Other Non-Current Assets

9 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Non-Current Assets

OTHER NON-CURRENT ASSETS

Other non-current assets consisted of the following:

	March 31, 2022		June 30, 2021
	(in millions)
ROU assets (a)	$	243.0	$	262.0
Long-term investments	208.2		194.0
Deferred sales commissions costs	106.5		108.6
Contract assets (b)	122.1		89.8
Long-term broker fees	39.5		48.7
Deferred data center costs (c)	20.2		24.3
Other	78.8		35.0
Total	$	818.4	$	762.5

_________

(a) ROU assets represent the Company’s right to use an underlying asset for the lease term.

(b) Contract assets result from revenue already recognized but not yet invoiced, including certain future amounts to be collected under software term licenses and certain other client contracts.

(c) Represents deferred data center costs associated with the Company’s information technology services agreements, please refer to Note 14, “Contractual Commitments, Contingencies and Off-Balance Sheet Arrangements” for a further discussion.

Deferred Client Conversion and Start-Up Costs are direct costs incurred to set up or convert a client’s systems to function with the Company’s technology, and are generally deferred and recognized on a straight-line basis over the service term of the arrangement to which the costs relate, which commences when the client goes live with the Company’s services. The key judgment for determining the amount of costs to be deferred relates to the extent to which such costs are recoverable. This estimate includes (i) projected future client revenues, including variable revenues, offset by an estimate of conversion costs including an estimate of onboarding costs as well as ongoing operational costs, and (ii) an estimate of the expected client life. This is also the basis for which the Company assesses such costs for impairment.

The two main categories of assets comprising Deferred client conversion and start-up costs of $1,122.3 million as of March 31, 2022 consisted of costs incurred to set-up or convert a client’s systems to function with the Company’s technology of $1,113.6 million, as well as other start-up costs of $8.7 million. Deferred client conversion and start-up costs of $773.7 million as of June 30, 2021 consisted of costs incurred to set-up or convert a client’s systems to function with the Company’s technology of $761.7 million, as well as other start-up costs of $12.0 million.

The total amount of deferred client conversion and start-up costs and deferred sales commission costs amortized in Operating expenses during the three months ended March 31, 2022 and 2021, were $23.8 million and $20.4 million, respectively.

The total amount of deferred client conversion and start-up costs and deferred sales commission costs amortized in Operating expenses during the nine months ended March 31, 2022 and 2021, were $74.5 million and $60.2 million, respectively.