Corporate Investments and Funds Held for Clients

9 Months Ended

Mar. 31, 2023

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 consisted of the following:

	June 30, 2022
Type of Issue	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	139,756	$	—	$	—	$	139,756
Funds held for clients' cash and cash equivalents	3,653,699		—		(2)		3,653,697
Available-for-sale securities:
Commercial paper	58,166		—		(126)		58,040
Corporate bonds	59,568		—		(1,715)		57,853
Asset-backed securities	9,843		2		(141)		9,704
Certificates of deposit	31,879		—		(43)		31,836
U.S. treasury securities	167,566		12		(591)		166,987
U.S government agency securities	8,000		—		(451)		7,549
Other	2,181		—		(71)		2,110
Total available-for-sale securities	337,203		14		(3,138)		334,079
Total investments	$	4,130,658	$	14	$	(3,140)	$	4,127,532

	March 31, 2023
Type of Issue	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	233,692	$	—	$	—	$	233,692
Funds held for clients' cash and cash equivalents	2,605,158		—		—		2,605,158
Available-for-sale securities:
Commercial paper	151,851		53		(73)		151,831
Corporate bonds	118,722		575		(1,499)		117,798
Asset-backed securities	29,171		—		(270)		28,901
Certificates of deposit	84,047		17		(37)		84,027
U.S. treasury securities	200,957		635		(1,653)		199,939
U.S government agency securities	8,000		—		(496)		7,504
Other	7,328		29		(100)		7,257
Total available-for-sale securities	600,076		1,309		(4,128)		597,257
Total investments	$	3,438,926	$	1,309	$	(4,128)	$	3,436,107

All available-for-sale securities were included in Funds held for clients at June 30, 2022 and March 31, 2023.

Cash and cash equivalents and funds held for clients’ cash and cash equivalents included demand deposit accounts, money market funds, commercial paper, certificates of deposit and U.S. treasury securities at June 30, 2022 and March 31, 2023.

Classification of investments on the Unaudited Consolidated Balance Sheets was as follows:

	June 30, 2022		March 31, 2023
Cash and cash equivalents	$	139,756	$	233,692
Funds held for clients	3,987,776		3,202,415
Total investments	$	4,127,532	$	3,436,107

Available-for-sale securities that had been in an unrealized loss position for a period of less and greater than 12 months as of June 30, 2022 and March 31, 2023 had fair market value as follows:

	June 30, 2022
	Securities in an unrealized loss position for less than 12 months				Securities in an unrealized loss position for greater than 12 months				Total
	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
Commercial paper	$	(126)	$	53,756	$	—	$	—	$	(126)	$	53,756
Corporate bonds	(1,715)		57,853		—		—		(1,715)		57,853
Asset-backed securities	(141)		7,354		—		—		(141)		7,354
Certificates of deposit	(43)		27,086		—		—		(43)		27,086
U.S. treasury securities	(591)		129,943		—		—		(591)		129,943
U.S. government agency securities	(451)		7,549		—		—		(451)		7,549
Other	(71)		2,110		—		—		(71)		2,110
Total available-for-sale securities	$	(3,138)	$	285,651	$	—	$	—	$	(3,138)	$	285,651

	March 31, 2023
	Securities in an unrealized loss position for less than 12 months				Securities in an unrealized loss position for greater than 12 months				Total
	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
Commercial paper	$	(73)	$	93,799	$	—	$	—	$	(73)	$	93,799
Corporate bonds	(313)		23,406		(1,186)		34,341		(1,499)		57,747
Asset-backed securities	(161)		26,279		(109)		2,464		(270)		28,743
Certificates of deposit	(37)		57,363		—		—		(37)		57,363
U.S. treasury securities	(1,597)		112,216		(56)		3,957		(1,653)		116,173
U.S. government agency securities	(28)		973		(468)		6,531		(496)		7,504
Other	(41)		2,879		(59)		1,556		(100)		4,435
Total available-for-sale securities	$	(2,250)	$	316,915	$	(1,878)	$	48,849	$	(4,128)	$	365,764

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, 2022 or 2023. All securities in the Company’s portfolio held an A-1 rating or better as of March 31, 2023.

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, 2022 or 2023. There were no realized gains or losses on the sale of available-for-sale securities for the three or nine months ended March 31, 2022 or 2023.

Expected maturities of available-for-sale securities at March 31, 2023 were as follows:

	Amortized cost		Fair value
One year or less	$	340,316	$	339,603
One year to two years	139,047		137,505
Two years to three years	118,717		118,336
Three years to five years	1,996		1,813
Total available-for-sale securities	$	600,076	$	597,257