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

Quarterly report pursuant to Section 13 or 15(d)

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

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

9 Months Ended

Sep. 30, 2021

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

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

(2)	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 September 30, 2021
(in thousands)	Adjusted Cost		Fair Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	756,573	$	756,573	$	756,573	$	—	$	—
Level 1
Money market funds		195,503		195,503		195,503		—		—
U.S. Treasury securities		24,069		24,069		—		7,445		16,624
Total level 1		219,572		219,572		195,503		7,445		16,624
Level 2
Corporate notes and bonds		133,169		133,169		—		81,059		52,110
Asset-backed securities		20,240		20,240		—		2,073		18,167
Mutual funds		52,151		52,151		—		—		52,151
Total level 2		205,560		205,560		—		83,132		122,428
TOTAL	$	1,181,705	$	1,181,705	$	952,076	$	90,577	$	139,052

	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

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 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.