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

Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

Share-Based Compensation

6 Months Ended

Jun. 30, 2011

(4) SHARE-BASED COMPENSATION

For stock-based awards we have recognized compensation expense based on the grant date fair value. Share-based compensation expense was $3.5 million and $3.4 million for the three months ended June 30, 2011 and 2010, respectively. Share-based compensation expense was $7.2 million and $6.7 million for the six months ended June 30, 2011 and 2010, respectively.

Stock options granted pursuant to the 1998 Stock Option, Deferred Stock and Restricted Stock Plan and the 2007 Incentive Award Plan (the “Equity Incentive Plans”) were as follows:


				Weighted		Weighted Average	Aggregate
				Average		Remaining	Intrinsic
	Shares			Exercise Price		Contractual Term	Value
Outstanding at December 31, 2010		451,308		$	11.26
Granted		0			0
Exercised		(98,503	)		9.08
Cancelled		(85,058	)		23.23

Outstanding at June 30, 2011		267,747			8.26	1.4 years	$	1,664,273


Exercisable at June 30, 2011		267,747			8.26	1.4 years	$	1,664,273

A summary of the status and changes of our nonvested shares related to our Equity Incentive Plans as of and for the six months ended June 30, 2011 is presented below:


				Weighted Average
				Grant-Date Fair
	Shares			Value
Nonvested at December 31, 2010		1,493,329		$	18.97
Granted		10,000			21.00
Vested		(46,667	)		31.37
Cancelled		(12,333	)		17.44

Nonvested at June 30, 2011		1,444,329			18.77

As of June 30, 2011, there was $18.3 million of unrecognized compensation cost related to nonvested common shares. The cost is expected to be amortized over a weighted average period of 1.4 years.