Funds Held for Customers

3 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Funds Held for Customers

NOTE 6 – FUNDS HELD FOR CUSTOMERS

Funds held for customers consisted of the following as of the dates presented (in thousands):

	September 30,			June 30,
	2021			2021
Restricted cash and other receivables	$	1,357,620		$	1,208,598
Restricted cash equivalents		57,964			86,322
Corporate bonds		575,327			516,350
Certificates of deposit		385,097			326,927
Municipal bonds		14,726			42,957
Asset backed securities		35,712			25,085
U.S. treasury securities		6,113			3,009
Total funds held for customers		2,432,559			2,209,248
Less - income earned by the Company    included in other current assets		(38	)		(650	)
Total funds held for customers, net    of income earned by the Company	$	2,432,521		$	2,208,598

Income earned by the Company that is included in other current assets represents interest income, accretion of discount (offset by amortization of premium), and net unrealized gains on customer funds that were invested in money market funds and short-term marketable debt securities. Earnings from these investments are contractually earned by the Company and are expected to be transferred into the Company’s corporate deposit account upon sale or settlement of the associated investment.

Below is a summary of the fair value of funds held for customers that were invested in short-term marketable debt securities as of the dates presented (in thousands):

	September 30, 2021
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Corporate bonds	$	575,354	$	23	$	(50	)	$	575,327
Certificates of deposit		385,097		—		—			385,097
Municipal bonds		14,724		2		—			14,726
Asset backed securities		35,709		5		(2	)		35,712
U.S. treasury securities		6,113		—		—			6,113
Total	$	1,016,997	$	30	$	(52	)	$	1,016,975

	June 30, 2021
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Corporate bonds	$	516,364	$	24	$	(38	)	$	516,350
Certificates of deposit		326,927		—		—			326,927
Municipal bonds		42,952		5		—			42,957
Asset backed securities		25,081		4		—			25,085
U.S. treasury securities		3,010		—		(1	)		3,009
Total	$	914,334	$	33	$	(39	)	$	914,328

The amortized cost and fair value amounts include accrued interest receivable of $1.4 million and $1.9 million and as of September 30, 2021 and June 30, 2021, respectively.

As of September 30, 2021, approximately 96%, or $980.8 million, of the total funds held for customers invested in marketable debt securities mature within one year and approximately 4% or $36.2 million mature thereafter. As of June 30, 2021, approximately 97%, or $882.4 million, of the total funds held for customers invested in marketable debt securities mature within one year and approximately 3% or $31.9 million mature thereafter.

As of September 30, 2021, approximately 90 of the more than 300 investment positions were in an unrealized loss position. The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands):

	September 30, 2021
	Fair value		Unrealized losses
Corporate bonds	$	113,924	$	(50	)
Asset backed securities		15,335		(2	)
Total	$	129,259	$	(52	)

	June 30, 2021
	Fair value		Unrealized losses
Corporate bonds	$	79,359	$	(38	)
U.S. treasury securities		2,501		(1	)
Total	$	81,860	$	(39	)

Investments with unrealized losses have been in a continuous unrealized loss position for less than 12 months. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. Therefore, the Company does not consider those unrealized investment losses as other-than-temporary impairment of the investments. There have been no significant realized gains or losses on funds held for customers that were invested in short-term marketable debt securities during the three ended September 30, 2021 and 2020.