Corporate Investments and Funds Held for Clients

9 Months Ended

Mar. 31, 2022

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.


	March 31, 2022
Type of Issue	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	96,465	$	—	$	—	$	96,465
Funds held for clients' cash and cash equivalents	4,176,903		—		—		4,176,903
Available-for-sale securities:
Commercial paper	49,440		—		(113)		49,327
Corporate bonds	54,607		1		(1,289)		53,319
Asset-backed securities	8,082		—		(135)		7,947
Certificates of deposit	23,785		—		(50)		23,735
U.S treasury securities	4,036		—		(90)		3,946
U.S government agency securities	7,000		—		(372)		6,628
Other	2,823		—		(61)		2,762
Total available-for-sale securities (2)	149,773		1		(2,110)		147,664
Total investments	$	4,423,141	$	1	$	(2,110)	$	4,421,032


			(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 and money market funds at June 30, 2021 and March 31, 2022.

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


	June 30, 2021		March 31, 2022
Cash and cash equivalents	$	202,287	$	96,465
Corporate investments	4,456		—
Funds held for clients	1,759,677		4,324,567

Total investments	$	1,966,420	$	4,421,032

Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of March 31, 2022 had fair market value as follows:


	March 31, 2022
	Securities in an unrealized loss position for less than 12 months
	Gross unrealized losses		Fair Value
Commercial paper	$	(113)	$	49,327
Corporate bonds	(1,289)		51,909
Asset-backed securities	(135)		7,826
Certificates of deposit	(50)		22,734
U.S. treasury securities	(90)		3,946
U.S. government agency securities	(372)		6,628
Other	(61)		2,762
Total available-for-sale securities	$	(2,110)	$	145,132

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 March 31, 2022.

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 nine months ended March 31, 2021 or 2022. All securities in the Company’s portfolio held an A-1 rating or better as of March 31, 2022.

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 nine months ended March 31, 2021 or 2022. There were no realized gains or losses on the sale of available-for-sale securities for the three or nine months ended March 31, 2021 or 2022.

Expected maturities of available-for-sale securities at March 31, 2022 are as follows:


	Amortized cost		Fair value
One year or less	$	98,775	$	98,392
One year to two years	26,988		26,369
Two years to three years	20,000		19,138
Three years to five years	4,010		3,765
Total available-for-sale securities	$	149,773	$	147,664