Funds Held for Customers

6 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

Funds Held for Customers

NOTE 5 – FUNDS HELD FOR CUSTOMERS

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

	December 31,			June 30,
	2019			2019
Restricted cash and other receivables	$	588,979		$	470,971
Restricted cash equivalents		477,614			424,219
Corporate bonds		303,773			302,070
Certificates of deposit		106,011			105,377
U.S. treasury securities		19,191			30,960
Total funds held for customers		1,495,568			1,333,597
Less - income earned by the Company    included in other current assets		(3,805	)		(4,291	)
Total funds held for customers, net    of income earned by the Company	$	1,491,763		$	1,329,306

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):

	December 31, 2019
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Corporate bonds	$	303,652	$	148	$	(27	)	$	303,773
Certificates of deposit		105,977		36		(2	)		106,011
U.S. treasury securities		19,185		7		(1	)		19,191
Total	$	428,814	$	191	$	(30	)	$	428,975

	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

The amortized cost and fair value amounts include accrued interest receivable of $2.3 million and $1.9 million and as of December 31, 2019 and June 30, 2019, 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):

	December 31, 2019
	Fair value		Unrealized losses
Corporate bonds	$	94,472	$	(27	)
Certificates of deposit		13,025		(2	)
U.S. treasury securities		15,185		(1	)
Total	$	122,682	$	(30	)

	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 funds held for customers that were invested in short-term marketable debt securities during the three or six months ended December 31, 2019 and 2018.