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

Annual report pursuant to Section 13 and 15(d)

The Company and Summary Of Significant Accounting Policies (Tables)

The Company and Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Carrying Amounts and Classification of Assets and Liabilities for VIEs

The following VIE’s are consolidated into the Company’s consolidated financial statements and the carrying amounts and classification of assets and liabilities were as follows (in thousands):


HF Logistics-SKX, LLC	December 31, 2013		December 31, 2012

Current assets	$	3,076	$	5,239
Noncurrent assets		129,796		133,235

Total assets	$	132,872	$	138,474


Current liabilities	$	1,835	$	1,958
Noncurrent liabilities		79,389		80,678

Total liabilities	$	81,224	$	82,636


Distribution joint ventures (1)	December 31, 2013		December 31, 2012

Current assets	$	49,835	$	34,781
Noncurrent assets		9,209		7,978

Total assets	$	59,044	$	42,759


Current liabilities	$	15,687	$	13,222
Noncurrent liabilities		32		34

Total liabilities	$	15,719	$	13,256

(1)	Distribution joint ventures include Skechers China Limited, Skechers Southeast Asia Limited, Skechers Thailand Limited and Skechers South Asia Private Limited.

Summary of Estimated Useful Lives of Property, Plant and Equipment

Depreciation and amortization of property, plant and equipment is computed using the straight-line method based on the following estimated useful lives:


Buildings		20 years
Building improvements		10 years
Furniture, fixtures and equipment		5 to 20 years
Leasehold improvements		Useful life or remaining lease term, whichever is shorter

Schedule of Goodwill and Intangible Assets

Intangible assets, which were primarily allocated to the domestic wholesale segment, as of December 31, 2013 and 2012 are as follows (in thousands):


	2013			2012
Intellectual property	$	7,887		$	7,840
Goodwill		1,575			1,575
Less accumulated amortization		(7,085	)		(6,173	)

Total intangible assets	$	2,377		$	3,242

Reconciliation of Net Earnings (Loss) and Weighted Average Common Shares Outstanding

The following is a reconciliation of net earnings (loss) and weighted average common shares outstanding for purposes of calculating earnings (loss) per share (in thousands):


	Years Ended December 31,
Basic earnings (loss) per share	2013		2012		2011

Net earnings (loss)	$	54,788	$	9,512	$	(67,484	)
Weighted average common shares outstanding		50,363		49,495		48,491
Basic earnings (loss) per share	$	1.09	$	0.19	$	(1.39	)


	Years Ended December 31,
Diluted earnings (loss) per share	2013		2012		2011

Net earnings (loss)	$	54,788	$	9,512	$	(67,484	)
Weighted average common shares outstanding		50,363		49,495		48,491
Dilutive stock options		200		447		0

Weighted average common shares outstanding		50,563		49,942		48,491


Diluted earnings (loss) per share	$	1.08	$	0.19	$	(1.39	)

- 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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