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Financial Instruments | 9 Months Ended
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Sep. 30, 2021
Investments, All Other Investments [Abstract] |
Financial Instruments | FINANCIAL INSTRUMENTSAvailable-For-Sale Debt Securities - In connection with certain services provided by our payroll operations, we collect funds from our clients’ accounts in advance of paying client obligations. These funds held for clients are segregated and invested in accordance with our investment policy, which requires all investments carry an investment grade rating at the time of initial investment. These investments, primarily consisting of corporate and municipal bonds, are classified as available-for-sale and are included in the “Funds held for clients” line item on the accompanying Condensed Consolidated Balance Sheets. The par value of these investments totaled $27.1 million and $24.9 million at September 30, 2021 and December 31, 2020, respectively, and had maturity or callable dates ranging from October 2021 through November 2025. At September 30, 2021, unrealized losses on the securities were not material and have not been recognized as a credit loss because the bonds are investment grade quality and management is not required or does not intend to sell prior to an expected recovery in value. The bond issuers continue to make timely principal and interest payments. The following table summarizes activities related to these investments for the nine months ended September 30, 2021 and the twelve months ended December 31, 2020 (in thousands):
| Nine Months Ended September 30, 2021 |  | Twelve Months Ended December 31, 2020 |
Fair value at beginning of period | $ | 25,708 |  |  | $ | 60,659 |  |
Purchases | 13,050 |  |  | 3,447 |  |
Redemptions | (6,280) |  |  | (22,078) |  |
Maturities | (4,520) |  |  | (15,409) |  |
Change in bond premium | 874 |  |  | (857) |  |
Fair market value adjustment | (377) |  |  | (54) |  |
Fair value at end of period | $ | 28,455 |  |  | $ | 25,708 |  |
In addition to the available-for-sale debt securities discussed above, we also held other depository assets in the amount of $4.8 million as of September 30, 2021. We did not have any depository items at December 31, 2020. Those depository assets are classified as Level 1 in the fair value hierarchy. Interest Rate Swaps - We utilize interest rate swaps to manage interest rate risk exposure associated with our floating-rate debt under the 2018 credit facility, or the forecasted acquisition of such liability. We do not purchase or hold any derivative instruments for trading or speculative purposes. Refer to the Annual Report on Form 10-K for the year ended December 31, 2020 for further discussion on our interest rate swaps. During the first quarter of 2021, one interest rate swap expired with a notional value of $10.0 million. As of September 30, 2021, we have three interest rate swaps outstanding. Under the terms of the interest rate swaps, we pay interest at a fixed rate of interest plus applicable margin as stated in the agreement, and receive interest that varies with the one-month LIBOR. The notional value, fixed rate of interest and expiration date of each interest rate swap as of September 30, 2021 was (i) $20.0 million – 1.770% - May 2022, (ii) $15.0 million – 2.640% - June 2023 and (iii) $50.0 million - 0.885% - April 2025. Refer to Note 7, Fair Value Measurements, for additional disclosures regarding fair value measurements. The following table summarizes our outstanding interest rate swaps and their classification in the accompanying Condensed Consolidated Balance Sheets at September 30, 2021 and December 31, 2020 (in thousands):
| September 30, 2021
| Notional Amount |  | Fair Value |  | Balance Sheet Location
Interest rate swap | $ | 20,000 |  |  | $ | (211) |  |  | Other current liability
Interest rate swaps | $ | 65,000 |  |  | $ | (575) |  |  | Other non-current liabilities
| December 31, 2020
| Notional Amount |  | Fair Value |  | Balance Sheet Location
Interest rate swap | $ | 10,000 |  |  | $ | (13) |  |  | Other current liability
Interest rate swaps | $ | 85,000 |  |  | $ | (2,552) |  |  | Other non-current liabilities
The following table summarizes the effects of the interest rate swaps on the accompanying Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020 (in thousands):
| Gain (Loss) Recognized in AOCL, net of tax |  | Loss Reclassified from AOCL into Expense |
| Three Months Ended September 30, |  | Three Months Ended September 30, |
| 2021 |  | 2020 |  | 2021 |  | 2020 |
Interest rate swaps | $ | 66 |  |  | $ | (136) |  |  | $ | (285) |  |  | $ | (293) |  |
| Nine Months Ended September 30, |  | Nine Months Ended September 30, |
| 2021 |  | 2020 |  | 2021 |  | 2020 |
Interest rate swaps | $ | 718 |  |  | $ | (1,796) |  |  | $ | (850) |  |  | $ | (676) |  |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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- References No definition available. + Details
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