Cash and Cash Equivalents, and Investments

6 Months Ended

Jun. 30, 2021

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, 2021 and December 31, 2020 (in thousands):


	June 30, 2021
	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash	$	33,022	$	—	$	—	$	33,022

Money market funds	807,034		—		—		807,034

Total cash and cash equivalents	$	840,056	$	—	$	—	$	840,056
Short-term investments:
Commercial paper	$	514,715	$	120	$	—	$	514,835
Corporate debt securities	690,873		566		(130)		691,309

Agency bonds	15,501		21		—		15,522
Total short-term investments	$	1,221,089	$	707	$	(130)	$	1,221,666
Long-term investments:
Corporate debt securities	$	476,143	$	75	$	(366)	$	475,852

Agency bonds	9,000		1		—		9,001
Total long-term investments	$	485,143	$	76	$	(366)	$	484,853


	December 31, 2020
	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash	$	15,054	$	—	$	—	$	15,054
Money market funds	464,799		—		—		464,799

Total cash and cash equivalents	$	479,853	$	—	$	—	$	479,853
Short-term investments:
Commercial paper	$	204,152	$	24	$	(6)	$	204,170
Corporate debt securities	459,967		1,478		(48)		461,397


Total short-term investments	$	664,119	$	1,502	$	(54)	$	665,567
Long-term investments:
Corporate debt securities	$	484,275	$	605	$	(283)	$	484,597

Agency bonds	38,995		36		—		39,031
Total long-term investments	$	523,270	$	641	$	(283)	$	523,628

The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2021 (in thousands):


	Adjusted Cost		Fair Value
Due in 1 year or less	$	1,221,089	$	1,221,666
Due in 1-2 years	485,143		484,853
Investments not due at a single maturity date	807,034		807,034
Total	$	2,513,266	$	2,513,553

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

As of June 30, 2021, we determined that the declines in the market value of our investment portfolio were not 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- and a weighted average maturity of less than twelve months. In addition, our investment policy limits the amount of our credit exposure to any one issuer or industry sector. The policy requires investments 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, 2021 and 2020, we did not recognize any losses on our investments due to credit related factors.

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. Additionally, we previously invested $3.0 million in a foreign entity to explore expanding our reach internationally. In March 2021, we sold our investment in that foreign entity for total consideration of $8.3 million, resulting in a $5.3 million gain included within other income (expense), net on our condensed consolidated statements of operations. We received a cash payment, net of taxes withheld, of $7.1 million included within cash flows from investing activities on our condensed consolidated statements of cash flows. We did not record any impairment charges on our strategic investments during the three and six months ended June 30, 2021 and 2020, 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, 2021 and 2020.