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

Annual report pursuant to Section 13 and 15(d)

Cash, Cash Equivalents, Short-Term And Long-Term Investments

Cash, Cash Equivalents, Short-Term And Long-Term Investments

12 Months Ended

Dec. 31, 2020

Cash Cash Equivalents And Short Term And Long Term Investments [Abstract]

Cash, Cash Equivalents, Short-Term and Long-Term Investments

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CASH, CASH EQUIVALENTS, SHORT-TERM AND LONG-TERM INVESTMENTS

The following tables show the Company’s cash, cash equivalents, short-term and long-term investments by significant investment category:

	As of December 31, 2020
(in thousands)	Adjusted Cost		Fair Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	946,961	$	946,961	$	946,961	$	—	$	—
Level 1:
Money market funds		423,865		423,865		423,865		—		—
U.S. Treasury securities		21,146		21,146		—		8,067		13,079
Total level 1		445,011		445,011		423,865		8,067		13,079
Level 2:
Corporate notes and bonds		117,253		117,253		—		83,521		33,732
Asset-backed securities		28,253		28,253		—		5,498		22,755
U.S. Agency securities		3,681		3,681		—		3,681		—
Mutual funds		38,846		38,846		—		—		38,846
Total level 2		188,033		188,033		—		92,700		95,333
TOTAL	$	1,580,005	$	1,580,005	$	1,370,826	$	100,767	$	108,412

	As of December 31, 2019
(in thousands)	Adjusted Cost		Fair Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	662,355	$	662,355	$	662,355	$	—	$	—
Level 1:
Money market funds		162,521		162,521		162,521		—		—
U.S. Treasury securities		9,686		9,686		—		1,679		8,007
Total level 1		172,207		172,207		162,521		1,679		8,007
Level 2:
Corporate notes and bonds		132,431		132,431		—		104,130		28,301
Asset-backed securities		23,614		23,614		—		263		23,351
U.S. Agency securities		12,352		12,352		—		5,965		6,387
Mutual funds		28,543		28,543		—		—		28,543
Total level 2		196,940		196,940		-		110,358		86,582
TOTAL	$	1,031,502	$	1,031,502	$	824,876	$	112,037	$	94,589

The Company’s investments consist of U.S. Treasury securities, corporate notes and bonds, asset-backed securities and U.S. Agency securities, which the Company has the intent and ability to hold to maturity and therefore are classified as held-to-maturity. The Company holds mutual funds in its deferred compensation plan which are classified as trading securities.

The Company may sell certain of its investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s long-term investments are typically

less than two years. The Company minimizes the potential risk of principal loss by investing in highly-rated securities and limiting the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio.

When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term, market sector and macroeconomic trends, including current conditions and forecasts to the extent they are reasonable and supportable.