XML 22 R11.htm IDEA: XBRL DOCUMENT v3.22.4
Funds Held for Customers
 6 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Funds Held for Customers FUNDS HELD FOR CUSTOMERS
Funds held for customers consisted of the following as of the dates presented (in thousands):
December 31,
2022		June 30,
2022
Restricted cash$1,914,579 $1,685,937 
Restricted cash equivalents266,743 168,260 
Funds receivable9,470 6,747 
Corporate bonds734,878 807,685 
Certificates of deposit426,189 397,533 
Municipal bonds635 6,516 
Asset backed securities81,680 69,912 
U.S. treasury securities53,221 3,072 
Total funds held for customers3,487,395 3,145,662 
Less - income earned by the Company included in other current assets
(13,347)(3,002)
Total funds held for customers, net of income earned by the Company$3,474,048 $3,142,660 
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, 2022
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Corporate bonds$735,248 $35 $(405)$734,878 
Certificates of deposit426,230 — (41)426,189 
Municipal bonds638 — (3)635 
Asset backed securities82,258 32 (610)81,680 
U.S. treasury securities53,351 2 (132)53,221 
Total$1,297,725 $69 $(1,191)$1,296,603 
June 30, 2022
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Corporate bonds$809,113 $1 $(1,429)$807,685 
Certificates of deposit397,533 — — 397,533 
Municipal bonds6,542 — (26)6,516 
Asset backed securities70,574 — (662)69,912 
U.S. treasury securities3,082 — (10)3,072 
Total$1,286,844 $1 $(2,127)$1,284,718 
The amortized cost and fair value amounts include accrued interest receivable of $5.6 million and $3.0 million and as of December 31, 2022 and June 30, 2022, respectively.
As of December 31, 2022, approximately 94%, or $1.2 billion, of the total funds held for customers invested in marketable debt securities mature within one year and approximately 6% or $81.7 million mature thereafter. As of June 30, 2022, approximately 95%, or $1.2 billion, of the total funds held for customers invested in marketable debt securities mature within one year and approximately 5% or $69.9 million mature thereafter.
As of December 31, 2022, approximately 120 out of approximately 390 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):
December 31, 2022
Fair valueUnrealized
losses
Corporate bonds$171,981 $(405)
Certificates of deposit7,848 (41)
Municipal bonds635 (3)
Asset backed securities62,569 (610)
U.S. treasury securities43,601 (132)
Total$286,634 $(1,191)
June 30, 2022
Fair valueUnrealized
losses
Corporate bonds$301,625 $(1,429)
Municipal bonds6,516 (26)
Asset backed securities64,361 (662)
U.S. treasury securities3,072 (10)
Total$375,574 $(2,127)
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 will 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 and six months ended December 31, 2022 and 2021.