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

3 Months Ended

Mar. 31, 2022

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 March 31, 2022
(in thousands)	Adjusted Cost		Fair Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	570,833	$	570,833	$	570,833	$	—	$	—
Level 1
Money market funds		19,075		19,075		19,075		—		—
U.S. Treasury securities		22,983		22,983		—		11,775		11,208
Total level 1		42,058		42,058		19,075		11,775		11,208
Level 2
Corporate notes and bonds		133,565		133,565		—		86,388		47,177
Asset-backed securities		21,312		21,312		—		6,770		14,542
Mutual funds		52,124		52,124		—		—		52,124
Total level 2		207,001		207,001		—		93,158		113,843
Total	$	819,892	$	819,892	$	589,908	$	104,933	$	125,051

	As of December 31, 2021
(in thousands)	Adjusted Cost		Fair Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	664,220	$	664,220	$	664,220	$	—	$	—
Level 1
Money market funds		132,063		132,063		132,063		—		—
U.S. Treasury securities		25,437		25,437		—		8,896		16,541
Total level 1		157,500		157,500		132,063		8,896		16,541
Level 2
Corporate notes and bonds		148,373		148,373		—		84,783		63,590
Asset-backed securities		17,180		17,180		—		4,901		12,279
Mutual funds		53,180		53,180		—		—		53,180
Total level 2		218,733		218,733		—		89,684		129,049
Total	$	1,040,453	$	1,040,453	$	796,283	$	98,580	$	145,590

The Company’s investments consist of U.S. Treasury securities, corporate notes and bonds and asset-backed 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.