

	As of
	June 30,		December 31,
	2020		2019
Equity method investments	$	5,764	$	14,342
Nonmarketable equity investments without readily determinable fair values		9,687		13,359
Marketable equity investments with readily determinable fair values		9,212		405
Total investment securities	$	24,663	$	28,106

Our equity method investments relate primarily to an investment in an apparel and lifestyle brand. To the extent the investees record income or losses, the Company records our share proportionate to our ownership percentage, and any dividends received reduce the carrying value amount of the investments. Net equity method earnings from our equity method investments are included as a component of Other (expense) income, net on the Consolidated Statements of Operations. Net dividends received from our equity method investments are reflected on the Consolidated Statements of Cash Flows within Net cash provided by operating activities.

We evaluate our equity method investments for impairment when events indicate that the fair value of the investments may be below the carrying value. When such a condition is deemed to be other than temporary, the carrying value of the investment is written down to its fair value. During the first quarter of 2020, the Company recorded an impairment charge of $8,828 on our equity method investments for the excess of the carrying value over its estimated fair value as a result of our impairment evaluation. We determined fair value using a discounted cash flow model using recent forecasts from the investee, which indicated a decline in the value of the investment. The decline in value is due to the significant adverse impact on retail market conditions caused by COVID-19 combined with lower sales forecasts. This impairment charge is included as a component of Other (expense) income, net in the Consolidated Statements of Operations. The Company did not record any impairment charges related to our equity method investments during the three and six months ended June 30, 2019.

The following table presents the net equity method earnings from our equity method investments and net dividends received from our equity method investments for the periods presented:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net equity method earnings	$	243	$	185	$	426	$	417
Net dividends received		22		(257)		(175)		(418)
Equity in earnings of affiliate, net of dividends received	$	265	$	(72)	$	251	$	(1)

Nonmarketable Equity Investments Without Readily Determinable Fair Values

We evaluate our nonmarketable equity investments without readily determinable fair values for impairment if factors indicate that a significant decrease in value has occurred. The Company has elected to use the measurement alternative to fair value that will allow these investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes.

During the first quarter of 2020, the Company recorded an impairment charge of $2,715 on our investment in a themed attraction touring company for the excess of the carrying value over its estimated fair value as a result of our impairment evaluation. This evaluation indicated a decline in the value of the investment due largely to significant adverse changes in the economic and market conditions caused by COVID-19. This impairment charge is included as a component of Other (expense) income, net in the Consolidated Statements of Operations. The Company did not record any impairment charges on these investments during the three and six months ended June 30, 2019. In addition, there were no observable price change events that were completed during the three and six months ended June 30, 2020 and 2019.

Marketable Equity Investments With Readily Determinable Fair Values

During the three months ended June 30, 2020, one of our nonmarketable equity investments, DraftKings Inc, (“DraftKings”), an online fantasy sports and betting platform, completed a business combination and became a publicly traded company with its common stock traded on the NASDAQ under the symbol DKNG starting on April 24, 2020. As a result of the business combination, WWE received common stock of the new publicly traded DraftKings company in exchange for its common shares WWE owned in the investee. The Company is subject to a 180-day lock-up period on the common shares.

As of June 30, 2020, our investment portfolio includes two investments in marketable equity securities of publicly traded companies, both of which trade on the NASDAQ. The Company accounts for these equity investments in the common stock of Phunware Inc. (“Phunware”), a software application developer, and DraftKings, as marketable equity investments with readily determinable fair values based on quoted prices on the NASDAQ. During the three and six months ended June 30, 2020, the Company recorded a net unrealized gain of $7,945 and $7,770, respectively, associated with these two investments based on the closing prices of the investee companies as of the last trading day of the period. During the three and six months ended June 30, 2019, the Company recorded an unrealized holding loss of $3,597 and $3,791, respectively, associated with Phunware, based on the closing price of the investee company as of the last trading day of the period. Unrealized holding gains and losses are included as a component of Other (expense) income, net in the Consolidated Statements of Operations. As the underlying stock prices of DraftKings and Phunware fluctuate, WWE is exposed to future earnings volatility to the extent WWE continues to hold these investments.

Short-term investments consist of available-for-sale debt securities which are measured at fair value and consisted of the following:



	As of June 30, 2020								As of December 31, 2019
			Gross Unrealized								Gross Unrealized
	Amortized						Fair		Amortized						Fair
	Cost		Gain		(Loss)		Value		Cost		Gain		(Loss)		Value
U.S. Treasury securities	$	21,070	$	65	$	—	$	21,135	$	32,124	$	27	$	(13)	$	32,138
Corporate bonds		81,330		69		(58)		81,341		120,012		89		(74)		120,027
Municipal bonds		—		—		—		—		2,165		—		—		2,165
Government agency bonds		20,700		86		—		20,786		5,693		11		—		5,704
Total	$	123,100	$	220	$	(58)	$	123,262	$	159,994	$	127	$	(87)	$	160,034

The Company adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2020 and applied the new modified credit impairment guidance related to available-for-sale debt securities prospectively. Under the new guidance, at each reporting date, entities must evaluate their individual available-for-sale debt securities that are in an unrealized loss position and determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The amount of the decline related to credit losses are recorded as a credit loss expense in earnings with a corresponding allowance for credit losses and the amount of the decline not related to credit losses are recorded through other comprehensive income, net of tax. As of June 30, 2020, the aggregate total amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value) was $58, or less than 1% of the total amortized costs basis of the entire available-for-sale debt portfolio. We did not record an allowance for credit losses on these securities. Accordingly, during the three and six months ended June 30, 2020, the entire amount of the decline in fair value below the amortized cost basis was recorded as an unrealized loss, net of tax, in other comprehensive loss in the Consolidated Statements of Comprehensive Income. Unrealized gains are also reflected, net of tax, as other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income.

Our U.S. Treasury securities, corporate bonds, municipal bonds and government agency bonds are included in Short-term investments, net on our Consolidated Balance Sheets. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold.

As of June 30, 2020, contractual remaining maturities of these securities are as follows:

During the three and six months ended June 30, 2020 and 2019, we recognized $493 and $1,343, and $1,414 and $2,793, respectively, of interest income on our short-term investments. Interest income is reflected as a component of Other income, net within our Consolidated Statements of Operations.



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Proceeds from sales and maturities of short-term investments	$	34,150	$	38,370	$	67,685	$	58,848
Purchases of short-term investments	$	22,302	$	50,249	$	30,987	$	63,647