Cash and Cash Equivalents, and Investments

9 Months Ended

Sep. 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 September 30, 2020 and December 31, 2019 (in thousands):


	September 30, 2020
	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash	$	17,346	$	—	$	—	$	17,346
U.S. treasury securities	307,673		—		—		307,673
Money market funds	202,522		—		—		202,522

Total cash and cash equivalents	$	527,541	$	—	$	—	$	527,541
Short-term investments:
Commercial paper	$	204,044	$	38	$	(24)	$	204,058
Corporate securities	516,682		2,644		(57)		519,269


Total short-term investments	$	720,726	$	2,682	$	(81)	$	723,327
Long-term investments:
Corporate securities	$	456,774	$	602	$	(635)	$	456,741

Agency bonds	64,495		25		—		64,520
Total long-term investments	$	521,269	$	627	$	(635)	$	521,261


	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 September 30, 2020 (in thousands):


	Adjusted Cost		Fair Value
Due in 1 year or less	$	1,028,399	$	1,031,000
Due in 1-2 years	521,269		521,261
Investments not due at a single maturity date	202,522		202,522
Total	$	1,752,190	$	1,754,783

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

As of September 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 invest in highly-rated securities with a minimum credit rating of A-, a weighted average maturity of less than 12 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 nine months ended September 30, 2020, we did not recognize any losses on our investments due to credit related factors. During the three and nine months ended September 30, 2019, we did not recognize any impairment charges.

Restricted Cash

As of September 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. (WayUp), 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. During the three months ended September 30, 2020, we recorded a $10.0 million impairment charge on our investment in WayUp included within general and administrative expense on our condensed consolidated statements of operations. Our impairment assessment was the result of the uncertainty around WayUp's ability to raise additional funding to support their future operations. We did not record any impairment charges on our other strategic investments during the three and nine months ended September 30, 2020 and 2019, as there were no other 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 nine months ended September 30, 2020 and 2019.