PREPAID EXPENSES AND OTHER ASSETS

6 Months Ended

Dec. 31, 2024

Prepaid expenses and other current assets:


	As of December 31, 2024		As of June 30, 2024
Deposits and restricted cash	$	1,616	$	4,142
Capitalized costs to obtain a contract	39,166		44,577
Short-term prepaid expenses and other current assets	143,937		192,065
Derivative asset (1)	2,044		2,127
Total	$	186,763	$	242,911

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(1)Represents the asset related to our derivative instrument activity (see Note 15 “Derivative Instruments and Hedging Activities” for more details).

Other assets:


	As of December 31, 2024		As of June 30, 2024
Deposits and restricted cash	$	22,211	$	20,063
Capitalized costs to obtain a contract	71,813		64,911

Investments	119,919		124,168
Available-for-sale financial assets	40,012		40,541
Long-term prepaid expenses and other long-term assets	42,427		48,598
Total	$	296,382	$	298,281

Deposits and restricted cash primarily relate to security deposits provided to landlords in accordance with facility lease agreements and cash restricted per the terms of certain contractual-based agreements.

Capitalized costs to obtain a contract relate to incremental costs of obtaining a contract, such as sales commissions, which are eligible for capitalization on contracts to the extent that such costs are expected to be recovered (see Note 3 “Revenues”).

Investments relate to certain investment funds in which we are a limited partner. Our interests in each of these investees range from 4% to below 20%. These investments are accounted for using the equity method. Our share of net income or losses based on our interest in these investments, which approximates fair value and is subject to volatility based on market trends and business conditions, is recorded as a component of Other income (expense), net in our Condensed Consolidated Statements of Income (see Note 20 “Other Income (Expense), Net”). During the three and six months ended December 31, 2024, our share of income (loss) from these investments was $1.5 million and $2.0 million, respectively (three and six months ended December 31, 2023—$(8.5) million and $(18.2) million, respectively).

A portion of the available-for-sale financial assets relate to contractual arrangements under insurance policies held by the Company with guaranteed interest rates that are utilized to meet certain pension and post-retirement obligations but do not meet the definition of a plan asset. The remaining portion of available-for-sale financial assets are primarily comprised of various debt and equity funds, which are valued utilizing market quotes provided by our third-party custodian. These arrangements are treated as available-for-sale financial assets measured at fair value quarterly (see Note 14 “Fair Value Measurement”) with unrealized gains and losses recorded within “Other comprehensive income (loss), net” (see Note 18 “Accumulated Other Comprehensive Income (Loss)”).

Prepaid expenses and other assets, both short-term and long-term, include advance payments on licenses that are being amortized over the applicable terms of the licenses and other miscellaneous assets.