FUNDS HELD FOR CUSTOMERS

9 Months Ended

12 Months Ended

Mar. 31, 2020

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

NOTE 5—FUNDS HELD FOR CUSTOMERS

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


	June 30, 2019			March 31, 2020
Restricted cash and other receivables	$	470,971		$	346,327
Restricted cash equivalents		424,219			442,300
Corporate bonds		302,070			469,071
Certificates of deposit		105,377			78,714
U.S. treasury securities		30,960			19,419

Total funds held for customers		1,333,597			1,355,831
Less—income earned by the Company included in other current assets		(4,291	)		(2,279	)

Total funds held for customers, net of income earned by the Company	$	1,329,306		$	1,353,552

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):


	June 30, 2019
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Corporate bonds	$	301,755	$	327	$	(12	)	$	302,070
Certificates of deposit		105,297		81		(1	)		105,377
U.S. treasury securities		30,927		33		—			30,960

Total	$	437,979	$	441	$	(13	)	$	438,407


	March 31, 2020
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Corporate bonds	$	469,504	$	505	$	(938	)	$	469,071
Certificates of deposit		78,753		97		(136	)		78,714
U.S. treasury securities		19,238		181		—			19,419

Total	$	567,495	$	783	$	(1,074	)	$	567,204

The amortized cost and fair value amounts include accrued interest receivable of $1.9 million and $2.4 million as of June 30, 2019 and March 31, 2020, respectively.

As of June 30, 2019, 100% of our funds held for customers that were invested in short-term marketable debt securities mature within one year. As of March 31, 2020, approximately 99% and 1% of our funds held for customers that were invested in short-term marketable debt securities mature within one year and after one year through two years, respectively.

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):


	June 30, 2019
	Fair value		Unrealized losses
Corporate bonds	$	46,065	$	(12	)
Certificates of deposit		12,027		(1	)

Total	$	58,092	$	(13	)


	March 31, 2020
	Fair value		Unrealized losses
Corporate bonds	$	235,152	$	(938	)
Certificates of deposit		33,966		(136	)

Total	$	269,118	$	(1,074	)

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 or nine months ended March 31, 2019 and 2020.

NOTE 4—FUNDS HELD FOR CUSTOMERS

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


	June 30,
	2018			2019
Restricted cash and other receivables	$	261,555		$	470,971
Restricted cash equivalents		303,650			424,219
Corporate bonds		166,570			302,070
Certificates of deposit		185,360			105,377
U.S. Treasury securities		-			30,960

Total funds held for customers		917,135			1,333,597
Less—income earned by the Company included in other current assets		(2,122	)		(4,291	)

Total funds held for customers, net of income earned by the Company	$	915,013		$	1,329,306

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


	June 30, 2018
	Amortized cost basis		Gross unrealized gains		Gross unrealized losses			Fair value
Corporate bonds	$	166,641	$	11	$	(82	)	$	166,570
Certificates of deposit		185,418		19		(77	)		185,360

Total	$	352,059	$	30	$	(159	)	$	351,930


	June 30, 2019
	Amortized cost basis		Gross unrealized gains		Gross unrealized losses			Fair value
Corporate bonds	$	301,755	$	327	$	(12	)	$	302,070
Certificates of deposit		105,297		81		(1	)		105,377
U.S. Treasury securities		30,927		33		-			30,960

Total	$	437,979	$	441	$	(13	)	$	438,407

The amortized cost and estimated fair value amounts include accrued interest receivable of $1.0 million and $1.9 million at June 30, 2018 and 2019, respectively.

The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of June 30, 2018 and 2019 (in thousands):


	June 30, 2018
	Fair value		Unrealized Losses
Corporate bonds	$	67,013	$	(82	)
Certificates of deposit		80,515		(77	)

Total	$	147,528	$	(159	)


	June 30, 2019
	Fair value		Unrealized Losses
Corporate bonds	$	46,065	$	(12	)
Certificates of deposit		12,027		(1	)

Total	$	58,092	$	(13	)

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 the short-term investments for the periods presented.