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

Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive (Loss) Income

Other Comprehensive (Loss) Income

6 Months Ended

Jun. 30, 2011

(3) OTHER COMPREHENSIVE (LOSS) INCOME

In addition to net (loss) earnings, other comprehensive (loss) income includes changes in foreign currency translation adjustments and income (loss) attributable to non-controlling interests. The Company operates internationally through several foreign subsidiaries. Assets and liabilities of the foreign operations denominated in local currencies are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the weighted average rate of exchange during the period of translation. The resulting translation adjustments along with translation adjustments related to intercompany loans of a long-term nature are included in the translation adjustment in other comprehensive income (loss).

The activity in other comprehensive (loss) income, net of income taxes, was as follows (in thousands):


	Three-Months Ended June 30,						Six-Months Ended June 30,
Comprehensive income (loss)	2011			2010			2011			2010
Net (loss) earnings	$	(30,052	)	$	40,317		$	(17,899	)	$	96,440
Gain (loss) on foreign currency translation adjustment, net of tax		4,781			(6,120	)		9,324			(10,350	)

Comprehensive (loss) income		(25,271	)		34,197			(8,575	)		86,090
Comprehensive income (loss) attributable to non-controlling interest		26			(107	)		(590	)		28

Comprehensive (loss) income attributable to parent	$	(25,245	)	$	34,090		$	(9,165	)	$	86,118

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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