XML 26 R14.htm IDEA: XBRL DOCUMENT v3.19.1
Customer Trust Funds
 3 Months Ended
Mar. 31, 2019
Investments Debt And Equity Securities [Abstract]  
Customer Trust Funds

5. Customer Trust Funds

Investment income from invested customer trust funds is a component of our compensation for providing services under agreements with our customers. Investment income from invested customer trust funds included in revenue was $24.3 and $17.6 for the three months ended March 31, 2019, and 2018, respectively.  Investment income includes interest income, realized gains and losses from sales of customer trust funds’ investments, and unrealized credit losses determined to be other-than-temporary.

The amortized cost of customer trust funds as of March 31, 2019, and December 31, 2018, is the original cost of assets acquired. The amortized cost and fair values of investments of customer trust funds available for sale as of March 31, 2019, and December 31, 2018, are as follows:

Investments of Customer Trust Funds at March 31, 2019

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gain

 

 

Loss

 

 

Value

 

Money market securities, investments carried at cost and

   other cash equivalents

 

$

2,701.2

 

 

$

—

 

 

$

—

 

 

$

2,701.2

 

Available for sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

 

598.2

 

 

 

1.1

 

 

 

(5.1

)

 

 

594.2

 

Canadian and provincial government securities

 

 

396.4

 

 

 

6.8

 

 

 

(0.3

)

 

 

402.9

 

Corporate debt securities

 

 

551.4

 

 

 

4.8

 

 

 

(1.1

)

 

 

555.1

 

Asset-backed securities

 

 

257.0

 

 

 

0.7

 

 

 

(1.1

)

 

 

256.6

 

Mortgage-backed securities

 

 

24.3

 

 

 

0.1

 

 

 

(0.1

)

 

 

24.3

 

Other securities

 

 

14.7

 

 

 

—

 

 

 

(0.1

)

 

 

14.6

 

Total available for sale investments

 

 

1,842.0

 

 

 

13.5

 

 

 

(7.8

)

 

 

1,847.7

 

Invested customer trust funds

 

 

4,543.2

 

 

$

13.5

 

 

$

(7.8

)

 

 

4,548.9

 

Trust receivables

 

 

10.8

 

 

 

 

 

 

 

 

 

 

 

10.8

 

Total customer trust funds

 

$

4,554.0

 

 

 

 

 

 

 

 

 

 

$

4,559.7

 

 

Investments of Customer Trust Funds at December 31, 2018

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gain

 

 

Loss

 

 

Value

 

Money market securities, investments carried at cost and

   other cash equivalents

 

$

872.3

 

 

$

—

 

 

$

—

 

 

$

872.3

 

Available for sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

 

573.4

 

 

 

0.2

 

 

 

(11.4

)

 

 

562.2

 

Canadian and provincial government securities

 

 

392.5

 

 

 

3.4

 

 

 

(1.4

)

 

 

394.5

 

Corporate debt securities

 

 

499.5

 

 

 

0.5

 

 

 

(4.7

)

 

 

495.3

 

Asset-backed securities

 

 

247.1

 

 

 

0.2

 

 

 

(2.7

)

 

 

244.6

 

Mortgage-backed securities

 

 

8.5

 

 

 

—

 

 

 

(0.2

)

 

 

8.3

 

Other securities

 

 

14.8

 

 

 

—

 

 

 

(0.1

)

 

 

14.7

 

Total available for sale investments

 

 

1,735.8

 

 

 

4.3

 

 

 

(20.5

)

 

 

1,719.6

 

Invested customer trust funds

 

 

2,608.1

 

 

$

4.3

 

 

$

(20.5

)

 

 

2,591.9

 

Trust receivables

 

 

11.6

 

 

 

 

 

 

 

 

 

 

 

11.6

 

Total customer trust funds

 

$

2,619.7

 

 

 

 

 

 

 

 

 

 

$

2,603.5

 

 

The following represents the gross unrealized losses and the related fair value of the investments of customer trust funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019.

 

 

 

Less than 12 months

 

 

12 months or more

 

 

Total

 

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

U.S. government and agency securities

 

$

(0.1

)

 

$

24.7

 

 

$

(5.0

)

 

$

384.6

 

 

$

(5.1

)

 

$

409.3

 

Canadian and provincial government securities

 

 

—

 

 

 

—

 

 

 

(0.3

)

 

 

98.7

 

 

 

(0.3

)

 

 

98.7

 

Corporate debt securities

 

(a)

 

 

 

16.4

 

 

 

(1.1

)

 

 

169.3

 

 

 

(1.1

)

 

 

185.7

 

Asset-backed securities

 

(a)

 

 

 

5.0

 

 

 

(1.1

)

 

 

156.7

 

 

 

(1.1

)

 

 

161.7

 

Mortgage-backed securities

 

(a)

 

 

 

4.0

 

 

 

(0.1

)

 

 

7.4

 

 

 

(0.1

)

 

 

11.4

 

Other securities

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

10.3

 

 

 

(0.1

)

 

 

10.3

 

Total available for sale investments

 

$

(0.1

)

 

$

50.1

 

 

$

(7.7

)

 

$

827.0

 

 

$

(7.8

)

 

$

877.1

 

 

(a)

These investments have been in an unrealized loss position; however, the amount of unrealized loss is less than $0.05.

Management does not believe that any individual unrealized loss as of March 31, 2019, represents an other-than-temporary impairment. The unrealized losses are primarily attributable to changes in interest rates and not to credit deterioration. We currently do not intend to sell or expect to be required to sell the securities before the time required to recover the amortized cost.

The amortized cost and fair value of investment securities available for sale at March 31, 2019, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or to prepay obligations with or without call or prepayment penalties.

 

 

 

March 31, 2019

 

 

 

Cost

 

 

Fair Value

 

Due in one year or less

 

$

3,161.8

 

 

$

3,160.9

 

Due in one to three years

 

 

545.1

 

 

 

545.3

 

Due in three to five years

 

 

601.1

 

 

 

608.0

 

Due after five years

 

 

235.2

 

 

 

234.7

 

Invested customer trust funds

 

$

4,543.2

 

 

$

4,548.9