Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

v3.20.1
Leases (Tables)
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Summary of Operating Lease Cost and Other Information

Operating lease cost and other information (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Fixed lease cost

 

$

65,202

 

 

$

54,502

 

Variable lease cost

 

 

1,011

 

 

 

6,632

 

Operating cash flows used for leases

 

 

63,983

 

 

 

56,924

 

Noncash right-of-use assets recorded for lease liabilities:

 

 

 

 

 

 

 

 

For January 1 adoption of Topic 842

 

 

-

 

 

 

1,035,062

 

In exchange for new lease liabilities during the period

 

 

9,581

 

 

 

11,473

 

Weighted-average remaining lease term

 

4.61 years

 

 

5.19 years

 

Weighted-average discount rate

 

 

4.19

%

 

 

4.24

%

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

 

HF Logistics (1)

 

March 31, 2020

 

 

December 31, 2019

 

Current assets

 

$

62,302

 

 

$

5,297

 

Non-current assets

 

 

104,474

 

 

 

104,527

 

Total assets

 

$

166,776

 

 

$

109,824

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

922

 

 

$

64,600

 

Non-current liabilities

 

 

130,514

 

 

 

1,009

 

Total liabilities

 

$

131,436

 

 

$

65,609

 

 

 

 

 

 

 

 

 

 

Product distribution joint ventures (2)

 

March 31, 2020

 

 

December 31, 2019

 

Current assets

 

$

691,277

 

 

$

747,668

 

Non-current assets

 

 

490,857

 

 

 

325,283

 

Total assets

 

$

1,182,134

 

 

$

1,072,951

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

436,941

 

 

$

430,282

 

Non-current liabilities

 

 

151,909

 

 

 

135,903

 

Total liabilities

 

$

588,850

 

 

$

566,185

 

 

(1)

Includes HF Logistics-SKX, LLC and HF Logistics-SKX, T2, LLC.

(2)

Distribution joint ventures include Skechers Footwear Ltd. (Israel), Skechers China Limited, Skechers Korea Limited, Skechers Southeast Asia Limited, Skechers (Thailand) Limited, and Manhattan SKMX, S. de R.L. de C.V. (Mexico).

 

Summary of Maturities of Lease Liabilities

The maturities of lease liabilities were as follows (in thousands):

 

 

 

March 31, 2020

 

2020 remaining months

 

$

177,292

 

2021

 

 

213,036

 

2022

 

 

184,287

 

2023

 

 

164,704

 

2024

 

 

153,096

 

Thereafter

 

 

449,388

 

Total lease payments

 

 

1,341,803

 

Less: Imputed interest

 

 

(175,082

)

 

 

$

1,166,721

 

 

 

 

 

 

The following is a summary of net earnings (loss) attributable to, distributions to and contributions from non-controlling interests (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Net earnings (loss) attributable to non-controlling interests

 

$

(7,941

)

 

$

22,261

 

Distributions to:

 

 

 

 

 

 

 

 

HF Logistics-SKX, LLC

 

 

10,683

 

 

 

1,014

 

Skechers China Limited

 

 

4,182

 

 

 

 

Skechers South Asia Private Limited

 

 

 

 

 

11,629

 

Non-cash contributions from:

 

 

 

 

 

 

 

 

HF Logistics-SKX, LLC

 

 

 

 

 

7,565

 

Manhattan SKMX, S. de R.L. de C.V.

 

 

49,045