XML 46 R11.htm IDEA: XBRL DOCUMENT

Corporate Investments and Funds Held for Clients

6 Months Ended

Dec. 31, 2019

Corporate Investments and Funds Held for Clients

Corporate Investments and Funds Held for Clients

(5) Corporate Investments and Funds Held for Clients

Corporate investments and funds held for clients consist of the following:


	June 30, 2019
			Gross		Gross
	Amortized		unrealized		unrealized
Type of Issue	cost		gains		losses		Fair value
Cash and cash equivalents	$	132,478	$	—	$	(2)	$	132,476
Funds held for clients' cash and cash equivalents		1,293,673		—		(6)		1,293,667
Available-for-sale securities:
Commercial paper		63,397		33		(2)		63,428
Corporate bonds		27,044		59		(4)		27,099
Asset-backed securities		26,488		55		(3)		26,540
U.S. treasury securities		13,736		21		—		13,757
Total available-for-sale securities (1)		130,665		168		(9)		130,824
Total investments	$	1,556,816	$	168	$	(17)	$	1,556,967

(1)

Included within the fair value of total available-for-sale securities above is $30,022 of corporate investments and $100,802 of funds held for clients.


	December 31, 2019
			Gross		Gross
	Amortized		unrealized		unrealized
Type of Issue	cost		gains		losses		Fair value
Cash and cash equivalents	$	75,902	$	1	$	(3)	$	75,900
Funds held for clients' cash and cash equivalents		1,660,771		1		(1)		1,660,771
Available-for-sale securities:
Commercial paper		148,627		7		(8)		148,626
Corporate bonds		22,511		54		(1)		22,564
Asset-backed securities		55,857		68		(14)		55,911
U.S. treasury securities		33,891		9		(3)		33,897
Total available-for-sale securities (2)		260,886		138		(26)		260,998
Total investments	$	1,997,559	$	140	$	(30)	$	1,997,669

(2)

Included within the fair value of total available-for-sale securities above is $76,475 of corporate investments and $184,523 of funds held for clients.

Cash and cash equivalents and funds held for clients’ cash and cash equivalents include demand deposit accounts, money market funds, commercial paper and short-term U.S. treasury securities as of June 30, 2019 and December 31, 2019.

Classification of investments on the unaudited consolidated balance sheets is as follows:


	June 30,		December 31,
	2019		2019
Cash and cash equivalents	$	132,476	$	75,900
Corporate investments		29,314		69,849
Funds held for clients		1,394,469		1,845,294
Long-term prepaid expenses and other		708		6,626
Total investments	$	1,556,967	$	1,997,669

Available-for-sale securities that have been in an unrealized loss position for a period of less and greater than 12 months are as follows:


	June 30, 2019
	Securities in an				Securities in an
	unrealized loss				unrealized loss
	position for less				position for greater
	than 12 months				than 12 months				Total
	Gross				Gross				Gross
	unrealized				unrealized				unrealized
	losses		Fair value		losses		Fair value		losses		Fair value
Commercial paper	$	(2)	$	19,055	$	—	$	—	$	(2)	$	19,055
Corporate bonds		(1)		1,500		(3)		3,701		(4)		5,201
Asset-backed securities		(1)		386		(2)		2,958		(3)		3,344
Total available-for-sale securities	$	(4)	$	20,941	$	(5)	$	6,659	$	(9)	$	27,600


	December 31, 2019
	Securities in an				Securities in an
	unrealized loss				unrealized loss
	position for less				position for greater
	than 12 months				than 12 months				Total
	Gross				Gross				Gross
	unrealized				unrealized				unrealized
	losses		Fair value		losses		Fair value		losses		Fair value
Commercial paper	$	(8)	$	79,890	$	—	$	—	$	(8)	$	79,890
Corporate bonds		(1)		2,908		—		—		(1)		2,908
Asset-backed securities		(13)		29,007		(1)		266		(14)		29,273
U.S. treasury securities		(3)		19,200		—		—		(3)		19,200
Total available-for-sale securities	$	(25)	$	131,005	$	(1)	$	266	$	(26)	$	131,271

The Company regularly reviews the composition of its portfolio to determine the existence of other-than-temporary-impairment (“OTTI”). The Company did not recognize any OTTI charges in accumulated other comprehensive income during the three or six months ended December 31, 2018 or 2019, nor does it believe that OTTI exists in its portfolio as of December 31, 2019. The Company plans to retain the securities in an unrealized loss position for a period of time sufficient enough to recover their amortized cost basis or until their maturity date. The Company believes that the unrealized losses on these securities were not due to deterioration in credit risk. The securities in an unrealized loss position held an A-1 rating or better as of December 31, 2019.

The Company did not make any material reclassification adjustments out of accumulated other comprehensive income for realized gains and losses on the sale of available-for-sale securities during the three or six months ended December 31, 2018 or 2019. Gross realized gains and losses on the sale of available-for-sale securities were immaterial for both the three and six months ended December 31, 2018 and 2019.

Expected maturities of available-for-sale securities at December 31, 2019 are as follows:


	Amortized
	cost		Fair value
One year or less	$	232,303	$	232,346
One year to two years		28,583		28,652
Total available-for-sale securities	$	260,886	$	260,998