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INVESTMENTS IN DEBT SECURITIES

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS IN DEBT SECURITIES

INVESTMENTS IN DEBT SECURITIES

The Company's short-term and long-term investments as of September 30, 2021 are as follows (in thousands):

			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Short-term debt securities:
U.S. agency securities			$	93,867					$	227					$	(6)					$	94,088
Corporate bonds			290,231						369						(77)						290,523
Commercial paper			141,551						—						—						141,551
Municipal securities			15,738						12						—						15,750
Certificates of deposit			8,200						—						—						8,200
U.S. government securities			308,080						248						(5)						308,323
Foreign government securities			10,495						19						(140)						10,374
Total			$	868,162					$	875					$	(228)					$	868,809
Long-term debt securities:
U.S. agency securities			$	152,820					$	46					$	(175)					$	152,691
Corporate bonds			704,676						337						(916)						704,097
Municipal securities			21,952						23						(10)						21,965
U.S. government securities			543,483						34						(337)						543,180
Foreign government securities			29,139						59						(24)						29,174
Total			$	1,452,070					$	499					$	(1,462)					$	1,451,107

The Company's short-term and long-term investments as of December 31, 2020 are as follows (in thousands):

			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Short-term debt securities:
U.S. agency securities			$	153,386					$	782					$	(164)					$	154,004
Corporate bonds			76,957						256						(14)						77,199
Commercial paper			4,999						—						—						4,999
Municipal securities			10,377						57						(3)						10,431
U.S. government securities			404,194						1,244						(4)						405,434
Foreign government securities			42,988						139						(82)						43,045
Total			$	692,901					$	2,478					$	(267)					$	695,112
Long-term debt securities:
U.S. agency securities			$	168,762					$	519					$	(3)					$	169,278
Corporate bonds			174,655						1,401						(42)						176,014
Municipal securities			1,045						15						—						1,060
U.S. government securities			91,642						433						(2)						92,073
Foreign government securities			25,351						184						(10)						25,525
Total			$	461,455					$	2,552					$	(57)					$	463,950

The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.

The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2021 and December 31, 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

			September 30, 2021
			Less than 12 months												Greater than 12 months												Total
			Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
Short-term debt securities:
U.S. agency securities			$	23,705					$	(6)					$	—					$	—					$	23,705					$	(6)
Corporate bonds			166,579						(73)						925						(3)						167,504						(76)
Municipal securities			750						—						—						—						750						—
U.S. government securities			96,705						(5)						—						—						96,705						(5)
Foreign government securities			8,049						(140)						—						—						8,049						(140)
Total			$	295,788					$	(224)					$	925					$	(3)					$	296,713					$	(227)
Long-term debt securities:
U.S. agency securities			$	124,811					$	(175)					$	—					$	—					$	124,811					$	(175)
Corporate bonds			533,286						(916)						—						—						533,286						(916)
Municipal securities			4,054						(10)						—						—						4,054						(10)
U.S. government securities			470,202						(337)						—						—						470,202						(337)
Foreign government securities			14,087						(24)						—						—						14,087						(24)
Total			$	1,146,440					$	(1,462)					$	—					$	—					$	1,146,440					$	(1,462)

			December 31, 2020
			Less than 12 months												Greater than 12 months												Total
			Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
Short-term debt securities:
U.S. agency securities			$	41,711					$	(162)					$	2,505					$	(2)					$	44,216					$	(164)
Corporate bonds			15,255						(14)						—						—						15,255						(14)
Municipal securities			2,566						(3)						—						—						2,566						(3)
U.S. government securities			45,970						(4)						—						—						45,970						(4)
Foreign government securities			21,341						(82)						—						—						21,341						(82)
Total			$	126,843					$	(265)					$	2,505					$	(2)					$	129,348					$	(267)
Long-term debt securities:
U.S. agency securities			$	1,406					$	(3)					$	—					$	—					$	1,406					$	(3)
Corporate bonds			28,189						(42)						—						—						28,189						(42)
U.S. government securities			8,658						(2)						—						—						8,658						(2)
Foreign government securities			10,929						(10)						—						—						10,929						(10)
Total			$	49,182					$	(57)					$	—					$	—					$	49,182					$	(57)

The U.S. government and U.S. agency securities are either explicitly or implicitly guaranteed by the U.S. government and are highly rated by major rating agencies. The corporate bonds are issued by highly rated entities. The foreign government securities are issued by highly rated international entities. The Company has the ability and intent to hold these investments with unrealized losses for a reasonable period of time sufficient for the recovery of their amortized cost bases, which may be at maturity. The Company determines any realized gains or losses on the sale of marketable debt securities on a specific identification method, and records such gains and losses as a component of other expense, net.

The Company does not have any available for sale debt securities for which the Company has recorded credit related losses.

The contractual maturities of the Company's short-term and long-term investments as of September 30, 2021 are as follows (in thousands):

			Amortized Cost						Fair Value
Due in one year or less			$	868,162					$	868,809
Due in one to five years			1,452,070						1,451,107
Total			$	2,320,232					$	2,319,916

CUSTOMER FUNDS

The following table presents the assets underlying customer funds (in thousands):

			September 30, 2021						December 31, 2020
Cash			$	162,247					$	145,577
Customer funds in transit			—						262,562
Cash Equivalents:
Money market funds			1,485,002						777,193
Reverse repurchase agreement (i)			402,097						246,880
U.S. agency securities			—						47,300
U.S. government securities			133,944						111,796
Short-term debt securities:
U.S. agency securities			53,563						113,178
U.S. government securities			412,261						333,346
Total			$	2,649,114					$	2,037,832

(i) The Company has accounted for the reverse repurchase agreement with a third party as an overnight lending arrangement, collateralized by the securities subject to the repurchase agreement. The Company classifies the amounts due from the counterparty as cash equivalents due to the short-term nature.

The Company's investments within customer funds as of September 30, 2021 are as follows (in thousands):

			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Short-term debt securities:
U.S. agency securities			$	53,568					$	—					$	(5)					$	53,563
U.S. government securities			412,268						18						(25)						412,261
Total			$	465,836					$	18					$	(30)					$	465,824

The Company's investments within customer funds as of December 31, 2020 are as follows (in thousands):

			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Short-term debt securities:
U.S. agency securities			$	113,156					$	22					$	—					$	113,178
U.S. government securities			333,323						28						(5)						333,346
Total			$	446,479					$	50					$	(5)					$	446,524

The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.

The gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2021 and December 31, 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

			September 30, 2021
			Less than 12 months												Greater than 12 months												Total
			Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
Short-term debt securities:
U.S. agency securities			$	30,045					$	(5)					$	—					$	—					$	30,045					$	(5)
U.S. government securities			247,634						(25)						—						—						247,634						(25)
Total			$	277,679					$	(30)					$	—					$	—					$	277,679					$	(30)

			December 31, 2020
			Less than 12 months												Greater than 12 months												Total
			Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
Short-term debt securities:
U.S. government securities			$	73,609					$	(5)					$	—					$	—					$	73,609					$	(5)
Total			$	73,609					$	(5)					$	—					$	—					$	73,609					$	(5)

The unrealized losses above were caused by interest rate changes. The U.S. government securities are either explicitly or implicitly guaranteed by the U.S. government and are highly rated by major rating agencies. The Company has the ability and intent to hold these investments with unrealized losses for a reasonable period of time sufficient for the recovery of their amortized cost bases, which may be at maturity. The Company determines any realized gains or losses on the sale of marketable debt securities on a specific identification method, and records such gains and losses as a component of other expense, net.

The Company does not have any available for sale debt securities for which the Company has recorded credit related losses.

The contractual maturities of the Company's investments within customer funds as of September 30, 2021 are as follows (in thousands):

			Amortized Cost						Fair Value
Due in one year or less			$	465,836					$	465,824
Due in one to five years			—						—
Total			$	465,836					$	465,824

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- References

No definition available.

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- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2209399

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2324412

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-URI http://asc.fasb.org/topic&trid=2196928

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2176304

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1403
-Paragraph (b)

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