses, when incurred. Product design and development costs aggregated approximately $16.8 million, $18.5 million, and $18.8 million during the years ended December 31, 2019, 2018 and 2017, respectively. ( s ) Warehouse and Distribution Costs The Company’s distribution network-related costs are included in general and administrative expenses and are not allocated to specific segments. The expenses related to its distribution network, including the functions of purchasing, receiving, inspecting, allocating, warehousing and packaging of its products totaled $276.4 million, $249.6 million and $219.6 million for 2019, 2018 and 2017, respectively. ( t ) Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02 “ Leases (Topic 842) identification, lease classification and initial direct costs. The Company did not recognize any adjustment to opening balance of retained earnings. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument,” In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” In August 2018, the FASB issued ASU No. 2018-15 “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract,” In December 2019, the FASB issued ASU no. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, |
Cash, Cash Equivalents, Short-T
Cash, Cash Equivalents, Short-Term And Long-Term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Cash Cash Equivalents And Short Term And Long Term Investments [Abstract] | |
Cash, Cash Equivalents, Short-Term and Long-Term Investments | (2) CASH, CASH EQUIVALENTS, SHORT-TERM AND LONG-TERM INVESTMENTS The Company’s investments consists of mutual funds held in the Company’s deferred compensation plan and classified as trading securities, U.S. Treasury securities, corporate notes and bonds and U.S. Agency securities, that the Company has the intent and ability to hold to maturity and therefore, are classified as held-to-maturity. December 31, 2019 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 662,355 $ - $ - $ 662,355 $ 662,355 $ - $ - Level 1: Money market funds 162,521 - - 162,521 162,521 - - U.S. Treasury securities 9,686 - - 9,686 - 1,679 8,007 Total level 1 172,207 - - 172,207 162,521 1,679 8,007 Level 2: - - - Corporate notes and bonds 132,431 - - 132,431 - 104,130 28,301 Asset-backed securities 23,614 - - 23,614 - 263 23,351 U.S. Agency securities 12,352 - - 12,352 - 5,965 6,387 Mutual funds 28,543 - - 28,543 - - 28,543 Total level 2 196,940 - - 196,940 - 110,358 86,582 TOTAL $ 1,031,502 $ - $ - $ 1,031,502 $ 824,876 $ 112,037 $ 94,589 December 31, 2018 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 713,624 $ - $ - $ 713,624 $ 713,624 $ - $ - Level 1: Money market funds 158,613 - - 158,613 158,613 - - U.S. Treasury securities 6,955 - - 6,955 - 4,979 1,976 Total level 1 165,568 - - 165,568 158,613 4,979 1,976 Level 2: - - - Corporate notes and bonds 132,280 - - 132,280 - 88,412 43,868 Asset-backed securities 23,310 - - 23,310 - 2,115 21,195 U.S. Agency securities 10,272 - - 10,272 - 4,523 5,749 Mutual funds 20,957 - - 20,957 - - 20,957 Total level 2 186,819 - - 186,819 - 95,050 91,769 TOTAL $ 1,066,011 $ - $ - $ 1,066,011 $ 872,237 $ 100,029 $ 93,745 The Company may sell certain of its investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s long-term investments are typically less than two years. The Company considers declines in market value of its marketable securities investment portfolio to be temporary in nature. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy generally requires investments to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates and the Company’s intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s cost basis. As of December 31, 2019, the Company does not consider any of its investments to be other-than-temporarily impaired. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | (3) LEASES The Company determines if an arrangement is a lease at inception, and, if a lease, what type of lease it is. The Company regularly enters into non-cancellable operating leases for automobiles, retail stores, and real estate leases for offices, showrooms and distribution facilities. Most leases have fixed rental payments. Leases for retail stores typically have initial terms ranging from 5 to 10 years The future minimum obligations under operating leases in effect as of December 31, 2019 having a noncancelable term in excess of one year as determined prior to the adoption of ASU 842 are as follows (in thousands): December 31, 2019 2020 $ 236,604 2021 211,466 2022 182,833 2023 164,467 2024 152,823 Thereafter 439,766 Total lease payments 1,387,959 Less: Imputed interest (230,819 ) $ 1,157,140 Operating lease cost and other information (in thousands): Year ended December 31, 2019 Fixed lease cost $ 246,296 Variable lease cost 13,104 Operating cash flows used for leases 264,424 Noncash right-of-use assets recorded for lease liabilities: For January 1 adoption of Topic 842 1,035,062 In exchange for new lease liabilities during the period 122,078 Weighted-average remaining lease term 4.66 years Weighted-average discount rate 4.20% As of December 31, 2019, the Company has additional operating leases, primarily for new retail stores, that have not yet commenced which will generate additional right-of-use assets of $30.8 million. These operating leases will commence in 2020 with lease terms ranging from 1 year to 10 years. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | (4) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at December 31, 2019 and 2018 is summarized as follows (in thousands): 2019 2018 Land $ 90,862 $ 83,163 Buildings and improvements 349,066 246,893 Furniture, fixtures and equipment 454,837 374,706 Leasehold improvements 453,805 401,514 Total property, plant and equipment 1,348,570 1,106,276 Less accumulated depreciation and amortization 609,645 520,819 Property, plant and equipment, net $ 738,925 $ 585,457 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | ( 5 ) ACCRUED EXPENSES Accrued expenses at December 31, 2019 and 2018 are summarized as follows (in thousands): 2019 2018 Accrued inventory purchases $ 48,923 $ 40,493 Accrued payroll and taxes 92,264 72,822 Return reserve liability 69,048 48,466 Accrued expenses $ 210,235 $ 161,781 |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Line of Credit | ( 6 ) LINE OF CREDIT On November 21, 2019, the Company entered into a $500.0 million senior unsecured revolving credit facility, which matures on November 21, 2024 (the “2019 Credit Agreement”), with Bank of America, N.A., as administrative agent and joint lead arranger, HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A., as joint lead arrangers, and other lenders. The 2019 Credit Agreement replaced the Company’s then existing $250.0 million loan and security agreement dated June 30, 2015 with Bank of America, N.A., MUFG Union Bank, N.A. and HSBC Bank USA, National Association that was set to expire on June 30, 2020. The 2019 Credit Agreement may be increased by up to $250.0 million under certain conditions and provides for the issuance of letters of credit up to a maximum of $100.0 million and swingline loans up to a maximum of $25.0 million. The Company may use the proceeds from the 2019 Credit Agreement for working capital and other lawful corporate purposes. At the Company’s option, any loan (other than swingline loans) will bear interest at a rate equal to (a) LIBOR plus an applicable margin between 1.125% and 1.625% based upon the Company’s Total Adjusted Net Leverage Ratio (as defined in the 2019 Credit Agreement) or (b) a base rate (defined as the highest of (i) the Federal Funds Rate plus 0.50%, (ii) the Bank of America prime rate and (iii) LIBOR plus 1.00%) plus an applicable margin between 0.125% and 0.625% based upon the Company’s Total Adjusted Net Leverage Ratio. Any swingline loan will bear interest at the base rate. The Company will pay a variable commitment fee of between 0.125% and 0.25% of the actual daily unused amount of each lender’s commitment, and will also pay a variable letter of credit fee of between 1.125% and 1.625% on the maximum amount available to be drawn under each issued and outstanding letter of credit, both of which are based upon the Company’s Total Adjusted Net Leverage Ratio. The 2019 Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including covenants that limit the ability of the Company and its subsidiaries to, among other things, incur debt, grant liens, make certain acquisitions, dispose of assets, effect a change of control of the Company, make certain restricted payments including certain dividends and stock redemptions, make certain investments or loans, enter into certain transactions with affiliates and certain prohibited uses of proceeds. The 2019 Credit Agreement also requires that the total adjusted net leverage ratio not exceed 3.75, except in the event of an acquisition in which case the ratio may be increased at the Company’s election to 4.25 for the quarter in which such acquisition occurs and for the next three quarters thereafter. The 2019 Credit Agreement provides for customary events of default including payment defaults, breaches of representations or warranties or covenants, cross defaults with certain other indebtedness to third parties, certain judgments/awards/orders, a change of control, bankruptcy and insolvency events, inability to pay debts, ERISA defaults, and invalidity or impairment of the 2019 Credit Agreement or any loan documentation related thereto, with, in certain circumstances, cure periods. Certain of the lenders party to the 2019 Credit Agreement, and their respective affiliates, have performed, and may in the future perform for the Company and the Company’s subsidiaries, various commercial banking, investment banking, underwriting and other financial advisory services, for which they have received, and will receive, customary fees and expenses. The Company paid origination, arrangement and legal fees of $1.6 million on the 2019 Credit Agreement, which are being amortized to interest expense over the five-year life of the facility. As of December 31, 2019 |
Short and Long-term Borrowings
Short and Long-term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short and Long Term Borrowings | ( 7 ) SHORT AND LONG-TERM BORROWINGS Long-term borrowings at December 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Note payable to banks, due in monthly installments of $348 (includes principal and interest), variable-rate interest at 5.24% per annum, secured by property, balloon payment of $62,843 due August 2020 $ 63,692 $ 65,148 Note payable to Luen Thai Enterprise, Ltd., balloon payment of $393 due January 2021 393 5,800 Note payable to TCF Equipment Finance, Inc., due in monthly installments of $30 (includes principal and interest), fixed- rate interest at 5.24% per annum, paid in July 2019 — 210 Loan payable to a bank, variable-rate interest at 4.275% per annum, due September 2023 48,791 18,626 Loan payable to a bank, variable-rate interest at 3.915% per annum, due October 2020 2,541 — Subtotal 115,417 89,785 Less: current installments 66,234 1,666 Total long-term borrowings $ 49,183 $ 88,119 The aggregate maturities of long-term borrowings at December 31, 2019 are as follows (in thousands): 2020 $ 63,692 2021 3,290 2022 36,848 2023 11,587 2024 — $ 115,417 On September 29, 2018, through the Taicang subsidiary, the Company entered into a 700 million yuan loan agreement with China Construction Bank Corporation (the “China DC Loan Agreement”). The proceeds from the China DC Loan Agreement is being used to finance the construction of the Company’s distribution center in China. Interest will be paid quarterly. The interest rate will float and be calculated at a reference rate provided by the People’s Bank of China. The interest rate at December 31, 2019 was 4.275% and may increase or decrease over the life of the loan, and will be evaluated every 12 months. The principal of the loan will be repaid in semi-annual installments, beginning in 2021, of variable amounts as specified in the China DC Loan Agreement. The China DC Loan Agreement contains customary affirmative and negative covenants for secured credit facilities of this type, including covenants that limit the ability of the Subsidiary to, among other things, allow external investment to be added, pledge assets, issue debt with priority over the China DC Loan Agreement, and adjust the capital stock structure of the TC Subsidiary. The China DC Loan Agreement matures on September 28, 2023. The obligations of the TC Subsidiary under the China DC Loan Agreement are jointly and severally guaranteed by the Company’s Chinese joint venture. As of December 31, 2019, there was $48.8 million On April 30, 2010, HF Logistics-SKX, LLC (the “JV”) , - As of the date of the Amended Loan Agreement, the outstanding principal balance of the Original Loan was $77.3 million. In connection with this refinancing of the Original Loan, the JV, the Company and HF Logistics (“HF”) agreed that the Company would make an additional capital contribution of $38.7 million to the JV, through HF-T1, to make a payment on the Original Loan based on the Company’s 50 % equity interest in the JV. The payment equaled the Company’s 50% share of the outstanding principal balance of the Original Loan. Under the Amended Loan Agreement, the parties agreed that the lenders would loan $ 70.0 million to HF-T1 (the “New Loan”). The New Loan is being used by the JV, through HF-T1, to (i) refinance all amounts owed on the Original Loan after taking into account the payment described above, (ii) pay $ 0.9 million in accrued interest, loan fees and other closing costs associated with the New Loan and (iii) make a distribution of $ 31.3 million less the amounts described in clause (ii) to HF. Pursuant to the Amended Loan Agreement, the interest rate on the New Loan is the LIBOR Daily Floating Rate (as defined in the Amended Loan Agreement) plus a margin of 2 %. The maturity date of the New Loan is August 12, 2020 , which HF-T1 has one option to extend by an additional 24 months, or until August 12, 2022, upon payment of a fee and satisfaction of certain customary conditions. On August 11, 2015, HF-T1 and Bank of America, N.A. entered into an ISDA master agreement (together with the schedule related thereto, the “Swap Agreement”) to govern derivative and/or hedging transactions that HF-T1 concurrently entered into with Bank of America, N.A. Pursuant to the Swap Agreement, on August 14, 2015 , HF-T1 entered into a confirmation of swap transactions (the “Interest Rate Swap”) with Bank of America, N.A. The Interest Rate Swap has an effective date of August 12, 2015 and a maturity date of August 12, 2022 , subject to early termination at the option of HF-T1, commencing on August 1, 2020 . The Interest Rate Swap fixes the effective interest rate on the New Loan at 4.08 % per annum. Pursuant to the terms of the JV, HF Logistics is responsible for the related interest expense on the New Loan, and any amounts related to the Swap Agreement. The full amount of interest expense paid related to the New Loan has been included in non-controlling interests in the consolidated balance sheets. The Amended Loan Agreement and the Swap Agreement are subject to customary covenants and events of default. Bank of America, N.A. also acts as a lender and syndication agent under the 2015 Credit Agreement dated June 30, 2015. As of December 31, 2019 , there was $ million outstanding under the Amended Loan Agreement, which is included in current installments of long-term borrowings . The Company’s short-term and long-term debt obligations contain both financial and non-financial covenants, including cross-default provisions. The Company is in compliance with its non-financial covenants, including any cross default provisions, and financial covenants of its short-term and long-term borrowings as of December 31, 2019. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | ( 8 ) 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 used an interest rate swap as part of its interest rate risk management strategy. The Company’s 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. On August 12, 2015, in connection with refinancing its domestic distribution center loan, described in Note 7 above, the Company entered into a variable-to-fixed interest rate swap agreement with Bank of America, N.A., to hedge the cash flows on the Company’s $70.0 million variable rate debt. As of December 31, 2019, the swap agreement has an aggregate notional amount of $63.7 million and a maturity date of August 12, 2022, subject to early termination commencing on August 1, 2020 at the option of HF Logistics-SKX T1, LLC (“HF-T1”), a wholly-owned subsidiary of the Company’s joint venture HF Logistics-SKX, LLC (the “JV”). Under the terms of the swap agreement, the Company will pay a weighted-average fixed rate of 2.08% on the $63.7 million notional amount and receive payments from the counterparty based on the 30-day LIBOR rate. The rate swap agreement utilized by the Company effectively modifies its exposure to interest rate risk by converting the Company’s floating-rate debt to a fixed-rate of 4.08% for the life of the loan thus reducing the impact of interest-rate changes on future interest expense. Pursuant to the terms of the JV, HF Logistics is responsible for any amounts related to the Swap Agreement. 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 December 31, 2019, all counterparties to the interest rate swap had performed in accordance with their contractual obligations. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Long Term Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | ( 9 ) OTHER LONG-TERM LIABILITIES Other long-term liabilities at December 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Other long term liabilities $ 30,675 $ 21,458 Income taxes payable 72,414 78,730 $ 103,089 $ 100,188 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | ( 10 ) COMMITMENTS AND CONTINGENCIES ( a ) Product and Other Financing The Company finances production activities in part through the use of interest-bearing open purchase arrangements with certain of its international manufacturers. These arrangements currently bear interest at rates between 0.0% and 0.5% for 30- to 60-day financing. The amounts outstanding under these arrangements at December 31, 2019 and 2018 were $214.7 million and $180.5 million, respectively, which are included in accounts payable in the accompanying consolidated balance sheets. Interest expense incurred by the Company under these arrangements amounted to $7.9 million in 2019, $3.3 million in 2018, and $4.8 million in 2017. The Company has open purchase commitments with its foreign manufacturers at December 31, 2019 of $1,071.9 million, which are not included in the accompanying 2019 consolidated balance sheets. ( b ) Litigation The Company recognizes legal expense in connection with loss contingencies as incurred. In accordance with U.S. GAAP, the Company records a liability in its 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 consolidated financial statements as of December 31, 2019, nor is it possible to estimate what litigation-related costs will be in the future; however, the Company believes that the likelihood that claims related to litigation would result in a material loss to the Company, either individually or in the aggregate, is remote. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | (1 1 ) STOCKHOLDERS’ EQUITY The authorized capital stock of the Company consists of 500 million shares of Class A Common Stock, par value $0.001 per share (“Class A Common Stock”), 75 million shares of Class B Common Stock, par value $0.001 per share (“Class B Common Stock”), and 10 million shares of preferred stock, par value $0.001 per share. During 2019 and 2018, certain Class B stockholders converted 1,575,509 and 561,876 shares, respectively, of Class B Common Stock to Class A Common Stock. During 2017, no Class B Common Stock was converted to Class A Common Stock. (see Note 14 - Earnings Per Share). |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | (1 2 ) NONCONTROLLING INTERESTS The following VIEs are consolidated into the Company’s consolidated financial statements and the carrying amounts and classification of assets and liabilities were as follows (in thousands): HF Logistics (1) December 31, 2019 December 31, 2018 Current assets $ 5,297 $ 2,121 Non-current assets 104,527 98,148 Total assets $ 109,824 $ 100,269 Current liabilities $ 64,600 $ 2,738 Non-current liabilities 1,009 64,702 Total liabilities $ 65,609 $ 67,440 Product distribution joint ventures December 31, 2019 (2) December 31, 2018 (3) Current assets $ 747,668 $ 540,768 Non-current assets 325,283 128,250 Total assets $ 1,072,951 $ 669,018 Current liabilities $ 430,282 $ 294,640 Non-current liabilities 135,903 26,444 Total liabilities $ 566,185 $ 321,084 (1) Includes HF Logistics-SKX, LLC and HF Logistics-SKX, T2, LLC. (2) Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, and Manhattan SKMX, S. de R.L. de C.V. (Mexico). ( 3 ) Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, Skechers Retail India Private Limited, and Skechers South Asia Private Limited. The following is a summary of net earnings attributable to, distributions to and contributions from non-controlling interests (in thousands): Year Ended December 31, 2019 2018 2017 Net earnings attributable to non-controlling interests $ 80,692 $ 70,232 $ 55,914 Distributions to: HF Logistics-SKX, LLC 3,784 4,374 3,787 Skechers China Limited 32,245 19,915 20,620 Skechers Southeast Asia Limited 2,028 2,025 1,347 Skechers Hong Kong Limited 618 618 199 India distribution joint ventures — 68 — Contributions from: Skechers Korea Co., Ltd. 6,594 — — Skechers Footwear Ltd. (Israel) — — 46 HF Logistics-SKX, LLC 7,565 — — Manhattan SKMX, S. de R.L. de C.V. 22,776 — — |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | (1 3 ) SHARE REPURCHASE PROGRAM On February 6, 2018, the Company’s Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which the Company may, from time to time, purchase shares of its Class A Common Stock, for an aggregate repurchase price not to exceed $150.0 million. The Share Repurchase Program expires on February 6, 2021. Share repurchases may be executed through various means, including, without limitation, open market transactions, privately negotiated transactions or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Exchange Act, subject to market conditions, applicable legal requirements and other relevant factors. The Share Repurchase Program does not obligate the Company to acquire any particular amount of shares of Class A Common Stock and the program may be suspended or discontinued at any time. The following table provides a summary of the Company’s Class A Common Stock repurchase activities during the years ended December 31, 2019 and 2018, respectively: Year Ended December 31, 2019 Year Ended December 31, 2018 Shares repurchased 968,724 3,656,277 Average cost per share $ 30.99 $ 27.34 Total cost of shares repurchased (in thousands): $ 30,019 $ 99,977 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (1 4 ) EARNINGS PER SHARE Basic earnings per share represents net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share, in addition to the weighted average determined for basic earnings per share, includes potential dilutive common shares using the treasury stock method. The Company has two classes of issued and outstanding common stock: Class A Common Stock and Class B Common Stock. Holders of Class A Common Stock and holders of Class B Common Stock have substantially identical rights, including rights with respect to any declared dividends or distributions of cash or property, and the right to receive proceeds on liquidation or dissolution of the Company after payment of the Company’s indebtedness. The two classes have different voting rights, with holders of Class A Common Stock entitled to one vote per share while holders of Class B Common Stock are entitled to ten votes per share on all matters submitted to a vote of stockholders. The Company uses the two-class method for calculating net earnings per share. Basic and diluted net earnings per share of Class A Common Stock and Class B Common Stock are identical. The shares of Class B Common Stock are convertible at any time at the option of the holder into shares of Class A Common Stock on a share-for-share basis. In addition, shares of Class B Common Stock will be automatically converted into a like number of shares of Class A Common Stock upon transfer to any person or entity who is not a permitted transferee. The following is a reconciliation of net earnings and weighted average common shares outstanding for purposes of calculating earnings per share (in thousands): Basic earnings per share 2019 2018 2017 Net earnings attributable to Skechers U.S.A., Inc. $ 346,560 $ 301,041 $ 179,190 Weighted average common shares outstanding 153,392 155,815 155,651 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 2.26 $ 1.93 $ 1.15 Diluted earnings per share 2019 2018 2017 Net earnings attributable to Skechers U.S.A., Inc. $ 346,560 $ 301,041 $ 179,190 Weighted average common shares outstanding 153,392 155,815 155,651 Dilutive effect of nonvested shares 759 635 872 Weighted average common shares outstanding 154,151 156,450 156,523 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 2.25 $ 1.92 $ 1.14 There were 10,838, 352,169, and 116,762 shares excluded from the computation of diluted earnings per share for the year ended December 31, 2019, 2018, and 2017, respectively, because they are anti-dilutive. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation | (1 5 ) STOCK COMPENSATION (a) Incentive Award Plan On April 16, 2007, the Company’s Board of Directors adopted the 2007 Incentive Award Plan (the “2007 Plan”), which became effective upon approval by the Company’s stockholders on May 24, 2007 and expired pursuant to its terms on May 24, 2017. On April 17, 2017, the Company’s Board of Directors adopted the 2017 Incentive Award Plan (the “2017 Plan”), which became effective upon approval by the Company’s stockholders on May 23, 2017. The 2017 Plan replaced and superseded in its entirety the 2007 Plan. A total of 10,000,000 shares of Class A Common Stock were reserved for issuance under the 2017 Plan, which provides for grants of ISOs, non-qualified stock options, restricted stock and various other types of equity awards as described in the plan to the employees, consultants and directors of the Company and its subsidiaries. The 2017 Plan is administered by the Company’s Board of Directors with respect to awards to non-employee directors and by the Company’s Compensation Committee with respect to other eligible participants. A summary of the status and changes of nonvested shares related to the 2007 Plan and the 2017 Plan, as of and for the year ended December 31, 2019 is presented below: SHARES WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE Nonvested at January 1, 2017 3,043,164 $ 24.57 Granted 495,600 24.69 Vested/Released (1,157,207 ) 20.73 Cancelled (78,000 ) 32.62 Nonvested at December 31, 2017 2,303,557 26.25 Granted 1,811,000 38.05 Vested/Released (1,018,283 ) 21.91 Cancelled (127,333 ) 29.71 Nonvested at December 31, 2018 2,968,941 34.79 Granted 1,603,000 28.45 Vested/Released (1,116,868 ) 32.46 Cancelled (28,250 ) 39.40 Nonvested at December 31, 2019 3,426,823 32.55 As of December 31, 2019, a total of 6,515,750 shares remain available for grant as equity awards under the 2017 Plan. The Company recognized in the consolidated statements of earnings compensation expense of $41.1 million, $30.5 million and $28.9 million for grants under its stock compensation plans for the years ended December 31, 2019, 2018, and 2017, respectively. Related excess income tax benefits of $0.3 million, $1.6 million, and $2.6 million was recorded in the statement of earnings for the years ended December 31, 2019, 2018 and 2017, respectively. Nonvested shares generally vest over a graded vesting schedule from one to four years from the date of grant. There was $81.3 million of unrecognized compensation cost related to nonvested common shares as of December 31, 2019, which is expected to be recognized over a weighted average period of 2.1 years. The total fair value of shares vested during the years ended December 31, 2019 and 2018 was $36.3 million and $22.3 million, respectively. (b) Stock Purchase Plan On April 17, 2017, the Company’s Board of Directors adopted the 2018 Employee Stock Purchase Plan (the “2018 ESPP”), which the Company’s stockholders approved on May 23, 2017. The 2018 ESPP replaced the Company’s previous employee stock purchase plan, the Skechers U.S.A., Inc. 2008 Employee Stock Purchase Plan (the “2008 ESPP”), which expired pursuant to its terms on January 1, 2018. The 2018 Employee Stock Purchase Plan provides eligible employees of the Company and its subsidiaries with the opportunity to purchase shares of the Company’s Class A Common Stock at a purchase price equal to 85% of the Class A Common Stock’s fair market value on the first trading day or last trading day of each purchase period, whichever is lower. The 2018 ESPP generally provides for two six-month purchase periods every twelve months: June 1 through November 30 and December 1 through May 31, except that the initial purchase period under the 2018 ESPP had a duration of five months, commencing on January 1, 2018 and ending on May 31, 2018. Eligible employees participating in the 2018 ESPP for a purchase period will be able to invest up to 15% of their compensation through payroll deductions during each purchase period. A total of 5,000,000 shares of Class A Common Stock are available for sale under the 2018 ESPP. During 2019, 2018 and 2017, 260,630 shares, 221,889 shares and 240,000 shares were issued under the 2018 ESPP and 2008 ESPP for which the Company received approximately $6.2 million, $5.3 million and $5.5 million, respectively. The purchase price discount and the look-back feature cause the 2018 ESPP to be compensatory and the Company recognizes compensation expense, which is computed using Black-Scholes options pricing model. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 1 6 ) INCOME TAXES The provisions for income tax expense were as follows (in thousands): 2019 2018 2017 Federal: Current $ 22,899 $ 11,379 $ 110,448 Deferred (3,583 ) (3,971 ) 3,768 Total federal 19,316 7,408 114,216 State: Current 6,384 5,408 2,747 Deferred (813 ) (1,316 ) (3,356 ) Total state 5,571 4,092 (609 ) Foreign: Current 66,656 53,071 40,147 Deferred (2,790 ) (3,960 ) (4,598 ) Total foreign 63,866 49,111 35,549 Total income taxes (benefit) $ 88,753 $ 60,611 $ 149,156 Due to the enactment of Tax Cuts and Jobs Act (the “Tax Act”) in December 2017, the Company is subject to a tax on global intangible low-taxed income (“GILTI”). GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences including outside basis differences expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost, and therefore has included GILTI expense in its effective tax rate calculation for the period. The SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under Accounting Standards Codification 740 (“ASC 740”). In connection with its initial analysis of the impact of the Tax Act, the Company recorded a provisional one-time net tax expense of $99.9 million for the year ended December 31, 2017. In 2018, the Company obtained additional information which reduced the Company’s provisional accounting for certain tax effects of the Tax Act by $10.9 million, from $99.9 million as reported at December 31, 2017, to $89.0 million. The Company’s provision for income tax expense (benefit) 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 non-U.S. jurisdictions in which the Company has operations, the applicable statutory rates are generally lower than in the U.S., ranging from 0.0% to 34.6%. The Company’s provision for income tax expense (benefit) was calculated using the applicable rate for each jurisdiction applied to the Company’s pre-tax earnings (loss) with application of transfer pricing considerations in each jurisdiction, while the Company’s effective tax rate is calculated by dividing income tax expense (benefit) by earnings before income taxes. The Company’s earnings (loss) before income taxes and income tax expense (benefit) for 2019 , 2018 and 2017 are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Income tax jurisdiction Earnings (loss) before income taxes Income tax expense Earnings (loss) before income taxes Income tax expense (benefit) Earnings (loss) before income taxes Income tax expense United States (1) $ 4,999 $ 24,887 $ 16,597 $ 11,500 $ 25,628 $ 113,607 Peoples Republic of China (“China”) 121,702 30,320 89,429 19,595 95,668 12,971 Hong Kong 50,131 4,303 48,352 8,106 17,778 5,030 Jersey (2) 245,561 — 213,327 — 198,048 — Non-benefited loss operations (3) (7,685 ) 1,184 (11,422 ) (3,387 ) (17,350 ) 3,306 Other jurisdictions (4) 101,297 28,059 75,601 24,797 64,488 14,242 Earnings before income taxes $ 516,005 $ 88,753 $ 431,884 $ 60,611 $ 384,260 $ 149,156 Effective tax rate (5) 17.2% 14.0% 38.8% (1) United States income tax expense for 2017 includes a provisional one-time $99.9 million tax expense related to the enactment of the United States Tax Cuts & Jobs Act on December 22, 2017. (2) (3) (4) Consists of entities in the following tax jurisdictions, each of which comprises not more than 5% of consolidated earnings (loss) before taxes in the period being reported: Albania, Austria, Belgium, Bosnia & Herzegovina, Canada, Chile, Colombia, Costa Rica, France, Germany, Hungary, India, Israel, Italy, Kosovo, Macau, Macedonia, Malaysia, Mexico, Montenegro, Netherlands, Panama, Peru, Poland, Portugal, Serbia, Singapore, Spain, Switzerland, Vietnam, and the United Kingdom. (5) . For 2019, the effective tax rate was lower than the U.S. federal and state combined statutory rate of approximately 25%, primarily because of earnings from foreign operations in jurisdictions imposing either lower tax rates on corporate earnings or no corporate income tax. During 2019, as reflected in the table above, earnings (loss) before income taxes in the U.S. were $ 5.0 24.9 498 increased $245.6 million in 2019 213.3 increase increase increase As of December 31, 2019, the Company had approximately $824.9 million in cash and cash equivalents, of which $566.4 million, or 68.7%, was held outside the U.S. Of the $566.4 million held by its non-U.S. subsidiaries, approximately $220.3 million is available for repatriation to the U.S. without incurring U.S. income taxes and applicable non-U.S. income and withholding taxes in excess of the amounts accrued in the Company’s consolidated financial statements as of December 31, 2019. The Company’s cash and cash equivalents held in the U.S. and cash provided from operations are sufficient to meet the Company’s liquidity needs in the U.S. for the next twelve months. However, in anticipation of the needs of the Company’s share repurchase program and the need to provide payment of the Company’s provisional Transition Tax liability, the Company may repatriate certain funds held outside the U.S. for which all applicable U.S. and non-U.S. tax has been fully provided as of December 31, 201 9 . The Company has provided for the tax impact of expected distributions from its joint venture in China as well as from its subsidiary in Chile to its intermediate parent company in Switzerland. Otherwise because of the need for cash for operating capital and continued overseas expansion, the Company does not foresee the need for any of its other foreign subsidiaries to distribute funds up to an intermediate foreign parent company in any form of taxable dividend. Under current applicable tax laws, if the Company chooses to repatriate some or all of the funds the Company has designated as indefinitely reinvested outside the U.S., the amount repatriated would not be subject to federal income tax but may be subject to applicable non-U.S. income and withholding taxes, and to certain state income taxes. Income taxes differ from the statutory tax rates as applied to earnings before income taxes as follows (in thousands): 2019 2018 2017 Expected income tax expense $ 108,361 $ 90,696 $ 134,491 State income tax, net of federal benefit 1,278 3,051 297 Rate differential on foreign income (43,327 ) (40,065 ) (95,565 ) Change in unrecognized tax benefits 2,739 820 1,449 Non-deductible compensation 7,126 6,269 6,592 Tax credits (3,264 ) (2,539 ) (2,151 ) Excess tax benefit on share based compensation (251 ) (1,557 ) (2,571 ) U.S. tax rate change — — 1,923 U.S. transition tax — (10,963 ) 98,015 U.S. tax on foreign earnings 9,786 9,956 — Other 3,440 2,077 (1,110 ) Change in valuation allowance 2,865 2,866 7,786 Total provision (benefit) for income taxes $ 88,753 $ 60,611 $ 149,156 Effective tax rate 17.2 % 14.0 % 38.8 % The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented below (in thousands): 2019 2018 Deferred tax assets: Inventory adjustments $ 6,954 $ 5,779 Accrued expenses 50,847 42,637 Allowances for bad debts and chargebacks 4,809 3,549 Loss carryforwards 28,605 24,834 Business credit carryforward 8,262 7,015 Share-based compensation 4,521 4,283 Operating lease liabilities 261,984 — Valuation allowance (33,044 ) (30,179 ) Total deferred tax assets 332,938 57,918 Deferred tax liabilities: Prepaid expenses 5,586 6,263 Right-of-use assets 261,984 — Depreciation on property, plant and equipment 16,602 12,674 Total deferred tax liabilities 284,172 18,937 Net deferred tax assets $ 48,766 $ 38,981 The $2.9 million increase in the valuation allowance primarily relates to increases in deferred tax assets in certain foreign non-benefited loss jurisdictions as discussed above. The Company believes it is more likely than not that the results of future operations in the remaining jurisdictions will generate sufficient taxable income to realize its net deferred tax assets. State tax credit and net operating loss carry-forward amounts remaining as of December 31, 2019 were $10.5 million and $31.0 million, respectively. State tax credit and net operating loss carry-forward amounts remaining as of December 31, 2018 were $8.9 million and $31.1 million, respectively. These tax credit and net operating loss carry-forward amounts do not begin to expire until 2023 2032 As of December 31, 2019, and 2018, the Company had combined foreign net operating loss carry-forwards available to reduce future taxable income of approximately $154.0 million and $ 121.5 The balance of unrecognized tax benefits included in prepaid expenses in the consolidated balance sheets increased by $2.6 million during the year. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2019 2018 Beginning balance $ 7,975 $ 7,381 Additions for current year tax positions 1,795 1,161 Additions for prior year tax positions 1,638 — Reductions for prior year tax positions — (55 ) Reductions related to lapse of statute of limitations (842 ) (512 ) Ending balance $ 10,566 $ 7,975 If recognized, $10.6 million of unrecognized tax benefits would be recorded as a reduction in income tax expense. Estimated interest and penalties related to the underpayment of income taxes are classified as a component of income tax expense and totaled $0.4 million, $ 0.2 0.5 1.8 The amount of income taxes the Company pays is subject to ongoing audits by taxing jurisdictions around the world. The Company’s estimate of the potential outcome of any uncertain tax position is subject to its assessment of relevant risks, facts, and circumstances existing at that time. The Company believes that it has adequately provided for these matters. However, the Company’s future results may include favorable or unfavorable adjustments to its estimates in the period the audits are resolved, which may impact the Company’s effective tax rate. As of December 31, 2019, the Company’s tax filings are generally subject to examination in the U.S. and most foreign jurisdictions for years ending on or after December 31, 2015 2009 The Company is currently under examination by a number of states and certain foreign jurisdictions. During the year ended December 31, 2019, there was no reduction in the balance of 2019 and prior year unrecognized tax benefits due to settlements of examinations. It is reasonably possible that certain federal, state and foreign examinations could be settled during the next twelve months which would reduce the balance of 2019 and prior year unrecognized tax benefits by $0.9 million. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | (1 7 ) EMPLOYEE BENEFIT PLAN The Company has a 401(k) profit sharing plan covering all employees who are 21 years of age and have completed six months of service. Employees may contribute up to 15.0% of annual compensation. Company contributions to the plan are discretionary and vest over a six year period. The Company made a contribution of $2.4 million and $2.3 million to the plan for the year ended December 31, 2019 and 2018, respectively. In May 2013, the Company established the Skechers U.S.A., Inc. Deferred Compensation Plan (the “Plan”), which allows eligible employees to defer compensation up to a maximum amount to a future date on a nonqualified basis. The Plan provides for the Company to make discretionary contributions to participating employees, which will be determined by the Company’s Compensation Committee. The Company made contributions of |
Business and Credit Concentrati
Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Business and Credit Concentrations | (1 8 ) BUSINESS AND CREDIT CONCENTRATIONS The Company generates a significant portion of its sales in the United States; however, several of its products are sold into various foreign countries, which subject the Company to the risks of doing business abroad. In addition, the Company operates in the footwear industry, which is impacted by the general economy, and its business depends on the general economic environment and levels of consumer spending. Changes in the marketplace may significantly affect the Company’s estimates and its performance. The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. Domestic accounts receivable, which generally do not require collateral from customers, amounted to $228.5 million and $213.7 million before allowances for bad debts and sales returns, and chargebacks at December 31, 2019 and 2018, respectively. Foreign accounts receivable, which are generally collateralized by letters of credit, amounted to $440.9 million and $313.8 million before allowance for bad debts, sales returns, and chargebacks at December 31, 2019 and 2018, respectively. International sales amounted to $3,022.6 million, $2,514.0 million and $2,108.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. The Company’s credit losses charged to expense for the years ended December 31, 2019, 2018 and 2017 were $31.6 million, $8.0 million and $12.8 million, respectively. In addition, the Company recorded sales return expense for the years ended December 31, 2019, 2018 and 2017 were $46.1 million, $20.2 million and $5.6 million, respectively. Assets located outside the United States consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Net assets held outside the United States were $2,643.8 million and $1,611.2 million at December 31, 2019 and 2018, respectively. During 2019, 2018 and 2017, no customer accounted for 10.0% or more of sales. No customer accounted for more than 10% of net trade receivables at December 31, 2019 or 2018. During 2019, 2018 and 2017, sales to the five largest customers were approximately 9.6%, 10.4% and 10.5%, respectively. The Company’s top five manufacturers produced the following for the years ended December 31, 2019, 2018 and 2017, respectively: Percentage of Total Production Year Ended December 31, 2019 2018 2017 Manufacturer #1 16.0 % 12.8 % 17.9 % Manufacturer #2 7.3 % 10.1 % 11.1 % Manufacturer #3 7.2 % 8.6 % 8.8 % Manufacturer #4 5.1 % 5.4 % 5.4 % Manufacturer #5 5.0 % 5.0 % 4.3 % 40.6 % 41.9 % 47.5 % The majority of the Company’s products are produced in China and Vietnam. The Company’s operations are subject to the customary risks of doing business abroad, including but not limited to currency fluctuations and revaluations, custom duties and related fees, various import controls and other monetary barriers, restrictions on the transfer of funds, labor unrest and strikes and, in certain parts of the world, political instability. The Company believes it has acted to reduce these risks by diversifying manufacturing among various factories. To date, these business risks have not had a material adverse impact on the Company’s operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (1 9 ) RELATED PARTY TRANSACTIONS The Company paid approximately $58,000, $80,000, and $172,000 during 2019, 2018 and 2017, respectively, to the Manhattan Inn Operating Company, LLC (“MIOC”) for lodging, food and events, which is owned and operated by MIOC. Michael Greenberg, President and a director of the Company, owns a 12% beneficial ownership interest in MIOC, and three other officers, directors and senior vice presidents of the Company own in aggregate an additional 5% beneficial ownership in MIOC. The Company had no outstanding accounts receivable or payable with MIOC or the Shade Hotel in Manhattan Beach at December 31, 2019 or 2018. The Company paid approximately $ 124,000 , $ 167,000 and $ 201,000 during 2019 , 2018 , and 2017 to the Redondo Beach Hospitality Company, LLC (“RBHC”) for lodging, food and events, including the Company’s 2019, 2018, and 2017 holiday party at the Shade Hotel in Redondo Beach, which is owned and operated by RBHC. Michael Greenberg, President and a director of the Company, owns a 5 % beneficial ownership interest in RBHC, and three other officers, directors and senior vice presidents of the Company own in aggregate an additional 3 % beneficial ownership in RBHC. The Company had no outstanding accounts receivable or payable with RBHC or the Shade Hotel in Redondo Beach, at December 31, 2019 or 201 8 . On July 29, The Company had receivables from officers and employees of $0.8 million |
Segment and Geographic Reportin
Segment and Geographic Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting | ( 20 ) SEGMENT AND GEOGRAPHIC REPORTING The Company has three reportable segments–domestic wholesale sales, international wholesale sales, and retail sales, which includes direct-to-consumer sales. Management evaluates segment performance based primarily on sales and gross margins. All other costs and expenses of the Company are analyzed on an aggregate basis, and these costs are not allocated to the Company’s segments. Sales, gross margins and identifiable assets for the domestic wholesale, international wholesale, and retail segments on a combined basis were as follows (in thousands): 2019 2018 2017 Sales Domestic wholesale $ 1,247,550 $ 1,259,615 $ 1,249,287 International wholesale 2,462,632 2,054,770 1,729,906 Retail 1,509,869 1,327,683 1,184,967 Total $ 5,220,051 $ 4,642,068 $ 4,164,160 2019 2018 2017 Gross profit Domestic wholesale $ 457,944 $ 468,340 $ 464,609 International wholesale 1,133,573 976,739 786,675 Retail 899,640 778,526 687,605 Total $ 2,491,157 $ 2,223,605 $ 1,938,889 2019 2018 Identifiable assets Domestic wholesale $ 1,472,323 $ 1,428,463 International wholesale 2,100,042 1,423,048 Retail 1,320,578 376,744 Total $ 4,892,943 $ 3,228,255 2019 2018 2017 Additions to property, plant and equipment Domestic wholesale $ 75,037 $ 29,717 $ 20,055 International wholesale 109,205 63,316 47,410 Retail 51,869 50,003 68,511 Total $ 236,111 $ 143,036 $ 135,976 Geographic Information The following summarizes the Company’s operations in different geographic areas as of and for the years ended December 31: 2019 2018 2017 Sales (1) United States $ 2,197,391 $ 2,128,100 $ 2,055,475 Canada 167,963 171,864 160,367 Other international (2) 2,854,697 2,342,104 1,948,318 Total $ 5,220,051 $ 4,642,068 $ 4,164,160 2019 2018 Property, plant and equipment, net United States $ 439,132 $ 385,584 Canada 7,286 9,081 Other international (2) 292,507 190,792 Total $ 738,925 $ 585,457 (1) External sales are attributable to geographic regions based on the location of each of the Company’s subsidiaries. A subsidiary may earn revenue from external sales and external royalties, or from inter-subsidiary sales, royalties, fees and commissions provided in accordance with certain inter-subsidiary agreements. The resulting earnings of each subsidiary in its respective country are recognized under each respective country’s tax code. Inter-subsidiary revenues and expenses subsequently are eliminated in the Company’s consolidated financial statements and are not included as part of the external sales reported in different geographic areas. (2) Other international consists of Asia, Mexico, Central America, Europe, the Middle East, and South America. In response to the State Department’s trade restrictions with Sudan and Syria, the Company does not authorize or permit any distribution or sales of its product in these countries, and the Company is not aware of any current or past distribution or sales of its product in Sudan or Syria. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (2 1 ) SUBSEQUENT EVENTS The Company has evaluated events subsequent to December 31, 2019, to assess the need for potential recognition or disclosure in this filing. Based on this evaluation, it was determined that no subsequent events occurred that require recognition in the consolidated financial statements. |
Summary of Quarterly Financial
Summary of Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | (2 2 ) SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Summarized unaudited financial data are as follows (in thousands, except per share data): 2019 MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 Sales $ 1,276,756 $ 1,258,565 $ 1,353,998 $ 1,330,732 Gross profit 590,509 609,835 653,064 637,749 Net earnings 131,019 91,998 121,734 82,501 Net earnings attributable to Skechers U.S.A., Inc. 108,758 75,180 103,090 59,532 Net earnings per share: Basic 0.71 0.49 0.67 0.39 Diluted 0.71 0.49 0.67 0.39 2018 MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 Sales $ 1,250,078 $ 1,134,797 $ 1,176,395 $ 1,080,798 Gross profit 583,104 560,957 563,866 515,678 Net earnings (loss) 137,258 60,859 106,051 67,105 Net earnings (loss) attributable to Skechers U.S.A., Inc. 117,652 45,284 90,728 47,377 Net earnings (loss) per share: Basic 0.21 0.29 0.58 0.31 Diluted 0.21 0.29 0.58 0.31 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Years Ended December 31, 2019, 2018, and 2017 DESCRIPTION BALANCE BEGINNING OF YEAR CHARGED TO REVENUE COSTS AND EXPENSES DEDUCTIONS AND WRITE-OFFS BALANCE AT END OF YEAR Year-ended December 31, 2017 Allowance for chargebacks $ 10,974 $ 7,507 $ (5,674 ) $ 12,807 Allowance for doubtful accounts 5,620 5,266 (3,177 ) 7,709 Liability for sales returns and allowances 25,053 5,625 (14 ) 30,664 Reserve for shrinkage 542 2,020 (825 ) 1,737 Reserve for obsolescence 10,928 130 (4,039 ) 7,019 Year-ended December 31, 2018 Allowance for chargebacks $ 12,807 $ 12,629 $ (6,663 ) $ 18,773 Allowance for doubtful accounts 7,709 2,856 (3,722 ) 6,843 Liability for sales returns and allowances 30,664 20,245 (2,443 ) 48,466 Reserve for shrinkage 1,737 5,771 (5,891 ) 1,617 Reserve for obsolescence 7,019 6,461 (2,344 ) 11,136 Year-ended December 31, 2019 Allowance for chargebacks $ 18,773 $ 3,931 $ (5,291 ) $ 17,413 Allowance for doubtful accounts 6,843 2,471 (2,621 ) 6,693 Liability for sales returns and allowances 48,466 46,054 (25,472 ) 69,048 Reserve for shrinkage 1,617 5,149 (5,802 ) 964 Reserve for obsolescence 11,136 9,444 (14,816 ) 5,764 |
The Company and Summary Of Si_2
The Company and Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company and Basis of Presentation | (a) The Company and Basis of Presentation Skechers U.S.A., Inc. and subsidiaries (the “Company”) designs, develops, markets and distributes footwear. The Company operates 497 domestic and 303 international retail stores and direct-to-consumer business as of December 31, 2019. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the consolidated financial statements in prior years to conform to the current year presentation. |
Use of Estimates | (b) Use of Estimates The Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States. Significant areas requiring the use of estimates relate primarily to revenue recognition, allowance for bad debts, returns, sales allowances and customer chargebacks, inventory write-downs, valuation of intangibles and long-lived assets, goodwill, litigation reserves and valuation of deferred income taxes. Actual results could differ materially from those estimates. |
Revenue Recognition | (c) Revenue Recognition In accordance with Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers are accounted for as a fulfillment cost and not as a separate performance obligation. The Company records accounts receivable at the time of shipment when the Company’s right to the consideration becomes unconditional. The Company typically extends credit terms to its wholesale customers based on their creditworthiness and generally does not receive advance payments. Generally, wholesale customers do not have the right to return goods, however, the Company periodically decides to accept returns or provide customers with credits. Allowances for estimated returns, discounts, doubtful accounts and chargebacks are provided for when related revenue is recorded. Retail and direct-to-consumer sales represent amounts due from credit card companies and are generally collected within a few days of the purchase. As such, the Company has determined that an allowance for doubtful accounts for retail and direct-to-consumer sales is not necessary. The Company earns royalty income from its licensing arrangements, which qualify as symbolic licenses rather than functional licenses. Upon signing a new licensing agreement, the Company receives up-front fees, which are generally characterized as prepaid royalties. These fees are initially deferred and recognized as revenue is earned (i.e., as licensed sales are reported to the Company or on a straight-line basis over the term of the agreement). The Company applies the sales-based royalty exception for the royalty income based on sales and recognizes revenue only when subsequent sales occur. The Company calculates and accrues estimated royalties based on the agreement terms and correspondence with the licensees regarding actual sales. Judgments The Company considered several factors in determining that control transfers to the customer upon shipment of products. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership at the time of shipment. The Company accrues a liability for product returns at the time of sale based on historical experience. The Company also accrues amounts for goods expected to be returned in salable condition. As of December 31, 2019, and December 31, 2018, the Company’s sales returns liability totaled $86.5 million and $67.3 million, respectively, and was included in accrued expenses in the consolidated balance sheets. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic revenue recognition methodology under ASC 605, Revenue Recognition |
Business Combinations | (d) Business Combinations Business acquisitions are accounted for under the acquisition method by assigning the purchase price to tangible and intangible assets acquired and liabilities assumed. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Purchased intangible assets with finite lives are amortized over their estimated useful lives. Goodwill and intangible assets with indefinite lives are not amortized but are tested at least annually for impairment or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value determinations require judgment and may involve the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives, and market multiples, among other items. The purchase price allocation is subject to adjustment until the Company has completed its analysis within the measurement period. In the second quarter of 2019, the Company purchased a 60% interest in Manhattan SKMX, de R.L. de C.V. (“Skechers Mexico”), for a total cash consideration of $100.7 million, net of cash acquired. Skechers Mexico is a joint venture that operates and generates sales in Mexico. As a result of this purchase, Skechers Mexico became a majority-owned subsidiary and the results are consolidated in the consolidated financial statements. The Company is in the final process of completing the purchase price allocation, which will be completed by April 1, 2020. However, the finalization may result in changes in the assets acquired and tax-related items. Pro forma results of operations have not been presented because the effects of the acquisition, individually and in the aggregate, were not material to the Company’s consolidated financial statements. |
Business Segment Information | ( e ) Business Segment Information The Company’s operations and segments are organized along its distribution channels and consist of the following: domestic wholesale, international wholesale, and direct-to-consumer sales. Information regarding these segments is summarized in Note 20 – Segment and Geographic Reporting. |
Noncontrolling Interests | ( f ) 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”)’s under Accounting Standards Codification (“ASC”) 810-10-15-14. The Company’s determination of the primary beneficiary of a VIE considers all relationships between the Company and the VIE, including management agreements, governance documents and other contractual arrangements. The Company has determined that it is the primary beneficiary for these VIE’s because the Company has both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance; and (b) the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity, or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Accordingly, the Company includes the assets and liabilities and results of operations of these entities in its consolidated financial statements, even though the Company may not hold a majority equity interest. There have been no changes during 2019 in the accounting treatment or characterization of any previously identified VIE. The Company continues to reassess these relationships quarterly. The assets of these joint ventures are restricted in that they are not available for general business use outside the context of such joint ventures. The holders of the liabilities of each joint venture have no recourse to the Company. The Company does not have a variable interest in any unconsolidated VIEs. |
Fair Value of Financial Instruments | ( g ) Fair Value of Financial Instruments The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: • Level 1 – Quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 non-derivative investments primarily include money market funds and U.S. Treasury securities. • Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s Level 2 non-derivative investments primarily include corporate notes and bonds, asset-backed securities, U.S. Agency securities, and actively traded mutual funds. The Company has one Level 2 derivative which is an interest rate swap related to the refinancing of its domestic distribution center (see below). • Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The Company currently does not have any Level 3 assets or liabilities. The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, short-term investments, accounts receivable, long-term investments, accounts payable and accrued expenses approximates fair value because of the relatively short maturity of such instruments. The carrying amount of the Company’s short-term and long-term borrowings, which are considered Level 2 liabilities, approximates fair value based upon current rates and terms available to the Company for similar debt. As of August 12, 2015, the Company entered into an interest rate swap agreement concurrent with refinancing its domestic distribution center construction loan (see Note 8 - Derivative Instruments). The fair value of the interest rate swap was determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipt was based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with U.S. GAAP, credit valuation adjustments were incorporated to appropriately reflect both the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The majority of the inputs used to value the interest rate swap were within Level 2 of the fair value hierarchy. As of December 31, 2019, the interest rate swap was a Level 2 derivative and was classified as other long-term liabilities in the Company’s consolidated balance sheets. |
Cash and Cash Equivalents | ( h ) Cash and Cash Equivalents Cash and cash equivalents include deposits with initial terms of less than three months. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. |
Investments | ( i ) Investments In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments consist of U.S. Treasury Bonds, U.S. Agency securities, corporate notes and bonds, asset-backed securities and actively traded mutual funds. |
Allowance for Bad Debts, Returns, Sales Allowances and Customer Chargebacks | ( j ) Allowance for Bad Debts, Returns, Sales Allowances and Customer Chargebacks The Company provides a reserve, charged against revenue and its receivables, for estimated losses that may result from its customers’ inability to pay. To minimize the likelihood of uncollectability, customers’ credit-worthiness is reviewed and adjusted periodically in accordance with external credit reporting services, financial statements issued by the customer and the Company’s experience with the account. When a customer’s account becomes significantly past due, the Company generally places a hold on the account and discontinues further shipments to that customer, minimizing further risk of loss. The Company determines the amount of the reserve by analyzing known uncollectible accounts, aged receivables, economic conditions in the customers’ countries or industries, historical losses and its customers’ credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged against this reserve. Allowance for returns, sales allowances and The Company also reserves for potential disputed amounts or chargebacks from its customers. The Company’s chargeback reserve is based on a collectability percentage calculated using factors such as historical trends, current economic conditions, and nature of the chargeback receivables. The Company also reserves for potential sales returns and allowances based on historical trends. The likelihood of a material loss on an uncollectible account would be mainly dependent on deterioration in the overall economic conditions in a particular country or environment. Reserves are fully provided for all probable losses of this nature. For receivables that are not specifically identified as high-risk, the Company provides a reserve based upon its historical loss rate as a percentage of sales. |
Inventories | ( k ) Inventories Inventories, principally finished goods, are stated at the lower of cost (based on the first-in, first-out method) or market (net realizable value). Cost includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. The Company provides for estimated losses from obsolete or slow-moving inventories, and writes down the cost of inventory at the time such determinations are made. Reserves are estimated based on inventory on hand, historical sales activity, industry trends, the retail environment, and the expected net realizable value. The net realizable value is determined using estimated sales prices of similar inventory through off-price or discount store channels. |
Property, Plant and Equipment | ( l ) Property, Plant and Equipment Depreciation and amortization of property, plant and equipment is computed using the straight-line method, which based on the following estimated useful lives: Buildings 20 years Building improvements 10 years Furniture, fixtures and equipment 5 to 20 years Leasehold improvements Useful life or remaining lease term, whichever is shorter Property, plant and equipment subject to depreciation and amortization is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The Company reviews both quantitative and qualitative factors to assess whether a triggering event occurred. The Company reviews all stores for impairment annually or more frequently if events or changes in circumstances require it. The Company prepares a summary of store cash flows from its retail stores to assess potential impairment of the fixed assets, leasehold improvements, and operating lease right-of-use assets. Stores with negative cash flows which have been open in excess of 24 months are then reviewed in detail to determine whether impairment exists. Recoverability of assets or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. The Company did not record impairment charges during the years ended December 31, 2019, 2018 or 2017. |
Goodwill | (m) Goodwill Goodwill is assigned to reporting units. Goodwill is not amortized, but the Company assesses goodwill for impairment annually or more frequently if events or changes in circumstances require it. First, the Company determines if, based on qualitative factors, it is more likely than not that an impairment exists. Factors considered include historical financial performance, macroeconomic and industry conditions and the legal and regulatory environment. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. The quantitative assessment involves calculating an estimated fair value of each reporting unit based on projected future cash flows and comparing the estimated fair values of the reporting units to their carrying amounts, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying value, including goodwill, no impairment is recognized. However, if the carrying amount of a reporting unit, including goodwill, exceeds its fair value, an impairment loss is recognized in an amount equal to the excess, limited to the total goodwill balance of the reporting unit. The quantitative assessment requires an analysis of several best estimates and assumptions, including future sales and operating results, and other factors that could affect fair value or otherwise indicate potential impairment. The Company also considers the reporting units’ projected ability to generate income from operations and positive cash flow in future periods, as well as perceived changes in consumer demand and acceptance of products, or factors impacting the industry generally. The fair value assessment could change materially if different estimates and assumptions were used. |
Income Taxes | ( n ) Income Taxes The Company accounts for income taxes in accordance with ASC 740-10, which requires that the Company recognize deferred tax liabilities for taxable temporary differences and deferred tax assets for deductible temporary differences and operating loss carry‑forwards using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit or expense is recognized as a result of changes in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all of any deferred tax assets will not be realized. |
Foreign Currency Translation | ( o ) Foreign Currency Translation In accordance with ASC 830-30, |
Comprehensive Income | ( p ) Comprehensive Income Comprehensive income is presented in the consolidated statements of comprehensive income. Comprehensive income consists of net earnings, foreign currency translation adjustments, and income attributable to non-controlling interests. |
Advertising Costs | ( q ) Advertising Costs Advertising costs are expensed in the period in which the advertisements are first run, or over the life of the endorsement contract. Advertising expense for the years ended December 31, 2019, 2018 and 2017 was approximately $297.1 million, $278.4 million and $260.4 million, respectively. Prepaid advertising costs were $6.4 million and $4.4 million at December 31, 2019 and 2018, respectively. Prepaid amounts outstanding at December 31, 2019 and 2018 represent the unamortized portion of endorsement contracts, advertising in trade publications and media productions created, but not run, as of December 31, 2019 and 2018, respectively. |
Product Design and Development Costs | ( r ) Product Design and Development Costs The Company charges all product design and development costs to general and administrative expenses, when incurred. Product design and development costs aggregated approximately $16.8 million, $18.5 million, and $18.8 million during the years ended December 31, 2019, 2018 and 2017, respectively. |
Warehouse and Distribution Costs | ( s ) Warehouse and Distribution Costs The Company’s distribution network-related costs are included in general and administrative expenses and are not allocated to specific segments. The expenses related to its distribution network, including the functions of purchasing, receiving, inspecting, allocating, warehousing and packaging of its products totaled $276.4 million, $249.6 million and $219.6 million for 2019, 2018 and 2017, respectively. |
Recent Accounting Pronouncements | ( t ) Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02 “ Leases (Topic 842) identification, lease classification and initial direct costs. The Company did not recognize any adjustment to opening balance of retained earnings. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument,” In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” In August 2018, the FASB issued ASU No. 2018-15 “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract,” In December 2019, the FASB issued ASU no. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, |
The Company and Summary Of Si_3
The Company and Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives of Property, Plant and Equipment | Depreciation and amortization of property, plant and equipment is computed using the straight-line method, which based on the following estimated useful lives: Buildings 20 years Building improvements 10 years Furniture, fixtures and equipment 5 to 20 years Leasehold improvements Useful life or remaining lease term, whichever is shorter |
Cash, Cash Equivalents, Short_2
Cash, Cash Equivalents, Short-Term And Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash Cash Equivalents And Short Term And Long Term Investments [Abstract] | |
Summary of Cash, Cash Equivalents, Short-Term and Long-Term Investments by Significant Investment Category | The following tables show the Company’s cash, cash equivalents, short-term and long-term investments by significant investment category as of December 31, 2019 and December 31, 2019 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 662,355 $ - $ - $ 662,355 $ 662,355 $ - $ - Level 1: Money market funds 162,521 - - 162,521 162,521 - - U.S. Treasury securities 9,686 - - 9,686 - 1,679 8,007 Total level 1 172,207 - - 172,207 162,521 1,679 8,007 Level 2: - - - Corporate notes and bonds 132,431 - - 132,431 - 104,130 28,301 Asset-backed securities 23,614 - - 23,614 - 263 23,351 U.S. Agency securities 12,352 - - 12,352 - 5,965 6,387 Mutual funds 28,543 - - 28,543 - - 28,543 Total level 2 196,940 - - 196,940 - 110,358 86,582 TOTAL $ 1,031,502 $ - $ - $ 1,031,502 $ 824,876 $ 112,037 $ 94,589 December 31, 2018 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 713,624 $ - $ - $ 713,624 $ 713,624 $ - $ - Level 1: Money market funds 158,613 - - 158,613 158,613 - - U.S. Treasury securities 6,955 - - 6,955 - 4,979 1,976 Total level 1 165,568 - - 165,568 158,613 4,979 1,976 Level 2: - - - Corporate notes and bonds 132,280 - - 132,280 - 88,412 43,868 Asset-backed securities 23,310 - - 23,310 - 2,115 21,195 U.S. Agency securities 10,272 - - 10,272 - 4,523 5,749 Mutual funds 20,957 - - 20,957 - - 20,957 Total level 2 186,819 - - 186,819 - 95,050 91,769 TOTAL $ 1,066,011 $ - $ - $ 1,066,011 $ 872,237 $ 100,029 $ 93,745 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Future Minimum Obligations under Operating Leases Adoption of ASU 842 | The future minimum obligations under operating leases in effect as of December 31, 2019 having a noncancelable term in excess of one year as determined prior to the adoption of ASU 842 are as follows (in thousands): December 31, 2019 2020 $ 236,604 2021 211,466 2022 182,833 2023 164,467 2024 152,823 Thereafter 439,766 Total lease payments 1,387,959 Less: Imputed interest (230,819 ) $ 1,157,140 |
Summary of Operating Lease Cost and Other Information | Operating lease cost and other information (in thousands): Year ended December 31, 2019 Fixed lease cost $ 246,296 Variable lease cost 13,104 Operating cash flows used for leases 264,424 Noncash right-of-use assets recorded for lease liabilities: For January 1 adoption of Topic 842 1,035,062 In exchange for new lease liabilities during the period 122,078 Weighted-average remaining lease term 4.66 years Weighted-average discount rate 4.20% |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment at December 31, 2019 and 2018 is summarized as follows (in thousands): 2019 2018 Land $ 90,862 $ 83,163 Buildings and improvements 349,066 246,893 Furniture, fixtures and equipment 454,837 374,706 Leasehold improvements 453,805 401,514 Total property, plant and equipment 1,348,570 1,106,276 Less accumulated depreciation and amortization 609,645 520,819 Property, plant and equipment, net $ 738,925 $ 585,457 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses at December 31, 2019 and 2018 are summarized as follows (in thousands): 2019 2018 Accrued inventory purchases $ 48,923 $ 40,493 Accrued payroll and taxes 92,264 72,822 Return reserve liability 69,048 48,466 Accrued expenses $ 210,235 $ 161,781 |
Short and Long-term Borrowings
Short and Long-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | Long-term borrowings at December 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Note payable to banks, due in monthly installments of $348 (includes principal and interest), variable-rate interest at 5.24% per annum, secured by property, balloon payment of $62,843 due August 2020 $ 63,692 $ 65,148 Note payable to Luen Thai Enterprise, Ltd., balloon payment of $393 due January 2021 393 5,800 Note payable to TCF Equipment Finance, Inc., due in monthly installments of $30 (includes principal and interest), fixed- rate interest at 5.24% per annum, paid in July 2019 — 210 Loan payable to a bank, variable-rate interest at 4.275% per annum, due September 2023 48,791 18,626 Loan payable to a bank, variable-rate interest at 3.915% per annum, due October 2020 2,541 — Subtotal 115,417 89,785 Less: current installments 66,234 1,666 Total long-term borrowings $ 49,183 $ 88,119 |
Aggregate Maturities of Long-Term Borrowings | The aggregate maturities of long-term borrowings at December 31, 2019 are as follows (in thousands): 2020 $ 63,692 2021 3,290 2022 36,848 2023 11,587 2024 — $ 115,417 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Long Term Liabilities Disclosure [Abstract] | |
Summary of Other Long-Term Liabilities | Other long-term liabilities at December 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Other long term liabilities $ 30,675 $ 21,458 Income taxes payable 72,414 78,730 $ 103,089 $ 100,188 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Carrying Amounts and Classification of Assets and Liabilities for VIEs | The following VIEs are consolidated into the Company’s consolidated financial statements and the carrying amounts and classification of assets and liabilities were as follows (in thousands): HF Logistics (1) December 31, 2019 December 31, 2018 Current assets $ 5,297 $ 2,121 Non-current assets 104,527 98,148 Total assets $ 109,824 $ 100,269 Current liabilities $ 64,600 $ 2,738 Non-current liabilities 1,009 64,702 Total liabilities $ 65,609 $ 67,440 Product distribution joint ventures December 31, 2019 (2) December 31, 2018 (3) Current assets $ 747,668 $ 540,768 Non-current assets 325,283 128,250 Total assets $ 1,072,951 $ 669,018 Current liabilities $ 430,282 $ 294,640 Non-current liabilities 135,903 26,444 Total liabilities $ 566,185 $ 321,084 (1) Includes HF Logistics-SKX, LLC and HF Logistics-SKX, T2, LLC. (2) Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, and Manhattan SKMX, S. de R.L. de C.V. (Mexico). ( 3 ) Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, Skechers Retail India Private Limited, and Skechers South Asia Private Limited. |
Net Earnings Attributable to Non-controlling Interest, Distributions and Contributions | The following is a summary of net earnings attributable to, distributions to and contributions from non-controlling interests (in thousands): Year Ended December 31, 2019 2018 2017 Net earnings attributable to non-controlling interests $ 80,692 $ 70,232 $ 55,914 Distributions to: HF Logistics-SKX, LLC 3,784 4,374 3,787 Skechers China Limited 32,245 19,915 20,620 Skechers Southeast Asia Limited 2,028 2,025 1,347 Skechers Hong Kong Limited 618 618 199 India distribution joint ventures — 68 — Contributions from: Skechers Korea Co., Ltd. 6,594 — — Skechers Footwear Ltd. (Israel) — — 46 HF Logistics-SKX, LLC 7,565 — — Manhattan SKMX, S. de R.L. de C.V. 22,776 — — |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Repurchase Program [Abstract] | |
Summary of Stock Repurchase Activities | The following table provides a summary of the Company’s Class A Common Stock repurchase activities during the years ended December 31, 2019 and 2018, respectively: Year Ended December 31, 2019 Year Ended December 31, 2018 Shares repurchased 968,724 3,656,277 Average cost per share $ 30.99 $ 27.34 Total cost of shares repurchased (in thousands): $ 30,019 $ 99,977 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Earnings and Weighted Average Common Shares Outstanding | The following is a reconciliation of net earnings and weighted average common shares outstanding for purposes of calculating earnings per share (in thousands): Basic earnings per share 2019 2018 2017 Net earnings attributable to Skechers U.S.A., Inc. $ 346,560 $ 301,041 $ 179,190 Weighted average common shares outstanding 153,392 155,815 155,651 Basic earnings per share attributable to Skechers U.S.A., Inc. $ 2.26 $ 1.93 $ 1.15 Diluted earnings per share 2019 2018 2017 Net earnings attributable to Skechers U.S.A., Inc. $ 346,560 $ 301,041 $ 179,190 Weighted average common shares outstanding 153,392 155,815 155,651 Dilutive effect of nonvested shares 759 635 872 Weighted average common shares outstanding 154,151 156,450 156,523 Diluted earnings per share attributable to Skechers U.S.A., Inc. $ 2.25 $ 1.92 $ 1.14 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Nonvested Shares Related to the 2007 Plan | A summary of the status and changes of nonvested shares related to the 2007 Plan and the 2017 Plan, as of and for the year ended December 31, 2019 is presented below: SHARES WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE Nonvested at January 1, 2017 3,043,164 $ 24.57 Granted 495,600 24.69 Vested/Released (1,157,207 ) 20.73 Cancelled (78,000 ) 32.62 Nonvested at December 31, 2017 2,303,557 26.25 Granted 1,811,000 38.05 Vested/Released (1,018,283 ) 21.91 Cancelled (127,333 ) 29.71 Nonvested at December 31, 2018 2,968,941 34.79 Granted 1,603,000 28.45 Vested/Released (1,116,868 ) 32.46 Cancelled (28,250 ) 39.40 Nonvested at December 31, 2019 3,426,823 32.55 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provisions for Income Tax Expense | The provisions for income tax expense were as follows (in thousands): 2019 2018 2017 Federal: Current $ 22,899 $ 11,379 $ 110,448 Deferred (3,583 ) (3,971 ) 3,768 Total federal 19,316 7,408 114,216 State: Current 6,384 5,408 2,747 Deferred (813 ) (1,316 ) (3,356 ) Total state 5,571 4,092 (609 ) Foreign: Current 66,656 53,071 40,147 Deferred (2,790 ) (3,960 ) (4,598 ) Total foreign 63,866 49,111 35,549 Total income taxes (benefit) $ 88,753 $ 60,611 $ 149,156 |
Schedule of Earnings (Loss) before Income Taxes and Income Tax Expense (Benefit) | The Company’s earnings (loss) before income taxes and income tax expense (benefit) for 2019 , 2018 and 2017 are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Income tax jurisdiction Earnings (loss) before income taxes Income tax expense Earnings (loss) before income taxes Income tax expense (benefit) Earnings (loss) before income taxes Income tax expense United States (1) $ 4,999 $ 24,887 $ 16,597 $ 11,500 $ 25,628 $ 113,607 Peoples Republic of China (“China”) 121,702 30,320 89,429 19,595 95,668 12,971 Hong Kong 50,131 4,303 48,352 8,106 17,778 5,030 Jersey (2) 245,561 — 213,327 — 198,048 — Non-benefited loss operations (3) (7,685 ) 1,184 (11,422 ) (3,387 ) (17,350 ) 3,306 Other jurisdictions (4) 101,297 28,059 75,601 24,797 64,488 14,242 Earnings before income taxes $ 516,005 $ 88,753 $ 431,884 $ 60,611 $ 384,260 $ 149,156 Effective tax rate (5) 17.2% 14.0% 38.8% (1) United States income tax expense for 2017 includes a provisional one-time $99.9 million tax expense related to the enactment of the United States Tax Cuts & Jobs Act on December 22, 2017. (2) (3) (4) Consists of entities in the following tax jurisdictions, each of which comprises not more than 5% of consolidated earnings (loss) before taxes in the period being reported: Albania, Austria, Belgium, Bosnia & Herzegovina, Canada, Chile, Colombia, Costa Rica, France, Germany, Hungary, India, Israel, Italy, Kosovo, Macau, Macedonia, Malaysia, Mexico, Montenegro, Netherlands, Panama, Peru, Poland, Portugal, Serbia, Singapore, Spain, Switzerland, Vietnam, and the United Kingdom. (5) . |
Summary of Earnings before Income Taxes | Income taxes differ from the statutory tax rates as applied to earnings before income taxes as follows (in thousands): 2019 2018 2017 Expected income tax expense $ 108,361 $ 90,696 $ 134,491 State income tax, net of federal benefit 1,278 3,051 297 Rate differential on foreign income (43,327 ) (40,065 ) (95,565 ) Change in unrecognized tax benefits 2,739 820 1,449 Non-deductible compensation 7,126 6,269 6,592 Tax credits (3,264 ) (2,539 ) (2,151 ) Excess tax benefit on share based compensation (251 ) (1,557 ) (2,571 ) U.S. tax rate change — — 1,923 U.S. transition tax — (10,963 ) 98,015 U.S. tax on foreign earnings 9,786 9,956 — Other 3,440 2,077 (1,110 ) Change in valuation allowance 2,865 2,866 7,786 Total provision (benefit) for income taxes $ 88,753 $ 60,611 $ 149,156 Effective tax rate 17.2 % 14.0 % 38.8 % |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented below (in thousands): 2019 2018 Deferred tax assets: Inventory adjustments $ 6,954 $ 5,779 Accrued expenses 50,847 42,637 Allowances for bad debts and chargebacks 4,809 3,549 Loss carryforwards 28,605 24,834 Business credit carryforward 8,262 7,015 Share-based compensation 4,521 4,283 Operating lease liabilities 261,984 — Valuation allowance (33,044 ) (30,179 ) Total deferred tax assets 332,938 57,918 Deferred tax liabilities: Prepaid expenses 5,586 6,263 Right-of-use assets 261,984 — Depreciation on property, plant and equipment 16,602 12,674 Total deferred tax liabilities 284,172 18,937 Net deferred tax assets $ 48,766 $ 38,981 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2019 2018 Beginning balance $ 7,975 $ 7,381 Additions for current year tax positions 1,795 1,161 Additions for prior year tax positions 1,638 — Reductions for prior year tax positions — (55 ) Reductions related to lapse of statute of limitations (842 ) (512 ) Ending balance $ 10,566 $ 7,975 |
Business and Credit Concentra_2
Business and Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Company's Top Five Manufacturers Produced | The Company’s top five manufacturers produced the following for the years ended December 31, 2019, 2018 and 2017, respectively: Percentage of Total Production Year Ended December 31, 2019 2018 2017 Manufacturer #1 16.0 % 12.8 % 17.9 % Manufacturer #2 7.3 % 10.1 % 11.1 % Manufacturer #3 7.2 % 8.6 % 8.8 % Manufacturer #4 5.1 % 5.4 % 5.4 % Manufacturer #5 5.0 % 5.0 % 4.3 % 40.6 % 41.9 % 47.5 % |
Segment and Geographic Report_2
Segment and Geographic Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Sales, gross margins and identifiable assets for the domestic wholesale, international wholesale, and retail segments on a combined basis were as follows (in thousands): 2019 2018 2017 Sales Domestic wholesale $ 1,247,550 $ 1,259,615 $ 1,249,287 International wholesale 2,462,632 2,054,770 1,729,906 Retail 1,509,869 1,327,683 1,184,967 Total $ 5,220,051 $ 4,642,068 $ 4,164,160 2019 2018 2017 Gross profit Domestic wholesale $ 457,944 $ 468,340 $ 464,609 International wholesale 1,133,573 976,739 786,675 Retail 899,640 778,526 687,605 Total $ 2,491,157 $ 2,223,605 $ 1,938,889 2019 2018 Identifiable assets Domestic wholesale $ 1,472,323 $ 1,428,463 International wholesale 2,100,042 1,423,048 Retail 1,320,578 376,744 Total $ 4,892,943 $ 3,228,255 2019 2018 2017 Additions to property, plant and equipment Domestic wholesale $ 75,037 $ 29,717 $ 20,055 International wholesale 109,205 63,316 47,410 Retail 51,869 50,003 68,511 Total $ 236,111 $ 143,036 $ 135,976 |
Geographic Information | Geographic Information The following summarizes the Company’s operations in different geographic areas as of and for the years ended December 31: 2019 2018 2017 Sales (1) United States $ 2,197,391 $ 2,128,100 $ 2,055,475 Canada 167,963 171,864 160,367 Other international (2) 2,854,697 2,342,104 1,948,318 Total $ 5,220,051 $ 4,642,068 $ 4,164,160 2019 2018 Property, plant and equipment, net United States $ 439,132 $ 385,584 Canada 7,286 9,081 Other international (2) 292,507 190,792 Total $ 738,925 $ 585,457 (1) External sales are attributable to geographic regions based on the location of each of the Company’s subsidiaries. A subsidiary may earn revenue from external sales and external royalties, or from inter-subsidiary sales, royalties, fees and commissions provided in accordance with certain inter-subsidiary agreements. The resulting earnings of each subsidiary in its respective country are recognized under each respective country’s tax code. Inter-subsidiary revenues and expenses subsequently are eliminated in the Company’s consolidated financial statements and are not included as part of the external sales reported in different geographic areas. (2) Other international consists of Asia, Mexico, Central America, Europe, the Middle East, and South America. |
Summary of Quarterly Financia_2
Summary of Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Financial Data | The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Summarized unaudited financial data are as follows (in thousands, except per share data): 2019 MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 Sales $ 1,276,756 $ 1,258,565 $ 1,353,998 $ 1,330,732 Gross profit 590,509 609,835 653,064 637,749 Net earnings 131,019 91,998 121,734 82,501 Net earnings attributable to Skechers U.S.A., Inc. 108,758 75,180 103,090 59,532 Net earnings per share: Basic 0.71 0.49 0.67 0.39 Diluted 0.71 0.49 0.67 0.39 2018 MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 Sales $ 1,250,078 $ 1,134,797 $ 1,176,395 $ 1,080,798 Gross profit 583,104 560,957 563,866 515,678 Net earnings (loss) 137,258 60,859 106,051 67,105 Net earnings (loss) attributable to Skechers U.S.A., Inc. 117,652 45,284 90,728 47,377 Net earnings (loss) per share: Basic 0.21 0.29 0.58 0.31 Diluted 0.21 0.29 0.58 0.31 |
The Company and Summary of Si_4
The Company and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)Store | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Cash consideration paid, net of cash acquired | $ 100,658,000 | |||
Derivative effective dates | Aug. 12, 2015 | |||
Impairment charges | $ 0 | $ 0 | $ 0 | |
Goodwill impairment loss | 0 | |||
Advertising expense | 297,100,000 | 278,400,000 | 260,400,000 | |
Prepaid advertising costs | 6,400,000 | 4,400,000 | ||
Product design and development costs | 16,800,000 | 18,500,000 | 18,800,000 | |
Warehouse and distribution costs | 276,400,000 | 249,600,000 | $ 219,600,000 | |
Skechers Mexico [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Ownership interest in joint venture | 60.00% | |||
Cash consideration paid, net of cash acquired | $ 100,700,000 | |||
Sales Returns and Allowances [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Sales returns liability | $ 86,500,000 | $ 67,300,000 | ||
Domestic [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of operating retail stores | Store | 497 | |||
International [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of operating retail stores | Store | 303 |
The Company and Summary of Si_5
The Company and Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Building improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Useful life or remaining lease term, whichever is shorter |
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 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | $ 824,876 | $ 872,237 | $ 736,431 | $ 718,536 |
Short-Term Investments | 112,037 | 100,029 | ||
Long-Term Investments | 94,589 | 93,745 | ||
Adjusted Cost | 1,031,502 | 1,066,011 | ||
Fair Value | 1,031,502 | 1,066,011 | ||
Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 162,521 | 158,613 | ||
Short-Term Investments | 1,679 | 4,979 | ||
Long-Term Investments | 8,007 | 1,976 | ||
Adjusted Cost | 172,207 | 165,568 | ||
Fair Value | 172,207 | 165,568 | ||
Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 110,358 | 95,050 | ||
Long-Term Investments | 86,582 | 91,769 | ||
Adjusted Cost | 196,940 | 186,819 | ||
Fair Value | 196,940 | 186,819 | ||
Money market funds [Member] | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 162,521 | 158,613 | ||
Adjusted Cost | 162,521 | 158,613 | ||
Fair Value | 162,521 | 158,613 | ||
U.S. Treasury Securities | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 1,679 | 4,979 | ||
Long-Term Investments | 8,007 | 1,976 | ||
Adjusted Cost | 9,686 | 6,955 | ||
Fair Value | 9,686 | 6,955 | ||
Mutual Funds [Member] | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Long-Term Investments | 28,543 | 20,957 | ||
Adjusted Cost | 28,543 | 20,957 | ||
Fair Value | 28,543 | 20,957 | ||
Corporate Notes and Bonds [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 104,130 | 88,412 | ||
Long-Term Investments | 28,301 | 43,868 | ||
Adjusted Cost | 132,431 | 132,280 | ||
Fair Value | 132,431 | 132,280 | ||
Asset-backed Securities [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 263 | 2,115 | ||
Long-Term Investments | 23,351 | 21,195 | ||
Adjusted Cost | 23,614 | 23,310 | ||
Fair Value | 23,614 | 23,310 | ||
U.S. Agency Securities | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 5,965 | 4,523 | ||
Long-Term Investments | 6,387 | 5,749 | ||
Adjusted Cost | 12,352 | 10,272 | ||
Fair Value | 12,352 | 10,272 | ||
Cash [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 662,355 | 713,624 | ||
Fair Value | $ 662,355 | $ 713,624 |
Cash, Cash Equivalents, Short_4
Cash, Cash Equivalents, Short-Term and Long-Term Investments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Maximum [Member] | |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | |
Long-term investments maturity period | 2 years |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Operating Leased Assets [Line Items] | |||
Rent expenses | $ 257,600 | $ 223,700 | |
Operating lease liabilities | $ 191,129 | ||
Operating lease right-of-use assets | $ 1,073,660 | ||
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease term | 1 year | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease term | 10 years | ||
Retail Stores Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease right-of-use assets | $ 30,800 | ||
Retail Stores Leases [Member] | Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease term | 5 years | ||
Retail Stores Leases [Member] | Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease term | 10 years | ||
Other Real Estate or Facility Leases [Member] | Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease term | 20 years |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Obligations under Operating Leases Adoption of ASU 842 (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 | $ 236,604 |
2021 | 211,466 |
2022 | 182,833 |
2023 | 164,467 |
2024 | 152,823 |
Thereafter | 439,766 |
Total lease payments | 1,387,959 |
Less: Imputed interest | (230,819) |
Present value of lease liabilities | $ 1,157,140 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Cost and Other Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Fixed lease cost | $ 246,296 |
Variable lease cost | 13,104 |
Operating cash flows used for leases | 264,424 |
Noncash right-of-use assets recorded for lease liabilities: | |
Operating lease right-of-use assets | 1,073,660 |
In exchange for new lease liabilities during the period | $ 122,078 |
Weighted-average remaining lease term | 4 years 7 months 28 days |
Weighted-average discount rate | 4.20% |
Topic 842 [Member] | |
Noncash right-of-use assets recorded for lease liabilities: | |
Operating lease right-of-use assets | $ 1,035,062 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Land | $ 90,862 | $ 83,163 |
Buildings and improvements | 349,066 | 246,893 |
Furniture, fixtures and equipment | 454,837 | 374,706 |
Leasehold improvements | 453,805 | 401,514 |
Total property, plant and equipment | 1,348,570 | 1,106,276 |
Less accumulated depreciation and amortization | 609,645 | 520,819 |
Property, plant and equipment, net | $ 738,925 | $ 585,457 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued inventory purchases | $ 48,923 | $ 40,493 |
Accrued payroll and taxes | 92,264 | 72,822 |
Return reserve liability | 69,048 | 48,466 |
Accrued expenses | $ 210,235 | $ 161,781 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - 2019 Credit Agreement [Member] - USD ($) | Nov. 21, 2019 | Dec. 31, 2019 | Jun. 30, 2015 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Senior unsecured revolving credit facility | $ 500,000,000 | ||
Maturity date of credit agreement | Nov. 21, 2024 | ||
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of credit agreement | Jun. 30, 2020 | ||
Maximum amount of credit facility | $ 250,000,000 | ||
Line of credit facility, interest rate description | At the Company’s option, any loan (other than swingline loans) will bear interest at a rate equal to (a) LIBOR plus an applicable margin between 1.125% and 1.625% based upon the Company’s Total Adjusted Net Leverage Ratio (as defined in the 2019 Credit Agreement) or (b) a base rate (defined as the highest of (i) the Federal Funds Rate plus 0.50%, (ii) the Bank of America prime rate and (iii) LIBOR plus 1.00%) plus an applicable margin between 0.125% and 0.625% based upon the Company’s Total Adjusted Net Leverage Ratio. | ||
Increase in leverage ratio | 4.25% | ||
Origination, arrangement and legal fees | $ 1,600,000 | ||
Outstanding letters of credit | $ 0 | ||
Line of Credit [Member] | Federal Funds Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of line of credit agreement | 0.50% | ||
Line of Credit [Member] | LIBOR plus 1.00% [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of line of credit agreement | 1.00% | ||
Line of Credit [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, increase | $ 250,000,000 | ||
Line of credit facility, fee percentage | 0.25% | ||
Adjusted net leverage ratio | 3.75% | ||
Line of Credit [Member] | Maximum [Member] | LIBOR Loans [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of line of credit agreement | 1.625% | ||
Line of Credit [Member] | Maximum [Member] | LIBOR plus 1.00% [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of line of credit agreement | 0.625% | ||
Line of Credit [Member] | Maximum [Member] | Letter of Credit Fee [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fee percentage | 1.625% | ||
Line of Credit [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fee percentage | 0.125% | ||
Line of Credit [Member] | Minimum [Member] | LIBOR Loans [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of line of credit agreement | 1.125% | ||
Line of Credit [Member] | Minimum [Member] | LIBOR plus 1.00% [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of line of credit agreement | 0.125% | ||
Line of Credit [Member] | Minimum [Member] | Letter of Credit Fee [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fee percentage | 1.125% | ||
Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Maximum amount of credit facility | $ 100,000,000 | ||
Swingline Loans [Member] | |||
Debt Instrument [Line Items] | |||
Maximum amount of credit facility | $ 25,000,000 |
Short and Long-term Borrowing_2
Short and Long-term Borrowings - Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 115,417 | $ 89,785 |
Less: current installments | 66,234 | 1,666 |
Total long-term borrowings | 49,183 | 88,119 |
Loan Payable to a Bank, Variable-rate Interest at 4.275% Per Annum, Due September 2023 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 48,791 | 18,626 |
Loan Payable to a Bank, Variable-rate Interest at 3.915% Per Annum, Due October 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 2,541 | |
Modification Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 63,700 | |
Modification Loan [Member] | Construction Loan Agreement [Member] | Joint Venture with HF Logistics [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 63,692 | 65,148 |
Note payable to Luen Thai Enterprise, LTD [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 393 | 5,800 |
Notes payable to TCF Finance [Member] | Equipment Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 210 |
Short and Long-term Borrowing_3
Short and Long-term Borrowings - Long-Term Borrowings (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 4.275% |
Note payable to Luen Thai Enterprise, LTD [Member] | |
Debt Instrument [Line Items] | |
Balloon payment required under note payable | $ 393 |
Due date for note payable | 2021-01 |
Equipment Notes [Member] | Notes payable to TCF Finance [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | $ 30 |
Fixed interest rate of note payable | 5.24% |
Due date for note payable | 2019-07 |
Frequency of periodic payment | monthly |
Loan Payable to a Bank, Variable-rate Interest at 4.275% Per Annum, Due September 2023 | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 4.275% |
Due date for loan payable | 2023-09 |
Loan Payable to a Bank, Variable-rate Interest at 3.915% Per Annum, Due October 2020 | |
Debt Instrument [Line Items] | |
Variable interest rate of note payable | 3.915% |
Due date for loan payable | 2020-10 |
Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | Modification Loan [Member] | |
Debt Instrument [Line Items] | |
Monthly repayment installment of note payable | $ 348 |
Variable interest rate of note payable | 5.24% |
Balloon payment required under note payable | $ 62,843 |
Due date for note payable | 2020-08 |
Frequency of periodic payment | monthly |
Short and Long-term Borrowing_4
Short and Long-term Borrowings - Aggregate Maturities of Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 63,692 | |
2021 | 3,290 | |
2022 | 36,848 | |
2023 | 11,587 | |
Long-term borrowings | $ 115,417 | $ 89,785 |
Short and Long-term Borrowing_5
Short and Long-term Borrowings - Additional Information (Detail) | Sep. 29, 2018CNY (¥) | Aug. 11, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 16, 2012USD ($) | Apr. 30, 2010USD ($) |
Debt Instrument [Line Items] | ||||||
Debt instrument variable rate | 4.275% | |||||
Interest rate swap agreement date | Aug. 12, 2015 | |||||
Derivative effective dates | Aug. 12, 2015 | |||||
Maturity date of swap agreement | Aug. 12, 2022 | |||||
Long-term borrowings | $ 115,417,000 | $ 89,785,000 | ||||
Modification Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowings | $ 63,700,000 | |||||
China DC Loan Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount of credit facility | ¥ | ¥ 700,000,000 | |||||
Debt instrument maturity date | Sep. 28, 2023 | |||||
Line of credit facility, frequency of payment and payment term | Interest will be paid quarterly. The interest rate will float and be calculated at a reference rate provided by the People’s Bank of China. The interest rate at December 31, 2019 was 4.275% and may increase or decrease over the life of the loan, and will be evaluated every 12 months. The principal of the loan will be repaid in semi-annual installments, beginning in 2021, of variable amounts as specified in the China DC Loan Agreement. | |||||
Line of credit facility, outstanding amount | $ 48,800,000 | |||||
Construction Loan Agreement [Member] | Joint Venture with HF Logistics [Member] | Interest Rate Swap [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swap agreement date | Aug. 14, 2015 | |||||
Derivative effective dates | Aug. 12, 2015 | |||||
Maturity date of swap agreement | Aug. 12, 2022 | |||||
Derivative early termination date | Aug. 1, 2020 | |||||
Effective fixed interest rate of loan with swap | 4.08% | |||||
Construction Loan Agreement [Member] | Original Modified Loan [Member] | Joint Venture with HF Logistics [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument maturity date | Oct. 30, 2015 | |||||
Construction Loan Agreement [Member] | Modification Loan [Member] | Joint Venture with HF Logistics [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument maturity date | Aug. 12, 2020 | |||||
Debt instrument variable rate | 5.24% | |||||
Outstanding principal balance of the original loan | $ 77,300,000 | |||||
Capital contribution made by the company | 38,700,000 | |||||
Ownership percentage joint venture | 50.00% | |||||
Current borrowing capacity | $ 70,000,000 | |||||
Payment of accrued interest, loan fees and other closing costs | $ 900,000 | |||||
Distribution made by JV | $ 31,300,000 | |||||
Description of maturity date of debt instrument | The maturity date of the New Loan is August 12, 2020, which HF-T1 has one option to extend by an additional 24 months, or until August 12, 2022, upon payment of a fee and satisfaction of certain customary conditions. | |||||
Long-term borrowings | $ 63,692,000 | $ 65,148,000 | ||||
Construction Loan Agreement [Member] | Modification Loan [Member] | Joint Venture with HF Logistics [Member] | LIBOR Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | LIBOR Daily Floating Rate (as defined in the Amended Loan Agreement) plus a margin of 2%. | |||||
Interest rate of line of credit agreement | 2.00% | |||||
Construction Loan Agreement [Member] | Maximum [Member] | Original Loan [Member] | Joint Venture with HF Logistics [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing under loan agreement | $ 55,000,000 | |||||
Equipment Notes [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing under loan agreement | $ 80,000,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Interest rate swap agreement date | Aug. 12, 2015 |
Cash flow hedge, variable rate debt | $ 70 |
Derivative notional amount | $ 63.7 |
Maturity date of swap agreement | Aug. 12, 2022 |
Weighted-average fixed rate | 2.08% |
Derivative instrument interest rate description | 30-day LIBOR rate |
Derivative, fixed interest rate | 4.08% |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Summary of Other Long-Term Liabilites (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Long Term Liabilities Disclosure [Abstract] | ||
Other long term liabilities | $ 30,675 | $ 21,458 |
Income taxes payable | 72,414 | 78,730 |
Total other long-term liabilities | $ 103,089 | $ 100,188 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Minimum percentage of interest-bearing open purchase arrangements | 0.00% | ||
Maximum percentage of interest-bearing open purchase arrangements | 0.50% | ||
Minimum financing days of interest- bearing open purchase arrangements | 30 days | ||
Maximum financing days of interest- bearing open purchase arrangements | 60 days | ||
Amounts outstanding under interest- bearing open purchase arrangements | $ 214.7 | $ 180.5 | |
Interest expense under interest- bearing open purchase arrangements | 7.9 | $ 3.3 | $ 4.8 |
Open purchase commitments | $ 1,071.9 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, par value | $ 0.001 | $ 0.001 | |
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, shares authorized | 500,000,000 | 500,000,000 | |
Common Stock, par value | $ 0.001 | $ 0.001 | |
Class B Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, shares authorized | 75,000,000 | 75,000,000 | |
Common Stock, par value | $ 0.001 | $ 0.001 | |
Certain Class B stockholders converted into Class A | 1,575,509 | 561,876 | 0 |
Noncontrolling Interests - Carr
Noncontrolling Interests - Carrying Amounts and Classification of Assets and Liabilities for VIEs (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 2,819,591 | $ 2,472,140 |
Non-current assets | 2,073,352 | 756,115 |
TOTAL ASSETS | 4,892,943 | 3,228,255 |
Current liabilities | 1,238,231 | 850,222 |
Non-current liabilities | 1,118,605 | 188,758 |
Total liabilities | 2,356,836 | 1,038,980 |
Variable interest entity, primary beneficiary [Member] | HF Logistics [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 5,297 | 2,121 |
Non-current assets | 104,527 | 98,148 |
TOTAL ASSETS | 109,824 | 100,269 |
Current liabilities | 64,600 | 2,738 |
Non-current liabilities | 1,009 | 64,702 |
Total liabilities | 65,609 | 67,440 |
Variable interest entity, primary beneficiary [Member] | Product distribution joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Current assets | 747,668 | 540,768 |
Non-current assets | 325,283 | 128,250 |
TOTAL ASSETS | 1,072,951 | 669,018 |
Current liabilities | 430,282 | 294,640 |
Non-current liabilities | 135,903 | 26,444 |
Total liabilities | $ 566,185 | $ 321,084 |
Noncontrolling Interests - Summ
Noncontrolling Interests - Summary of Net Earnings Attributable to, Distribution to and Contribution from Non-controlling (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Net earnings attributable to non-controlling interests | $ 80,692 | $ 70,232 | $ 55,914 |
Distributions to non-controlling interests of consolidated entity | 38,675 | 27,000 | 25,953 |
Contributions from non-controlling interests of consolidated entity | 46 | ||
HF Logistics-SKX, LLC [Member] | |||
Variable Interest Entity [Line Items] | |||
Distributions to non-controlling interests of consolidated entity | 3,784 | 4,374 | 3,787 |
Contributions from non-controlling interests of consolidated entity | 7,565 | ||
Skechers China Limited [Member] | |||
Variable Interest Entity [Line Items] | |||
Distributions to non-controlling interests of consolidated entity | 32,245 | 19,915 | 20,620 |
Skechers Southeast Asia Limited [Member] | |||
Variable Interest Entity [Line Items] | |||
Distributions to non-controlling interests of consolidated entity | 2,028 | 2,025 | 1,347 |
Skechers Hong Kong Limited [Member] | |||
Variable Interest Entity [Line Items] | |||
Distributions to non-controlling interests of consolidated entity | 618 | 618 | 199 |
India Distribution Joint Ventures [Member] | |||
Variable Interest Entity [Line Items] | |||
Distributions to non-controlling interests of consolidated entity | $ 68 | ||
Skechers Korea Co., Ltd. [Member] | |||
Variable Interest Entity [Line Items] | |||
Contributions from non-controlling interests of consolidated entity | 6,594 | ||
Skechers Footwear Ltd. (Israel) [Member] | |||
Variable Interest Entity [Line Items] | |||
Contributions from non-controlling interests of consolidated entity | $ 46 | ||
Manhattan SKMX, S. de R.L. de C.V. [Member] | |||
Variable Interest Entity [Line Items] | |||
Contributions from non-controlling interests of consolidated entity | $ 22,776 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Feb. 06, 2018 | |
Class of Stock [Line Items] | ||
Stock repurchase program expiration date | Feb. 6, 2021 | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Stock repurchase program authorized amount | $ 150 |
Share Repurchase Program - Summ
Share Repurchase Program - Summary of Class A Common Stock Repurchase Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||
Total cost of shares repurchased (in thousands): | $ 30,019 | $ 99,977 |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares repurchased | 968,724 | 3,656,277 |
Average cost per share | $ 30.99 | $ 27.34 |
Total cost of shares repurchased (in thousands): | $ 30,019 | $ 99,977 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Line Items] | |||
Options excluded from the computation of diluted earnings | 10,838 | 352,169 | 116,762 |
Class A Common Stock [Member] | |||
Earnings Per Share [Line Items] | |||
Common stock, voting rights | one vote per share | ||
Class B Common Stock [Member] | |||
Earnings Per Share [Line Items] | |||
Common stock, voting rights | ten votes per share |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Net Earnings and Weighted Average Common Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per share | |||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 59,532 | $ 103,090 | $ 75,180 | $ 108,758 | $ 47,377 | $ 90,728 | $ 45,284 | $ 117,652 | $ 346,560 | $ 301,041 | $ 179,190 |
Weighted average common shares outstanding | 153,392 | 155,815 | 155,651 | ||||||||
Basic earnings per share attributable to Skechers U.S.A., Inc. | $ 0.39 | $ 0.67 | $ 0.49 | $ 0.71 | $ 0.31 | $ 0.58 | $ 0.29 | $ 0.21 | $ 2.26 | $ 1.93 | $ 1.15 |
Diluted earnings per share | |||||||||||
Net earnings attributable to Skechers U.S.A., Inc. | $ 59,532 | $ 103,090 | $ 75,180 | $ 108,758 | $ 47,377 | $ 90,728 | $ 45,284 | $ 117,652 | $ 346,560 | $ 301,041 | $ 179,190 |
Weighted average common shares outstanding | 153,392 | 155,815 | 155,651 | ||||||||
Dilutive effect of nonvested shares | 759 | 635 | 872 | ||||||||
Weighted average common shares outstanding | 154,151 | 156,450 | 156,523 | ||||||||
Diluted earnings per share attributable to Skechers U.S.A., Inc. | $ 0.39 | $ 0.67 | $ 0.49 | $ 0.71 | $ 0.31 | $ 0.58 | $ 0.29 | $ 0.21 | $ 2.25 | $ 1.92 | $ 1.14 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 17, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expense | $ 41,100 | $ 30,500 | $ 28,900 | |
Excess tax benefits recorded in earnings | 300 | 1,600 | 2,600 | |
Unrecognized compensation cost related to nonvested common shares | $ 81,300 | |||
Weighted average period for recognition of cost | 2 years 1 month 6 days | |||
Total fair value of shares vested | $ 36,300 | 22,300 | ||
Proceeds from issuance of common stock under the employee stock purchase plan | $ 6,173 | $ 5,297 | $ 5,479 | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares from the date of grant | 1 year | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares from the date of grant | 4 years | |||
Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 261,000 | 222,000 | 240,000 | |
2017 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares that remain available for grant | 6,515,750 | |||
2017 Plan [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved for issuance | 10,000,000 | |||
2018 ESPP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of employee's compensation to purchase common stock | 15.00% | |||
Percentage of price of common stock purchased | 85.00% | |||
2018 ESPP [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for sale under employee stock purchase plan | 5,000,000 | |||
2018 ESPP and 2008 ESPP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from issuance of common stock under the employee stock purchase plan, Shares | 260,630 | 221,889 | 240,000 | |
Proceeds from issuance of common stock under the employee stock purchase plan | $ 6,200 | $ 5,300 | $ 5,500 |
Stock Compensation - Summary of
Stock Compensation - Summary of Nonvested Shares Related to the 2007 and 2017 Plan (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Nonvested, Shares, Beginning of Period | 2,968,941 | 2,303,557 | 3,043,164 |
Granted, Shares | 1,603,000 | 1,811,000 | 495,600 |
Vested/Released, Shares | (1,116,868) | (1,018,283) | (1,157,207) |
Cancelled, Shares | (28,250) | (127,333) | (78,000) |
Nonvested, Shares, End of Period | 3,426,823 | 2,968,941 | 2,303,557 |
Nonvested, Weighted Average Grant-Date Fair Value, Beginning of Period | $ 34.79 | $ 26.25 | $ 24.57 |
Granted, Weighted Average Grant-Date Fair Value | 28.45 | 38.05 | 24.69 |
Vested/Released, Weighted Average Grant-Date Fair Value | 32.46 | 21.91 | 20.73 |
Cancelled, Weighted Average Grant-Date Fair Value | 39.40 | 29.71 | 32.62 |
Nonvested, Weighted Average Grant-Date Fair Value, End of Period | $ 32.55 | $ 34.79 | $ 26.25 |
Income Taxes - Provisions for I
Income Taxes - Provisions for Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal: | |||
Current | $ 22,899 | $ 11,379 | $ 110,448 |
Deferred | (3,583) | (3,971) | 3,768 |
Total federal | 19,316 | 7,408 | 114,216 |
State: | |||
Current | 6,384 | 5,408 | 2,747 |
Deferred | (813) | (1,316) | (3,356) |
Total state | 5,571 | 4,092 | (609) |
Foreign: | |||
Current | 66,656 | 53,071 | 40,147 |
Deferred | (2,790) | (3,960) | (4,598) |
Total foreign | 63,866 | 49,111 | 35,549 |
Total income taxes (benefit) | $ 88,753 | $ 60,611 | $ 149,156 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Income Taxes [Line Items] | ||||
Maximum measurement period to complete accounting | 1 year | |||
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense (benefit) | $ 89,000,000 | $ 99,900,000 | ||
Reduction in provisional tax | 10,900,000 | |||
U.S. federal and state statutory rate | 25.00% | |||
Income (loss) before income taxes | $ 516,005,000 | 431,884,000 | 384,260,000 | |
Income tax expense | $ 88,753,000 | $ 60,611,000 | $ 149,156,000 | |
Effective tax rate | 17.20% | 14.00% | 38.80% | |
Foreign tax benefit | $ 63,866,000 | $ 49,111,000 | $ 35,549,000 | |
Cash and cash equivalents | 824,876,000 | 872,237,000 | 736,431,000 | $ 718,536,000 |
Cumulative total earnings | 566,400,000 | |||
Increase in valuation allowance | 2,900,000 | |||
Increase in unrecognized tax benefits | 2,600,000 | |||
Unrecognized tax benefits that would be recorded as reduction in income tax expense if recognized | 10,600,000 | |||
Interest and penalties | 400,000 | 200,000 | 500,000 | |
Accrued interest and penalties | 2,100,000 | 1,800,000 | ||
Prior year unrecognized tax benefits by result of expiring statutes | 842,000 | 512,000 | ||
Reduction in prior period unrecognized tax benefits | 0 | |||
Income Tax Examination [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Reasonably possible decrease in unrecognized tax benefits in next twelve month | 900,000 | |||
Non-US [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Cash and cash equivalents | $ 566,400,000 | |||
Non-US [Member] | Geographic concentration risk [Member] | Cash and Cash Equivalents Geographical Area [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Percentage of cash and cash equivalents | 68.70% | |||
Non-US [Member] | Funds Available For Repatriation [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Cash and cash equivalents | $ 220,300,000 | |||
Non-U.S jurisdictions [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Income (loss) before income taxes | $ 511,000,000 | 511,000,000 | ||
Average income tax rate | 12.50% | |||
Income tax expense | $ 63,900,000 | |||
Income before income taxes relates to foreign losses | 7,600,000 | |||
Foreign tax benefit | 0 | |||
Net operating loss carry-forwards | 154,000,000 | 121,500,000 | ||
Valuation allowance against deferred tax assets | 25,900,000 | 21,400,000 | ||
U.S Jurisdictions [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Income (loss) before income taxes | $ 4,999,000 | 16,597,000 | 25,628,000 | |
Average income tax rate | 498.00% | |||
Income tax expense | $ 24,887,000 | 11,500,000 | 113,607,000 | |
Jersey [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Income (loss) before income taxes | 245,561,000 | 213,327,000 | 198,048,000 | |
Increase in earnings before income taxes | 32,300,000 | |||
Other jurisdictions [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Income (loss) before income taxes | 101,297,000 | 75,601,000 | 64,488,000 | |
Income tax expense | 28,059,000 | 24,797,000 | $ 14,242,000 | |
State [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Tax credits due to operating loss carried back | 10,500,000 | 8,900,000 | ||
Net operating loss carry-forwards | 31,000,000 | 31,100,000 | ||
Valuation allowance against deferred tax assets | $ 0 | $ 0 | ||
Tax credit and operating loss carry-forward expiration, description | These tax credit and net operating loss carry-forward amounts do not begin to expire until 2023 and 2032, respectively. | |||
Domestic and Foreign [Member] | Settlement with Taxing Authority [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Reasonably possible decrease in unrecognized tax benefits in next twelve month | $ 1,600,000 | |||
Minimum [Member] | Non-U.S jurisdictions [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Statutory federal rate | 0.00% | |||
Minimum [Member] | Other jurisdictions [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Consolidated earnings (loss) before taxes, percent | 5.00% | |||
Maximum [Member] | Non-U.S jurisdictions [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Statutory federal rate | 34.60% |
Income Taxes - Schedule of Earn
Income Taxes - Schedule of Earnings (Loss) before Income Taxes and Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Effective tax rate | 17.20% | 14.00% | 38.80% |
Earnings (loss) before income taxes | $ 516,005 | $ 431,884 | $ 384,260 |
Income tax expense | 88,753 | 60,611 | 149,156 |
Domestic [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 4,999 | 16,597 | 25,628 |
Income tax expense | 24,887 | 11,500 | 113,607 |
Hong Kong [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 50,131 | 48,352 | 17,778 |
Income tax expense | 4,303 | 8,106 | 5,030 |
Peoples Republic of China [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 121,702 | 89,429 | 95,668 |
Income tax expense | 30,320 | 19,595 | 12,971 |
Jersey [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 245,561 | 213,327 | 198,048 |
Non-benefited loss operations [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | (7,685) | (11,422) | (17,350) |
Income tax expense | 1,184 | (3,387) | 3,306 |
Other jurisdictions [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Earnings (loss) before income taxes | 101,297 | 75,601 | 64,488 |
Income tax expense | $ 28,059 | $ 24,797 | $ 14,242 |
Income Taxes - Schedule of Ea_2
Income Taxes - Schedule of Earnings (Loss) before Income Taxes and Income Tax Expense (Benefit) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Individual foreign jurisdiction income threshold | 5.00% | ||
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense (benefit) | $ 89 | $ 99.9 |
Income Taxes - Summary of Earni
Income Taxes - Summary of Earnings before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax expense | $ 108,361 | $ 90,696 | $ 134,491 |
State income tax, net of federal benefit | 1,278 | 3,051 | 297 |
Rate differential on foreign income | (43,327) | (40,065) | (95,565) |
Change in unrecognized tax benefits | 2,739 | 820 | 1,449 |
Non-deductible compensation | 7,126 | 6,269 | 6,592 |
Tax credits | (3,264) | (2,539) | (2,151) |
Excess tax benefit on share based compensation | (251) | (1,557) | (2,571) |
U.S. tax rate change | 1,923 | ||
U.S. transition tax | (10,963) | 98,015 | |
U.S. tax on foreign earnings | 9,786 | 9,956 | |
Other | 3,440 | 2,077 | (1,110) |
Change in valuation allowance | 2,865 | 2,866 | 7,786 |
Total income taxes (benefit) | $ 88,753 | $ 60,611 | $ 149,156 |
Effective tax rate | 17.20% | 14.00% | 38.80% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Inventory adjustments | $ 6,954 | $ 5,779 |
Accrued expenses | 50,847 | 42,637 |
Allowances for bad debts and chargebacks | 4,809 | 3,549 |
Loss carryforwards | 28,605 | 24,834 |
Business credit carryforward | 8,262 | 7,015 |
Share-based compensation | 4,521 | 4,283 |
Operating lease liabilities | 261,984 | |
Valuation allowance | (33,044) | (30,179) |
Total deferred tax assets | 332,938 | 57,918 |
Deferred tax liabilities: | ||
Prepaid expenses | 5,586 | 6,263 |
Right-of-use assets | 261,984 | |
Depreciation on property, plant and equipment | 16,602 | 12,674 |
Total deferred tax liabilities | 284,172 | 18,937 |
Net deferred tax assets | $ 48,766 | $ 38,981 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 7,975 | $ 7,381 |
Additions for current year tax positions | 1,795 | 1,161 |
Additions for prior year tax positions | 1,638 | |
Reductions for prior year tax positions | (55) | |
Reductions related to lapse of statute of limitations | (842) | (512) |
Ending balance | $ 10,566 | $ 7,975 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Maximum annual contributions per employee percent | 15.00% | |
Minimum age for employees to be covered under profit sharing plan | 21 years | |
Minimum service period for employees to be covered under profit sharing plan | 6 months | |
Vesting period for company contributions to benefit plan | 6 years | |
Employer contribution | $ 2,400,000 | $ 2,300,000 |
Deferred Compensation Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contribution | $ 100,000 | $ 100,000 |
Business and Credit Concentra_3
Business and Credit Concentrations - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($)Customer | |
Concentration Risk [Line Items] | |||
Credit losses attributable to write-offs (recoveries) | $ 31.6 | $ 8 | $ 12.8 |
Sales return expense | $ 46.1 | $ 20.2 | $ 5.6 |
Sales [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers accounting for more than 10% | Customer | 0 | 0 | 0 |
Number of largest customers | Customer | 5 | 5 | 5 |
Percentage of concentration risk | 9.60% | 10.40% | 10.50% |
Net Trade Receivable [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers accounting for more than 10% | Customer | 0 | 0 | |
Domestic [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 228.5 | $ 213.7 | |
Non-US [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | 440.9 | 313.8 | |
International sales | 3,022,600 | 2,514,000 | $ 2,108,700 |
Net total assets held outside the United States | $ 2,643,800 | $ 1,611,200 |
Business and Credit Concentra_4
Business and Credit Concentrations - Company's Top Five Manufacturers Produced (Detail) - Cost of Goods, Total [Member] - Supplier Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||
Percentage of total production | 40.60% | 41.90% | 47.50% |
Manufacturer One [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 16.00% | 12.80% | 17.90% |
Manufacturer Two [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 7.30% | 10.10% | 11.10% |
Manufacturer Three [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 7.20% | 8.60% | 8.80% |
Manufacturer Four [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 5.10% | 5.40% | 5.40% |
Manufacturer Five [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total production | 5.00% | 5.00% | 4.30% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Management [Member] | |||
Related Party Transaction [Line Items] | |||
Company paid to related party | $ 58,000 | $ 80,000 | $ 172,000 |
Ownership owned by President and director of the Company | 12.00% | ||
Percentage of interest owned by other officers | 5.00% | ||
Outstanding accounts receivable from related party | $ 0 | 0 | |
Outstanding accounts payable to related party | 0 | 0 | |
Contributions to Skechers Foundation for various charitable purposes | 1,000,000 | 1,000,000 | 1,000,000 |
Advances receivables from officers and employees | 800,000 | 800,000 | |
Other significant transactions with or payables to officers, directors or significant shareholders of the company | 0 | ||
Redondo Beach Hospitality Company, LLC ("RBHC") [Member] | |||
Related Party Transaction [Line Items] | |||
Company paid to related party | $ 124,000 | 167,000 | $ 201,000 |
Ownership owned by President and director of the Company | 5.00% | ||
Percentage of interest owned by other officers | 3.00% | ||
Outstanding accounts receivable from related party | $ 0 | 0 | |
Outstanding accounts payable to related party | $ 0 | $ 0 |
Segment and Geographic Report_3
Segment and Geographic Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment and Geographic Report_4
Segment and Geographic Reporting - Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales, Total | $ 1,330,732 | $ 1,353,998 | $ 1,258,565 | $ 1,276,756 | $ 1,080,798 | $ 1,176,395 | $ 1,134,797 | $ 1,250,078 | $ 5,220,051 | $ 4,642,068 | $ 4,164,160 |
Gross profit | 637,749 | $ 653,064 | $ 609,835 | $ 590,509 | 515,678 | $ 563,866 | $ 560,957 | $ 583,104 | 2,491,157 | 2,223,605 | 1,938,889 |
Identifiable assets | 4,892,943 | 3,228,255 | 4,892,943 | 3,228,255 | |||||||
Additions to property, plant and equipment | 236,111 | 143,036 | 135,976 | ||||||||
Domestic wholesale [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales, Total | 1,247,550 | 1,259,615 | 1,249,287 | ||||||||
Gross profit | 457,944 | 468,340 | 464,609 | ||||||||
Identifiable assets | 1,472,323 | 1,428,463 | 1,472,323 | 1,428,463 | |||||||
Additions to property, plant and equipment | 75,037 | 29,717 | 20,055 | ||||||||
International wholesale [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales, Total | 2,462,632 | 2,054,770 | 1,729,906 | ||||||||
Gross profit | 1,133,573 | 976,739 | 786,675 | ||||||||
Identifiable assets | 2,100,042 | 1,423,048 | 2,100,042 | 1,423,048 | |||||||
Additions to property, plant and equipment | 109,205 | 63,316 | 47,410 | ||||||||
Retail [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales, Total | 1,509,869 | 1,327,683 | 1,184,967 | ||||||||
Gross profit | 899,640 | 778,526 | 687,605 | ||||||||
Identifiable assets | $ 1,320,578 | $ 376,744 | 1,320,578 | 376,744 | |||||||
Additions to property, plant and equipment | $ 51,869 | $ 50,003 | $ 68,511 |
Segment and Geographic Report_5
Segment and Geographic Reporting - Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales, Total | $ 1,330,732 | $ 1,353,998 | $ 1,258,565 | $ 1,276,756 | $ 1,080,798 | $ 1,176,395 | $ 1,134,797 | $ 1,250,078 | $ 5,220,051 | $ 4,642,068 | $ 4,164,160 |
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, net | 738,925 | 585,457 | 738,925 | 585,457 | |||||||
Domestic [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales, Total | 2,197,391 | 2,128,100 | 2,055,475 | ||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, net | 439,132 | 385,584 | 439,132 | 385,584 | |||||||
Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales, Total | 167,963 | 171,864 | 160,367 | ||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, net | 7,286 | 9,081 | 7,286 | 9,081 | |||||||
Other international [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales, Total | 2,854,697 | 2,342,104 | $ 1,948,318 | ||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, net | $ 292,507 | $ 190,792 | $ 292,507 | $ 190,792 |
Summary of Quarterly Financia_3
Summary of Quarterly Financial Information - Summary of Unaudited Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||||||||
Sales | $ 1,330,732 | $ 1,353,998 | $ 1,258,565 | $ 1,276,756 | $ 1,080,798 | $ 1,176,395 | $ 1,134,797 | $ 1,250,078 | $ 5,220,051 | $ 4,642,068 | $ 4,164,160 |
Gross profit | 637,749 | 653,064 | 609,835 | 590,509 | 515,678 | 563,866 | 560,957 | 583,104 | 2,491,157 | 2,223,605 | 1,938,889 |
Net earnings (loss) | 82,501 | 121,734 | 91,998 | 131,019 | 67,105 | 106,051 | 60,859 | 137,258 | 427,252 | 371,273 | 235,104 |
Net earnings (loss) attributable to Skechers U.S.A., Inc. | $ 59,532 | $ 103,090 | $ 75,180 | $ 108,758 | $ 47,377 | $ 90,728 | $ 45,284 | $ 117,652 | $ 346,560 | $ 301,041 | $ 179,190 |
Net earnings (loss) per share: | |||||||||||
Basic | $ 0.39 | $ 0.67 | $ 0.49 | $ 0.71 | $ 0.31 | $ 0.58 | $ 0.29 | $ 0.21 | $ 2.26 | $ 1.93 | $ 1.15 |
Diluted | $ 0.39 | $ 0.67 | $ 0.49 | $ 0.71 | $ 0.31 | $ 0.58 | $ 0.29 | $ 0.21 | $ 2.25 | $ 1.92 | $ 1.14 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for chargebacks [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF YEAR | $ 18,773 | $ 12,807 | $ 10,974 |
CHARGED TO REVENUE COSTS AND EXPENSES | 3,931 | 12,629 | 7,507 |
DEDUCTIONS AND WRITE-OFFS | (5,291) | (6,663) | (5,674) |
BALANCE AT END OF YEAR | 17,413 | 18,773 | 12,807 |
Allowance for doubtful accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF YEAR | 6,843 | 7,709 | 5,620 |
CHARGED TO REVENUE COSTS AND EXPENSES | 2,471 | 2,856 | 5,266 |
DEDUCTIONS AND WRITE-OFFS | (2,621) | (3,722) | (3,177) |
BALANCE AT END OF YEAR | 6,693 | 6,843 | 7,709 |
Liability for sales returns and allowances [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF YEAR | 48,466 | 30,664 | 25,053 |
CHARGED TO REVENUE COSTS AND EXPENSES | 46,054 | 20,245 | 5,625 |
DEDUCTIONS AND WRITE-OFFS | (25,472) | (2,443) | (14) |
BALANCE AT END OF YEAR | 69,048 | 48,466 | 30,664 |
Reserve for shrinkage [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF YEAR | 1,617 | 1,737 | 542 |
CHARGED TO REVENUE COSTS AND EXPENSES | 5,149 | 5,771 | 2,020 |
DEDUCTIONS AND WRITE-OFFS | (5,802) | (5,891) | (825) |
BALANCE AT END OF YEAR | 964 | 1,617 | 1,737 |
Reserve for obsolescence [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF YEAR | 11,136 | 7,019 | 10,928 |
CHARGED TO REVENUE COSTS AND EXPENSES | 9,444 | 6,461 | 130 |
DEDUCTIONS AND WRITE-OFFS | (14,816) | (2,344) | (4,039) |
BALANCE AT END OF YEAR | $ 5,764 | $ 11,136 | $ 7,019 |