Corporate Investments and Funds Held for Clients

6 Months Ended

Dec. 31, 2020

Corporate Investments and Funds Held for Clients

Corporate Investments and Funds Held for Clients

(6) Corporate Investments and Funds Held for Clients

Corporate investments and funds held for clients consist of the following:

	June 30, 2020
			Gross		Gross
	Amortized		unrealized		unrealized
Type of Issue	cost		gains		losses		Fair value
Cash and cash equivalents	$	250,851	$	—	$	—	$	250,851
Funds held for clients' cash and cash equivalents		1,241,282		—		—		1,241,282
Available-for-sale securities:
Commercial paper		6,643		6		—		6,649
Corporate bonds		44,343		414		—		44,757
Asset-backed securities		49,978		424		—		50,402
U.S. treasury securities		21,302		67		—		21,369
Total available-for-sale securities (1)		122,266		911		—		123,177
Total investments	$	1,614,399	$	911	$	—	$	1,615,310

(1) Included within the fair value of total available-for-sale securities above is $37,155 of corporate investments and $86,022 of funds held for clients.

	December 31, 2020
			Gross		Gross
	Amortized		unrealized		unrealized
Type of Issue	cost		gains		losses		Fair value
Cash and cash equivalents	$	218,696	$	—	$	—	$	218,696
Funds held for clients' cash and cash equivalents		2,154,552		—		—		2,154,552
Available-for-sale securities:
Corporate bonds		33,157		188		—		33,345
Asset-backed securities		29,858		168		—		30,026
Total available-for-sale securities (2)		63,015		356		—		63,371
Total investments	$	2,436,263	$	356	$	—	$	2,436,619

(2) Included within the fair value of total available-for-sale securities above is $13,637 of corporate investments and $49,734 of funds held for clients.

Cash and cash equivalents and funds held for clients’ cash and cash equivalents include demand deposit accounts and money market funds at June 30, 2020 and December 31, 2020. All of the Company’s available-for-sale securities had expected maturities of one year or less at December 31, 2020.

Classification of investments on the unaudited consolidated balance sheets is as follows:

	June 30,		December 31,
	2020		2020
Cash and cash equivalents	$	250,851	$	218,696
Corporate investments		34,556		13,637
Funds held for clients		1,327,304		2,204,286
Long-term prepaid expenses and other		2,599		—
Total investments	$	1,615,310	$	2,436,619

There were no available-for-sale securities in an unrealized loss position at June 30, 2020 or December 31, 2020. 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 six months ended December 31, 2020. All securities in the Company’s portfolio held an A-1 rating or better as of December 31, 2020.

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 six months ended December 31, 2019 or 2020. Gross realized gains and losses on the sale of available-for-sale securities were immaterial for both three and six months ended December 31, 2019 and 2020.