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, 2021

Property Plant And Equipment [Abstract]

(4)	PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is summarized as follows:

	As of December 31,
(in thousands)	2021		2020
Land	$	111,212	$	95,712
Buildings and improvements		658,910		531,059
Furniture, fixtures and equipment		584,059		485,349
Leasehold improvements		497,646		506,459
Total property, plant and equipment		1,851,827		1,618,579
Less: Accumulated depreciation and amortization		722,918		683,138
Property, plant and equipment, net	$	1,128,909	$	935,441

Depreciation expense was $122.2 million, $115.5 million and $101.1 million for the years ended December 31, 2021, 2020 and 2019 as calculated using the straight-line method, which is based on the following estimated useful lives:

Buildings		20 to 40 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, 2021, 2020 or 2019.