Corporate Investments and Funds Held for Clients

6 Months Ended

Dec. 31, 2021

Corporate Investments and Funds Held for Clients [Abstract]

Corporate Investments and Funds Held for Clients

(6) Corporate Investments and Funds Held for Clients

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


	June 30, 2021
Type of Issue	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	202,287	$	—	$	—	$	202,287
Funds held for clients' cash and cash equivalents	1,743,594		—		—		1,743,594
Available-for-sale securities:
Corporate bonds	13,390		70		—		13,460
Asset-backed securities	7,062		17		—		7,079
Total available-for-sale securities (1)	20,452		87		—		20,539
Total investments	$	1,966,333	$	87	$	—	$	1,966,420


			(1)			Included within the fair value of total available-for-sale securities above is $4,456 of corporate investments and $16,083 of funds held for clients.


	December 31, 2021
Type of Issue	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	84,104	$	—	$	—	$	84,104
Funds held for clients' cash and cash equivalents	1,770,689		—		—		1,770,689
Available-for-sale securities:
Commercial paper	62,240		3		(16)		62,227
Corporate bonds	42,873		—		(286)		42,587
Asset-backed securities	10,361		1		(26)		10,336
Certificates of deposit	20,500		—		(7)		20,493
U.S treasury securities	4,042		—		(19)		4,023
U.S government agency securities	7,000		—		(101)		6,899
Other	2,824		—		(15)		2,809
Total available-for-sale securities (2)	149,840		4		(470)		149,374
Total investments	$	2,004,633	$	4	$	(470)	$	2,004,167


			(2)			All available-for-sale securities are included in funds held for clients.

Cash and cash equivalents and funds held for clients’ cash and cash equivalents include demand deposit accounts, money market funds and commercial paper at June 30, 2021 and December 31, 2021.

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


	June 30, 2021		December 31, 2021
Cash and cash equivalents	$	202,287	$	84,104
Corporate investments	4,456		—
Funds held for clients	1,759,677		1,920,063
Total investments	$	1,966,420	$	2,004,167

Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of December 31, 2021 had fair market value as follows:


	December 31, 2021
	Securities in an unrealized loss position for less than 12 months
	Gross unrealized losses		Fair Value
Commercial paper	$	(16)	$	35,463
Corporate bonds	(286)		42,587
Asset-backed securities	(26)		9,664
Certificates of deposit	(7)		15,243
U.S. treasury securities	(19)		4,023
U.S. government agency securities	(101)		6,899
Other	(15)		2,809
Total available-for-sale securities	$	(470)	$	116,688

There were no available-for-sale securities in an unrealized loss position at June 30, 2021. As a result, no securities have been in an unrealized loss position for more than 12 months as of December 31, 2021.

The Company regularly reviews the composition of its portfolio to determine the existence of credit impairment. The Company did not recognize any credit impairment losses during the three or six months ended December 31, 2020 or 2021. All securities in the Company’s portfolio held an A-1 rating or better as of December 31, 2021.

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, 2020 or 2021. There were no realized gains or losses on the sale of available-for-sale securities for the three or six months ended December 31, 2020 or 2021.

Expected maturities of available-for-sale securities at December 31, 2021 are as follows:


	Amortized cost		Fair value
One year or less	$	94,906	$	94,867
One year to two years	33,284		33,124
Two years to three years	16,637		16,437
Three years to five years	5,013		4,946
Total available-for-sale securities	$	149,840	$	149,374