Corporate Investments and Funds Held for Clients

9 Months Ended

Mar. 31, 2024

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, 2023
Type of Issue	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	288,767	$	—	$	—	$	288,767
Funds held for clients' cash and cash equivalents	2,132,545		—		—		2,132,545
Available-for-sale securities:
Commercial paper	110,003		12		(138)		109,877
Corporate bonds	112,262		18		(1,867)		110,413
Asset-backed securities	30,061		10		(337)		29,734
Certificates of deposit	68,247		5		(93)		68,159
U.S. treasury securities	158,839		—		(2,839)		156,000
U.S government agency securities	8,000		—		(513)		7,487
Other	7,329		—		(129)		7,200
Total available-for-sale securities	494,741		45		(5,916)		488,870
Total investments	$	2,916,053	$	45	$	(5,916)	$	2,910,182

	March 31, 2024
Type of Issue	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	492,695	$	—	$	—	$	492,695
Funds held for clients' cash and cash equivalents	3,084,470		—		—		3,084,470
Available-for-sale securities:
Commercial paper	14,343		—		(4)		14,339
Corporate bonds	256,027		1,557		(895)		256,689
Asset-backed securities	38,300		185		(149)		38,336
Certificates of deposit	13,420		11		—		13,431
U.S. treasury securities	164,478		60		(1,232)		163,306
U.S government agency securities	8,000		—		(271)		7,729
Other	12,820		119		(41)		12,898
Total available-for-sale securities	507,388		1,932		(2,592)		506,728
Total investments	$	4,084,553	$	1,932	$	(2,592)	$	4,083,893

All available-for-sale securities were included in Funds held for clients at June 30, 2023 and March 31, 2024.

Cash and cash equivalents and funds held for clients’ cash and cash equivalents included demand deposit accounts and money market funds at June 30, 2023 and March 31, 2024.

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

	June 30, 2023		March 31, 2024
Cash and cash equivalents	$	288,767	$	492,695
Funds held for clients	2,621,415		3,591,198
Total investments	$	2,910,182	$	4,083,893

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, 2023 and March 31, 2024 had fair market value as follows:

	June 30, 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	$	(138)	$	96,665	$	—	$	—	$	(138)	$	96,665
Corporate bonds	(695)		71,089		(1,172)		32,807		(1,867)		103,896
Asset-backed securities	(233)		23,313		(104)		2,038		(337)		25,351
Certificates of deposit	(93)		52,254		—		—		(93)		52,254
U.S. treasury securities	(1,075)		95,388		(1,764)		60,612		(2,839)		156,000
U.S. government agency securities	—		—		(513)		7,487		(513)		7,487
Other	(71)		5,326		(58)		1,874		(129)		7,200
Total available-for-sale securities	$	(2,305)	$	344,035	$	(3,611)	$	104,818	$	(5,916)	$	448,853

	March 31, 2024
	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	$	(4)	$	14,339	$	—	$	—	$	(4)	$	14,339
Corporate bonds	(339)		77,014		(556)		25,194		(895)		102,208
Asset-backed securities	(2)		3,877		(147)		8,102		(149)		11,979
U.S. treasury securities	(506)		88,119		(726)		68,205		(1,232)		156,324
U.S. government agency securities	—		—		(271)		7,729		(271)		7,729
Other	(9)		2,785		(32)		3,614		(41)		6,399
Total available-for-sale securities	$	(860)	$	186,134	$	(1,732)	$	112,844	$	(2,592)	$	298,978

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, 2023 or 2024. All securities in the Company’s portfolio held an A-1 rating or better as of March 31, 2024.

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, 2023 or 2024. There were no realized gains or losses on the sale of available-for-sale securities for the three or nine months ended March 31, 2023 or 2024.

Expected maturities of available-for-sale securities at March 31, 2024 were as follows:

	Amortized cost		Fair value
One year or less	$	195,435	$	194,520
One year to two years	130,594		129,364
Two years to three years	57,927		58,282
Three years to five years	123,432		124,562
Total available-for-sale securities	$	507,388	$	506,728