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v3.24.2

Investment Securities (Tables) | 6 Months Ended
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Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract] |
Schedule of Available-for-Sale Securities | The Company’s amortized cost and estimated fair value of investment securities as of June 30, 2024 and December 31, 2023 are presented below. Accrued interest on investment securities of $28.4 million and $24.7 million, respectively, as of June 30, 2024 and December 31, 2023, is excluded from total investment securities and recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets.
(in millions) | Amortized Cost |  | Total Unrealized Gains |  | Total Unrealized Losses |  | Fair Value(1)
As of June 30, 2024 |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |
Debt securities(2): |  |  |  |  |  |  |
U.S. treasury notes | $ | 429.9 |  |  | $ | 0.1 |  |  | $ | 35.0 |  |  | $ | 395.1 |
Corporate and sovereign debt securities | 1,227.5 |  |  | 5.5 |  |  | 35.3 |  |  | 1,197.6 |
Municipal bonds | 70.9 |  |  | 0.2 |  |  | 5.8 |  |  | 65.4 |
Asset-backed securities | 668.0 |  |  | 5.9 |  |  | 2.7 |  |  | 671.2 |
Mortgage-backed securities | 1,040.3 |  |  | 2.9 |  |  | 50.0 |  |  | 993.2 |
Total | $ | 3,436.6 |  |  | $ | 14.7 |  |  | $ | 128.8 |  |  | $ | 3,322.5 |
Non-current: |  |  |  |  |  |  |
Debt securities(3) | $ | 28.5 |  |  | $ | 0.2 |  |  | $ | 1.3 |  |  | $ | 27.4 |
Mutual fund | 29.4 |  |  | — |  |  | 3.9 |  |  | 25.4 |
Pooled investment fund | 12.9 |  |  | — |  |  | — |  |  | 12.9 |
Total | $ | 70.8 |  |  | $ | 0.2 |  |  | $ | 5.2 |  |  | $ | 65.7 |
Total investment securities(4) | $ | 3,507.4 |  |  | $ | 14.9 |  |  | $ | 134.0 |  |  | $ | 3,388.2 |
(in millions) | Amortized Cost |  | Total Unrealized Gains |  | Total Unrealized Losses |  | Fair Value(1)
As of December 31, 2023 |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |
U.S. treasury notes | $ | 410.1 |  |  | $ | 0.8 |  |  | $ | 32.3 |  |  | $ | 378.6 |
Corporate and sovereign debt securities | 1,086.8 |  |  | 13.6 |  |  | 31.6 |  |  | 1,068.8 |
Municipal bonds | 70.8 |  |  | 0.3 |  |  | 5.4 |  |  | 65.7 |
Asset-backed securities | 582.6 |  |  | 3.2 |  |  | 4.2 |  |  | 581.6 |
Mortgage-backed securities | 951.5 |  |  | 5.9 |  |  | 30.0 |  |  | 927.4 |
Total | $ | 3,101.8 |  |  | $ | 23.8 |  |  | $ | 103.5 |  |  | $ | 3,022.1 |
Non-current: |  |  |  |  |  |  |
Debt securities(3) | $ | 28.6 |  |  | $ | 0.6 |  |  | $ | 0.8 |  |  | $ | 28.4 |
Mutual fund | 29.1 |  |  | — |  |  | 3.6 |  |  | 25.5 |
Pooled investment fund | 12.9 |  |  | — |  |  | — |  |  | 12.9 |
Total | $ | 70.6 |  |  | $ | 0.6 |  |  | $ | 4.4 |  |  | $ | 66.8 |
Total investment securities(4) | $ | 3,172.4 |  |  | $ | 24.4 |  |  | $ | 107.9 |  |  | $ | 3,088.9 |
(1)The Company’s methods for measuring the fair value of its investment securities are discussed in Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk. (2)As of June 30, 2024, the Company has pledged debt securities with a fair value of $82.5 million as collateral against recurring settlement obligations owed in conjunction with its transactions processed through licensed card networks, $360.4 million as collateral for FHLB advances and $699.2 million as collateral against borrowings under the BTFP, as further discussed in Note 10, Financing and Other Debt. (3)Substantially comprised of municipal bonds. (4)Excludes $15.6 million and $13.7 million in equity securities as of June 30, 2024 and December 31, 2023, respectively, included in prepaid expenses and other current assets and other assets on the condensed consolidated balance sheets.
Schedule of Estimated Fair Value and Gross Unrealized Losses of Debt Securities in an Unrealized Loss Position | The following table presents estimated fair value and gross unrealized losses of debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security category. There are no expected credit losses that have been recorded against our investment securities as of June 30, 2024 and December 31, 2023.
| As of June 30, 2024 |  |  |  |
| Less than one year |  | One year or longer |  | Total |  |  |  |
(in millions) | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  |  |  |  |  |  |  |
Investment-grade rated debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury notes | $ | 23.1 |  |  | $ | 0.2 |  |  | $ | 356.3 |  |  | $ | 34.8 |  |  | $ | 379.4 |  |  | $ | 35.0 |  |  |  |  |  |  |  |  |
Corporate debt securities | 342.5 |  |  | 3.7 |  |  | 526.6 |  |  | 31.6 |  |  | 869.1 |  |  | 35.3 |  |  |  |  |  |  |  |  |
Municipal bonds | 24.9 |  |  | 0.5 |  |  | 41.8 |  |  | 6.6 |  |  | 66.7 |  |  | 7.1 |  |  |  |  |  |  |  |  |
Asset-backed securities | 51.3 |  |  | 0.4 |  |  | 78.9 |  |  | 2.4 |  |  | 130.2 |  |  | 2.8 |  |  |  |  |  |  |  |  |
Mortgage-backed securities | 289.3 |  |  | 5.3 |  |  | 552.0 |  |  | 44.6 |  |  | 841.3 |  |  | 49.9 |  |  |  |  |  |  |  |  |
Total debt securities | $ | 731.1 |  |  | $ | 10.1 |  |  | $ | 1,555.6 |  |  | $ | 120.0 |  |  | $ | 2,286.7 |  |  | $ | 130.1 |  |  |  |  |  |  |  |  |
| As of December 31, 2023 |  |  |  |  |  |  |  |
| Less than one year |  | One year or longer |  | Total |  |  |  |
Investment-grade rated debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury notes | $ | — |  |  | $ | — |  |  | $ | 358.6 |  |  | $ | 32.3 |  |  | $ | 358.6 |  |  | $ | 32.3 |  |  |  |  |  |  |  |  |
Corporate debt securities | 132.7 |  |  | 2.3 |  |  | 482.9 |  |  | 29.3 |  |  | 615.6 |  |  | 31.6 |  |  |  |  |  |  |  |  |
Municipal bonds | 25.3 |  |  | 0.2 |  |  | 42.5 |  |  | 6.0 |  |  | 67.8 |  |  | 6.2 |  |  |  |  |  |  |  |  |
Asset-backed securities | 55.0 |  |  | 0.2 |  |  | 131.1 |  |  | 4.0 |  |  | 186.1 |  |  | 4.2 |  |  |  |  |  |  |  |  |
Mortgage-backed securities | 374.5 |  |  | 4.7 |  |  | 262.4 |  |  | 25.3 |  |  | 636.9 |  |  | 30.0 |  |  |  |  |  |  |  |  |
Total debt securities | $ | 587.5 |  |  | $ | 7.4 |  |  | $ | 1,277.5 |  |  | $ | 96.9 |  |  | $ | 1,865.0 |  |  | $ | 104.3 |  |  |  |  |  |  |  |  |
Schedule of Maturity Dates of Available-for-Sale Securities | The following table summarizes the contractual maturity dates of the Company’s debt securities.
| June 30, 2024 |  |
(in millions) | Amortized Cost |  | Fair Value |  |  |  |
Due within one year | $ | 117.9 |  |  | $ | 115.9 |  |  |  |  |
Due after 1 year through year 5 | 739.9 |  |  | 696.8 |  |  |  |  |
Due after 5 years through year 10 | 973.5 |  |  | 948.3 |  |  |  |  |
Due after 10 years | 1,633.8 |  |  | 1,588.9 |  |  |  |  |
Total | $ | 3,465.1 |  |  | $ | 3,349.9 |  |  |  |  |

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