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 reporting period ended September 30, 2022

☐ 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 001-38467

 

Ceridian HCM Holding Inc.

(Exact name of registrant as specified in its charter)

Delaware	46-3231686
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

3311 East Old Shakopee Road

Minneapolis, Minnesota 55425

(952) 853-8100

(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices)

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, $0.01 par value	CDAY	New York Stock Exchange

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 ☒ No ☐

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 ☒ No ☐

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 to Section 13(a) of the Exchange Act. ☐

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as the latest practicable date: 153,594,867 shares of common stock, $0.01 par value per share, as of October 27, 2022.

Ceridian HCM Holding Inc.

Table of Contents

		Page
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS		3
PART I. FINANCIAL INFORMATION		4
Item 1.	Condensed Consolidated Financial Statements (unaudited)	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	46
Item 4.	Controls and Procedures	47
PART II. OTHER INFORMATION		48
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3.	Defaults Upon Senior Securities	48
Item 4.	Mine Safety Disclosures	48
Item 5.	Other Information	48
Item 6.	Exhibits	49

2 | Q3 2022 Form 10-Q

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Form 10-Q”) contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”) and that are subject to the safe harbor created by those sections. Forward-looking statements, including, without limitation, statements concerning the conditions of the human capital management solutions industry and our operations, performance, and financial condition, including, in particular, statements relating to our business, growth strategies, product development efforts, and future expenses. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “assumes,” “projects,” “could,” “may,” “will,” “should,” and similar references to future periods, or by the inclusion of forecasts or projections.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy, and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Consequently, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national, or global political, economic, business, competitive, market, and regulatory conditions. In particular:

•our inability to manage our growth effectively or execute on our growth strategy;

•our failure to provide new or enhanced functionality and features;

•our inability to successfully compete in the market in which we operate and expand our current offerings into new markets or further penetrate existing markets due to competition;

•our inability to offer and deliver high-quality technical support, implementation and professional services;

•system breaches, interruptions or failures, including cyber-security breaches, identity theft, or other disruptions that could compromise customer information or sensitive company information;

•our failure to comply with applicable privacy, security, data, and financial services laws, regulations and standards, including our ongoing consent order with the Federal Trade Commission regarding data protection;

•our failure to properly update our solutions to enable our customers to comply with applicable laws;

•our failure to manage our aging technical operations infrastructure;

•our inability to maintain necessary third-party relationships, and third-party software licenses, and identify errors in the software we license;

•our inability to attract and retain senior management employees and highly skilled employees;

•the impact of our outstanding debt obligations on our financial condition, results of operations, and value of our common stock; or

•the duration and scope of the Coronavirus disease 2019 (“COVID-19”) pandemic, including the uncertainty around the surge of different variants and the actions that governmental authorities may take in all the jurisdictions where we operate.

Please refer to Part II, Item IA, “Risk Factors” of this Form 10-Q and Part I, Item IA, “Risk Factors” of our most recently filed Annual Report on Form 10-K, for the year ended December 31, 2021 (“2021 Form 10-K”), for a further description of these and other factors. Although we have attempted to identify important risk factors, there may be other risk factors not presently known to us or that we presently believe are not material that could cause actual results and developments to differ materially from those made in or suggested by the forward-looking statements contained in this Form 10-Q. If any of these risks materialize, or if any of the above assumptions underlying forward-looking statements prove incorrect, actual results and developments may differ materially from those made in or suggested by the forward-looking statements contained in this Form 10-Q. For the reasons described above, we caution against relying on any forward-looking statements. Any forward-looking statement made by us in this Form 10-Q speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by law. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should be viewed as historical data.

3 | Q3 2022 Form 10-Q

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Ceridian HCM Holding Inc.

Condensed Consolidated Balance Sheets

	September 30,			December 31,
	2022			2021
(Dollars in millions, except share data)	(unaudited)
ASSETS
Current assets:
Cash and equivalents	$	408.4		$	367.5
Restricted cash		0.8			1.9
Trade and other receivables, net		155.4			146.3
Prepaid expenses and other current assets		107.3			92.6
Total current assets before customer funds		671.9			608.3
Customer funds		4,335.3			3,535.8
Total current assets		5,007.2			4,144.1
Right of use lease asset		27.5			29.4
Property, plant, and equipment, net		144.7			128.2
Goodwill		2,261.8			2,323.6
Other intangible assets, net		298.4			332.5
Other assets		266.8			208.4
Total assets	$	8,006.4		$	7,166.2
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	8.1		$	8.3
Current portion of long-term lease liabilities		14.9			11.3
Accounts payable		56.7			51.7
Deferred revenue		42.6			48.7
Employee compensation and benefits		72.6			77.3
Other accrued expenses		24.2			24.7
Total current liabilities before customer funds obligations		219.1			222.0
Customer funds obligations		4,456.6			3,519.9
Total current liabilities		4,675.7			3,741.9
Long-term debt, less current portion		1,214.1			1,124.4
Employee benefit plans		19.3			20.7
Long-term lease liabilities, less current portion		23.0			32.7
Other liabilities		23.1			19.0
Total liabilities		5,955.2			4,938.7
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.01 par, 500,000,000 shares authorized, 153,526,336 and    151,995,031 shares issued and outstanding, respectively		1.5			1.5
Additional paid in capital		2,918.4			2,860.0
Accumulated deficit		(367.4	)		(309.2	)
Accumulated other comprehensive loss		(501.3	)		(324.8	)
Total stockholders’ equity		2,051.2			2,227.5
Total liabilities and equity	$	8,006.4		$	7,166.2

See accompanying notes to condensed consolidated financial statements.

4 | Q3 2022 Form 10-Q

Ceridian HCM Holding Inc.

Condensed Consolidated Statements of Operations

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(Dollars in millions, except share and per share data, unaudited)
Revenue:
Recurring	$	263.8		$	215.0		$	762.8		$	619.1
Professional services and other		51.8			42.2			147.3			123.0
Total revenue		315.6			257.2			910.1			742.1
Cost of revenue:
Recurring		77.1			66.0			234.4			191.1
Professional services and other		61.0			48.9			172.6			140.9
Product development and management		44.8			36.6			125.0			94.2
Depreciation and amortization		13.7			12.6			40.0			37.5
Total cost of revenue		196.6			164.1			572.0			463.7
Gross profit		119.0			93.1			338.1			278.4
Selling, general, and administrative		122.7			109.1			367.2			316.5
Operating loss		(3.7	)		(16.0	)		(29.1	)		(38.1	)
Interest expense, net		7.4			10.0			19.9			25.5
Other expense, net		5.9			3.4			11.4			16.2
Loss before income taxes		(17.0	)		(29.4	)		(60.4	)		(79.8	)
Income tax expense (benefit)		4.0			(8.5	)		7.8			(13.9	)
Net loss	$	(21.0	)	$	(20.9	)	$	(68.2	)	$	(65.9	)
Net loss per share:
Basic	$	(0.14	)	$	(0.14	)	$	(0.45	)	$	(0.44	)
Diluted	$	(0.14	)	$	(0.14	)	$	(0.45	)	$	(0.44	)
Weighted-average shares outstanding:
Basic		153,184,846			150,450,595			152,691,008			149,083,666
Diluted		153,184,846			150,450,595			152,691,008			149,083,666

See accompanying notes to condensed consolidated financial statements.

5 | Q3 2022 Form 10-Q

Ceridian HCM Holding Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(Dollars in millions, unaudited)
Net loss	$	(21.0	)	$	(20.9	)	$	(68.2	)	$	(65.9	)
Items of other comprehensive loss before income taxes:
Change in foreign currency translation adjustment		(48.5	)		(19.7	)		(80.3	)		4.3
Change in unrealized loss from invested customer funds		(33.0	)		(8.4	)		(139.9	)		(30.5	)
Change in pension liability adjustment (a)		2.9			3.8			8.9			11.4
Other comprehensive loss before income taxes		(78.6	)		(24.3	)		(211.3	)		(14.8	)
Income tax benefit, net		(8.0	)		(1.3	)		(34.8	)		(5.1	)
Other comprehensive loss after income taxes		(70.6	)		(23.0	)		(176.5	)		(9.7	)
Comprehensive loss	$	(91.6	)	$	(43.9	)	$	(244.7	)	$	(75.6	)

(a)The amount of the pension liability adjustment recognized in the condensed consolidated statements of operations within other expense, net was $2.9 million and $3.8 million during the three months ended September 30, 2022, and 2021, respectively, and $8.7 million and $11.3 million during the nine months ended September 30, 2022, and 2021, respectively.

See accompanying notes to condensed consolidated financial statements.

6 | Q3 2022 Form 10-Q

Ceridian HCM Holding Inc.

Condensed Consolidated Statements of Stockholders’ Equity

	Common Stock				Additional Paid In			Accumulated			Accumulated Other Comprehensive			Total Stockholders'
	Shares		$		Capital			Deficit			Loss			Equity
	(Dollars in millions, except share data, unaudited)
Balance as of December 31, 2021		151,995,031	$	1.5	$	2,860.0		$	(309.2	)	$	(324.8	)	$	2,227.5
Cumulative-effect adjustments related to the adoption of ASU 2020-06		—		—		(77.7	)		10.0			—			(67.7	)
Net loss		—		—		—			(27.4	)		—			(27.4	)
Issuance of common stock under share-based compensation plans		535,418		—		6.0			—			—			6.0
Share-based compensation		—		—		35.5			—			—			35.5
Foreign currency translation		—		—		—			—			15.6			15.6
Change in unrealized gain, net of tax of ($18.4)		—		—		—			—			(51.0	)		(51.0	)
Change in pension liability adjustment, net of tax of $0.8		—		—		—			—			2.3			2.3
Balance as of March 31, 2022		152,530,449	$	1.5	$	2,823.8		$	(326.6	)	$	(357.9	)	$	2,140.8
Net loss		—		—		—			(19.8	)		—			(19.8	)
Issuance of common stock under share-based compensation plans		503,145		—		7.3			—			—			7.3
Share-based compensation		—		—		38.8			—			—			38.8
Foreign currency translation		—		—		—			—			(47.4	)		(47.4	)
Change in unrealized gain, net of tax of ($10.0)		—		—		—			—			(27.5	)		(27.5	)
Change in pension liability adjustment, net of tax of $0.8		—		—		—			—			2.1			2.1
Balance as of June 30, 2022		153,033,594	$	1.5	$	2,869.9		$	(346.4	)	$	(430.7	)	$	2,094.3
Net loss		—		—		—			(21.0	)		—			(21.0	)
Issuance of common stock under share-based compensation plans		492,742		—		9.3			—			—			9.3
Share-based compensation		—		—		39.2			—			—			39.2
Foreign currency translation		—		—		—			—			(48.5	)		(48.5	)
Change in unrealized loss, net of tax of ($8.8)		—		—		—			—			(24.2	)		(24.2	)
Change in pension liability adjustment, net of tax of $0.8		—		—		—			—			2.1			2.1
Balance as of September 30, 2022		153,526,336	$	1.5	$	2,918.4		$	(367.4	)	$	(501.3	)	$	2,051.2

7 | Q3 2022 Form 10-Q

	Common Stock				Additional Paid In			Accumulated			Accumulated Other Comprehensive			Total Stockholders'
	Shares		$		Capital			Deficit			Loss			Equity
	(Dollars in millions, except share data, unaudited)
Balance as of December 31, 2020		148,571,412	$	1.5	$	2,606.5		$	(233.8	)	$	(276.0	)	$	2,098.2
Net loss		—		—		—			(19.2	)		—			(19.2	)
Issuance of common stock under share-based compensation plans		341,975		—		11.3			—			—			11.3
Share-based compensation		—		—		22.8			—			—			22.8
Equity component of convertible senior notes		—		—		77.7			—			—			77.7
Purchase of capped calls related to convertible senior notes		—		—		(33.0	)		—			—			(33.0	)
Foreign currency translation		—		—		—			—			11.0			11.0
Change in unrealized gain, net of tax of $(4.4)		—		—		—			—			(12.3	)		(12.3	)
Change in pension liability adjustment, net of tax of $1.0		—		—		—			—			2.8			2.8
Balance as of March 31, 2021		148,913,387	$	1.5	$	2,685.3		$	(253.0	)	$	(274.5	)	$	2,159.3
Net loss		—		—		—			(25.8	)		—			(25.8	)
Issuance of common stock under share-based compensation plans		838,862		—		23.1			—			—			23.1
Share-based compensation		—		—		31.4			—			—			31.4
Foreign currency translation		—		—		—			—			13.0			13.0
Change in unrealized gain, net of tax of ($1.4)		—		—		—			—			(4.0	)		(4.0	)
Change in pension liability adjustment, net of tax of $1.0		—		—		—			—			2.8			2.8
Balance as of June 30, 2021		149,752,249	$	1.5	$	2,739.8		$	(278.8	)	$	(262.7	)	$	2,199.8
Net loss		—		—		—			(20.9	)		—			(20.9	)
Issuance of common stock under share-based compensation plans		1,412,928		—		36.5			—			—			36.5
Share-based compensation		—		—		29.4			—			—			29.4
Foreign currency translation		—		—		—			—			(19.7	)		(19.7	)
Change in unrealized loss, net of tax of ($2.3)		—		—		—			—			(6.1	)		(6.1	)
Change in pension liability adjustment, net of tax of $1.0		—		—		—			—			2.8			2.8
Balance as of September 30, 2021		151,165,177	$	1.5	$	2,805.7		$	(299.7	)	$	(285.7	)	$	2,221.8

See accompanying notes to condensed consolidated financial statements.

8 | Q3 2022 Form 10-Q

Ceridian HCM Holding Inc.

Condensed Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
	2022			2021
	(Dollars in millions, unaudited)
Net loss	$	(68.2	)	$	(65.9	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred income tax expense (benefit)		5.1			(45.0	)
Depreciation and amortization		64.4			59.3
Amortization of debt issuance costs and debt discount		3.0			11.5
Provision for doubtful accounts		2.2			1.5
Net periodic pension and postretirement cost		3.6			6.6
Share-based compensation		113.5			83.6
Change in fair value of contingent consideration		3.2			—
Other		—			0.6
Changes in operating assets and liabilities excluding effects of acquisitions and divestitures:
Trade and other receivables		(16.2	)		(5.3	)
Prepaid expenses and other current assets		(14.0	)		(13.9	)
Accounts payable and other accrued expenses		4.5			1.9
Deferred revenue		(3.5	)		5.2
Employee compensation and benefits		(2.8	)		(5.1	)
Accrued interest		(0.3	)		0.3
Accrued taxes		(0.1	)		20.9
Other assets and liabilities		(3.6	)		(7.3	)
Net cash provided by operating activities		90.8			48.9
Cash Flows from Investing Activities
Purchase of customer funds marketable securities		(534.3	)		(500.5	)
Proceeds from sale and maturity of customer funds marketable securities		304.2			409.2
Expenditures for property, plant, and equipment		(10.4	)		(7.3	)
Expenditures for software and technology		(54.5	)		(38.4	)
Acquisition costs, net of cash and restricted cash acquired		—			(373.5	)
Net cash used in investing activities		(295.0	)		(510.5	)
Cash Flows from Financing Activities
Increase in customer funds obligations, net		1,010.4			1,631.0
Proceeds from issuance of common stock under share-based compensation plans		22.6			70.9
Repayment of long-term debt obligations		(6.3	)		(4.3	)
Proceeds from revolving credit facility		—			295.0
Repayment of revolving credit facility		—			(295.0	)
Proceeds from issuance of convertible senior notes, net of issuance costs		—			561.8
Purchases of capped calls related to convertible senior notes		—			(45.0	)
Net cash provided by financing activities		1,026.7			2,214.4
Effect of exchange rate changes on cash, restricted cash, and equivalents		(8.1	)		(0.5	)
Net increase in cash, restricted cash, and equivalents		814.4			1,752.3
Cash, restricted cash, and equivalents at beginning of period		1,952.8			2,228.5
Cash, restricted cash, and equivalents at end of period	$	2,767.2		$	3,980.8
Reconciliation of cash, restricted cash, and equivalents to the condensed    consolidated balance sheets
Cash and equivalents	$	408.4		$	378.8
Restricted cash		0.8			1.9
Restricted cash and equivalents included in customer funds		2,358.0			3,600.1
Total cash, restricted cash, and equivalents	$	2,767.2		$	3,980.8

See accompanying notes to condensed consolidated financial statements.

9 | Q3 2022 Form 10-Q

Ceridian HCM Holding Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Organization

Ceridian HCM Holding Inc. and its subsidiaries (also referred to in this report as “Ceridian,” “we,” “our,” “us,” or the “Company”) offer a broad range of services and software designed to help employers more effectively manage employment processes, such as payroll, payroll-related tax filing, human resource information systems, employee self-service, time and labor management, employee assistance programs, and recruitment and applicant screening. Our technology-based services are typically provided through long-term customer relationships that result in a high level of recurring revenue.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accounting policies we follow are set forth in Note 2, “Summary of Significant Accounting Policies,” to our audited consolidated financial statements in our 2021 Form 10-K. The following notes should be read in conjunction with these policies and other disclosures in our 2021 Form 10-K.

In the opinion of management, the unaudited condensed consolidated financial statements contained herein reflect all adjustments (consisting only of normal recurring adjustments, except as set forth in these notes to condensed consolidated financial statements) necessary to present fairly in all material aspects the financial position, results of operations, comprehensive income (loss), and cash flows from all periods presented. Interim results are not necessarily indicative of results for a full year.

Deferred Costs

Deferred costs, which primarily consist of deferred sales commissions, included within Other assets on our condensed consolidated balance sheets were $141.0 million and $144.5 million as of September 30, 2022, and December 31, 2021, respectively. Amortization expense for the deferred costs was $13.1 million and $11.7 million for the three months ended September 30, 2022, and 2021, respectively, and $38.5 million and $34.0 million for the nine months ended September 30, 2022, and 2021, respectively.

10 | Q3 2022 Form 10-Q

Recently Issued and Adopted Accounting Pronouncements from the Financial Accounting Standards Board

Standard	Issuance Date	Description	Adoption Date	Effect on the Financial Statements
Accounting Standards Update ("ASU") 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)	August 2020	This amendment simplifies the accounting for convertible instruments by removing certain separation models required under current GAAP for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost.	January 2022	We adopted the guidance as of January 1, 2022, using the modified retrospective method of transition. The adoption resulted in the elimination of the debt discount (and related deferred tax liability) that was recorded within equity related to our Convertible Senior Notes. The net impact of the adjustments was recorded to the opening balance of accumulated deficit and additional paid in capital. The impact to the condensed consolidated balance sheet was as follows: (1) increase of $92.9 million to long-term debt, (2) decrease of $77.7 million to additional paid-in capital, net of allocated issuance costs of $2.7 million and deferred tax impact of $28.2 million, and (3) decrease to accumulated deficit of $10.0 million.
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	March 2020	This amendment provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.	Not yet adopted	This amendment may be elected over time through December 31, 2022 as reference rate reform activities occur. We do not expect the adoption of this guidance to have a significant impact on our financial statements.

3. Business Combinations

ADAM HCM

On December 3, 2021, we completed the acquisition of 100% of the outstanding interests in ATI ROW, LLC and ADAM HCM MEXICO, S. de R.L de C.V (collectively, "ADAM HCM") for $34.5 million. ADAM HCM is a payroll and HCM company in Latin America.

The purchase accounting was considered complete as of June 30, 2022. Intangible assets recorded for this acquisition consist of $7.5 million of customer relationships, $2.9 million of developed technology, and $0.4 million of trade name. Of the goodwill associated with this acquisition, $24.0 million is deductible for income tax purposes.

11 | Q3 2022 Form 10-Q

The major classes of assets and liabilities to which we have allocated the purchase price were as follows:

	(Dollars in millions)
Cash and equivalents	$	0.2
Trade receivables, prepaid expenses, and other current assets		0.9
Goodwill		24.0
Other intangible assets		10.8
Other assets		0.2
Accounts payable and other current liabilities		(1.6	)
Total purchase price	$	34.5

4. Fair Value Measurements

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	September 30, 2022
	Level 1		Level 2			Level 3			Total
	(Dollars in millions)
Assets
Available for sale customer funds assets	$	—	$	1,977.3	(a)	$	—		$	1,977.3
Total assets measured at fair value	$	—	$	1,977.3		$	—		$	1,977.3
Liabilities
DataFuzion contingent consideration	$	—	$	—		$	9.2	(b)	$	9.2
Total liabilities measured at fair value	$	—	$	—		$	9.2		$	9.2

	December 31, 2021
	Level 1		Level 2			Level 3			Total
	(Dollars in millions)
Assets
Available for sale customer funds assets	$	—	$	1,952.4	(a)	$	—		$	1,952.4
Total assets measured at fair value	$	—	$	1,952.4		$	—		$	1,952.4
Liabilities
DataFuzion contingent consideration	$	—	$	—		$	6.0	(b)	$	6.0
Total liabilities measured at fair value	$	—	$	—		$	6.0		$	6.0

(a)Fair value is based on inputs that are observable for the asset or liability, other than quoted prices.

(b)For the contingent consideration related to the 2021 acquisition of certain assets and liabilities of DataFuzion HCM, Inc. ("DataFuzion"), we utilize an option pricing model, specifically a Black-Scholes-Merton model, to estimate the fair value of the contingent liability as of the reporting dates. This model uses certain assumptions related to risk-free rates and volatility as well as certain judgments in forecasting annual recurring revenue. The contingent consideration has been measured as Level 3 given the unobservable inputs that are significant to the measurement of liability. The contingent consideration is included within other liabilities in our condensed consolidated balance sheets.

During the three and nine months ended September 30, 2022, we recognized expense of $1.2 million and $3.2 million, respectively, within selling, general, and administrative expense in our condensed consolidated statements of operations due to the remeasurement of the DataFuzion contingent consideration.

12 | Q3 2022 Form 10-Q

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

During the nine months ended September 30, 2022, we did not re-measure any financial assets or liabilities at fair value on a nonrecurring basis. During the year ended December 31, 2021, assets and liabilities acquired as part of business combinations and recognized as part of our convertible debt issuance have been recorded at fair value on a nonrecurring basis.

5. Customer Funds

In certain jurisdictions, we collect funds for payment of payroll and taxes; temporarily hold such funds until payment is due; remit the funds to the customers’ employees and appropriate taxing authorities; file federal, state, and local tax returns; and handle related regulatory correspondence and amendments. The customer assets are held in segregated accounts intended for the specific purpose of satisfying customer funding obligations and therefore are not freely available for our general business use. In the U.S. and Canada, these customer funds are held in trusts.

Investment income from invested customer funds, also referred to as float revenue or float, is a component of our compensation for providing services under agreements with our customers. Investment income from invested customer funds included in recurring revenue was $21.3 million and $9.9 million for the three months ended September 30, 2022, and 2021, respectively, and $47.4 million and $31.0 million for the nine months ended September 30, 2022, and 2021. Investment income includes interest income, realized gains and losses from sales of customer funds’ investments, and unrealized credit losses determined to be unrecoverable.

The amortized cost of customer funds as of September 30, 2022, and December 31, 2021, is the original cost of assets acquired. The amortized cost and fair values of investments of customer funds available for sale were as follows:

	September 30, 2022
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
	(Dollars in millions)
Money market securities, investments carried at cost    and other cash equivalents	$	2,346.0	$	—	$	—			2,346.0
Available for sale investments:
U.S. government and agency securities		701.4		—		(55.2	)		646.2
Canadian and provincial government securities		428.3		0.1		(17.5	)		410.9
Corporate debt securities		653.6		0.4		(38.1	)		615.9
Asset-backed securities		169.2		—		(5.9	)		163.3
Mortgage-backed securities		15.1		—		(0.8	)		14.3
Other short-term investments		58.4		—		—			58.4
Other securities		74.4		—		(6.1	)		68.3
Total available for sale investments		2,100.4		0.5		(123.6	)		1,977.3
Invested customer funds		4,446.4	$	0.5	$	(123.6	)		4,323.3
Receivables		10.2							12.0
Total customer funds	$	4,456.6						$	4,335.3

13 | Q3 2022 Form 10-Q

	December 31, 2021
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
	(Dollars in millions)
Money market securities, investments carried at cost    and other cash equivalents	$	1,562.4	$	—	$	—		$	1,562.4
Available for sale investments:
U.S. government and agency securities		697.8		9.5		(5.8	)		701.5
Canadian and provincial government securities		399.9		5.3		(1.3	)		403.9
Corporate debt securities		551.4		8.3		(3.1	)		556.6
Asset-backed securities		174.2		1.5		(0.3	)		175.4
Mortgage-backed securities		2.7		—		—			2.7
Other short-term investments		41.4		—		—			41.4
Other securities		71.7		—		(0.8	)		70.9
Total available for sale investments		1,939.1		24.6		(11.3	)		1,952.4
Invested customer funds		3,501.5	$	24.6	$	(11.3	)		3,514.8
Receivables		18.4							21.0
Total customer funds	$	3,519.9						$	3,535.8

The following represents the gross unrealized losses and the related fair value of the investments of customer funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	September 30, 2022
	Less than 12 months					12 months or more					Total
	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
	(Dollars in millions)
U.S. government and agency securities	$	(27.1	)	$	413.3	$	(28.1	)	$	230.0	$	(55.2	)	$	643.3
Canadian and provincial government securities		(11.9	)		344.8		(5.6	)		58.4		(17.5	)		403.2
Corporate debt securities		(24.1	)		488.0		(14.0	)		116.1		(38.1	)		604.1
Asset-backed securities		(4.5	)		136.0		(1.4	)		25.8		(5.9	)		161.8
Mortgage-backed securities		(0.8	)		14.3		—			—		(0.8	)		14.3
Other securities		(2.3	)		31.6		(3.8	)		36.6		(6.1	)		68.2
Total available for sale investments	$	(70.7	)	$	1,428.0	$	(52.9	)	$	466.9	$	(123.6	)	$	1,894.9

Management does not believe that any individual unrealized loss was unrecoverable as of September 30, 2022. The unrealized losses are primarily attributable to changes in interest rates and not to credit deterioration. We currently do not intend to sell or expect to be required to sell the securities before the time required to recover the amortized cost.

The amortized cost and fair value of investment securities available for sale at September 30, 2022, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or to prepay obligations with or without call or prepayment penalties.

	September 30, 2022
	Cost		Fair Value
	(Dollars in millions)
Due in one year or less	$	2,734.6	$	2,731.8
Due in one to three years		649.4		618.8
Due in three to five years		819.6		753.6
Due after five years		242.8		219.1
Invested customer funds	$	4,446.4	$	4,323.3

14 | Q3 2022 Form 10-Q

6. Goodwill and Intangible Assets

Goodwill

Goodwill and changes therein were as follows:

	(Dollars in millions)
Balance at December 31, 2020	$	2,031.8
Acquisitions		308.2
Translation		(16.4	)
Balance at December 31, 2021		2,323.6
Acquisition (a)		0.5
Translation		(62.3	)
Balance at September 30, 2022	$	2,261.8

a)The purchase accounting was finalized for the ADAM HCM acquisition during the second quarter of 2022. Refer to Note 3, "Business Combinations" to our condensed consolidated financial statements for additional information.

Intangible Assets

Intangible assets consisted of the following:

	September 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
	(Dollars in millions)
Customer lists and relationships	$	295.1	$	(224.3	)	$	70.8	4-12
Trade name		182.9		(4.0	)		178.9	3-5 and Indefinite
Technology		223.8		(175.1	)		48.7	3-5
Total other intangible assets	$	701.8	$	(403.4	)	$	298.4

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
	(Dollars in millions)
Customer lists and relationships	$	308.4	$	(220.4	)	$	88.0	4-12
Trade name		184.4		(3.2	)		181.2	3-5 and Indefinite
Technology		233.9		(170.6	)		63.3	3-5
Total other intangible assets	$	726.7	$	(394.2	)	$	332.5

As of October 1 each year, we perform an impairment assessment of our indefinite-lived intangible assets, which includes our Ceridian and Dayforce trade names, which have a carrying value of $167.2 million and $4.4 million, respectively as of September 30, 2022. We continue to evaluate the use of our trade names and branding in our sales and marketing efforts. If there is a fundamental shift in the method of our branding in the future, we will assess the impact on the carrying amount of our trade name intangible assets to determine whether an impairment exists. If it is determined that an impairment has occurred, it would be recognized during the period in which the decision was made to make the fundamental shift.

Amortization expense related to definite-lived intangible assets was $7.5 million and $7.3 million for the three months ended September 30, 2022, and 2021, respectively, and $22.9 million and $19.3 million for the nine months ended September 30, 2022, and 2021 respectively.

15 | Q3 2022 Form 10-Q

7. Debt

Overview

Our debt obligations consisted of the following as of the periods presented:

	September 30,		December 31,
	2022		2021
	(Dollars in millions)
Term Debt, interest rate of 5.6% and 2.6%, respectively	$	652.8	$	657.9
Revolving Credit Facility ($300.0 million available capacity less amounts reserved for    letters of credit, which were $2.0 million and $2.1 million, respectively)		—		—
Convertible Senior Notes, interest rate of 0.25%		575.0		575.0
Australia Line of Credit (AUD $1.5 million and $2.9 million letter of credit capacity, respectively, which were fully utilized; USD $1.0 million and USD $2.1 million, respectively)		—		—
Financing lease liabilities (Please refer to Note 13)		8.8		9.6
Total debt		1,236.6		1,242.5
Less unamortized discount on Term Debt and Convertible Senior Notes (a)		0.7		95.5
Less unamortized debt issuance costs on Term Debt and Convertible Senior Notes (a)		13.7		14.3
Less current portion of long-term debt		8.1		8.3
Long-term debt, less current portion	$	1,214.1	$	1,124.4

a)We adopted ASU 2020-06 as of January 1, 2022. The unamortized discount and debt issuance costs on the Convertible Senior Notes is presented post-adoption of ASU 2020-06 as of September 30, 2022 and is presented pre-adoption of ASU 2020-06 as of December 31, 2021. Refer to the Convertible Senior Notes section below for further discussion of the impacts of the adoption of ASU 2020-06 on our condensed consolidated financial statements.

Accrued interest and fees related to the debt obligations was $0.2 million and $0.5 million as of September 30, 2022 and December 31, 2021, respectively, and is included within Other accrued expenses in our condensed consolidated balance sheets.

Senior Secured Credit Facility

On April 30, 2018, we completed the refinancing of our debt by entering into a new credit agreement. Pursuant to the terms of the new credit agreement, we became borrower of (i) a $680.0 million term loan debt facility (the “Term Debt”) and (ii) a $300.0 million revolving credit facility (the “Revolving Credit Facility”) (collectively, the “Senior Secured Credit Facility”). Our obligations under the Senior Secured Credit Facility are secured by first priority security interests in substantially all of our assets and the domestic subsidiary guarantors, subject to permitted liens and certain exceptions.

The Term Debt will mature on April 30, 2025. We are required to make annual amortization payments in respect of the Term Debt in an amount equal to 1.00% of the original principal amount thereof, payable in equal quarterly installments of 0.25% of the original principal amount of the first lien term debt. On December 15, 2021, we completed the second amendment to our Senior Secured Credit Facility, which extended that maturity date of the Revolving Credit Facility from April 30, 2023 to January 29, 2025. The Revolving Credit Facility does not require amortization payments.

Convertible Senior Notes

In March 2021, we issued $575.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2026 in a private offering to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended, and pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws, including the exercise in full by the initial purchasers of their option to purchase an additional $75.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2026 (collectively, the “Convertible Senior Notes”). The Convertible Senior Notes bear interest at a rate of 0.25% per year and interest is payable semiannually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. The Convertible Senior Notes mature on March 15, 2026, unless earlier converted, redeemed or repurchased. The total net proceeds from the offering, after deducting initial purchase discounts and other debt issuance costs, were $561.8 million.

16 | Q3 2022 Form 10-Q

The following table presents details of the Convertible Senior Notes:

	Initial Conversion Rate per $1,000 Principal	Initial Conversion Price per Share
Convertible Senior Notes	7.5641 shares	$	132.20

The Convertible Senior Notes will be convertible at the option of the holders at any time only under certain circumstances as outlined in Note 9, “Debt,” to our audited consolidated financial statements in our 2021 Form 10-K. The conditions allowing holders of the Convertible Senior Notes to convert have not been met and therefore were not convertible as of September 30, 2022.

On December 30, 2021, we notified the holders of the Convertible Senior Notes of our irrevocable election to settle the conversion obligation in connection with the Convertible Senior Notes submitted for conversion on or after January 1, 2022, or at maturity with a combination of cash and shares of our common stock. Generally, under this settlement method, the conversion value will be settled in cash in an amount no less than the principal amount being converted, and any excess of the conversion value over the principal amount will be settled, at our election, in cash or shares of common stock.

On January 1, 2022, we adopted ASU 2020-06 using the modified retrospective transition method. Under such transition, prior-period information has not been retrospectively adjusted for this change in accounting guidance.

Upon the adoption of ASU 2020-06, the Convertible Senior Notes are accounted for as a single liability, and the carrying amount of the Convertible Senior Notes was $564.7 million as of September 30, 2022, with principal of $575.0 million, net of issuance costs of $10.3 million. The Convertible Senior Notes are included within Long-term debt, less current portion in our condensed consolidated balance sheets as of September 30, 2022. The issuance costs related to the Convertible Senior Notes are being amortized to interest expense over the contractual term of the Convertible Senior Notes at an effective interest rate of 5.1%.

Interest expense recognized related to the Convertible Senior Notes was as follows:

	Three Months Ended September 30, 2022		Three Months Ended September 30, 2021		Nine Months Ended September 30, 2022		Nine Months Ended September 30, 2021
	(Post-adoption of ASU 2020-06)		(Pre-adoption of ASU 2020-06)		(Post-adoption of ASU 2020-06)		(Pre-adoption of ASU 2020-06)
	(Dollars in millions)
Contractual interest expense	$	0.4	$	0.4	$	1.0	$	0.9
Amortization of debt discount		—		4.4		—		9.5
Amortization of debt issuance costs		0.6		0.5		2.0		1.1
Total	$	1.0	$	5.3	$	3.0	$	11.5

Capped Calls

In March 2021, in connection with the pricing of the Convertible Senior Notes, we entered into capped call transactions with the option counterparties (the “Capped Calls”). The Capped Calls each have an initial strike price of $132.20 per share, and an initial cap price of $179.26 per share, both subject to certain adjustments. The capped call transactions are generally expected to reduce potential dilution to our common stock upon any conversion of the Convertible Senior Notes and/or offset any potential cash payments we would be required to make in excess of the principal amount of converted Convertible Senior Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Convertible Senior Notes. As the Capped Calls qualify for a scope exception from derivative accounting for instruments that are both indexed to the issuer's own stock and classified in stockholder’s equity in our condensed consolidated balance sheet, we have recorded an amount of $33.0 million as a reduction to additional paid-in capital which will not be remeasured. This represents the premium of $45.0 million paid for the purchase of the Capped Calls, net of the deferred tax impact of $12.0 million.

17 | Q3 2022 Form 10-Q

Future Payments and Maturities of Debt

The future principal payments and maturities of our indebtedness, excluding financing lease obligations, are as follows:

Years Ending December 31,	Amount
	(Dollars in millions)
2022	$	1.7
2023		6.8
2024		6.8
2025		637.5
2026		575.0
	$	1,227.8

Fair Value of Debt

Our debt does not trade in active markets and was considered to be a Level 2 measurement at September 30, 2022. The fair value of the Term Debt was based on the borrowing rates currently available to us for bank loans with similar terms and average maturities and the limited trades of our debt. The fair value of the Convertible Senior Notes was determined based on the closing trading price per $1,000 of the Convertible Senior Notes as of the last day of trading for the period and is primarily affected by the trading price of our common stock and market interest rates. The fair value of our debt was estimated to be $1,086.1 million and $1,248.9 million as of September 30, 2022, and December 31, 2021, respectively.

8. Employee Benefit Plans

The components of net periodic cost for our defined benefit pension plan and for our postretirement benefit plan are included in the following tables:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net Periodic Pension Cost	(Dollars in millions)
Interest cost	$	2.2		$	1.7		$	6.6		$	5.1
Actuarial loss amortization		3.4			4.4			10.2			13.0
Less: Expected return on plan assets		(4.0	)		(3.3	)		(11.9	)		(9.9	)
Net periodic pension cost	$	1.6		$	2.8		$	4.9		$	8.2

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net Periodic Postretirement Benefit	(Dollars in millions)
Interest cost	$	0.1		$	—		$	0.2		$	0.1
Actuarial gain amortization		(0.5	)		(0.5	)		(1.5	)		(1.5	)
Prior service credit amortization		—			(0.1	)		—			(0.2	)
Net periodic postretirement benefit gain	$	(0.4	)	$	(0.6	)	$	(1.3	)	$	(1.6	)

9. Share-Based Compensation

Our share-based compensation consists of stock options, restricted stock units (“RSU”), and performance-based stock units (“PSU”). We also offer an employee stock purchase plan.

18 | Q3 2022 Form 10-Q

Under the 2013 Ceridian HCM Holding Inc. Stock Incentive Plan, as amended ("2013 SIP") and Ceridian HCM Holding Inc. 2018 Equity Incentive Plan (as amended and restated from time to time, the “2018 EIP”), we have shares reserved for issuance of common stock to eligible employees and our Board of Directors. The 2018 EIP serves as a successor to the 2013 SIP as we ceased granting awards under the 2013 SIP as of April 24, 2018, and we do not intend to grant any additional awards under the 2013 SIP. Most of our equity awards under the 2018 EIP vest either annually or quarterly on a pro rata basis, generally over a one-, three-, four-, or five-year period or on a specific date if certain performance criteria are satisfied and certain equity values are attained. In addition, upon termination of service, all vested awards must be exercised generally within 90 days after termination, or these awards will be forfeited. The equity awards have a 10-year contractual term, and the options have an exercise price that is not less than the fair market value of the underlying stock on the date of grant.

Pursuant to the evergreen refresh provision of the 2018 EIP, on February 23, 2022, the Board of Directors approved an increase to the share reserve of the three percent of the number of shares of common stock outstanding on January 31, 2022 to take place on March 31, 2022. Further, our Board of Directors approved an amendment effective April 1, 2022, to remove the evergreen refresh provision of the 2018 EIP that permitted the share reserve to be increased on March 31 of each of the first ten calendar years during the term of the 2018 EIP, by the lesser of (i) three percent of the number of shares of our common stock outstanding on each January 31 immediately prior to the date of increase or (ii) such number of shares of our common stock determined by the Board of Directors.

As of September 30, 2022, there were 914,330 stock options and RSUs outstanding under the 2013 SIP and there were 11,963,525 stock options, RSUs, and PSUs outstanding and 13,789,715 shares available for future grants of equity awards under the 2018 EIP.

Total share-based compensation expense was $39.2 million and $29.4 million for the three months ended September 30, 2022, and 2021, respectively, and $113.5 million and $83.6 million for the nine months ended September 30, 2022, and 2021.

Performance-Based Stock Options

Performance-based stock option activity under the 2013 SIP and the 2018 EIP was as follows:

	Shares			Weighted Average Exercise Price (per share)			Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Performance-based options outstanding at December 31, 2021		1,777,050		$	64.72			8.3	$	70.6
Granted		—			—			—		—
Exercised		(12,755	)		(13.46	)		—		—
Forfeited or expired		(1,857	)		(13.46	)		—		—
Performance-based options outstanding at September 30, 2022		1,762,438		$	65.15			7.6	$	0.2
Performance-based options exercisable at September 30, 2022		262,438		$	64.50			7.7	$	0.2

19 | Q3 2022 Form 10-Q

As of September 30, 2022, there was $4.5 million of share-based compensation expense related to unvested performance-based stock option awards not yet recognized, which is expected to be recognized over a weighted-average period of 0.5 years.

Performance Stock Units

PSU activity under the 2018 EIP was as follows:

	Shares
PSUs outstanding at December 31, 2021		318,745
Granted		582,662
Shares issued upon vesting of PSUs		(168,414	)
Forfeited or canceled		(22,069	)
PSUs outstanding at September 30, 2022		710,924
PSUs releasable at September 30, 2022		—

In 2021, we granted PSUs under the Ceridian HCM Holding Inc. 2021 Management Incentive Plan (the “2021 MIP”) for the incentive period of January 1, 2021 through December 31, 2021, and also as part of long term incentive grants to certain members of management. One-third of the PSUs granted in 2021 as part of long term incentive grants to certain members of management vested on March 8, 2022, and will vest on each of March 8, 2023, and March 8, 2024.

On February 24, 2022, we granted PSUs under the 2022 Ceridian HCM Holding, Inc. Management Incentive Plan (the “2022 MIP”) for the incentive period of January 1, 2022 through December 31, 2022, and also as part of long term incentive grants to certain members of management. The vesting conditions for the PSUs granted on February 24, 2022, are based on the following performance criteria: (1) the Cloud revenue, excluding float revenue (the “Cloud Revenue Goal”) (2) the adjusted EBITDA, excluding float revenue (the “Adjusted EBITDA Goal”), and (3) the Sales per employee per month (“PEPM”) annual contract value (“ACV”) (the “Sales PEPM ACV Goal”), for fiscal year 2022 (collectively the “Performance Goals”).

Both the Cloud Revenue Goal and the Adjusted EBITDA Goal are calculated based on our operating results on a constant currency basis as adjusted to exclude: float revenue; foreign exchange gain (loss); share-based compensation expense and related employer taxes; severance charges; restructuring consulting fees; significant acquisitions or disposals and related transaction costs; as well as other non-recurring items, subject to the Board of Directors approval. The Sales PEPM ACV Goal is calculated based on the sales of our solutions on a constant currency basis that contribute to Cloud recurring revenue. Any cash payment under the 2022 MIP and the vesting conditions for the PSU awards granted in 2022 will be determined based on our performance against the achievement of the Performance Goals, and the payout that a participant can receive may be between 0% for not meeting the applicable thresholds of any of the Performance Goals, up to a maximum total payout of 167% for achieving the maximum level of all of the Performance Goals. Upon vesting of a PSU, a participant will receive shares of common stock of the Company. The probability of vesting of the PSUs related to the 2022 MIP and as part of long term incentive grants to certain members of management will continue to be evaluated throughout 2022, and share-based compensation will be recognized in accordance with that probability.

As of September 30, 2022, there was $22.7 million of share-based compensation expense related to unvested PSUs not yet recognized.

Restricted Stock Units

RSU activity under the 2013 SIP and the 2018 EIP was as follows:

	Shares
RSUs outstanding at December 31, 2021		1,935,939
Granted		1,507,286
Shares issued upon vesting of RSUs		(456,617	)
Forfeited or canceled		(140,140	)
RSUs outstanding at September 30, 2022		2,846,468
RSUs releasable at September 30, 2022		660,613

20 | Q3 2022 Form 10-Q

During the nine months ended September 30, 2022, 519,294 RSUs vested. As of September 30, 2022, there were 2,185,855 unvested RSUs outstanding and 660,613 vested RSUs outstanding. As of September 30, 2022, there was $115.6 million of share-based compensation expense related to unvested RSUs not yet recognized, which is expected to be recognized over a weighted-average period of 1.5 years.

Term-Based Stock Options

Term-based stock option activity under the 2013 SIP and the 2018 EIP was as follows:

	Shares			Weighted Average Exercise Price (per share)			Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Term-based options outstanding at December 31, 2021		8,515,869		$	48.87			7.3	$	473.4
Granted		81,145			56.29			—		—
Exercised		(693,875	)		(32.70	)		—		—
Forfeited or expired		(345,114	)		(58.31	)		—		—
Term-based options outstanding at September 30, 2022		7,558,025		$	50.00			6.6	$	84.4
Term-based options exercisable at September 30, 2022		5,169,434		$	43.57			6.3	$	78.8

As of September 30, 2022, there was $37.8 million of share-based compensation expense related to unvested term-based stock options not yet recognized, which is expected to be recognized over a weighted-average period of 0.8 years.

Global Employee Stock Purchase Plan

We maintain the Ceridian HCM Holding Inc. Global Employee Stock Purchase Plan (“GESPP”) pursuant to which we have shares reserved for the issuance of common stock to eligible participants through quarterly purchases via payroll deductions. A total of 1,701,453 shares of common stock are available for future issuances under the plan as of September 30, 2022. The purchase price is the lower of 85% of the fair market value of a share of common stock on (i) January 1 or (ii) the purchase date.

Our GESPP activity was as follows:

Period Ended	Shares Issued		Purchase Price (per share)
March 31, 2022		56,208	$	58.11
June 30, 2022		84,541		40.02
September 30, 2022		59,599		47.50

21 | Q3 2022 Form 10-Q

10. Revenue

Disaggregation of Revenue

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in millions)
Revenue:
Cloud
Dayforce
Recurring	$	207.8	$	160.3	$	590.7	$	456.2
Professional services and other		46.4		38.4		134.2		113.2
Total Dayforce revenue		254.2		198.7		724.9		569.4
Powerpay
Recurring		22.6		20.7		66.5		61.5
Professional services and other		0.1		0.2		0.4		0.8
Total Powerpay revenue		22.7		20.9		66.9		62.3
Total Cloud revenue		276.9		219.6		791.8		631.7
Bureau
Recurring		33.4		34.0		105.6		101.4
Professional services and other		5.3		3.6		12.7		9.0
Total Bureau revenue		38.7		37.6		118.3		110.4
Total revenue	$	315.6	$	257.2	$	910.1	$	742.1

Recurring revenue includes float revenue of $21.3 million and $9.9 million for the three months ended September 30, 2022, and 2021, respectively, and $47.4 million and $31.0 million for the nine months ended September 30, 2022, and 2021, respectively.

Contract Balances

A contract asset is generally recorded when revenue recognized for professional service performance obligations exceed the contractual amount of billings for implementation related professional services. Contract assets were $69.2 million and $62.7 million as of September 30, 2022, and December 31, 2021, respectively. Contract assets expected to be recognized in revenue within twelve months are included within Prepaid expenses and other current assets, with the remaining contract assets included within Other assets on our condensed consolidated balance sheets.

Deferred Revenue

Deferred revenue primarily consists of payments received in advance of revenue recognition. The changes in deferred revenue were as follows:

	Nine Months Ended September 30,
	2022			2021
	(Dollars in millions)
Deferred revenue, beginning of period	$	48.7		$	24.4
New billings		483.2			399.6
Acquired billings		—			17.0
Revenue recognized		(486.5	)		(394.0	)
Effect of exchange rate		(2.8	)		(0.5	)
Deferred revenue, end of period	$	42.6		$	46.5

22 | Q3 2022 Form 10-Q

Transaction Price for Remaining Performance Obligations

As of September 30, 2022, approximately $1,076.3 million of revenue is expected to be recognized over the next three years from remaining performance obligations, which represents contracted revenue for recurring services and fixed price professional services, primarily implementation services, that has not yet been recognized, including deferred revenue and unbilled amounts that will be recognized as revenue in future periods. In accordance with the practical expedient provided in ASC Topic 606, performance obligations that are billed and recognized as they are delivered, primarily professional services contracts that are on a time and materials basis, are excluded from the transaction price for remaining performance obligations disclosed above.

11. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows:

	Foreign Currency Translation Adjustment			Unrealized Gain (Loss) from Invested Customer Funds			Pension Liability Adjustment			Total
	(Dollars in millions)
Balance as of December 31, 2021	$	(177.3	)	$	2.8		$	(150.3	)	$	(324.8	)
Other comprehensive (loss) income before income taxes and reclassifications		(80.3	)		(139.9	)		0.2			(220.0	)
Income tax benefit (expense)		—			37.2			(2.4	)		34.8
Reclassifications to earnings		—			—			8.7			8.7
Other comprehensive (loss) income		(80.3	)		(102.7	)		6.5			(176.5	)
Balance as of September 30, 2022	$	(257.6	)	$	(99.9	)	$	(143.8	)	$	(501.3	)

12. Income Taxes

Our income tax provision represents federal, state, and international taxes on our income recognized for financial statement purposes and includes the effects of temporary differences between financial statement income and income recognized for tax return purposes. Deferred tax assets and liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities. We record a valuation allowance to reduce our deferred tax assets to reflect the net deferred tax assets that we believe will be realized. In assessing the likelihood that we will be able to recover our deferred tax assets and the need for a valuation allowance, we consider all available evidence, both positive and negative, including historical levels of pre-tax book income, expiration of net operating losses, changes in our debt and equity structure, expectations and risks associated with estimates of future taxable income, ongoing prudent and feasible tax planning strategies, as well as current tax laws. As of September 30, 2022, we have a valuation allowance of $45.4 million against certain deferred tax assets consisting primarily of $12.6 million attributable to state net operating loss carryovers, and $31.0 million attributable to deferred tax assets recorded as part of a previous acquisition.

We recorded an income tax expense of $7.8 million during the nine months ended September 30, 2022, consisting of tax expense of $9.5 million attributable to share-based compensation, $8.5 million attributable to the U.S Global Intangible Low Tax Income ("GILTI"), and $2.5 million attributable to the U.S. Base Erosion and Anti-Abuse Tax ("BEAT"), partially offset by a $12.7 million tax benefit from current operations.

There were no unrecognized tax benefits as of September 30, 2022, and December 31, 2021. We make adjustments to these reserves when facts and circumstances change, such as the closing of tax audits or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2017.

23 | Q3 2022 Form 10-Q

13. Leases

Supplemental balance sheet information related to leases was as follows:

Lease Type	Balance Sheet Classification	September 30, 2022		December 31, 2021
		(Dollars in millions)
ASSETS
Operating lease assets	Trade and other receivables, net	$	0.1	$	0.2
Operating lease assets	Prepaid expenses and other current assets		2.6		3.4
Operating lease assets	Right of use lease asset		27.5		29.4
Financing lease assets	Property, plant, and equipment, net		7.3		8.3
Total lease assets		$	37.5	$	41.3
LIABILITIES
Current
Financing lease liabilities	Current portion of long-term debt	$	1.3	$	1.5
Operating lease liabilities	Current portion of long-term lease liabilities		14.9		11.3
Noncurrent
Financing lease liabilities	Long-term debt, less current portion		7.5		8.1
Operating lease liabilities	Long-term lease liabilities, less current portion		23.0		32.7
Total lease liabilities		$	46.7	$	53.6

The components of lease expense were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Lease Cost	(Dollars in millions)
Operating lease cost	$	2.5		$	1.3		$	7.4		$	3.9
Financing lease cost:
Depreciation of lease assets		0.3			0.3			1.0			1.0
Interest on lease liabilities		0.1			0.1			0.3			0.2
Sublease income		(0.1	)		(0.6	)		(0.3	)		(1.9	)
Total lease cost, net	$	2.8		$	1.1		$	8.4		$	3.2

14. Commitments and Contingencies

Legal Matters

We are subject to claims and a number of judicial and administrative proceedings considered normal in the course of our current and past operations, including employment-related disputes, contract disputes, disputes with our competitors, intellectual property disputes, government audits and proceedings, customer disputes, and tort claims. In some proceedings, the claimant seeks damages as well as other relief, which, if granted, would require substantial expenditures on our part.

Our general terms and conditions in customer contracts frequently include a provision indicating we will indemnify and hold our customers harmless from and against any and all claims alleging that the services and materials furnished by us violate any third party’s patent, trade secret, copyright, or other intellectual property right. We are not aware of any material pending litigation concerning these indemnifications.

Some of these matters raise difficult and complex factual and legal issues and are subject to many uncertainties, including the facts and circumstances of each particular action, and the jurisdiction, forum, and law under which each action is proceeding. Because of these complexities, final disposition of some of these proceedings may not occur for several years. As such, we are not always able to estimate the amount of our possible future liabilities, if any.

There can be no certainty that we may not ultimately incur charges in excess of presently established or future financial accruals or insurance coverage. Although occasional adverse decisions or settlements may occur, it is management’s opinion that the final disposition of these proceedings will not, considering the merits of the claims and available resources or reserves and insurance, and based upon the facts and circumstances currently known, have a material adverse effect on our financial position or results of operations.

24 | Q3 2022 Form 10-Q

15. Net Loss per Share

We compute net loss per share of common stock using the treasury stock method. The basic and diluted net loss per share computations were calculated as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(Dollars in millions, except share and per share data)
Numerator:
Net loss	$	(21.0	)	$	(20.9	)	$	(68.2	)	$	(65.9	)
Denominator:
Weighted-average shares outstanding - basic		153,184,846			150,450,595			152,691,008			149,083,666
Effect of dilutive equity instruments		—			—			—			—
Weighted-average shares outstanding - diluted		153,184,846			150,450,595			152,691,008			149,083,666
Net loss per share - basic	$	(0.14	)	$	(0.14	)	$	(0.45	)	$	(0.44	)
Net loss per share - diluted	$	(0.14	)	$	(0.14	)	$	(0.45	)	$	(0.44	)

The following potentially dilutive weighted-average shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Stock options		5,356,629		5,709,780		5,633,051		5,594,020
Restricted stock units		1,831,846		564,902		1,359,481		555,521
Performance stock units		1,430,383		912,970		1,370,918		735,166

The shares underlying the conversion option in the Convertible Senior Notes were not considered in the calculation of diluted net loss per share as the effect would have been anti-dilutive. Based on the initial conversion price, the entire outstanding principal amount of the Convertible Senior Notes as of September 30, 2022 would have been convertible into approximately 4.3 million shares of our common stock. Since we expect to settle the principal amount of the Convertible Senior Notes in cash, we use the treasury stock method for calculating any potential dilutive effect on diluted net income per share, if applicable. As a result, only the amount by which the conversion value exceeds the aggregate principal amount of the Convertible Senior Notes (the “conversion spread”) is considered in the diluted earnings per share computation. The conversion spread has a dilutive impact on diluted net income per share when the average market price of our common stock for a given period exceeds the initial conversion price of $132.20 per share for the Convertible Senior Notes. We excluded the potentially dilutive effect of the conversion spread of the Convertible Senior Notes as the average market price of our common stock during the three and nine months ended September 30, 2022 was less than the conversion price of the Convertible Senior Notes. In connection with the issuance of the Convertible Senior Notes, we entered into Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive.

25 | Q3 2022 Form 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion and analysis of our financial condition and results of operations as of, and for, the periods presented and should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto included elsewhere in this report and with our audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2022 (our “2021 Form 10-K”). This discussion and analysis contains forward-looking statements, including statements regarding industry outlook, our expectations for the future of our business, and our liquidity and capital resources as well as other non-historical statements. These statements are based on current expectations and are subject to numerous risks and uncertainties, including but not limited to the risks and uncertainties described in Part II, Item 1A, “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements.” Our actual results may differ materially from those contained in or implied by these forward-looking statements. Any reference to a “Note” in this discussion relates to the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report unless otherwise indicated.

Overview

Ceridian is a global human capital management (“HCM”) software company. We categorize our solutions into two categories: Cloud and Bureau solutions. Cloud revenue is generated from HCM solutions that are delivered via two cloud offerings: Dayforce, our flagship cloud HCM platform, and Powerpay, a cloud human resources (“HR”) and payroll solution for the Canadian small business market. We also continue to support customers using our legacy North America Bureau solutions, which we generally stopped actively selling to new customers following the acquisition of Dayforce, and customers using our acquired Bureau solutions in Asia Pacific Japan ("APJ"). We invest in maintenance and necessary updates to support our Bureau customers and continue to migrate them to Dayforce. Revenue from our Cloud and Bureau solutions includes investment income generated from holding customer funds before funds are remitted to taxing authorities, also referred to as float revenue or float.

Dayforce provides HR, payroll, benefits, workforce management, and talent management functionality. Our platform is used by organizations of all sizes, from small businesses to global organizations, regardless of industry, to optimize management of the entire employee lifecycle, including attracting, engaging, paying, deploying, and developing their people. Dayforce was built as a single application from the ground up that combines a modern, consumer-grade user experience with proprietary application architecture, including a single employee record and a rules engine spanning all areas of HCM. Dayforce provides continuous real-time calculations across all modules to enable, for example, payroll administrators access to data through the entire pay period, and managers access to real-time data to optimize work schedules. Our platform is designed to make work life better for our customers and their employees by improving HCM decision-making processes, streamlining workflows, revealing strategic organizational insights, and simplifying legislative compliance. The platform is designed to ease administrative work for both employees and managers, creating opportunities for companies to increase employee engagement. We sell Dayforce through our direct sales force on a subscription PEPM basis. Our subscriptions are typically structured with an initial fixed term of between three and five years, with evergreen renewal thereafter.

Dayforce Wallet is a digital wallet for customers' employees on the Dayforce platform, which was launched in the U.S. in 2020 and Canada in 2021. The Dayforce Wallet gives our customers’ employees greater control over their financial well-being by providing them with instant access to their earnings. This on-demand pay feature allows employees more choice over when they get paid by making any day payday. Dayforce Wallet enables workers to access their already-earned wages anytime during the pay period, net of taxes, withholdings and other payroll deductions. Leveraging Dayforce’s continuous pay calculations, Dayforce Wallet processes a same-day payroll each time a worker requests their pay. The solution is compliant with federal, state, and local remittances and requires no changes to payroll processing including the funding, timing, and close-out of pay. The on-demand wages are loaded onto a paycard, which customers’ employees can use anywhere credit or debit cards are accepted, generating interchange fee revenue. The Dayforce Wallet mobile app makes it easy for customers' employees to check their pay deposits, account balance, and transaction history. As of September 30, 2022, we had more than 1,340 customers signed onto Dayforce Wallet with over 750 customers live on the product. As of September 30, 2022, the average registration rate was 45% of all eligible employees.

26 | Q3 2022 Form 10-Q

Our Business Model

Our business model focuses on supporting the rapid growth of Dayforce and maximizing the lifetime value of our Dayforce customer relationships. Due to our subscription model, where we recognize subscription revenues ratably over the term of the subscription period, and our high customer retention rates, we have a high level of visibility into our future revenues. The profitability of a customer depends, in large part, on how long they have been a customer. We estimate that it takes approximately two years before we are able to recover our implementation, customer acquisition, and other direct costs on a new Dayforce customer contract.

Over the lifetime of the customer relationship, we have the opportunity to realize additional PEPM revenue, both as the customer grows or rolls out the Dayforce solution to additional employees, and also by selling additional functionality to existing customers that do not currently utilize our full suite of capabilities. We also incur costs to manage the account, to retain customers, and to sell additional functionality. These costs, however, are significantly less than the costs initially incurred to acquire and to take customers live.

Global Events

In March 2020, the World Health Organization declared the outbreak of coronavirus (COVID-19) to be a pandemic. The global spread of the COVID-19 pandemic created significant global volatility, uncertainty, and economic disruption. We experienced curtailed customer demand, primarily as a result of declining employment levels at our customers in certain sectors, such as retail and hospitality, as well as lower customer utilization of professional services, due to the effects of the COVID-19 pandemic. While we experienced adverse impacts on our revenue in 2021 and 2020, we ended 2021 with employment levels at our customers in-line with pre-pandemic levels. Additionally, the federal funds rate cuts by the U.S. Federal Reserve and the overnight rate target by the Bank of Canada in March 2020 had negative effects on our float revenue in 2021 and 2020. Conversely, the federal funds rate hikes by the U.S. Federal Reserve and the overnight rate target by the Bank of Canada in 2022 has had positive effects on our float revenue in 2022. The continued, broader implications of the pandemic on our results of operations and overall financial performance will depend on numerous evolving factors. Consequently, the extent of any potential future impacts of COVID-19 remain uncertain and cannot be reasonably estimated.

In February 2022, the Russian Federation (“Russia”) and Belarus commenced a military action with the country of Ukraine. We are closely monitoring the unfolding events due to the Russia-Ukraine conflict and its regional and global ramifications. We do not have operations in Russia, Ukraine or Belarus. We are monitoring any broader economic impact from the current crisis, including increased cybersecurity risks. The specific impact on our financial condition, results of operations, and cash flows is not material as of the date of these financial statements. However, to the extent that such military action spreads to other countries, intensifies, or otherwise remains active, such action could adversely affect our business, financial condition, and results of operations.

Recent Events

Acquisitions

On March 1, 2021, we completed the purchase of 100% of the outstanding shares of Ascender HCM Pty Limited (“Ascender”) for $359.6 million. Ascender is a payroll and HR solutions provider in the APJ region.

On April 30, 2021, we acquired 100% of the outstanding shares of O5 Systems, Inc. dba Ideal (“Ideal”) for $41.4 million. Ideal is a talent intelligence software provider based in Toronto, Ontario, Canada.

On October 4, 2021, we completed the acquisition of certain assets and liabilities of DataFuzion, for $12.5 million in cash consideration and future contingent consideration payments. DataFuzion designs, implements, and supports customer specific data solutions that integrate HCM and ERP systems on their FUZE platform.

On December 3, 2021, we completed the acquisition of 100% of the outstanding interests in ADAM HCM for $34.5 million. ADAM HCM is a payroll and HCM company in Latin America.

27 | Q3 2022 Form 10-Q

Financing and Other

In March 2021, we issued $575.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2026. In connection with the pricing of the Convertible Senior Notes, we entered into capped call transactions with the option counterparties.

How We Assess Our Performance

In assessing our performance, we consider a variety of annual and quarterly performance indicators in addition to revenue and net income. Set forth below are descriptions of our quarterly key performance measures. Additional information on our annual performance measures is described in Part II, “Item 7. Management's Discussion and Analysis" under the heading "How We Assess Our Performance" contained in our 2021 Form 10-K. Please refer to the "Non-GAAP Measures" and “Results of Operations” sections below for further description and definitions of certain performance indicators which are considered non-GAAP measures.

Live Dayforce Customers

We use the number of live Dayforce customers as an indicator of future revenue and the overall performance of the business and to assess the performance of our implementation services.

Dayforce Recurring Revenue Per Customer

We use Dayforce recurring revenue per customer, a non-GAAP financial measure, as an indicator of the average size of our Dayforce recurring customer, which we believe is also useful to management and investors. We calculate and monitor Dayforce recurring revenue per customer on a quarterly basis. Our Dayforce recurring revenue per customer may fluctuate as a result of a number of factors, including the number of live Dayforce customers and the number of customers purchasing the full HCM suite.

Constant Currency Revenue

We present revenue on a constant currency basis to assess how our underlying business performed, excluding the effect of foreign currency rate fluctuations. We believe this non-GAAP financial measure is useful to management and investors. The average U.S. dollar to Canadian dollar foreign exchange rate was $1.30, with a daily range of $1.28 to $1.38, for the three months ended September 30, 2022, compared to $1.26, with a daily range of $1.23 to $1.29 for the three months ended September 30, 2021. As of September 30, 2022, the U.S. dollar to Canadian dollar foreign exchange rate was $1.37.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin

We believe that EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin, non-GAAP financial measures, are useful to management and investors as supplemental measures to evaluate our overall operating performance. Adjusted EBITDA and Adjusted EBITDA margin are components of our management incentive plan and are used by management to assess performance and to compare our operating performance to our competitors. Management believes that EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin are helpful in highlighting management performance trends because EBITDA, Adjusted EBITDA and Adjusted EBITDA margin exclude the results of decisions that are outside the normal course of our business operations.

28 | Q3 2022 Form 10-Q

Results of Operations

Three Months Ended September 30, 2022 Compared With Three Months Ended September 30, 2021

	Three Months Ended September 30,						Increase/(Decrease)						% of Revenue
	2022			2021			Amount			%			2022			2021
	(Dollars in millions)
Revenue:
Recurring
Cloud	$	230.4		$	181.0		$	49.4			27.3	%		73.0	%		70.4	%
Bureau		33.4			34.0			(0.6	)		(1.8	)%		10.6	%		13.2	%
Total recurring		263.8			215.0			48.8			22.7	%		83.6	%		83.6	%
Professional services and other		51.8			42.2			9.6			22.7	%		16.4	%		16.4	%
Total revenue		315.6			257.2			58.4			22.7	%		100.0	%		100.0	%
Cost of revenue:
Recurring
Cloud		64.3			49.4			14.9			30.2	%		20.4	%		19.2	%
Bureau		12.8			16.6			(3.8	)		(22.9	)%		4.1	%		6.5	%
Total recurring		77.1			66.0			11.1			16.8	%		24.4	%		25.7	%
Professional services and other		61.0			48.9			12.1			24.7	%		19.3	%		19.0	%
Product development and management		44.8			36.6			8.2			22.4	%		14.2	%		14.2	%
Depreciation and amortization		13.7			12.6			1.1			8.7	%		4.3	%		4.9	%
Total cost of revenue		196.6			164.1			32.5			19.8	%		62.3	%		63.8	%
Gross profit		119.0			93.1			25.9			27.8	%		37.7	%		36.2	%
Selling, general, and administrative		122.7			109.1			13.6			12.5	%		38.9	%		42.4	%
Operating loss		(3.7	)		(16.0	)		12.3			76.9	%		(1.2	)%		(6.2	)%
Interest expense, net		7.4			10.0			(2.6	)		(26.0	)%		2.3	%		3.9	%
Other expense, net		5.9			3.4			2.5			73.5	%		1.9	%		1.3	%
Loss before income taxes		(17.0	)		(29.4	)		12.4			42.2	%		(5.4	)%		(11.4	)%
Income tax expense (benefit)		4.0			(8.5	)		12.5			147.1	%		1.3	%		(3.3	)%
Net loss	$	(21.0	)	$	(20.9	)	$	(0.1	)		(0.5	)%		(6.7	)%		(8.1	)%
Net profit margin (a)		(6.7	)%		(8.1	)%		1.5	%		18.1	%
Adjusted EBITDA (b)	$	63.5		$	39.4		$	24.1			61.2	%		20.1	%		15.3	%
Adjusted EBITDA margin (b)		20.1	%		15.3	%		4.8	%		31.3	%

(a)Net profit margin is determined by calculating the percentage that net income (loss) is of total revenue.

(b)Please refer to the “Non-GAAP Measures” section for a discussion and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP financial measures.

29 | Q3 2022 Form 10-Q

Revenue. The following table sets forth certain information regarding our revenues for the periods presented:

	Three Months Ended September 30,				Percentage change in revenue as reported			Impact of changes in foreign currency (a)			Percentage change in revenue on constant currency basis (a)
	2022		2021		2022 vs. 2021						2022 vs. 2021
	(Dollars in millions)
Revenue:
Dayforce recurring, excluding float	$	191.0	$	153.0		24.8	%		(1.9	)%		26.7	%
Dayforce float		16.8		7.3		130.1	%		(2.8	)%		132.9	%
Total Dayforce recurring		207.8		160.3		29.6	%		(2.0	)%		31.6	%
Powerpay recurring, excluding float		19.3		18.7		3.2	%		(3.8	)%		7.0	%
Powerpay float		3.3		2.0		65.0	%		(5.0	)%		70.0	%
Total Powerpay recurring		22.6		20.7		9.2	%		(3.8	)%		13.0	%
Total Cloud recurring		230.4		181.0		27.3	%		(2.1	)%		29.4	%
Dayforce professional services and other		46.4		38.4		20.8	%		(2.9	)%		23.7	%
Powerpay professional services and other		0.1		0.2		(50.0	)%		(—	)%		(50.0	)%
Total Cloud professional services and    other		46.5		38.6		20.5	%		(2.8	)%		23.3	%
Total Cloud revenue		276.9		219.6		26.1	%		(2.3	)%		28.4	%
Bureau recurring, excluding float		32.2		33.4		(3.6	)%		(4.5	)%		0.9	%
Bureau float		1.2		0.6		100.0	%		(—	)%		100.0	%
Total Bureau recurring		33.4		34.0		(1.8	)%		(4.4	)%		2.6	%
Bureau professional services and other		5.3		3.6		47.2	%		(8.4	)%		55.6	%
Total Bureau revenue		38.7		37.6		2.9	%		(4.8	)%		7.7	%
Total revenue	$	315.6	$	257.2		22.7	%		(2.6	)%		25.3	%
Dayforce	$	254.2	$	198.7		27.9	%		(2.1	)%		30.0	%
Powerpay		22.7		20.9		8.6	%		(3.8	)%		12.4	%
Total Cloud revenue	$	276.9	$	219.6		26.1	%		(2.3	)%		28.4	%
Dayforce, excluding float	$	237.4	$	191.4		24.0	%		(2.1	)%		26.1	%
Powerpay, excluding float		19.4		18.9		2.6	%		(3.7	)%		6.3	%
Cloud revenue, excluding float		256.8		210.3		22.1	%		(2.2	)%		24.3	%
Cloud float		20.1		9.3		116.1	%		(3.3	)%		119.4	%
Total Cloud revenue	$	276.9	$	219.6		26.1	%		(2.3	)%		28.4	%
Cloud recurring, excluding float	$	210.3	$	171.7		22.5	%		(2.1	)%		24.6	%
Bureau recurring, excluding float		32.2		33.4		(3.6	)%		(4.5	)%		0.9	%
Total recurring, excluding float		242.5		205.1		18.2	%		(2.5	)%		20.7	%
Total revenue, excluding float	$	294.3	$	247.3		19.0	%		(2.6	)%		21.6	%

(a)We have calculated revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period.

Total revenue increased $58.4 million, or 22.7%, to $315.6 million for the three months ended September 30, 2022, compared to $257.2 million for the three months ended September 30, 2021. This increase was primarily attributable to the increase in live Dayforce customers, the increase in Dayforce recurring revenue per customer, and the increase in float revenue. The number of live Dayforce customers increased 11.9% to 5,848 at September 30, 2022 from 5,227 at September 30, 2021.1 Additionally, for the trailing twelve months ended September 30, 2022, Dayforce recurring revenue per customer grew to $118,348 compared to $107,576 for the comparable period in 2021.2

1 Excluding the 2021 acquisitions of Ascender and ADAM HCM

2 Excluding float revenue, the impact of lower employment levels in 2021 and 2020 due to the COVID-19 pandemic, Ascender and ADAM HCM revenue and on a constant currency basis

30 | Q3 2022 Form 10-Q

The increase in Dayforce recurring revenue per customer is driven by the growing average size of our customers, as we have been expanding within the enterprise segment, as well as more customers purchasing the comprehensive suite of Dayforce functionality. The increase in float revenue is driven by the 12.8% increase in average float balance for our customer funds for the three months ended September 30, 2022, which increased to $3,871.4 million, compared to $3,432.6 million for the three months ended September 30, 2021, in addition to an increase in average yield of 103 basis points compared to the three months ended September 30, 2021.

Cost of revenue. Total cost of revenue for the three months ended September 30, 2022, was $196.6 million, an increase of $32.5 million, or 19.8%, compared to the three months ended September 30, 2021. Recurring cost of revenue for the three months ended September 30, 2022, increased $11.1 million, or 16.8%, compared with the three months ended September 30, 2021, primarily due to the increase in recurring revenue and the integration of our APJ acquisitions. Further, the increase in recurring cost of revenue is primarily due to additional labor-related and hosting costs incurred to support the growing Dayforce customer base globally. Professional services and other cost of revenue increased $12.1 million, or 24.7%, for the three months ended September 30, 2022, compared to the three months ended September 30, 2021, primarily due to costs incurred to take new customers live as well as expansion of our capabilities to serve international customers.

Product development and management expense increased $8.2 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021. The increase primarily reflects additional personnel costs and share-based compensation expense. For the three months ended September 30, 2022, and 2021, our investment in software development was $42.0 million and $35.1 million, respectively, consisting of $24.3 million and $22.2 million, of research and development expense, and $17.7 million and $12.9 million in capitalized software development costs, respectively.

Depreciation and amortization expense associated with cost of revenue increased by $1.1 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021, as we continue to capitalize Dayforce related and other development costs and subsequently amortize these costs.

Gross profit. The following table presents total gross margin and solution gross margins for the periods presented:

	Three Months Ended September 30,
	2022			2021
Total gross margin		37.7	%		36.2	%
Gross margin by solution:
Cloud recurring		72.1	%		72.7	%
Bureau recurring		61.7	%		51.2	%
Professional services and other		(17.8	)%		(15.9	)%

Total gross margin is defined as total gross profit as a percentage of total revenue, which is inclusive of product development and management costs, as well as depreciation and amortization associated with cost of revenue. Gross margin for each solution in the table above is defined as total revenue less cost of revenue for the applicable solution as a percentage of total revenue for that related solution, which is exclusive of any product development and management or depreciation and amortization cost allocations.

Total gross margin for the three months ended September 30, 2022 increased 150 basis points compared to total gross margin for the three months ended September 30, 2021 and gross profit increased by $25.9 million, or 27.8% for the three months ended September 30, 2022 compared to the three months ended September 30, 2021, primarily due to the $58.4 million or 22.7% increase in revenue which outpaced the increase in cost of revenue.

31 | Q3 2022 Form 10-Q

Cloud recurring gross margin was 72.1% for the three months ended September 30, 2022, compared to 72.7% for the three months ended September 30, 2021. Excluding the impact of share-based compensation and related employer taxes, and severance expense, cloud recurring gross margin increased by 50 basis points to 74.8%. The increase in cloud recurring gross margin and adjusted cloud recurring gross margin was primarily due to the increase in float revenue. Bureau recurring gross margin increased from 51.2% for the three months ended September 30, 2021, to 61.7% for the three months ended September 30, 2022. Professional services and other gross margin was (17.8)% for the three months ended September 30, 2022, compared to (15.9)% for the three months ended September 30, 2021, reflecting additional costs to take new customers live, expansion of our capabilities to serve international customers, and increased share-based compensation expense.

Selling, general, and administrative expense. Selling, general, and administrative expense increased $13.6 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021. This increase reflects an increase of $7.1 million in general and administrative expense and $6.5 million in sales and marketing expense, both of which are primarily driven by employee-related costs. The increase in general and administrative expense is also driven by the remeasurement of the DataFuzion contingent consideration. The increase in sales and marketing expense primarily represents investment in our sales force in order to support our growth initiatives.

Interest expense, net. Interest expense, net was $7.4 million and $10.0 million for the three months ended September 30, 2022, and 2021, respectively. The decrease was primarily due to the adoption of ASU 2020-06 in 2022 which eliminated the non-cash interest expense related to the amortization of the debt discount on our Convertible Senior Notes, partially offset by an increase in interest expense on our Term Debt due to the increase in LIBOR rates.

Other expense, net. For the three months ended September 30, 2022, and 2021, we incurred other expense, net of $5.9 million and $3.4 million, respectively. Other expense, net was comprised of foreign currency translation loss and net periodic pension expense for the three months ended September 30, 2022 and 2021.

Income tax expense (benefit). For the three months ended September 30, 2022, and 2021, we recorded income tax expense of $4.0 million and income tax benefit of $8.5 million, respectively. The $12.5 million increase in income tax expense was primarily due to a $6.9 million increase attributable to share-based compensation and a $2.2 million increase attributable to the U.S. GILTI.

Net loss. We realized net loss of $21.0 million for the three months ended September 30, 2022, compared to $20.9 million for the three months ended September 30, 2021. Net loss remained relatively consistent, with an increase in revenue, including float revenue, as well as the reduction in interest expense and other expense, offset by higher investments in product development and selling capabilities, share-based compensation, and further integration of the APJ acquisitions. For the three months ended September 30, 2022 and 2021, net profit margin was (6.7)% and (8.1)%, respectively.

Adjusted EBITDA. Adjusted EBITDA increased by $24.1 million to $63.5 million, for the three months ended September 30, 2022, compared to the three months ended September 30, 2021, and Adjusted EBITDA margin was 20.1% for the three months ended September 30, 2022, compared to 15.3% for the three months ended September 30, 2021. Please refer to the “Non-GAAP Measures” section for a discussion and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin and additional information on the excluded items.

32 | Q3 2022 Form 10-Q

Nine Months Ended September 30, 2022 Compared With Nine Months Ended September 30, 2021

	Nine Months Ended September 30,						Increase/(Decrease)						% of Revenue
	2022			2021			Amount			%			2022			2021
	(Dollars in millions)
Revenue:
Recurring
Cloud	$	657.2		$	517.7		$	139.5			26.9	%		72.2	%		69.8	%
Bureau		105.6			101.4			4.2			4.1	%		11.6	%		13.7	%
Total recurring		762.8			619.1			143.7			23.2	%		83.8	%		83.4	%
Professional services and other		147.3			123.0			24.3			19.8	%		16.2	%		16.6	%
Total revenue		910.1			742.1			168.0			22.6	%		100.0	%		100.0	%
Cost of revenue:
Recurring
Cloud		189.1			143.4			45.7			31.9	%		20.8	%		19.3	%
Bureau		45.3			47.7			(2.4	)		(5.0	)%		5.0	%		6.4	%
Total recurring		234.4			191.1			43.3			22.7	%		25.8	%		25.8	%
Professional services and other		172.6			140.9			31.7			22.5	%		19.0	%		19.0	%
Product development and management		125.0			94.2			30.8			32.7	%		13.7	%		12.7	%
Depreciation and amortization		40.0			37.5			2.5			6.7	%		4.4	%		5.1	%
Total cost of revenue		572.0			463.7			108.3			23.4	%		62.9	%		62.5	%
Gross profit		338.1			278.4			59.7			21.4	%		37.1	%		37.5	%
Selling, general, and administrative		367.2			316.5			50.7			16.0	%		40.3	%		42.6	%
Operating loss		(29.1	)		(38.1	)		9.0			23.6	%		(3.2	)%		(5.1	)%
Interest expense, net		19.9			25.5			(5.6	)		(22.0	)%		2.2	%		3.4	%
Other expense, net		11.4			16.2			(4.8	)		(29.6	)%		1.3	%		2.2	%
Loss before income taxes		(60.4	)		(79.8	)		19.4			24.3	%		(6.6	)%		(10.8	)%
Income tax expense (benefit)		7.8			(13.9	)		21.7			(156.1	)%		0.9	%		(1.9	)%
Net loss	$	(68.2	)	$	(65.9	)	$	(2.3	)		(3.5	)%		(7.5	)%		(8.9	)%
Net profit margin (a)		(7.5	)%		(8.9	)%		1.4	%		15.6	%
Adjusted EBITDA (b)	$	182.7		$	123.8		$	58.9			47.6	%		20.1	%		16.7	%
Adjusted EBITDA margin (b)		20.1	%		16.7	%		3.4	%		20.3	%

(a)Net profit margin is determined by calculating the percentage that net income (loss) is of total revenue.

(b)Please refer to the “Non-GAAP Measures” section for a discussion and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP financial measures.

33 | Q3 2022 Form 10-Q

Revenue. The following table sets forth certain information regarding our revenues for the periods presented:

	Nine Months Ended September 30,				Percentage change in revenue as reported			Impact of changes in foreign currency (a)			Percentage change in revenue on constant currency basis (a)
	2022		2021		2022 vs. 2021						2022 vs. 2021
	(Dollars in millions)
Revenue:
Dayforce recurring, excluding float	$	554.5	$	433.7		27.9	%		(1.0	)%		28.9	%
Dayforce float		36.2		22.5		60.9	%		(1.8	)%		62.7	%
Total Dayforce recurring		590.7		456.2		29.5	%		(1.1	)%		30.6	%
Powerpay recurring, excluding float		58.3		55.6		4.9	%		(2.8	)%		7.7	%
Powerpay float		8.2		5.9		39.0	%		(3.4	)%		42.4	%
Total Powerpay recurring		66.5		61.5		8.1	%		(3.0	)%		11.1	%
Total Cloud recurring		657.2		517.7		26.9	%		(1.4	)%		28.3	%
Dayforce professional services and other		134.2		113.2		18.6	%		(2.1	)%		20.7	%
Powerpay professional services and other		0.4		0.8		(50.0	)%		(—	)%		(50.0	)%
Total Cloud professional services and other		134.6		114.0		18.1	%		(2.1	)%		20.2	%
Total Cloud revenue		791.8		631.7		25.3	%		(1.5	)%		26.8	%
Bureau recurring, excluding float		102.6		98.8		3.8	%		(3.2	)%		7.0	%
Bureau float		3.0		2.6		15.4	%		(—	)%		15.4	%
Total Bureau recurring		105.6		101.4		4.1	%		(3.1	)%		7.2	%
Bureau professional services and other		12.7		9.0		41.1	%		(5.6	)%		46.7	%
Total Bureau revenue		118.3		110.4		7.2	%		(3.2	)%		10.4	%
Total revenue	$	910.1	$	742.1		22.6	%		(1.8	)%		24.4	%
Dayforce	$	724.9	$	569.4		27.3	%		(1.3	)%		28.6	%
Powerpay		66.9		62.3		7.4	%		(2.9	)%		10.3	%
Total Cloud revenue	$	791.8	$	631.7		25.3	%		(1.5	)%		26.8	%
Dayforce, excluding float	$	688.7	$	546.9		25.9	%		(1.3	)%		27.2	%
Powerpay, excluding float		58.7		56.4		4.1	%		(2.8	)%		6.9	%
Cloud revenue, excluding float		747.4		603.3		23.9	%		(1.4	)%		25.3	%
Cloud float		44.4		28.4		56.3	%		(2.2	)%		58.5	%
Total Cloud revenue	$	791.8	$	631.7		25.3	%		(1.5	)%		26.8	%
Cloud recurring, excluding float	$	612.8	$	489.3		25.2	%		(1.3	)%		26.5	%
Bureau recurring, excluding float		102.6		98.8		3.8	%		(3.2	)%		7.0	%
Total recurring, excluding float		715.4		588.1		21.6	%		(1.6	)%		23.2	%
Total revenue, excluding float	$	862.7	$	711.1		21.3	%		(1.7	)%		23.0	%

(a)We have calculated revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period.

Total revenue increased $168.0 million, or 22.6%, to $910.1 million for the nine months ended September 30, 2022, compared to $742.1 million for the nine months ended September 30, 2021. This increase was primarily attributable to the increase in live Dayforce customers, the increase in Dayforce recurring revenue per customer, revenue in 2022 from businesses acquired during 2021, and the increase in float revenue. The number of live Dayforce customers increased 11.9% to 5,848 at September 30, 2022 from 5,227 at September 30, 2021.1 Additionally, for the trailing twelve months ended September 30, 2022, Dayforce recurring revenue per customer grew to $118,348 compared to $107,576 for the comparable period in 2021.2

1 Excluding the 2021 acquisitions of Ascender and ADAM HCM

2 Excluding float revenue, the impact of lower employment levels in 2021 and 2020 due to the COVID-19 pandemic, Ascender and ADAM HCM revenue and on a constant currency basis

34 | Q3 2022 Form 10-Q

The increase in Dayforce recurring revenue per customer is driven by the growing average size of our customers, as we have been expanding within the enterprise segment, as well as more customers purchasing the comprehensive suite of Dayforce functionality. The increase in float revenue is driven by the 14.5% increase in average float balance for our customer funds for the nine months ended September 30, 2022, which increased to $4,399.7 million, compared to $3,841.7 million for the nine months ended September 30, 2021, in addition to an increase in average yield of 35 basis points compared to the nine months ended September 30, 2021.

Cost of revenue. Total cost of revenue for the nine months ended September 30, 2022, was $572.0 million, an increase of $108.3 million, or 23.4%, compared to the nine months ended September 30, 2021. Recurring cost of revenue for the nine months ended September 30, 2022, increased $43.3 million, or 22.7%, compared with the nine months ended September 30, 2021, primarily due to the integration of our APJ acquisitions, specifically $18.6 million of severance and restructuring costs associated with re-balancing our resources across our global footprint. Further, the increase in recurring cost of revenue is due to additional costs related to global expansion and costs to support the growing Dayforce customer base. Professional services and other cost of revenue increased $31.7 million, or 22.5% for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, primarily due to costs incurred to take new customers live as well as expansion of our capabilities to serve international customers.

Product development and management expense increased $30.8 million for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021. The increase reflects additional personnel costs, including share-based compensation and severance. For the nine months ended September 30, 2022, and 2021, our investment in software development was $118.2 million and $94.4 million, respectively, consisting of $67.7 million and $56.2 million, of research and development expense, and $50.5 million and $38.2 million in capitalized software development costs, respectively.

Depreciation and amortization expense associated with cost of revenue increased by $2.5 million for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, as we continue to capitalize Dayforce related and other development costs and subsequently amortize these costs.

Gross profit. The following table presents total gross margin and solution gross margins for the periods presented:

	Nine Months Ended September 30,
	2022			2021
Total gross margin		37.1	%		37.5	%
Gross margin by solution:
Cloud recurring		71.2	%		72.3	%
Bureau recurring		57.1	%		53.0	%
Professional services and other		(17.2	)%		(14.6	)%

Total gross margin is defined as total gross profit as a percentage of total revenue, which is inclusive of product development and management costs, as well as depreciation and amortization associated with cost of revenue. Gross margin for each solution in the table above is defined as total revenue less cost of revenue for the applicable solution as a percentage of total revenue for that related solution, which is exclusive of any product development and management or depreciation and amortization cost allocations.

Total gross margin for the nine months ended September 30, 2022 declined 40 basis points compared to total gross margin for the nine months ended September 30, 2021 due to increased severance related to the re-balancing of our resources across our global footprint and increased share-based compensation expense, as well as continued development and expansion of our service offerings. Gross profit increased by $59.7 million, or 21.4% for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021, primarily due to the $168.0 million or 22.6% increase in revenue which outpaced the increase in cost of revenue.

35 | Q3 2022 Form 10-Q

Cloud recurring gross margin was 71.2% for the nine months ended September 30, 2022, compared to 72.3% for the nine months ended September 30, 2021. The decrease in cloud recurring gross margin is primarily due to the integration of our APJ acquisitions, specifically a re-balancing of our resources across our global footprint resulting in severance and restructuring costs. Excluding the impact of share-based compensation and related employer taxes, and severance expense, cloud recurring gross margin increased by 160 basis points to 75.5%, primarily due to the increase in float revenue. Bureau recurring gross margin increased from 53.0% for the nine months ended September 30, 2021, to 57.1% for the nine months ended September 30, 2022. Professional services and other gross margin was (17.2)% for the nine months ended September 30, 2022, compared to (14.6)% for the nine months ended September 30, 2021, reflecting additional costs to take new customers live, expansion of our capabilities to serve international customers, and increased share-based compensation.

Selling, general, and administrative expense. Selling, general, and administrative expense increased $50.7 million for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021. Excluding the impact of share-based compensation and related employer taxes, restructuring consulting fees, severance expense, amortization of acquisition-related intangible assets, and certain other non-recurring items, selling, general, and administrative expenses increased by $35.8 million. This adjusted increase reflects an increase of $18.4 million in sales and marketing expense and $17.4 million in general and administrative expense, both of which are primarily driven by employee-related costs and represents investment in our sales force in order to support our growth initiatives. Please refer to the “Non-GAAP Measures” section for additional information on the excluded items.

Interest expense, net. Interest expense, net was $19.9 million and $25.5 million for the nine months ended September 30, 2022, and 2021, respectively. The decrease was primarily due to the adoption of ASU 2020-06 in 2022 which eliminated the non-cash interest expense related to the amortization of the debt discount on our Convertible Senior Notes, partially offset by an increase in interest expense on our Term Debt due to the increase in LIBOR rates.

Other expense, net. For the nine months ended September 30, 2022, and 2021, we incurred other expense, net of $11.4 million and $16.2 million, respectively, which was comprised of foreign currency translation loss and net periodic pension expense for both periods.

Income tax expense (benefit). For the nine months ended September 30, 2022, and 2021, we recorded income tax expense of $7.8 million and income tax benefit of $13.9 million, respectively. The $21.7 million increase in income tax expense was primarily due to a $10.4 million increase attributable to share-based compensation and a $8.5 million increase attributable to the U.S. GILTI.

Net loss. We realized net loss of $68.2 million for the nine months ended September 30, 2022, compared to $65.9 million for the nine months ended September 30, 2021. Net loss remained relatively consistent, with higher investments in product development and selling capabilities, share-based compensation, and further integration of the APJ acquisitions, specifically a re-balancing of our resources across our global footprint, partially offset by the increase in revenue, including float revenue, as well as the reduction in interest expense and other expense. For the nine months ended September 30, 2022, and 2021, net profit margin was (7.5)% and (8.9)%, respectively.

Adjusted EBITDA. Adjusted EBITDA increased by $58.9 million to $182.7 million, for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, and Adjusted EBITDA margin was 20.1% for the nine months ended September 30, 2022, compared to 16.7% for the nine months ended September 30, 2021. Please refer to the “Non-GAAP Measures” section for a discussion and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin and additional information on the excluded items.

Liquidity and Capital Resources

Our primary sources of liquidity are our existing cash and equivalents, cash provided by operating activities, availability under our Revolving Credit Facility, and proceeds from debt issuances and equity offerings. As of September 30, 2022, we had cash and equivalents of $408.4 million and our total debt balance was $1,236.6 million.

Our primary liquidity needs are related to funding of general business requirements, including the payment of interest and principal on our debt, capital expenditures, product development, and funding Dayforce Wallet on demand pay requests on behalf of our customers. From time to time, we have made investments in businesses or acquisitions of companies, which are also liquidity needs.

36 | Q3 2022 Form 10-Q

As of September 30, 2022, we held $0.8 million of restricted cash as collateral for bank guarantees. The bank guarantees provide financial assurance that we will fulfill certain lease obligations. The cash is restricted as to withdrawal or use while the related bank guarantee is outstanding.

On February 26, 2021, we elected to borrow $295.0 million under the Revolving Credit Facility to fund our acquisition of Ascender on March 1, 2021. We repaid the $295.0 million draw on March 5, 2021 with proceeds from the issuance of our Convertible Senior Notes.

In March 2021, we issued $575.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2026. The total net proceeds from the offering, after deducting initial purchase discounts and issuance costs, were $561.8 million. In connection with the Convertible Senior Notes, we entered into capped call transactions which are expected to reduce the potential dilution of our common stock upon any conversion of the Convertible Senior Notes and/or offset any cash payments we could be required to make in excess of the principal amount of converted Convertible Senior Notes. We used an aggregate amount of $45.0 million of the net proceeds of the Convertible Senior Notes to purchase the Capped Calls. Please refer to Note 7, “Debt,” to our condensed consolidated financial statements for further information on our Convertible Senior Notes, and the related indenture. We used the remainder of the net proceeds from the offering (i) to repay $295.0 million principal amount under the Revolving Credit Facility and pay related accrued interest and (ii) for general corporate purposes.

On December 15, 2021, we completed the second amendment to the Senior Secured Credit Facility, in which the maturity date of the Revolving Credit Facility was extended from April 30, 2023 to January 29, 2025.

We believe that our cash flow from operations, available cash and equivalents, and availability under our Revolving Credit Facility will be sufficient to meet our liquidity needs for the foreseeable future. Dayforce Wallet on demand pay requests are currently funded from our operating cash balances, until it is reimbursed by our customers through their normal payroll funding cycles. We evaluate the creditworthiness of each customer utilizing the Dayforce Wallet feature. We anticipate that to the extent that we require additional liquidity, it will be funded through the issuance of equity, the incurrence of additional indebtedness, or a combination thereof. We cannot provide assurance that we will be able to obtain this additional liquidity on reasonable terms, or at all. Additionally, our liquidity and our ability to meet our obligations and to fund our capital requirements and Dayforce Wallet on demand pay requests are also dependent on our future financial performance, which is subject to general economic, financial, and other factors that are beyond our control. Accordingly, we cannot provide assurance that our business will generate sufficient cash flow from operations or that future borrowings will be available from additional indebtedness or otherwise to meet our liquidity needs. If we decide to pursue one or more significant acquisitions, we may incur additional debt or raise additional equity to finance such acquisitions, which would result in additional expenses and/or dilution.

Our customer funds are held and invested with the primary objectives being to protect the principal balance and to ensure adequate liquidity to meet cash flow requirements. Accordingly, we maintain on average approximately 45% to 55% of customer funds in liquidity portfolios with maturities ranging from one to 120 days, consisting of high-quality bank deposits, money market mutual funds, commercial paper, or collateralized short-term investments; and we maintain on average approximately 45% to 55% of customer funds in fixed income portfolios with maturities ranging from 120 days to 10 years, consisting of U.S. Treasury and agency securities, Canada government and provincial securities, as well as highly rated asset-backed, mortgage-backed, municipal, corporate, and bank securities. To maintain sufficient liquidity to meet payment obligations, we also have financing arrangements and may pledge fixed income securities for short-term financing. The customer assets are held in segregated accounts intended for the specific purpose of satisfying customer funding obligations and therefore are not freely available for our general business use.

37 | Q3 2022 Form 10-Q

Statements of Cash Flows

Changes in cash flows due to purchases of customer fund marketable securities and proceeds from the sale or maturity of customer fund marketable securities, as well as the carrying value of customer fund accounts as of period end dates can vary significantly due to several factors, including the specific day of the week the period ends, which impacts the timing of funds collected from customers and payments made to satisfy customer obligations to employees, taxing authorities, and others. The customer funds are fully segregated from our operating cash accounts and are evaluated and tracked separately by management. The table below summarizes the activity within the condensed consolidated statements of cash flows:

	Nine Months Ended September 30,
	2022			2021
	(Dollars in millions)
Net cash provided by operating activities	$	90.8		$	48.9
Net cash used in investing activities		(295.0	)		(510.5	)
Net cash provided by financing activities		1,026.7			2,214.4
Effect of exchange rate changes on cash, restricted cash, and equivalents		(8.1	)		(0.5	)
Net increase in cash, restricted cash, and equivalents		814.4			1,752.3
Cash, restricted cash, and equivalents at beginning of period		1,952.8			2,228.5
Cash, restricted cash, and equivalents at end of period		2,767.2			3,980.8
Cash and equivalents		408.4			378.8
Restricted cash and equivalents		2,358.8			3,602.0
Total cash, restricted cash, and equivalents	$	2,767.2		$	3,980.8

Operating Activities

Net cash provided by operating activities was $90.8 million during the nine months ended September 30, 2022 compared to $48.9 million during the nine months ended September 30, 2021. For both periods, cash inflows from operating activities are primarily generated from the subscriptions of our solutions by our human capital management software, typically structured with an initial fixed term of between three and five years, with evergreen renewal thereafter. Cash outflows from operating activities for both periods are primarily comprised of personnel-related expenditures that are integral to our business operations. The positive cash inflow in both periods is primarily due to our growing revenue and collections of such revenue, partially offset by our operating costs, mainly, investment in our sales force to support our growth initiatives and our product development and management costs which are not eligible for capitalization.

Investing Activities

During the nine months ended September 30, 2022, net cash used in investing activities was $295.0 million, consisting of purchases of customer funds marketable securities of $534.3 million and capital expenditures of $64.9 million, partially offset by proceeds from the sale and maturity of customer funds marketable securities of $304.2 million. Our capital expenditures included $54.5 million for software and technology and $10.4 million for property and equipment.

During the nine months ended September 30, 2021, net cash used in investing activities was $510.5 million, consisting of purchases of customer funds marketable securities of $500.5 million, acquisition costs, net of cash acquired of $392.4 million and capital expenditures of $45.7 million, partially offset by proceeds from the sale and maturity of customer funds marketable securities of $409.2 million. Our capital expenditures included $38.4 million for software and technology and $7.3 million for property and equipment.

Financing Activities

Net cash provided by financing activities was $1,026.7 million during the nine months ended September 30, 2022. This cash inflow is primarily attributable to an increase in net customer fund obligations of $1,010.4 million and proceeds from issuance of common stock upon exercise of stock options of $22.6 million, partially offset by payments on our long-term debt obligations of $6.3 million.

38 | Q3 2022 Form 10-Q

Net cash provided by financing activities was $2,214.4 million during the nine months ended September 30, 2021. This cash inflow is primarily attributable to an increase in net customer fund obligations of $1,631.0 million, proceeds from the issuance of our Convertible Senior Notes of $561.8 million and proceeds from issuance of common stock upon exercise of stock options of $70.9 million, partially offset by the purchase of the capped calls related to the Convertible Senior Notes of $45.0 million and payments on our long-term debt obligations of $4.3 million.

Backlog

Backlog is equivalent to our remaining performance obligations, which represents contracted revenue for recurring and fixed price professional services, primarily implementation services, that has not yet been recognized, including deferred revenue and unbilled amounts that will be recognized as revenue in future periods. As of September 30, 2022, our remaining performance obligations were approximately $1,076.3 million. Please refer to Note 10, “Revenue,” to our condensed consolidated financial statements for further discussion of our remaining performance obligations.

Off-Balance Sheet Arrangements

As of September 30, 2022, we did not have any “off-balance sheet arrangements” (as such term is defined in Item 303 of Regulation S-K).

Critical Accounting Policies and Estimates

During the nine months ended September 30, 2022, there were no significant changes to our critical accounting policies and estimates as described in Part II, “Item 7. Management's Discussion and Analysis" under the heading "Critical Accounting Policies and Estimates" contained in our 2021 Form 10-K.

Non-GAAP Measures

We use certain non-GAAP financial measures in this document including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted operating profit, Adjusted net income, Adjusted diluted net income per share, revenue on a constant currency basis, Dayforce recurring revenue per customer, and Adjusted Cloud recurring gross margin. We believe that these non-GAAP financial measures are useful to management and investors as supplemental measures to evaluate our overall operating performance including comparison across periods and with competitors. Our management team uses these non-GAAP financial measures to assess operating performance because these measures exclude the results of decisions that are outside the normal course of our business operations, and are used for internal budgeting and forecasting purposes both for short- and long-term operating plans. Additionally, Adjusted EBITDA and Adjusted EBITDA margin are components of our management incentive plan.

We define our non-GAAP financial measures as follows:

•EBITDA is defined as net income (loss) before interest, taxes, depreciation, and amortization, and Adjusted EBITDA as EBITDA, as adjusted to exclude foreign exchange gains (losses), share-based compensation expense and related employer taxes, severance charges, restructuring consulting fees, and other non-recurring items.

•Adjusted EBITDA margin is determined by calculating the percentage Adjusted EBITDA is of total revenue.

•Adjusted Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue, as adjusted to exclude share-based compensation and severance charges, as a percentage of total Cloud recurring revenue, which is exclusive of any product development and management or depreciation and amortization cost allocations.

•Adjusted operating profit is defined as operating profit (loss), as adjusted to exclude foreign exchange gains (losses), share-based compensation expense and related employer taxes, severance charges, restructuring consulting fees, amortization of acquisition-related intangible assets, and other non-recurring items.

•Adjusted net income is defined as net income (loss), as adjusted to exclude foreign exchange gains (losses), share-based compensation expense and related employer taxes, severance charges, restructuring consulting fees, amortization of acquisition-related intangible assets, and other non-recurring items, all of which are adjusted for the effect of income taxes.

39 | Q3 2022 Form 10-Q

•Adjusted diluted net income per share is calculated by dividing adjusted net income by diluted weighted average common shares outstanding. When adjusted diluted net income per share is positive, diluted weighted average common shares outstanding incorporate the effect of dilutive equity instruments.

•Revenue on a constant currency basis is calculated by applying the average foreign exchange rate in effect during the comparable prior period.

•Dayforce recurring revenue per customer is an indicator of the average size of Dayforce recurring revenue customers. To calculate Dayforce recurring revenue per customer, we start with Dayforce recurring revenue on a constant currency basis by applying the same exchange rate to all comparable periods for the trailing twelve months and excludes float revenue, the impact of lower employment levels in 2021 and 2020 due to the COVID-19 pandemic, and Ascender and ADAM HCM revenue. This amount is divided by the number of live Dayforce customers at the end of the trailing twelve month period, excluding Ascender and ADAM HCM. We calculate and monitor Dayforce recurring revenue per customer on a quarterly basis. Our Dayforce recurring revenue per customer may fluctuate as a result of a number of factors, including the number of live Dayforce customers and the number of customers purchasing the full HCM suite. We have not reconciled the Dayforce recurring revenue per customer because there is no directly comparable GAAP financial measure.

Our presentation of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Cloud recurring gross margin, Adjusted operating profit, Adjusted net income, Adjusted diluted net income per share, revenue on a constant currency basis, and Dayforce recurring revenue per customer are intended as supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures should not be considered as alternatives to net income (loss), earnings (loss) per share, revenue, or any other performance measures derived in accordance with GAAP, or as measures of operating cash flows or liquidity. Our presentation of non-GAAP financial measures should not be construed to imply that our future results will be unaffected by similar items to those eliminated in this presentation.

EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Cloud recurring gross margin, Adjusted operating profit, Adjusted net income, Adjusted diluted net income per share, revenue on a constant currency basis, and Dayforce recurring revenue per customer are not defined under GAAP, are not measures of net income (loss) or any other performance measures derived in accordance with GAAP, and are subject to important limitations. Our use of these terms may not be comparable to similarly titled measures of other companies in our industry and are not measures of performance calculated in accordance with GAAP. These non-GAAP financial measures have important limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. In evaluating non-GAAP financial measures, users should be aware that in the future we may incur expenses similar to those eliminated in this presentation.

40 | Q3 2022 Form 10-Q

The following tables present a reconciliation of our reported results to the non-GAAP financial measures EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted operating profit, Adjusted net loss, and Adjusted Cloud recurring gross margin for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(Dollars in millions)
Net loss	$	(21.0	)	$	(20.9	)	$	(68.2	)	$	(65.9	)
Interest expense, net		7.4			10.0			19.9			25.5
Income tax expense (benefit)		4.0			(8.5	)		7.8			(13.9	)
Depreciation and amortization		21.9			21.0			64.4			59.3
EBITDA		12.3			1.6			23.9			5.0
Foreign exchange loss		4.5			1.5			7.3			8.5
Share-based compensation (a)		39.4			31.0			113.8			85.9
Severance charges (b)		4.3			2.1			28.6			5.8
Restructuring consulting fees (c)		1.4			1.8			5.1			13.9
Other non-recurring items (d)		1.6			1.4			4.0			4.7
Adjusted EBITDA	$	63.5		$	39.4		$	182.7		$	123.8
Net profit margin (e)		(6.7	)%		(8.1	)%		(7.5	)%		(8.9	)%
Adjusted EBITDA margin		20.1	%		15.3	%		20.1	%		16.7	%

(a)Represents share-based compensation expense and related employer taxes.

(b)Represents costs for severance compensation paid to employees whose positions have been eliminated or who have been terminated not for cause. During the three and nine months ended September 30, 2022, Ceridian incurred severance charges in conjunction with the re-balancing of the workforce across its global footprint in the amount of $2.5 million and $18.6 million, respectively, within cost of recurring revenue.

(c)Represents consulting fees and expenses incurred during the periods presented in connection with any acquisition, investment, disposition, recapitalization, equity offering, issuance or repayment of debt, issuance of equity interests, or refinancing.

(d)Represents (1) the impact of the fair value adjustment for the DataFuzion contingent consideration in 2022, (2) the difference between the historical five-year average pension expense and the current period actuarially determined pension expense associated with the planned termination of the frozen U.S. pension plan and related changes in investment strategy associated with protecting the now fully funded status, and (3) the net impact of the abandonment of certain leased facilities.

(e)Net profit margin is determined by calculating the percentage that net income (loss) is of total revenue.

41 | Q3 2022 Form 10-Q

	Three Months Ended September 30, 2022
	As reported			Share-based compensation		Severance charges		Other (a)			Adjusted (b)
	(Dollars in millions)
Cost of revenue:
Recurring
Cloud	$	64.3		$	3.9	$	2.3	$	—		$	58.1
Bureau		12.8			0.3		0.3		—			12.2
Total recurring		77.1			4.2		2.6		—			70.3
Professional services and other		61.0			3.8		—		—			57.2
Product development and management		44.8			6.7		0.3		—			37.8
Depreciation and amortization		13.7			—		—		—			13.7
Total cost of revenue		196.6			14.7		2.9		—			179.0
Sales and marketing		62.6			7.4		0.8		—			54.4
General and administrative		60.1			17.3		0.6		10.1			32.1
Operating (loss) profit		(3.7	)		39.4		4.3		10.1			50.1
Other expense, net		5.9			—		—		4.9			1.0
Depreciation and amortization		21.9			—		—		(7.5	)		14.4
EBITDA		12.3			39.4		4.3		7.5			63.5
Interest expense, net		7.4			—		—		—			7.4
Income tax expense (c)		4.0			—		—		(6.6	)		10.6
Depreciation and amortization		21.9			—		—		7.5			14.4
Net (loss) income	$	(21.0	)	$	39.4	$	4.3	$	8.4		$	31.1
Net (loss) income per share - basic (d)	$	(0.14	)	$	0.26	$	0.03	$	0.05		$	0.20
Net (loss) income per share - diluted (d)	$	(0.14	)	$	0.25	$	0.03	$	0.05		$	0.20

(a)Other includes amortization of acquisition-related intangible assets, foreign exchange loss, restructuring consulting fees, the impact of the fair value adjustment for the DataFuzion contingent consideration, the difference between the historical five-year average pension expense and the current period actuarially determined pension expense associated with the planned termination of the frozen U.S. pension plan and related changes in investment strategy associated with protecting the now fully funded status, and the net impact of the abandonment of certain leased facilities.

(b)The Adjusted column is a non-GAAP financial measure, adjusted to exclude foreign exchange gains (losses), share-based compensation expense and related employer taxes, severance charges, restructuring consulting fees, amortization of acquisition-related intangible assets, and other non-recurring items, all of which are adjusted for the effect of income taxes.

(c)Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.

(d)Both GAAP and Adjusted net income (loss) per share are calculated by dividing either GAAP or Adjusted net income by the basic or diluted weighted average common shares outstanding. When adjusted diluted net income per share is positive, diluted weighted average common shares outstanding incorporate the effect of dilutive equity instruments. GAAP basic and diluted net loss per share are calculated based upon 153,184,846 weighted-average shares of common stock and Adjusted basic and diluted net income per share are calculated based upon 153,184,846 and 155,601,415 weighted-average shares of common stock, respectively.

42 | Q3 2022 Form 10-Q

	Three Months Ended September 30, 2021
	As reported			Share-based compensation		Severance charges			Other (a)			Adjusted (b)
	(Dollars in millions)
Cost of revenue:
Recurring
Cloud	$	49.4		$	3.0	$	(0.1	)	$	—		$	46.5
Bureau		16.6			0.5		0.4			—			15.7
Total recurring		66.0			3.5		0.3			—			62.2
Professional services and other		48.9			2.5		—			—			46.4
Product development and management		36.6			5.3		0.3			—			31.0
Depreciation and amortization		12.6			—		—			—			12.6
Total cost of revenue		164.1			11.3		0.6			—			152.2
Sales and marketing		56.1			3.6		0.6			—			51.9
General and administrative		53.0			16.1		0.9			9.1			26.9
Operating (loss) profit		(16.0	)		31.0		2.1			9.1			26.2
Other expense, net		3.4			—		—			2.9			0.5
Depreciation and amortization		21.0			—		—			(7.3	)		13.7
EBITDA		1.6			31.0		2.1			4.7			39.4
Interest expense, net		10.0			—		—			—			10.0
Income tax benefit (c)		(8.5	)		—		—			(8.4	)		(0.1	)
Depreciation and amortization		21.0			—		—			7.3			13.7
Net (loss) income	$	(20.9	)	$	31.0	$	2.1		$	3.6		$	15.8
Net (loss) income per share - basic (d)	$	(0.14	)	$	0.21	$	0.01		$	0.02		$	0.11
Net (loss) income per share - diluted (d)	$	(0.14	)	$	0.20	$	0.01		$	0.02		$	0.10

(a)Other operating expenses includes amortization of acquisition-related intangible assets, foreign exchange loss, restructuring consulting fees, and the difference between the historical five-year average pension expense and the current period actuarially determined pension expense associated with the planned termination of the frozen U.S. pension plan and related changes in investment strategy associated with protecting the now fully funded status.

(b)The Adjusted column is a non-GAAP financial measure, adjusted to exclude foreign exchange gains (losses), share-based compensation expense and related employer taxes, severance charges, restructuring consulting fees, amortization of acquisition-related intangible assets, and other non-recurring items, all of which are adjusted for the effect of income taxes.

(c)Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.

(d)Both GAAP and Adjusted net income (loss) per share are calculated by dividing either GAAP or Adjusted net income by the basic or diluted weighted average common shares outstanding. When adjusted diluted net income per share is positive, diluted weighted average common shares outstanding incorporate the effect of dilutive equity instruments. GAAP basic and diluted net loss per share are calculated based upon 150,450,595 weighted-average shares of common stock, and Adjusted basic and diluted net income per share are calculated based upon 150,450,595 and 156,861,973 weighted-average shares of common stock, respectively.

43 | Q3 2022 Form 10-Q

	Nine Months Ended September 30, 2022
	As reported			Share-based compensation		Severance charges		Other (a)			Adjusted (b)
	(Dollars in millions)
Cost of revenue:
Recurring
Cloud	$	189.1		$	11.4	$	16.9	$	—		$	160.8
Bureau		45.3			1.0		2.4		—			41.9
Total recurring		234.4			12.4		19.3		—			202.7
Professional services and other		172.6			10.5		0.5		—			161.6
Product development and management		125.0			18.9		4.0		—			102.1
Depreciation and amortization		40.0			—		—		—			40.0
Total cost of revenue		572.0			41.8		23.8		—			506.4
Sales and marketing		183.4			18.9		3.3		—			161.2
General and administrative		183.8			53.1		1.5		31.2			98.0
Operating (loss) profit		(29.1	)		113.8		28.6		31.2			144.5
Other expense, net		11.4			—		—		8.1			3.3
Depreciation and amortization		64.4			—		—		(22.9	)		41.5
EBITDA		23.9			113.8		28.6		16.4			182.7
Interest expense, net		19.9			—		—		—			19.9
Income tax expense (c)		7.8			—		—		(28.9	)		36.7
Depreciation and amortization		64.4			—		—		22.9			41.5
Net (loss) income	$	(68.2	)	$	113.8	$	28.6	$	10.4		$	84.6
Net (loss) income per share - basic (d)	$	(0.45	)	$	0.75	$	0.19	$	0.07		$	0.55
Net (loss) income per share - diluted (d)	$	(0.45	)	$	0.73	$	0.18	$	0.07		$	0.54

(a)Other includes amortization of acquisition-related intangible assets, restructuring consulting fees, foreign exchange loss, the impact of the fair value adjustment for the DataFuzion contingent consideration, the difference between the historical five-year average pension expense and the current period actuarially determined pension expense associated with the planned termination of the frozen U.S. pension plan and related changes in investment strategy associated with protecting the now fully funded status, and the net impact of the abandonment of certain leased facilities.

(b)The Adjusted column is a non-GAAP financial measure, adjusted to exclude foreign exchange gains (losses), share-based compensation expense and related employer taxes, severance charges, restructuring consulting fees, amortization of acquisition-related intangible assets, and other non-recurring items, all of which are adjusted for the effect of income taxes.

(c)Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.

(d)Both GAAP and Adjusted net income (loss) per share are calculated by dividing either GAAP or Adjusted net income by the basic or diluted weighted average common shares outstanding. When adjusted diluted net income per share is positive, diluted weighted average common shares outstanding incorporate the effect of dilutive equity instruments. GAAP basic and diluted net loss per share are calculated based upon 152,691,008 weighted-average shares of common stock and Adjusted basic and diluted net income per share are calculated based upon 152,691,008 and 155,506,326 weighted-average shares of common stock, respectively.

44 | Q3 2022 Form 10-Q

	Nine Months Ended September 30, 2021
	As reported			Share-based compensation		Severance charges		Other (a)			Adjusted (b)
	(Dollars in millions)
Cost of revenue:
Recurring
Cloud	$	143.4		$	8.2	$	0.1	$	—		$	135.1
Bureau		47.7			1.5		1.5		—			44.7
Total recurring		191.1			9.7		1.6		—			179.8
Professional services and other		140.9			7.1		0.1		—			133.7
Product development and management		94.2			13.2		0.5		—			80.5
Depreciation and amortization		37.5			—		—		—			37.5
Total cost of revenue		463.7			30.0		2.2		—			431.5
Sales and marketing		154.5			10.1		1.6		—			142.8
General and administrative		162.0			45.8		2.0		33.6			80.6
Operating (loss) profit		(38.1	)		85.9		5.8		33.6			87.2
Other expense, net		16.2			—		—		12.8			3.4
Depreciation and amortization		59.3			—		—		(19.3	)		40.0
EBITDA		5.0			85.9		5.8		27.1			123.8
Interest expense, net		25.5			—		—		—			25.5
Income tax (benefit) expense (c)		(13.9	)		—		—		(21.8	)		7.9
Depreciation and amortization		59.3			—		—		19.3			40.0
Net (loss) income	$	(65.9	)	$	85.9	$	5.8	$	24.6		$	50.4
Net (loss) income per share - basic (d)	$	(0.44	)	$	0.58	$	0.04	$	0.17		$	0.34
Net (loss) income per share - diluted (d)	$	(0.44	)	$	0.58	$	0.04	$	0.16		$	0.32

(a)Other operating expenses includes amortization of acquisition-related intangible assets, foreign exchange loss, restructuring consulting fees, the difference between the historical five-year average pension expense and the current period actuarially determined pension expense associated with the planned termination of the frozen U.S. pension plan and related changes in investment strategy associated with protecting the now fully funded status, and charges related to the abandonment of certain leased facilities.

(b)The Adjusted column is a non-GAAP financial measure, adjusted to exclude foreign exchange gains (losses), share-based compensation expense and related employer taxes, severance charges, restructuring consulting fees, amortization of acquisition-related intangible assets, and other non-recurring items, all of which are adjusted for the effect of income taxes.

(c)Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.

(d)Both GAAP and Adjusted net income (loss) per share are calculated by dividing either GAAP or Adjusted net income by the basic or diluted weighted average common shares outstanding. When adjusted diluted net income per share is positive, diluted weighted average common shares outstanding incorporate the effect of dilutive equity instruments. GAAP basic and diluted net loss per share are calculated based upon 149,083,666 weighted-average shares of common stock, and Adjusted basic and diluted net income per share are calculated based upon 149,083,666 and 155,444,668 weighted-average shares of common stock, respectively.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(Dollars in millions)
Cloud recurring revenue	$	230.4		$	181.0		$	657.2		$	517.7
Cost of revenue - Cloud recurring - as reported	$	64.3		$	49.4		$	189.1		$	143.4
Share-based compensation		3.9			3.0			11.4			8.2
Severance charges		2.3			(0.1	)		16.9			0.1
Cost of revenue - Cloud recurring - as adjusted (a)	$	58.1		$	46.5		$	160.8		$	135.1
Gross margin - Cloud recurring - as reported		72.1	%		72.7	%		71.2	%		72.3	%
Gross margin - Cloud recurring - as adjusted (a)		74.8	%		74.3	%		75.5	%		73.9	%

(a)The Adjusted figures are non-GAAP financial measures, adjusted to exclude share-based compensation expense and related employer taxes, and severance charges.

45 | Q3 2022 Form 10-Q

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risks related to foreign currency exchange rates, interest rates, and pension obligations. We seek to minimize or to manage these market risks through normal operating and financing activities. These market risks may be amplified by events and factors surrounding global events. We do not trade or use instruments with the objective of earning financial gains on the market fluctuations, nor do we use instruments where there are not underlying exposures.

Foreign Currency Risk. Our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian Dollar. Our exposure to foreign currency exchange rates has historically been partially hedged as our foreign currency denominated inflows create a natural hedge against our foreign currency denominated expenses. Accordingly, our results of operations and cash flows were not materially affected by fluctuation in foreign currency exchange rates, and we believe that a hypothetical 10% change in foreign currency exchange rates or inability to access foreign funds would not materially affect our ability to meet our operational needs or result in a material foreign currency loss in the future. Due to the relative size of our international operations to date, we have not instituted an active hedging program. We expect our international operations to continue to grow in the near term, and we are monitoring the foreign currency exposure to determine if we should begin a hedging program.

Interest Rate Risk. Our operating results and financial condition are subject to fluctuations due to changes in interest rates, primarily in relation to: (1) our customer funds market valuation and float revenue derived therefrom, (2) our debt and the interest paid on such, and (3) our cash and equivalents and the interest income earned on these balances. Collectively, we do not believe that a change in interest rates of 100 basis points would have a material effect on our operating results or financial condition.

In certain jurisdictions, we collect funds for payment of payroll and taxes; temporarily hold such funds in segregated accounts until payment is due; remit the funds to the customers’ employees and appropriate taxing authority; file federal, state and local tax returns; and handle related regulatory correspondence and amendments. We invest the customer funds in high- quality bank deposits, money market mutual funds, commercial paper or collateralized short-term investments. We may also invest these funds in government securities, as well as highly rated asset-backed, mortgage-backed, corporate, and bank securities.

We have exposure to risks associated with changes in laws and regulations that may affect customer fund balances. For example, a change in regulations, either reducing the amount of taxes to be withheld or allowing less time to remit taxes to government authorities, would reduce our average customer fund balances and float revenue. Based on current market conditions, portfolio composition and investment practices, a 100 basis point increase in market investment rates would result in approximately $24 million increase in float revenue over the ensuing twelve month period. There are no incremental costs of revenue associated with changes in float revenue.

We pay floating rates of interest on our Term Debt and Revolving Credit Facility. The interest paid on these borrowings will fluctuate up or down in relation to changes in market interest rates. A 100 basis point increase in the LIBOR rates would result in approximately $7 million increase in our interest expense over the ensuring twelve-month period. Please refer to Note 7, "Debt" for additional information.

We do not enter into investments for trading or speculative purposes. Our cash equivalents and our portfolio of marketable securities are subject to market risk due to changes in interest rates. Fixed rate securities may have their market value adversely affected due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall. Due in part to these factors, our future investment income may fall short of expectation due to changes in interest rates or we may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates.

However, because we classify our securities as “available for sale,” no gains or losses are recognized due to changes in interest rates unless such securities are sold prior to maturity or declines in fair value are determined to be unrecoverable. Fluctuations in the value of our investment securities caused by a change in interest rates (gains or losses on the carrying value) are recorded in other comprehensive income, and are realized only if we sell the underlying securities.

46 | Q3 2022 Form 10-Q

Pension Obligation Risk. We provide a pension plan for certain current and former U.S. employees that closed to new participants on January 2, 1995. In 2007, the U.S. pension plan was amended (1) to exclude from further participation any participant or former participant who was not employed by the company or another participating employer on January 1, 2008, (2) to discontinue participant contributions, and (3) to freeze the accrual of additional benefits as of December 31, 2007. In applying relevant accounting policies, we have made critical estimates related to actuarial assumptions, including assumptions of expected returns on plan assets, discount rates, and health care cost trends. The cost of pension benefits in future periods will depend on actual returns on plan assets, assumptions for future periods, contributions, and benefit experience. The effective discount rate used in accounting for pension and other benefit obligations in 2021 ranged from 2.00% to 2.36%. The expected rate of return on plan assets for qualified pension benefits in 2022 is 3.30%.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures, as defined in Rule 13(a)-15(e) of the Exchange Act, are controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is (1) recorded, processed, summarized and reported in a timely manner and (2) accumulated and communicated to our management, including our Co-Chief Executive Officers and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Our management has evaluated, under the supervision and with the participation of our Co-Chief Executive Officers and Chief Financial Officer, the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Form 10-Q pursuant to Rule 13a-15(b) of the Exchange Act. Based on that evaluation, our Co-Chief Executive Officers and Chief Financial Officer have concluded that our disclosure controls and procedures as of the end of the period covered by this Form 10-Q are effective. While our disclosure controls and procedures are designed to provide reasonable assurance of their effectiveness, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company have been detected.

Changes in Internal Control over Financial Reporting

There were no changes to our internal controls over financial reporting during the three months ended September 30, 2022 that have materially affected, or that are reasonably likely to materially affect, our internal controls over financial reporting.

47 | Q3 2022 Form 10-Q

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. We are not presently a party to any legal proceedings that, if determined adversely to us, we believe would individually or taken together have a material adverse effect on our business, financial condition or liquidity.

On October 21, 2021, a claim was issued by purported stockholder, Bluemoon Capital Ltd., in the Superior Court of Justice of Ontario, Canada. The claim is against the Company, together with David Ossip, Chair and Co-Chief Executive Officer of the Company, Arthur Gitajn, former EVP and Chief Financial Officer of the Company, Gnaneshwar Rao, director of the Company and Brent Bickett, director of the Company, as well as certain third parties. The action, which is a proposed class action, alleges misrepresentations and negligence in connection with the disclosure made by the Company in its April 25, 2018 Prospectuses (which were later incorporated by reference into the Company’s May 24, 2018 Interim Financial Statements and MD&A) regarding matters surrounding the Company’s distribution to its pre-IPO stockholders of its 50% interest in LifeWorks Corporation Ltd. On January 19, 2022, the Ontario court rejected the Norwich Application for discovery by plaintiff (equitable or discretionary remedy in Canada for disclosure of documentation to form an action), which had been filed prior to filing the class action on the basis that it did not meet the key criteria for pre-action discovery. Plaintiff has appealed this decision.

The action seeks unspecified monetary damages under the Ontario Securities Act and at common law.

At this early stage of the proceeding, the ultimate disposition is not yet determinable, but we believe that the likelihood of a material loss arising out of this claim is remote.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this Quarterly Report on Form 10-Q, such as Item 2 on Part I - under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations", the reader should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021. There have been no material changes in our risk factors from those disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

48 | Q3 2022 Form 10-Q

ITEM 6. EXHIBITS

(a) Exhibits

The following exhibits are filed or furnished as a part of this report:

Exhibit No.	Description
3.1	Fourth Amended and Restated Certificate of Incorporation of Ceridian HCM Holding Inc. (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q filed by the Company on May 5, 2021).
3.2	Second Amended and Restated Bylaws of Ceridian HCM Holding Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by the Company on February 9, 2022).
4.1	Certificate of Common Stock (incorporated by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q filed by the Company on May 24, 2018).
4.2	Registration Rights Agreement, dated April 30, 2018, by and among Ceridian HCM Holding Inc. and the other parties thereto (incorporated by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q filed by the Company on May 24, 2018).
4.3	Indenture, dated as of March 5, 2021, between Ceridian HCM Holding Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by the Company on March 5, 2021).
4.4	Form of 0.25% Convertible Senior Notes due 2026 (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by the Company on March 5, 2021).
31.1*	Certification of Co-Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Co-Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.3*	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Co-Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Co-Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.3*	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL 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 Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

* Filed herewith.

49 | Q3 2022 Form 10-Q

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.

	CERIDIAN HCM HOLDING INC.
Date: November 2, 2022	By:	/s/ David D. Ossip
		Name:	David D. Ossip
		Title:	Co-Chief Executive Officer
			(Co-Principal Executive Officer)
Date: November 2, 2022	By:	/s/ Leagh E. Turner
		Name: Leagh E. Turner
		Title: Co-Chief Executive Officer
		(Co-Principal Executive Officer)
Date: November 2, 2022	By:	/s/ Noémie C. Heuland
		Name:	Noémie C. Heuland
		Title:	Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)

50 | Q3 2022 Form 10-Q

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, David D. Ossip, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Ceridian HCM Holding 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 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)) 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; and

5.The registrant’s other certifying officer 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 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: November 2, 2022

By:	/s/ David D. Ossip
	David D. Ossip Co-Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Leagh E. Turner, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Ceridian HCM Holding 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 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)) 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; and

5.The registrant’s other certifying officer 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 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: November 2, 2022

By:	/s/ Leagh E. Turner
	Leagh E. Turner Co-Chief Executive Officer

EX-31.3

Exhibit 31.3

CERTIFICATIONS

I, Noémie C. Heuland, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Ceridian HCM Holding 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 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)) 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; and

5. The registrant’s other certifying officer 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 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: November 2, 2022

By:	/s/ Noémie C. Heuland
	Noémie C. Heuland Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PERIODIC FINANCIAL REPORTS PURSUANT TO 18 U.S.C. §1350

The undersigned hereby certifies that he is the duly appointed and acting Co-Chief Executive Officer of Ceridian HCM Holding Inc., a Delaware corporation (the “Company”), and hereby further certifies as follows.

1.The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2.The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company.

In witness whereof, the undersigned has executed and delivered this certificate as of the date set forth opposite his signature below.

Date: November 2, 2022

By:	/s/ David D. Ossip
	David D. Ossip
	Co-Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF PERIODIC FINANCIAL REPORTS PURSUANT TO 18 U.S.C. §1350

The undersigned hereby certifies that she is the duly appointed and acting Co-Chief Executive Officer of Ceridian HCM Holding Inc., a Delaware corporation (the “Company”), and hereby further certifies as follows.

1.The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2.The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company.

In witness whereof, the undersigned has executed and delivered this certificate as of the date set forth opposite her signature below.

Date: November 2, 2022

By:	/s/ Leagh E. Turner
	Leagh E. Turner
	Co-Chief Executive Officer

EX-32.3

Exhibit 32.3

CERTIFICATION OF PERIODIC FINANCIAL REPORTS PURSUANT TO 18 U.S.C. §1350

The undersigned hereby certifies that she is the duly appointed and acting Executive Vice President and Chief Financial Officer of Ceridian HCM Holding Inc., a Delaware corporation (the “Company”), and hereby further certifies as follows.

1.The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2.The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company.

In witness whereof, the undersigned has executed and delivered this certificate as of the date set forth opposite her signature below.

Date: November 2, 2022

By:	/s/ Noémie C. Heuland
	Noémie C. Heuland
	Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 27, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Trading Symbol	CDAY
Title of 12(b) Security	Common stock, $0.01 par value
Security Exchange Name	NYSE
Entity Registrant Name	Ceridian HCM Holding Inc.
Entity Central Index Key	0001725057
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-38467
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	46-3231686
Entity Address Address Line1	3311 East Old Shakopee Road
Entity Address City Or Town	Minneapolis
Entity Address State Or Province	MN
Entity Address Postal Zip Code	55425
City Area Code	952
Local Phone Number	853-8100
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		153,594,867

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and equivalents	$ 408.4	$ 367.5
Restricted cash	0.8	1.9
Trade and other receivables, net	155.4	146.3
Prepaid expenses and other current assets	107.3	92.6
Total current assets before customer funds	671.9	608.3
Customer funds	4,335.3	3,535.8
Total current assets	5,007.2	4,144.1
Right of use lease asset	27.5	29.4
Property, plant, and equipment, net	144.7	128.2
Goodwill	2,261.8	2,323.6
Other intangible assets, net	298.4	332.5
Other assets	266.8	208.4
Total assets	8,006.4	7,166.2
Current liabilities:
Current portion of long-term debt	8.1	8.3
Current portion of long-term lease liabilities	14.9	11.3
Accounts payable	56.7	51.7
Deferred revenue	42.6	48.7
Employee compensation and benefits	72.6	77.3
Other accrued expenses	24.2	24.7
Total current liabilities before customer funds obligations	219.1	222.0
Customer funds obligations	4,456.6	3,519.9
Total current liabilities	4,675.7	3,741.9
Long-term debt, less current portion	1,214.1	1,124.4
Employee benefit plans	19.3	20.7
Long-term lease liabilities, less current portion	23.0	32.7
Other liabilities	23.1	19.0
Total liabilities	5,955.2	4,938.7
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.01 par, 500,000,000 shares authorized, 153,526,336 and 151,995,031 shares issued and outstanding, respectively	1.5	1.5
Additional paid in capital	2,918.4	2,860.0
Accumulated deficit	(367.4)	(309.2)
Accumulated other comprehensive loss	(501.3)	(324.8)
Total stockholders’ equity	2,051.2	2,227.5
Total liabilities and equity	$ 8,006.4	$ 7,166.2

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	500,000,000	500,000,000
Common Stock, shares issued	153,526,336	151,995,031
Common Stock, shares outstanding	153,526,336	151,995,031

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue:
Total revenue	$ 315.6	$ 257.2	$ 910.1	$ 742.1
Cost of revenue:
Recurring	77.1	66.0	234.4	191.1
Professional services and other	61.0	48.9	172.6	140.9
Product development and management	44.8	36.6	125.0	94.2
Depreciation and amortization	13.7	12.6	40.0	37.5
Total cost of revenue	196.6	164.1	572.0	463.7
Gross profit	119.0	93.1	338.1	278.4
Selling, general, and administrative	122.7	109.1	367.2	316.5
Operating loss	(3.7)	(16.0)	(29.1)	(38.1)
Interest expense, net	7.4	10.0	19.9	25.5
Other expense, net	5.9	3.4	11.4	16.2
Loss before income taxes	(17.0)	(29.4)	(60.4)	(79.8)
Income tax expense (benefit)	4.0	(8.5)	7.8	(13.9)
Net loss	$ (21.0)	$ (20.9)	$ (68.2)	$ (65.9)
Net loss per share:
Basic	$ (0.14)	$ (0.14)	$ (0.45)	$ (0.44)
Diluted	$ (0.14)	$ (0.14)	$ (0.45)	$ (0.44)
Weighted-average shares outstanding:
Basic	153,184,846	150,450,595	152,691,008	149,083,666
Diluted	153,184,846	150,450,595	152,691,008	149,083,666
Recurring [Member]
Revenue:
Total revenue	$ 263.8	$ 215.0	$ 762.8	$ 619.1
Professional Services and Other [Member]
Revenue:
Total revenue	$ 51.8	$ 42.2	$ 147.3	$ 123.0

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss		$ (21.0)	$ (20.9)	$ (68.2)	$ (65.9)
Items of other comprehensive loss before income taxes:
Change in foreign currency translation adjustment		(48.5)	(19.7)	(80.3)	4.3
Change in unrealized loss from invested customer funds		(33.0)	(8.4)	(139.9)	(30.5)
Change in pension liability adjustment	[1]	2.9	3.8	8.9	11.4
Other comprehensive loss before income taxes		(78.6)	(24.3)	(211.3)	(14.8)
Income tax benefit, net		(8.0)	(1.3)	(34.8)	(5.1)
Other comprehensive loss after income taxes		(70.6)	(23.0)	(176.5)	(9.7)
Comprehensive loss		$ (91.6)	$ (43.9)	$ (244.7)	$ (75.6)

[1] The amount of the pension liability adjustment recognized in the condensed consolidated statements of operations within other expense, net was $2.9 million and $3.8 million during the three months ended September 30, 2022, and 2021, respectively, and $8.7 million and $11.3 million during the nine months ended September 30, 2022, and 2021, respectively.

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Expense, Net [Member]
Pension liability adjustment	$ 2.9	$ 3.8	$ 8.7	$ 11.3

XML

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Additional Paid In Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Dec. 31, 2020	$ 2,098.2		$ 1.5	$ 2,606.5		$ (233.8)		$ (276.0)
Balance, shares at Dec. 31, 2020			148,571,412
Net loss	(19.2)					(19.2)
Issuance of common stock under share-based compensation plans	11.3			11.3
Issuance of common stock under share-based compensation plans, shares			341,975
Share-based compensation	22.8			22.8
Equity component of convertible senior notes	77.7			77.7
Purchase of capped calls related to convertible senior notes	(33.0)			(33.0)
Foreign currency translation	11.0							11.0
Change in unrealized (loss) gain, net of tax	(12.3)							(12.3)
Change in pension liability adjustment, net of tax	2.8							2.8
Ending balance at Mar. 31, 2021	2,159.3		$ 1.5	2,685.3		(253.0)		(274.5)
Balance, shares at Mar. 31, 2021			148,913,387
Beginning balance at Dec. 31, 2020	2,098.2		$ 1.5	2,606.5		(233.8)		(276.0)
Balance, shares at Dec. 31, 2020			148,571,412
Net loss	(65.9)
Ending balance at Sep. 30, 2021	2,221.8		$ 1.5	2,805.7		(299.7)		(285.7)
Balance, shares at Sep. 30, 2021			151,165,177
Beginning balance at Mar. 31, 2021	2,159.3		$ 1.5	2,685.3		(253.0)		(274.5)
Balance, shares at Mar. 31, 2021			148,913,387
Net loss	(25.8)					(25.8)
Issuance of common stock under share-based compensation plans	23.1			23.1
Issuance of common stock under share-based compensation plans, shares			838,862
Share-based compensation	31.4			31.4
Foreign currency translation	13.0							13.0
Change in unrealized (loss) gain, net of tax	(4.0)							(4.0)
Change in pension liability adjustment, net of tax	2.8							2.8
Ending balance at Jun. 30, 2021	2,199.8		$ 1.5	2,739.8		(278.8)		(262.7)
Balance, shares at Jun. 30, 2021			149,752,249
Net loss	(20.9)					(20.9)
Issuance of common stock under share-based compensation plans	36.5			36.5
Issuance of common stock under share-based compensation plans, shares			1,412,928
Share-based compensation	29.4			29.4
Foreign currency translation	(19.7)							(19.7)
Change in unrealized (loss) gain, net of tax	(6.1)							(6.1)
Change in pension liability adjustment, net of tax	2.8							2.8
Ending balance at Sep. 30, 2021	2,221.8		$ 1.5	2,805.7		(299.7)		(285.7)
Balance, shares at Sep. 30, 2021			151,165,177
Beginning balance at Dec. 31, 2021	$ 2,227.5	$ (67.7)	$ 1.5	2,860.0	$ (77.7)	(309.2)	$ 10.0	(324.8)
Balance, shares at Dec. 31, 2021			151,995,031
Accounting Standards Update [Extensible List]	ASU 2020-06 [Member]
Net loss	$ (27.4)					(27.4)
Issuance of common stock under share-based compensation plans	6.0			6.0
Issuance of common stock under share-based compensation plans, shares			535,418
Share-based compensation	35.5			35.5
Foreign currency translation	15.6							15.6
Change in unrealized (loss) gain, net of tax	(51.0)							(51.0)
Change in pension liability adjustment, net of tax	2.3							2.3
Ending balance at Mar. 31, 2022	2,140.8		$ 1.5	2,823.8		(326.6)		(357.9)
Balance, shares at Mar. 31, 2022			152,530,449
Beginning balance at Dec. 31, 2021	2,227.5	$ (67.7)	$ 1.5	2,860.0	$ (77.7)	(309.2)	$ 10.0	(324.8)
Balance, shares at Dec. 31, 2021			151,995,031
Net loss	(68.2)
Ending balance at Sep. 30, 2022	2,051.2		$ 1.5	2,918.4		(367.4)		(501.3)
Balance, shares at Sep. 30, 2022			153,526,336
Beginning balance at Mar. 31, 2022	2,140.8		$ 1.5	2,823.8		(326.6)		(357.9)
Balance, shares at Mar. 31, 2022			152,530,449
Net loss	(19.8)					(19.8)
Issuance of common stock under share-based compensation plans	7.3			7.3
Issuance of common stock under share-based compensation plans, shares			503,145
Share-based compensation	38.8			38.8
Foreign currency translation	(47.4)							(47.4)
Change in unrealized (loss) gain, net of tax	(27.5)							(27.5)
Change in pension liability adjustment, net of tax	2.1							2.1
Ending balance at Jun. 30, 2022	2,094.3		$ 1.5	2,869.9		(346.4)		(430.7)
Balance, shares at Jun. 30, 2022			153,033,594
Net loss	(21.0)					(21.0)
Issuance of common stock under share-based compensation plans	9.3			9.3
Issuance of common stock under share-based compensation plans, shares			492,742
Share-based compensation	39.2			39.2
Foreign currency translation	(48.5)							(48.5)
Change in unrealized (loss) gain, net of tax	(24.2)							(24.2)
Change in pension liability adjustment, net of tax	(2.1)							(2.1)
Ending balance at Sep. 30, 2022	$ 2,051.2		$ 1.5	$ 2,918.4		$ (367.4)		$ (501.3)
Balance, shares at Sep. 30, 2022			153,526,336

XML

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Change in unrealized (loss) gain, tax	$ (8.8)	$ (10.0)	$ (18.4)	$ (2.3)	$ (1.4)	$ (4.4)
Change in pension liability adjustment, tax	$ 0.8	$ 0.8	$ 0.8	$ 1.0	$ 1.0	$ 1.0

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Cash Flows [Abstract]
Net loss	$ (68.2)	$ (65.9)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred income tax expense (benefit)	5.1	(45.0)
Depreciation and amortization	64.4	59.3
Amortization of debt issuance costs and debt discount	3.0	11.5
Provision for doubtful accounts	2.2	1.5
Net periodic pension and postretirement cost	3.6	6.6
Share-based compensation	113.5	83.6
Change in fair value of contingent consideration	3.2
Other		0.6
Changes in operating assets and liabilities excluding effects of acquisitions and divestitures:
Trade and other receivables	(16.2)	(5.3)
Prepaid expenses and other current assets	(14.0)	(13.9)
Accounts payable and other accrued expenses	4.5	1.9
Deferred revenue	(3.5)	5.2
Employee compensation and benefits	(2.8)	(5.1)
Accrued interest	(0.3)	0.3
Accrued taxes	(0.1)	20.9
Other assets and liabilities	(3.6)	(7.3)
Net cash provided by operating activities	90.8	48.9
Cash Flows from Investing Activities
Purchase of customer funds marketable securities	(534.3)	(500.5)
Proceeds from sale and maturity of customer funds marketable securities	304.2	409.2
Expenditures for property, plant, and equipment	(10.4)	(7.3)
Expenditures for software and technology	(54.5)	(38.4)
Acquisition costs, net of cash and restricted cash acquired		(373.5)
Net cash used in investing activities	(295.0)	(510.5)
Cash Flows from Financing Activities
Increase in customer funds obligations, net	1,010.4	1,631.0
Proceeds from issuance of common stock under share-based compensation plans	22.6	70.9
Repayment of long-term debt obligations	(6.3)	(4.3)
Proceeds from revolving credit facility		295.0
Repayment of revolving credit facility		(295.0)
Proceeds from issuance of convertible senior notes, net of issuance costs		561.8
Purchases of capped calls related to convertible senior notes		(45.0)
Net cash provided by financing activities	1,026.7	2,214.4
Effect of exchange rate changes on cash, restricted cash, and equivalents	(8.1)	(0.5)
Net increase in cash, restricted cash, and equivalents	814.4	1,752.3
Cash, restricted cash, and equivalents at beginning of period	1,952.8	2,228.5
Cash, restricted cash, and equivalents at end of period	2,767.2	3,980.8
Reconciliation of cash, restricted cash, and equivalents to the condensed consolidated balance sheets
Cash and equivalents	408.4	378.8
Restricted cash	0.8	1.9
Restricted cash and equivalents included in customer funds	2,358.0	3,600.1
Total cash, restricted cash, and equivalents	$ 2,767.2	$ 3,980.8

XML

Organization

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

1. Organization

Ceridian HCM Holding Inc. and its subsidiaries (also referred to in this report as “Ceridian,” “we,” “our,” “us,” or the “Company”) offer a broad range of services and software designed to help employers more effectively manage employment processes, such as payroll, payroll-related tax filing, human resource information systems, employee self-service, time and labor management, employee assistance programs, and recruitment and applicant screening. Our technology-based services are typically provided through long-term customer relationships that result in a high level of recurring revenue.

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accounting policies we follow are set forth in Note 2, “Summary of Significant Accounting Policies,” to our audited consolidated financial statements in our 2021 Form 10-K. The following notes should be read in conjunction with these policies and other disclosures in our 2021 Form 10-K.

In the opinion of management, the unaudited condensed consolidated financial statements contained herein reflect all adjustments (consisting only of normal recurring adjustments, except as set forth in these notes to condensed consolidated financial statements) necessary to present fairly in all material aspects the financial position, results of operations, comprehensive income (loss), and cash flows from all periods presented. Interim results are not necessarily indicative of results for a full year.

Deferred Costs

Deferred costs, which primarily consist of deferred sales commissions, included within Other assets on our condensed consolidated balance sheets were $141.0 million and $144.5 million as of September 30, 2022, and December 31, 2021, respectively. Amortization expense for the deferred costs was $13.1 million and $11.7 million for the three months ended September 30, 2022, and 2021, respectively, and $38.5 million and $34.0 million for the nine months ended September 30, 2022, and 2021, respectively.

Recently Issued and Adopted Accounting Pronouncements from the Financial Accounting Standards Board

Standard	Issuance Date	Description	Adoption Date	Effect on the Financial Statements
Accounting Standards Update ("ASU") 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)	August 2020	This amendment simplifies the accounting for convertible instruments by removing certain separation models required under current GAAP for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost.	January 2022	We adopted the guidance as of January 1, 2022, using the modified retrospective method of transition. The adoption resulted in the elimination of the debt discount (and related deferred tax liability) that was recorded within equity related to our Convertible Senior Notes. The net impact of the adjustments was recorded to the opening balance of accumulated deficit and additional paid in capital. The impact to the condensed consolidated balance sheet was as follows: (1) increase of $92.9 million to long-term debt, (2) decrease of $77.7 million to additional paid-in capital, net of allocated issuance costs of $2.7 million and deferred tax impact of $28.2 million, and (3) decrease to accumulated deficit of $10.0 million.
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	March 2020	This amendment provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.	Not yet adopted	This amendment may be elected over time through December 31, 2022 as reference rate reform activities occur. We do not expect the adoption of this guidance to have a significant impact on our financial statements.

XML

Business Combinations

9 Months Ended

Sep. 30, 2022

Business Combinations [Abstract]

Business Combinations

3. Business Combinations

ADAM HCM

On December 3, 2021, we completed the acquisition of 100% of the outstanding interests in ATI ROW, LLC and ADAM HCM MEXICO, S. de R.L de C.V (collectively, "ADAM HCM") for $34.5 million. ADAM HCM is a payroll and HCM company in Latin America.

The purchase accounting was considered complete as of June 30, 2022. Intangible assets recorded for this acquisition consist of $7.5 million of customer relationships, $2.9 million of developed technology, and $0.4 million of trade name. Of the goodwill associated with this acquisition, $24.0 million is deductible for income tax purposes.

The major classes of assets and liabilities to which we have allocated the purchase price were as follows:

	(Dollars in millions)
Cash and equivalents	$	0.2
Trade receivables, prepaid expenses, and other current assets		0.9
Goodwill		24.0
Other intangible assets		10.8
Other assets		0.2
Accounts payable and other current liabilities		(1.6	)
Total purchase price	$	34.5

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	September 30, 2022
	Level 1		Level 2			Level 3			Total
	(Dollars in millions)
Assets
Available for sale customer funds assets	$	—	$	1,977.3	(a)	$	—		$	1,977.3
Total assets measured at fair value	$	—	$	1,977.3		$	—		$	1,977.3
Liabilities
DataFuzion contingent consideration	$	—	$	—		$	9.2	(b)	$	9.2
Total liabilities measured at fair value	$	—	$	—		$	9.2		$	9.2

	December 31, 2021
	Level 1		Level 2			Level 3			Total
	(Dollars in millions)
Assets
Available for sale customer funds assets	$	—	$	1,952.4	(a)	$	—		$	1,952.4
Total assets measured at fair value	$	—	$	1,952.4		$	—		$	1,952.4
Liabilities
DataFuzion contingent consideration	$	—	$	—		$	6.0	(b)	$	6.0
Total liabilities measured at fair value	$	—	$	—		$	6.0		$	6.0

(a)Fair value is based on inputs that are observable for the asset or liability, other than quoted prices.

(b)For the contingent consideration related to the 2021 acquisition of certain assets and liabilities of DataFuzion HCM, Inc. ("DataFuzion"), we utilize an option pricing model, specifically a Black-Scholes-Merton model, to estimate the fair value of the contingent liability as of the reporting dates. This model uses certain assumptions related to risk-free rates and volatility as well as certain judgments in forecasting annual recurring revenue. The contingent consideration has been measured as Level 3 given the unobservable inputs that are significant to the measurement of liability. The contingent consideration is included within other liabilities in our condensed consolidated balance sheets.

During the three and nine months ended September 30, 2022, we recognized expense of $1.2 million and $3.2 million, respectively, within selling, general, and administrative expense in our condensed consolidated statements of operations due to the remeasurement of the DataFuzion contingent consideration.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

During the nine months ended September 30, 2022, we did not re-measure any financial assets or liabilities at fair value on a nonrecurring basis. During the year ended December 31, 2021, assets and liabilities acquired as part of business combinations and recognized as part of our convertible debt issuance have been recorded at fair value on a nonrecurring basis.

XML

Customer Funds

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Customer Funds

5. Customer Funds

In certain jurisdictions, we collect funds for payment of payroll and taxes; temporarily hold such funds until payment is due; remit the funds to the customers’ employees and appropriate taxing authorities; file federal, state, and local tax returns; and handle related regulatory correspondence and amendments. The customer assets are held in segregated accounts intended for the specific purpose of satisfying customer funding obligations and therefore are not freely available for our general business use. In the U.S. and Canada, these customer funds are held in trusts.

Investment income from invested customer funds, also referred to as float revenue or float, is a component of our compensation for providing services under agreements with our customers. Investment income from invested customer funds included in recurring revenue was $21.3 million and $9.9 million for the three months ended September 30, 2022, and 2021, respectively, and $47.4 million and $31.0 million for the nine months ended September 30, 2022, and 2021. Investment income includes interest income, realized gains and losses from sales of customer funds’ investments, and unrealized credit losses determined to be unrecoverable.

The amortized cost of customer funds as of September 30, 2022, and December 31, 2021, is the original cost of assets acquired. The amortized cost and fair values of investments of customer funds available for sale were as follows:

	September 30, 2022
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
	(Dollars in millions)
Money market securities, investments carried at cost    and other cash equivalents	$	2,346.0	$	—	$	—			2,346.0
Available for sale investments:
U.S. government and agency securities		701.4		—		(55.2	)		646.2
Canadian and provincial government securities		428.3		0.1		(17.5	)		410.9
Corporate debt securities		653.6		0.4		(38.1	)		615.9
Asset-backed securities		169.2		—		(5.9	)		163.3
Mortgage-backed securities		15.1		—		(0.8	)		14.3
Other short-term investments		58.4		—		—			58.4
Other securities		74.4		—		(6.1	)		68.3
Total available for sale investments		2,100.4		0.5		(123.6	)		1,977.3
Invested customer funds		4,446.4	$	0.5	$	(123.6	)		4,323.3
Receivables		10.2							12.0
Total customer funds	$	4,456.6						$	4,335.3

	December 31, 2021
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
	(Dollars in millions)
Money market securities, investments carried at cost    and other cash equivalents	$	1,562.4	$	—	$	—		$	1,562.4
Available for sale investments:
U.S. government and agency securities		697.8		9.5		(5.8	)		701.5
Canadian and provincial government securities		399.9		5.3		(1.3	)		403.9
Corporate debt securities		551.4		8.3		(3.1	)		556.6
Asset-backed securities		174.2		1.5		(0.3	)		175.4
Mortgage-backed securities		2.7		—		—			2.7
Other short-term investments		41.4		—		—			41.4
Other securities		71.7		—		(0.8	)		70.9
Total available for sale investments		1,939.1		24.6		(11.3	)		1,952.4
Invested customer funds		3,501.5	$	24.6	$	(11.3	)		3,514.8
Receivables		18.4							21.0
Total customer funds	$	3,519.9						$	3,535.8

The following represents the gross unrealized losses and the related fair value of the investments of customer funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	September 30, 2022
	Less than 12 months					12 months or more					Total
	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
	(Dollars in millions)
U.S. government and agency securities	$	(27.1	)	$	413.3	$	(28.1	)	$	230.0	$	(55.2	)	$	643.3
Canadian and provincial government securities		(11.9	)		344.8		(5.6	)		58.4		(17.5	)		403.2
Corporate debt securities		(24.1	)		488.0		(14.0	)		116.1		(38.1	)		604.1
Asset-backed securities		(4.5	)		136.0		(1.4	)		25.8		(5.9	)		161.8
Mortgage-backed securities		(0.8	)		14.3		—			—		(0.8	)		14.3
Other securities		(2.3	)		31.6		(3.8	)		36.6		(6.1	)		68.2
Total available for sale investments	$	(70.7	)	$	1,428.0	$	(52.9	)	$	466.9	$	(123.6	)	$	1,894.9

Management does not believe that any individual unrealized loss was unrecoverable as of September 30, 2022. The unrealized losses are primarily attributable to changes in interest rates and not to credit deterioration. We currently do not intend to sell or expect to be required to sell the securities before the time required to recover the amortized cost.

The amortized cost and fair value of investment securities available for sale at September 30, 2022, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or to prepay obligations with or without call or prepayment penalties.

	September 30, 2022
	Cost		Fair Value
	(Dollars in millions)
Due in one year or less	$	2,734.6	$	2,731.8
Due in one to three years		649.4		618.8
Due in three to five years		819.6		753.6
Due after five years		242.8		219.1
Invested customer funds	$	4,446.4	$	4,323.3

XML

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill

Goodwill and changes therein were as follows:

	(Dollars in millions)
Balance at December 31, 2020	$	2,031.8
Acquisitions		308.2
Translation		(16.4	)
Balance at December 31, 2021		2,323.6
Acquisition (a)		0.5
Translation		(62.3	)
Balance at September 30, 2022	$	2,261.8

a)The purchase accounting was finalized for the ADAM HCM acquisition during the second quarter of 2022. Refer to Note 3, "Business Combinations" to our condensed consolidated financial statements for additional information.

Intangible Assets

Intangible assets consisted of the following:

	September 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
	(Dollars in millions)
Customer lists and relationships	$	295.1	$	(224.3	)	$	70.8	4-12
Trade name		182.9		(4.0	)		178.9	3-5 and Indefinite
Technology		223.8		(175.1	)		48.7	3-5
Total other intangible assets	$	701.8	$	(403.4	)	$	298.4

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
	(Dollars in millions)
Customer lists and relationships	$	308.4	$	(220.4	)	$	88.0	4-12
Trade name		184.4		(3.2	)		181.2	3-5 and Indefinite
Technology		233.9		(170.6	)		63.3	3-5
Total other intangible assets	$	726.7	$	(394.2	)	$	332.5

As of October 1 each year, we perform an impairment assessment of our indefinite-lived intangible assets, which includes our Ceridian and Dayforce trade names, which have a carrying value of $167.2 million and $4.4 million, respectively as of September 30, 2022. We continue to evaluate the use of our trade names and branding in our sales and marketing efforts. If there is a fundamental shift in the method of our branding in the future, we will assess the impact on the carrying amount of our trade name intangible assets to determine whether an impairment exists. If it is determined that an impairment has occurred, it would be recognized during the period in which the decision was made to make the fundamental shift.

Amortization expense related to definite-lived intangible assets was $7.5 million and $7.3 million for the three months ended September 30, 2022, and 2021, respectively, and $22.9 million and $19.3 million for the nine months ended September 30, 2022, and 2021 respectively.

XML

Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

7. Debt

Overview

Our debt obligations consisted of the following as of the periods presented:

	September 30,		December 31,
	2022		2021
	(Dollars in millions)
Term Debt, interest rate of 5.6% and 2.6%, respectively	$	652.8	$	657.9
Revolving Credit Facility ($300.0 million available capacity less amounts reserved for    letters of credit, which were $2.0 million and $2.1 million, respectively)		—		—
Convertible Senior Notes, interest rate of 0.25%		575.0		575.0
Australia Line of Credit (AUD $1.5 million and $2.9 million letter of credit capacity, respectively, which were fully utilized; USD $1.0 million and USD $2.1 million, respectively)		—		—
Financing lease liabilities (Please refer to Note 13)		8.8		9.6
Total debt		1,236.6		1,242.5
Less unamortized discount on Term Debt and Convertible Senior Notes (a)		0.7		95.5
Less unamortized debt issuance costs on Term Debt and Convertible Senior Notes (a)		13.7		14.3
Less current portion of long-term debt		8.1		8.3
Long-term debt, less current portion	$	1,214.1	$	1,124.4

a)We adopted ASU 2020-06 as of January 1, 2022. The unamortized discount and debt issuance costs on the Convertible Senior Notes is presented post-adoption of ASU 2020-06 as of September 30, 2022 and is presented pre-adoption of ASU 2020-06 as of December 31, 2021. Refer to the Convertible Senior Notes section below for further discussion of the impacts of the adoption of ASU 2020-06 on our condensed consolidated financial statements.

Accrued interest and fees related to the debt obligations was $0.2 million and $0.5 million as of September 30, 2022 and December 31, 2021, respectively, and is included within Other accrued expenses in our condensed consolidated balance sheets.

Senior Secured Credit Facility

On April 30, 2018, we completed the refinancing of our debt by entering into a new credit agreement. Pursuant to the terms of the new credit agreement, we became borrower of (i) a $680.0 million term loan debt facility (the “Term Debt”) and (ii) a $300.0 million revolving credit facility (the “Revolving Credit Facility”) (collectively, the “Senior Secured Credit Facility”). Our obligations under the Senior Secured Credit Facility are secured by first priority security interests in substantially all of our assets and the domestic subsidiary guarantors, subject to permitted liens and certain exceptions.

The Term Debt will mature on April 30, 2025. We are required to make annual amortization payments in respect of the Term Debt in an amount equal to 1.00% of the original principal amount thereof, payable in equal quarterly installments of 0.25% of the original principal amount of the first lien term debt. On December 15, 2021, we completed the second amendment to our Senior Secured Credit Facility, which extended that maturity date of the Revolving Credit Facility from April 30, 2023 to January 29, 2025. The Revolving Credit Facility does not require amortization payments.

Convertible Senior Notes

In March 2021, we issued $575.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2026 in a private offering to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended, and pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws, including the exercise in full by the initial purchasers of their option to purchase an additional $75.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2026 (collectively, the “Convertible Senior Notes”). The Convertible Senior Notes bear interest at a rate of 0.25% per year and interest is payable semiannually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. The Convertible Senior Notes mature on March 15, 2026, unless earlier converted, redeemed or repurchased. The total net proceeds from the offering, after deducting initial purchase discounts and other debt issuance costs, were $561.8 million.

The following table presents details of the Convertible Senior Notes:

	Initial Conversion Rate per $1,000 Principal	Initial Conversion Price per Share
Convertible Senior Notes	7.5641 shares	$	132.20

The Convertible Senior Notes will be convertible at the option of the holders at any time only under certain circumstances as outlined in Note 9, “Debt,” to our audited consolidated financial statements in our 2021 Form 10-K. The conditions allowing holders of the Convertible Senior Notes to convert have not been met and therefore were not convertible as of September 30, 2022.

On December 30, 2021, we notified the holders of the Convertible Senior Notes of our irrevocable election to settle the conversion obligation in connection with the Convertible Senior Notes submitted for conversion on or after January 1, 2022, or at maturity with a combination of cash and shares of our common stock. Generally, under this settlement method, the conversion value will be settled in cash in an amount no less than the principal amount being converted, and any excess of the conversion value over the principal amount will be settled, at our election, in cash or shares of common stock.

On January 1, 2022, we adopted ASU 2020-06 using the modified retrospective transition method. Under such transition, prior-period information has not been retrospectively adjusted for this change in accounting guidance.

Upon the adoption of ASU 2020-06, the Convertible Senior Notes are accounted for as a single liability, and the carrying amount of the Convertible Senior Notes was $564.7 million as of September 30, 2022, with principal of $575.0 million, net of issuance costs of $10.3 million. The Convertible Senior Notes are included within Long-term debt, less current portion in our condensed consolidated balance sheets as of September 30, 2022. The issuance costs related to the Convertible Senior Notes are being amortized to interest expense over the contractual term of the Convertible Senior Notes at an effective interest rate of 5.1%.

Interest expense recognized related to the Convertible Senior Notes was as follows:

	Three Months Ended September 30, 2022		Three Months Ended September 30, 2021		Nine Months Ended September 30, 2022		Nine Months Ended September 30, 2021
	(Post-adoption of ASU 2020-06)		(Pre-adoption of ASU 2020-06)		(Post-adoption of ASU 2020-06)		(Pre-adoption of ASU 2020-06)
	(Dollars in millions)
Contractual interest expense	$	0.4	$	0.4	$	1.0	$	0.9
Amortization of debt discount		—		4.4		—		9.5
Amortization of debt issuance costs		0.6		0.5		2.0		1.1
Total	$	1.0	$	5.3	$	3.0	$	11.5

Capped Calls

In March 2021, in connection with the pricing of the Convertible Senior Notes, we entered into capped call transactions with the option counterparties (the “Capped Calls”). The Capped Calls each have an initial strike price of $132.20 per share, and an initial cap price of $179.26 per share, both subject to certain adjustments. The capped call transactions are generally expected to reduce potential dilution to our common stock upon any conversion of the Convertible Senior Notes and/or offset any potential cash payments we would be required to make in excess of the principal amount of converted Convertible Senior Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Convertible Senior Notes. As the Capped Calls qualify for a scope exception from derivative accounting for instruments that are both indexed to the issuer's own stock and classified in stockholder’s equity in our condensed consolidated balance sheet, we have recorded an amount of $33.0 million as a reduction to additional paid-in capital which will not be remeasured. This represents the premium of $45.0 million paid for the purchase of the Capped Calls, net of the deferred tax impact of $12.0 million.

Future Payments and Maturities of Debt

The future principal payments and maturities of our indebtedness, excluding financing lease obligations, are as follows:

Years Ending December 31,	Amount
	(Dollars in millions)
2022	$	1.7
2023		6.8
2024		6.8
2025		637.5
2026		575.0
	$	1,227.8

Fair Value of Debt

Our debt does not trade in active markets and was considered to be a Level 2 measurement at September 30, 2022. The fair value of the Term Debt was based on the borrowing rates currently available to us for bank loans with similar terms and average maturities and the limited trades of our debt. The fair value of the Convertible Senior Notes was determined based on the closing trading price per $1,000 of the Convertible Senior Notes as of the last day of trading for the period and is primarily affected by the trading price of our common stock and market interest rates. The fair value of our debt was estimated to be $1,086.1 million and $1,248.9 million as of September 30, 2022, and December 31, 2021, respectively.

XML

Employee Benefit Plans

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

8. Employee Benefit Plans

The components of net periodic cost for our defined benefit pension plan and for our postretirement benefit plan are included in the following tables:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net Periodic Pension Cost	(Dollars in millions)
Interest cost	$	2.2		$	1.7		$	6.6		$	5.1
Actuarial loss amortization		3.4			4.4			10.2			13.0
Less: Expected return on plan assets		(4.0	)		(3.3	)		(11.9	)		(9.9	)
Net periodic pension cost	$	1.6		$	2.8		$	4.9		$	8.2

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net Periodic Postretirement Benefit	(Dollars in millions)
Interest cost	$	0.1		$	—		$	0.2		$	0.1
Actuarial gain amortization		(0.5	)		(0.5	)		(1.5	)		(1.5	)
Prior service credit amortization		—			(0.1	)		—			(0.2	)
Net periodic postretirement benefit gain	$	(0.4	)	$	(0.6	)	$	(1.3	)	$	(1.6	)

XML

Share-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

9. Share-Based Compensation

Our share-based compensation consists of stock options, restricted stock units (“RSU”), and performance-based stock units (“PSU”). We also offer an employee stock purchase plan.

Under the 2013 Ceridian HCM Holding Inc. Stock Incentive Plan, as amended ("2013 SIP") and Ceridian HCM Holding Inc. 2018 Equity Incentive Plan (as amended and restated from time to time, the “2018 EIP”), we have shares reserved for issuance of common stock to eligible employees and our Board of Directors. The 2018 EIP serves as a successor to the 2013 SIP as we ceased granting awards under the 2013 SIP as of April 24, 2018, and we do not intend to grant any additional awards under the 2013 SIP. Most of our equity awards under the 2018 EIP vest either annually or quarterly on a pro rata basis, generally over a one-, three-, four-, or five-year period or on a specific date if certain performance criteria are satisfied and certain equity values are attained. In addition, upon termination of service, all vested awards must be exercised generally within 90 days after termination, or these awards will be forfeited. The equity awards have a 10-year contractual term, and the options have an exercise price that is not less than the fair market value of the underlying stock on the date of grant.

Pursuant to the evergreen refresh provision of the 2018 EIP, on February 23, 2022, the Board of Directors approved an increase to the share reserve of the three percent of the number of shares of common stock outstanding on January 31, 2022 to take place on March 31, 2022. Further, our Board of Directors approved an amendment effective April 1, 2022, to remove the evergreen refresh provision of the 2018 EIP that permitted the share reserve to be increased on March 31 of each of the first ten calendar years during the term of the 2018 EIP, by the lesser of (i) three percent of the number of shares of our common stock outstanding on each January 31 immediately prior to the date of increase or (ii) such number of shares of our common stock determined by the Board of Directors.

As of September 30, 2022, there were 914,330 stock options and RSUs outstanding under the 2013 SIP and there were 11,963,525 stock options, RSUs, and PSUs outstanding and 13,789,715 shares available for future grants of equity awards under the 2018 EIP.

Total share-based compensation expense was $39.2 million and $29.4 million for the three months ended September 30, 2022, and 2021, respectively, and $113.5 million and $83.6 million for the nine months ended September 30, 2022, and 2021.

Performance-Based Stock Options

Performance-based stock option activity under the 2013 SIP and the 2018 EIP was as follows:

	Shares			Weighted Average Exercise Price (per share)			Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Performance-based options outstanding at December 31, 2021		1,777,050		$	64.72			8.3	$	70.6
Granted		—			—			—		—
Exercised		(12,755	)		(13.46	)		—		—
Forfeited or expired		(1,857	)		(13.46	)		—		—
Performance-based options outstanding at September 30, 2022		1,762,438		$	65.15			7.6	$	0.2
Performance-based options exercisable at September 30, 2022		262,438		$	64.50			7.7	$	0.2

As of September 30, 2022, there was $4.5 million of share-based compensation expense related to unvested performance-based stock option awards not yet recognized, which is expected to be recognized over a weighted-average period of 0.5 years.

Performance Stock Units

PSU activity under the 2018 EIP was as follows:

	Shares
PSUs outstanding at December 31, 2021		318,745
Granted		582,662
Shares issued upon vesting of PSUs		(168,414	)
Forfeited or canceled		(22,069	)
PSUs outstanding at September 30, 2022		710,924
PSUs releasable at September 30, 2022		—

In 2021, we granted PSUs under the Ceridian HCM Holding Inc. 2021 Management Incentive Plan (the “2021 MIP”) for the incentive period of January 1, 2021 through December 31, 2021, and also as part of long term incentive grants to certain members of management. One-third of the PSUs granted in 2021 as part of long term incentive grants to certain members of management vested on March 8, 2022, and will vest on each of March 8, 2023, and March 8, 2024.

On February 24, 2022, we granted PSUs under the 2022 Ceridian HCM Holding, Inc. Management Incentive Plan (the “2022 MIP”) for the incentive period of January 1, 2022 through December 31, 2022, and also as part of long term incentive grants to certain members of management. The vesting conditions for the PSUs granted on February 24, 2022, are based on the following performance criteria: (1) the Cloud revenue, excluding float revenue (the “Cloud Revenue Goal”) (2) the adjusted EBITDA, excluding float revenue (the “Adjusted EBITDA Goal”), and (3) the Sales per employee per month (“PEPM”) annual contract value (“ACV”) (the “Sales PEPM ACV Goal”), for fiscal year 2022 (collectively the “Performance Goals”).

Both the Cloud Revenue Goal and the Adjusted EBITDA Goal are calculated based on our operating results on a constant currency basis as adjusted to exclude: float revenue; foreign exchange gain (loss); share-based compensation expense and related employer taxes; severance charges; restructuring consulting fees; significant acquisitions or disposals and related transaction costs; as well as other non-recurring items, subject to the Board of Directors approval. The Sales PEPM ACV Goal is calculated based on the sales of our solutions on a constant currency basis that contribute to Cloud recurring revenue. Any cash payment under the 2022 MIP and the vesting conditions for the PSU awards granted in 2022 will be determined based on our performance against the achievement of the Performance Goals, and the payout that a participant can receive may be between 0% for not meeting the applicable thresholds of any of the Performance Goals, up to a maximum total payout of 167% for achieving the maximum level of all of the Performance Goals. Upon vesting of a PSU, a participant will receive shares of common stock of the Company. The probability of vesting of the PSUs related to the 2022 MIP and as part of long term incentive grants to certain members of management will continue to be evaluated throughout 2022, and share-based compensation will be recognized in accordance with that probability.

As of September 30, 2022, there was $22.7 million of share-based compensation expense related to unvested PSUs not yet recognized.

Restricted Stock Units

RSU activity under the 2013 SIP and the 2018 EIP was as follows:

	Shares
RSUs outstanding at December 31, 2021		1,935,939
Granted		1,507,286
Shares issued upon vesting of RSUs		(456,617	)
Forfeited or canceled		(140,140	)
RSUs outstanding at September 30, 2022		2,846,468
RSUs releasable at September 30, 2022		660,613

During the nine months ended September 30, 2022, 519,294 RSUs vested. As of September 30, 2022, there were 2,185,855 unvested RSUs outstanding and 660,613 vested RSUs outstanding. As of September 30, 2022, there was $115.6 million of share-based compensation expense related to unvested RSUs not yet recognized, which is expected to be recognized over a weighted-average period of 1.5 years.

Term-Based Stock Options

Term-based stock option activity under the 2013 SIP and the 2018 EIP was as follows:

	Shares			Weighted Average Exercise Price (per share)			Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Term-based options outstanding at December 31, 2021		8,515,869		$	48.87			7.3	$	473.4
Granted		81,145			56.29			—		—
Exercised		(693,875	)		(32.70	)		—		—
Forfeited or expired		(345,114	)		(58.31	)		—		—
Term-based options outstanding at September 30, 2022		7,558,025		$	50.00			6.6	$	84.4
Term-based options exercisable at September 30, 2022		5,169,434		$	43.57			6.3	$	78.8

As of September 30, 2022, there was $37.8 million of share-based compensation expense related to unvested term-based stock options not yet recognized, which is expected to be recognized over a weighted-average period of 0.8 years.

Global Employee Stock Purchase Plan

We maintain the Ceridian HCM Holding Inc. Global Employee Stock Purchase Plan (“GESPP”) pursuant to which we have shares reserved for the issuance of common stock to eligible participants through quarterly purchases via payroll deductions. A total of 1,701,453 shares of common stock are available for future issuances under the plan as of September 30, 2022. The purchase price is the lower of 85% of the fair market value of a share of common stock on (i) January 1 or (ii) the purchase date.

Our GESPP activity was as follows:

Period Ended	Shares Issued		Purchase Price (per share)
March 31, 2022		56,208	$	58.11
June 30, 2022		84,541		40.02
September 30, 2022		59,599		47.50

XML

Revenue

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

10. Revenue

Disaggregation of Revenue

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in millions)
Revenue:
Cloud
Dayforce
Recurring	$	207.8	$	160.3	$	590.7	$	456.2
Professional services and other		46.4		38.4		134.2		113.2
Total Dayforce revenue		254.2		198.7		724.9		569.4
Powerpay
Recurring		22.6		20.7		66.5		61.5
Professional services and other		0.1		0.2		0.4		0.8
Total Powerpay revenue		22.7		20.9		66.9		62.3
Total Cloud revenue		276.9		219.6		791.8		631.7
Bureau
Recurring		33.4		34.0		105.6		101.4
Professional services and other		5.3		3.6		12.7		9.0
Total Bureau revenue		38.7		37.6		118.3		110.4
Total revenue	$	315.6	$	257.2	$	910.1	$	742.1

Recurring revenue includes float revenue of $21.3 million and $9.9 million for the three months ended September 30, 2022, and 2021, respectively, and $47.4 million and $31.0 million for the nine months ended September 30, 2022, and 2021, respectively.

Contract Balances

A contract asset is generally recorded when revenue recognized for professional service performance obligations exceed the contractual amount of billings for implementation related professional services. Contract assets were $69.2 million and $62.7 million as of September 30, 2022, and December 31, 2021, respectively. Contract assets expected to be recognized in revenue within twelve months are included within Prepaid expenses and other current assets, with the remaining contract assets included within Other assets on our condensed consolidated balance sheets.

Deferred Revenue

Deferred revenue primarily consists of payments received in advance of revenue recognition. The changes in deferred revenue were as follows:

	Nine Months Ended September 30,
	2022			2021
	(Dollars in millions)
Deferred revenue, beginning of period	$	48.7		$	24.4
New billings		483.2			399.6
Acquired billings		—			17.0
Revenue recognized		(486.5	)		(394.0	)
Effect of exchange rate		(2.8	)		(0.5	)
Deferred revenue, end of period	$	42.6		$	46.5

Transaction Price for Remaining Performance Obligations

As of September 30, 2022, approximately $1,076.3 million of revenue is expected to be recognized over the next three years from remaining performance obligations, which represents contracted revenue for recurring services and fixed price professional services, primarily implementation services, that has not yet been recognized, including deferred revenue and unbilled amounts that will be recognized as revenue in future periods. In accordance with the practical expedient provided in ASC Topic 606, performance obligations that are billed and recognized as they are delivered, primarily professional services contracts that are on a time and materials basis, are excluded from the transaction price for remaining performance obligations disclosed above.

XML

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

11. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows:

	Foreign Currency Translation Adjustment			Unrealized Gain (Loss) from Invested Customer Funds			Pension Liability Adjustment			Total
	(Dollars in millions)
Balance as of December 31, 2021	$	(177.3	)	$	2.8		$	(150.3	)	$	(324.8	)
Other comprehensive (loss) income before income taxes and reclassifications		(80.3	)		(139.9	)		0.2			(220.0	)
Income tax benefit (expense)		—			37.2			(2.4	)		34.8
Reclassifications to earnings		—			—			8.7			8.7
Other comprehensive (loss) income		(80.3	)		(102.7	)		6.5			(176.5	)
Balance as of September 30, 2022	$	(257.6	)	$	(99.9	)	$	(143.8	)	$	(501.3	)

XML

Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

Our income tax provision represents federal, state, and international taxes on our income recognized for financial statement purposes and includes the effects of temporary differences between financial statement income and income recognized for tax return purposes. Deferred tax assets and liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities. We record a valuation allowance to reduce our deferred tax assets to reflect the net deferred tax assets that we believe will be realized. In assessing the likelihood that we will be able to recover our deferred tax assets and the need for a valuation allowance, we consider all available evidence, both positive and negative, including historical levels of pre-tax book income, expiration of net operating losses, changes in our debt and equity structure, expectations and risks associated with estimates of future taxable income, ongoing prudent and feasible tax planning strategies, as well as current tax laws. As of September 30, 2022, we have a valuation allowance of $45.4 million against certain deferred tax assets consisting primarily of $12.6 million attributable to state net operating loss carryovers, and $31.0 million attributable to deferred tax assets recorded as part of a previous acquisition.

We recorded an income tax expense of $7.8 million during the nine months ended September 30, 2022, consisting of tax expense of $9.5 million attributable to share-based compensation, $8.5 million attributable to the U.S Global Intangible Low Tax Income ("GILTI"), and $2.5 million attributable to the U.S. Base Erosion and Anti-Abuse Tax ("BEAT"), partially offset by a $12.7 million tax benefit from current operations.

There were no unrecognized tax benefits as of September 30, 2022, and December 31, 2021. We make adjustments to these reserves when facts and circumstances change, such as the closing of tax audits or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2017.

XML

Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

13. Leases

Supplemental balance sheet information related to leases was as follows:

Lease Type	Balance Sheet Classification	September 30, 2022		December 31, 2021
		(Dollars in millions)
ASSETS
Operating lease assets	Trade and other receivables, net	$	0.1	$	0.2
Operating lease assets	Prepaid expenses and other current assets		2.6		3.4
Operating lease assets	Right of use lease asset		27.5		29.4
Financing lease assets	Property, plant, and equipment, net		7.3		8.3
Total lease assets		$	37.5	$	41.3
LIABILITIES
Current
Financing lease liabilities	Current portion of long-term debt	$	1.3	$	1.5
Operating lease liabilities	Current portion of long-term lease liabilities		14.9		11.3
Noncurrent
Financing lease liabilities	Long-term debt, less current portion		7.5		8.1
Operating lease liabilities	Long-term lease liabilities, less current portion		23.0		32.7
Total lease liabilities		$	46.7	$	53.6

The components of lease expense were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Lease Cost	(Dollars in millions)
Operating lease cost	$	2.5		$	1.3		$	7.4		$	3.9
Financing lease cost:
Depreciation of lease assets		0.3			0.3			1.0			1.0
Interest on lease liabilities		0.1			0.1			0.3			0.2
Sublease income		(0.1	)		(0.6	)		(0.3	)		(1.9	)
Total lease cost, net	$	2.8		$	1.1		$	8.4		$	3.2

XML

Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

14. Commitments and Contingencies

Legal Matters

We are subject to claims and a number of judicial and administrative proceedings considered normal in the course of our current and past operations, including employment-related disputes, contract disputes, disputes with our competitors, intellectual property disputes, government audits and proceedings, customer disputes, and tort claims. In some proceedings, the claimant seeks damages as well as other relief, which, if granted, would require substantial expenditures on our part.

Our general terms and conditions in customer contracts frequently include a provision indicating we will indemnify and hold our customers harmless from and against any and all claims alleging that the services and materials furnished by us violate any third party’s patent, trade secret, copyright, or other intellectual property right. We are not aware of any material pending litigation concerning these indemnifications.

Some of these matters raise difficult and complex factual and legal issues and are subject to many uncertainties, including the facts and circumstances of each particular action, and the jurisdiction, forum, and law under which each action is proceeding. Because of these complexities, final disposition of some of these proceedings may not occur for several years. As such, we are not always able to estimate the amount of our possible future liabilities, if any.

There can be no certainty that we may not ultimately incur charges in excess of presently established or future financial accruals or insurance coverage. Although occasional adverse decisions or settlements may occur, it is management’s opinion that the final disposition of these proceedings will not, considering the merits of the claims and available resources or reserves and insurance, and based upon the facts and circumstances currently known, have a material adverse effect on our financial position or results of operations.

XML

Net Loss per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Net Loss per Share

15. Net Loss per Share

We compute net loss per share of common stock using the treasury stock method. The basic and diluted net loss per share computations were calculated as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(Dollars in millions, except share and per share data)
Numerator:
Net loss	$	(21.0	)	$	(20.9	)	$	(68.2	)	$	(65.9	)
Denominator:
Weighted-average shares outstanding - basic		153,184,846			150,450,595			152,691,008			149,083,666
Effect of dilutive equity instruments		—			—			—			—
Weighted-average shares outstanding - diluted		153,184,846			150,450,595			152,691,008			149,083,666
Net loss per share - basic	$	(0.14	)	$	(0.14	)	$	(0.45	)	$	(0.44	)
Net loss per share - diluted	$	(0.14	)	$	(0.14	)	$	(0.45	)	$	(0.44	)

The following potentially dilutive weighted-average shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Stock options		5,356,629		5,709,780		5,633,051		5,594,020
Restricted stock units		1,831,846		564,902		1,359,481		555,521
Performance stock units		1,430,383		912,970		1,370,918		735,166

The shares underlying the conversion option in the Convertible Senior Notes were not considered in the calculation of diluted net loss per share as the effect would have been anti-dilutive. Based on the initial conversion price, the entire outstanding principal amount of the Convertible Senior Notes as of September 30, 2022 would have been convertible into approximately 4.3 million shares of our common stock. Since we expect to settle the principal amount of the Convertible Senior Notes in cash, we use the treasury stock method for calculating any potential dilutive effect on diluted net income per share, if applicable. As a result, only the amount by which the conversion value exceeds the aggregate principal amount of the Convertible Senior Notes (the “conversion spread”) is considered in the diluted earnings per share computation. The conversion spread has a dilutive impact on diluted net income per share when the average market price of our common stock for a given period exceeds the initial conversion price of $132.20 per share for the Convertible Senior Notes. We excluded the potentially dilutive effect of the conversion spread of the Convertible Senior Notes as the average market price of our common stock during the three and nine months ended September 30, 2022 was less than the conversion price of the Convertible Senior Notes. In connection with the issuance of the Convertible Senior Notes, we entered into Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive.

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accounting policies we follow are set forth in Note 2, “Summary of Significant Accounting Policies,” to our audited consolidated financial statements in our 2021 Form 10-K. The following notes should be read in conjunction with these policies and other disclosures in our 2021 Form 10-K.

In the opinion of management, the unaudited condensed consolidated financial statements contained herein reflect all adjustments (consisting only of normal recurring adjustments, except as set forth in these notes to condensed consolidated financial statements) necessary to present fairly in all material aspects the financial position, results of operations, comprehensive income (loss), and cash flows from all periods presented. Interim results are not necessarily indicative of results for a full year.

Deferred Costs

Deferred Costs

Deferred costs, which primarily consist of deferred sales commissions, included within Other assets on our condensed consolidated balance sheets were $141.0 million and $144.5 million as of September 30, 2022, and December 31, 2021, respectively. Amortization expense for the deferred costs was $13.1 million and $11.7 million for the three months ended September 30, 2022, and 2021, respectively, and $38.5 million and $34.0 million for the nine months ended September 30, 2022, and 2021, respectively.

Recently Issued and Adopted Accounting Pronouncements from the Financial Accounting Standards Board

Recently Issued and Adopted Accounting Pronouncements from the Financial Accounting Standards Board

Standard	Issuance Date	Description	Adoption Date	Effect on the Financial Statements
Accounting Standards Update ("ASU") 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)	August 2020	This amendment simplifies the accounting for convertible instruments by removing certain separation models required under current GAAP for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost.	January 2022	We adopted the guidance as of January 1, 2022, using the modified retrospective method of transition. The adoption resulted in the elimination of the debt discount (and related deferred tax liability) that was recorded within equity related to our Convertible Senior Notes. The net impact of the adjustments was recorded to the opening balance of accumulated deficit and additional paid in capital. The impact to the condensed consolidated balance sheet was as follows: (1) increase of $92.9 million to long-term debt, (2) decrease of $77.7 million to additional paid-in capital, net of allocated issuance costs of $2.7 million and deferred tax impact of $28.2 million, and (3) decrease to accumulated deficit of $10.0 million.
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	March 2020	This amendment provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.	Not yet adopted	This amendment may be elected over time through December 31, 2022 as reference rate reform activities occur. We do not expect the adoption of this guidance to have a significant impact on our financial statements.

XML

Business Combinations (Tables)

9 Months Ended

Sep. 30, 2022

ADAM HCM [Member]

Business Acquisition [Line Items]

Schedule of Major Classes of Assets and Liabilities Allocated to Purchase Price

The major classes of assets and liabilities to which we have allocated the purchase price were as follows:

	(Dollars in millions)
Cash and equivalents	$	0.2
Trade receivables, prepaid expenses, and other current assets		0.9
Goodwill		24.0
Other intangible assets		10.8
Other assets		0.2
Accounts payable and other current liabilities		(1.6	)
Total purchase price	$	34.5

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

Our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	September 30, 2022
	Level 1		Level 2			Level 3			Total
	(Dollars in millions)
Assets
Available for sale customer funds assets	$	—	$	1,977.3	(a)	$	—		$	1,977.3
Total assets measured at fair value	$	—	$	1,977.3		$	—		$	1,977.3
Liabilities
DataFuzion contingent consideration	$	—	$	—		$	9.2	(b)	$	9.2
Total liabilities measured at fair value	$	—	$	—		$	9.2		$	9.2

	December 31, 2021
	Level 1		Level 2			Level 3			Total
	(Dollars in millions)
Assets
Available for sale customer funds assets	$	—	$	1,952.4	(a)	$	—		$	1,952.4
Total assets measured at fair value	$	—	$	1,952.4		$	—		$	1,952.4
Liabilities
DataFuzion contingent consideration	$	—	$	—		$	6.0	(b)	$	6.0
Total liabilities measured at fair value	$	—	$	—		$	6.0		$	6.0

(a)Fair value is based on inputs that are observable for the asset or liability, other than quoted prices.

(b)For the contingent consideration related to the 2021 acquisition of certain assets and liabilities of DataFuzion HCM, Inc. ("DataFuzion"), we utilize an option pricing model, specifically a Black-Scholes-Merton model, to estimate the fair value of the contingent liability as of the reporting dates. This model uses certain assumptions related to risk-free rates and volatility as well as certain judgments in forecasting annual recurring revenue. The contingent consideration has been measured as Level 3 given the unobservable inputs that are significant to the measurement of liability. The contingent consideration is included within other liabilities in our condensed consolidated balance sheets.

XML

Customer Funds (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Fair Values of Investments of Customer Funds Available for Sale

The amortized cost of customer funds as of September 30, 2022, and December 31, 2021, is the original cost of assets acquired. The amortized cost and fair values of investments of customer funds available for sale were as follows:

	September 30, 2022
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
	(Dollars in millions)
Money market securities, investments carried at cost    and other cash equivalents	$	2,346.0	$	—	$	—			2,346.0
Available for sale investments:
U.S. government and agency securities		701.4		—		(55.2	)		646.2
Canadian and provincial government securities		428.3		0.1		(17.5	)		410.9
Corporate debt securities		653.6		0.4		(38.1	)		615.9
Asset-backed securities		169.2		—		(5.9	)		163.3
Mortgage-backed securities		15.1		—		(0.8	)		14.3
Other short-term investments		58.4		—		—			58.4
Other securities		74.4		—		(6.1	)		68.3
Total available for sale investments		2,100.4		0.5		(123.6	)		1,977.3
Invested customer funds		4,446.4	$	0.5	$	(123.6	)		4,323.3
Receivables		10.2							12.0
Total customer funds	$	4,456.6						$	4,335.3

	December 31, 2021
	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
	(Dollars in millions)
Money market securities, investments carried at cost    and other cash equivalents	$	1,562.4	$	—	$	—		$	1,562.4
Available for sale investments:
U.S. government and agency securities		697.8		9.5		(5.8	)		701.5
Canadian and provincial government securities		399.9		5.3		(1.3	)		403.9
Corporate debt securities		551.4		8.3		(3.1	)		556.6
Asset-backed securities		174.2		1.5		(0.3	)		175.4
Mortgage-backed securities		2.7		—		—			2.7
Other short-term investments		41.4		—		—			41.4
Other securities		71.7		—		(0.8	)		70.9
Total available for sale investments		1,939.1		24.6		(11.3	)		1,952.4
Invested customer funds		3,501.5	$	24.6	$	(11.3	)		3,514.8
Receivables		18.4							21.0
Total customer funds	$	3,519.9						$	3,535.8

Schedule of Unrealized Losses and Fair Value

The following represents the gross unrealized losses and the related fair value of the investments of customer funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	September 30, 2022
	Less than 12 months					12 months or more					Total
	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
	(Dollars in millions)
U.S. government and agency securities	$	(27.1	)	$	413.3	$	(28.1	)	$	230.0	$	(55.2	)	$	643.3
Canadian and provincial government securities		(11.9	)		344.8		(5.6	)		58.4		(17.5	)		403.2
Corporate debt securities		(24.1	)		488.0		(14.0	)		116.1		(38.1	)		604.1
Asset-backed securities		(4.5	)		136.0		(1.4	)		25.8		(5.9	)		161.8
Mortgage-backed securities		(0.8	)		14.3		—			—		(0.8	)		14.3
Other securities		(2.3	)		31.6		(3.8	)		36.6		(6.1	)		68.2
Total available for sale investments	$	(70.7	)	$	1,428.0	$	(52.9	)	$	466.9	$	(123.6	)	$	1,894.9

Schedule of Amortized Cost and Fair Value of Investment Securities Available for Sale by Contractual Maturity

The amortized cost and fair value of investment securities available for sale at September 30, 2022, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or to prepay obligations with or without call or prepayment penalties.

	September 30, 2022
	Cost		Fair Value
	(Dollars in millions)
Due in one year or less	$	2,734.6	$	2,731.8
Due in one to three years		649.4		618.8
Due in three to five years		819.6		753.6
Due after five years		242.8		219.1
Invested customer funds	$	4,446.4	$	4,323.3

XML

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

Goodwill and changes therein were as follows:

	(Dollars in millions)
Balance at December 31, 2020	$	2,031.8
Acquisitions		308.2
Translation		(16.4	)
Balance at December 31, 2021		2,323.6
Acquisition (a)		0.5
Translation		(62.3	)
Balance at September 30, 2022	$	2,261.8

a)The purchase accounting was finalized for the ADAM HCM acquisition during the second quarter of 2022. Refer to Note 3, "Business Combinations" to our condensed consolidated financial statements for additional information.

Schedule of Intangible Assets

Intangible assets consisted of the following:

	September 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
	(Dollars in millions)
Customer lists and relationships	$	295.1	$	(224.3	)	$	70.8	4-12
Trade name		182.9		(4.0	)		178.9	3-5 and Indefinite
Technology		223.8		(175.1	)		48.7	3-5
Total other intangible assets	$	701.8	$	(403.4	)	$	298.4

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
	(Dollars in millions)
Customer lists and relationships	$	308.4	$	(220.4	)	$	88.0	4-12
Trade name		184.4		(3.2	)		181.2	3-5 and Indefinite
Technology		233.9		(170.6	)		63.3	3-5
Total other intangible assets	$	726.7	$	(394.2	)	$	332.5

XML

Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Debt Obligations

Our debt obligations consisted of the following as of the periods presented:

	September 30,		December 31,
	2022		2021
	(Dollars in millions)
Term Debt, interest rate of 5.6% and 2.6%, respectively	$	652.8	$	657.9
Revolving Credit Facility ($300.0 million available capacity less amounts reserved for    letters of credit, which were $2.0 million and $2.1 million, respectively)		—		—
Convertible Senior Notes, interest rate of 0.25%		575.0		575.0
Australia Line of Credit (AUD $1.5 million and $2.9 million letter of credit capacity, respectively, which were fully utilized; USD $1.0 million and USD $2.1 million, respectively)		—		—
Financing lease liabilities (Please refer to Note 13)		8.8		9.6
Total debt		1,236.6		1,242.5
Less unamortized discount on Term Debt and Convertible Senior Notes (a)		0.7		95.5
Less unamortized debt issuance costs on Term Debt and Convertible Senior Notes (a)		13.7		14.3
Less current portion of long-term debt		8.1		8.3
Long-term debt, less current portion	$	1,214.1	$	1,124.4

a)We adopted ASU 2020-06 as of January 1, 2022. The unamortized discount and debt issuance costs on the Convertible Senior Notes is presented post-adoption of ASU 2020-06 as of September 30, 2022 and is presented pre-adoption of ASU 2020-06 as of December 31, 2021. Refer to the Convertible Senior Notes section below for further discussion of the impacts of the adoption of ASU 2020-06 on our condensed consolidated financial statements.

Schedule of Convertible Senior Notes

The following table presents details of the Convertible Senior Notes:

	Initial Conversion Rate per $1,000 Principal	Initial Conversion Price per Share
Convertible Senior Notes	7.5641 shares	$	132.20

Summary of Interest Expense Recognized Related to Notes

Interest expense recognized related to the Convertible Senior Notes was as follows:

	Three Months Ended September 30, 2022		Three Months Ended September 30, 2021		Nine Months Ended September 30, 2022		Nine Months Ended September 30, 2021
	(Post-adoption of ASU 2020-06)		(Pre-adoption of ASU 2020-06)		(Post-adoption of ASU 2020-06)		(Pre-adoption of ASU 2020-06)
	(Dollars in millions)
Contractual interest expense	$	0.4	$	0.4	$	1.0	$	0.9
Amortization of debt discount		—		4.4		—		9.5
Amortization of debt issuance costs		0.6		0.5		2.0		1.1
Total	$	1.0	$	5.3	$	3.0	$	11.5

Schedule of Future Principal Payments and Maturities of Indebtedness, Excluding Financing Lease Obligations

The future principal payments and maturities of our indebtedness, excluding financing lease obligations, are as follows:

Years Ending December 31,	Amount
	(Dollars in millions)
2022	$	1.7
2023		6.8
2024		6.8
2025		637.5
2026		575.0
	$	1,227.8

XML

Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Components of Net Periodic Cost for Defined Benefit Pension Plan and for Postretirement Benefit Plan

The components of net periodic cost for our defined benefit pension plan and for our postretirement benefit plan are included in the following tables:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net Periodic Pension Cost	(Dollars in millions)
Interest cost	$	2.2		$	1.7		$	6.6		$	5.1
Actuarial loss amortization		3.4			4.4			10.2			13.0
Less: Expected return on plan assets		(4.0	)		(3.3	)		(11.9	)		(9.9	)
Net periodic pension cost	$	1.6		$	2.8		$	4.9		$	8.2

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net Periodic Postretirement Benefit	(Dollars in millions)
Interest cost	$	0.1		$	—		$	0.2		$	0.1
Actuarial gain amortization		(0.5	)		(0.5	)		(1.5	)		(1.5	)
Prior service credit amortization		—			(0.1	)		—			(0.2	)
Net periodic postretirement benefit gain	$	(0.4	)	$	(0.6	)	$	(1.3	)	$	(1.6	)

XML

Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Performance-Based Stock Option Activity

Performance-based stock option activity under the 2013 SIP and the 2018 EIP was as follows:

	Shares			Weighted Average Exercise Price (per share)			Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Performance-based options outstanding at December 31, 2021		1,777,050		$	64.72			8.3	$	70.6
Granted		—			—			—		—
Exercised		(12,755	)		(13.46	)		—		—
Forfeited or expired		(1,857	)		(13.46	)		—		—
Performance-based options outstanding at September 30, 2022		1,762,438		$	65.15			7.6	$	0.2
Performance-based options exercisable at September 30, 2022		262,438		$	64.50			7.7	$	0.2

Summary of Performance Stock Units

PSU activity under the 2018 EIP was as follows:

	Shares
PSUs outstanding at December 31, 2021		318,745
Granted		582,662
Shares issued upon vesting of PSUs		(168,414	)
Forfeited or canceled		(22,069	)
PSUs outstanding at September 30, 2022		710,924
PSUs releasable at September 30, 2022		—

Summary of Restricted Stock Units Activity

RSU activity under the 2013 SIP and the 2018 EIP was as follows:

	Shares
RSUs outstanding at December 31, 2021		1,935,939
Granted		1,507,286
Shares issued upon vesting of RSUs		(456,617	)
Forfeited or canceled		(140,140	)
RSUs outstanding at September 30, 2022		2,846,468
RSUs releasable at September 30, 2022		660,613

Summary of Term-Based Stock Option Activity

Term-based stock option activity under the 2013 SIP and the 2018 EIP was as follows:

	Shares			Weighted Average Exercise Price (per share)			Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Term-based options outstanding at December 31, 2021		8,515,869		$	48.87			7.3	$	473.4
Granted		81,145			56.29			—		—
Exercised		(693,875	)		(32.70	)		—		—
Forfeited or expired		(345,114	)		(58.31	)		—		—
Term-based options outstanding at September 30, 2022		7,558,025		$	50.00			6.6	$	84.4
Term-based options exercisable at September 30, 2022		5,169,434		$	43.57			6.3	$	78.8

Summary of Global Employee Stock Purchase Plan Activity

Our GESPP activity was as follows:

Period Ended	Shares Issued		Purchase Price (per share)
March 31, 2022		56,208	$	58.11
June 30, 2022		84,541		40.02
September 30, 2022		59,599		47.50

XML

Revenue (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue

Disaggregation of Revenue

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in millions)
Revenue:
Cloud
Dayforce
Recurring	$	207.8	$	160.3	$	590.7	$	456.2
Professional services and other		46.4		38.4		134.2		113.2
Total Dayforce revenue		254.2		198.7		724.9		569.4
Powerpay
Recurring		22.6		20.7		66.5		61.5
Professional services and other		0.1		0.2		0.4		0.8
Total Powerpay revenue		22.7		20.9		66.9		62.3
Total Cloud revenue		276.9		219.6		791.8		631.7
Bureau
Recurring		33.4		34.0		105.6		101.4
Professional services and other		5.3		3.6		12.7		9.0
Total Bureau revenue		38.7		37.6		118.3		110.4
Total revenue	$	315.6	$	257.2	$	910.1	$	742.1

Schedule of Changes in Deferred Revenue

Deferred revenue primarily consists of payments received in advance of revenue recognition. The changes in deferred revenue were as follows:

	Nine Months Ended September 30,
	2022			2021
	(Dollars in millions)
Deferred revenue, beginning of period	$	48.7		$	24.4
New billings		483.2			399.6
Acquired billings		—			17.0
Revenue recognized		(486.5	)		(394.0	)
Effect of exchange rate		(2.8	)		(0.5	)
Deferred revenue, end of period	$	42.6		$	46.5

XML

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows:

	Foreign Currency Translation Adjustment			Unrealized Gain (Loss) from Invested Customer Funds			Pension Liability Adjustment			Total
	(Dollars in millions)
Balance as of December 31, 2021	$	(177.3	)	$	2.8		$	(150.3	)	$	(324.8	)
Other comprehensive (loss) income before income taxes and reclassifications		(80.3	)		(139.9	)		0.2			(220.0	)
Income tax benefit (expense)		—			37.2			(2.4	)		34.8
Reclassifications to earnings		—			—			8.7			8.7
Other comprehensive (loss) income		(80.3	)		(102.7	)		6.5			(176.5	)
Balance as of September 30, 2022	$	(257.6	)	$	(99.9	)	$	(143.8	)	$	(501.3	)

XML

Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

Lease Type	Balance Sheet Classification	September 30, 2022		December 31, 2021
		(Dollars in millions)
ASSETS
Operating lease assets	Trade and other receivables, net	$	0.1	$	0.2
Operating lease assets	Prepaid expenses and other current assets		2.6		3.4
Operating lease assets	Right of use lease asset		27.5		29.4
Financing lease assets	Property, plant, and equipment, net		7.3		8.3
Total lease assets		$	37.5	$	41.3
LIABILITIES
Current
Financing lease liabilities	Current portion of long-term debt	$	1.3	$	1.5
Operating lease liabilities	Current portion of long-term lease liabilities		14.9		11.3
Noncurrent
Financing lease liabilities	Long-term debt, less current portion		7.5		8.1
Operating lease liabilities	Long-term lease liabilities, less current portion		23.0		32.7
Total lease liabilities		$	46.7	$	53.6

Components of Lease Expense

The components of lease expense were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Lease Cost	(Dollars in millions)
Operating lease cost	$	2.5		$	1.3		$	7.4		$	3.9
Financing lease cost:
Depreciation of lease assets		0.3			0.3			1.0			1.0
Interest on lease liabilities		0.1			0.1			0.3			0.2
Sublease income		(0.1	)		(0.6	)		(0.3	)		(1.9	)
Total lease cost, net	$	2.8		$	1.1		$	8.4		$	3.2

XML

Net Loss per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Computations of Basic and Diluted Net Loss per Share

The basic and diluted net loss per share computations were calculated as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(Dollars in millions, except share and per share data)
Numerator:
Net loss	$	(21.0	)	$	(20.9	)	$	(68.2	)	$	(65.9	)
Denominator:
Weighted-average shares outstanding - basic		153,184,846			150,450,595			152,691,008			149,083,666
Effect of dilutive equity instruments		—			—			—			—
Weighted-average shares outstanding - diluted		153,184,846			150,450,595			152,691,008			149,083,666
Net loss per share - basic	$	(0.14	)	$	(0.14	)	$	(0.45	)	$	(0.44	)
Net loss per share - diluted	$	(0.14	)	$	(0.14	)	$	(0.45	)	$	(0.44	)

Schedule of Potentially Dilutive Weighted Average Shares Excluded from Calculation of Diluted Net Loss per Share

The following potentially dilutive weighted-average shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Stock options		5,356,629		5,709,780		5,633,051		5,594,020
Restricted stock units		1,831,846		564,902		1,359,481		555,521
Performance stock units		1,430,383		912,970		1,370,918		735,166

XML

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jan. 01, 2022	Dec. 31, 2021
Significant Accounting Policies [Line Items]
Amortization expense for the deferred costs	$ 13.1	$ 11.7	$ 38.5	$ 34.0
Decrease in additional paid-in capital	2,918.4		2,918.4			$ 2,860.0
Decrease to accumulated deficit	$ (367.4)		$ (367.4)			(309.2)
ASU 2020-06 [Member]
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 01, 2022		Jan. 01, 2022
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true		true
ASU 2020-06 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Significant Accounting Policies [Line Items]
Increase in long-term debt					$ 92.9
Decrease in additional paid-in capital					(77.7)
Allocated issuance costs					2.7
Deferred tax impact					28.2
Decrease to accumulated deficit					$ (10.0)
Other Assets [Member]
Significant Accounting Policies [Line Items]
Deferred costs	$ 141.0		$ 141.0			$ 144.5

XML

Business Combinations - Additional Information (Detail) - ADAM HCM [Member] - USD ($) $ in Millions	Dec. 03, 2021	Jun. 30, 2022
Business Acquisition [Line Items]
Percentage of voting interest	100.00%
Purchase price	$ 34.5
Intangible assets		$ 10.8
Goodwill, amount deductible for income tax		24.0
Trade Name [Member]
Business Acquisition [Line Items]
Intangible assets		0.4
Customer Relationships [Member ]
Business Acquisition [Line Items]
Intangible assets		7.5
Developed Technology Intangible [Member]
Business Acquisition [Line Items]
Intangible assets		$ 2.9

XML

Business Combinations - Schedule of Major Classes of Assets and Liabilities Allocated to Purchase Price (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 2,261.8		$ 2,323.6	$ 2,031.8
ADAM HCM [Member]
Business Acquisition [Line Items]
Cash and equivalents		$ 0.2
Trade receivables, prepaid expenses, and other current assets		0.9
Goodwill		24.0
Other intangible assets		10.8
Other assets		0.2
Accounts payable and other current liabilities		(1.6)
Total purchase price		$ 34.5

XML

Fair Value Measurements - Asset and Liability Measured at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Millions		Sep. 30, 2022	Dec. 31, 2021
Assets
Available for sale customer funds assets		$ 1,977.3	$ 1,952.4
Total assets measured at fair value		1,977.3	1,952.4
Liabilities
DataFuzion contingent consideration		9.2	6.0
Total liabilities measured at fair value		9.2	6.0
Fair Value, Inputs, Level 2 [Member]
Assets
Available for sale customer funds assets	[1]	1,977.3	1,952.4
Total assets measured at fair value		1,977.3	1,952.4
Fair Value, Inputs, Level 3 [Member]
Liabilities
DataFuzion contingent consideration	[2]	9.2	6.0
Total liabilities measured at fair value		$ 9.2	$ 6.0

[1] Fair value is based on inputs that are observable for the asset or liability, other than quoted prices.

[2] For the contingent consideration related to the 2021 acquisition of certain assets and liabilities of DataFuzion HCM, Inc. ("DataFuzion"), we utilize an option pricing model, specifically a Black-Scholes-Merton model, to estimate the fair value of the contingent liability as of the reporting dates. This model uses certain assumptions related to risk-free rates and volatility as well as certain judgments in forecasting annual recurring revenue. The contingent consideration has been measured as Level 3 given the unobservable inputs that are significant to the measurement of liability. The contingent consideration is included within other liabilities in our condensed consolidated balance sheets.

XML

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Change in fair value of contingent consideration	$ 1.2	$ 3.2

XML

Customer Funds - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Investment income from invested customer funds included in recurring revenue	$ 21.3	$ 9.9	$ 47.4	$ 31.0

XML

Customer Funds - Investment of Customer Funds (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Money market securities, investments carried at cost and other cash equivalents, Fair Value	$ 2,346.0	$ 1,562.4
Invested customer funds, Fair Value	4,323.3	3,514.8
Receivables, Fair Value	12.0	21.0
Total customer funds, Fair Value	4,335.3	3,535.8
Money market securities, investments carried at cost and other cash equivalents, Amortized Cost	2,346.0	1,562.4
Invested customer funds, Amortized Cost	4,446.4	3,501.5
Receivables, Amortized Cost	10.2	18.4
Total customer funds, Amortized Cost	4,456.6	3,519.9
Amortized Cost	2,100.4	1,939.1
Gross Unrealized Gain	0.5	24.6
Gross Unrealized Loss	(123.6)	(11.3)
Fair value	1,977.3	1,952.4
U.S. Government and Agencies Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	701.4	697.8
Gross Unrealized Gain		9.5
Gross Unrealized Loss	(55.2)	(5.8)
Fair value	646.2	701.5
Canadian and Provincial Government Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	428.3	399.9
Gross Unrealized Gain	0.1	5.3
Gross Unrealized Loss	(17.5)	(1.3)
Fair value	410.9	403.9
Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	653.6	551.4
Gross Unrealized Gain	0.4	8.3
Gross Unrealized Loss	(38.1)	(3.1)
Fair value	615.9	556.6
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	169.2	174.2
Gross Unrealized Gain		1.5
Gross Unrealized Loss	(5.9)	(0.3)
Fair value	163.3	175.4
Mortgage-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	15.1	2.7
Gross Unrealized Loss	(0.8)
Fair value	14.3	2.7
Other Short-Term Investments [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	58.4	41.4
Fair value	58.4	41.4
Other Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	74.4	71.7
Gross Unrealized Loss	(6.1)	(0.8)
Fair value	$ 68.3	$ 70.9

XML

Customer Funds - Gross Unrealized Losses and Related Fair Value of Investment (Detail) $ in Millions	Sep. 30, 2022 USD ($)
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Unrealized Losses	$ (70.7)
Less than 12 months, Fair Value	1,428.0
12 months or more, Unrealized Losses	(52.9)
12 months or more, Fair Value	466.9
Total, Unrealized Losses	(123.6)
Total, Fair Value	1,894.9
U.S. Government and Agencies Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Unrealized Losses	(27.1)
Less than 12 months, Fair Value	413.3
12 months or more, Unrealized Losses	(28.1)
12 months or more, Fair Value	230.0
Total, Unrealized Losses	(55.2)
Total, Fair Value	643.3
Canadian and Provincial Government Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Unrealized Losses	(11.9)
Less than 12 months, Fair Value	344.8
12 months or more, Unrealized Losses	(5.6)
12 months or more, Fair Value	58.4
Total, Unrealized Losses	(17.5)
Total, Fair Value	403.2
Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Unrealized Losses	(24.1)
Less than 12 months, Fair Value	488.0
12 months or more, Unrealized Losses	(14.0)
12 months or more, Fair Value	116.1
Total, Unrealized Losses	(38.1)
Total, Fair Value	604.1
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Unrealized Losses	(4.5)
Less than 12 months, Fair Value	136.0
12 months or more, Unrealized Losses	(1.4)
12 months or more, Fair Value	25.8
Total, Unrealized Losses	(5.9)
Total, Fair Value	161.8
Mortgage-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Unrealized Losses	(0.8)
Less than 12 months, Fair Value	14.3
Total, Unrealized Losses	(0.8)
Total, Fair Value	14.3
Other Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Unrealized Losses	(2.3)
Less than 12 months, Fair Value	31.6
12 months or more, Unrealized Losses	(3.8)
12 months or more, Fair Value	36.6
Total, Unrealized Losses	(6.1)
Total, Fair Value	$ 68.2

XML

Customer Funds - Amortized Cost and Fair Value of Investment Security Available for Sale (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Cost	$ 2,734.6
Due in one to three years, Cost	649.4
Due in three to five years, Cost	819.6
Due after five years, Cost	242.8
Invested customer funds, Cost	4,446.4	$ 3,501.5
Due in one year or less, Fair Value	2,731.8
Due in one to three years, Fair Value	618.8
Due in three to five years, Fair Value	753.6
Due after five years, Fair Value	219.1
Invested customer funds, Fair Value	$ 4,323.3	$ 3,514.8

XML

Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Detail) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2022		Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Balance	$ 2,323.6		$ 2,031.8
Acquisition	0.5	[1]	308.2
Translation	(62.3)		(16.4)
Balance	$ 2,261.8		$ 2,323.6

[1] The purchase accounting was finalized for the ADAM HCM acquisition during the second quarter of 2022. Refer to Note 3, "Business Combinations" to our condensed consolidated financial statements for additional information.

XML

Goodwill and Intangible Assets - Schedule of Intangible Asset (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 701.8	$ 726.7
Accumulated Amortization	(403.4)	(394.2)
Net	298.4	332.5
Trade Name [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	182.9	184.4
Accumulated Amortization	(4.0)	(3.2)
Net	$ 178.9	$ 181.2
Minimum [Member] | Trade Name [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Estimated Life Range (Years)	3 years	3 years
Maximum [Member] | Trade Name [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Estimated Life Range (Years)	5 years	5 years
Estimated Life Range (Years)	Indefinite	Indefinite
Customer Lists and Relationships [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 295.1	$ 308.4
Accumulated Amortization	(224.3)	(220.4)
Net	$ 70.8	$ 88.0
Customer Lists and Relationships [Member] | Minimum [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Estimated Life Range (Years)	4 years	4 years
Customer Lists and Relationships [Member] | Maximum [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Estimated Life Range (Years)	12 years	12 years
Technology [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 223.8	$ 233.9
Accumulated Amortization	(175.1)	(170.6)
Net	$ 48.7	$ 63.3
Technology [Member] | Minimum [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Estimated Life Range (Years)	3 years	3 years
Technology [Member] | Maximum [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Estimated Life Range (Years)	5 years	5 years

XML

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Amortization expense	$ 7.5	$ 7.3	$ 22.9	$ 19.3
Ceridian Trade Name [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets, carrying value	167.2		167.2
Dayforce Trade Name [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets, carrying value	$ 4.4		$ 4.4

XML

Debt - Schedule of Debt Obligations (Detail) - USD ($) $ in Millions		Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total debt excluding financing lease liabilities		$ 1,227.8
Financing lease liabilities		8.8	$ 9.6
Total debt		1,236.6	1,242.5
Less current portion of long-term debt		8.1	8.3
Long-term debt, less current portion		1,214.1	1,124.4
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Total debt excluding financing lease liabilities		575.0	575.0
Term Debt and Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Less unamortized discount on Term Debt and Convertible Senior Notes	[1]	0.7	95.5
Less unamortized debt issuance costs on Term Debt and Convertible Senior Notes	[1]	13.7	14.3
Term Debt [Member]
Debt Instrument [Line Items]
Total debt excluding financing lease liabilities		$ 652.8	$ 657.9

[1] We adopted ASU 2020-06 as of January 1, 2022. The unamortized discount and debt issuance costs on the Convertible Senior Notes is presented post-adoption of ASU 2020-06 as of September 30, 2022 and is presented pre-adoption of ASU 2020-06 as of December 31, 2021. Refer to the Convertible Senior Notes section below for further discussion of the impacts of the adoption of ASU 2020-06 on our condensed consolidated financial statements.

XML

Debt - Schedule of Debt Obligations (Parenthetical) (Detail) $ in Millions, $ in Millions	Sep. 30, 2022 USD ($)	Sep. 30, 2022 AUD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 AUD ($)	Mar. 31, 2021	Apr. 30, 2018 USD ($)
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate on debt	0.25%	0.25%	0.25%	0.25%	0.25%
Term Debt [Member]
Debt Instrument [Line Items]
Interest rate on debt	5.60%	5.60%	2.60%	2.60%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Available capacity	$ 300.0		$ 300.0			$ 300.0
Revolving Credit Facility [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Available capacity	2.0		2.1
Foreign Line of Credit [Member] | Australia [Member]
Debt Instrument [Line Items]
Available capacity	$ 1.0		$ 2.1
Foreign Line of Credit [Member] | Australia [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Available capacity		$ 1.5		$ 2.9

XML

Debt - Additional Information (Detail) - USD ($)			1 Months Ended	9 Months Ended
	Dec. 15, 2021	Dec. 14, 2021	Mar. 31, 2021	Sep. 30, 2022	Dec. 31, 2021	Apr. 30, 2018
Debt Instrument [Line Items]
Accrued interest and fees				$ 200,000	$ 500,000
Fair value of our indebtedness				1,086,100,000	$ 1,248,900,000
Fair Value, Inputs, Level 2 [Member]
Debt Instrument [Line Items]
Trading price per principal amount of notes				1,000
Capped Calls [Member]
Debt Instrument [Line Items]
Capped call initial strike price			$ 132.20
Capped call initial cap price			$ 179.26
Derivative, premium paid			$ 45,000,000.0
Reduction to additional paid-in capital			33,000,000.0
Net of deferred tax impact			12,000,000.0
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument principal amount			$ 575,000,000.0	$ 575,000,000.0
Debt instrument maturity date				Mar. 15, 2026
Debt instrument percentage of aggregate principal amount			0.25%
Debt instrument additional aggregate principal amount			$ 75,000,000.0
Debt instrument interest rate stated percentage			0.25%	0.25%	0.25%
Net proceeds from deducting initial purchase discounts and other debt issuance costs			$ 561,800,000
Debt instrument frequency of periodic payment				semiannually
Debt instrument payment terms				The Convertible Senior Notes bear interest at a rate of 0.25% per year and interest is payable semiannually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021.
Debt instrument payment beginning date				Sep. 15, 2021
Debt instrument, convertible, carrying amount of equity component				$ 564,700,000
Debt issuance costs net				$ 10,300,000
Senior note, amortized interest rate				5.10%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Available capacity for letters of credit				$ 300,000,000.0	$ 300,000,000.0	$ 300,000,000.0
Line of credit maturity date	Jan. 29, 2025	Apr. 30, 2023
Term Debt [Member]
Debt Instrument [Line Items]
Debt instrument principal amount						$ 680,000,000.0
Debt instrument maturity date				Apr. 30, 2025
Debt instrument percentage of quarterly installment principal amount				0.25%
Debt instrument percentage of aggregate principal amount				1.00%
Debt instrument interest rate stated percentage				5.60%	2.60%

XML

Debt - Schedule of Convertible Senior Notes (Detail) - Convertible Senior Notes [Member]	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Debt Instrument [Line Items]
Initial Conversion Rate per $1,000 Principal | shares	7.5641
Initial Conversion Price per Share | $ / shares	$ 132.20

XML

Debt - Schedule of Convertible Senior Notes (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2022 USD ($)
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Initial conversion per principal amount	$ 1,000

XML

Debt - Summary of Interest Expense Recognized Related to Notes (Detail) - Convertible Senior Notes [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Contractual interest expense	$ 0.4	$ 0.4	$ 1.0	$ 0.9
Amortization of debt discount		4.4		9.5
Amortization of debt issuance costs	0.6	0.5	2.0	1.1
Total	$ 1.0	$ 5.3	$ 3.0	$ 11.5

XML

Debt - Schedule of Future Principal Payments and Maturities of Indebtedness, Excluding Financing Lease Obligations (Detail) $ in Millions	Sep. 30, 2022 USD ($)
Debt Disclosure [Abstract]
2022	$ 1.7
2023	6.8
2024	6.8
2025	637.5
2026	575.0
Principal payments and maturities excluding financing lease obligations	$ 1,227.8

XML

Employee Benefit Plans - Components of Net Periodic Cost for Defined Benefit Pension Plan and for Postretirement Benefit Plan (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic pension cost			$ 3.6	$ 6.6
Defined Benefit Pension Plan [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	$ 2.2	$ 1.7	6.6	5.1
Actuarial loss (gain) amortization	3.4	4.4	10.2	13.0
Less: Expected return on plan assets	(4.0)	(3.3)	(11.9)	(9.9)
Net periodic pension cost	1.6	2.8	4.9	8.2
Other Postretirement Benefits Plan [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	0.1		0.2	0.1
Actuarial loss (gain) amortization	(0.5)	(0.5)	(1.5)	(1.5)
Prior service credit amortization		(0.1)		(0.2)
Net periodic pension cost	$ (0.4)	$ (0.6)	$ (1.3)	$ (1.6)

XML

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Feb. 24, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Feb. 23, 2022	Apr. 24, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense		$ 39.2	$ 29.4	$ 113.5	$ 83.6
Performance Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense related to unvested stock option awards not yet recognized		4.5		$ 4.5
Share-based compensation expense related to unvested awards expected to be recognized over a weighted average period				6 months
Term Based Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense related to unvested stock option awards not yet recognized		$ 37.8		$ 37.8
Share-based compensation expense related to unvested awards expected to be recognized over a weighted average period				9 months 18 days
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense related to unvested awards expected to be recognized over a weighted average period				1 year 6 months
Stock options, vested				519,294
Unvested restricted stock units outstanding		2,185,855		2,185,855
Vested restricted stock units outstanding		660,613		660,613
Share-based compensation expense related to unvested restricted stock units not yet recognized		$ 115.6		$ 115.6
Performance Stock Units ("PSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense related to unvested PSUs not yet recognized		$ 22.7		$ 22.7
HCM Stock Incentive Plan 2013 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common shares outstanding		914,330		914,330
HCM Equity Incentive Plan 2018 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common shares outstanding		11,963,525		11,963,525
Share based compensation arrangement by share based payment award exercise period after employment termination				90 days
Stock option awards, contractual term				10 years
Shares reserved for issuance increase percentage						3.00%	3.00%
Shares available for future grants of equity awards		13,789,715		13,789,715
HCM Equity Incentive Plan 2018 [Member] | Share Based Compensation Award Tranche Two [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock vesting period				3 years
HCM Equity Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche Three [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock vesting period				4 years
HCM Equity Incentive Plan 2018 [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock vesting period				1 year
HCM Equity Incentive Plan 2018 [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock vesting period				5 years
2021 Management Incentive Plan [Member] | Share Based Compensation Award Tranche One [Member] | Performance Stock Units ("PSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage				33.33%
Vesting date				Mar. 08, 2022
2021 Management Incentive Plan [Member] | Share Based Compensation Award Tranche Two [Member] | Performance Stock Units ("PSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage				33.33%
Vesting date				Mar. 08, 2023
2021 Management Incentive Plan [Member] | Share-based Compensation Award, Tranche Three [Member] | Performance Stock Units ("PSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage				33.33%
Vesting date				Mar. 08, 2024
HCM Global Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for future grants of equity awards		1,701,453		1,701,453
Description for purchase price of fair market value of common stock				The purchase price is the lower of 85% of the fair market value of a share of common stock on (i) January 1 or (ii) the purchase date.
Percentage of fair market value of a share of common stock on offering date or purchase date				85.00%
2022 Management Incentive Plan [Member] | Performance Stock Units ("PSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum thresholds incentive vesting of PSUs	0.00%
Maximum percentage level achieving payout of PSUs	167.00%

XML

Share-Based Compensation - Summary of Performance-Based Stock Option Activity (Detail) - Performance Shares [Member] - Share Based Compensation Plans [Member] - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Shares
Options Outstanding at Beginning of Period	1,777,050
Options, Granted	0
Options, Exercised	(12,755)
Options, Forfeited or expired	(1,857)
Options Outstanding at End of Period	1,762,438	1,777,050
Options Exercisable at End of Period	262,438
Weighted Average Exercise Price (per share)
Weighted Average Exercise Price at Beginning of Period	$ 64.72
Weighted Average Exercise Price, Granted	0
Weighted Average Exercise Price, Exercised	(13.46)
Weighted Average Exercise Price, Forfeited or expired	(13.46)
Weighted Average Exercise Price at End of Period	65.15	$ 64.72
Weighted Average Exercise Price Exercisable at End of Period	$ 64.50
Weighted Average Remaining Contractual Term (in years)
Weighted Average Remaining Contractual Term (in years)	7 years 7 months 6 days	8 years 3 months 18 days
Weighted Average Remaining Contractual Term Exercisable (in years)	7 years 8 months 12 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Options Outstanding	$ 0.2	$ 70.6
Aggregate Intrinsic Value, Options Exercisable	$ 0.2

XML

Share-Based Compensation - Summary of Performance Stock Units (Detail) - Performance Stock Units ("PSUs") [Member] - Share Based Compensation Plans [Member]	9 Months Ended
	Sep. 30, 2022 shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Shares, outstanding at Beginning of Period	318,745
Shares, Granted	582,662
Shares issued upon vesting	(168,414)
Shares, Forfeited or canceled	(22,069)
Shares, outstanding at End of Period	710,924
Shares, releasable at End of Period	0

XML

Share-Based Compensation - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 2022 shares
Restricted Stock Units
Shares issued upon vesting	(519,294)
Shares, outstanding at End of Period	2,185,855
Share Based Compensation Plans [Member]
Restricted Stock Units
Shares, outstanding at Beginning of Period	1,935,939
Shares, Granted	1,507,286
Shares issued upon vesting	(456,617)
Shares, Forfeited or canceled	(140,140)
Shares, outstanding at End of Period	2,846,468
Shares, releasable at End of Period	660,613

XML

Share-Based Compensation - Summary of Term-Based Stock Option Activity (Detail) - Term Based Stock Options [Member] - Share Based Compensation Plans [Member] - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Shares
Options Outstanding at Beginning of Period	8,515,869
Options, Granted	81,145
Options, Exercised	(693,875)
Options, Forfeited or expired	(345,114)
Options Outstanding at End of Period	7,558,025	8,515,869
Options Exercisable at End of Period	5,169,434
Weighted Average Exercise Price (per share)
Weighted Average Exercise Price at Beginning of Period	$ 48.87
Weighted Average Exercise Price, Granted	56.29
Weighted Average Exercise Price, Exercised	(32.70)
Weighted Average Exercise Price, Forfeited or expired	(58.31)
Weighted Average Exercise Price at End of Period	50.00	$ 48.87
Weighted Average Exercise Price Exercisable at End of Period	$ 43.57
Weighted Average Remaining Contractual Term (in years)
Weighted Average Remaining Contractual Term (in years)	6 years 7 months 6 days	7 years 3 months 18 days
Weighted Average Remaining Contractual Term Exercisable (in years)	6 years 3 months 18 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Options Outstanding	$ 84.4	$ 473.4
Aggregate Intrinsic Value, Options Exercisable	$ 78.8

XML

Share-Based Compensation - Summary of Global Employee Stock Purchase Plan Activity (Detail) - Common Stock [Member] - HCM Global Employee Stock Purchase Plan [Member] - $ / shares	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued	59,599	84,541	56,208
Purchase Price (per share)	$ 47.50	$ 40.02	$ 58.11

XML

Revenue - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation Of Revenue [Line Items]
Total revenue	$ 315.6	$ 257.2	$ 910.1	$ 742.1
Cloud Dayforce Recurring [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	207.8	160.3	590.7	456.2
Cloud Dayforce Professional Services and Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	46.4	38.4	134.2	113.2
Cloud Dayforce Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	254.2	198.7	724.9	569.4
Cloud Powerpay Recurring [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	22.6	20.7	66.5	61.5
Cloud Powerpay Professional Services and Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	0.1	0.2	0.4	0.8
Cloud Powerpay Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	22.7	20.9	66.9	62.3
Cloud Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	276.9	219.6	791.8	631.7
Bureau Recurring Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	33.4	34.0	105.6	101.4
Bureau Professional Services and Other Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	5.3	3.6	12.7	9.0
Bureau Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 38.7	$ 37.6	$ 118.3	$ 110.4

XML

Revenue - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Revenue [Line Items]
Contract asset	$ 69.2		$ 69.2		$ 62.7
Remaining performance obligation, description of practical expedient			In accordance with the practical expedient provided in ASC Topic 606, performance obligations that are billed and recognized as they are delivered, primarily professional services contracts that are on a time and materials basis, are excluded from the transaction price for remaining performance obligations disclosed above.
Recurring [Member]
Revenue [Line Items]
Float revenue	$ 21.3	$ 9.9	$ 47.4	$ 31.0

XML

Revenue - Schedule of Changes in Deferred Revenue (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Deferred revenue, beginning of period	$ 48.7	$ 24.4
New billings	483.2	399.6
Acquired billings		17.0
Revenue recognized	(486.5)	(394.0)
Effect of exchange rate	(2.8)	(0.5)
Deferred revenue, end of period	$ 42.6	$ 46.5

XML

Revenue - Additional Information 1 (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 $ in Millions	Sep. 30, 2022 USD ($)
Revenue [Line Items]
Remaining performance obligations recognition period	3 years
Revenue expected to be recognized, amount	$ 1,076.3

XML

Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 2,227.5
Other comprehensive (loss) income before income taxes and reclassifications	(220.0)
Income tax benefit (expense)	34.8
Reclassifications to earnings	8.7
Other comprehensive (loss) income	(176.5)
Ending balance	2,051.2
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(177.3)
Other comprehensive (loss) income before income taxes and reclassifications	(80.3)
Other comprehensive (loss) income	(80.3)
Ending balance	(257.6)
Unrealized Gain (Loss) from Invested Customer Funds [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	2.8
Other comprehensive (loss) income before income taxes and reclassifications	(139.9)
Income tax benefit (expense)	37.2
Other comprehensive (loss) income	(102.7)
Ending balance	(99.9)
Pension Liability Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(150.3)
Other comprehensive (loss) income before income taxes and reclassifications	0.2
Income tax benefit (expense)	(2.4)
Reclassifications to earnings	8.7
Other comprehensive (loss) income	6.5
Ending balance	(143.8)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(324.8)
Ending balance	$ (501.3)

XML

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Taxes [Line Items]
Valuation allowance	$ 45,400,000		$ 45,400,000
Income tax (benefit) expense	4,000,000.0	$ (8,500,000)	7,800,000	$ (13,900,000)
Tax expense attributable to global intangible low tax income			8,500,000
Tax expense attributable to share-based compensation			9,500,000
Current income tax benefit			(12,700,000)
Unrecognized tax benefits	0		$ 0		$ 0
Income tax examination description			With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2017.
Previous Acquisition [Member]
Income Taxes [Line Items]
Valuation allowance	31,000,000.0		$ 31,000,000.0
State [Member]
Income Taxes [Line Items]
Valuation allowance	$ 12,600,000		12,600,000
Base Erosion and Anti-Abuse Tax ("BEAT") [Member]
Income Taxes [Line Items]
Income tax (benefit) expense			$ 2,500,000

XML

Leases - Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Operating Leased Assets [Line Items]
Right of use lease asset	$ 27.5	$ 29.4
Financing lease assets noncurrent	$ 7.3	$ 8.3
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant, and equipment, net	Property, plant, and equipment, net
Total lease assets	$ 37.5	$ 41.3
Finance lease liability current	$ 1.3	$ 1.5
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of long-term debt	Current portion of long-term debt
Operating lease liability current	$ 14.9	$ 11.3
Finance lease liability Noncurrent	$ 7.5	$ 8.1
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Long-term debt, less current portion	Long-term debt, less current portion
Operating lease liability noncurrent	$ 23.0	$ 32.7
Total lease liabilities	46.7	53.6
Trade And Other Receivables Net [Member]
Operating Leased Assets [Line Items]
Operating lease assets current	0.1	0.2
Prepaid Expenses and Other Current Assets [Member]
Operating Leased Assets [Line Items]
Operating lease assets current	$ 2.6	$ 3.4

XML

Leases - Components of Lease Expense (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Lease Cost
Operating lease cost	$ 2.5	$ 1.3	$ 7.4	$ 3.9
Financing lease cost:
Depreciation of lease assets	0.3	0.3	1.0	1.0
Interest on lease liabilities	0.1	0.1	0.3	0.2
Sublease income	(0.1)	(0.6)	(0.3)	(1.9)
Total lease cost, net	$ 2.8	$ 1.1	$ 8.4	$ 3.2

XML

Net Loss per Share - Schedule of Computations of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net loss	$ (21.0)	$ (19.8)	$ (27.4)	$ (20.9)	$ (25.8)	$ (19.2)	$ (68.2)	$ (65.9)
Denominator:
Weighted-average shares outstanding - basic	153,184,846			150,450,595			152,691,008	149,083,666
Weighted-average shares outstanding - diluted	153,184,846			150,450,595			152,691,008	149,083,666
Net loss per share - basic	$ (0.14)			$ (0.14)			$ (0.45)	$ (0.44)
Net loss per share - diluted	$ (0.14)			$ (0.14)			$ (0.45)	$ (0.44)

XML

Net Loss per Share - Schedule of Potentially Dilutive Weighted Average Shares Excluded from Calculation of Diluted Net Loss per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	5,356,629	5,709,780	5,633,051	5,594,020
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,831,846	564,902	1,359,481	555,521
Performance Stock Units ("PSUs") [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,430,383	912,970	1,370,918	735,166

XML

Net Loss per Share - Additional Information (Detail) Unit in Millions	9 Months Ended
	Sep. 30, 2022 Unit $ / shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Convertible senior notes would have been convertible into shares of our common stock | Unit	4.3
Convertible Senior Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Initial Conversion Price per Share | $ / shares	$ 132.20