Other Non-Current Assets

3 Months Ended

Sep. 30, 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:

	September 30, 2022		June 30, 2022
	(in millions)
Long-term investments	$	222.5	$	221.6
ROU assets (a)	214.7		222.8
Contract assets (b)	111.8		118.5
Deferred sales commissions costs	110.6		114.2
Long-term broker fees	41.9		45.1
Deferred data center costs (c)	18.0		19.0
Other (d)	207.0		154.1
Total	$	926.5	$	895.3

_________

(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.

(d) Includes $156.3 million and $101.4 million derivative assets at September 30, 2022 and June 30, 2022, respectively, related to the Company’s cross-currency swap derivative contracts. 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 $1,359.8 million as of September 30, 2022 consisted of costs incurred to set-up or convert a client’s systems to function with the Company’s technology of $1,346.6 million, as well as other start-up costs of $13.2 million. Deferred client conversion and start-up costs of $1,232.3 million as of June 30, 2022 consisted of costs incurred to set-up or convert a client’s systems to function with the Company’s technology of $1,224.7 million, as well as other start-up costs of $7.7 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 September 30, 2022 and 2021, were $23.8 million and $23.3 million, respectively.