Corporate Investments and Funds Held for Clients

3 Months Ended

Sep. 30, 2021

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, 2021
			Gross		Gross
	Amortized		unrealized		unrealized
Type of Issue	cost		gains		losses		Fair value
Cash and cash equivalents	$	202,287	$	—	$	—	$	202,287
Funds held for clients' cash and cash equivalents		1,743,594		—		—		1,743,594
Available-for-sale securities:
Corporate bonds		13,390		70		—		13,460
Asset-backed securities		7,062		17		—		7,079
Total available-for-sale securities (1)		20,452		87		—		20,539
Total investments	$	1,966,333	$	87	$	—	$	1,966,420

(1) Included within the fair value of total available-for-sale securities above is $4,456 of corporate investments and $16,083 of funds held for clients.

	September 30, 2021
			Gross		Gross
	Amortized		unrealized		unrealized
Type of Issue	cost		gains		losses		Fair value
Cash and cash equivalents	$	66,431	$	—	$	—	$	66,431
Funds held for clients' cash and cash equivalents		3,042,121		—		—		3,042,121
Available-for-sale securities:
Commercial paper		70,166		5		(1)		70,170
Corporate bonds		44,305		24		(26)		44,303
Asset-backed securities		7,836		5		(1)		7,840
Certificates of deposit		15,376		2		—		15,378
U.S government agency securities		7,000		—		(18)		6,982
Other		1,880		—		(3)		1,877
Total available-for-sale securities (2)		146,563		36		(49)		146,550
Total investments	$	3,255,115	$	36	$	(49)	$	3,255,102

(2) Included within the fair value of total available-for-sale securities above is $3,151 of corporate investments and $143,399 of funds held for clients.

Cash and cash equivalents and funds held for clients’ cash and cash equivalents include demand deposit accounts, money market funds and commercial paper at June 30, 2021 and September 30, 2021.

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

	June 30,		September 30,
	2021		2021
Cash and cash equivalents	$	202,287	$	66,431
Corporate investments		4,456		3,151
Funds held for clients		1,759,677		3,185,520
Total investments	$	1,966,420	$	3,255,102

Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of September 30, 2021 had fair market value as follows:

	September 30, 2021
	Securities in an unrealized loss
	position for less than 12 months
	Gross
	unrealized		Fair
	losses		Value
Commercial paper	$	(1)	$	20,239
Corporate bonds		(26)		27,743
Asset-backed securities		(1)		3,009
U.S. government agency securities		(18)		6,982
Other		(3)		1,877
Total available-for-sale securities	$	(49)	$	59,850

There were no available-for-sale securities in an unrealized loss position at June 30, 2021. As a result, no securities have been in an unrealized loss position for more than 12 months as of September 30, 2021.

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 months ended September 30, 2020 or 2021. All securities in the Company’s portfolio held an A-1 rating or better as of September 30, 2021.

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 months ended

September 30, 2020 or 2021. There were no realized gains or losses on the sale of available-for-sale securities for the three months ended September 30, 2020 and 2021.

Expected maturities of available-for-sale securities at September 30, 2021 are as follows:

	Amortized		Fair
	cost		value
One year or less	$	102,679	$	102,708
One year to two years		25,865		25,855
Two years to three years		9,958		9,941
Three years to five years		8,061		8,046
Total available-for-sale securities	$	146,563	$	146,550