Skechers U.S.A., Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Non-Controlling Interests (Tables)

Non-Controlling Interests (Tables)

9 Months Ended

Sep. 30, 2019

Carrying Amounts and Classification of Assets and Liabilities for VIEs

The following VIEs are consolidated into the Company’s condensed consolidated financial statements and the carrying amounts and classification of assets and liabilities were as follows (in thousands):

HF Logistics ⁽¹⁾	September 30, 2019		December 31, 2018
Current assets	$	6,278	$	2,121
Non-current assets		105,161		98,148
Total assets	$	111,439	$	100,269

Current liabilities	$	65,305	$	2,738
Non-current liabilities		1,009		64,702
Total liabilities	$	66,314	$	67,440

Product distribution joint ventures ⁽²⁾	September 30, 2019		December 31, 2018
Current assets	$	685,514	$	540,768
Non-current assets		269,293		128,250
Total assets	$	954,807	$	669,018

Current liabilities	$	417,534	$	294,640
Non-current liabilities		142,435		26,444
Total liabilities	$	559,969	$	321,084

⁽¹⁾	Includes HF Logistics-SKX, LLC and HF Logistics-SKX, T2, LLC

⁽²⁾	Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, and Manhattan SKMX, S. de R.L. de C.V. (Mexico).

Net Earnings Attributable to Non-controlling Interest, Distributions and Contributions

The following is a summary of net earnings attributable to, distributions to and contributions from non-controlling interests (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net earnings attributable to non-controlling interests	$	18,644	$	15,323	$	57,723	$	50,504
Distributions to:
HF Logistics-SKX, LLC		870		1,085		2,718		3,292
Skechers China Limited		12,600		7,270		32,245		12,660
Skechers South Asia Private Limited		—		—		—		68
Skechers Southeast Asia Limited		2,027		2,025		2,027		2,025
Skechers Hong Kong Limited		618		618		618		618
Contributions from:
HF Logistics-SKX, LLC		—		—		7,565		—
Manhattan SKMX, S. de R.L. de C.V.		—		—		22,776		—

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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