Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.20.2
Earnings Per Share
6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Earnings Per Share

(8)

EARNINGS PER SHARE

Basic earnings per share represent net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share, in addition to the weighted average determined for basic earnings per share, includes potential dilutive common shares using the treasury stock method.

The Company has two classes of issued and outstanding common stock: Class A Common Stock and Class B Common Stock. Holders of Class A Common Stock and holders of Class B Common Stock have substantially identical rights, including rights with respect to any declared dividends or distributions of cash or property and the right to receive proceeds on liquidation or dissolution of the Company after payment of the Company’s indebtedness. The two classes have different voting rights, with holders of Class A Common Stock entitled to one vote per share while holders of Class B Common Stock are entitled to ten votes per share on all matters submitted to a vote of stockholders. The Company uses the two-class method for calculating net earnings per share. Basic and diluted net earnings per share of Class A Common Stock and Class B Common Stock are identical. The shares of Class B Common Stock are convertible at any time at the option of the holder into shares of Class A Common Stock on a share-for-share basis. In addition, shares of Class B Common Stock will be automatically converted into a like number of shares of Class A Common Stock upon transfer to any person or entity who is not a permitted transferee.

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Basic earnings per share

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net earnings (loss) attributable to Skechers U.S.A., Inc.

 

$

(68,097

)

 

$

75,180

 

 

$

(18,996

)

 

$

183,938

 

Weighted average common shares outstanding

 

 

154,138

 

 

 

153,413

 

 

 

153,849

 

 

 

153,446

 

Basic earnings (loss) per share attributable to

   Skechers U.S.A., Inc.

 

$

(0.44

)

 

$

0.49

 

 

$

(0.12

)

 

$

1.20

 

 

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Diluted earnings per share

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net earnings (loss) attributable to Skechers U.S.A., Inc.

 

$

(68,097

)

 

$

75,180

 

 

$

(18,996

)

 

$

183,938

 

Weighted average common shares outstanding

 

 

154,138

 

 

 

153,413

 

 

 

153,849

 

 

 

153,446

 

Dilutive effect of nonvested shares

 

 

 

 

 

499

 

 

 

 

 

 

605

 

Weighted average common shares outstanding

 

 

154,138

 

 

 

153,912

 

 

 

153,849

 

 

 

154,051

 

Diluted earnings (loss) per share attributable to

   Skechers U.S.A., Inc.

 

$

(0.44

)

 

$

0.49

 

 

$

(0.12

)

 

$

1.19

 

 

There were no options included in the computation of diluted earnings per share for the three months and six months ended June 30, 2020 because their effect would have been anti-dilutive. There were 237,035 and 195,677 shares excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2019 because they are anti-dilutive.