Cash and Cash Equivalents, and Investments and Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents, and Investments and Fair Value Measurements

The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of December 31, 2021 and 2020 (in thousands, except for fair value level):


	December 31, 2021
	Fair Value Level	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash		$	30,324	$	—	$	—	$	30,324

Money market funds	Level 1	823,754		—		—		823,754
Total cash and cash equivalents		$	854,078	$	—	$	—	$	854,078
Short-term investments:
Commercial paper	Level 2	$	124,211	$	2	$	(33)	$	124,180
Corporate debt securities	Level 2	552,609		36		(546)		552,099
Agency bonds	Level 2	15,500		2		—		15,502
Total short-term investments		$	692,320	$	40	$	(579)	$	691,781
Long-term investments:
Corporate debt securities	Level 2	$	724,517	$	—	$	(3,277)	$	721,240

U.S. treasury securities	Level 1	24,860		—		(107)		24,753
Total long-term investments		$	749,377	$	—	$	(3,384)	$	745,993


	December 31, 2020
	Fair Value Level	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash		$	15,054	$	—	$	—	$	15,054
Money market funds	Level 1	464,799		—		—		464,799



Total cash and cash equivalents		$	479,853	$	—	$	—	$	479,853
Short-term investments:
Commercial paper	Level 2	$	204,152	$	24	$	(6)	$	204,170
Corporate debt securities	Level 2	459,967		1,478		(48)		461,397


Total short-term investments		$	664,119	$	1,502	$	(54)	$	665,567
Long-term investments:
Corporate debt securities	Level 2	$	484,275	$	605	$	(283)	$	484,597
Agency bonds	Level 2	38,995		36		—		39,031
Total long-term investments		$	523,270	$	641	$	(283)	$	523,628

As of December 31, 2021, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During the years ended December 31, 2021 and 2020 we did not recognize any losses on our investments due to credit related factors. During the years ended December 31, 2021, 2020 and 2019, our gross realized gains and losses on investments were not significant.

The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of December 31, 2021 (in thousands):


	December 31, 2021
	Cost		Fair Value
Due in 1 year or less	$	692,320	$	691,781
Due in 1-2 years	749,377		745,993
Investments not due at a single maturity date	823,754		823,754
Total	$	2,265,451	$	2,261,528

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

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 (expense) income, net on our consolidated statements of operations. We received a cash payment of $9.0 million included within cash flows from investing activities on our 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 (expense) income, net on our 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 consolidated statements of cash flows.

We did not record any impairment charges on our strategic investments, other than a $10.0 million impairment charge previously recorded in 2020 on our strategic investment in WayUp, Inc., during the years ended December 31, 2021, 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 years ended December 31, 2021, 2020 and 2019. As of December 31, 2021, we had no amounts related to strategic investments recorded on our consolidated balance sheet.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. For further information on the notes refer to Note 10, “Convertible Senior Notes.”

The carrying amounts and estimated fair values of the notes as of December 31, 2021 and 2020 are as follows (in thousands):


	December 31, 2021				December 31, 2020 (1)
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
2026 notes	$	987,691	$	840,000	$	761,930	$	1,129,370
2025 notes	690,464		682,202		640,614		1,456,800
2023 notes	—		—		104,378		376,949
Convertible senior notes, net	$	1,678,155	$	1,522,202	$	1,506,922	$	2,963,119

(1) Prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method. Refer to Note 10, “Convertible Senior Notes” for more information.

The carrying amount of the 2026 notes and 2025 notes as of December 31, 2021 was net of unamortized issuance costs of $12.3 million and $9.5 million, respectively, and there is no carrying amount of the 2023 notes as we settled the principal amount of the 2023 notes during the year ended December 31, 2021. The carrying amount of the 2026 notes, 2025 notes and

2023 notes as of December 31, 2020 was net of unamortized debt discount of $226.7 million, $149.1 million and $10.0 million, respectively, and unamortized issuance costs of $11.3 million, $10.2 million and $1.2 million, respectively.