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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-36389

 

GRUBHUB INC.

(Exact name of registrant as specified in its charter)

 

 Delaware

   

46-2908664

(State or other jurisdiction of

incorporation or organization)

   

(I.R.S. Employer

Identification No.)

   

   

   

111 W. Washington Street, Suite 2100

Chicago, Illinois

   

60602

(Address of principal executive offices)

   

(Zip code)

(877) 585-7878

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 par value per share

GRUB

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes        No    

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes        No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

 

 

Non-Accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes     No  

As of April 30, 2021, 93,347,973 shares of common stock were outstanding.

 

 


 

GRUBHUB INC.

TABLE OF CONTENTS

 

PART I

 

Page

FINANCIAL INFORMATION

 

 

 

 

Item 1:

Condensed Consolidated Financial Statements (unaudited)

3

 

Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020

3

 

Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020

4

 

Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2021 and 2020

4

 

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020

5

 

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2021 and 2020

6

 

Notes to Condensed Consolidated Financial Statements

7

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations

16

Item 3:

Quantitative and Qualitative Disclosures About Market Risk

25

Item 4:

Controls and Procedures

25

PART II

 

OTHER INFORMATION

 

Item 1:

Legal Proceedings

26

Item 1A:

Risk Factors

26

Item 2:

Unregistered Sales of Equity Securities and Use of Proceeds

26

Item 3:

Defaults Upon Senior Securities

26

Item 4:

Mine Safety Disclosures

26

Item 5:

Other Information

26

Item 6:

Exhibits

27

Signatures

28

 

 

 

2


 

Part I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

GRUBHUB INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(UNAUDITED)

 

 

 

March 31, 2021

 

 

December 31, 2020

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

348,837

 

 

$

360,232

 

Short-term investments

 

 

55,824

 

 

 

53,126

 

Accounts receivable, less allowances for doubtful accounts

 

 

104,727

 

 

 

111,802

 

Income tax receivable

 

 

22,229

 

 

 

22,472

 

Prepaid expenses and other current assets

 

 

20,408

 

 

 

24,765

 

Total current assets

 

 

552,025

 

 

 

572,397

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Property and equipment, net of depreciation and amortization

 

 

217,677

 

 

 

216,146

 

OTHER ASSETS:

 

 

 

 

 

 

 

 

Other assets

 

 

54,373

 

 

 

49,201

 

Deferred tax assets, non-current

 

 

142

 

 

 

142

 

Operating lease right-of-use asset

 

 

85,150

 

 

 

88,227

 

Goodwill

 

 

1,007,968

 

 

 

1,007,968

 

Acquired intangible assets, net of amortization

 

 

445,136

 

 

 

454,838

 

Total other assets

 

 

1,592,769

 

 

 

1,600,376

 

TOTAL ASSETS

 

$

2,362,471

 

 

$

2,388,919

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Restaurant food liability

 

$

136,280

 

 

$

141,802

 

Accounts payable

 

 

16,877

 

 

 

19,859

 

Accrued payroll

 

 

40,871

 

 

 

27,346

 

Current operating lease liability

 

 

17,598

 

 

 

17,897

 

Other accruals

 

 

180,412

 

 

 

149,278

 

Total current liabilities

 

 

392,038

 

 

 

356,182

 

LONG-TERM LIABILITIES:

 

 

 

 

 

 

 

 

Deferred taxes, non-current

 

 

16,823

 

 

 

17,777

 

Noncurrent operating lease liability

 

 

100,251

 

 

 

103,416

 

Long-term debt

 

 

494,330

 

 

 

494,103

 

Other accruals

 

 

6

 

 

 

644

 

Total long-term liabilities

 

 

611,410

 

 

 

615,940

 

Commitments and contingencies

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Preferred Stock, $0.0001 par value. Authorized: 25,000,000 shares as of March 31, 2021 and December 31, 2020; issued and outstanding: no shares as of March 31, 2021 and December 31, 2020.

 

 

 

 

 

 

Common stock, $0.0001 par value. Authorized: 500,000,000 shares at March 31, 2021 and December 31, 2020; issued and outstanding: 93,306,390 and 93,046,676 shares as of March 31, 2021 and December 31, 2020, respectively

 

 

9

 

 

 

9

 

Accumulated other comprehensive loss

 

 

(1,167

)

 

 

(1,275

)

Additional paid-in capital

 

 

1,260,714

 

 

 

1,243,135

 

Retained earnings

 

 

99,467

 

 

 

174,928

 

Total stockholders’ equity

 

$

1,359,023

 

 

$

1,416,797

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

2,362,471

 

 

$

2,388,919

 

 

 

(See Notes to Condensed Consolidated Financial Statements (unaudited))

 

3


 

GRUBHUB INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(UNAUDITED)

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Revenues

$

550,592

 

 

$

362,980

 

Costs and expenses:

 

 

 

 

 

 

 

Operations and support

 

393,486

 

 

 

214,561

 

Sales and marketing

 

127,234

 

 

 

90,742

 

Technology (exclusive of amortization)

 

31,951

 

 

 

31,273

 

General and administrative

 

29,124

 

 

 

38,949

 

Depreciation and amortization

 

37,717

 

 

 

33,363

 

Total costs and expenses

 

619,512

 

 

 

408,888

 

Loss from operations

 

(68,920

)

 

 

(45,908

)

Interest expense, net

 

7,158

 

 

 

6,380

 

Loss before provision for income taxes

 

(76,078

)

 

 

(52,288

)

Income tax benefit

 

(617

)

 

 

(18,861

)

Net loss attributable to common stockholders

$

(75,461

)

 

$

(33,427

)

Net loss per share attributable to common stockholders

 

 

 

 

 

 

 

Basic

$

(0.81

)

 

$

(0.36

)

Diluted

$

(0.81

)

 

$

(0.36

)

Weighted-average shares used to compute net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

 

93,215

 

 

 

91,793

 

Diluted

 

93,215

 

 

 

91,793

 

 

 

 

 

 

GRUBHUB INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(UNAUDITED)

 

 

Three Months Ended March 31,

 

 

 

 

2021

 

 

2020

 

 

 

Net loss

$

(75,461

)

 

$

(33,427

)

 

 

OTHER COMPREHENSIVE INCOME (LOSS)

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

108

 

 

 

(643

)

 

 

COMPREHENSIVE LOSS

$

(75,353

)

 

$

(34,070

)

 

 

 

 

 

(See Notes to Condensed Consolidated Financial Statements (unaudited))

 

4


 

GRUBHUB INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net loss

 

$

(75,461

)

 

$

(33,427

)

Adjustments to reconcile net loss to net cash from operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

12,294

 

 

 

8,658

 

Amortization of intangible assets and developed software

 

 

25,423

 

 

 

24,705

 

Stock-based compensation

 

 

20,954

 

 

 

20,185

 

Deferred taxes

 

 

(954

)

 

 

(2,725

)

Other

 

 

(448

)

 

 

3,479

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

6,861

 

 

 

(18,333

)

Income taxes receivable

 

 

243

 

 

 

(16,311

)

Prepaid expenses and other assets

 

 

(83

)

 

 

(4,602

)

Restaurant food liability

 

 

(5,522

)

 

 

20,857

 

Accounts payable

 

 

(3,460

)

 

 

4,678

 

Accrued payroll

 

 

13,525

 

 

 

4,277

 

Other accruals

 

 

30,583

 

 

 

26,085

 

Net cash provided by operating activities

 

 

23,955

 

 

 

37,526

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(31,150

)

 

 

(19,790

)

Proceeds from maturity of investments

 

 

28,465

 

 

 

32,900

 

Capitalized website and development costs

 

 

(13,848

)

 

 

(14,243

)

Purchases of property and equipment

 

 

(9,833

)

 

 

(19,678

)

Acquisition of other intangible assets

 

 

 

 

 

(510

)

Other cash flows from investing activities

 

 

(200

)

 

 

(250

)

Net cash used in investing activities

 

 

(26,566

)

 

 

(21,571

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from borrowings under the credit facility

 

 

 

 

 

175,000

 

Taxes paid related to net settlement of stock-based compensation awards

 

 

(9,028

)

 

 

(8,051

)

Proceeds from exercise of stock options

 

 

1,088

 

 

 

1,414

 

Other cash flows from financing activities

 

 

(900

)

 

 

 

Net cash provided by (used in) financing activities

 

 

(8,840

)

 

 

168,363

 

Net change in cash, cash equivalents, and restricted cash

 

 

(11,451

)

 

 

184,318

 

Effect of exchange rates on cash, cash equivalents and restricted cash

 

 

66

 

 

 

(600

)

Cash, cash equivalents, and restricted cash at beginning of year

 

 

362,897

 

 

 

379,594

 

Cash, cash equivalents, and restricted cash at end of the period

 

$

351,512

 

 

$

563,312

 

SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

 

 

$

 

Capitalized property, equipment and website and development costs in accounts payable at period end

 

 

2,233

 

 

 

3,830

 

RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

348,837

 

 

$

560,708

 

Restricted cash included in other assets

 

 

2,675

 

 

 

2,604

 

Total cash, cash equivalents, and restricted cash

 

$

351,512

 

 

$

563,312

 

 

(See Notes to Condensed Consolidated Financial Statements (unaudited)

 

5


 

GRUBHUB INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands, except share data)

(UNAUDITED)

 

 

Common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional paid-in capital

 

 

Accumulated other comprehensive loss

 

 

Retained earnings

 

 

Total stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2021

 

Balance at December 31, 2020

 

 

93,046,676

 

 

$

9

 

 

$

1,243,135

 

 

$

(1,275

)

 

$

174,928

 

 

$

1,416,797

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(75,461

)

 

 

(75,461

)

Currency translation

 

 

 

 

 

 

 

 

 

 

 

108

 

 

 

 

 

 

108

 

Stock-based compensation

 

 

 

 

 

 

 

 

25,519

 

 

 

 

 

 

 

 

 

25,519

 

Stock option exercises and vesting of restricted stock units, net of withholdings and other

 

 

382,040

 

 

 

 

 

 

1,088

 

 

 

 

 

 

 

 

 

1,088

 

Shares repurchased and retired to satisfy tax withholding upon vesting

 

 

(122,326

)

 

 

 

 

 

(9,028

)

 

 

 

 

 

 

 

 

(9,028

)

Balance at March 31, 2021

 

 

93,306,390

 

 

$

9

 

 

$

1,260,714

 

 

$

(1,167

)

 

$

99,467

 

 

$

1,359,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

Balance at December 31, 2019

 

 

91,576,060

 

 

$

9

 

 

$

1,164,400

 

 

$

(1,628

)

 

$

330,789

 

 

$

1,493,570

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(33,427

)

 

 

(33,427

)

Currency translation

 

 

 

 

 

 

 

 

 

 

 

(643

)

 

 

 

 

 

(643

)

Stock-based compensation

 

 

 

 

 

 

 

 

24,994

 

 

 

 

 

 

 

 

 

24,994

 

Stock option exercises and vesting of restricted stock units, net of withholdings and other

 

 

494,525

 

 

 

 

 

 

1,414

 

 

 

 

 

 

 

 

 

1,414

 

Shares repurchased and retired to satisfy tax withholding upon vesting

 

 

(153,607

)

 

 

 

 

 

(8,051

)

 

 

 

 

 

 

 

 

(8,051

)

Balance at March 31, 2020

 

 

91,916,978

 

 

$

9

 

 

$

1,182,757

 

 

$

(2,271

)

 

$

297,362

 

 

$

1,477,857

 

(See Notes to Condensed Consolidated Financial Statements (unaudited))

 

6


 

GRUBHUB INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

 

1. Organization

Grubhub Inc., a Delaware corporation, and its wholly-owned subsidiaries (collectively referred to as the “Company”) provide an online and mobile takeout marketplace for restaurant pick-up and delivery orders. The Company connects diners and restaurants through restaurant technology and easy-to-use platforms. Diners enter their delivery address or use geo-location within the mobile applications and the Company displays the menus and other relevant information for restaurants in its network. Orders may be placed directly online, via mobile applications or over the phone. The Company primarily charges restaurant partners a per order commission that is percentage-based. In many markets, the Company also provides delivery services to restaurants on its platform that do not have their own delivery operations. The Company’s takeout marketplace, and related platforms where the Company provides marketing services to generate orders, are collectively referred to as the “Platform”.

2. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated interim financial statements include the accounts of Grubhub Inc. and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements include all wholly-owned subsidiaries and reflect all normal and recurring adjustments, as well as any other than normal adjustments, that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC on March 1, 2021 (the “2020 Form 10-K”). All significant intercompany transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021.

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. These estimates, judgments and assumptions take into account historical and forward-looking factors that the Company believes are reasonable including, but not limited to, the potential impacts arising from the COVID-19 pandemic and measures implemented to prevent its spread. As the extent and duration of the impacts from the COVID-19 pandemic remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Significant items subject to such estimates, judgments and assumptions include revenue recognition, website and internal-use software development costs, goodwill, valuation and recoverability of intangible assets with finite lives and other long-lived assets, stock-based compensation, and income taxes. Actual results could differ significantly from these estimates.  

Changes in Accounting Principle

There have been no material changes to the Company’s significant accounting policies described in the 2020 Form 10-K.

Recently Issued Accounting Pronouncements

There were no recently issued accounting pronouncements that had or are expected to have a material impact on our financial statements.

3. Merger Agreement

On June 10, 2020, the Company entered into an Agreement and Plan of Merger (as amended on September 4, 2020 and March 12, 2021, the “Merger Agreement”) with Just Eat Takeaway.com N.V. (“JET”), Checkers Merger Sub I, Inc., a Delaware corporation and wholly owned subsidiary of JET (“Merger Sub I”), and Checkers Merger Sub II, Inc., a Delaware corporation and wholly owned subsidiary of JET (“Merger Sub II”). Pursuant to the Merger Agreement, Merger Sub I will be merged with and into the Company (the “Initial Merger”), with the Company continuing as the surviving company in the Initial Merger (the “Initial Surviving Company”). Immediately thereafter, the Initial Surviving Company will merge with and into Merger Sub II (the “Subsequent Merger” and, together with the Initial Merger, the “Transaction”), with Merger Sub II continuing as the surviving company.

On and subject to the terms and conditions set forth in the Merger Agreement, at the effective time of the Initial Merger, each issued and outstanding share of our common stock (other than any shares of our common stock owned by the Company, JET, Merger Sub I, Merger Sub II or any other direct or indirect wholly owned subsidiary of JET), will be converted into one share of common

7


GRUBHUB INC.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

 

stock, par value $0.0001 per share, of the Initial Surviving Company (the “Initial Surviving Company Stock”). Each such share of Initial Surviving Company Stock will immediately thereafter be automatically exchanged for newly issued American depositary shares of JET (“JET ADS”) representing 0.6710 shares of the share capital of JET with a nominal value of €0.04 per share (“JET Shares”), with each JET ADS representing one-fifth of one JET Share (the “Merger Consideration”).

The registration statement and preliminary proxy statement in respect of the Transaction were publicly filed with the SEC on April 27, 2021, and the Grubhub special stockholder meeting to approve the Transaction and related matters as described in the preliminary proxy statement is expected to take place in June 2021. Subject to the satisfaction of customary closing conditions, Grubhub anticipates closing the Transaction shortly following the Grubhub special stockholder meeting.

The Company incurred certain expenses directly and indirectly related to mergers and acquisitions which were recognized in general and administrative expenses within the condensed consolidated statements of operations of $0.8 million and $0.7 million for the three months ended March 31, 2021 and 2020, respectively.

 

4. Marketable Securities

The amortized cost, unrealized gains and losses and estimated fair value of the Company’s held-to-maturity marketable securities as of March 31, 2021 and December 31, 2020 were as follows:

 

 

March 31, 2021

 

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Estimated

Fair Value

 

 

 

(in thousands)

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

$

12,858

 

 

$

 

 

$

(3

)

 

$

12,855

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

50,203

 

 

 

 

 

 

(32

)

 

 

50,171

 

Corporate bonds

 

 

5,621

 

 

 

 

 

 

(1

)

 

 

5,620

 

Total

 

$

68,682

 

 

$

 

 

$

(36

)

 

$

68,646

 

 

 

 

December 31, 2020

 

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Estimated

Fair Value

 

 

 

(in thousands)

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

$

15,498

 

 

$

 

 

$

(3

)

 

$

15,495

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

46,978

 

 

 

 

 

 

(33

)

 

 

46,945

 

Corporate bonds

 

 

6,148

 

 

 

1

 

 

 

(1

)

 

 

6,148

 

Total

 

$

68,624

 

 

$

1

 

 

$

(37

)

 

$

68,588

 

 

All of the Company’s marketable securities were classified as held-to-maturity investments and have maturities within one year of March 31, 2021. The Company evaluated its marketable securities aggregated by credit rating agency rating, all of which are highly rated, investment grade securities, considering historical investment losses, current market conditions and historical recovery rates of similar securities and determined that no material credit losses were expected as of March 31, 2021.

 

The gross unrealized losses, estimated fair value and length of time the individual marketable securities were in a continuous loss position for those marketable securities in an unrealized loss position as of March 31, 2021 and December 31, 2020 were as follows:

 

 

March 31, 2021

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

 

(in thousands)

 

Commercial paper

 

$

63,026

 

 

$

(35

)

 

$

 

 

$

 

 

$

63,026

 

 

$

(35

)

Corporate bonds

 

 

4,119

 

 

 

(1

)

 

 

 

 

 

 

 

 

4,119

 

 

 

(1

)

Total

 

$

67,145

 

 

$

(36

)

 

$

 

 

$

 

 

$

67,145

 

 

$

(36

)

8


GRUBHUB INC.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

 

 

 

 

 

December 31, 2020

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

 

(in thousands)

 

Commercial paper

 

$

62,440

 

 

$

(36

)

 

$

 

 

$

 

 

$

62,440

 

 

$

(36

)

Corporate bonds

 

 

4,569

 

 

 

(1

)

 

 

 

 

 

 

 

 

4,569

 

 

 

(1

)

Total

 

$

67,009

 

 

$

(37

)

 

$

 

 

$

 

 

$

67,009

 

 

$

(37

)

The Company recognized interest income during the three months ended March 31, 2021 and 2020 of $0.1 million and $0.9 million, respectively, within net interest expense on the condensed consolidated statements of operations. During the three months ended March 31, 2021 and 2020, the Company did not recognize any other-than-temporary impairment losses related to its marketable securities.

The Company’s marketable securities are classified within Level 2 of the fair value hierarchy (see Note 13, Fair Value Measurement, for further details).

5. Goodwill and Acquired Intangible Assets

The components of acquired intangible assets as of March 31, 2021 and December 31, 2020 were as follows:

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

 

(in thousands)

 

Restaurant relationships

 

$

492,791

 

 

$

(165,316

)

 

$

327,475

 

 

$

492,791

 

 

$

(158,885

)

 

$

333,906

 

Diner acquisition

 

 

48,293

 

 

 

(31,982

)

 

 

16,311

 

 

 

48,293