Cash and Cash Equivalents, and Investments

9 Months Ended

Sep. 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 September 30, 2021 and December 31, 2020 (in thousands):


	September 30, 2021
	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash	$	29,338	$	—	$	—	$	29,338

Money market funds	684,499		—		—		684,499

Total cash and cash equivalents	$	713,837	$	—	$	—	$	713,837
Short-term investments:
Commercial paper	$	364,098	$	49	$	(4)	$	364,143
Corporate debt securities	658,525		280		(122)		658,683

Agency bonds	15,501		18		—		15,519
Total short-term investments	$	1,038,124	$	347	$	(126)	$	1,038,345
Long-term investments:
Corporate debt securities	$	813,889	$	142	$	(531)	$	813,500


Total long-term investments	$	813,889	$	142	$	(531)	$	813,500


	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 September 30, 2021 (in thousands):


	Adjusted Cost		Fair Value
Due in 1 year or less	$	1,038,124	$	1,038,345
Due in 1-2 years	813,889		813,500
Investments not due at a single maturity date	684,499		684,499
Total	$	2,536,512	$	2,536,344

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

As of September 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 nine months ended September 30, 2021 and 2020, we did not recognize any losses on our investments due to credit related factors.

Strategic Investments

We previously invested $2.0 million in TAPD, Inc., also known as Frank; a U.S.-based service that helps students access financial aid. In September 2021, we sold our investment in Frank for total consideration of $9.2 million, resulting in a $7.2 million gain included within other income (expense), net on our condensed consolidated statements of operations. We received a cash payment of $9.0 million included within cash flows from investing activities on our condensed consolidated statements of cash flows.

We also 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.

Aside from a $10.0 million impairment charge previously recorded in 2020 on our strategic investment in WayUp, Inc., we did not record any other impairment charges on our strategic investments during the three and nine months ended September 30, 2021 and 2020, 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, 2021 and 2020. As of September 30, 2021, we had no amounts related to strategic investments on our condensed consolidated balance sheet.