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)

6 Months Ended

Jun. 30, 2020

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⁾	June 30, 2020		December 31, 2019
Current assets	$	45,712	$	5,297
Non-current assets		106,911		104,527
Total assets	$	152,623	$	109,824

Current liabilities	$	2,515	$	64,600
Non-current liabilities		133,191		1,009
Total liabilities	$	135,706	$	65,609

Product distribution joint ventures ⁽²⁾	June 30, 2020		December 31, 2019
Current assets	$	750,237	$	747,668
Non-current assets		502,841		325,283
Total assets	$	1,253,078	$	1,072,951

Current liabilities	$	503,295	$	430,282
Non-current liabilities		214,615		135,903
Total liabilities	$	717,910	$	566,185

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

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

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Net earnings attributable to non-controlling interests	$	12,880	$	16,818	$	4,939	$	39,079
Distributions to:
HF Logistics-SKX, LLC		16,189		834		26,872		1,847
Skechers China Limited		—		19,646		4,183		19,646
Skechers South Asia Private Limited		—		—		—		11,629
Non-cash contributions from:
HF Logistics-SKX, LLC		—		—		—		7,565
Manhattan SKMX, S. de R.L. de C.V.		—		22,776		49,045		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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