10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________

FORM 10-Q

______________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended December 31, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From to    

Commission File Number 1-5397

__________________________

AUTOMATIC DATA PROCESSING, INC.

(Exact name of registrant as specified in its charter)

__________________________

Delaware		22-1467904
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
One ADP Boulevard
Roseland,	NJ	07068
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (973) 974-5000

__________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.10 Par Value (voting)	ADP	NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ý   No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ý   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock as of January 27, 2021 was 427,940,220.

Table of Contents

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Statements of Consolidated Earnings Three and six months ended December 31, 2020 and 2019	3
	Statements of Consolidated Comprehensive Income Three and six months ended December 31, 2020 and 2019	4
	Consolidated Balance Sheets At December 31, 2020 and June 30, 2020	5
	Statements of Consolidated Cash Flows Six months ended December 31, 2020 and 2019	6
	Notes to the Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 6.	Exhibits	43
	Signatures	44

2

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

Automatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Earnings

(In millions, except per share amounts)

(Unaudited)

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
REVENUES:
Revenues, other than interest on funds held for clients and PEO revenues	$	2,405.2	$	2,398.4	$	4,674.9	$	4,704.7
Interest on funds held for clients	105.4		137.7		211.9		271.5
PEO revenues (A)	1,185.1		1,133.4		2,279.7		2,189.0
TOTAL REVENUES	3,695.7		3,669.5		7,166.5		7,165.2
EXPENSES:
Costs of revenues:
Operating expenses	1,847.8		1,836.0		3,610.0		3,623.6
Systems development and programming costs	174.5		168.7		343.2		336.9
Depreciation and amortization	100.1		89.4		203.6		178.3
TOTAL COSTS OF REVENUES	2,122.4		2,094.1		4,156.8		4,138.8
Selling, general, and administrative expenses	755.8		754.3		1,436.9		1,480.9
Interest expense	13.9		31.6		29.0		71.5
TOTAL EXPENSES	2,892.1		2,880.0		5,622.7		5,691.2
Other (income)/expense, net	(29.0)		(46.0)		(54.0)		(100.6)
EARNINGS BEFORE INCOME TAXES	832.6		835.5		1,597.8		1,574.6
Provision for income taxes	185.1		183.9		348.2		340.6
NET EARNINGS	$	647.5	$	651.6	$	1,249.6	$	1,234.0
BASIC EARNINGS PER SHARE	$	1.51	$	1.51	$	2.92	$	2.86
DILUTED EARNINGS PER SHARE	$	1.51	$	1.50	$	2.91	$	2.84
Basic weighted average shares outstanding	427.4		431.5		428.0		432.1
Diluted weighted average shares outstanding	429.0		433.3		429.5		434.3

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $13,349.1 million and $12,371.6 million for the three months ended December 31, 2020 and 2019, respectively, and $24,364.9 million and $22,882.2 million for the six months ended December 31, 2020 and 2019, respectively.

See notes to the Consolidated Financial Statements.

3

Automatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Comprehensive Income

(In millions)

(Unaudited)

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Net earnings	$	647.5	$	651.6	$	1,249.6	$	1,234.0
Other comprehensive income/(loss):
Currency translation adjustments	61.9		34.3		112.3		(14.6)
Unrealized net (losses)/gains on available-for-sale securities	(44.1)		(35.5)		(68.7)		60.6
Tax effect	10.0		7.5		15.5		(13.3)
Reclassification of net (gains)/losses on available-for-sale securities to net earnings	(7.7)		(7.1)		(8.0)		(9.4)
Tax effect	1.7		1.6		1.8		2.1
Unrealized (losses)/gains on cash flow hedging activities	—		0.7		(3.3)		0.7
Tax effect	—		(0.2)		0.8		(0.2)
Amortization of unrealized losses on cash flow hedging activities	1.1		—		1.7		—
Tax effect	(0.4)		—		(0.4)		—
Reclassification of pension liability adjustment to net earnings	2.5		1.9		5.0		0.2
Tax effect	(0.6)		(0.5)		(1.6)		—
Other comprehensive income, net of tax	24.4		2.7		55.1		26.1
Comprehensive income	$	671.9	$	654.3	$	1,304.7	$	1,260.1

See notes to the Consolidated Financial Statements.

4

Automatic Data Processing, Inc. and Subsidiaries

Consolidated Balance Sheets

(In millions, except per share amounts)

(Unaudited)

	December 31,		June 30,
	2020		2020
Assets
Current assets:
Cash and cash equivalents	$	1,602.2	$	1,908.5
Accounts receivable, net of allowance for doubtful accounts of $86.3 and $92.5, respectively	2,509.8		2,441.3
Other current assets	684.1		506.2
Total current assets before funds held for clients	4,796.1		4,856.0
Funds held for clients	36,866.2		26,708.1
Total current assets	41,662.3		31,564.1
Long-term receivables, net of allowance for doubtful accounts of $0.6 and $0.5, respectively	15.3		18.6
Property, plant and equipment, net	692.7		703.9
Operating lease right-of-use asset	501.1		493.7
Deferred contract costs	2,417.2		2,401.6
Other assets	483.5		458.4
Goodwill	2,346.6		2,309.4
Intangible assets, net	1,207.2		1,215.8
Total assets	$	49,325.9	$	39,165.5
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	113.9	$	102.0
Accrued expenses and other current liabilities	1,778.1		1,980.7
Accrued payroll and payroll-related expenses	587.4		557.0
Dividends payable	394.4		387.3
Short-term deferred revenues	207.7		212.5
Obligations under reverse repurchase agreements (A)	—		13.6
Short-term debt	—		1,001.8
Income taxes payable	28.9		40.1
Total current liabilities before client funds obligations	3,110.4		4,295.0
Client funds obligations	36,066.1		25,831.6
Total current liabilities	39,176.5		30,126.6
Long-term debt	1,994.1		1,002.8
Operating lease liabilities	357.4		344.4
Other liabilities	812.5		837.0
Deferred income taxes	711.5		731.9
Long-term deferred revenues	373.9		370.6
Total liabilities	43,425.9		33,413.3
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, $1.00 par value: authorized, 0.3 shares; issued, none	—		—
Common stock, $0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at December 31, 2020 and June 30, 2020;  outstanding, 428.1 and 429.9 shares at December 31, 2020 and June 30, 2020, respectively	63.9		63.9
Capital in excess of par value	1,407.6		1,333.8
Retained earnings	18,893.6		18,436.3
Treasury stock - at cost: 210.6 and 208.9 shares at December 31, 2020 and June 30, 2020, respectively	(14,505.4)		(14,067.0)
Accumulated other comprehensive income (loss)	40.3		(14.8)
Total stockholders’ equity	5,900.0		5,752.2
Total liabilities and stockholders’ equity	$	49,325.9	$	39,165.5

(A) As of June 30, 2020, $13.6 million of long-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements (see Note 9).

See notes to the Consolidated Financial Statements.

5

Automatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Cash Flows

(In millions)

(Unaudited)

	Six Months Ended
	December 31,
	2020		2019
Cash Flows from Operating Activities:
Net earnings	$	1,249.6	$	1,234.0
Adjustments to reconcile net earnings to cash flows provided by operating activities:
Depreciation and amortization	257.8		234.9
Amortization of deferred contract costs	464.9		456.0
Deferred income taxes	1.3		44.1
Stock-based compensation expense	80.9		73.3
Net pension income	(22.0)		(0.4)
Net amortization of premiums and accretion of discounts on available-for-sale securities	28.7		26.3
Impairment of assets	5.0		—
Gain on sale of assets	(1.8)		(2.1)
Other	2.4		6.5
Changes in operating assets and liabilities:
Increase in accounts receivable	(86.5)		(198.8)
Increase in other assets	(643.3)		(605.4)
Increase in accounts payable	10.2		12.3
Decrease in accrued expenses and other liabilities	(158.9)		(149.8)
Net cash flows provided by operating activities	1,188.3		1,130.9
Cash Flows from Investing Activities:
Purchases of corporate and client funds marketable securities	(3,554.8)		(2,875.3)
Proceeds from the sales and maturities of corporate and client funds marketable securities	2,832.5		2,995.2
Capital expenditures	(81.0)		(100.7)
Additions to intangibles	(148.1)		(167.7)
Proceeds from sale of property, plant, and equipment and other assets	1.8		23.6
Net cash flows used in investing activities	(949.6)		(124.9)
Cash Flows from Financing Activities:
Net increase in client funds obligations	10,036.4		7,093.7
Payments of debt	(1,001.1)		(1.1)
Proceeds from the issuance of debt	991.1		—
Settlement of cash flow hedges	(43.6)		—
Repurchases of common stock	(475.1)		(615.1)
Net proceeds from stock purchase plan and stock-based compensation plans	39.1		(4.4)
Dividends paid	(781.7)		(686.0)
Net payments related to reverse repurchase agreements	(13.6)		(262.0)
Net cash flows provided by financing activities	8,751.5		5,525.1
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents	84.7		(12.2)
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents	9,074.9		6,518.9
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	7,053.6		6,796.2
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	$	16,128.5	$	13,315.1
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	$	1,602.2	$	1,500.4
Restricted cash and restricted cash equivalents included in funds held for clients (A)	14,526.3		11,814.7
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$	16,128.5	$	13,315.1
Supplemental disclosures of cash flow information:
Cash paid for interest	$	28.1	$	70.6
Cash paid for income taxes, net of income tax refunds	$	362.7	$	350.4

(A) See Note 6 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets.

See notes to the Consolidated Financial Statements.

6

Automatic Data Processing, Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

(Tabular dollars in millions, except per share amounts or where otherwise stated)

(Unaudited)

Note 1.  Basis of Presentation

The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).  The Consolidated Financial Statements and footnotes thereto are unaudited.  In the opinion of the Company’s management, the Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, that are necessary for a fair presentation of the Company’s interim financial results.

The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees.  The Company is the sole beneficial owner of the trust.  The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”).  The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and, therefore, consolidates the trust.  Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 6, “Corporate Investments and Funds Held for Clients.” 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, expenses, and accumulated other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Interim financial results are not necessarily indicative of financial results for a full year.  The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 (“fiscal 2020”).

Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's

presentation.

Note 2.  New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Effective July 1, 2020, the Company adopted accounting standard update (“ASU”) 2018-13, “Fair Value Measurement.” The update modifies the disclosure requirements on fair value measurements. The adoption of ASU 2018-13 modified the disclosures in Note 6 but did not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.

Effective July 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This update introduces the current expected credit loss (“CECL”) model, which requires an entity to measure credit losses based on expected losses rather than incurred losses for certain financial instruments and financial assets, including trade receivables. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated results of operations, financial condition, or cash flows.

7

Recently Issued Accounting Pronouncements

The following table summarizes recent ASU's issued by the Financial Accounting Standards Board (“FASB”) which have been assessed and are applicable to the Company:

Standard	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2018-14 Compensation-Retirement Benefits-Defined Benefit Plans	This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amendments in ASU 2018-14 would need to be applied on a retrospective basis.	July 1, 2021 (Fiscal 2022)	The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.

Note 3.  Revenue

Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three strategic pillars: Human Capital Management (“HCM”), HR Outsourcing (“HRO”), and Global (“Global”) Solutions, with separate disaggregation for PEO zero-margin benefits pass-through revenues and client funds interest revenues. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors.

The following tables provide details of revenue by our strategic pillars, and include a reconciliation to the Company’s reportable segments:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
Types of Revenues	2020		2019		2020		2019
HCM	$	1,624.8	$	1,647.9	$	3,155.4	$	3,216.5
HRO, excluding PEO zero-margin benefits pass-throughs	668.7		650.1		1,251.1		1,241.2
PEO zero-margin benefits pass-throughs	765.9		722.4		1,507.0		1,421.5
Global	530.9		511.4		1,041.1		1,014.5
Interest on funds held for clients	105.4		137.7		211.9		271.5
Total Revenues	$	3,695.7	$	3,669.5	$	7,166.5	$	7,165.2

8

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2020:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	1,625.2	$	—	$	(0.4)	$	1,624.8
HRO, excluding PEO zero-margin benefits pass-throughs	250.1		419.2		(0.6)		668.7
PEO zero-margin benefits pass-throughs	—		765.9		—		765.9
Global	530.9		—		—		530.9
Interest on funds held for clients	104.4		1.0		—		105.4
Total Segment Revenues	$	2,510.6	$	1,186.1	$	(1.0)	$	3,695.7

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2019:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	1,649.8	$	—	$	(1.9)	$	1,647.9
HRO, excluding PEO zero-margin benefits pass-throughs	239.9		411.0		(0.8)		650.1
PEO zero-margin benefits pass-throughs	—		722.4		—		722.4
Global	511.4		—		—		511.4
Interest on funds held for clients	136.4		1.3		—		137.7
Total Segment Revenues	$	2,537.5	$	1,134.7	$	(2.7)	$	3,669.5

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2020:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	3,157.4	$	—	$	(2.0)	$	3,155.4
HRO, excluding PEO zero-margin benefits pass-throughs	479.3		772.7		(0.9)		1,251.1
PEO zero-margin benefits pass-throughs	—		1,507.0		—		1,507.0
Global	1,041.1		—		—		1,041.1
Interest on funds held for clients	209.6		2.3		—		211.9
Total Segment Revenues	$	4,887.4	$	2,282.0	$	(2.9)	$	7,166.5

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2019:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	3,219.8	$	—	$	(3.3)	$	3,216.5
HRO, excluding PEO zero-margin benefits pass-throughs	475.6		767.5		(1.9)		1,241.2
PEO zero-margin benefits pass-throughs	—		1,421.5		—		1,421.5
Global	1,014.5		—		—		1,014.5
Interest on funds held for clients	269.0		2.5		—		271.5
Total Segment Revenues	$	4,978.9	$	2,191.5	$	(5.2)	$	7,165.2

Contract Balances

The timing of revenue recognition for HCM, HRO and Global Solutions is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.

9

Changes in deferred revenue related to set up fees for the six months ended December 31, 2020 were as follows:

Contract Liability
Contract liability, July 1, 2020	$	522.7
Recognition of revenue included in beginning of year contract liability	(85.8)
Contract liability, net of revenue recognized on contracts during the period	64.1
Currency translation adjustments	20.6
Contract liability, December 31, 2020	$	521.6

Note 4.  Earnings per Share (“EPS”)

	Basic		Effect of Employee Stock Option Shares	Effect of Employee Restricted Stock Shares	Diluted
Three Months Ended December 31, 2020
Net earnings	$	647.5			$	647.5
Weighted average shares (in millions)	427.4		0.7	0.9	429.0
EPS	$	1.51			$	1.51
Three Months Ended December 31, 2019
Net earnings	$	651.6			$	651.6
Weighted average shares (in millions)	431.5		1.1	0.7	433.3
EPS	$	1.51			$	1.50
Six Months Ended December 31, 2020
Net earnings	$	1,249.6			$	1,249.6
Weighted average shares (in millions)	428.0		0.7	0.8	429.5
EPS	$	2.92			$	2.91
Six Months Ended December 31, 2019
Net earnings	$	1,234.0			$	1,234.0
Weighted average shares (in millions)	432.1		1.1	1.1	434.3
EPS	$	2.86			$	2.84

Options to purchase 1.2 million and 1.3 million shares of common stock for the three months ended December 31, 2020 and 2019, respectively, and 1.8 million and 1.0 million shares of common stock for the six months ended December 31, 2020 and 2019, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

Note 5. Other (Income)/Expense, Net

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Interest income on corporate funds	$	(10.4)	$	(25.7)	$	(24.3)	$	(58.0)
Realized (gains) / losses on available-for-sale securities, net	(7.7)		(7.1)		(8.0)		(9.4)
Impairment of assets	2.2		—		5.0		—
Gain on sale of assets	(1.6)		(0.2)		(1.8)		(2.1)
Non-service components of pension income, net (see Note 11)	(11.5)		(13.0)		(24.9)		(31.1)
Other (income)/expense, net	$	(29.0)	$	(46.0)	$	(54.0)	$	(100.6)

Other (income)/expense, net, decreased for the three and six months ended December 31, 2020 primarily as a result of a decrease in interest income on corporate funds due to lower interest rates earned.

10

Note 6. Corporate Investments and Funds Held for Clients

Corporate investments and funds held for clients at December 31, 2020 and June 30, 2020 were as follows:

	December 31, 2020
	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized Losses		Fair Market Value (A)
Type of issue:
Money market securities, cash and other cash equivalents	$	16,128.5	$	—	$	—	$	16,128.5
Available-for-sale securities:
Corporate bonds	10,266.6		439.7		(0.9)		10,705.4
Asset-backed securities	2,741.5		87.3		—		2,828.8
U.S. Treasury securities	3,609.3		93.8		(0.1)		3,703.0
U.S. government agency securities	1,403.4		30.4		(0.9)		1,432.9
Canadian government obligations and Canadian government agency obligations	1,084.9		21.8		(0.1)		1,106.6
Commercial mortgage-backed securities	805.8		54.6		—		860.4
Canadian provincial bonds	713.9		34.5		(0.1)		748.3
Other securities	925.0		40.2		(0.1)		965.1
Total available-for-sale securities	21,550.4		802.3		(2.2)		22,350.5
Total corporate investments and funds held for clients	$	37,678.9	$	802.3	$	(2.2)	$	38,479.0

(A) Included within available-for-sale securities are corporate investments with fair values of $10.6 million and funds held for clients with fair values of $22,339.9 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.

	June 30, 2020
	Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value (B)
Type of issue:
Money market securities, cash and other cash equivalents	$	7,053.6	$	—	$	—	$	7,053.6
Available-for-sale securities:
Corporate bonds	9,188.7		473.4		—		9,662.1
Asset-backed securities	3,274.6		96.0		(0.5)		3,370.1
U.S. Treasury securities	3,580.6		120.8		—		3,701.4
U.S. government agency securities	1,128.2		35.6		—		1,163.8
Canadian government obligations and Canadian government agency obligations	1,018.7		23.1		—		1,041.8
Commercial mortgage-backed securities	814.3		53.9		—		868.2
Canadian provincial bonds	676.6		33.6		—		710.2
Other securities	1,018.1		41.1		(0.2)		1,059.0
Total available-for-sale securities	20,699.8		877.5		(0.7)		21,576.6
Total corporate investments and funds held for clients	$	27,753.4	$	877.5	$	(0.7)	$	28,630.2

(B) Included within available-for-sale securities are corporate investments with fair values of $13.6 million and funds held for clients with fair values of $21,563.0 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.

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For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2020. The Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company had no available-for-sale securities included in Level 1 or Level 3 at December 31, 2020.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2020, are as follows: 

	December 31, 2020
	Securities in Unrealized Loss Position Less Than 12 Months				Securities in Unrealized Loss Position Greater Than 12 Months				Total
	Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value
Corporate bonds	$	(0.9)	$	379.3	$	—	$	—	$	(0.9)	$	379.3
Asset-backed securities	—		3.2		—		—		—		3.2
U.S. Treasury securities	(0.1)		14.1		—		—		(0.1)		14.1
U.S. government agency securities	(0.9)		348.6		—		—		(0.9)		348.6
Canadian government obligations and Canadian government agency obligations	(0.1)		68.1		—		—		(0.1)		68.1
Commercial mortgage-backed securities	—		—		—		1.4		—		1.4
Canadian provincial bonds	(0.1)		45.7		—		—		(0.1)		45.7
Other securities	(0.1)		28.2		—		—		(0.1)		28.2
	$	(2.2)	$	887.2	$	—	$	1.4	$	(2.2)	$	888.6

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2020, are as follows:

	June 30, 2020
	Securities in Unrealized Loss Position Less Than 12 Months				Securities in Unrealized Loss Position Greater Than 12 Months				Total
	Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value
Corporate bonds	$	—	$	—	$	—	$	—	$	—	$	—
Asset-backed securities	(0.5)		43.9		—		—		(0.5)		43.9
U.S. Treasury securities	—		2.0		—		—		—		2.0
U.S. government agency securities	—		—		—		—		—		—
Canadian government obligations and Canadian government agency obligations	—		—		—		—		—		—
Commercial mortgage-backed securities	—		—		—		1.5		—		1.5
Canadian provincial bonds	—		—		—		—		—		—
Other securities	(0.2)		17.1		—		—		(0.2)		17.1
	$	(0.7)	$	63.0	$	—	$	1.5	$	(0.7)	$	64.5

At December 31, 2020, Corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carry credit ratings of A and above, and have maturities ranging from January 2021 through October 2030.

At December 31, 2020, asset-backed securities include AAA-rated senior tranches of securities with predominantly prime collateral of fixed-rate auto loan, credit card, equipment lease, and rate reduction receivables with fair values of $1,478.7 million, $965.8 million, $302.8 million, and $80.8 million, respectively. These securities are collateralized by the cash flows of the underlying pools of receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through December 31, 2020.

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At December 31, 2020, U.S. government agency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $679.4 million and $584.7 million, respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's, and AA+ by Standard & Poor's, with maturities ranging from January 2021 through November 2030.

At December 31, 2020, U.S government agency commercial mortgage-backed securities of $860.4 million include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.

At December 31, 2020, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair values of $560.7 million and AA-rated United Kingdom Gilt securities of $208.3 million.

Classification of corporate investments on the Consolidated Balance Sheets is as follows:

	December 31,		June 30,
	2020		2020
Corporate investments:
Cash and cash equivalents	$	1,602.2	$	1,908.5
Short-term marketable securities (a)	10.6		—
Long-term marketable securities (b)	—		13.6
Total corporate investments	$	1,612.8	$	1,922.1

(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets.

(b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets.

Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets.

Funds held for clients have been invested in the following categories:

	December 31,		June 30,
	2020		2020
Funds held for clients:
Restricted cash and cash equivalents held to satisfy client funds obligations	$	14,526.3	$	5,145.1
Restricted short-term marketable securities held to satisfy client funds obligations	4,768.3		5,541.2
Restricted long-term marketable securities held to satisfy client funds obligations	17,571.6		16,021.8
Total funds held for clients	$	36,866.2	$	26,708.1

Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax, and other payee payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling $36,066.1 million and $25,831.6 million at December 31, 2020 and June 30, 2020, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purpose of satisfying the client funds obligations. Of the Company’s funds held for clients at December 31, 2020 and June 30, 2020, $33,706.4 million and $23,740.0 million, respectively, are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and are eliminated in consolidation.

The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows. The Company has reported the cash and cash equivalents related to client funds investments with original maturities of ninety days or less, within the beginning and ending balances of cash, cash equivalents, restricted cash, and restricted cash equivalents. These amounts have been reconciled to the Consolidated Balance Sheets on the Statements of Consolidated Cash Flows. The Company has reported the cash flows related to the cash

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received from and paid on behalf of clients on a net basis within net increase / (decrease) in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows.

Approximately 77% of the available-for-sale securities held a AAA-rating or AA-rating at December 31, 2020, as rated by Moody's, Standard & Poor's, DBRS for Canadian dollar-denominated securities, and Fitch for asset-backed and commercial mortgage-backed securities.  All available-for-sale securities were rated as investment grade at December 31, 2020.

Expected maturities of available-for-sale securities at December 31, 2020 are as follows:

One year or less	$	4,778.9
One year to two years	4,561.0
Two years to three years	3,524.7
Three years to four years	2,670.6
After four years	6,815.3
Total available-for-sale securities	$	22,350.5

Note 7.  Leases

The Company records leases on the consolidated balance sheets as operating lease right-of-use (“ROU”) assets, records the current portion of operating lease liabilities within accrued expenses and other current liabilities and, separately, records long-term operating lease liabilities. The difference between total ROU assets and total lease liabilities are primarily attributable to pre-payments of our obligations and the recognition of various lease incentives.

The Company has entered into operating lease agreements for facilities and equipment. The Company's leases have remaining lease terms of up to approximately eleven years.

The components of operating lease expense were as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Operating lease cost	$	40.0	$	42.3	$	79.1	$	86.5
Short-term lease cost	0.3		1.2		0.7		3.9
Variable lease cost	2.2		0.7		4.3		2.0
Total operating lease cost	$	42.5	$	44.2	$	84.1	$	92.4

The following table provides supplemental cash flow information related to the Company's leases:

	Six Months Ended
	December 31,
	2020		2019
Cash paid for operating lease liabilities	$	77.0	$	75.8
Operating lease ROU assets obtained in exchange for new operating lease liabilities	$	72.0	$	17.4

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Other information related to our operating lease liabilities is as follows:

	December 31,			June 30,
	2020			2020
Weighted-average remaining lease term (in years)	6			6
Weighted-average discount rate	2.1		%	2.3		%
Current operating lease liability	$	97.4		$	95.5

As of December 31, 2020, maturities of operating lease liabilities are as follows:

Six months ending June 30, 2021	$	52.9
Twelve months ending June 30, 2022	100.5
Twelve months ending June 30, 2023	87.8
Twelve months ending June 30, 2024	65.0
Twelve months ending June 30, 2025	48.5
Thereafter	130.0
Total undiscounted lease obligations	484.7
Less: Imputed interest	(29.9)
Net lease obligations	$	454.8

Note 8. Goodwill and Intangible Assets, net

Changes in goodwill for the six months ended December 31, 2020 are as follows:

	Employer Services		PEO Services		Total
Balance at June 30, 2020	$	2,304.6	$	4.8	$	2,309.4
Additions and other adjustments	—		—		—
Currency translation adjustments	37.2		—		37.2
Balance at December 31, 2020	$	2,341.8	$	4.8	$	2,346.6

Components of intangible assets, net, are as follows:

	December 31,		June 30,
	2020		2020
Intangible assets:
Software and software licenses	$	2,831.3	$	2,719.1
Customer contracts and lists	1,038.9		1,021.2
Other intangibles	239.2		239.2
	4,109.4		3,979.5
Less accumulated amortization:
Software and software licenses	(1,995.6)		(1,912.0)
Customer contracts and lists	(680.8)		(628.3)
Other intangibles	(225.8)		(223.4)
	(2,902.2)		(2,763.7)
Intangible assets, net	$	1,207.2	$	1,215.8

Other intangibles consist primarily of purchased rights, trademarks and trade names (acquired directly or through acquisitions).  All intangible assets have finite lives and, as such, are subject to amortization.  The weighted average remaining useful life of the intangible assets is 6 years (6 years for software and software licenses, 5 years for customer contracts and lists, and 3 years for other intangibles).  Amortization of intangible assets was $80.8 million and $69.7 million for the three months ended December 31, 2020 and 2019, respectively, and $165.0 million and $139.1 million for the six months ended December 31, 2020 and 2019, respectively.

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Estimated future amortization expenses of the Company's existing intangible assets are as follows:

	Amount
Six months ending June 30, 2021	$	157.0
Twelve months ending June 30, 2022	$	270.2
Twelve months ending June 30, 2023	$	224.9
Twelve months ending June 30, 2024	$	176.7
Twelve months ending June 30, 2025	$	122.8
Twelve months ending June 30, 2026	$	72.6

Note 9. Short-term Financing

The Company has a $3.2 billion, 364-day credit agreement that matures in June 2021 with a one year term-out option.  The Company also has a $2.75 billion five year credit facility that matures in June 2024 that contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. In addition, the Company has a five year $3.75 billion credit facility maturing in June 2023 that also contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. The interest rate applicable to committed borrowings is tied to LIBOR, the effective federal funds rate, or the prime rate, depending on the notification provided by the Company to the syndicated financial institutions prior to borrowing. The Company is also required to pay facility fees on the credit agreements. The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary. The Company had no borrowings through December 31, 2020 under the credit agreements.

The Company's U.S. short-term funding requirements related to client funds are sometimes obtained on an unsecured basis through the issuance of commercial paper, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. This commercial paper program provides for the issuance of up to $9.7 billion in aggregate maturity value. The Company’s commercial paper program is rated A-1+ by Standard & Poor’s, Prime-1 (“P-1”) by Moody’s and F1+ by Fitch. These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from overnight to up to 364 days. At December 31, 2020 and June 30, 2020, the Company had no commercial paper borrowing outstanding. Details of the borrowings under the commercial paper program are as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Average daily borrowings (in billions)	$	1.8		$	3.5		$	2.1		$	3.7
Weighted average interest rates	0.1		%	1.7		%	0.1		%	2.0		%
Weighted average maturity (approximately in days)	1 day			2 days			1 day			2 days

The Company’s U.S., Canadian and United Kingdom short-term funding requirements related to client funds obligations are sometimes obtained on a secured basis through the use of reverse repurchase agreements, which are collateralized principally by government and government agency securities, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. These agreements generally have terms ranging from overnight to up to five business days. At December 31, 2020, there were no outstanding obligations related to reverse repurchase agreements. At June 30, 2020, the Company had $13.6 million of outstanding obligations related to the reverse repurchase agreements. Details of the reverse repurchase agreements are as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Average outstanding balances	$	83.2		$	335.9		$	117.8		$	381.2
Weighted average interest rates	0.3		%	1.7		%	0.3		%	1.8		%

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Note 10. Debt

The Company has two series of fixed-rate notes with 10-year, staggered maturities for an aggregate principal amount of $2.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually.

During the three months ended September 30, 2020, the Company issued $1.0 billion of senior notes due in 2030 bearing a fixed interest rate of 1.25%. The Company also redeemed $1.0 billion of senior notes bearing a fixed interest rate of 2.25%. In connection with the senior notes issuance, the Company also terminated several derivative contracts in place to hedge exposure in changes in benchmark interest rates for the senior notes issued with an aggregate notional amount totaling $1.0 billion (of which $400.0 million were entered into during fiscal year 2020 and $600.0 million were entered into on the day of issuance). Since these derivative contracts were classified as cash flow hedges, the unamortized loss of $43.6 million was deferred in accumulated other comprehensive income and will be amortized to earnings over the life of the Notes as the interest payments are made.

The principal amounts and associated effective interest rates of the Notes and other debt as of December 31, 2020 and June 30, 2020, are as follows:

Debt instrument	Effective Interest Rate	December 31, 2020		June 30, 2020
Fixed-rate 2.250% notes due September 15, 2020	2.37%	$	—	$	1,000.0
Fixed-rate 3.375% notes due September 15, 2025	3.47%	1,000.0		1,000.0
Fixed-rate 1.250% notes due September 1, 2030	1.83%	1,000.0		—
Other		7.6		8.4
		2,007.6		2,008.4
Less: current portion (a)		(1.4)		(1,001.8)
Less: unamortized discount and debt issuance costs		(12.1)		(3.8)
Total long-term debt		$	1,994.1	$	1,002.8

(a) - Current portion of long-term debt as of December 31, 2020 is included within Accrued expenses and other current liabilities on the Consolidated Balance Sheets.

The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs.

As of December 31, 2020, the fair value of the Notes, based on Level 2 inputs, was $2,120.6 million. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2020.

Note 11. Employee Benefit Plans

A.  Stock-based Compensation Plans. Stock-based compensation consists of the following:

The Company's share-based compensation consists of stock options, time-based restricted stock, time-based restricted stock

units, performance-based restricted stock, and performance-based restricted stock units. The Company also offers an employee

stock purchase plan for eligible employees.

The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. The Company repurchased 1.6 million and 1.8 million shares in the three months ended December 31, 2020 and 2019, respectively, and repurchased 3.2 million and 3.7 million shares in the six months ended December 31, 2020 and 2019, respectively. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions.

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The following table represents pre-tax stock-based compensation expense for the three and six months ended December 31, 2020 and 2019, respectively:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Operating expenses	$	4.8	$	3.4	$	8.4	$	7.4
Selling, general and administrative expenses	35.6		28.0		60.9		56.3
System development and programming costs	6.7		4.8		11.6		9.6
Total stock-based compensation expense	$	47.1	$	36.2	$	80.9	$	73.3

The methods and assumptions used in the determination of the fair value of stock-based awards are consistent with those

described in the Company's Annual Report on Form 10-K for fiscal 2020. See the Company's Annual Report on Form 10-K for fiscal 2020 for a detailed description of the Company's stock-based compensation awards and employee stock purchase plan, including information related to vesting terms, service and performance conditions, payout percentages, and process for estimating the fair value of stock options granted.

B.  Pension Plans

The components of net pension income were as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Service cost – benefits earned during the period	$	1.2	$	14.9	$	2.4	$	29.9
Interest cost on projected benefits	12.8		15.4		25.5		30.9
Expected return on plan assets	(30.4)		(29.5)		(60.7)		(59.0)
Net amortization and deferral	2.5		1.5		5.0		2.9
Settlement charges and special termination benefits	2.9		—		5.8		(5.1)
Net pension (income)/expense	$	(11.0)	$	2.3	$	(22.0)	$	(0.4)

Note 12. Income Taxes

The effective tax rate for the three months ended December 31, 2020 and 2019 was 22.2% and 22.0%, respectively. The increase in the effective tax rate is primarily due to the benefit from a valuation allowance release related to foreign tax credit carryforwards in the three months ended December 31, 2019, partially offset by the benefits from a foreign tax election in the three months ended December 31, 2020.

The effective tax rate for the six months ended December 31, 2020 and 2019 was 21.8% and 21.6%, respectively. The increase in the effective tax rate is primarily due to the benefit from a valuation allowance release related to foreign tax credits carryforwards in the six months ended December 31, 2019 and a decrease in the excess tax benefit on stock-based compensation partially offset by favorable adjustments to prior year tax liabilities and the benefits from a foreign tax election in the six months ended December 31, 2020.

Note 13. Commitments and Contingencies

In June 2018, a potential class action complaint was filed against the Company in the Circuit Court of Cook County, Illinois asserting that ADP violated the Illinois Biometric Privacy Act in connection with its collection, use and storage of biometric data of employees of its clients who are residents of Illinois. In addition, similar potential class action complaints have been filed in Illinois state courts against ADP and/or certain of its clients with respect to the collection, use and storage of biometric data of the employees of these clients. In June 2020, the Company reached a settlement of all outstanding claims against it for $25.0 million, subject to the court's final approval. The Company does not expect that any of the remaining cases against its clients will result in any material liabilities to the Company.

In May 2020, two potential class action complaints were filed against ADP, TotalSource and related defendants in the U.S. District Court, District of New Jersey. The complaints assert violations of the Employee Retirement Income Security Act of

18

1974 (“ERISA”) in connection with the ADP TotalSource Retirement Savings Plan’s fiduciary administrative and investment decision-making. The complaints seek statutory and other unspecified monetary damages, injunctive relief and attorney’s fees. These claims are still in their earliest stages and the Company is unable to estimate any reasonably possible loss, or range of loss, with respect to these matters. The Company intends to vigorously defend against these lawsuits.

The Company is subject to various claims, litigation, and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. Management currently believes that the resolution of these claims, litigation and regulatory compliance matters against us, individually or in the aggregate, will not have a material adverse impact on our consolidated results of operations, financial condition or cash flows. These matters are subject to inherent uncertainties and management's view of these matters may change in the future.

It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material losses related to such representations and warranties.

Note 14. Stockholders' Equity

Changes in stockholders' equity by component are as follows:

	Three Months Ended
	December 31, 2020
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at September 30, 2020	$	63.9	$	1,348.4	$	18,644.7	$	(14,264.0)	$	15.9	$	5,808.9
Net earnings	—		—		647.5		—		—		647.5
Other comprehensive income	—		—		—		—		24.4		24.4
Stock-based compensation expense	—		40.6		—		—		—		40.6
Issuances relating to stock compensation plans	—		18.6		—		17.7		—		36.3
Treasury stock acquired (1.6 million shares repurchased)	—		—		—		(259.1)		—		(259.1)
Dividends declared ($0.93 per share)	—		—		(398.6)		—		—		(398.6)
Balance at December 31, 2020	$	63.9	$	1,407.6	$	18,893.6	$	(14,505.4)	$	40.3	$	5,900.0

	Three Months Ended
	December 31, 2019
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at September 30, 2019	$	63.9	$	1,213.7	$	17,729.6	$	(13,412.6)	$	(233.9)	$	5,360.7
Net earnings	—		—		651.6		—		—		651.6
Other comprehensive income	—		—		—		—		2.7		2.7
Stock-based compensation expense	—		31.3		—		—		—		31.3
Issuances relating to stock compensation plans	—		8.7		—		14.5		—		23.2
Treasury stock acquired (1.8 million shares repurchased)	—		—		—		(311.5)		—		(311.5)
Dividends declared ($0.91 per share)	—		—		(393.6)		—		—		(393.6)
Balance at December 31, 2019	$	63.9	$	1,253.7	$	17,987.6	$	(13,709.6)	$	(231.2)	$	5,364.4

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	Six Months Ended
	December 31, 2020
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at June 30, 2020	$	63.9	$	1,333.8	$	18,436.3	$	(14,067.0)	$	(14.8)	$	5,752.2
Net earnings	—		—		1,249.6		—		—		1,249.6
Other comprehensive income	—		—		—		—		55.1		55.1
Stock-based compensation expense	—		75.7		—		—		—		75.7
Issuances relating to stock compensation plans	—		(1.9)		—		83.0		—		81.1
Treasury stock acquired (3.2 million shares repurchased)	—		—		—		(521.4)		—		(521.4)
Dividends declared ($1.84 per share)	—		—		(792.3)		—		—		(792.3)
Balance at December 31, 2020	$	63.9	$	1,407.6	$	18,893.6	$	(14,505.4)	$	40.3	$	5,900.0

	Six Months Ended
	December 31, 2019
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at June 30, 2019	$	63.9	$	1,183.2	$	17,500.6	$	(13,090.5)	$	(257.3)	$	5,399.9
Net earnings	—		—		1,234.0		—		—		1,234.0
Other comprehensive income	—		—		—		—		26.1		26.1
Stock-based compensation expense	—		67.3		—		—		—		67.3
Issuances relating to stock compensation plans	—		3.2		—		84.9		—		88.1
Treasury stock acquired (3.7 million shares repurchased)	—		—		—		(704.0)		—		(704.0)
Dividends declared ($1.70 per share)	—		—		(740.2)		—		—		(740.2)
Other	—		—		(6.8)		—		—		(6.8)
Balance at December 31, 2019	$	63.9	$	1,253.7	$	17,987.6	$	(13,709.6)	$	(231.2)	$	5,364.4

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Note 15. Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”)

Changes in AOCI by component are as follows:

	Three Months Ended
	December 31, 2020
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities			Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at September 30, 2020	$	(271.8)	$	661.1		$	(32.2)		$	(341.2)		$	15.9
Other comprehensive (loss)/income before reclassification adjustments	61.9		(44.1)			—			—			17.8
Tax effect	—		10.0			—			—			10.0
Reclassification adjustments to net earnings	—		(7.7)		(A)	1.1		(C)	2.5		(B)	(4.1)
Tax effect	—		1.7			(0.4)			(0.6)			0.7
Balance at December 31, 2020	$	(209.9)	$	621.0		$	(31.5)		$	(339.3)		$	40.3

	Three Months Ended
	December 31, 2019
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities		Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at September 30, 2019	$	(318.1)	$	298.1		$	—	$	(213.9)		$	(233.9)
Other comprehensive (loss)/income before reclassification adjustments	34.3		(35.5)			0.7		—			(0.5)
Tax effect	—		7.5			(0.2)		—			7.3
Reclassification adjustments to net earnings	—		(7.1)		(A)	—		1.9		(B)	(5.2)
Tax effect	—		1.6			—		(0.5)			1.1
Balance at December 31, 2019	$	(283.8)	$	264.6		$	0.5	$	(212.5)		$	(231.2)

	Six Months Ended
	December 31, 2020
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities			Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at June 30, 2020	$	(322.2)	$	680.4		$	(30.3)		$	(342.7)		$	(14.8)
Other comprehensive (loss)/income before reclassification adjustments	112.3		(68.7)			(3.3)			—			40.3
Tax effect	—		15.5			0.8			—			16.3
Reclassification adjustments to net earnings	—		(8.0)		(A)	1.7		(C)	5.0		(B)	(1.3)
Tax effect	—		1.8			(0.4)			(1.6)			(0.2)
Balance at December 31, 2020	$	(209.9)	$	621.0		$	(31.5)		$	(339.3)		$	40.3

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	Six Months Ended
	December 31, 2019
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities		Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at June 30, 2019	$	(269.2)	$	224.6		$	—	$	(212.7)		$	(257.3)
Other comprehensive (loss)/income before reclassification adjustments	(14.6)		60.6			0.7		—			46.7
Tax effect	—		(13.3)			(0.2)		—			(13.5)
Reclassification adjustments to net earnings	—		(9.4)		(A)	—		0.2		(B)	(9.2)
Tax effect	—		2.1			—		—			2.1
Balance at December 31, 2019	$	(283.8)	$	264.6		$	0.5	$	(212.5)		$	(231.2)

(A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings.

(B) Reclassification adjustments out of AOCI are included in net pension (income)/expense (see Note 11).

(C) Reclassification adjustments out of AOCI are included in Interest expense on the Statements of Consolidated Earnings (see Note 10).

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Note 16. Interim Financial Data by Segment

Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. The primary components of the “Other” segment are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and interest expense. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility. The Company made changes to the allocation methodology for certain corporate allocations, in both the current period and the prior period in the table below, which did not materially affect reportable segment results.

Segment Results:

	Revenues
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Employer Services	$	2,510.6	$	2,537.5	$	4,887.4	$	4,978.9
PEO Services	1,186.1		1,134.7		2,282.0		2,191.5
Other	(1.0)		(2.7)		(2.9)		(5.2)
	$	3,695.7	$	3,669.5	$	7,166.5	$	7,165.2

	Earnings before Income Taxes
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Employer Services	$	758.6	$	766.3	$	1,447.8	$	1,445.7
PEO Services	187.4		168.0		346.8		317.3
Other	(113.4)		(98.8)		(196.8)		(188.4)
	$	832.6	$	835.5	$	1,597.8	$	1,574.6

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

(Tabular dollars are presented in millions, except per share amounts)

FORWARD-LOOKING STATEMENTS

This document and other written or oral statements made from time to time by Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like “expects,” “assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could” and other words of similar meaning, are forward-looking statements. These statements are based on management’s expectations and assumptions and depend upon or refer to future events or conditions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements or that could contribute to such difference include: ADP's success in obtaining and retaining clients, and selling additional services to clients; the pricing of products and services; the success of our new solutions; compliance with existing or new legislation or regulations; changes in, or interpretations of, existing legislation or regulations; overall market, political and economic conditions, including interest rate and foreign currency trends; competitive conditions; our ability to maintain our current credit ratings and the impact on our funding costs and profitability; security or cyber breaches, fraudulent acts, and system interruptions and failures; employment and wage levels; changes in technology; availability of skilled technical associates; the impact of new acquisitions and divestitures; the adequacy, effectiveness and success of our business transformation initiatives; and the impact of and uncertainties related to major natural disasters or catastrophic events, including the coronavirus ("COVID-19") pandemic. ADP disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. These risks and uncertainties, along with the risk factors discussed under “Item 1A. - Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020 (“fiscal 2020”), and in other written or oral statements made from time to time by ADP, should be considered in evaluating any forward-looking statements contained herein.

NON-GAAP FINANCIAL MEASURES

In addition to our U.S. GAAP results, we use adjusted results and other non-GAAP metrics to evaluate our operating performance in the absence of certain items and for planning and forecasting of future periods. Adjusted EBIT, adjusted EBIT margin, adjusted net earnings, adjusted diluted earnings per share, adjusted effective tax rate and organic constant currency are all non-GAAP financial measures. Please refer to the accompanying financial tables in the “Non-GAAP Financial Measures” section for a discussion of why ADP believes these measures are important and for a reconciliation of non-GAAP financial measures to their comparable GAAP financial measures.

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EXECUTIVE OVERVIEW

Highlights from the six months ended December 31, 2020 include:

We are a leading global provider of cloud-based Human Capital Management (“HCM”) technology solutions to employers around the world. The global COVID-19 pandemic has had a significant impact on the global business environment and on our clients, but our priority has been and continues to be the safety of our associates and the needs of our clients. We have continued to provide HCM services, including the processing of payroll and tax obligations, to our clients during this time. ADP's efforts have also been focused on providing information and tools to help clients understand and navigate the governmental relief that has been adopted globally. In addition, we released a Return to Workplace solution that assists our clients in bringing their employees back to work safely through a comprehensive set of tools designed to streamline the entire process.

We are executing well considering the on-going headwinds related to COVID-19 and our momentum continued to build this quarter as economic activity continued to trend positively. Our pays per control metric, which represents the number of employees on ADP clients' payrolls in the United States when measured on a same-store-sales basis for a subset of clients ranging from small to large businesses, showed a decline of 7% in the six months ended December 31, 2020; however, we've seen an improvement sequentially with a decline of 6% in the three months ended December 31, 2020 compared to a decline of 9% in the three months ended September 30, 2020. For Employer Services New Business Bookings, we are down 2% for the six months ended December 31, 2020, nearly matching the prior fiscal year's first half performance despite the very difficult environment. For the six months ended December 31, 2020, the PEO average number of Worksite Employees decreased 2%. Despite the decline for the six months ended December 31, 2020, we have seen some improvements compared to first quarter. The PEO average number of Worksite Employees decreased 2% for the three months ended December 31, 2020, compared to a decrease of 3% in the three months ended September 30, 2020. Further, even with the operating challenges brought about by the pandemic, we continue to move forward with our digital and procurement transformation initiatives, which helped us deliver profit growth and margin expansion for the six months ended December 31, 2020.

We continue to drive innovation by anticipating our clients' evolving needs and always designing for people as the world of work changes. We lead the HCM industry by driving growth through our strategic, cloud-based HCM solutions and developing innovations like our next gen platforms. We further enable these solutions by supplementing them with organic, differentiated investments such as the ADP Marketplace and ADP Datacloud, and through our compliance expertise. The recognition we have received in the market for our next gen payroll platform and in winning the 2020 HR Executive 'Top HR Product' award reflect our commitment to innovation and strong execution by our associates.

We have a strong business model, a highly cash generative business with low capital intensity, and we offer a suite of products that provide critical HCM support to our clients. We generate sufficient free cash flow to satisfy our cash dividend and our modest debt obligations, which enables us to absorb the impact of downturns and remain steadfast in our product investments, our longer term strategy, and our commitments to shareholder friendly actions. We are committed to building upon our past successes by investing in our business through enhancements in research and development and by driving meaningful

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operational transformation. Our financial condition remains solid at December 31, 2020, and we remain well positioned to support our associates and our clients.

RESULTS AND ANALYSIS OF CONSOLIDATED OPERATIONS

Total Revenues

For the three months and six months ended December 31, respectively:

Growth:	á	1%	Flat
Organic constant currency:		Flat	Flat

Revenues for the three months ended December 31, 2020 increased due to strong retention, new business started from New Business Bookings, an increase in zero-margin benefits pass-throughs and one percentage point of favorability from foreign currency. The increase in revenues was partially offset by one percentage point of unfavorability from our interest earned on funds held for clients discussed below and a decrease in our pays per control.

Revenues for the six months ended December 31, 2020 were flat due to strong retention, new business started from New Business Bookings and an increase in zero-margin benefits pass-throughs, offset by one percentage point of unfavorability from our interest earned on funds held for clients discussed below and a decrease in our pays per control. Refer to “Analysis of Reportable Segments” for additional discussion of the changes in revenue for both of our reportable segments, Employer Services and Professional Employer Organization (“PEO”) Services, respectively.

Total revenues for the three months ended December 31, 2020 include interest on funds held for clients of $105.4 million, as compared to $137.7 million for the three months ended December 31, 2019. The decrease in the interest earned on funds held for clients resulted from the decrease in our average interest rate earned to 1.7% for the three months ended December 31, 2020, as compared to 2.2% for the three months ended December 31, 2019.

Total revenues for the six months ended December 31, 2020 include interest on funds held for clients of $211.9 million, as compared to $271.5 million for the six months ended December 31, 2019. The decrease in the interest earned on funds held for clients resulted from the decrease in our average interest rate earned to 1.8% for the six months ended December 31, 2020, as compared to 2.2% for the six months ended December 31, 2019 coupled with a decrease in our average client funds balances of 3.4% to $23.5 billion for the six months ended December 31, 2020, as compared to the six months ended December 31, 2019.

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Total Expenses

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020		2019		% Change		2020		2019		% Change
Costs of revenues:
Operating expenses	$	1,847.8	$	1,836.0	1	%	$	3,610.0	$	3,623.6	—	%
Systems development and programming costs	174.5		168.7		3	%	343.2		336.9		2	%
Depreciation and amortization	100.1		89.4		12	%	203.6		178.3		14	%
Total costs of revenues	2,122.4		2,094.1		1	%	4,156.8		4,138.8		—	%
Selling, general and administrative expenses	755.8		754.3		—	%	1,436.9		1,480.9		(3)	%
Interest expense	13.9		31.6		(56)	%	29.0		71.5		(59)	%
Total expenses	$	2,892.1	$	2,880.0	—	%	$	5,622.7	$	5,691.2	(1)	%

For the three months ended December 31, 2020, operating expenses increased due to an increase in PEO zero-margin benefits pass-through costs to $765.9 million from $722.4 million for the three months ended December 31, 2020 and 2019, respectively, and an increase in incentive compensation costs due to decreases in the prior year. The increases were partially offset by reduced costs from certain cost and headcount actions as a result of our broad-based transformation initiatives, including digital and procurement transformation initiatives (“broad-based transformation initiatives”), and excess capacity headcount actions. Additionally, increases were further offset by reduced travel expenses and decreased pension costs as a result of eliminated U.S. pension service costs with the July 1, 2020 cessation of U.S. participants accruing any future service benefits (“U.S. pension freeze”).

For the six months ended December 31, 2020, operating expenses were flat due to reduced costs as a result of our broad-based transformation initiatives, excess capacity headcount actions, reduced travel expenses, and decreased costs as a result of the U.S. pension freeze. These decreases were offset by an increase in our PEO Services zero-margin benefits pass-through costs to $1,507.0 million from $1,421.5 million for the six months ended December 31, 2020 and 2019, respectively, and an increase in incentive compensation costs.

Systems development and programming costs increased for the three and six months ended December 31, 2020 due to increased investments and costs to develop, support, and maintain our products, offset by capitalization of costs related to our strategic projects, including our next gen platforms. Depreciation and amortization expense increased due to the amortization of our acquisitions of intangibles and internally developed software.

Selling, general and administrative expenses were flat for the three months ended December 31, 2020 due to an increase in incentive compensation costs and investments in our sales organization, offset by decreased selling expenses as a result of capitalization of costs to obtain a contract under ASC 606, reduced travel expenses, reduced costs as a result of our broad-based transformation initiatives, and excess capacity headcount actions for non-sales associates.

Selling, general and administrative expenses decreased for the six months ended December 31, 2020 due to decreased selling expenses as a result of capitalization of costs to obtain a contract under ASC 606, reduced travel expenses, reduced costs as a result of our broad-based transformation initiatives and excess capacity headcount actions for non-sales associates, and reduced facilities costs. The decrease was partially offset by an increase in incentive compensation costs.

Interest expense decreased for the three and six months ended December 31, 2020 due to a decrease in average interest rates for commercial paper borrowings to 0.1% and 0.1% for the three and six months ended December 31, 2020, respectively, as compared to 1.7% and 2.0% for the three and six months ended December 31, 2019, respectively. This was coupled with a decrease in average daily borrowings under our commercial paper program to $1.8 billion and $2.1 billion for the three and six months ended December 31, 2020, respectively, as compared to $3.5 billion and $3.7 billion for the three and six months ended December 31, 2019, respectively.

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Other (Income)/Expense, net

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020		2019		$ Change		2020		2019		$ Change
Interest income on corporate funds	$	(10.4)	$	(25.7)	$	(15.3)	$	(24.3)	$	(58.0)	$	(33.7)
Realized (gains) / losses on available-for-sale securities, net	(7.7)		(7.1)		0.6		(8.0)		(9.4)		(1.4)
Impairment of assets	2.2		—		(2.2)		5.0		—		(5.0)
Gain on sale of assets	(1.6)		(0.2)		1.4		(1.8)		(2.1)		(0.3)
Non-service components of pension income, net	(11.5)		(13.0)		(1.5)		(24.9)		(31.1)		(6.2)
Other (income)/expense, net	$	(29.0)	$	(46.0)	$	(17.0)	$	(54.0)	$	(100.6)	$	(46.6)

Other (income)/expense, net, decreased $17.0 million and $46.6 million for the three and six months ended December 31, 2020 primarily as a result of a decrease in interest income on corporate funds due to lower interest rates earned.

Earnings Before Income Taxes

For the three months ended December 31:

Growth:   Flat â 20bps

For the six months ended December 31:

Growth: á 1% á 30bps

Earnings before income taxes was flat for the three months ended December 31, 2020 and increased for the six months ended December 31, 2020 due to the components discussed above.

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Margin decreased for the three months ended December 31, 2020 as a result of an increase in incentive compensation costs, incremental pressure from growth in our zero-margin benefits pass-throughs, and an increase in amortization expense, partially offset by reduced costs as a result of our broad-based transformation initiatives, and excess capacity headcount actions. In addition, the margin decrease was offset by decreased selling expenses, reduced travel expenses, decreased interest expense, and decreased pension costs as a result of the U.S. pension freeze.

Margin increased for the six months ended December 31, 2020 due to reduced costs as a result of our broad-based transformation initiatives and excess capacity headcount actions. In addition, our margin improvement was aided by decreased selling expenses, decreased interest expense, reduced travel expenses, decreased pension costs as a result of the U.S. pension freeze, and reduced facilities costs. These were partially offset by an increase in incentive compensation costs, incremental pressure from growth in our zero-margin benefits pass-throughs and an increase in amortization expense.

Adjusted Earnings before certain Interest and Taxes ("Adjusted EBIT")

For the three months ended December 31:

Growth: â 1% â 30bps

For the six months ended December 31:

Growth: á 2% á 40bps

Adjusted EBIT and Adjusted EBIT margin exclude certain interest amounts, gain on sale of assets, net charges related to our broad-based transformation initiatives and the impact of the net severance charges as applicable in the respective periods.

Provision for Income Taxes

The effective tax rate for the three months ended December 31, 2020 and 2019 was 22.2% and 22.0%, respectively. The

increase in the effective tax rate is primarily due to the benefit from a valuation allowance release related to foreign tax credit carryforwards in the three months ended December 31, 2019, partially offset by the benefits from a foreign tax election in the three months ended December 31, 2020.

The effective tax rate for the six months ended December 31, 2020 and 2019 was 21.8% and 21.6%, respectively. The increase in the effective tax rate is primarily due to the benefit from a valuation allowance release related to foreign tax credits carryforwards in the six months ended December 31, 2019 and a decrease in the excess tax benefit on stock-based

29

compensation, partially offset by favorable adjustments to prior year tax liabilities and the benefits from a foreign tax election in the six months ended December 31, 2020.

Adjusted Provision for Income Taxes

The adjusted effective tax rate for the three months ended December 31, 2020 and 2019 was 22.2% and 22.0%, respectively. The adjusted effective tax rate for the six months ended December 31, 2020 and 2019 was 21.8% and 21.6%, respectively. The drivers of the adjusted effective tax rate are the same as the drivers of the effective tax rate discussed above.

Net Earnings and Diluted EPS

For the three months ended December 31:

Growth: â 1% á 1%

For the six months ended December 31:

Growth: á 1% á 2%

For the three and six months ended December 31, 2020, net earnings reflect the changes described above in our earnings before income taxes and our effective tax rate.

For the three months ended December 31, 2020, diluted EPS increased as a result of fewer shares outstanding resulting from the repurchase of approximately 1.6 million shares during the three months ended December 31, 2020 and 1.8 million shares during the three months ended December 31, 2019, partially offset by the issuances of shares under our employee benefit plans and a decrease in net earnings.

For the six months ended December 31, 2020, diluted EPS increased as a result of an increase in net earnings and the impact of fewer shares outstanding resulting from the repurchase of approximately 3.2 million shares during the six months ended December 31, 2020 and 3.7 million shares during the six months ended December 31, 2019, partially offset by the issuances of shares under our employee benefit plans.

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Adjusted Net Earnings and Adjusted Diluted EPS

For the three months ended December 31:

Growth: â 1%        Flat

For the six months ended December 31:

Growth: á 1% á 2%

For the three and six months ended December 31, 2020, adjusted net earnings and adjusted diluted EPS reflect the changes in components described above.

ANALYSIS OF REPORTABLE SEGMENTS

	Revenues
	Three Months Ended				% Change				Six Months Ended
	December 31,								December 31,				% Change
	2020		2019		As Reported		Organic constant currency		2020		2019		As Reported		Organic constant currency
Employer Services	$	2,510.6	$	2,537.5	(1)	%	(2)	%	$	4,887.4	$	4,978.9	(2)	%	(2)	%
PEO Services	1,186.1		1,134.7		5	%	5	%	2,282.0		2,191.5		4	%	4	%
Other	(1.0)		(2.7)		n/m		n/m		(2.9)		(5.2)		n/m		n/m
	$	3,695.7	$	3,669.5	1	%	—	%	$	7,166.5	$	7,165.2	—	%	—	%

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	Earnings before Income Taxes
	Three Months Ended				% Change		Six Months Ended				% Change
	December 31,						December 31,
	2020		2019		As Reported		2020		2019		As Reported
Employer Services	$	758.6	$	766.3	(1)	%	$	1,447.8	$	1,445.7	—	%
PEO Services	187.4		168.0		12	%	346.8		317.3		9	%
Other	(113.4)		(98.8)		n/m		(196.8)		(188.4)		n/m
	$	832.6	$	835.5	—	%	$	1,597.8	$	1,574.6	1	%

n/m - not meaningful

Employer Services

Revenues

Revenues decreased for the three months ended December 31, 2020 due to one percentage point of unfavorability from our interest earned on funds held for clients and decreases in our pays per control of 6%. These decreases were partially offset by strong retention, new business started from New Business Bookings and one percentage point of favorability from foreign currency.

Revenues decreased for the six months ended December 31, 2020 due to one percentage point of unfavorability from our interest earned on funds held for clients and decreases in our pays per control of 7%. These decreases were partially offset by strong retention and new business started from New Business Bookings.

Earnings before Income Taxes

Employer Services' earnings before income taxes decreased for the three months ended December 31, 2020 due to decreased revenues discussed above, partially offset by decreases in expenses. The decreases in expenses were due to reduced costs as a result of our broad-based transformation initiatives and excess capacity headcount actions. Additionally, decreases in expenses were due to a decrease in selling expenses and reduced travel expenses. These decreases in expenses were partially offset by an increase in incentive compensation costs and an increase in amortization expense.

Employer Services' earnings before income taxes was flat for the six months ended December 31, 2020 due to decreased revenues discussed above, offset by decreases in expenses. The decreases in expenses were due to reduced costs as a result of our broad-based transformation initiatives and excess capacity headcount actions. Additionally, decreases in expenses were due to a decrease in selling expenses and reduced facilities costs and reduced travel expenses. These decreases were partially offset by an increase incentive compensation costs and an increase in amortization expense.

For the three and six months ended December 31, respectively:

Growth:    Flat á 60bps

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Employer Services' margin was flat for the three months ended December 31, 2020 due to reduced costs as a result of our broad-based transformation initiatives and excess capacity headcount actions, decreased selling expenses, and reduced travel expenses. These were offset by an increase in incentive compensation costs and an increase in amortization expense.

Employer Services' margin increased for the six months ended December 31, 2020 due to reduced costs as a result of our broad-based transformation initiatives and excess capacity headcount actions. In addition, our margin improvement was aided by decreased selling expenses, reduced facilities costs and reduced travel expenses. These were partially offset by an increase in incentive compensation costs and an increase in amortization expense.

PEO Services

Revenues

	PEO Revenues
	Three Months Ended				Change				Six Months Ended				Change
	December 31,								December 31,
	2020		2019		$		%		2020		2019		$		%
PEO Services' revenues	$	1,186.1	$	1,134.7	$	51.4	5	%	$	2,282.0	$	2,191.5	$	90.5	4	%
Less: PEO zero-margin benefits pass-throughs	765.9		722.4		43.5		6	%	1,507.0		1,421.5		85.5		6	%
PEO Services' revenues excluding zero-margin benefits pass-throughs	$	420.2	$	412.3	$	7.9	2	%	$	775.0	$	770.0	$	5.0	1	%

PEO Services' revenues increased 5% and 4% for the three and six months ended December 31, 2020, respectively, due to an increase in zero-margin benefits pass-throughs partially offset by a 2% decrease in the number of Average Worksite Employees for the three and six months ended December 31, 2020, respectively.

Earnings before Income Taxes

PEO Services' earnings before income taxes increased 12% and 9% for the three and six months ended December 31, 2020, respectively, due to increased revenues discussed above, partially offset by increases in expenses. The increases in expenses were related to increases in zero-margin benefits pass-through costs of $43.5 million and $85.5 million, respectively, described above, partially offset by decreases in selling expenses. In addition, the increase in expenses for the six months ended December 31, 2020 was partially offset by changes in our estimated losses related to ADP Indemnity.

For the three and six months ended December 31, respectively:

Growth: á 100bps á 70bps

PEO Services' margin increased due to an increase in revenues as discussed above and a decrease in selling expenses in the three months ended December 31, 2020, as compared to the three months ended December 31, 2019.

PEO Services' margin increased due to an increase in revenues as discussed above, a decrease in selling expenses and a change in our estimated losses related to ADP Indemnity in the six months ended December 31, 2020, as compared to the six months ended December 31, 2019.

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ADP Indemnity provides workers’ compensation and employer’s liability deductible reimbursement insurance protection for PEO Services’ worksite employees up to $1 million per occurrence. PEO Services has secured a workers’ compensation and employer’s liability insurance policy that has a $1 million per occurrence retention and, in fiscal years 2012 and prior, aggregate stop loss insurance that covers any aggregate losses within the $1 million retention that collectively exceed a certain level, from an admitted and licensed insurance company of AIG. We utilize historical loss experience and actuarial judgment to determine the estimated claim liability, and changes in estimated ultimate incurred losses are included in the PEO segment. Beginning in fiscal year 2013, ADP Indemnity paid premiums to enter into reinsurance arrangements with ACE American Insurance Company, a wholly-owned subsidiary of Chubb Limited, to cover substantially all losses incurred by ADP Indemnity during these policy years. Each of these reinsurance arrangements limits our overall exposure incurred up to a certain limit. We believe the likelihood of ultimate losses exceeding this limit is remote. ADP Indemnity recorded a pre-tax benefit of approximately $4.8 million and $15.2 million for the three and six months ended December 31, 2020, respectively, compared to approximately $4.7 million and $8.1 million for the three and six months ended December 31, 2019, respectively, which were primarily a result of changes in our estimated actuarial losses. In July 2020, ADP Indemnity paid a premium of $240 million to enter into a reinsurance arrangement with Chubb Limited to cover substantially all losses incurred by ADP Indemnity for the fiscal 2021 policy year on terms substantially similar to the fiscal 2020 reinsurance policy.

Other

The primary components of “Other” are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and other interest expense.

Non-GAAP Financial Measures

In addition to our U.S. GAAP results, we use the adjusted results and other non-GAAP metrics set forth in the table below to evaluate our operating performance in the absence of certain items and for planning and forecasting of future periods:

Adjusted Financial Measure	U.S. GAAP Measures
Adjusted EBIT	Net earnings
Adjusted provision for income taxes	Provision for income taxes
Adjusted net earnings	Net earnings
Adjusted diluted earnings per share	Diluted earnings per share
Adjusted effective tax rate	Effective tax rate
Organic constant currency	Revenues

We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations and against prior period, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because it allows investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance.  The nature of these exclusions is for specific items that are not fundamental to our underlying business operations.  Since these adjusted financial measures and other non-GAAP metrics are not measures of performance calculated in accordance with U.S. GAAP, they should not be considered in isolation from, as a substitute for, or superior to their corresponding U.S. GAAP measures, and they may not be comparable to similarly titled measures at other companies.

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	Three Months Ended						% Change		Six Months Ended						% Change
	December 31,								December 31,
	2020			2019			As Reported		2020			2019			As Reported
Net earnings	$	647.5		$	651.6		(1)	%	$	1,249.6		$	1,234.0		1	%
Adjustments:
Provision for income taxes	185.1			183.9					348.2			340.6
All other interest expense (a)	13.2			14.7					27.3			29.5
All other interest income (a)	(1.5)			(5.4)					(3.3)			(13.8)
Gain on sale of assets	—			(0.2)					—			(0.2)
Transformation initiatives (b)	3.3			9.1					4.1			8.6
Excess capacity severance charges (c)	0.5			—					2.9			—
Adjusted EBIT	$	848.1		$	853.7		(1)	%	$	1,628.8		$	1,598.7		2	%
Adjusted EBIT Margin	22.9		%	23.3		%			22.7		%	22.3		%
Provision for income taxes	$	185.1		$	183.9		1	%	$	348.2		$	340.6		2	%
Adjustments:
Gain on sale of assets (d)	—			(0.1)					—			(0.1)
Transformation initiatives (d)	0.8			2.3					1.0			2.1
Excess capacity severance charges (d)	0.1			—					0.7			—
Adjusted provision for income taxes	$	186.0		$	186.1		—	%	$	349.9		$	342.6		2	%
Adjusted effective tax rate (e)	22.2		%	22.0		%			21.8		%	21.6		%
Net earnings	$	647.5		$	651.6		(1)	%	$	1,249.6		$	1,234.0		1	%
Adjustments:
Gain on sale of assets	—			(0.2)					—			(0.2)
Income tax provision on gain on sale of assets (d)	—			0.1					—			0.1
Transformation initiatives (b)	3.3			9.1					4.1			8.6
Income tax benefit for transformation initiatives (d)	(0.8)			(2.3)					(1.0)			(2.1)
Excess capacity severance charges (c)	0.5			—					2.9			—
Income tax benefit for excess capacity severance charges (d)	(0.1)			—					(0.7)			—
Adjusted net earnings	$	650.4		$	658.3		(1)	%	$	1,254.9		$	1,240.4		1	%
Diluted EPS	$	1.51		$	1.50		1	%	$	2.91		$	2.84		2	%
Adjustments:
Gain on sale of assets	—			—					—			—
Transformation initiatives (b) (d)	0.01			0.02					0.01			0.01
Excess capacity severance charges (c) (d)	—			—					0.01			—
Adjusted diluted EPS	$	1.52		$	1.52		—	%	$	2.92		$	2.86		2	%

(a) We include the interest income earned on investments associated with our client funds extended investment strategy and interest expense on borrowings related to our client funds extended investment strategy as we believe these amounts to be fundamental to the underlying operations of our business model. The adjustments in the table above represent the interest income and interest expense that are not related to our client funds extended investment strategy and are labeled as “All other interest expense” and “All other interest income.”

(b) In the three months ended December 31, 2020, transformation initiatives include charges related to impairment charges of operating right-of-use assets and certain related fixed assets associated with the vacating of certain leased locations (“lease asset impairment”) and net charges related to other transformation initiatives, including severance. In the six months ended December 31, 2020, transformation initiatives include charges related to impairment charges as a result of recognizing certain owned facilities at fair value given intent to sell and accordingly classified as held for sale and lease asset impairment charges partially offset by net reversals of charges related to other transformation initiatives, including severance. Unlike other

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severance charges which are not included as an adjustment to get to adjusted results, these specific charges relate to actions taken as part of our broad-based, company-wide transformation initiative.

(c) Represents net severance cost related to excess capacity. Unlike certain other severance charges in prior periods that are not included as an adjustment to get to adjusted results, these specific charges relate to actions that are part of our broad-based, company-wide initiatives to address excess capacity across our business and functions.

(d) The income tax (benefit)/ provision was calculated based on the annualized marginal rate in effect during the quarter of the adjustment.

(e) The Adjusted effective tax rate is calculated as our Adjusted provision for income taxes divided by the sum of our Adjusted net earnings plus our Adjusted provision for income taxes.

The following table reconciles our reported growth rates to the non-GAAP measure of organic constant currency, which excludes the impact of acquisitions, the impact of dispositions, and the impact of foreign currency. The impact of acquisitions and dispositions is calculated by excluding the current year revenues of acquisitions until the one-year anniversary of the transaction and by excluding the prior year revenues of divestitures for the one-year period preceding the transaction. The impact of foreign currency is determined by calculating the current year result using foreign exchange rates consistent with the prior year. The PEO segment is not impacted by acquisitions, dispositions or foreign currency.

	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2020		2020
Consolidated revenue growth as reported	1	%	—	%
Adjustments:
Impact of acquisitions	—	%	—	%
Impact of foreign currency	(1)	%	—	%
Consolidated revenue growth, organic constant currency	—	%	—	%
Employer Services revenue growth as reported	(1)	%	(2)	%
Adjustments:
Impact of acquisitions	—	%	—	%
Impact of foreign currency	-1	%	—	%
Employer Services revenue growth, organic constant currency	(2)	%	(2)	%

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2020, cash and cash equivalents were $1.6 billion, which were primarily invested in time deposits and money market funds.

For corporate liquidity, we expect existing cash, cash equivalents, short-term marketable securities, cash flow from operations together with our $9.7 billion of committed credit facilities and our ability to access both long-term and short-term debt financing from the capital markets will be adequate to meet our operating, investing, and financing activities such as regular quarterly dividends, share repurchases, and capital expenditures for the foreseeable future. Our financial condition remains solid at December 31, 2020 and we have sufficient liquidity as noted above; however, given the continuing uncertainty in the rapidly changing market and economic conditions related to the COVID-19 pandemic, we will continue to evaluate the nature and extent of the impact to our financial condition and liquidity.

For client funds liquidity, we have the ability to borrow through our financing arrangements under our U.S. short-term commercial paper program and our U.S., Canadian and United Kingdom short-term reverse repurchase agreements, together with our $9.7 billion of committed credit facilities and our ability to use corporate liquidity when necessary to meet short-term funding requirements related to client funds obligations. Please see “Quantitative and Qualitative Disclosures about Market Risk” for a further discussion of the risks, including with respect to the COVID-19 pandemic, related to our client funds extended investment strategy. See Note 9 of our Consolidated Financial Statements for a description of our short-term financing including commercial paper.

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Operating, Investing and Financing Cash Flows

Our cash flows from operating, investing, and financing activities, as reflected in the Statements of Consolidated Cash Flows for the six months ended December 31, 2020 and 2019, respectively, are summarized as follows:

	Six Months Ended
	December 31,
	2020		2019		$ Change
Cash provided by / (used in):
Operating activities	$	1,188.3	$	1,130.9	$	57.4
Investing activities	(949.6)		(124.9)		(824.7)
Financing activities	8,751.5		5,525.1		3,226.4
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents	84.7		(12.2)		96.9
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents	$	9,074.9	$	6,518.9	$	2,556.0

Net cash flows provided by operating activities increased due to growth in our business supplemented by net favorable change in the components of working capital as compared to the six months ended December 31, 2019.

Net cash flows from investing activities changed due to the timing of proceeds and purchases of corporate and client funds marketable securities of $842.2 million, lower payments related to acquisitions of intangibles and payments related to capital expenditures partially offset by lower proceeds from the sale of assets in the six months ended December 31, 2020.

Net cash flows from financing activities changed due to a net increase in the cash flow from client funds obligations of $2,942.7 million, which is due to the timing of impounds from our clients and payments to our clients' employees and other payees, proceeds from debt issuance, a net repayment of reverse repurchase agreements and less cash paid for share repurchases. These were partially offset by payments of debt, more cash returned to shareholders via dividends, and settlement of cash flow hedges in the six months ended December 31, 2020.

We purchased approximately 3.2 million shares of our common stock at an average price per share of $149.39 during the six months ended December 31, 2020, as compared to purchases of 3.7 million shares at an average price per share of $164.99 during the six months ended December 31, 2019. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions.

Capital Resources and Client Funds Obligations

We have $2.0 billion of senior unsecured notes with maturity dates in 2025 and 2030. We may from time to time revisit the long-term debt market to refinance existing debt, finance investments including acquisitions for our growth, and maintain the appropriate capital structure. However, there can be no assurance that volatility in the global capital and credit markets would not impair our ability to access these markets on terms acceptable to us, or at all. See Note 10 of our Consolidated Financial Statements for a description of our long-term financing.

Our U.S. short-term funding requirements related to client funds are sometimes obtained on an unsecured basis through the issuance of commercial paper, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. This commercial paper program provides for the issuance of up to $9.7 billion in aggregate maturity value. Our commercial paper program is rated A-1+ by Standard & Poor’s, Prime-1 (“P-1”) by Moody’s and F1+ by Fitch. These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from overnight to up to 364 days. At December 31, 2020 and June 30, 2020, the Company had no commercial paper borrowing outstanding. Details of the borrowings under the commercial paper program are as follows:

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	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Average daily borrowings (in billions)	$	1.8		$	3.5		$	2.1		$	3.7
Weighted average interest rates	0.1		%	1.7		%	0.1		%	2.0		%
Weighted average maturity (approximately in days)	1 day			2 days			1 day			2 days

Our U.S., Canadian, and United Kingdom short-term funding requirements related to client funds obligations are sometimes obtained on a secured basis through the use of reverse repurchase agreements, which are collateralized principally by government and government agency securities, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. These agreements generally have terms ranging from overnight to up to five business days. We have successfully borrowed through the use of reverse repurchase agreements on an as-needed basis to meet short-term funding requirements related to client funds obligations. At December 31, 2020, there were no outstanding obligations related to reverse repurchase agreements. At June 30, 2020, the Company had $13.6 million of outstanding obligations related to the reverse repurchase agreements. Details of the reverse repurchase agreements are as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Average outstanding balances	$	83.2		$	335.9		$	117.8		$	381.2
Weighted average interest rates	0.3		%	1.7		%	0.3		%	1.8		%

We vary the maturities of our committed credit facilities to limit the refinancing risk of any one facility. We have a $3.2 billion, 364-day credit agreement that matures in June 2021 with a one year term-out option. In addition, we have a five-year $2.75 billion credit facility and a five-year $3.75 billion credit facility maturing in June 2024 and June 2023, respectively, each with an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary. We had no borrowings through December 31, 2020 under the credit facilities. We believe that we currently meet all conditions set forth in the revolving credit agreements to borrow thereunder and we are not aware of any conditions that would prevent us from borrowing part or all of the $9.7 billion available to us under the revolving credit agreements. See Note 9 of our Consolidated Financial Statements for a description of our short-term financing including credit facilities.

Our investment portfolio does not contain any asset-backed securities with underlying collateral of sub-prime mortgages, alternative-A mortgages, sub-prime auto loans or sub-prime home equity loans, collateralized debt obligations, collateralized loan obligations, credit default swaps, derivatives, auction rate securities, structured investment vehicles or non-investment grade fixed-income securities. We own AAA-rated senior tranches of primarily fixed rate auto loan, credit card, equipment lease, and rate reduction receivables, secured predominantly by prime collateral. All collateral on asset-backed securities has performed as expected through December 31, 2020. In addition, we own senior, unsecured, non-callable debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks. Our client funds investment strategy is structured to allow us to average our way through an interest rate cycle by laddering the maturities of our investments out to five years (in the case of the extended portfolio) and out to ten years (in the case of the long portfolio). This investment strategy is supported by our short-term financing arrangements necessary to satisfy short-term funding requirements relating to client funds obligations. See Note 6 of our Consolidated Financial Statements for a description of our corporate investments and funds held for clients.

Capital expenditures for the six months ended December 31, 2020 were $79.7 million, as compared to $94.1 million for the six months ended December 31, 2019. We expect capital expenditures in fiscal 2021 to be between $150 million and $175 million, as compared to $168.3 million in fiscal 2020.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our overall investment portfolio is comprised of corporate investments (cash and cash equivalents, short-term marketable securities) and client funds assets (funds that have been collected from clients but have not yet been remitted to the applicable tax authorities or client employees).

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Our corporate investments are invested in cash and cash equivalents and highly liquid, investment-grade marketable securities.  These assets are available for our regular quarterly dividends, share repurchases, capital expenditures and/or acquisitions, as well as other corporate operating purposes. All of our short-term fixed-income securities are classified as available-for-sale securities.

Our client funds assets are invested with safety of principal, liquidity, and diversification as the primary objectives. Consistent with those objectives, we also seek to maximize interest income and to minimize the volatility of interest income.  Client funds assets are invested in highly liquid, investment-grade marketable securities, with a maximum maturity of 10 years at the time of purchase, and money market securities and other cash equivalents.  

We utilize a strategy by which we extend the maturities of our investment portfolio for funds held for clients and employ short-term financing arrangements to satisfy our short-term funding requirements related to client funds obligations. Our client funds investment strategy is structured to allow us to average our way through an interest rate cycle by laddering the maturities of our investments out to five years (in the case of the extended portfolio) and out to ten years (in the case of the long portfolio). As part of our client funds investment strategy, we use the daily collection of funds from our clients to satisfy other unrelated client funds obligations, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. In circumstances where we experience a reduction in employment levels due to a slowdown in the economy, we may make tactical decisions to sell certain securities in order to reduce the size of the funds held for clients to correspond to client funds obligations. We minimize the risk of not having funds collected from a client available at the time such client’s obligation becomes due by impounding, in virtually all instances, the client’s funds in advance of the timing of payment of such client’s obligation. As a result of this practice, we have consistently maintained the required level of client funds assets to satisfy all of our obligations.

There are inherent risks and uncertainties involving our investment strategy relating to our client funds assets. Such risks include liquidity risk, including the risk associated with our ability to liquidate, if necessary, our available-for-sale securities in a timely manner in order to satisfy our client funds obligations. However, our investments are made with the safety of principal, liquidity, and diversification as the primary goals to minimize the risk of not having sufficient funds to satisfy all of our client funds obligations. We also believe we have significantly reduced the risk of not having sufficient funds to satisfy our client funds obligations by consistently maintaining access to other sources of liquidity, including our corporate cash balances, available borrowings under our $9.7 billion commercial paper program (rated A-1+ by Standard and Poor’s, P-1 by Moody’s, and F1+ by Fitch, the highest possible short-term credit ratings), and our ability to engage in reverse repurchase agreement transactions and available borrowings under our $9.7 billion committed credit facilities. The reduced availability of financing during periods of economic turmoil, including the COVID-19 pandemic, even to borrowers with the highest credit ratings, may limit our ability to access short-term debt markets to meet the liquidity needs of our business. In addition to liquidity risk, our investments are subject to interest rate risk and credit risk, as discussed below.

We have established credit quality, maturity, and exposure limits for our investments. The minimum allowed credit rating at time of purchase for corporate, Canadian government agency and Canadian provincial bonds is BBB, for asset-backed securities is AAA, and for municipal bonds is A. The maximum maturity at time of purchase for BBB-rated securities is 5 years, for single A rated securities is 7 years, and for AA-rated and AAA-rated securities is 10 years. Time deposits and commercial paper must be rated A-1 and/or P-1. Money market funds must be rated AAA/Aaa-mf.

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Details regarding our overall investment portfolio are as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Average investment balances at cost:
Corporate investments	$	3,504.5		$	5,142.0		$	3,869.5		$	5,598.5
Funds held for clients	25,109.5			25,051.7			23,540.2			24,366.6
Total	$	28,614.0		$	30,193.7		$	27,409.7		$	29,965.1
Average interest rates earned exclusive of realized (gains)/losses on:
Corporate investments	1.2		%	2.0		%	1.3		%	2.1		%
Funds held for clients	1.7		%	2.2		%	1.8		%	2.2		%
Total	1.6		%	2.2		%	1.7		%	2.2		%
Net realized (gains)/losses on available-for-sale securities	$	(7.7)		$	(7.1)		$	(8.0)		$	(9.4)

	December 31, 2020		June 30, 2020
Net unrealized pre-tax gains on available-for-sale securities	$	800.1	$	876.8
Total available-for-sale securities at fair value	$	22,350.5	$	21,576.6

We are exposed to interest rate risk in relation to securities that mature, as the proceeds from maturing securities are reinvested. Factors that influence the earnings impact of interest rate changes include, among others, the amount of invested funds and the overall portfolio mix between short-term and long-term investments. This mix varies during the fiscal year and is impacted by daily interest rate changes. The annualized interest rate earned on our entire portfolio decreased from 2.2% for the six months ended December 31, 2019 to 1.7% for the six months ended December 31, 2020. A hypothetical change in both short-term interest rates (e.g., overnight interest rates or the federal funds rate) and intermediate-term interest rates of 25 basis points applied to the estimated average investment balances and any related short-term borrowings would result in approximately a $21 million impact to earnings before income taxes over the ensuing twelve-month period ending December 31, 2021. A hypothetical change in only short-term interest rates of 25 basis points applied to the estimated average short-term investment balances and any related short-term borrowings would result in approximately a $6 million impact to earnings before income taxes over the ensuing twelve-month period ending December 31, 2021.

We are exposed to credit risk in connection with our available-for-sale securities through the possible inability of the borrowers to meet the terms of the securities.  We limit credit risk by investing in investment-grade securities, primarily AAA-rated and AA- rated securities, as rated by Moody’s, Standard & Poor’s, DBRS for Canadian dollar denominated securities, and Fitch for asset-backed and commercial-mortgage-backed securities. Approximately 77% of our available-for-sale securities held a AAA-rating or AA-rating at December 31, 2020. In addition, we limit amounts that can be invested in any security other than U.S. government and government agency, Canadian government, and United Kingdom government securities.

We operate and transact business in various foreign jurisdictions and are therefore exposed to market risk from changes in foreign currency exchange rates that could impact our consolidated results of operations, financial position, or cash flows. We manage our exposure to these market risks through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. We may use derivative financial instruments as risk management tools and not for trading purposes.

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CRITICAL ACCOUNTING POLICIES

Our Consolidated Financial Statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).  The preparation of these financial statements requires management to make estimates, judgments, and assumptions that affect reported amounts of assets, liabilities, revenues, expenses, and other comprehensive income.  We continually evaluate the accounting policies and estimates used to prepare the Consolidated Financial Statements.  The estimates are based on historical experience and assumptions believed to be reasonable under current facts and circumstances.  Actual amounts and results could differ from these estimates made by management. In addition, as the duration and severity of the COVID-19 pandemic are uncertain, certain of our estimates could require further judgment or modification and therefore carry a higher degree of variability and volatility. As events continue to evolve, our estimates may change materially in future periods. Refer to Note 2 of our Consolidated Financial Statements for changes to our accounting policies effective for the fiscal 2021.

NEW ACCOUNTING PRONOUNCEMENTS

See Note 2, New Accounting Pronouncements, of Notes to the Consolidated Financial Statements for a discussion of recent accounting pronouncements.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The information called for by this item is provided under the caption “Quantitative and Qualitative Disclosures about Market Risk” under Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations.

Item 4.  Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of the Company's management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “evaluation”).  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.  Based on the evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures were effective as of December 31, 2020 in ensuring that (i) information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure and (ii) such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

There was no change in the Company's internal control over financial reporting that occurred during the three months ended December 31, 2020 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II.  OTHER INFORMATION

Except as noted below, all other items are either inapplicable or would result in negative responses and, therefore, have been omitted.

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Item 1.  Legal Proceedings

In the normal course of business, the Company is subject to various claims and litigation.  While the outcome of any litigation is inherently unpredictable, the Company believes it has valid defenses with respect to the legal matters pending against it and the Company believes that the ultimate resolution of these matters will not have a material adverse impact on its financial condition, results of operations, or cash flows.

With respect to the disclosure of administrative or judicial proceedings arising under any Federal, State, or local provisions regulating the discharge of materials into the environment or that are primarily for the purpose of protecting the environment, the Company has determined that the following threshold is reasonably designed to result in disclosure of any such proceeding that is material to its business or financial condition: any proceeding when the potential monetary sanctions exceed $1 million.

Item 1A.  Risk Factors

There have been no material changes in our risk factors disclosed in Part 1, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended June 30, 2020.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

Issuer Purchases of Equity Securities

	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of the Publicly Announced Common Stock Repurchase Plan (2)	Maximum Approximate Dollar Value of Shares that may yet be Purchased under the Common Stock Repurchase Plan (2)
Period
October 1 to 31, 2020	612,071	$	146.77	609,713	$	4,148,324,224
November 1 to 30, 2020	470,964	$	170.80	468,369	$	4,068,334,335
December 1 to 31, 2020	504,313	$	174.84	503,385	$	3,980,325,850
Total	1,587,348			1,581,467

(1)  During the three months ended December 31, 2020, pursuant to the terms of our restricted stock program, the Company purchased 5,881 shares at the then-market value of the shares to satisfy certain tax withholding requirements for employees upon the vesting of their restricted shares.

(2)  The Company received the Board of Directors' approval to repurchase the shares of our common stock included in the table above as follows:

Date of Approval
November 2019	$5 billion

There is no expiration date for the common stock repurchase authorization.

42

Item 6.  Exhibits

Exhibit Number	Exhibit
31.1	Certification by Carlos A. Rodriguez pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
31.2	Certification by Kathleen A. Winters pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
32.1	Certification by Carlos A. Rodriguez pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification by Kathleen A. Winters pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.LAB	Inline XBRL Taxonomy Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
101.DEF	Inline XBRL Taxonomy Extension Definition Document
104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

43

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		AUTOMATIC DATA PROCESSING, INC. (Registrant)
Date:	February 1, 2021	/s/ Kathleen A. Winters Kathleen A. Winters
		Chief Financial Officer (Title)

44

EX-31.1

EXHIBIT 31.1

Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934

I, Carlos A. Rodriguez, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Automatic Data Processing, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	February 1, 2021	/s/ Carlos A. Rodriguez
		Carlos A. Rodriguez
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934

I, Kathleen A. Winters, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Automatic Data Processing, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	February 1, 2021	/s/ Kathleen A. Winters
		Kathleen A. Winters
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Automatic Data Processing, Inc. (the "Company") on Form 10-Q for the fiscal quarter ended December 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Carlos A. Rodriguez, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date:	February 1, 2021	/s/ Carlos A. Rodriguez
		Carlos A. Rodriguez
		President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Automatic Data Processing, Inc. (the "Company") on Form 10-Q for the fiscal quarter ended December 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kathleen A. Winters, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date:	February 1, 2021	/s/ Kathleen A. Winters
		Kathleen A. Winters
		Chief Financial Officer

XML

Cover page - shares	6 Months Ended
	Dec. 31, 2020	Jan. 27, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	1-5397
Entity Registrant Name	AUTOMATIC DATA PROCESSING, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-1467904
Entity Address, Address Line One	One ADP Boulevard
Entity Address, City or Town	Roseland,
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07068
City Area Code	973
Local Phone Number	974-5000
Title of 12(b) Security	Common Stock, $0.10 Par Value(voting)
Trading Symbol	ADP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		427,940,220
Entity Central Index Key	0000008670
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Statements of Consolidated Earnings - USD ($) shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
REVENUES:
Revenues		$ 3,695.7	$ 3,669.5	$ 7,166.5	$ 7,165.2
Costs of revenues:
Operating expenses		1,847.8	1,836.0	3,610.0	3,623.6
Systems development and programming costs		174.5	168.7	343.2	336.9
Depreciation and amortization		100.1	89.4	203.6	178.3
TOTAL COSTS OF REVENUES		2,122.4	2,094.1	4,156.8	4,138.8
Selling, general, and administrative expenses		755.8	754.3	1,436.9	1,480.9
Interest expense		13.9	31.6	29.0	71.5
TOTAL EXPENSES		2,892.1	2,880.0	5,622.7	5,691.2
Other (income)/expense, net		(29.0)	(46.0)	(54.0)	(100.6)
EARNINGS BEFORE INCOME TAXES		832.6	835.5	1,597.8	1,574.6
Provision for income taxes		185.1	183.9	348.2	340.6
NET EARNINGS		$ 647.5	$ 651.6	$ 1,249.6	$ 1,234.0
BASIC EARNINGS PER SHARE (in US$ per share)		$ 1.51	$ 1.51	$ 2.92	$ 2.86
DILUTED EARNINGS PER SHARE (in US$ per share)		$ 1.51	$ 1.50	$ 2.91	$ 2.84
Basic weighted average shares outstanding (shares)		427.4	431.5	428.0	432.1
Diluted weighted average shares outstanding (shares)		429.0	433.3	429.5	434.3
Revenues, other than interest on funds held for clients and PEO revenues
REVENUES:
Revenues		$ 2,405.2	$ 2,398.4	$ 4,674.9	$ 4,704.7
Interest on funds held for clients
REVENUES:
Revenues		105.4	137.7	211.9	271.5
PEO Revenues
REVENUES:
Revenues	[1]	$ 1,185.1	$ 1,133.4	$ 2,279.7	$ 2,189.0

[1] Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $13,349.1 million and $12,371.6 million for the three months ended December 31, 2020 and 2019, respectively, and $24,364.9 million and $22,882.2 million for the six months ended December 31, 2020 and 2019, respectively.

XML

Statements of Consolidated Earnings (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Direct pass-through costs PEO revenues	$ 13,349.1	$ 12,371.6	$ 24,364.9	$ 22,882.2

XML

Statements of Consolidated Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 647.5	$ 651.6	$ 1,249.6	$ 1,234.0
Other comprehensive income/(loss):
Currency translation adjustments	61.9	34.3	112.3	(14.6)
Unrealized net (losses)/gains on available-for-sale securities	(44.1)	(35.5)	(68.7)	60.6
Tax effect	10.0	7.5	15.5	(13.3)
Reclassification of net (gains)/losses on available-for-sale securities to net earnings	(7.7)	(7.1)	(8.0)	(9.4)
Tax effect	1.7	1.6	1.8	2.1
Unrealized (losses)/gains on cash flow hedging activities	0.0	0.7	(3.3)	0.7
Tax effect	0.0	(0.2)	0.8	(0.2)
Amortization of unrealized losses on cash flow hedging activities	1.1	0.0	1.7	0.0
Tax effect	(0.4)	0.0	(0.4)	0.0
Reclassification of pension liability adjustment to net earnings	2.5	1.9	5.0	0.2
Tax effect	(0.6)	(0.5)	(1.6)	0.0
Other comprehensive income, net of tax	24.4	2.7	55.1	26.1
Comprehensive income	$ 671.9	$ 654.3	$ 1,304.7	$ 1,260.1

XML

Consolidated Balance Sheets - USD ($)		Dec. 31, 2020	Jun. 30, 2020
Current assets:
Cash and cash equivalents		$ 1,602,200,000	$ 1,908,500,000
Accounts receivable, net of allowance for doubtful accounts of $86.3 and $92.5, respectively		2,509,800,000	2,441,300,000
Other current assets		684,100,000	506,200,000
Total current assets before funds held for clients		4,796,100,000	4,856,000,000.0
Funds held for clients		36,866,200,000	26,708,100,000
Total current assets		41,662,300,000	31,564,100,000
Long-term receivables, net of allowance for doubtful accounts of $0.6 and $0.5, respectively		15,300,000	18,600,000
Property, plant and equipment, net		692,700,000	703,900,000
Operating lease right-of-use asset		501,100,000	493,700,000
Deferred contract costs		2,417,200,000	2,401,600,000
Other assets		483,500,000	458,400,000
Goodwill		2,346,600,000	2,309,400,000
Intangible assets, net		1,207,200,000	1,215,800,000
Total assets		49,325,900,000	39,165,500,000
Current liabilities:
Accounts payable		113,900,000	102,000,000.0
Accrued expenses and other current liabilities		1,778,100,000	1,980,700,000
Accrued payroll and payroll-related expenses		587,400,000	557,000,000.0
Dividends payable		394,400,000	387,300,000
Short-term deferred revenues		207,700,000	212,500,000
Obligations under reverse repurchase agreements	[1]	0	13,600,000
Short-term debt		0	1,001,800,000
Income taxes payable		28,900,000	40,100,000
Total current liabilities before client funds obligations		3,110,400,000	4,295,000,000.0
Client funds obligations		36,066,100,000	25,831,600,000
Total current liabilities		39,176,500,000	30,126,600,000
Long-term debt		1,994,100,000	1,002,800,000
Operating lease liabilities		357,400,000	344,400,000
Other liabilities		812,500,000	837,000,000.0
Deferred income taxes		711,500,000	731,900,000
Long-term deferred revenues		373,900,000	370,600,000
Total liabilities		43,425,900,000	33,413,300,000
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, $1.00 par value: authorized, 0.3 shares; issued, none		0	0
Common stock, $0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at December 31, 2020 and June 30, 2020; outstanding, 428.1 and 429.9 shares at December 31, 2020 and June 30, 2020, respectively		63,900,000	63,900,000
Capital in excess of par value		1,407,600,000	1,333,800,000
Retained earnings		18,893,600,000	18,436,300,000
Treasury stock - at cost: 210.6 and 208.9 shares at December 31, 2020 and June 30, 2020, respectively		(14,505,400,000)	(14,067,000,000.0)
Accumulated other comprehensive income (loss)		40,300,000	(14,800,000)
Total stockholders’ equity		5,900,000,000.0	5,752,200,000
Total liabilities and stockholders’ equity		$ 49,325,900,000	$ 39,165,500,000

[1] As of June 30, 2020, $13.6 million of long-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements (see Note 9).

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2020	Jun. 30, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts - trade receivables - Current	$ 86.3	$ 92.5
Allowance for doubtful accounts - trade receivables - Long-term	$ 0.6	$ 0.5
Preferred stock, par value (in US$ per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized (in shares)	300,000	300,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in US$ per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	1,000,000,000.0	1,000,000,000.0
Common stock, shares issued (in shares)	638,700,000	638,700,000
Common stock, shares outstanding (in shares)	428,100,000	429,900,000
Treasury stock, (in shares)	210,600,000	208,900,000
Long-term marketable securities under reverse repurchase agreements		$ 13.6

XML

Statements of Consolidated Cash Flows - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash Flows from Operating Activities:
Net earnings	$ 1,249.6	$ 1,234.0
Adjustments to reconcile net earnings to cash flows provided by operating activities:
Depreciation and amortization	257.8	234.9
Amortization of deferred contract costs	464.9	456.0
Deferred income taxes	1.3	44.1
Stock-based compensation expense	80.9	73.3
Net pension income	(22.0)	(0.4)
Net amortization of premiums and accretion of discounts on available-for-sale securities	28.7	26.3
Impairment of assets	5.0	0.0
Gain on sale of assets	(1.8)	(2.1)
Other	2.4	6.5
Changes in operating assets and liabilities:
Increase in accounts receivable	(86.5)	(198.8)
Increase in other assets	(643.3)	(605.4)
Increase in accounts payable	10.2	12.3
Decrease in accrued expenses and other liabilities	(158.9)	(149.8)
Net cash flows provided by operating activities	1,188.3	1,130.9
Cash Flows from Investing Activities:
Purchases of corporate and client funds marketable securities	(3,554.8)	(2,875.3)
Proceeds from the sales and maturities of corporate and client funds marketable securities	2,832.5	2,995.2
Capital expenditures	(81.0)	(100.7)
Additions to intangibles	(148.1)	(167.7)
Proceeds from sale of property, plant, and equipment and other assets	1.8	23.6
Net cash flows used in investing activities	(949.6)	(124.9)
Cash Flows from Financing Activities:
Net increase in client funds obligations	10,036.4	7,093.7
Payments of debt	(1,001.1)	(1.1)
Proceeds from the issuance of debt	991.1	0.0
Settlement of cash flow hedges	(43.6)	0.0
Repurchases of common stock	(475.1)	(615.1)
Net proceeds from stock purchase plan and stock-based compensation plans	39.1	(4.4)
Dividends paid	(781.7)	(686.0)
Net payments related to reverse repurchase agreements	(13.6)	(262.0)
Net cash flows provided by financing activities	8,751.5	5,525.1
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents	84.7	(12.2)
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents	9,074.9	6,518.9
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	7,053.6	6,796.2
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	16,128.5	13,315.1
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	16,128.5	13,315.1
Supplemental disclosures of cash flow information:
Cash paid for interest	28.1	70.6
Cash paid for income taxes, net of income tax refunds	$ 362.7	$ 350.4

XML

Basis of Presentation

6 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).  The Consolidated Financial Statements and footnotes thereto are unaudited.  In the opinion of the Company’s management, the Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, that are necessary for a fair presentation of the Company’s interim financial results.

The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees.  The Company is the sole beneficial owner of the trust.  The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”).  The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and, therefore, consolidates the trust.  Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 6, “Corporate Investments and Funds Held for Clients.” 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, expenses, and accumulated other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Interim financial results are not necessarily indicative of financial results for a full year.  The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 (“fiscal 2020”).

Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's

presentation.

XML

New Accounting Pronouncements

6 Months Ended

Dec. 31, 2020

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Effective July 1, 2020, the Company adopted accounting standard update (“ASU”) 2018-13, “Fair Value Measurement.” The update modifies the disclosure requirements on fair value measurements. The adoption of ASU 2018-13 modified the disclosures in Note 6 but did not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.

Effective July 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This update introduces the current expected credit loss (“CECL”) model, which requires an entity to measure credit losses based on expected losses rather than incurred losses for certain financial instruments and financial assets, including trade receivables. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated results of operations, financial condition, or cash flows.

Recently Issued Accounting Pronouncements

The following table summarizes recent ASU's issued by the Financial Accounting Standards Board (“FASB”) which have been assessed and are applicable to the Company:

Standard	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2018-14 Compensation-Retirement Benefits-Defined Benefit Plans	This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amendments in ASU 2018-14 would need to be applied on a retrospective basis.	July 1, 2021 (Fiscal 2022)	The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.

XML

Revenue

6 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three strategic pillars: Human Capital Management (“HCM”), HR Outsourcing (“HRO”), and Global (“Global”) Solutions, with separate disaggregation for PEO zero-margin benefits pass-through revenues and client funds interest revenues. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors.

The following tables provide details of revenue by our strategic pillars, and include a reconciliation to the Company’s reportable segments:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
Types of Revenues	2020		2019		2020		2019
HCM	$	1,624.8	$	1,647.9	$	3,155.4	$	3,216.5
HRO, excluding PEO zero-margin benefits pass-throughs	668.7		650.1		1,251.1		1,241.2
PEO zero-margin benefits pass-throughs	765.9		722.4		1,507.0		1,421.5
Global	530.9		511.4		1,041.1		1,014.5
Interest on funds held for clients	105.4		137.7		211.9		271.5
Total Revenues	$	3,695.7	$	3,669.5	$	7,166.5	$	7,165.2

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2020:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	1,625.2	$	—	$	(0.4)	$	1,624.8
HRO, excluding PEO zero-margin benefits pass-throughs	250.1		419.2		(0.6)		668.7
PEO zero-margin benefits pass-throughs	—		765.9		—		765.9
Global	530.9		—		—		530.9
Interest on funds held for clients	104.4		1.0		—		105.4
Total Segment Revenues	$	2,510.6	$	1,186.1	$	(1.0)	$	3,695.7

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2019:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	1,649.8	$	—	$	(1.9)	$	1,647.9
HRO, excluding PEO zero-margin benefits pass-throughs	239.9		411.0		(0.8)		650.1
PEO zero-margin benefits pass-throughs	—		722.4		—		722.4
Global	511.4		—		—		511.4
Interest on funds held for clients	136.4		1.3		—		137.7
Total Segment Revenues	$	2,537.5	$	1,134.7	$	(2.7)	$	3,669.5

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2020:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	3,157.4	$	—	$	(2.0)	$	3,155.4
HRO, excluding PEO zero-margin benefits pass-throughs	479.3		772.7		(0.9)		1,251.1
PEO zero-margin benefits pass-throughs	—		1,507.0		—		1,507.0
Global	1,041.1		—		—		1,041.1
Interest on funds held for clients	209.6		2.3		—		211.9
Total Segment Revenues	$	4,887.4	$	2,282.0	$	(2.9)	$	7,166.5

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2019:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	3,219.8	$	—	$	(3.3)	$	3,216.5
HRO, excluding PEO zero-margin benefits pass-throughs	475.6		767.5		(1.9)		1,241.2
PEO zero-margin benefits pass-throughs	—		1,421.5		—		1,421.5
Global	1,014.5		—		—		1,014.5
Interest on funds held for clients	269.0		2.5		—		271.5
Total Segment Revenues	$	4,978.9	$	2,191.5	$	(5.2)	$	7,165.2

Contract Balances

The timing of revenue recognition for HCM, HRO and Global Solutions is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.

Changes in deferred revenue related to set up fees for the six months ended December 31, 2020 were as follows:

Contract Liability
Contract liability, July 1, 2020	$	522.7
Recognition of revenue included in beginning of year contract liability	(85.8)
Contract liability, net of revenue recognized on contracts during the period	64.1
Currency translation adjustments	20.6
Contract liability, December 31, 2020	$	521.6

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Earnings per Share (EPS)

6 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings per Share (EPS)

Earnings per Share (“EPS”)

	Basic		Effect of Employee Stock Option Shares	Effect of Employee Restricted Stock Shares	Diluted
Three Months Ended December 31, 2020
Net earnings	$	647.5			$	647.5
Weighted average shares (in millions)	427.4		0.7	0.9	429.0
EPS	$	1.51			$	1.51
Three Months Ended December 31, 2019
Net earnings	$	651.6			$	651.6
Weighted average shares (in millions)	431.5		1.1	0.7	433.3
EPS	$	1.51			$	1.50
Six Months Ended December 31, 2020
Net earnings	$	1,249.6			$	1,249.6
Weighted average shares (in millions)	428.0		0.7	0.8	429.5
EPS	$	2.92			$	2.91
Six Months Ended December 31, 2019
Net earnings	$	1,234.0			$	1,234.0
Weighted average shares (in millions)	432.1		1.1	1.1	434.3
EPS	$	2.86			$	2.84

Options to purchase 1.2 million and 1.3 million shares of common stock for the three months ended December 31, 2020 and 2019, respectively, and 1.8 million and 1.0 million shares of common stock for the six months ended December 31, 2020 and 2019, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

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Other (Income)/Expense, Net

6 Months Ended

Dec. 31, 2020

Other Income and Expenses [Abstract]

Other (Income)/Expense, Net

Other (Income)/Expense, Net

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Interest income on corporate funds	$	(10.4)	$	(25.7)	$	(24.3)	$	(58.0)
Realized (gains) / losses on available-for-sale securities, net	(7.7)		(7.1)		(8.0)		(9.4)
Impairment of assets	2.2		—		5.0		—
Gain on sale of assets	(1.6)		(0.2)		(1.8)		(2.1)
Non-service components of pension income, net (see Note 11)	(11.5)		(13.0)		(24.9)		(31.1)
Other (income)/expense, net	$	(29.0)	$	(46.0)	$	(54.0)	$	(100.6)

Other (income)/expense, net, decreased for the three and six months ended December 31, 2020 primarily as a result of a decrease in interest income on corporate funds due to lower interest rates earned.

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Corporate Investments and Funds Held For Clients

6 Months Ended

Dec. 31, 2020

Corporate Investments And Funds Held For Clients [Abstract]

Corporate Investments and Funds Held For Clients

Corporate Investments and Funds Held for Clients

Corporate investments and funds held for clients at December 31, 2020 and June 30, 2020 were as follows:

	December 31, 2020
	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized Losses		Fair Market Value (A)
Type of issue:
Money market securities, cash and other cash equivalents	$	16,128.5	$	—	$	—	$	16,128.5
Available-for-sale securities:
Corporate bonds	10,266.6		439.7		(0.9)		10,705.4
Asset-backed securities	2,741.5		87.3		—		2,828.8
U.S. Treasury securities	3,609.3		93.8		(0.1)		3,703.0
U.S. government agency securities	1,403.4		30.4		(0.9)		1,432.9
Canadian government obligations and Canadian government agency obligations	1,084.9		21.8		(0.1)		1,106.6
Commercial mortgage-backed securities	805.8		54.6		—		860.4
Canadian provincial bonds	713.9		34.5		(0.1)		748.3
Other securities	925.0		40.2		(0.1)		965.1
Total available-for-sale securities	21,550.4		802.3		(2.2)		22,350.5
Total corporate investments and funds held for clients	$	37,678.9	$	802.3	$	(2.2)	$	38,479.0

(A) Included within available-for-sale securities are corporate investments with fair values of $10.6 million and funds held for clients with fair values of $22,339.9 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.

	June 30, 2020
	Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value (B)
Type of issue:
Money market securities, cash and other cash equivalents	$	7,053.6	$	—	$	—	$	7,053.6
Available-for-sale securities:
Corporate bonds	9,188.7		473.4		—		9,662.1
Asset-backed securities	3,274.6		96.0		(0.5)		3,370.1
U.S. Treasury securities	3,580.6		120.8		—		3,701.4
U.S. government agency securities	1,128.2		35.6		—		1,163.8
Canadian government obligations and Canadian government agency obligations	1,018.7		23.1		—		1,041.8
Commercial mortgage-backed securities	814.3		53.9		—		868.2
Canadian provincial bonds	676.6		33.6		—		710.2
Other securities	1,018.1		41.1		(0.2)		1,059.0
Total available-for-sale securities	20,699.8		877.5		(0.7)		21,576.6
Total corporate investments and funds held for clients	$	27,753.4	$	877.5	$	(0.7)	$	28,630.2

(B) Included within available-for-sale securities are corporate investments with fair values of $13.6 million and funds held for clients with fair values of $21,563.0 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.

For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2020. The Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company had no available-for-sale securities included in Level 1 or Level 3 at December 31, 2020.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2020, are as follows: 

	December 31, 2020
	Securities in Unrealized Loss Position Less Than 12 Months				Securities in Unrealized Loss Position Greater Than 12 Months				Total
	Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value
Corporate bonds	$	(0.9)	$	379.3	$	—	$	—	$	(0.9)	$	379.3
Asset-backed securities	—		3.2		—		—		—		3.2
U.S. Treasury securities	(0.1)		14.1		—		—		(0.1)		14.1
U.S. government agency securities	(0.9)		348.6		—		—		(0.9)		348.6
Canadian government obligations and Canadian government agency obligations	(0.1)		68.1		—		—		(0.1)		68.1
Commercial mortgage-backed securities	—		—		—		1.4		—		1.4
Canadian provincial bonds	(0.1)		45.7		—		—		(0.1)		45.7
Other securities	(0.1)		28.2		—		—		(0.1)		28.2
	$	(2.2)	$	887.2	$	—	$	1.4	$	(2.2)	$	888.6

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2020, are as follows:

	June 30, 2020
	Securities in Unrealized Loss Position Less Than 12 Months				Securities in Unrealized Loss Position Greater Than 12 Months				Total
	Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value
Corporate bonds	$	—	$	—	$	—	$	—	$	—	$	—
Asset-backed securities	(0.5)		43.9		—		—		(0.5)		43.9
U.S. Treasury securities	—		2.0		—		—		—		2.0
U.S. government agency securities	—		—		—		—		—		—
Canadian government obligations and Canadian government agency obligations	—		—		—		—		—		—
Commercial mortgage-backed securities	—		—		—		1.5		—		1.5
Canadian provincial bonds	—		—		—		—		—		—
Other securities	(0.2)		17.1		—		—		(0.2)		17.1
	$	(0.7)	$	63.0	$	—	$	1.5	$	(0.7)	$	64.5

At December 31, 2020, Corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carry credit ratings of A and above, and have maturities ranging from January 2021 through October 2030.

At December 31, 2020, asset-backed securities include AAA-rated senior tranches of securities with predominantly prime collateral of fixed-rate auto loan, credit card, equipment lease, and rate reduction receivables with fair values of $1,478.7 million, $965.8 million, $302.8 million, and $80.8 million, respectively. These securities are collateralized by the cash flows of the underlying pools of receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through December 31, 2020.

At December 31, 2020, U.S. government agency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $679.4 million and $584.7 million, respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's, and AA+ by Standard & Poor's, with maturities ranging from January 2021 through November 2030.

At December 31, 2020, U.S government agency commercial mortgage-backed securities of $860.4 million include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.

At December 31, 2020, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair values of $560.7 million and AA-rated United Kingdom Gilt securities of $208.3 million.

Classification of corporate investments on the Consolidated Balance Sheets is as follows:

	December 31,		June 30,
	2020		2020
Corporate investments:
Cash and cash equivalents	$	1,602.2	$	1,908.5
Short-term marketable securities (a)	10.6		—
Long-term marketable securities (b)	—		13.6
Total corporate investments	$	1,612.8	$	1,922.1

(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets.

(b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets.

Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets.

Funds held for clients have been invested in the following categories:

	December 31,		June 30,
	2020		2020
Funds held for clients:
Restricted cash and cash equivalents held to satisfy client funds obligations	$	14,526.3	$	5,145.1
Restricted short-term marketable securities held to satisfy client funds obligations	4,768.3		5,541.2
Restricted long-term marketable securities held to satisfy client funds obligations	17,571.6		16,021.8
Total funds held for clients	$	36,866.2	$	26,708.1

Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax, and other payee payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling $36,066.1 million and $25,831.6 million at December 31, 2020 and June 30, 2020, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purpose of satisfying the client funds obligations. Of the Company’s funds held for clients at December 31, 2020 and June 30, 2020, $33,706.4 million and $23,740.0 million, respectively, are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and are eliminated in consolidation.

The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows. The Company has reported the cash and cash equivalents related to client funds investments with original maturities of ninety days or less, within the beginning and ending balances of cash, cash equivalents, restricted cash, and restricted cash equivalents. These amounts have been reconciled to the Consolidated Balance Sheets on the Statements of Consolidated Cash Flows. The Company has reported the cash flows related to the cash

received from and paid on behalf of clients on a net basis within net increase / (decrease) in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows.

Approximately 77% of the available-for-sale securities held a AAA-rating or AA-rating at December 31, 2020, as rated by Moody's, Standard & Poor's, DBRS for Canadian dollar-denominated securities, and Fitch for asset-backed and commercial mortgage-backed securities.  All available-for-sale securities were rated as investment grade at December 31, 2020.

Expected maturities of available-for-sale securities at December 31, 2020 are as follows:

One year or less	$	4,778.9
One year to two years	4,561.0
Two years to three years	3,524.7
Three years to four years	2,670.6
After four years	6,815.3
Total available-for-sale securities	$	22,350.5

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Leases

6 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Leases

The Company records leases on the consolidated balance sheets as operating lease right-of-use (“ROU”) assets, records the current portion of operating lease liabilities within accrued expenses and other current liabilities and, separately, records long-term operating lease liabilities. The difference between total ROU assets and total lease liabilities are primarily attributable to pre-payments of our obligations and the recognition of various lease incentives.

The Company has entered into operating lease agreements for facilities and equipment. The Company's leases have remaining lease terms of up to approximately eleven years.

The components of operating lease expense were as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Operating lease cost	$	40.0	$	42.3	$	79.1	$	86.5
Short-term lease cost	0.3		1.2		0.7		3.9
Variable lease cost	2.2		0.7		4.3		2.0
Total operating lease cost	$	42.5	$	44.2	$	84.1	$	92.4

The following table provides supplemental cash flow information related to the Company's leases:

	Six Months Ended
	December 31,
	2020		2019
Cash paid for operating lease liabilities	$	77.0	$	75.8
Operating lease ROU assets obtained in exchange for new operating lease liabilities	$	72.0	$	17.4

Other information related to our operating lease liabilities is as follows:

	December 31,			June 30,
	2020			2020
Weighted-average remaining lease term (in years)	6			6
Weighted-average discount rate	2.1		%	2.3		%
Current operating lease liability	$	97.4		$	95.5

As of December 31, 2020, maturities of operating lease liabilities are as follows:

Six months ending June 30, 2021	$	52.9
Twelve months ending June 30, 2022	100.5
Twelve months ending June 30, 2023	87.8
Twelve months ending June 30, 2024	65.0
Twelve months ending June 30, 2025	48.5
Thereafter	130.0
Total undiscounted lease obligations	484.7
Less: Imputed interest	(29.9)
Net lease obligations	$	454.8

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Goodwill and Intangible Assets, net

6 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles Assets, net

Goodwill and Intangible Assets, net

Changes in goodwill for the six months ended December 31, 2020 are as follows:

	Employer Services		PEO Services		Total
Balance at June 30, 2020	$	2,304.6	$	4.8	$	2,309.4
Additions and other adjustments	—		—		—
Currency translation adjustments	37.2		—		37.2
Balance at December 31, 2020	$	2,341.8	$	4.8	$	2,346.6

Components of intangible assets, net, are as follows:

	December 31,		June 30,
	2020		2020
Intangible assets:
Software and software licenses	$	2,831.3	$	2,719.1
Customer contracts and lists	1,038.9		1,021.2
Other intangibles	239.2		239.2
	4,109.4		3,979.5
Less accumulated amortization:
Software and software licenses	(1,995.6)		(1,912.0)
Customer contracts and lists	(680.8)		(628.3)
Other intangibles	(225.8)		(223.4)
	(2,902.2)		(2,763.7)
Intangible assets, net	$	1,207.2	$	1,215.8

Other intangibles consist primarily of purchased rights, trademarks and trade names (acquired directly or through acquisitions).  All intangible assets have finite lives and, as such, are subject to amortization.  The weighted average remaining useful life of the intangible assets is 6 years (6 years for software and software licenses, 5 years for customer contracts and lists, and 3 years for other intangibles).  Amortization of intangible assets was $80.8 million and $69.7 million for the three months ended December 31, 2020 and 2019, respectively, and $165.0 million and $139.1 million for the six months ended December 31, 2020 and 2019, respectively.

Estimated future amortization expenses of the Company's existing intangible assets are as follows:

	Amount
Six months ending June 30, 2021	$	157.0
Twelve months ending June 30, 2022	$	270.2
Twelve months ending June 30, 2023	$	224.9
Twelve months ending June 30, 2024	$	176.7
Twelve months ending June 30, 2025	$	122.8
Twelve months ending June 30, 2026	$	72.6

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Short-term Financing

6 Months Ended

Dec. 31, 2020

Short-Term Financing [Abstract]

Short-term Financing

Short-term Financing

The Company has a $3.2 billion, 364-day credit agreement that matures in June 2021 with a one year term-out option.  The Company also has a $2.75 billion five year credit facility that matures in June 2024 that contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. In addition, the Company has a five year $3.75 billion credit facility maturing in June 2023 that also contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. The interest rate applicable to committed borrowings is tied to LIBOR, the effective federal funds rate, or the prime rate, depending on the notification provided by the Company to the syndicated financial institutions prior to borrowing. The Company is also required to pay facility fees on the credit agreements. The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary. The Company had no borrowings through December 31, 2020 under the credit agreements.

The Company's U.S. short-term funding requirements related to client funds are sometimes obtained on an unsecured basis through the issuance of commercial paper, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. This commercial paper program provides for the issuance of up to $9.7 billion in aggregate maturity value. The Company’s commercial paper program is rated A-1+ by Standard & Poor’s, Prime-1 (“P-1”) by Moody’s and F1+ by Fitch. These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from overnight to up to 364 days. At December 31, 2020 and June 30, 2020, the Company had no commercial paper borrowing outstanding. Details of the borrowings under the commercial paper program are as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Average daily borrowings (in billions)	$	1.8		$	3.5		$	2.1		$	3.7
Weighted average interest rates	0.1		%	1.7		%	0.1		%	2.0		%
Weighted average maturity (approximately in days)	1 day			2 days			1 day			2 days

The Company’s U.S., Canadian and United Kingdom short-term funding requirements related to client funds obligations are sometimes obtained on a secured basis through the use of reverse repurchase agreements, which are collateralized principally by government and government agency securities, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. These agreements generally have terms ranging from overnight to up to five business days. At December 31, 2020, there were no outstanding obligations related to reverse repurchase agreements. At June 30, 2020, the Company had $13.6 million of outstanding obligations related to the reverse repurchase agreements. Details of the reverse repurchase agreements are as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Average outstanding balances	$	83.2		$	335.9		$	117.8		$	381.2
Weighted average interest rates	0.3		%	1.7		%	0.3		%	1.8		%

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Debt

6 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Debt

Debt

The Company has two series of fixed-rate notes with 10-year, staggered maturities for an aggregate principal amount of $2.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually.

During the three months ended September 30, 2020, the Company issued $1.0 billion of senior notes due in 2030 bearing a fixed interest rate of 1.25%. The Company also redeemed $1.0 billion of senior notes bearing a fixed interest rate of 2.25%. In connection with the senior notes issuance, the Company also terminated several derivative contracts in place to hedge exposure in changes in benchmark interest rates for the senior notes issued with an aggregate notional amount totaling $1.0 billion (of which $400.0 million were entered into during fiscal year 2020 and $600.0 million were entered into on the day of issuance). Since these derivative contracts were classified as cash flow hedges, the unamortized loss of $43.6 million was deferred in accumulated other comprehensive income and will be amortized to earnings over the life of the Notes as the interest payments are made.

The principal amounts and associated effective interest rates of the Notes and other debt as of December 31, 2020 and June 30, 2020, are as follows:

Debt instrument	Effective Interest Rate	December 31, 2020		June 30, 2020
Fixed-rate 2.250% notes due September 15, 2020	2.37%	$	—	$	1,000.0
Fixed-rate 3.375% notes due September 15, 2025	3.47%	1,000.0		1,000.0
Fixed-rate 1.250% notes due September 1, 2030	1.83%	1,000.0		—
Other		7.6		8.4
		2,007.6		2,008.4
Less: current portion (a)		(1.4)		(1,001.8)
Less: unamortized discount and debt issuance costs		(12.1)		(3.8)
Total long-term debt		$	1,994.1	$	1,002.8

(a) - Current portion of long-term debt as of December 31, 2020 is included within Accrued expenses and other current liabilities on the Consolidated Balance Sheets.

The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs.

As of December 31, 2020, the fair value of the Notes, based on Level 2 inputs, was $2,120.6 million. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2020.

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Employee Benefit Plans

6 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit PlansStock-based Compensation Plans. Stock-based compensation consists of the following:

The Company's share-based compensation consists of stock options, time-based restricted stock, time-based restricted stock

units, performance-based restricted stock, and performance-based restricted stock units. The Company also offers an employee

stock purchase plan for eligible employees.

The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. The Company repurchased 1.6 million and 1.8 million shares in the three months ended December 31, 2020 and 2019, respectively, and repurchased 3.2 million and 3.7 million shares in the six months ended December 31, 2020 and 2019, respectively. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions.

The following table represents pre-tax stock-based compensation expense for the three and six months ended December 31, 2020 and 2019, respectively:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Operating expenses	$	4.8	$	3.4	$	8.4	$	7.4
Selling, general and administrative expenses	35.6		28.0		60.9		56.3
System development and programming costs	6.7		4.8		11.6		9.6
Total stock-based compensation expense	$	47.1	$	36.2	$	80.9	$	73.3

The methods and assumptions used in the determination of the fair value of stock-based awards are consistent with those

described in the Company's Annual Report on Form 10-K for fiscal 2020. See the Company's Annual Report on Form 10-K for fiscal 2020 for a detailed description of the Company's stock-based compensation awards and employee stock purchase plan, including information related to vesting terms, service and performance conditions, payout percentages, and process for estimating the fair value of stock options granted.

B.  Pension Plans

The components of net pension income were as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Service cost – benefits earned during the period	$	1.2	$	14.9	$	2.4	$	29.9
Interest cost on projected benefits	12.8		15.4		25.5		30.9
Expected return on plan assets	(30.4)		(29.5)		(60.7)		(59.0)
Net amortization and deferral	2.5		1.5		5.0		2.9
Settlement charges and special termination benefits	2.9		—		5.8		(5.1)
Net pension (income)/expense	$	(11.0)	$	2.3	$	(22.0)	$	(0.4)

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Income Taxes

6 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three months ended December 31, 2020 and 2019 was 22.2% and 22.0%, respectively. The increase in the effective tax rate is primarily due to the benefit from a valuation allowance release related to foreign tax credit carryforwards in the three months ended December 31, 2019, partially offset by the benefits from a foreign tax election in the three months ended December 31, 2020.

The effective tax rate for the six months ended December 31, 2020 and 2019 was 21.8% and 21.6%, respectively. The increase in the effective tax rate is primarily due to the benefit from a valuation allowance release related to foreign tax credits carryforwards in the six months ended December 31, 2019 and a decrease in the excess tax benefit on stock-based compensation partially offset by favorable adjustments to prior year tax liabilities and the benefits from a foreign tax election in the six months ended December 31, 2020.

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Commitments and Contingencies

6 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

In June 2018, a potential class action complaint was filed against the Company in the Circuit Court of Cook County, Illinois asserting that ADP violated the Illinois Biometric Privacy Act in connection with its collection, use and storage of biometric data of employees of its clients who are residents of Illinois. In addition, similar potential class action complaints have been filed in Illinois state courts against ADP and/or certain of its clients with respect to the collection, use and storage of biometric data of the employees of these clients. In June 2020, the Company reached a settlement of all outstanding claims against it for $25.0 million, subject to the court's final approval. The Company does not expect that any of the remaining cases against its clients will result in any material liabilities to the Company.

In May 2020, two potential class action complaints were filed against ADP, TotalSource and related defendants in the U.S. District Court, District of New Jersey. The complaints assert violations of the Employee Retirement Income Security Act of

1974 (“ERISA”) in connection with the ADP TotalSource Retirement Savings Plan’s fiduciary administrative and investment decision-making. The complaints seek statutory and other unspecified monetary damages, injunctive relief and attorney’s fees. These claims are still in their earliest stages and the Company is unable to estimate any reasonably possible loss, or range of loss, with respect to these matters. The Company intends to vigorously defend against these lawsuits.

The Company is subject to various claims, litigation, and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. Management currently believes that the resolution of these claims, litigation and regulatory compliance matters against us, individually or in the aggregate, will not have a material adverse impact on our consolidated results of operations, financial condition or cash flows. These matters are subject to inherent uncertainties and management's view of these matters may change in the future.

It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material losses related to such representations and warranties.

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Stockholders' Equity

6 Months Ended

Dec. 31, 2020

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity

Stockholders' Equity

Changes in stockholders' equity by component are as follows:

	Three Months Ended
	December 31, 2020
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at September 30, 2020	$	63.9	$	1,348.4	$	18,644.7	$	(14,264.0)	$	15.9	$	5,808.9
Net earnings	—		—		647.5		—		—		647.5
Other comprehensive income	—		—		—		—		24.4		24.4
Stock-based compensation expense	—		40.6		—		—		—		40.6
Issuances relating to stock compensation plans	—		18.6		—		17.7		—		36.3
Treasury stock acquired (1.6 million shares repurchased)	—		—		—		(259.1)		—		(259.1)
Dividends declared ($0.93 per share)	—		—		(398.6)		—		—		(398.6)
Balance at December 31, 2020	$	63.9	$	1,407.6	$	18,893.6	$	(14,505.4)	$	40.3	$	5,900.0

	Three Months Ended
	December 31, 2019
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at September 30, 2019	$	63.9	$	1,213.7	$	17,729.6	$	(13,412.6)	$	(233.9)	$	5,360.7
Net earnings	—		—		651.6		—		—		651.6
Other comprehensive income	—		—		—		—		2.7		2.7
Stock-based compensation expense	—		31.3		—		—		—		31.3
Issuances relating to stock compensation plans	—		8.7		—		14.5		—		23.2
Treasury stock acquired (1.8 million shares repurchased)	—		—		—		(311.5)		—		(311.5)
Dividends declared ($0.91 per share)	—		—		(393.6)		—		—		(393.6)
Balance at December 31, 2019	$	63.9	$	1,253.7	$	17,987.6	$	(13,709.6)	$	(231.2)	$	5,364.4

	Six Months Ended
	December 31, 2020
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at June 30, 2020	$	63.9	$	1,333.8	$	18,436.3	$	(14,067.0)	$	(14.8)	$	5,752.2
Net earnings	—		—		1,249.6		—		—		1,249.6
Other comprehensive income	—		—		—		—		55.1		55.1
Stock-based compensation expense	—		75.7		—		—		—		75.7
Issuances relating to stock compensation plans	—		(1.9)		—		83.0		—		81.1
Treasury stock acquired (3.2 million shares repurchased)	—		—		—		(521.4)		—		(521.4)
Dividends declared ($1.84 per share)	—		—		(792.3)		—		—		(792.3)
Balance at December 31, 2020	$	63.9	$	1,407.6	$	18,893.6	$	(14,505.4)	$	40.3	$	5,900.0

	Six Months Ended
	December 31, 2019
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at June 30, 2019	$	63.9	$	1,183.2	$	17,500.6	$	(13,090.5)	$	(257.3)	$	5,399.9
Net earnings	—		—		1,234.0		—		—		1,234.0
Other comprehensive income	—		—		—		—		26.1		26.1
Stock-based compensation expense	—		67.3		—		—		—		67.3
Issuances relating to stock compensation plans	—		3.2		—		84.9		—		88.1
Treasury stock acquired (3.7 million shares repurchased)	—		—		—		(704.0)		—		(704.0)
Dividends declared ($1.70 per share)	—		—		(740.2)		—		—		(740.2)
Other	—		—		(6.8)		—		—		(6.8)
Balance at December 31, 2019	$	63.9	$	1,253.7	$	17,987.6	$	(13,709.6)	$	(231.2)	$	5,364.4

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Reclassifications out of Accumulated Other Comprehensive Income (AOCI)

6 Months Ended

Dec. 31, 2020

Reclassification out of Accumulated Other Comprehensive Income [Abstract]

Reclassifications out of Accumulated Other Comprehensive Income (AOCI)

Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”)

Changes in AOCI by component are as follows:

	Three Months Ended
	December 31, 2020
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities			Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at September 30, 2020	$	(271.8)	$	661.1		$	(32.2)		$	(341.2)		$	15.9
Other comprehensive (loss)/income before reclassification adjustments	61.9		(44.1)			—			—			17.8
Tax effect	—		10.0			—			—			10.0
Reclassification adjustments to net earnings	—		(7.7)		(A)	1.1		(C)	2.5		(B)	(4.1)
Tax effect	—		1.7			(0.4)			(0.6)			0.7
Balance at December 31, 2020	$	(209.9)	$	621.0		$	(31.5)		$	(339.3)		$	40.3

	Three Months Ended
	December 31, 2019
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities		Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at September 30, 2019	$	(318.1)	$	298.1		$	—	$	(213.9)		$	(233.9)
Other comprehensive (loss)/income before reclassification adjustments	34.3		(35.5)			0.7		—			(0.5)
Tax effect	—		7.5			(0.2)		—			7.3
Reclassification adjustments to net earnings	—		(7.1)		(A)	—		1.9		(B)	(5.2)
Tax effect	—		1.6			—		(0.5)			1.1
Balance at December 31, 2019	$	(283.8)	$	264.6		$	0.5	$	(212.5)		$	(231.2)

	Six Months Ended
	December 31, 2020
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities			Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at June 30, 2020	$	(322.2)	$	680.4		$	(30.3)		$	(342.7)		$	(14.8)
Other comprehensive (loss)/income before reclassification adjustments	112.3		(68.7)			(3.3)			—			40.3
Tax effect	—		15.5			0.8			—			16.3
Reclassification adjustments to net earnings	—		(8.0)		(A)	1.7		(C)	5.0		(B)	(1.3)
Tax effect	—		1.8			(0.4)			(1.6)			(0.2)
Balance at December 31, 2020	$	(209.9)	$	621.0		$	(31.5)		$	(339.3)		$	40.3

	Six Months Ended
	December 31, 2019
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities		Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at June 30, 2019	$	(269.2)	$	224.6		$	—	$	(212.7)		$	(257.3)
Other comprehensive (loss)/income before reclassification adjustments	(14.6)		60.6			0.7		—			46.7
Tax effect	—		(13.3)			(0.2)		—			(13.5)
Reclassification adjustments to net earnings	—		(9.4)		(A)	—		0.2		(B)	(9.2)
Tax effect	—		2.1			—		—			2.1
Balance at December 31, 2019	$	(283.8)	$	264.6		$	0.5	$	(212.5)		$	(231.2)

(A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings.

(B) Reclassification adjustments out of AOCI are included in net pension (income)/expense (see Note 11).

(C) Reclassification adjustments out of AOCI are included in Interest expense on the Statements of Consolidated Earnings (see Note 10).

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Interim Financial Data by Segment

6 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Interim Financial Data by Segment

Interim Financial Data by Segment

Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. The primary components of the “Other” segment are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and interest expense. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility. The Company made changes to the allocation methodology for certain corporate allocations, in both the current period and the prior period in the table below, which did not materially affect reportable segment results.

Segment Results:

	Revenues
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Employer Services	$	2,510.6	$	2,537.5	$	4,887.4	$	4,978.9
PEO Services	1,186.1		1,134.7		2,282.0		2,191.5
Other	(1.0)		(2.7)		(2.9)		(5.2)
	$	3,695.7	$	3,669.5	$	7,166.5	$	7,165.2

	Earnings before Income Taxes
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Employer Services	$	758.6	$	766.3	$	1,447.8	$	1,445.7
PEO Services	187.4		168.0		346.8		317.3
Other	(113.4)		(98.8)		(196.8)		(188.4)
	$	832.6	$	835.5	$	1,597.8	$	1,574.6

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New Accounting Pronouncements (Policies)

6 Months Ended

Dec. 31, 2020

Accounting Standards Update and Change in Accounting Principle [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).  The Consolidated Financial Statements and footnotes thereto are unaudited.  In the opinion of the Company’s management, the Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, that are necessary for a fair presentation of the Company’s interim financial results.

The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees.  The Company is the sole beneficial owner of the trust.  The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”).  The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and, therefore, consolidates the trust.  Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 6, “Corporate Investments and Funds Held for Clients.” 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, expenses, and accumulated other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Interim financial results are not necessarily indicative of financial results for a full year.  The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 (“fiscal 2020”).

Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's

presentation.

New Accounting Pronouncements

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Effective July 1, 2020, the Company adopted accounting standard update (“ASU”) 2018-13, “Fair Value Measurement.” The update modifies the disclosure requirements on fair value measurements. The adoption of ASU 2018-13 modified the disclosures in Note 6 but did not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.

Effective July 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This update introduces the current expected credit loss (“CECL”) model, which requires an entity to measure credit losses based on expected losses rather than incurred losses for certain financial instruments and financial assets, including trade receivables. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated results of operations, financial condition, or cash flows.

Recently Issued Accounting Pronouncements

The following table summarizes recent ASU's issued by the Financial Accounting Standards Board (“FASB”) which have been assessed and are applicable to the Company:

Standard	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2018-14 Compensation-Retirement Benefits-Defined Benefit Plans	This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amendments in ASU 2018-14 would need to be applied on a retrospective basis.	July 1, 2021 (Fiscal 2022)	The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.

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New Accounting Pronouncements (Tables)

6 Months Ended

Dec. 31, 2020

Accounting Standards Update and Change in Accounting Principle [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Recently Issued Accounting Pronouncements

The following table summarizes recent ASU's issued by the Financial Accounting Standards Board (“FASB”) which have been assessed and are applicable to the Company:

Standard	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2018-14 Compensation-Retirement Benefits-Defined Benefit Plans	This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amendments in ASU 2018-14 would need to be applied on a retrospective basis.	July 1, 2021 (Fiscal 2022)	The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.

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Revenue (Tables)

6 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables provide details of revenue by our strategic pillars, and include a reconciliation to the Company’s reportable segments:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
Types of Revenues	2020		2019		2020		2019
HCM	$	1,624.8	$	1,647.9	$	3,155.4	$	3,216.5
HRO, excluding PEO zero-margin benefits pass-throughs	668.7		650.1		1,251.1		1,241.2
PEO zero-margin benefits pass-throughs	765.9		722.4		1,507.0		1,421.5
Global	530.9		511.4		1,041.1		1,014.5
Interest on funds held for clients	105.4		137.7		211.9		271.5
Total Revenues	$	3,695.7	$	3,669.5	$	7,166.5	$	7,165.2

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2020:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	1,625.2	$	—	$	(0.4)	$	1,624.8
HRO, excluding PEO zero-margin benefits pass-throughs	250.1		419.2		(0.6)		668.7
PEO zero-margin benefits pass-throughs	—		765.9		—		765.9
Global	530.9		—		—		530.9
Interest on funds held for clients	104.4		1.0		—		105.4
Total Segment Revenues	$	2,510.6	$	1,186.1	$	(1.0)	$	3,695.7

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2019:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	1,649.8	$	—	$	(1.9)	$	1,647.9
HRO, excluding PEO zero-margin benefits pass-throughs	239.9		411.0		(0.8)		650.1
PEO zero-margin benefits pass-throughs	—		722.4		—		722.4
Global	511.4		—		—		511.4
Interest on funds held for clients	136.4		1.3		—		137.7
Total Segment Revenues	$	2,537.5	$	1,134.7	$	(2.7)	$	3,669.5

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2020:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	3,157.4	$	—	$	(2.0)	$	3,155.4
HRO, excluding PEO zero-margin benefits pass-throughs	479.3		772.7		(0.9)		1,251.1
PEO zero-margin benefits pass-throughs	—		1,507.0		—		1,507.0
Global	1,041.1		—		—		1,041.1
Interest on funds held for clients	209.6		2.3		—		211.9
Total Segment Revenues	$	4,887.4	$	2,282.0	$	(2.9)	$	7,166.5

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2019:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	3,219.8	$	—	$	(3.3)	$	3,216.5
HRO, excluding PEO zero-margin benefits pass-throughs	475.6		767.5		(1.9)		1,241.2
PEO zero-margin benefits pass-throughs	—		1,421.5		—		1,421.5
Global	1,014.5		—		—		1,014.5
Interest on funds held for clients	269.0		2.5		—		271.5
Total Segment Revenues	$	4,978.9	$	2,191.5	$	(5.2)	$	7,165.2

Contract with Customer, Liability

Changes in deferred revenue related to set up fees for the six months ended December 31, 2020 were as follows:

Contract Liability
Contract liability, July 1, 2020	$	522.7
Recognition of revenue included in beginning of year contract liability	(85.8)
Contract liability, net of revenue recognized on contracts during the period	64.1
Currency translation adjustments	20.6
Contract liability, December 31, 2020	$	521.6

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Earnings per Share (EPS) (Tables)

6 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

	Basic		Effect of Employee Stock Option Shares	Effect of Employee Restricted Stock Shares	Diluted
Three Months Ended December 31, 2020
Net earnings	$	647.5			$	647.5
Weighted average shares (in millions)	427.4		0.7	0.9	429.0
EPS	$	1.51			$	1.51
Three Months Ended December 31, 2019
Net earnings	$	651.6			$	651.6
Weighted average shares (in millions)	431.5		1.1	0.7	433.3
EPS	$	1.51			$	1.50
Six Months Ended December 31, 2020
Net earnings	$	1,249.6			$	1,249.6
Weighted average shares (in millions)	428.0		0.7	0.8	429.5
EPS	$	2.92			$	2.91
Six Months Ended December 31, 2019
Net earnings	$	1,234.0			$	1,234.0
Weighted average shares (in millions)	432.1		1.1	1.1	434.3
EPS	$	2.86			$	2.84

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Other (Income)/Expense, Net (Tables)

6 Months Ended

Dec. 31, 2020

Other Income and Expenses [Abstract]

Other (Income)/Expense, Net

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Interest income on corporate funds	$	(10.4)	$	(25.7)	$	(24.3)	$	(58.0)
Realized (gains) / losses on available-for-sale securities, net	(7.7)		(7.1)		(8.0)		(9.4)
Impairment of assets	2.2		—		5.0		—
Gain on sale of assets	(1.6)		(0.2)		(1.8)		(2.1)
Non-service components of pension income, net (see Note 11)	(11.5)		(13.0)		(24.9)		(31.1)
Other (income)/expense, net	$	(29.0)	$	(46.0)	$	(54.0)	$	(100.6)

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Corporate Investments and Funds Held For Clients (Tables)

6 Months Ended

Dec. 31, 2020

Corporate Investments And Funds Held For Clients [Abstract]

Debt Securities, Available-for-sale

Corporate investments and funds held for clients at December 31, 2020 and June 30, 2020 were as follows:

	December 31, 2020
	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized Losses		Fair Market Value (A)
Type of issue:
Money market securities, cash and other cash equivalents	$	16,128.5	$	—	$	—	$	16,128.5
Available-for-sale securities:
Corporate bonds	10,266.6		439.7		(0.9)		10,705.4
Asset-backed securities	2,741.5		87.3		—		2,828.8
U.S. Treasury securities	3,609.3		93.8		(0.1)		3,703.0
U.S. government agency securities	1,403.4		30.4		(0.9)		1,432.9
Canadian government obligations and Canadian government agency obligations	1,084.9		21.8		(0.1)		1,106.6
Commercial mortgage-backed securities	805.8		54.6		—		860.4
Canadian provincial bonds	713.9		34.5		(0.1)		748.3
Other securities	925.0		40.2		(0.1)		965.1
Total available-for-sale securities	21,550.4		802.3		(2.2)		22,350.5
Total corporate investments and funds held for clients	$	37,678.9	$	802.3	$	(2.2)	$	38,479.0

(A) Included within available-for-sale securities are corporate investments with fair values of $10.6 million and funds held for clients with fair values of $22,339.9 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.

	June 30, 2020
	Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value (B)
Type of issue:
Money market securities, cash and other cash equivalents	$	7,053.6	$	—	$	—	$	7,053.6
Available-for-sale securities:
Corporate bonds	9,188.7		473.4		—		9,662.1
Asset-backed securities	3,274.6		96.0		(0.5)		3,370.1
U.S. Treasury securities	3,580.6		120.8		—		3,701.4
U.S. government agency securities	1,128.2		35.6		—		1,163.8
Canadian government obligations and Canadian government agency obligations	1,018.7		23.1		—		1,041.8
Commercial mortgage-backed securities	814.3		53.9		—		868.2
Canadian provincial bonds	676.6		33.6		—		710.2
Other securities	1,018.1		41.1		(0.2)		1,059.0
Total available-for-sale securities	20,699.8		877.5		(0.7)		21,576.6
Total corporate investments and funds held for clients	$	27,753.4	$	877.5	$	(0.7)	$	28,630.2

(B) Included within available-for-sale securities are corporate investments with fair values of $13.6 million and funds held for clients with fair values of $21,563.0 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.

Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2020, are as follows: 

	December 31, 2020
	Securities in Unrealized Loss Position Less Than 12 Months				Securities in Unrealized Loss Position Greater Than 12 Months				Total
	Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value
Corporate bonds	$	(0.9)	$	379.3	$	—	$	—	$	(0.9)	$	379.3
Asset-backed securities	—		3.2		—		—		—		3.2
U.S. Treasury securities	(0.1)		14.1		—		—		(0.1)		14.1
U.S. government agency securities	(0.9)		348.6		—		—		(0.9)		348.6
Canadian government obligations and Canadian government agency obligations	(0.1)		68.1		—		—		(0.1)		68.1
Commercial mortgage-backed securities	—		—		—		1.4		—		1.4
Canadian provincial bonds	(0.1)		45.7		—		—		(0.1)		45.7
Other securities	(0.1)		28.2		—		—		(0.1)		28.2
	$	(2.2)	$	887.2	$	—	$	1.4	$	(2.2)	$	888.6

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2020, are as follows:

	June 30, 2020
	Securities in Unrealized Loss Position Less Than 12 Months				Securities in Unrealized Loss Position Greater Than 12 Months				Total
	Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses		Fair Market Value
Corporate bonds	$	—	$	—	$	—	$	—	$	—	$	—
Asset-backed securities	(0.5)		43.9		—		—		(0.5)		43.9
U.S. Treasury securities	—		2.0		—		—		—		2.0
U.S. government agency securities	—		—		—		—		—		—
Canadian government obligations and Canadian government agency obligations	—		—		—		—		—		—
Commercial mortgage-backed securities	—		—		—		1.5		—		1.5
Canadian provincial bonds	—		—		—		—		—		—
Other securities	(0.2)		17.1		—		—		(0.2)		17.1
	$	(0.7)	$	63.0	$	—	$	1.5	$	(0.7)	$	64.5

Classification Of Corporate Investments On The Consolidated Balance Sheets

Classification of corporate investments on the Consolidated Balance Sheets is as follows:

	December 31,		June 30,
	2020		2020
Corporate investments:
Cash and cash equivalents	$	1,602.2	$	1,908.5
Short-term marketable securities (a)	10.6		—
Long-term marketable securities (b)	—		13.6
Total corporate investments	$	1,612.8	$	1,922.1

(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets.

(b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets.

Schedule Of Investment Of Funds Held For Clients

Funds held for clients have been invested in the following categories:

	December 31,		June 30,
	2020		2020
Funds held for clients:
Restricted cash and cash equivalents held to satisfy client funds obligations	$	14,526.3	$	5,145.1
Restricted short-term marketable securities held to satisfy client funds obligations	4,768.3		5,541.2
Restricted long-term marketable securities held to satisfy client funds obligations	17,571.6		16,021.8
Total funds held for clients	$	36,866.2	$	26,708.1

Expected Maturities Of Available-For-Sale Securities

Expected maturities of available-for-sale securities at December 31, 2020 are as follows:

One year or less	$	4,778.9
One year to two years	4,561.0
Two years to three years	3,524.7
Three years to four years	2,670.6
After four years	6,815.3
Total available-for-sale securities	$	22,350.5

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Leases (Tables)

6 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of Lease Cost

The components of operating lease expense were as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Operating lease cost	$	40.0	$	42.3	$	79.1	$	86.5
Short-term lease cost	0.3		1.2		0.7		3.9
Variable lease cost	2.2		0.7		4.3		2.0
Total operating lease cost	$	42.5	$	44.2	$	84.1	$	92.4

Schedule of Operating lease ROU assets and liabilities

The following table provides supplemental cash flow information related to the Company's leases:

	Six Months Ended
	December 31,
	2020		2019
Cash paid for operating lease liabilities	$	77.0	$	75.8
Operating lease ROU assets obtained in exchange for new operating lease liabilities	$	72.0	$	17.4

Operating Lease Liabilities

Other information related to our operating lease liabilities is as follows:

	December 31,			June 30,
	2020			2020
Weighted-average remaining lease term (in years)	6			6
Weighted-average discount rate	2.1		%	2.3		%
Current operating lease liability	$	97.4		$	95.5

Schedule of Operating Lease Maturities

As of December 31, 2020, maturities of operating lease liabilities are as follows:

Six months ending June 30, 2021	$	52.9
Twelve months ending June 30, 2022	100.5
Twelve months ending June 30, 2023	87.8
Twelve months ending June 30, 2024	65.0
Twelve months ending June 30, 2025	48.5
Thereafter	130.0
Total undiscounted lease obligations	484.7
Less: Imputed interest	(29.9)
Net lease obligations	$	454.8

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Goodwill and Intangibles Assets, net (Tables)

6 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes In Goodwill

Changes in goodwill for the six months ended December 31, 2020 are as follows:

	Employer Services		PEO Services		Total
Balance at June 30, 2020	$	2,304.6	$	4.8	$	2,309.4
Additions and other adjustments	—		—		—
Currency translation adjustments	37.2		—		37.2
Balance at December 31, 2020	$	2,341.8	$	4.8	$	2,346.6

Components Of Finite-Lived Intangible Assets

Components of intangible assets, net, are as follows:

	December 31,		June 30,
	2020		2020
Intangible assets:
Software and software licenses	$	2,831.3	$	2,719.1
Customer contracts and lists	1,038.9		1,021.2
Other intangibles	239.2		239.2
	4,109.4		3,979.5
Less accumulated amortization:
Software and software licenses	(1,995.6)		(1,912.0)
Customer contracts and lists	(680.8)		(628.3)
Other intangibles	(225.8)		(223.4)
	(2,902.2)		(2,763.7)
Intangible assets, net	$	1,207.2	$	1,215.8

Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization expenses of the Company's existing intangible assets are as follows:

	Amount
Six months ending June 30, 2021	$	157.0
Twelve months ending June 30, 2022	$	270.2
Twelve months ending June 30, 2023	$	224.9
Twelve months ending June 30, 2024	$	176.7
Twelve months ending June 30, 2025	$	122.8
Twelve months ending June 30, 2026	$	72.6

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Short-term Financing (Tables)

6 Months Ended

Dec. 31, 2020

Short-Term Financing [Abstract]

Commercial Paper Program

Details of the borrowings under the commercial paper program are as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Average daily borrowings (in billions)	$	1.8		$	3.5		$	2.1		$	3.7
Weighted average interest rates	0.1		%	1.7		%	0.1		%	2.0		%
Weighted average maturity (approximately in days)	1 day			2 days			1 day			2 days

Reverse Repurchase Agreement

Details of the reverse repurchase agreements are as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Average outstanding balances	$	83.2		$	335.9		$	117.8		$	381.2
Weighted average interest rates	0.3		%	1.7		%	0.3		%	1.8		%

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Debt (Tables)

6 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long Term Debt

The principal amounts and associated effective interest rates of the Notes and other debt as of December 31, 2020 and June 30, 2020, are as follows:

Debt instrument	Effective Interest Rate	December 31, 2020		June 30, 2020
Fixed-rate 2.250% notes due September 15, 2020	2.37%	$	—	$	1,000.0
Fixed-rate 3.375% notes due September 15, 2025	3.47%	1,000.0		1,000.0
Fixed-rate 1.250% notes due September 1, 2030	1.83%	1,000.0		—
Other		7.6		8.4
		2,007.6		2,008.4
Less: current portion (a)		(1.4)		(1,001.8)
Less: unamortized discount and debt issuance costs		(12.1)		(3.8)
Total long-term debt		$	1,994.1	$	1,002.8

(a) - Current portion of long-term debt as of December 31, 2020 is included within Accrued expenses and other current liabilities on the Consolidated Balance Sheets.

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Employee Benefit Plans (Tables)

6 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Components Of Stock-Based Compensation Expense

The following table represents pre-tax stock-based compensation expense for the three and six months ended December 31, 2020 and 2019, respectively:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Operating expenses	$	4.8	$	3.4	$	8.4	$	7.4
Selling, general and administrative expenses	35.6		28.0		60.9		56.3
System development and programming costs	6.7		4.8		11.6		9.6
Total stock-based compensation expense	$	47.1	$	36.2	$	80.9	$	73.3

Schedule of Net Benefit Costs

The components of net pension income were as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Service cost – benefits earned during the period	$	1.2	$	14.9	$	2.4	$	29.9
Interest cost on projected benefits	12.8		15.4		25.5		30.9
Expected return on plan assets	(30.4)		(29.5)		(60.7)		(59.0)
Net amortization and deferral	2.5		1.5		5.0		2.9
Settlement charges and special termination benefits	2.9		—		5.8		(5.1)
Net pension (income)/expense	$	(11.0)	$	2.3	$	(22.0)	$	(0.4)

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Stockholders' Equity (Tables)

6 Months Ended

Dec. 31, 2020

Stockholders' Equity Attributable to Parent [Abstract]

Schedule of Components of Stockholders' Equity

Changes in stockholders' equity by component are as follows:

	Three Months Ended
	December 31, 2020
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at September 30, 2020	$	63.9	$	1,348.4	$	18,644.7	$	(14,264.0)	$	15.9	$	5,808.9
Net earnings	—		—		647.5		—		—		647.5
Other comprehensive income	—		—		—		—		24.4		24.4
Stock-based compensation expense	—		40.6		—		—		—		40.6
Issuances relating to stock compensation plans	—		18.6		—		17.7		—		36.3
Treasury stock acquired (1.6 million shares repurchased)	—		—		—		(259.1)		—		(259.1)
Dividends declared ($0.93 per share)	—		—		(398.6)		—		—		(398.6)
Balance at December 31, 2020	$	63.9	$	1,407.6	$	18,893.6	$	(14,505.4)	$	40.3	$	5,900.0

	Three Months Ended
	December 31, 2019
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at September 30, 2019	$	63.9	$	1,213.7	$	17,729.6	$	(13,412.6)	$	(233.9)	$	5,360.7
Net earnings	—		—		651.6		—		—		651.6
Other comprehensive income	—		—		—		—		2.7		2.7
Stock-based compensation expense	—		31.3		—		—		—		31.3
Issuances relating to stock compensation plans	—		8.7		—		14.5		—		23.2
Treasury stock acquired (1.8 million shares repurchased)	—		—		—		(311.5)		—		(311.5)
Dividends declared ($0.91 per share)	—		—		(393.6)		—		—		(393.6)
Balance at December 31, 2019	$	63.9	$	1,253.7	$	17,987.6	$	(13,709.6)	$	(231.2)	$	5,364.4

	Six Months Ended
	December 31, 2020
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at June 30, 2020	$	63.9	$	1,333.8	$	18,436.3	$	(14,067.0)	$	(14.8)	$	5,752.2
Net earnings	—		—		1,249.6		—		—		1,249.6
Other comprehensive income	—		—		—		—		55.1		55.1
Stock-based compensation expense	—		75.7		—		—		—		75.7
Issuances relating to stock compensation plans	—		(1.9)		—		83.0		—		81.1
Treasury stock acquired (3.2 million shares repurchased)	—		—		—		(521.4)		—		(521.4)
Dividends declared ($1.84 per share)	—		—		(792.3)		—		—		(792.3)
Balance at December 31, 2020	$	63.9	$	1,407.6	$	18,893.6	$	(14,505.4)	$	40.3	$	5,900.0

	Six Months Ended
	December 31, 2019
	Common Stock		Capital in Excess of Par Value		Retained Earnings		Treasury Stock		AOCI		Total
Balance at June 30, 2019	$	63.9	$	1,183.2	$	17,500.6	$	(13,090.5)	$	(257.3)	$	5,399.9
Net earnings	—		—		1,234.0		—		—		1,234.0
Other comprehensive income	—		—		—		—		26.1		26.1
Stock-based compensation expense	—		67.3		—		—		—		67.3
Issuances relating to stock compensation plans	—		3.2		—		84.9		—		88.1
Treasury stock acquired (3.7 million shares repurchased)	—		—		—		(704.0)		—		(704.0)
Dividends declared ($1.70 per share)	—		—		(740.2)		—		—		(740.2)
Other	—		—		(6.8)		—		—		(6.8)
Balance at December 31, 2019	$	63.9	$	1,253.7	$	17,987.6	$	(13,709.6)	$	(231.2)	$	5,364.4

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Reclassifications out of Accumulated Other Comprehensive Income (AOCI) (Tables)

6 Months Ended

Dec. 31, 2020

Reclassification out of Accumulated Other Comprehensive Income [Abstract]

Reclassification out of Accumulated Other Comprehensive Income

Changes in AOCI by component are as follows:

	Three Months Ended
	December 31, 2020
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities			Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at September 30, 2020	$	(271.8)	$	661.1		$	(32.2)		$	(341.2)		$	15.9
Other comprehensive (loss)/income before reclassification adjustments	61.9		(44.1)			—			—			17.8
Tax effect	—		10.0			—			—			10.0
Reclassification adjustments to net earnings	—		(7.7)		(A)	1.1		(C)	2.5		(B)	(4.1)
Tax effect	—		1.7			(0.4)			(0.6)			0.7
Balance at December 31, 2020	$	(209.9)	$	621.0		$	(31.5)		$	(339.3)		$	40.3

	Three Months Ended
	December 31, 2019
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities		Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at September 30, 2019	$	(318.1)	$	298.1		$	—	$	(213.9)		$	(233.9)
Other comprehensive (loss)/income before reclassification adjustments	34.3		(35.5)			0.7		—			(0.5)
Tax effect	—		7.5			(0.2)		—			7.3
Reclassification adjustments to net earnings	—		(7.1)		(A)	—		1.9		(B)	(5.2)
Tax effect	—		1.6			—		(0.5)			1.1
Balance at December 31, 2019	$	(283.8)	$	264.6		$	0.5	$	(212.5)		$	(231.2)

	Six Months Ended
	December 31, 2020
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities			Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at June 30, 2020	$	(322.2)	$	680.4		$	(30.3)		$	(342.7)		$	(14.8)
Other comprehensive (loss)/income before reclassification adjustments	112.3		(68.7)			(3.3)			—			40.3
Tax effect	—		15.5			0.8			—			16.3
Reclassification adjustments to net earnings	—		(8.0)		(A)	1.7		(C)	5.0		(B)	(1.3)
Tax effect	—		1.8			(0.4)			(1.6)			(0.2)
Balance at December 31, 2020	$	(209.9)	$	621.0		$	(31.5)		$	(339.3)		$	40.3

	Six Months Ended
	December 31, 2019
	Currency Translation Adjustment		Net Gains/Losses on Available-for-sale Securities			Cash Flow Hedging Activities		Pension Liability			Accumulated Other Comprehensive (Loss) /Income
Balance at June 30, 2019	$	(269.2)	$	224.6		$	—	$	(212.7)		$	(257.3)
Other comprehensive (loss)/income before reclassification adjustments	(14.6)		60.6			0.7		—			46.7
Tax effect	—		(13.3)			(0.2)		—			(13.5)
Reclassification adjustments to net earnings	—		(9.4)		(A)	—		0.2		(B)	(9.2)
Tax effect	—		2.1			—		—			2.1
Balance at December 31, 2019	$	(283.8)	$	264.6		$	0.5	$	(212.5)		$	(231.2)

(A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings.

(B) Reclassification adjustments out of AOCI are included in net pension (income)/expense (see Note 11).

(C) Reclassification adjustments out of AOCI are included in Interest expense on the Statements of Consolidated Earnings (see Note 10).

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Interim Financial Data by Segment (Tables)

6 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Segment Results:

	Revenues
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Employer Services	$	2,510.6	$	2,537.5	$	4,887.4	$	4,978.9
PEO Services	1,186.1		1,134.7		2,282.0		2,191.5
Other	(1.0)		(2.7)		(2.9)		(5.2)
	$	3,695.7	$	3,669.5	$	7,166.5	$	7,165.2

	Earnings before Income Taxes
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Employer Services	$	758.6	$	766.3	$	1,447.8	$	1,445.7
PEO Services	187.4		168.0		346.8		317.3
Other	(113.4)		(98.8)		(196.8)		(188.4)
	$	832.6	$	835.5	$	1,597.8	$	1,574.6

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Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 3,695.7	$ 3,669.5	$ 7,166.5	$ 7,165.2
Employer Services
Disaggregation of Revenue [Line Items]
Revenues	2,510.6	2,537.5	4,887.4	4,978.9
PEO Services
Disaggregation of Revenue [Line Items]
Revenues	1,186.1	1,134.7	2,282.0	2,191.5
Other
Disaggregation of Revenue [Line Items]
Revenues	(1.0)	(2.7)	(2.9)	(5.2)
HCM
Disaggregation of Revenue [Line Items]
Revenues	1,624.8	1,647.9	3,155.4	3,216.5
HCM | Employer Services
Disaggregation of Revenue [Line Items]
Revenues	1,625.2	1,649.8	3,157.4	3,219.8
HCM | PEO Services
Disaggregation of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0
HCM | Other
Disaggregation of Revenue [Line Items]
Revenues	(0.4)	(1.9)	(2.0)	(3.3)
HRO, excluding PEO zero-margin benefits pass-throughs
Disaggregation of Revenue [Line Items]
Revenues	668.7	650.1	1,251.1	1,241.2
HRO, excluding PEO zero-margin benefits pass-throughs | Employer Services
Disaggregation of Revenue [Line Items]
Revenues	250.1	239.9	479.3	475.6
HRO, excluding PEO zero-margin benefits pass-throughs | PEO Services
Disaggregation of Revenue [Line Items]
Revenues	419.2	411.0	772.7	767.5
HRO, excluding PEO zero-margin benefits pass-throughs | Other
Disaggregation of Revenue [Line Items]
Revenues	(0.6)	(0.8)	(0.9)	(1.9)
PEO zero-margin benefits pass-throughs
Disaggregation of Revenue [Line Items]
Revenues	765.9	722.4	1,507.0	1,421.5
PEO zero-margin benefits pass-throughs | Employer Services
Disaggregation of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0
PEO zero-margin benefits pass-throughs | PEO Services
Disaggregation of Revenue [Line Items]
Revenues	765.9	722.4	1,507.0	1,421.5
PEO zero-margin benefits pass-throughs | Other
Disaggregation of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0
Global
Disaggregation of Revenue [Line Items]
Revenues	530.9	511.4	1,041.1	1,014.5
Global | Employer Services
Disaggregation of Revenue [Line Items]
Revenues	530.9	511.4	1,041.1	1,014.5
Global | PEO Services
Disaggregation of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0
Global | Other
Disaggregation of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0
Interest on funds held for clients
Disaggregation of Revenue [Line Items]
Revenues	105.4	137.7	211.9	271.5
Interest on funds held for clients | Employer Services
Disaggregation of Revenue [Line Items]
Revenues	104.4	136.4	209.6	269.0
Interest on funds held for clients | PEO Services
Disaggregation of Revenue [Line Items]
Revenues	1.0	1.3	2.3	2.5
Interest on funds held for clients | Other
Disaggregation of Revenue [Line Items]
Revenues	$ 0.0	$ 0.0	$ 0.0	$ 0.0

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Revenue - Contract Liability (Details) $ in Millions	6 Months Ended
	Dec. 31, 2020 USD ($)
Change In Contract With Customer, Liability [Roll Forward]
Contract liability, July 1, 2020	$ 522.7
Recognition of revenue included in beginning of year contract liability	(85.8)
Contract liability, net of revenue recognized on contracts during the period	64.1
Currency translation adjustments	20.6
Contract liability, December 31, 2020	$ 521.6

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Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Net earnings	$ 647.5	$ 651.6	$ 1,249.6	$ 1,234.0
Basic weighted average shares outstanding (shares)	427.4	431.5	428.0	432.1
Effect of employee stock option shares (shares)	0.7	1.1	0.7	1.1
Effect of employee restricted stock shares (shares)	0.9	0.7	0.8	1.1
Diluted weighted average shares outstanding (shares)	429.0	433.3	429.5	434.3
BASIC EARNINGS PER SHARE (in US$ per share)	$ 1.51	$ 1.51	$ 2.92	$ 2.86
DILUTED EARNINGS PER SHARE (in US$ per share)	$ 1.51	$ 1.50	$ 2.91	$ 2.84
Options excluded from the calculation of diluted earnings per share (shares)	1.2	1.3	1.8	1.0

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Other (Income)/Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Other Income and Expenses [Abstract]
Interest income on corporate funds	$ (10.4)	$ (25.7)	$ (24.3)	$ (58.0)
Realized (gains) / losses on available-for-sale securities, net	(7.7)	(7.1)	(8.0)	(9.4)
Impairment of assets	2.2	0.0	5.0	0.0
Gain on sale of assets	(1.6)	(0.2)	(1.8)	(2.1)
Non-service components of pension expense, net	(11.5)	(13.0)	(24.9)	(31.1)
Other (income)/expense, net	$ (29.0)	$ (46.0)	$ (54.0)	$ (100.6)

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Other Income, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Other Income and Expenses [Abstract]
Impairment of assets	$ 2.2	$ 0.0	$ 5.0	$ 0.0

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Corporate Investments and Funds Held For Clients (Corporate Investments And Funds Held For Clients) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Money market securities, cash and other cash equivalents - amortized cost	$ 1,602.2	$ 1,908.5	$ 1,500.4
Amortized Cost	21,550.4	20,699.8
Gross Unrealized  Gains	802.3	877.5
Gross Unrealized Losses	(2.2)	(0.7)
Fair market value	22,350.5	21,576.6
Total corporate investments and funds held for clients - amortized cost	37,678.9	27,753.4
Total corporate investments and funds held for clients - gross unrealized gains	802.3	877.5
Total corporate investments and funds held for clients - gross unrealized losses	(2.2)	(0.7)
Total corporate investments and funds held for clients - fair market value	38,479.0	28,630.2
Corporate Investments
Debt Securities, Available-for-sale [Line Items]
Fair market value	10.6	13.6
Funds Held For Clients
Debt Securities, Available-for-sale [Line Items]
Fair market value	22,339.9	21,563.0
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,266.6	9,188.7
Gross Unrealized  Gains	439.7	473.4
Gross Unrealized Losses	(0.9)	0.0
Fair market value	10,705.4	9,662.1
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,741.5	3,274.6
Gross Unrealized  Gains	87.3	96.0
Gross Unrealized Losses	0.0	(0.5)
Fair market value	2,828.8	3,370.1
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,609.3	3,580.6
Gross Unrealized  Gains	93.8	120.8
Gross Unrealized Losses	(0.1)	0.0
Fair market value	3,703.0	3,701.4
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,403.4	1,128.2
Gross Unrealized  Gains	30.4	35.6
Gross Unrealized Losses	(0.9)	0.0
Fair market value	1,432.9	1,163.8
Canadian government obligations and Canadian government agency obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,084.9	1,018.7
Gross Unrealized  Gains	21.8	23.1
Gross Unrealized Losses	(0.1)	0.0
Fair market value	1,106.6	1,041.8
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	805.8	814.3
Gross Unrealized  Gains	54.6	53.9
Gross Unrealized Losses	0.0	0.0
Fair market value	860.4	868.2
Canadian provincial bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	713.9	676.6
Gross Unrealized  Gains	34.5	33.6
Gross Unrealized Losses	(0.1)	0.0
Fair market value	748.3	710.2
Other securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	925.0	1,018.1
Gross Unrealized  Gains	40.2	41.1
Gross Unrealized Losses	(0.1)	(0.2)
Fair market value	965.1	1,059.0
Money Market Funds
Debt Securities, Available-for-sale [Line Items]
Money market securities, cash and other cash equivalents - amortized cost	16,128.5	7,053.6
Money market securities and other cash equivalents - fair market value	$ 16,128.5	$ 7,053.6

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Corporate Investments and Funds Held For Clients (Available-For-Sale Securities That Have Been In An Unrealized Loss Position) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Jun. 30, 2020
Debt Securities, Available-for-sale [Line Items]
Unrealized losses less than 12 months	$ (2.2)	$ (0.7)
Fair market value of securities in unrealized loss position less than 12 months	887.2	63.0
Unrealized losses greater than 12 months	0.0	0.0
Fair market value of securities in unrealized loss positions greater than 12 months	1.4	1.5
Total gross unrealized losses	(2.2)	(0.7)
Total fair market value	888.6	64.5
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Unrealized losses less than 12 months	(0.9)	0.0
Fair market value of securities in unrealized loss position less than 12 months	379.3	0.0
Unrealized losses greater than 12 months	0.0	0.0
Fair market value of securities in unrealized loss positions greater than 12 months	0.0	0.0
Total gross unrealized losses	(0.9)	0.0
Total fair market value	379.3	0.0
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Unrealized losses less than 12 months	0.0	(0.5)
Fair market value of securities in unrealized loss position less than 12 months	3.2	43.9
Unrealized losses greater than 12 months	0.0	0.0
Fair market value of securities in unrealized loss positions greater than 12 months	0.0	0.0
Total gross unrealized losses	0.0	(0.5)
Total fair market value	3.2	43.9
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Unrealized losses less than 12 months	(0.1)	0.0
Fair market value of securities in unrealized loss position less than 12 months	14.1	2.0
Unrealized losses greater than 12 months	0.0	0.0
Fair market value of securities in unrealized loss positions greater than 12 months	0.0	0.0
Total gross unrealized losses	(0.1)	0.0
Total fair market value	14.1	2.0
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Unrealized losses less than 12 months	(0.9)	0.0
Fair market value of securities in unrealized loss position less than 12 months	348.6	0.0
Unrealized losses greater than 12 months	0.0	0.0
Fair market value of securities in unrealized loss positions greater than 12 months	0.0	0.0
Total gross unrealized losses	(0.9)	0.0
Total fair market value	348.6	0.0
Canadian government obligations and Canadian government agency obligations
Debt Securities, Available-for-sale [Line Items]
Unrealized losses less than 12 months	(0.1)	0.0
Fair market value of securities in unrealized loss position less than 12 months	68.1	0.0
Unrealized losses greater than 12 months	0.0	0.0
Fair market value of securities in unrealized loss positions greater than 12 months	0.0	0.0
Total gross unrealized losses	(0.1)	0.0
Total fair market value	68.1	0.0
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Unrealized losses less than 12 months	0.0	0.0
Fair market value of securities in unrealized loss position less than 12 months	0.0	0.0
Unrealized losses greater than 12 months	0.0	0.0
Fair market value of securities in unrealized loss positions greater than 12 months	1.4	1.5
Total gross unrealized losses	0.0	0.0
Total fair market value	1.4	1.5
Canadian provincial bonds
Debt Securities, Available-for-sale [Line Items]
Unrealized losses less than 12 months	(0.1)	0.0
Fair market value of securities in unrealized loss position less than 12 months	45.7	0.0
Unrealized losses greater than 12 months	0.0	0.0
Fair market value of securities in unrealized loss positions greater than 12 months	0.0	0.0
Total gross unrealized losses	(0.1)	0.0
Total fair market value	45.7	0.0
Other securities
Debt Securities, Available-for-sale [Line Items]
Unrealized losses less than 12 months	(0.1)	(0.2)
Fair market value of securities in unrealized loss position less than 12 months	28.2	17.1
Unrealized losses greater than 12 months	0.0	0.0
Fair market value of securities in unrealized loss positions greater than 12 months	0.0	0.0
Total gross unrealized losses	(0.1)	(0.2)
Total fair market value	$ 28.2	$ 17.1

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Corporate Investments and Funds Held For Clients (Narrative) (Details) - USD ($)	6 Months Ended
	Dec. 31, 2020	Jun. 30, 2020
Debt Securities, Available-for-sale [Line Items]
Fair market value	$ 22,350,500,000	$ 21,576,600,000
Client fund obligation repayment period	1 year
Client funds obligations	$ 36,066,100,000	25,831,600,000
Client funds held in grantor trust	$ 33,706,400,000	23,740,000,000.0
Client funds investments with original maturities	ninety days or less
Percentage of the available-for-sale securities were rated AAA Or AA	77.00%
Corporate Investments
Debt Securities, Available-for-sale [Line Items]
Fair market value	$ 10,600,000	13,600,000
Funds Held For Clients
Debt Securities, Available-for-sale [Line Items]
Fair market value	22,339,900,000	21,563,000,000.0
Fair Value, Inputs, Level 1
Debt Securities, Available-for-sale [Line Items]
Fair market value	0
Fair Value, Inputs, Level 3
Debt Securities, Available-for-sale [Line Items]
Fair market value	0
Asset-Backed Auto Loan Receivables
Debt Securities, Available-for-sale [Line Items]
Fair market value	1,478,700,000
Fixed Rate Credit Card
Debt Securities, Available-for-sale [Line Items]
Fair market value	965,800,000
Asset-Backed Equipment Lease Receivable
Debt Securities, Available-for-sale [Line Items]
Fair market value	302,800,000
Rate Reduction
Debt Securities, Available-for-sale [Line Items]
Fair market value	80,800,000
Federal Farm Credit Banks
Debt Securities, Available-for-sale [Line Items]
Fair market value	679,400,000
Federal Home Loan Banks
Debt Securities, Available-for-sale [Line Items]
Fair market value	584,700,000
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Fair market value	860,400,000	$ 868,200,000
Municipal Bonds
Debt Securities, Available-for-sale [Line Items]
Fair market value	560,700,000
Debt Security, Corporate, Non-US
Debt Securities, Available-for-sale [Line Items]
Fair market value	$ 208,300,000

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Corporate Investments and Funds Held For Clients (Classification Of Corporate Investments On The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Corporate Investments And Funds Held For Clients [Abstract]
Cash and cash equivalents	$ 1,602.2	$ 1,908.5	$ 1,500.4
Short-term marketable securities	10.6	0.0
Long-term marketable securities	0.0	13.6
Total corporate investments	$ 1,612.8	$ 1,922.1

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Corporate Investments and Funds Held For Clients (Schedule Of Investment Of Funds Held For Clients) (Details) - USD ($) $ in Millions	Dec. 31, 2020		Jun. 30, 2020	Dec. 31, 2019	[1]
Debt Securities, Available-for-sale [Line Items]
Restricted cash and cash equivalents held to satisfy client funds obligations	$ 14,526.3	[1]	$ 5,145.1	$ 11,814.7
Total funds held for clients	36,866.2		26,708.1
Current
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, restricted	4,768.3		5,541.2
Non-current
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, restricted	$ 17,571.6		$ 16,021.8

[1] See Note 6 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets.

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Corporate Investments and Funds Held For Clients (Expected Maturities Of Available-For-Sale Securities) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Jun. 30, 2020
Corporate Investments And Funds Held For Clients [Abstract]
One year or less	$ 4,778.9
One year to two years	4,561.0
Two years to three years	3,524.7
Three years to four years	2,670.6
After four years	6,815.3
Total available-for-sale securities	$ 22,350.5	$ 21,576.6

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Leases - Narrative (Details)	Dec. 31, 2020	Jun. 30, 2020
Leases [Abstract]
Operating lease, contract term	11 years
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent

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Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease cost	$ 40.0	$ 42.3	$ 79.1	$ 86.5
Short-term lease cost	0.3	1.2	0.7	3.9
Variable lease cost	2.2	0.7	4.3	2.0
Total operating lease cost	$ 42.5	$ 44.2	$ 84.1	$ 92.4

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Leases - Right of Use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020
Leases [Abstract]
Cash paid for operating lease liabilities	$ 77.0	$ 75.8
Operating lease ROU assets obtained in exchange for new operating lease liabilities	$ 72.0	$ 17.4
Weighted-average remaining lease term (in years)	6 years		6 years
Weighted-average discount rate	2.10%		2.30%
Current operating lease liability	$ 97.4		$ 95.5

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Leases - Operating Lease Maturities (Details) $ in Millions	Dec. 31, 2020 USD ($)
Leases [Abstract]
Six months ending June 30, 2021	$ 52.9
Twelve months ending June 30, 2022	100.5
Twelve months ending June 30, 2023	87.8
Twelve months ending June 30, 2024	65.0
Twelve months ending June 30, 2025	48.5
Thereafter	130.0
Total undiscounted lease obligations	484.7
Less: Imputed interest	(29.9)
Net lease obligations	$ 454.8

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Goodwill and Intangibles Assets, net - Changes In Goodwill (Details) $ in Millions	6 Months Ended
	Dec. 31, 2020 USD ($)
Goodwill [Roll Forward]
Balance at June 30, 2020	$ 2,309.4
Additions and other adjustments	0.0
Currency translation adjustments	37.2
Balance at December 31, 2020	2,346.6
Employer Services
Goodwill [Roll Forward]
Balance at June 30, 2020	2,304.6
Additions and other adjustments	0.0
Currency translation adjustments	37.2
Balance at December 31, 2020	2,341.8
PEO Services
Goodwill [Roll Forward]
Balance at June 30, 2020	4.8
Additions and other adjustments	0.0
Currency translation adjustments	0.0
Balance at December 31, 2020	$ 4.8

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Goodwill and Intangibles Assets, net - Components Of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Jun. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Total - gross	$ 4,109.4	$ 3,979.5
Total - accumulated amortization	(2,902.2)	(2,763.7)
Intangible assets, net	1,207.2	1,215.8
Software and software licenses
Finite-Lived Intangible Assets [Line Items]
Total - gross	2,831.3	2,719.1
Total - accumulated amortization	(1,995.6)	(1,912.0)
Customer contracts and lists
Finite-Lived Intangible Assets [Line Items]
Total - gross	1,038.9	1,021.2
Total - accumulated amortization	(680.8)	(628.3)
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Total - gross	239.2	239.2
Total - accumulated amortization	$ (225.8)	$ (223.4)

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Goodwill and Intangibles Assets, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Useful life			6 years
Amortization of intangible assets	$ 80.8	$ 69.7	$ 165.0	$ 139.1
Software and software licenses
Finite-Lived Intangible Assets [Line Items]
Useful life			6 years
Customer contracts and lists
Finite-Lived Intangible Assets [Line Items]
Useful life			5 years
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Useful life			3 years

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Goodwill and Intangibles Assets, net - Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions	Dec. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Six months ending June 30, 2021	$ 157.0
Twelve months ending June 30, 2022	270.2
Twelve months ending June 30, 2023	224.9
Twelve months ending June 30, 2024	176.7
Twelve months ending June 30, 2025	122.8
Twelve months ending June 30, 2026	$ 72.6

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Short-term Financing - Narrative (Details) - USD ($)		6 Months Ended
		Dec. 31, 2020	Jun. 30, 2020
Short-term Debt [Line Items]
Line of credit facility, fair value of amount outstanding		$ 0
Commercial paper		0	$ 0
Obligations under reverse repurchase agreements	[1]	0	$ 13,600,000
364-day credit agreement
Short-term Debt [Line Items]
Maximum borrowing capacity under credit facilities		$ 3,200,000,000
Term of credit agreement		364 days
Extension option term		1 year
Credit Facility Expiring In June 2024
Short-term Debt [Line Items]
Maximum borrowing capacity under credit facilities		$ 2,750,000,000
Term of credit agreement		5 years
Line of credit facility potentially available increase in maximum borrowing capacity		$ 500,000,000
Credit Facility Expiring In June 2023
Short-term Debt [Line Items]
Maximum borrowing capacity under credit facilities		$ 3,750,000,000
Term of credit agreement		5 years
Line of credit facility potentially available increase in maximum borrowing capacity		$ 500,000,000
Commercial paper program
Short-term Debt [Line Items]
Maximum borrowing capacity under credit facilities		$ 9,700,000,000
Debt instrument, term		364 days
Reverse repurchase agreements | Maximum
Short-term Debt [Line Items]
Debt instrument, term		5 days

[1] As of June 30, 2020, $13.6 million of long-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements (see Note 9).

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Short-term Financing - Commercial Paper Program and Reverse Repurchase Agreements (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Commercial paper program
Short-term Debt [Line Items]
Short-term debt, average outstanding amount	$ 1,800.0	$ 3,500.0	$ 2,100.0	$ 3,700.0
Debt instrument, interest rate during period	0.10%	1.70%	0.10%	2.00%
Commercial paper weighted average maturity	1 day	2 days	1 day	2 days
Reverse repurchase agreements
Short-term Debt [Line Items]
Short-term debt, average outstanding amount	$ 83.2	$ 335.9	$ 117.8	$ 381.2
Debt instrument, interest rate during period	0.30%	1.70%	0.30%	1.80%

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Debt - Narrative (Details) - USD ($)	6 Months Ended
	Dec. 31, 2020	Aug. 13, 2020	Jun. 30, 2020
Debt Instrument [Line Items]
Notes payable	$ 2,007,600,000		$ 2,008,400,000
Derivative, notional amount	1,000,000,000.0	$ 600,000,000.0	400,000,000.0
Unrealized loss on cash flow hedging instruments	43,600,000
Fair value of notes issued	$ 2,120,600,000
Notes
Debt Instrument [Line Items]
Debt instrument, term	10 years
Aggregate principal amount	$ 2,000,000,000.0
Fixed-rate 2.250% notes due September 15, 2020
Debt Instrument [Line Items]
Notes payable			$ 1,000,000,000.0

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Debt (Details) - USD ($) $ in Millions	Dec. 31, 2020	Jun. 30, 2020
Debt Instrument [Line Items]
Notes payable	$ 2,007.6	$ 2,008.4
Less: current portion	(1.4)	(1,001.8)
Less: unamortized discount and debt issuance costs	(12.1)	(3.8)
Total long-term debt	$ 1,994.1	$ 1,002.8
Fixed-rate 2.250% notes due September 15, 2020
Debt Instrument [Line Items]
Stated interest rate		2.25%
Debt instrument effective rate (percent)		2.37%
Notes payable		$ 1,000.0
Fixed-rate 3.375% notes due September 15, 2025
Debt Instrument [Line Items]
Stated interest rate	3.375%
Debt instrument effective rate (percent)	3.47%
Notes payable	$ 1,000.0	1,000.0
Fixed-rate 1.250% notes due September 1, 2030
Debt Instrument [Line Items]
Stated interest rate	1.25%
Debt instrument effective rate (percent)	1.83%
Notes payable	$ 1,000.0	0.0
Other
Debt Instrument [Line Items]
Notes payable	$ 7.6	$ 8.4

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Employee Benefit Plans (Narrative) (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Treasury stock acquired (shares)	1.6	1.8	3.2	3.7

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Employee Benefit Plans (Components Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Total pre-tax stock-based compensation expense	$ 47.1	$ 36.2	$ 80.9	$ 73.3
Operating expenses
Defined Benefit Plan Disclosure [Line Items]
Total pre-tax stock-based compensation expense	4.8	3.4	8.4	7.4
Selling, general and administrative expenses
Defined Benefit Plan Disclosure [Line Items]
Total pre-tax stock-based compensation expense	35.6	28.0	60.9	56.3
System development and programming costs
Defined Benefit Plan Disclosure [Line Items]
Total pre-tax stock-based compensation expense	$ 6.7	$ 4.8	$ 11.6	$ 9.6

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Employee Benefit Plans (Components Of Net Pension Expense) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Service cost – benefits earned during the period	$ 1.2	$ 14.9	$ 2.4	$ 29.9
Interest cost on projected benefits	12.8	15.4	25.5	30.9
Expected return on plan assets	(30.4)	(29.5)	(60.7)	(59.0)
Net amortization and deferral	2.5	1.5	5.0	2.9
Settlement charges and special termination benefits	2.9	0.0	5.8	(5.1)
Net pension (income)/expense	$ (11.0)	$ 2.3	$ (22.0)	$ (0.4)

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Income Taxes (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Effective income tax rate	22.20%	22.00%	21.80%	21.60%

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Commitments and Contingencies (Details) $ in Millions	1 Months Ended
	Jun. 30, 2020 USD ($)	May 31, 2020 numberOfClassActionsComplaints
Commitments and Contingencies Disclosure [Abstract]
Litigation settlement, amount awarded to other party | $	$ 25.0
Loss contingency, number of class action complaints filed | numberOfClassActionsComplaints		2

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Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 5,808.9	$ 5,360.7	$ 5,752.2	$ 5,399.9
Net earnings	647.5	651.6	1,249.6	1,234.0
Other comprehensive income	24.4	2.7	55.1	26.1
Stock-based compensation expense	40.6	31.3	75.7	67.3
Issuances relating to stock compensation plans	36.3	23.2	81.1	88.1
Treasury stock acquired	$ (259.1)	$ (311.5)	$ (521.4)	$ (704.0)
Treasury stock acquired (shares)	1.6	1.8	3.2	3.7
Dividends declared	$ (398.6)	$ (393.6)	$ (792.3)	$ (740.2)
Dividends declared (in US$ per share)	$ 0.93	$ 0.91	$ 1.84	$ 1.70
Other				$ (6.8)
Ending balance	$ 5,900.0	$ 5,364.4	$ 5,900.0	5,364.4
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	63.9	63.9	63.9	63.9
Ending balance	63.9	63.9	63.9	63.9
Capital in Excess of Par Value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,348.4	1,213.7	1,333.8	1,183.2
Stock-based compensation expense	40.6	31.3	75.7	67.3
Issuances relating to stock compensation plans	18.6	8.7	(1.9)	3.2
Ending balance	1,407.6	1,253.7	1,407.6	1,253.7
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	18,644.7	17,729.6	18,436.3	17,500.6
Net earnings	647.5	651.6	1,249.6	1,234.0
Dividends declared	(398.6)	(393.6)	(792.3)	(740.2)
Other				(6.8)
Ending balance	18,893.6	17,987.6	18,893.6	17,987.6
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(14,264.0)	(13,412.6)	(14,067.0)	(13,090.5)
Issuances relating to stock compensation plans	17.7	14.5	83.0	84.9
Treasury stock acquired	(259.1)	(311.5)	(521.4)	(704.0)
Ending balance	(14,505.4)	(13,709.6)	(14,505.4)	(13,709.6)
AOCI
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	15.9	(233.9)	(14.8)	(257.3)
Other comprehensive income	24.4	2.7	55.1	26.1
Ending balance	$ 40.3	$ (231.2)	$ 40.3	$ (231.2)

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Reclassifications out of Accumulated Other Comprehensive Income (AOCI) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
AOCI Net of Tax [Roll Forward]
Beginning balance	$ 5,808.9	$ 5,360.7	$ 5,752.2	$ 5,399.9
Other comprehensive (loss)/income before reclassification adjustments	17.8	(0.5)	40.3	46.7
Tax effect	10.0	7.3	16.3	(13.5)
Reclassification adjustments to net earnings	(4.1)	(5.2)	(1.3)	(9.2)
Tax effect	0.7	1.1	(0.2)	2.1
Ending balance	5,900.0	5,364.4	5,900.0	5,364.4
AOCI
AOCI Net of Tax [Roll Forward]
Beginning balance	15.9	(233.9)	(14.8)	(257.3)
Ending balance	40.3	(231.2)	40.3	(231.2)
Currency Translation Adjustment
AOCI Net of Tax [Roll Forward]
Beginning balance	(271.8)	(318.1)	(322.2)	(269.2)
Other comprehensive (loss)/income before reclassification adjustments	61.9	34.3	112.3	(14.6)
Tax effect	0.0	0.0	0.0	0.0
Reclassification adjustments to net earnings	0.0	0.0	0.0	0.0
Tax effect	0.0	0.0	0.0	0.0
Ending balance	(209.9)	(283.8)	(209.9)	(283.8)
Net Gains/Losses on Available-for-sale Securities
AOCI Net of Tax [Roll Forward]
Beginning balance	661.1	298.1	680.4	224.6
Other comprehensive (loss)/income before reclassification adjustments	(44.1)	(35.5)	(68.7)	60.6
Tax effect	10.0	7.5	15.5	(13.3)
Reclassification adjustments to net earnings	(7.7)	(7.1)	(8.0)	(9.4)
Tax effect	1.7	1.6	1.8	2.1
Ending balance	621.0	264.6	621.0	264.6
Cash Flow Hedging Activities
AOCI Net of Tax [Roll Forward]
Beginning balance	(32.2)	0.0	(30.3)	0.0
Other comprehensive (loss)/income before reclassification adjustments	0.0	0.7	(3.3)	0.7
Tax effect	0.0	(0.2)	0.8	(0.2)
Reclassification adjustments to net earnings	1.1	0.0	1.7	0.0
Tax effect	(0.4)	0.0	(0.4)	0.0
Ending balance	(31.5)	0.5	(31.5)	0.5
Pension Liability
AOCI Net of Tax [Roll Forward]
Beginning balance	(341.2)	(213.9)	(342.7)	(212.7)
Other comprehensive (loss)/income before reclassification adjustments	0.0	0.0	0.0	0.0
Tax effect	0.0	0.0	0.0	0.0
Reclassification adjustments to net earnings	2.5	1.9	5.0	0.2
Tax effect	(0.6)	(0.5)	(1.6)	0.0
Ending balance	$ (339.3)	$ (212.5)	$ (339.3)	$ (212.5)

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Interim Financial Data by Segment (Narrative) (Details)	6 Months Ended
	Dec. 31, 2020 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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Interim Financial Data by Segment (Financial Data By Strategic Business Unit Segment) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenues	$ 3,695.7	$ 3,669.5	$ 7,166.5	$ 7,165.2
Earnings before Income Taxes	832.6	835.5	1,597.8	1,574.6
Employer Services
Segment Reporting Information [Line Items]
Revenues	2,510.6	2,537.5	4,887.4	4,978.9
Earnings before Income Taxes	758.6	766.3	1,447.8	1,445.7
PEO Services
Segment Reporting Information [Line Items]
Revenues	1,186.1	1,134.7	2,282.0	2,191.5
Earnings before Income Taxes	187.4	168.0	346.8	317.3
Other
Segment Reporting Information [Line Items]
Revenues	(1.0)	(2.7)	(2.9)	(5.2)
Earnings before Income Taxes	$ (113.4)	$ (98.8)	$ (196.8)	$ (188.4)