Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:      
Net earnings (loss) attributable to Skechers, U.S.A., Inc. $ 9,512 $ (67,484) $ 136,148
Adjustments to reconcile net earnings (loss) to net cash (used in) provided by operating activities: provided by (used in) operating activities:      
Noncontrolling interests in subsidiaries 1,000 (96) 257
Depreciation of property, plant and equipment 41,542 33,652 24,707
Amortization of deferred financing costs 1,195 1,128 1,482
Amortization of intangible assets 906 1,580 1,683
Provision for bad debts and returns 1,112 5,882 6,212
Tax benefits from share-based compensation (78) (640) 0
Non-cash share-based compensation 11,527 14,320 13,739
Deferred income taxes (7,538) (7,863) (5,170)
Inventory write-down 0 9,971 0
Loss (gain) on disposal of property, plant and equipment 216 (9,632) 36
Impairment of property, plant and equipment 0 1,481 0
Impairment of intangible assets 0 1,649 0
(Increase) decrease in assets:      
Receivables (36,989) 86,114 (50,040)
Inventories (111,813) 160,241 (172,417)
Prepaid expenses and other current assets 60,266 (38,247) (21,402)
Other assets (4,955) 3,291 (7,571)
Increase (decrease) in liabilities:      
Accounts payable 9,958 (18,074) 32,829
Accrued expenses 20,692 (12,354) (7,872)
Net cash (used in) provided by operating activities (3,447) 164,919 (47,379)
Cash flows from investing activities:      
Capital expenditures (52,452) (122,238) (82,269)
Maturities of investments 0 0 30,000
Proceeds from the sale of property, plant and equipment 0 17,100 0
Intangible additions 0 (10) (41)
Net cash (used in) investing activities (52,452) (105,148) (52,310)
Cash flows from financing activities:      
Net proceeds from the issuances of stock through employee stock purchase plan and the exercise of stock options 3,425 3,321 14,040
Shares redeemed for employee tax withholdings 0 0 (5,604)
Contributions from noncontrolling interest of consolidated entity 3,501 2,115 3,500
Distribution to noncontrolling interest of consolidated entity (1,602) 0 0
Excess tax benefits from share-based compensation 528 0 9,042
(Decrease) increase in short-term borrowings (47,998) 31,958 16,271
Proceeds from long-term debt 82,143 37,326 39,293
Payments on long-term debt (10,243) (14,287) (9,121)
Net cash provided by financing activities 29,754 60,433 67,421
Net (decrease) increase in cash and cash equivalents (26,145) 120,204 (32,268)
Effect of exchange rates on cash and cash equivalents 827 (2,618) 151
Cash and cash equivalents at beginning of year 351,144 233,558 265,675
Cash and cash equivalents at end of year 325,826 351,144 233,558
Cash paid (received) during the year for:      
Interest 11,812 7,692 3,438
Income taxes paid (recovered) (48,706) 15,772 87,063
Non-cash transactions:      
Land contribution from noncontrolling interest 0 0 30,000
Note payable contribution from noncontrolling interest $ 0 $ 0 $ 17,358