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

Annual report pursuant to Section 13 and 15(d)

Segment Information

Segment Information

12 Months Ended

Dec. 31, 2012

(12) SEGMENT INFORMATION

We have four reportable segments – domestic wholesale sales, international wholesale sales, retail sales, and e-commerce sales. Management evaluates segment performance based primarily on net sales and gross margins. All other costs and expenses of the Company are analyzed on an aggregate basis, and these costs are not allocated to the Company’s segments. Net sales, gross margins and identifiable assets for the domestic wholesale, international wholesale, retail, and the e-commerce segment on a combined basis were as follows (in thousands):


	2012			2011			2010
Net sales
Domestic wholesale		$	652,651		$	688,194		$	1,131,929
International wholesale			432,163			487,296			436,637
Retail			453,600			410,458			410,695
E-commerce			21,907			20,068			27,607

Total		$	1,560,321		$	1,606,016		$	2,006,868


	2012			2011			2010
Gross profit
Domestic wholesale		$	242,931		$	186,010		$	460,355
International wholesale			166,454			196,248			181,528
Retail			264,010			231,835			255,894
E-commerce			9,931			9,655			14,129

Total		$	683,326		$	623,748		$	911,906


	2012			2011
Identifiable assets
Domestic wholesale		$	820,253		$	844,383
International wholesale			367,005			304,025
Retail			152,795			133,081
E-commerce			167			399

Total		$	1,340,220		$	1,281,888


	2012			2011			2010
Additions to property, plant and equipment
Domestic wholesale		$	33,488		$	92,496		$	57,375
International wholesale			2,939			2,236			4,241
Retail			16,025			27,506			20,653

Total		$	52,452		$	122,238		$	82,269

Geographic Information

The following summarizes our operations in different geographic areas for the year indicated:


	2012		2011		2010
Net Sales (1)
United States	$	1,064,298	$	1,059,990	$	1,522,187
Canada		49,460		48,057		54,476
Other International (2)		446,563		497,969		430,205

Total	$	1,560,321	$	1,606,016	$	2,006,868


	2012		2011
Property, plant and equipment
United States	$	345,202	$	358,405
Canada		1,252		1,179
Other International (2)		15,992		16,862

Total	$	362,446	$	376,446

(1)

The Company has subsidiaries in Canada, United Kingdom, Germany, France, Spain, Portugal, Italy, Netherlands, Japan, Brazil and Chile that generate net sales within those respective countries and in some cases the neighboring regions. The Company has joint ventures in India, China, Hong Kong, Malaysia, Singapore and Thailand that generate net sales from those countries. The Company also has a subsidiary in Switzerland that generates net sales from that country in addition to net sales to our distributors located in numerous non-European countries. Net sales are attributable to geographic regions based on the location of the Company subsidiary.

(2)	Other international consists of Switzerland, United Kingdom, Germany, Austria, France, Spain, Portugal, Italy, Netherlands, China, Hong Kong, Malaysia, Singapore, Thailand, Brazil, Chile, Vietnam and Japan.