Cash and Cash Equivalents, and Investments

6 Months Ended

Jun. 30, 2020

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents, and Investment

Cash and Cash Equivalents, and Investments

The following tables show our cash and cash equivalents, and investments’ adjusted cost, unrealized gain, unrealized loss, and fair value as of June 30, 2020 and December 31, 2019 (in thousands):


	June 30, 2020
	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash	$	17,660	$	—	$	—	$	17,660
U.S. treasury securities	117,402		—		—		117,402
Money market funds	150,002		—		—		150,002

Total cash and cash equivalents	$	285,064	$	—	$	—	$	285,064
Short-term investments:

Corporate securities	$	399,894	$	2,581	$	(41)	$	402,434
U.S. treasury securities	15,042		54		—		15,096

Total short-term investments	$	414,936	$	2,635	$	(41)	$	417,530
Long-term investments:
Corporate securities	$	218,099	$	1,851	$	(214)	$	219,736

Agency bonds	60,752		9		(5)		60,756
Total long-term investments	$	278,851	$	1,860	$	(219)	$	280,492


	December 31, 2019
	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash	$	241,355	$	—	$	—	$	241,355
Money market funds	146,165		—		—		146,165

Total cash and cash equivalents	$	387,520	$	—	$	—	$	387,520
Short-term investments:
Commercial paper	$	7,489	$	—	$	—	$	7,489
Corporate securities	318,946		425		(78)		319,293
U.S. treasury securities	44,251		39		(4)		44,286
Agency bonds	10,000		6		—		10,006
Total short-term investments	$	380,686	$	470	$	(82)	$	381,074
Long-term investments:
Corporate securities	$	295,103	$	533	$	(158)	$	295,478

Agency bonds	14,999		6		—		15,005
Total long-term investments	$	310,102	$	539	$	(158)	$	310,483

The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2020 (in thousands):


	Adjusted Cost		Fair Value
Due in 1 year or less	$	532,338	$	534,932
Due in 1-2 years	278,851		280,492
Investments not due at a single maturity date	150,002		150,002
Total	$	961,191	$	965,426

Investments not due at a single maturity date in the preceding table consisted of money market funds.

As of June 30, 2020, we did not consider the declines in market value of our investment portfolio to be driven by credit related factors. When evaluating whether an investment's unrealized losses are related to credit factors, we review factors such as the extent to which fair value is below its cost basis, any changes to the credit rating of the security, adverse conditions specifically related to the security, changes in market interest rates and our intent to sell, or whether it is more likely than not we will be required to sell, before recovery of cost basis. We typically invest in highly-rated securities with a minimum credit rating of A-, a weighted average maturity of 9 months, and our investment policy limits the amount of credit exposure to any one issuer or industry sector. The policy requires investments generally to be investment grade, with the primary objective of preserving capital and maintaining liquidity. Fair values were determined for each individual security in the investment portfolio. During the three and six months ended June 30, 2020, we did not recognize any losses on our investments due to credit related factors. During the three and six months ended June 30, 2019, we did not recognize any impairment charges.

Restricted Cash

As of June 30, 2020 and December 31, 2019, we had approximately $2.0 million and $1.9 million, respectively, of restricted cash that primarily consists of security deposits for our corporate offices. These amounts are classified in either other current assets or other assets on our condensed consolidated balance sheets based upon the term of the remaining restrictions.

Strategic Investments

In March 2020, we completed an investment of $2.0 million in TAPD, Inc., also known as Frank, a U.S.-based service that helps students access financial aid. In October 2018, we completed an investment of $10.0 million in WayUp, Inc., a U.S.-based job site and mobile application for college students and recent graduates. Additionally, we previously invested $3.0 million in a foreign entity to explore expanding our reach internationally. We did not record any impairment charges on our strategic investments during the three and six months ended June 30, 2020 and 2019, as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. We considered general market conditions as a result of the COVID-19 pandemic in our impairment analysis. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuers during the three and six months ended June 30, 2020 and 2019.