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

Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2020

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

(4)

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is summarized as follows:

	As of December 31,
(in thousands)	2020		2019
Land	$	95,712	$	90,862
Buildings and improvements		531,059		349,066
Furniture, fixtures and equipment		485,349		454,837
Leasehold improvements		506,459		453,805
Total property, plant and equipment		1,618,579		1,348,570
Less accumulated depreciation and amortization		683,138		609,645
Property, plant and equipment, net	$	935,441	$	738,925

Depreciation expense for the year ended December 31, 2020 was $115.5 million as calculated using the straight-line method, which is based on the following estimated useful lives:

Buildings		20 years
Building improvements		10 years
Furniture, fixtures and equipment		5 to 20 years
Leasehold improvements		Shorter of useful life or remaining lease term

The Company reviews all stores for impairment annually or when facts and circumstances indicate that the carrying values may be impaired. The Company performs an evaluation of recoverability by comparing the carrying values of the net assets to their related projected undiscounted future cash flows, in addition to other quantitative and qualitative analyses. The Company did not record material impairment charges during the years ended December 31, 2020, 2019 or 2018.