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Corporate Investments And Funds Held For Clients
 3 Months Ended
Sep. 30, 2012
Corporate Investments And Funds Held For Clients [Abstract]  
Corporate Investments And Funds Held For Clients
Note 7.  Corporate Investments and Funds Held for Clients

Corporate investments and funds held for 2clients at September 30, 2012 and June 30, 2012 were as follows:
 
 
September 30, 2012
 
Amortized
Cost
 
Gross
Unrealized
 Gains
 
Gross
Unrealized
Losses
 
 Fair Value
Type of issue:
 
 
 
 
 
 
 
Money market securities and other cash equivalents
$
3,725.9

 
$
—

 
$
—

 
$
3,725.9

Available-for-sale securities:
 

 
 

 
 

 
 

U.S. Treasury and direct obligations of
U.S. government agencies
6,379.1

 
273.8

 
—

 
6,652.9

Corporate bonds
7,239.2

 
337.5

 
(0.3
)
 
7,576.4

Canadian provincial bonds
653.2

 
40.3

 
—

 
693.5

Asset-backed securities
601.0

 
15.9

 
(0.1
)
 
616.8

Municipal bonds
522.2

 
33.2

 
—

 
555.4

Canadian government obligations and
Canadian government agency obligations
1,042.3

 
21.7

 
(0.6
)
 
1,063.4

Other securities
1,174.0

 
84.8

 
(0.2
)
 
1,258.6

 
 
 
 
 
 
 
 
Total available-for-sale securities
17,611.0

 
807.2

 
(1.2
)
 
18,417.0

 
 
 
 
 
 
 
 
Total corporate investments and funds
held for clients
$
21,336.9

 
$
807.2

 
$
(1.2
)
 
$
22,142.9

 
 
 
June 30, 2012
 
Amortized 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Type of issue:
 

 
 

 
 

 
 

Money market securities and other cash equivalents
$
5,111.1

 
$
—

 
$
—

 
$
5,111.1

Available-for-sale securities:
 

 
 

 
 

 
 

U.S. Treasury and direct obligations of
U.S. government agencies
6,413.8

 
260.9

 
(0.1
)
 
6,674.6

Corporate bonds
7,097.2

 
272.3

 
(1.5
)
 
7,368.0

Canadian provincial bonds
620.8

 
35.4

 
(0.3
)
 
655.9

Asset-backed securities
533.9

 
14.5

 
—

 
548.4

Municipal bonds
522.0

 
31.0

 
(0.1
)
 
552.9

Canadian government obligations and
Canadian government agency obligations
994.2

 
23.4

 
(0.6
)
 
1,017.0

Other securities
1,201.0

 
75.7

 
(0.1
)
 
1,276.6

 
 
 
 
 
 
 
 
Total available-for-sale securities
17,382.9

 
713.2

 
(2.7
)
 
18,093.4

 
 
 
 
 
 
 
 
Total corporate investments and funds
held for clients
$
22,494.0

 
$
713.2

 
$
(2.7
)
 
$
23,204.5



At September 30, 2012, U.S. Treasury and direct obligations of U.S. government agencies primarily include debt directly issued by Federal Home Loan Banks, Federal Farm Credit Banks, Federal National Mortgage Association ("Fannie Mae"), and Federal Home Loan Mortgage Corporation ("Freddie Mac") with fair values of $4,100.2 million, $1,324.2 million, $393.3 million, and $281.2 million, respectively.  At June 30, 2012, U.S. Treasury and direct obligations of U. S. government agencies primarily include debt directly issued by Federal Home Loan Banks, Federal Farm Credit Banks, Fannie Mae, and Freddie Mac with fair values of $4,189.1 million, $1,134.1 million, $428.6 million, and $384.6 million, respectively.  U.S. Treasury and direct obligations of U.S. government agencies represent senior, unsecured, non-callable debt that primarily carries a credit rating of AAA, as rated by Moody's and AA+, as rated by Standard & Poor's and has maturities ranging from October 2012 through August 2022. Corporate bonds include investment-grade debt securities, which include a wide variety of issuers, industries, and sectors, primarily carry credit ratings of A and above, and have maturities ranging from October 2012 to August 2022.

At September 30, 2012, asset-backed securities include AAA rated senior tranches of securities with predominately prime collateral of fixed rate credit card, rate reduction and auto loan receivables with fair values of $415.3 million, $116.4 million and $84.7 million, respectively.  At June 30, 2012, asset-backed securities include AAA rated senior tranches of securities with predominately prime collateral of fixed rate credit card, rate reduction and auto loan receivables with fair values of $323.0 million, $140.0 million, and $85.1 million, respectively.  These securities are collateralized by the cash flows of the underlying pools of receivables.  The primary risk associated with these securities is the collection risk of the underlying receivables.  All collateral on such asset-backed securities has performed as expected through September 30, 2012.

At September 30, 2012, other securities and their fair value primarily represent AAA rated supranational bonds of $440.9 million, AA and AAA rated sovereign bonds of $412.4 million, AAA rated commercial mortgage-backed securities of $251.0 million, and AA rated mortgage-backed securities of $126.8 million that are guaranteed by Fannie Mae and Freddie Mac. At June 30, 2012, other securities and their fair value primarily represent AAA rated supranational bonds of $427.7 million, AA and AAA rated sovereign bonds of $405.0 million, AAA rated commercial mortgage-backed securities of $282.3 million, and AA rated mortgage-backed securities of $135.3 million that are guaranteed by Fannie Mae and Freddie Mac. The Company's mortgage-backed securities represent an undivided beneficial ownership interest in a group or pool of one or more residential mortgages. These securities are collateralized by the cash flows of 15-year and 30-year residential mortgages and are guaranteed by Fannie Mae and Freddie Mac as to the timely payment of principal and interest.


Classification of corporate investments on the Consolidated Balance Sheets is as follows:
 
September 30,
 
June 30,
 
2012
 
2012
Corporate investments:
 
 
 
Cash and cash equivalents
$
1,117.4

 
$
1,548.1

Short-term marketable securities
35.7

 
30.4

Long-term marketable securities
522.4

 
86.9

Total corporate investments
$
1,675.5

 
$
1,665.4


 
Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets.

Funds held for clients have been invested in the following categories:
 
September 30,
 
June 30,
 
2012
 
2012
Funds held for clients:
 
 
 
Restricted cash and cash equivalents held to satisfy client funds obligations
$
2,608.5

 
$
3,563.0

Restricted short-term marketable securities held to satisfy client funds obligations
2,888.5

 
2,954.1

Restricted long-term marketable securities held to satisfy client funds obligations
14,970.4

 
15,022.0

Total funds held for clients
$
20,467.4

 
$
21,539.1



Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll and tax payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients.  The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date.  The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling $19,701.3 million and $20,856.2 million as of September 30, 2012 and June 30, 2012, respectively.  The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client funds obligations.  The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows.  The Company has reported the cash inflows and outflows related to client funds investments with original maturities of 90 days or less on a net basis within net increase in restricted cash and cash equivalents and other restricted assets held to satisfy client funds obligations in the investing section of the Statements of Consolidated Cash Flows.  The Company has reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase in client funds obligations in the financing section of the Statements of Consolidated Cash Flows.

Approximately 84% of the available-for-sale securities held a AAA or AA rating at September 30, 2012, as rated by Moody's, Standard & Poor's and, for Canadian securities, Dominion Bond Rating Service.  All available-for-sale securities were rated as investment grade at September 30, 2012.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of September 30, 2012, are as follows: 
 
Unrealized
losses
less than
12 months
 
Fair market
value less than
12 months
 
Unrealized
losses
greater than
12 months
 
Fair market
value greater
than 12 months
 
Total gross
unrealized
losses
 
Total fair
market value
U.S. Treasury and direct obligations of
U.S. government agencies
$
—

 
$
3.1

 
$
—

 
$
—

 
$
—

 
$
3.1

Corporate bonds
(0.3
)
 
45.7

 
—

 
—

 
(0.3
)
 
45.7

Canadian provincial bonds
—

 
11.2

 
—

 
—

 
—

 
11.2

Asset-backed securities
(0.1
)
 
13.1

 
—

 
—

 
(0.1
)
 
13.1

Municipal bonds
—

 
9.9

 
—

 
—

 
—

 
9.9

Canadian government agency obligations
(0.6
)
 
217.0

 
—

 
—

 
(0.6
)
 
217.0

Other securities
(0.2
)
 
15.1

 
—

 
—

 
(0.2
)
 
15.1

 
$
(1.2
)
 
$
315.1

 
$
—

 
$
—

 
$
(1.2
)
 
$
315.1


The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2012 are as follows: 
 
Unrealized
losses
less than
12 months
 
Fair market
value less than
12 months
 
Unrealized
losses
greater than
12 months
 
Fair market
value greater
than 12 months
 
Total gross
unrealized
losses
 
Total fair
market value
U.S. Treasury and direct obligations of U.S. government agencies
$
(0.1
)
 
$
43.6

 
$
—

 
$
—

 
$
(0.1
)
 
$
43.6

Corporate bonds
(1.1
)
 
234.8

 
(0.4
)
 
20.2

 
(1.5
)
 
255.0

Canadian provincial bonds
(0.3
)
 
58.5

 
—

 
—

 
(0.3
)
 
58.5

Asset-backed securities
—

 
13.6

 
—

 
—

 
—

 
13.6

Municipal bonds
(0.1
)
 
22.8

 
—

 
—

 
(0.1
)
 
22.8

Canadian government agency obligations
(0.6
)
 
209.4

 
—

 
—

 
(0.6
)
 
209.4

Other securities
(0.1
)
 
26.3

 
—

 
—

 
(0.1
)
 
26.3

 
$
(2.3
)
 
$
609.0

 
$
(0.4
)
 
$
20.2

 
$
(2.7
)
 
$
629.2


 
Expected maturities of available-for-sale securities at September 30, 2012 are as follows:
Due in one year or less
$
2,924.2

Due after one year to two years
1,660.4

Due after two years to three years
4,088.4

Due after three years to four years
3,883.1

Due after four years
5,860.9

 
 

Total available-for-sale securities
$
18,417.0