XML 67 R13.htm IDEA: XBRL DOCUMENT
v3.20.1

Customer Trust Funds | 3 Months Ended
--- | ---
Mar. 31, 2020
Investments Debt And Equity Securities [Abstract] |
Customer Trust Funds | 4. Customer Trust Funds Investment income from invested customer trust funds, also referred to as float revenue or float, 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 $19.6 million and $24.3 million for the three months ended March 31, 2020, and 2019, respectively. Investment income includes interest income, realized gains and losses from sales of customer trust funds’ investments, and unrealized credit losses determined to be unrecoverable. The amortized cost of customer trust funds as of March 31, 2020, and December 31, 2019, 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, 2020, and December 31, 2019, were as follows: Investments of Customer Trust Funds at March 31, 2020
|  | Amortized |  |  | Gross Unrealized |  |  | Fair |
|  | Cost |  |  | Gain |  |  | Loss |  |  | Value |
|  | (Dollars in millions) |
Money market securities, investments carried at cost and other cash equivalents |  | $ | 1,872.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,872.4 |
Available for sale investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  |  | 542.3 |  |  |  | 22.9 |  |  |  | — |  |  |  | 565.2 |
Canadian and provincial government securities |  |  | 375.2 |  |  |  | 11.3 |  |  |  | — |  |  |  | 386.5 |
Corporate debt securities |  |  | 529.8 |  |  |  | 9.3 |  |  |  | (0.5 | ) |  |  | 538.6 |
Asset-backed securities |  |  | 247.0 |  |  |  | 1.8 |  |  |  | (0.8 | ) |  |  | 248.0 |
Mortgage-backed securities |  |  | 17.9 |  |  |  | 0.3 |  |  |  | — |  |  |  | 18.2 |
Other securities |  |  | 4.0 |  |  |  | — |  |  |  | — |  |  |  | 4.0 |
Total available for sale investments |  |  | 1,716.2 |  |  |  | 45.6 |  |  |  | (1.3 | ) |  |  | 1,760.5 |
Invested customer trust funds |  |  | 3,588.6 |  |  | $ | 45.6 |  |  | $ | (1.3 | ) |  |  | 3,632.9 |
Trust receivables |  |  | 16.6 |  |  |  |  |  |  |  |  |  |  |  | 16.6 |
Total customer trust funds |  | $ | 3,605.2 |  |  |  |  |  |  |  |  |  |  | $ | 3,649.5 |
Investments of Customer Trust Funds at December 31, 2019
|  | Amortized |  |  | Gross Unrealized |  |  | Fair |
|  | Cost |  |  | Gain |  |  | Loss |  |  | Value |
|  | (Dollars in millions) |
Money market securities, investments carried at cost and other cash equivalents |  | $ | 1,348.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,348.1 |
Available for sale investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  |  | 542.4 |  |  |  | 7.1 |  |  |  | (0.3 | ) |  |  | 549.2 |
Canadian and provincial government securities |  |  | 406.7 |  |  |  | 5.4 |  |  |  | (0.7 | ) |  |  | 411.4 |
Corporate debt securities |  |  | 562.2 |  |  |  | 9.0 |  |  |  | (0.3 | ) |  |  | 570.9 |
Asset-backed securities |  |  | 270.0 |  |  |  | 1.7 |  |  |  | (0.3 | ) |  |  | 271.4 |
Mortgage-backed securities |  |  | 19.8 |  |  |  | 0.2 |  |  |  | (0.1 | ) |  |  | 19.9 |
Other securities |  |  | 4.0 |  |  |  | — |  |  |  | — |  |  |  | 4.0 |
Total available for sale investments |  |  | 1,805.1 |  |  |  | 23.4 |  |  |  | (1.7 | ) |  |  | 1,826.8 |
Invested customer trust funds |  |  | 3,153.2 |  |  | $ | 23.4 |  |  | $ | (1.7 | ) |  |  | 3,174.9 |
Trust receivables (a) |  |  | 40.4 |  |  |  |  |  |  |  |  |  |  |  | 29.2 |
Total customer trust funds |  | $ | 3,193.6 |  |  |  |  |  |  |  |  |  |  | $ | 3,204.1 |
(a) | The fair value of trust receivables as of December 31, 2019, includes a loss of $11.2 million related to unrecovered duplicate payments resulting from the September 26, 2019, isolated service incident. Ceridian is liable for these unrecovered duplicate payments and has reimbursed the customer trust for the resulting losses as of March 31, 2020. Please refer to Note 13, “Commitments and Contingencies,” for further discussion of the September 26, 2019, isolated service incident.
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, 2020.
|  | Less than 12 months |  |  | 12 months or more |  |  | Total |
|  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |
|  | (Dollars in millions) |
Corporate debt securities |  | $ | (0.5 | ) |  | $ | 86.6 |  |  | (a) |  |  | $ | 31.2 |  |  | $ | (0.5 | ) |  | $ | 117.8 |
Asset-backed securities |  |  | (0.8 | ) |  |  | 114.0 |  |  |  | — |  |  |  | — |  |  |  | (0.8 | ) |  |  | 114.0 |
Total available for sale investments |  | $ | (1.3 | ) |  | $ | 200.6 |  |  | $ | — |  |  | $ | 31.2 |  |  | $ | (1.3 | ) |  | $ | 231.8 |
(a) | These investments have been in an unrealized loss position; however, the amount of unrealized loss is less than $0.05 million.
Management does not believe that any individual unrealized loss was unrecoverable as of March 31, 2020. 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, 2020, 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, 2020 |
|  | Cost |  |  | Fair Value |
|  | (Dollars in millions) |
Due in one year or less |  | $ | 2,221.1 |  |  | $ | 2,222.1 |
Due in one to three years |  |  | 711.9 |  |  |  | 725.0 |
Due in three to five years |  |  | 494.5 |  |  |  | 513.4 |
Due after five years |  |  | 161.1 |  |  |  | 172.4 |
Invested customer trust funds |  | $ | 3,588.6 |  |  | $ | 3,632.9 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration