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 March 31, 2019

☐ 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)

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: 140,840,259 shares of Common Stock, $0.01 par value per share, as of April 29, 2019.

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	27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	38
Item 4.	Controls and Procedures	39
PART II. OTHER INFORMATION		40
Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	41

2

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. As a result, 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 and the following:

• our inability to attain or to maintain profitability;

• significant competition for our solutions;

• our inability to continue to develop or to sell our existing Cloud solutions;

• our inability to manage our growth effectively;

• the risk that we may not be able to successfully migrate our Bureau customers to our Cloud solutions or to offset the decline in Bureau revenue with Cloud revenue;

• the market for enterprise cloud computing develops slower than we expect or declines;

• efforts to increase use of our Cloud solutions and our other applications may not succeed;

• we fail to provide enhancements and new features and modifications to our solutions;

• failure to comply the Federal Trade Commission’s (“FTC”) ongoing consent order regarding data protection;

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

• our failure to comply with applicable privacy, security and data laws, regulations and standards;

• changes in regulations governing privacy concerns and laws or other domestic or foreign data protection regulations;

• we are unable to successfully expand our current offerings into new markets or further penetrate existing markets;

• we are unable to meet the more complex configuration and integration demands of our large customers;

• our customers declining to renew their agreements with us or renewing at lower performance fee levels;

• we fail to manage our technical operations infrastructure;

• we are unable to maintain necessary third party relationships, and third party software licenses or there are errors in the software we license;

• our inability to protect our intellectual property rights, proprietary technology, information, processes, and know-how;

• we fail to keep pace with rapid technological changes and evolving industry standards; or

• changes in laws and regulations related to the Internet or changes in the Internet infrastructure itself.

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 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 you 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

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Ceridian HCM Holding Inc.

Condensed Consolidated Balance Sheets

(Unaudited, dollars in millions, except share data)

	March 31,			December 31,
	2019			2018
				*As Adjusted
ASSETS
Current assets:
Cash and equivalents	$	206.3		$	217.8
Trade and other receivables, net		68.8			63.9
Prepaids expenses and other current assets		55.3			48.9
Total current assets before customer trust funds		330.4			330.6
Customer trust funds		4,559.7			2,603.5
Total current assets		4,890.1			2,934.1
Right of use lease asset		39.9			—
Property, plant, and equipment, net		103.9			104.4
Goodwill		1,944.9			1,927.4
Other intangible assets, net		184.3			187.5
Other assets		96.0			94.4
Total assets	$	7,259.1		$	5,247.8
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	6.8		$	6.8
Short-term lease liabilities		13.9			—
Accounts payable		31.8			41.5
Deferred revenue		23.0			23.2
Employee compensation and benefits		38.9			54.5
Other accrued expenses		15.3			23.9
Total current liabilities before customer trust funds obligations		129.7			149.9
Customer trust funds obligations		4,554.0			2,619.7
Total current liabilities		4,683.7			2,769.6
Long-term debt, less current portion		662.1			663.5
Employee benefit plans		151.1			153.3
Long-term lease liabilities		32.7			—
Other liabilities		42.7			45.9
Total liabilities		5,572.3			3,632.3
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock, $0.01 par, 500,000,000 shares authorized, 140,675,332 and     139,453,710 shares issued and outstanding as of March 31, 2019 and     December 31, 2018, respectively		1.4			1.4
Additional paid in capital		2,351.7			2,325.6
Accumulated deficit		(297.3	)		(335.6	)
Accumulated other comprehensive loss		(369.0	)		(375.9	)
Total stockholders’ equity		1,686.8			1,615.5
Total liabilities and equity	$	7,259.1		$	5,247.8

*Please refer to Note 2 for a summary of adjustments.

See accompanying notes to condensed consolidated financial statements.

4

Ceridian HCM Holding Inc.

Condensed Consolidated Statements of Operations

(Unaudited, dollars in millions, except share and per share data)

	Three Months Ended March 31,
	2019		2018
			*As Adjusted
Revenue:
Recurring services	$	172.8	$	160.9
Professional services and other		30.9		27.9
Total revenue		203.7		188.8
Cost of revenue:
Recurring services		50.9		50.7
Professional services and other		35.3		32.8
Product development and management		15.2		13.7
Depreciation and amortization		8.7		8.7
Total cost of revenue		110.1		105.9
Gross profit		93.6		82.9
Selling, general, and administrative expense		66.2		54.9
Operating profit		27.4		28.0
Other expense (income), net		1.6		(2.2	)
Interest expense, net		8.9		22.2
Income from continuing operations before income taxes		16.9		8.0
Income tax expense		5.7		5.8
Income from continuing operations		11.2		2.2
Loss from discontinued operations		—		(2.1	)
Net income		11.2		0.1
Net loss attributable to noncontrolling interest		—		(0.5	)
Net income attributable to Ceridian	$	11.2	$	0.6
Net income (loss) per share attributable to Ceridian:
Basic	$	0.08	$	(0.07	)
Diluted	$	0.08	$	(0.07	)
Weighted average shares outstanding:
Basic		140,149,271		65,314,462
Diluted		147,042,228		65,314,462

*Please refer to Note 2 for a summary of adjustments.

See accompanying notes to condensed consolidated financial statements.

5

Ceridian HCM Holding Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, dollars in millions)

	Three Months Ended March 31,
	2019		2018
			*As Adjusted
Net income	$	11.2	$	0.1
Items of other comprehensive income (loss) before income taxes:
Change in foreign currency translation adjustment		12.3		(16.6	)
Change in unrealized gain (loss) from invested customer trust funds		21.9		(13.4	)
Change in pension liability adjustment (1)		2.5		2.9
Other comprehensive income (loss) before income taxes		36.7		(27.1	)
Income tax expense, net		2.7		0.8
Other comprehensive income (loss) after income taxes		34.0		(27.9	)
Comprehensive income (loss)		45.2		(27.8	)
Comprehensive loss attributable to noncontrolling interest		—		(0.7	)
Comprehensive income (loss) attributable to Ceridian	$	45.2	$	(27.1	)

(1) The amount of the pension liability adjustment recognized in the condensed consolidated statements of operations within other expense (income), net was $2.6 and $3.0 during the three months ended March 31, 2019, and 2018, respectively.

*Please refer to Note 2 for a summary of adjustments.

See accompanying notes to condensed consolidated financial statements.

6

Ceridian HCM Holding Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited, dollars in millions)

	Common Stock				Additional Paid In		Accumulated			Accumulated Other Comprehensive			Total Stockholders
	Shares		$		Capital		Deficit			Loss			Equity
Balance as of December 31, 2018, as adjusted*		139,453,710	$	1.4	$	2,325.6	$	(335.6	)	$	(375.9	)	$	1,615.5
Cumulative-effect adjustment to accumulated deficit related to the adoption    of ASU 2018-02 (Please refer to Note 2)		—		—		—		27.1			(27.1	)		—
Net income		—		—		—		11.2			—			11.2
Issuance of common stock upon exercise of options		1,221,622		—		20.1		—			—			20.1
Share-based compensation		—		—		6.0		—			—			6.0
Foreign currency translation		—		—		—		—			12.3			12.3
Change in unrealized loss, net of tax of ($2.7)		—		—		—		—			19.2			19.2
Change in minimum pension & postretirement liability, net of tax of $0.0		—		—		—		—			2.5			2.5
Balance as of March 31, 2019		140,675,332	$	1.4	$	2,351.7	$	(297.3	)	$	(369.0	)	$	1,686.8

	Senior Preferred Stock				Junior Preferred Stock				Common Stock				Additional Paid In		Accumulated			Accumulated Other Comprehensive			Total Stockholders			Non-controlling			Total
	Shares		$		Shares		$		Shares		$		Capital		Deficit			Loss			Equity			Interest			Equity
Balance as of December    31, 2017, as adjusted*		16,802,144	$	184.8		58,244,308	$	0.6		65,285,962	$	0.7	$	1,565.4	$	(267.3	)	$	(311.0	)	$	1,173.2		$	37.8		$	1,211.0
Net loss		—		—		—		—		—		—		—		0.6			—			0.6			(0.5	)		0.1
Issuance of common    stock upon exercise    of options		—		—		—		—		12,157		—		—		—			—			—			—			—
Issuance of common    stock upon vesting    of restricted stock units		—		—		—		—		76,190		—		—		—			—			—			—			—
Senior preferred dividends    declared		—		5.3		—		—		—		—		—		(5.3	)		—			—			—			—
Share-based compensation		—		—		—		—		—		—		2.9		—			—			2.9			—			2.9
Foreign currency translation		—		—		—		—		—		—		—		—			(16.4	)		(16.4	)		(0.2	)		(16.6	)
Change in unrealized    loss, net of tax of ($0.8)		—		—		—		—		—		—		—		—			(12.6	)		(12.6	)		—			(12.6	)
Change in minimum    pension & postretirement    liability, net of tax of $0.0		—		—		—		—		—		—		—		—			2.9			2.9			—			2.9
Balance as of March 31,    2018, as adjusted*		16,802,144	$	190.1		58,244,308	$	0.6		65,374,309	$	0.7	$	1,568.3	$	(272.0	)	$	(337.1	)	$	1,150.6		$	37.1		$	1,187.7

*Please refer to Note 2 for a summary of adjustments.

See accompanying notes to condensed consolidated financial statements.

7

Ceridian HCM Holding Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, dollars in millions)

	Three Months Ended March 31,
	2019			2018
				*As Adjusted
Net income	$	11.2		$	0.1
Loss from discontinued operations		—			2.1
Adjustments to reconcile net income to net cash used in operating activities:
Deferred income tax benefit		(1.9	)		(0.2	)
Depreciation and amortization		14.4			13.9
Amortization of debt issuance costs and debt discount		0.3			1.0
Net periodic pension and postretirement cost		1.3			0.6
Non-cash share-based compensation		6.0			2.7
Other		0.5			(0.2	)
Changes in operating assets and liabilities excluding effects of acquisitions and    divestitures:
Trade and other receivables		(3.8	)		(1.3	)
Prepaid expenses and other current assets		(7.0	)		(13.3	)
Accounts payable and other accrued expenses		(5.8	)		(2.0	)
Deferred revenue		(0.2	)		3.3
Employee compensation and benefits		(16.9	)		(17.0	)
Accrued interest		3.4			(13.1	)
Accrued taxes		(8.1	)		6.3
Other assets and liabilities		(2.2	)		(5.2	)
Net cash used in operating activities - continuing operations		(8.8	)		(22.3	)
Net cash used in operating activities - discontinued operations		—			(1.1	)
Net cash used in operating activities		(8.8	)		(23.4	)
Cash Flows from Investing Activities
Purchase of customer trust funds marketable securities		(143.3	)		(520.6	)
Proceeds from sale and maturity of customer trust funds marketable securities		49.8			175.4
Expenditures for property, plant, and equipment		(4.0	)		(2.9	)
Expenditures for software and technology		(9.9	)		(7.4	)
Acquisition costs, net of cash acquired		(10.2	)		—
Net cash used in investing activities		(117.6	)		(355.5	)
Cash Flows from Financing Activities
Increase in customer trust funds obligations, net		1,916.1			230.4
Proceeds from issuance of common stock upon exercise of stock options		20.1			—
Repayment of long-term debt obligations		(1.7	)		(0.3	)
Net cash provided by financing activities		1,934.5			230.1
Effect of exchange rate changes on cash, restricted cash, and equivalents		3.9			(4.5	)
Net increase (decrease) in cash, restricted cash, and equivalents		1,812.0			(153.3	)
Elimination of cash from discontinued operations		—			1.0
Cash, restricted cash, and equivalents at beginning of period		1,106.3			2,411.8
Cash, restricted cash, and equivalents at end of period	$	2,918.3		$	2,259.5
Reconciliation of cash, restricted cash, and equivalents to the condensed consolidated    balance sheets
Cash and equivalents	$	206.3		$	57.8
Restricted cash and equivalents included in customer trust funds		2,712.0			2,201.7
Total cash, restricted cash, and equivalents	$	2,918.3		$	2,259.5

*Please refer to Note 2 for a summary of adjustments.

See accompanying notes to condensed consolidated financial statements.

8

Ceridian HCM Holding Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited, dollars in millions, except share and per share data)

1. Organization

Ceridian HCM Holding Inc. and its subsidiaries (also referred to in this report as “Ceridian,” “we,” “our,” and “us”) 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. Our operations are primarily located in the United States and Canada.

On March 22, 2019, we completed a secondary offering, in which certain of our stockholders (the “Selling Stockholders”) sold 13,000,000 shares of common stock, in an underwritten public offering at $50.50 per share.  The Selling Stockholders granted the underwriters a 30-day option to purchase an additional 1,950,000 shares of common stock at the offering price, which was partially exercised on April 3, 2019 for 1,222,142 shares.  A total of 14,222,142 shares of common stock were sold by the Selling Stockholders, with all proceeds going to the Selling Stockholders.  We incurred expenses of $0.9 during the three months ended March 31, 2019, related to the secondary offering within selling, general and administrative expense. 

2. Summary of Significant Accounting Policies

Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which replaced all existing revenue guidance created by Accounting Standards Codification (“ASC”) Topic 605, including prescriptive industry-specific guidance, and created ASC Topic 606 for revenue and ASC Subtopic 340-40 for incremental costs of obtaining a contract with customers. This standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We have adopted ASU No. 2014-09 as of January 1, 2019, using the full retrospective method for adoption. Please refer to the tables below for the retrospective impacts of the adoption of this guidance.  Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, as detailed below.

The adoption of the new standard resulted in changes to the classification and timing of our revenue recognition. Specifically, revenue classified as professional services and other revenue was increased, and revenue classified as recurring services revenue was reduced under the new standard, compared to ASC Topic 605. Adoption of the new standard also resulted in changes to the timing of our revenue recognition compared to ASC Topic 605 because professional services and other revenue is generally recognized earlier in the contract period than recurring services revenue. In compliance with the new standard, a contract asset is reflected on the consolidated balance sheets when revenue recognized for professional service performance obligations exceed the billings and is amortized over the contract period, which is generally three years. We also have changed the timing of certain selling, general, and administrative expenses, as the new standard required capitalizing and amortizing certain selling expenses, such as commissions and bonuses paid to the sales force. These sales expenses are now amortized over the period of benefit, which we have determined to be five years.

In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. This standard requires balance sheet recognition for both finance leases and operating leases. In July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvement,” which allowed an additional (and optional) transition method to adopt the new lease requirements.  We have adopted ASU No. 2016-02 and ASU No. 2018-11 as of January 1, 2019, by recording a cumulative-effect adjustment to the opening balance of accumulated deficit on this date.  Please refer to Note 14, “Leases,” for additional discussion of the impacts of adoption of this guidance.  

9

In November 2016, the FASB issued ASU No. 2016-18, “Restricted Cash,” which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash. We have adopted this guidance as of January 1, 2019 on a retrospective basis for all periods presented. Accordingly, the condensed consolidated statement of cash flows has been revised to include restricted cash and restricted cash equivalents held to satisfy customer trust funds obligations, as a component of cash, cash equivalents, restricted cash and restricted cash equivalents. Please refer to the tables below for the retrospective impacts of the adoption of this guidance.

In March 2017, the FASB issued ASU No. 2017-07, “Compensation—Retirement Benefits,” which aims to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost.  The amendments in this update require that an employer (a) report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period, and (b) report the other components of net benefit cost in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  We have adopted this guidance as of January 1, 2019, on a retrospective basis for all periods presented.  Please refer to the tables below for the retrospective impacts of the adoption of this guidance.  

In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income,” in response to a narrow-scope financial reporting issue that arose as a consequence of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amendment in this update allows entities to reclassify from accumulated other comprehensive income to retained earnings, the impact of the reduced federal statutory tax rate for corporations included in the Tax Act. We have adopted this guidance as of January 1, 2019, resulting in an increase in accumulated other comprehensive loss of $27.1, and a decrease in accumulated deficit for the same amount on our consolidated balance sheets.  As of January 1, 2019, we have changed our policy for releasing income tax effects from accumulated other comprehensive loss to comply with this guidance, which is considered a change in accounting principle.    

We have adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASC Topic 606, ASU No. 2017-07, and ASU No. 2016-18.  Selected condensed consolidated financial statement line items, which reflect the adoption of the new ASUs, are as follows:

	December 31, 2018
Condensed Consolidated Balance Sheet	As previously reported		ASC Topic 606 Adjustments			As adjusted
ASSETS
Trade and other receivables, net	$	69.9	$	(6.0	)	$	63.9
Prepaid expenses and other current assets		42.3		6.6			48.9
Other assets		1.6		92.8			94.4
LIABILITIES
Deferred revenue	$	17.2	$	6.0		$	23.2
Other liabilities		42.0		3.9			45.9

	Three Months Ended March 31, 2018
Condensed Consolidated Statement of Operations	As previously reported			ASC Topic 606 Adjustments			ASU 2017-07 Adjustments			As adjusted
Revenue:
Recurring services	$	167.0		$	(6.1	)	$	—		$	160.9
Professional services and other		20.2			7.7			—			27.9
Total revenue	$	187.2		$	1.6		$	—		$	188.8
Selling, general, and administrative expense		56.8			(1.3	)		(0.6	)		54.9
Operating profit		24.5			2.9			0.6			28.0
Other income, net		(2.8	)		—			0.6			(2.2	)
Income tax expense		5.6			0.2			—			5.8
Net (loss) income attributable to Ceridian	$	(2.1	)	$	2.7		$	—		$	0.6
Net loss per share attributable to Ceridian, basic and diluted	$	(0.11	)	$	0.04		$	—		$	(0.07	)

10

	Three Months Ended March 31, 2018
Condensed Consolidated Statement of Cash Flows	As previously reported			ASC Topic 606 Adjustments			ASU 2016-18 Adjustments			As adjusted
Net (loss) income	$	(2.6	)	$	2.7		$	—		$	0.1
Adjustments to reconcile net (loss) income to net cash used in    operating activities:
Deferred income tax benefit		(0.4	)		0.2			—			(0.2	)
Other		0.4			(0.6	)		—			(0.2	)
Changes in operating assets and liabilities excluding effects of    acquisitions and divestitures:
Trade and other receivables		(0.2	)		(1.1	)		—			(1.3	)
Prepaid expenses and other current assets		(11.4	)		(1.9	)		—			(13.3	)
Deferred revenue		2.1			1.2			—			3.3
Accrued taxes		5.9			0.4			—			6.3
Other assets and liabilities		(4.3	)		(0.9	)					(5.2	)
Net cash used in operating activities- continuing operations		(22.3	)		—			—			(22.3	)
Cash Flows from Investing Activities
Net change in restricted cash and other restricted assets held    to satisfy customer trust funds obligations		114.8			—			(114.8	)		—
Net cash used in investing activities		(240.7	)		—			(114.8	)		(355.5	)
Effect of Exchange Rate Changes on Cash, Restricted Cash, and    Equivalents		(3.4	)		—			(1.1	)		(4.5	)
Net decrease in cash, restricted cash, and equivalents		(37.4	)		—			(115.9	)		(153.3	)
Elimination of cash from discontinued operations		1.0			—			—			1.0
Cash, restricted cash, and equivalents at beginning of period		94.2			—			2,317.6			2,411.8
Cash, restricted cash, and equivalents at end of period	$	57.8		$	—		$	2,201.7		$	2,259.5

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 2018 Form 10-K. The following notes should be read in conjunction with these policies and other disclosures in our 2018 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 loss, and cash flows from all periods presented. Interim results are not necessarily indicative of results for a full year.

Internally Developed Software Costs

In accordance with ASC Topic 350, we capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and our management has authorized further funding for the project, which it deems probable of completion. Capitalized software costs include only: (1) external direct costs of materials and services consumed in developing or obtaining the software; (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the project; and (3) interest costs incurred while developing the software. Capitalization of these costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We do not include general and administrative costs and overhead costs in capitalizable costs. We charge research and development costs and other software maintenance costs related to software development to earnings as incurred.

11

Revenue Recognition

The core principle of ASC Topic 606 is that revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. In accordance with ASC Topic 606, we perform the following steps to determine revenue to be recognized:

1)    Identify the contract(s) with a customer;

2)    Identify the performance obligations in the contract;

3)    Determine the transaction price;

4)    Allocate the transaction price to the performance obligations in the contract; and

5)    Recognize revenue when (or as) we satisfy a performance obligation.

The significant majority of our two major revenue sources (recurring and professional services and other) are derived from contracts with customers. Recurring revenues are primarily related to our cloud subscription performance obligations. Professional services and other revenues are primarily related to professional services for our cloud customers (including implementation services to activate new accounts, as well as post-go live professional services typically billed on a time and materials basis) and, to a much lesser extent, fees for other non-recurring services, including sales of time clocks and certain client reimbursable out-of-pocket expenses. Fees charged to cloud subscription performance obligations are generally priced either on a per-employee-per-month (“PEPM”) basis for a given month or on a per-employee-per-process basis for a given process, both based on usage; and fees charged for professional services are typically priced on a fixed fee basis for activating new accounts and on a time and materials basis for post go-live professional services.  

Our recurring cloud subscription performance obligations are generally priced based on the number of active customer employees, as of the signing of the contract, at the contract PEPM rate over the initial contract term. Our professional services are generally based on a fixed fee charged to our customers for activating new accounts and on a time and materials basis for post go-live professional services. There is typically no variable consideration related to our recurring cloud subscriptions or our activation services, nor do they include a significant financing component, non-cash consideration, or consideration payable to a customer. Our recurring cloud subscriptions are typically billed one month in advance while our professional services are billed over the implementation period for activation of new accounts and as work is performed for post go-live professional services.

Our cloud services arrangements include multiple performance obligations, and transaction price allocations are based on the stand-alone selling price ("SSP") for each performance obligation. Our contract renewal rates serve as an observable input to establish SSP for our recurring cloud subscription performance obligations. The SSP for professional services performance obligations is estimated based on market conditions and observable inputs, including rates charged by third parties to perform implementation services.

For our performance obligations, the consideration allocated to cloud subscription revenues is recognized as recurring revenues, typically commencing with the date the customer processes their first live payroll using the solution (referred to as the "go-live" date). The consideration allocated to professional services to activate a new account is recognized as professional services revenues based on the proportion of total work performed, using reasonably dependable estimates (in relation to progression through the implementation phase), by solution.

Deferred Costs

Deferred costs primarily consist of deferred sales commissions. Sales commissions paid based on the annual contract value of a signed customer contract are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid based on the annual contract value are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be five years.

Deferred costs included within Other assets on our condensed consolidated balance sheets were $86.1 and $83.5 as of March 31, 2019 and December 31, 2018, respectively. Amortization expense for the deferred costs was $7.7 and $6.1 for the three months ended March 31, 2019 and 2018, respectively.

12

Recently Issued Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans,” which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.  This update removes disclosures that are no longer considered cost beneficial, adds disclosures identified as relevant, and clarifies certain specific requirements of disclosures to improve the effectiveness of disclosures in the notes to financial statements. The amendments in this update are effective for public business entities for fiscal years ending after December 15, 2020.  Early adoption is permitted.  The amendments in this update should be applied on a retrospective basis to all periods presented.  We are currently evaluating the impact of the adoption of this standard.

3. Discontinued Operations

Distribution of LifeWorks Business

On March 1, 2016, we entered into a strategic joint venture with WorkAngel Technology Limited in which we contributed our existing LifeWorks employee assistance program business to WorkAngel Organisation Limited, an English limited company. On January 20, 2017, WorkAngel Organisation Limited changed its name to LifeWorks Corporation Ltd (“LifeWorks”). We had a controlling interest in LifeWorks, including certain preferential distribution rights; therefore, LifeWorks was consolidated within our financial statements, and the other joint venture ownership interest component was presented as a noncontrolling interest.During the three months ended March 31, 2018, there was loss attributable to the noncontrolling interest of $0.5.

In the second quarter of 2018, contemporaneously with our initial public offering (“IPO”) and concurrent private placement, we distributed our controlling financial interest in LifeWorks to our stockholders of record prior to the IPO on a pro rata basis in accordance with their pro rata interests in us (the “LifeWorks Disposition”). At this time, the LifeWorks Disposition represented a strategic shift in our overall business and had a significant impact on the financial statement results. Therefore, the LifeWorks business has been presented as discontinued operations in the condensed consolidated financial statements and accompanying notes for all periods presented.

The amounts in the table below reflect the operating results of LifeWorks reported as discontinued operations, as well as supplemental disclosures of the discontinued operations:

	Three Months Ended March 31, 2018
Net revenues	$	21.7
Loss from operations before income taxes		(0.9	)
Income tax expense		(1.2	)
Loss from discontinued operations, net of income taxes		(2.1	)
Depreciation and amortization		1.0
Capital expenditures	$	—

4. Fair Value Measurements

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

As of March 31, 2019, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	Total		Level 1		Level 2			Level 3
Assets
Available for sale customer trust funds assets	$	1,847.7	$	—	$	1,847.7	(a)	$	—
Total assets measured at fair value	$	1,847.7	$	—	$	1,847.7		$	—

13

As of December 31, 2018, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	Total		Level 1		Level 2			Level 3
Assets
Available for sale customer trust funds assets	$	1,719.6	$	—	$	1,719.6	(a)	$	—
Total assets measured at fair value	$	1,719.6	$	—	$	1,719.6		$	—

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

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

During the three months ended March 31, 2019, and the year ended December 31, 2018, we did not re-measure any financial assets or liabilities at fair value on a nonrecurring basis.

5. Customer Trust Funds

Investment income from invested customer trust funds is a component of our compensation for providing services under agreements with our customers. Investment income from invested customer trust funds included in revenue was $24.3 and $17.6 for the three months ended March 31, 2019, and 2018, respectively.Investment income includes interest income, realized gains and losses from sales of customer trust funds’ investments, and unrealized credit losses determined to be other-than-temporary.

The amortized cost of customer trust funds as of March 31, 2019, and December 31, 2018, is the original cost of assets acquired. The amortized cost and fair values of investments of customer trust funds available for sale as of March 31, 2019, and December 31, 2018, are as follows:

Investments of Customer Trust Funds at March 31, 2019

	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Money market securities, investments carried at cost and    other cash equivalents	$	2,701.2	$	—	$	—		$	2,701.2
Available for sale investments:
U.S. government and agency securities		598.2		1.1		(5.1	)		594.2
Canadian and provincial government securities		396.4		6.8		(0.3	)		402.9
Corporate debt securities		551.4		4.8		(1.1	)		555.1
Asset-backed securities		257.0		0.7		(1.1	)		256.6
Mortgage-backed securities		24.3		0.1		(0.1	)		24.3
Other securities		14.7		—		(0.1	)		14.6
Total available for sale investments		1,842.0		13.5		(7.8	)		1,847.7
Invested customer trust funds		4,543.2	$	13.5	$	(7.8	)		4,548.9
Trust receivables		10.8							10.8
Total customer trust funds	$	4,554.0						$	4,559.7

14

Investments of Customer Trust Funds at December 31, 2018

	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Money market securities, investments carried at cost and    other cash equivalents	$	872.3	$	—	$	—		$	872.3
Available for sale investments:
U.S. government and agency securities		573.4		0.2		(11.4	)		562.2
Canadian and provincial government securities		392.5		3.4		(1.4	)		394.5
Corporate debt securities		499.5		0.5		(4.7	)		495.3
Asset-backed securities		247.1		0.2		(2.7	)		244.6
Mortgage-backed securities		8.5		—		(0.2	)		8.3
Other securities		14.8		—		(0.1	)		14.7
Total available for sale investments		1,735.8		4.3		(20.5	)		1,719.6
Invested customer trust funds		2,608.1	$	4.3	$	(20.5	)		2,591.9
Trust receivables		11.6							11.6
Total customer trust funds	$	2,619.7						$	2,603.5

The following represents the gross unrealized losses and the related fair value of the investments of customer trust funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019.

	Less than 12 months					12 months or more					Total
	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
U.S. government and agency securities	$	(0.1	)	$	24.7	$	(5.0	)	$	384.6	$	(5.1	)	$	409.3
Canadian and provincial government securities		—			—		(0.3	)		98.7		(0.3	)		98.7
Corporate debt securities	(a)				16.4		(1.1	)		169.3		(1.1	)		185.7
Asset-backed securities	(a)				5.0		(1.1	)		156.7		(1.1	)		161.7
Mortgage-backed securities	(a)				4.0		(0.1	)		7.4		(0.1	)		11.4
Other securities		—			—		(0.1	)		10.3		(0.1	)		10.3
Total available for sale investments	$	(0.1	)	$	50.1	$	(7.7	)	$	827.0	$	(7.8	)	$	877.1

(a) These investments have been in an unrealized loss position; however, the amount of unrealized loss is less than $0.05.

Management does not believe that any individual unrealized loss as of March 31, 2019, represents an other-than-temporary impairment. 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 March 31, 2019, 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.

	March 31, 2019
	Cost		Fair Value
Due in one year or less	$	3,161.8	$	3,160.9
Due in one to three years		545.1		545.3
Due in three to five years		601.1		608.0
Due after five years		235.2		234.7
Invested customer trust funds	$	4,543.2	$	4,548.9

15

6. Goodwill and Intangible Assets

Goodwill

Goodwill and changes therein were as follows for the three months ended March 31, 2019, and the year ended December 31, 2018:

Balance at December 31, 2017	$	1,961.0
Translation		(33.6	)
Balance at December 31, 2018		1,927.4
Asset acquisition		9.0
Translation		8.5
Balance at March 31, 2019	$	1,944.9

Intangible Assets

Other intangible assets consisted of the following as of March 31, 2019:

	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
Customer lists and relationships	$	206.8	$	(195.7	)	$	11.1	5-15
Trade name		173.7		(1.9	)		171.8		—
Technology		154.1		(152.7	)		1.4	3-4
Total other intangible assets	$	534.6	$	(350.3	)	$	184.3

We perform an impairment assessment of our trade name intangible assets as of October 1 of each year. 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 and to determine whether an impairment exists.  If it is determined that an impairment has occurred, a non-cash expense would be recognized during the period in which the decision was made to make the fundamental shift.  

Other intangible assets consisted of the following as of December 31, 2018:

	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
Customer lists and relationships	$	205.4	$	(190.2	)	$	15.2	5-15
Trade name		173.5		(1.9	)		171.6		—
Technology		152.2		(151.5	)		0.7	3-4
Total other intangible assets	$	531.1	$	(343.6	)	$	187.5

Amortization expense related to definite-lived intangible assets was $4.7 and $4.7 for the three months ended March 31, 2019, and 2018, respectively.

16

7. Debt

Overview

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

	March 31,		December 31,
	2019		2018
Term Debt, interest rate of 5.5% and 5.8% as of March 31, 2019 and December    31, 2018, respectively	$	676.6	$	678.3
Revolving Credit Facility ($300.0 available capacity less amounts reserved for    letters of credit, which were $2.7 and $2.7 as of March 31, 2019 and December    31, 2018, respectively)		—		—
Canada Line of Credit (CDN $7.0 available capacity as of March 31, 2019 and    December 31, 2018; USD $5.2 as of March 31, 2019 and USD $5.1 as of December    31, 2018)		—		—
Total debt		676.6		678.3
Less unamortized discount on Term Debt		1.6		1.7
Less unamortized debt issuance costs on Senior Notes and Term Debt		6.1		6.3
Less current portion of long-term debt		6.8		6.8
Long-term debt, less current portion	$	662.1	$	663.5

Senior Secured Credit Facility

On April 30, 2018, Ceridian completed the refinancing of its debt by entering into a new credit agreement. Pursuant to the terms of the new credit agreement, Ceridian became borrower of (i) a $680.0 term loan debt facility (the “2018 Term Debt”) and (ii) a $300.0 revolving credit facility (the “2018 Revolving Credit Facility”) (the 2018 Term Debt and the 2018 Revolving Credit Facility are together referred to as the “2018 Senior Secured Credit Facility”). The 2018 Senior Secured Credit Facility is secured by all assets of Ceridian. The 2018 Term Debt has a maturity date of April 30, 2025, and the 2018 Revolving Credit Facility has a maturity date of April 30, 2023. The 2018 Term Debt was subject to an interest rate of LIBOR plus 3.25%.  As a result of a ratings upgrade on March 26, 2019, of our senior secured credit facilities by Moody’s Investors Service, from B3 to B2, the Company’s floating rate term debt interest rate is reduced from LIBOR plus 3.25% to LIBOR plus 3.00%, so long as the rating is maintained.Accrued interest related to the 2018 Senior Secured Credit Facility was $3.5 and $0.1 as of March 31, 2019 and December 31, 2018, respectively, and is included within Other accrued expenses in our condensed consolidated balance sheets.

Future Payments and Maturities of Debt

The future principal payments and maturities of our debt are as follows:

Years Ending December 31,	Amount
2019	$	5.1
2020		6.8
2021		6.8
2022		6.8
2023		6.8
Thereafter		644.3
	$	676.6

Fair Value of Debt

Our debt does not trade in active markets. 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 our debt was estimated to be $674.9 and $649.5 as of March 31, 2019 and December 31, 2018, respectively.

17

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 March 31,
Net Periodic Pension Cost	2019			2018
Interest cost	$	4.5		$	4.1
Actuarial loss amortization		3.2			3.6
Less: Expected return on plan assets		(5.9	)		(6.5	)
Net periodic pension cost	$	1.8		$	1.2

	Three Months Ended March 31,
Net Periodic Postretirement Benefit	2019			2018
Service benefit	$	—		$	—
Interest cost		0.1			0.1
Actuarial gain amortization		(0.6	)		(0.6	)
Prior service credit amortization		—			(0.1	)
Net periodic postretirement benefit gain	$	(0.5	)	$	(0.6	)

9. Share-Based Compensation

Prior to November 1, 2013, Ceridian employees participated in a share-based compensation plan of the former ultimate parent of Ceridian, the 2007 Stock Incentive Plan (“2007 SIP”).  Effective November 1, 2013, although most participants who held stock options under the 2007 SIP converted their options to a newly created option plan, the 2013 Ceridian HCM Holding Inc. Stock Incentive Plan, as amended (“2013 SIP”), a small number of participants maintained their stock options in the 2007 SIP. Concurrent with the IPO and legal reorganization, all outstanding stock options under the 2007 SIP were converted into options to purchase common stock of Ceridian. As of March 31, 2019, there were 2,500 stock options outstanding under the 2007 SIP.

Stock options awarded under the 2013 SIP vest either annually on a pro rata basis over a 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 options must be exercised generally within 90 days after termination, or these awards will be forfeited. The stock option awards have a 10-year contractual term and have an exercise price that is not less than the fair market value of the underlying stock on the date of grant. As of March 31, 2019, there were 8,104,518 stock options and restricted stock units outstanding under the 2013 SIP. We do not intend to grant any additional awards under the 2007 SIP or the 2013 SIP.

On April 24, 2018, in connection with the IPO, the Board of Directors approved the Ceridian HCM Holding Inc. 2018 Equity Incentive Plan (“2018 EIP”), which authorizes the issuance of up to 13,500,000 shares of common stock to eligible participants through equity awards. (the “Share Reserve”). The Share Reserve may 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 data of increase or (ii) such number of shares of our common stock determined by the Board of Directors.  On March 31, 2019, the Share Reserve was increased by three percent of the number of shares of common stock outstanding on January 31, 2019, or 4,196,193 shares.

Equity awards under the 2018 EIP vest annually on a pro rata basis, generally over a four-year period. In addition, upon termination of service, all vested awards must be exercised within 90 days after termination, or these awards will be forfeited. The equity awards have a 10-year contractual term and have an exercise price that is not less than the fair market value of the underlying stock on the date of the grant. As of March 31, 2019, there were 9,359,755 stock options and restricted stock units outstanding and 8,336,438 shares available for future grants of equity awards under the 2018 EIP.

18

On November 9, 2018, the Compensation Committee of the Board of Directors approved the Ceridian HCM Holding Inc. Global Employee Stock Purchase Plan (the “GESPP”), which authorizes the issuance of up to 2,500,000 shares of common stock to eligible participants through purchases via payroll deductions at a discount to the fair market value of our common stock.  The GESPP has a 10-year contractual term, and purchases will commence in the second quarter of 2019, subject to approval by the Company’s stockholders at our May 1, 2019 annual meeting of stockholders.

Total share-based compensation expense was $6.0 and $2.7 for three months ended March 31, 2019, and 2018, respectively.

Performance-Based Stock Options

Performance-based option activity under the 2007 SIP and the 2013 SIP for the period 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, 2018		366,377		$	13.50			3.1	$	7.7
Granted		—			—			—		—
Exercised		(43,849	)		(13.64	)		—		—
Forfeited or expired		—			—			—		—
Performance-based options outstanding at March 31, 2019		322,528		$	13.48			2.9	$	12.2
Performance-based options exercisable at March 31, 2019		322,528		$	13.48			2.9	$	12.2

The performance criteria for all outstanding performance-based stock options was met on June 7, 2018, resulting in the vesting of all outstanding performance-based stock options on this date. As of March 31, 2019, there was no share-based compensation expense related to unvested performance-based stock options not yet recognized.

Term-Based Stock Options

Term-based option activity, including stock options under the 2007 SIP, the 2013 SIP and the 2018 EIP, for the period 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, 2018		13,549,769		$	19.28			7.5	$	206.8
Granted		4,112,295			49.66			—		—
Exercised		(1,186,362	)		(16.69	)		—		—
Forfeited or expired		(45,530	)		(21.22	)		—		—
Term-based options outstanding at March 31, 2019		16,430,172		$	26.83			8.1	$	402.1
Term-based options exercisable at March 31, 2019		4,960,532		$	16.84			5.6	$	170.9

As of March 31, 2019, there was $107.7 of share-based compensation expense related to unvested term based awards not yet recognized, which is expected to be recognized over a weighted average period of 2.3 years.

19

Restricted Stock Units

Restricted stock units (“RSUs”) activity, including RSUs under the 2013 SIP and the 2018 EIP, for the period was as follows:

	Shares
RSUs outstanding at December 31, 2018		664,073
Granted		50,000
Shares issued upon vesting of RSUs		—
Forfeited or canceled		—
RSUs outstanding at March 31, 2019		714,073
RSUs releasable at March 31, 2019		250,000

During the three months ended March 31, 2019, 125,000 RSUs vested. As of March 31, 2019, there were 464,073 unvested RSUs outstanding and 250,000 vested RSUs outstanding. RSUs generally vest annually over a three- or four-year period. As of March 31, 2019, there was $11.2 of share-based compensation expense related to unvested RSUs not yet recognized, which is expected to be recognized over a weighted average period of 2.4 years.

10. Revenue

Our Solutions

We currently categorize our solutions into two categories, Cloud and Bureau.

• Cloud revenue is generated from solutions that are delivered via two cloud offerings, Dayforce and Powerpay. The Dayforce offering is differentiated from our market competition as being a single application with continuous calculation that offers a comprehensive range of functionality, including global HR, payroll, benefits, workforce management, and talent management on web and native iOS and Android platforms. Dayforce revenue is primarily generated from monthly recurring fees charged on a per-employee, per-month (“PEPM”) basis, generally one-month in advance of service. Also included within Dayforce revenue are implementation, staging, and other professional services revenue; revenues from the sale, rental, and maintenance of time clocks for Dayforce customers; and billable travel expenses associated with professional services for Dayforce customers. The Powerpay offering is our solution designed primarily for small market Canadian customers. The typical Powerpay customer has fewer than 20 employees, and the majority of the revenue is generated from recurring fees charged on a per-employee, per-process basis. Typical processes include the customer’s payroll runs, year-end tax packages, and delivery of customers’ remittance advices or checks. In addition to the direct revenue earned from the Dayforce and Powerpay offerings, Cloud revenue also includes investment income generated from holding Cloud customer funds in trust before funds are remitted to taxing authorities, Cloud customer employees, or other third parties; and revenue from the sale of third party services.

• Bureau revenue is generated primarily from solutions delivered via a service-bureau model. These solutions are delivered via three primary service lines: payroll, payroll-related tax filing services, and outsourced human resource solutions. Revenue from payroll services is generated from recurring fees charged on a per-process basis. Typical processes include the customer’s payroll runs, year-end tax packages, and delivery of customers’ remittance advices or checks. In addition to customers who use our payroll services, certain customers use our tax filing services on a stand-alone basis. Our outsourced human resource solutions are tailored to meet the needs of individual customers, and entail our contracting to perform many of the duties of a customer’s human resources department, including payroll processing, time and labor management, performance management, and recruiting. We also perform individual services for customers, such as check printing, wage attachment and disbursement, and Affordable Care Act (“ACA”) management. Additional items included in Bureau revenue are fees for custom professional services to Bureau customers; investment income generated from holding Bureau customer funds in trust before funds are remitted to taxing authorities, Bureau customer employees, or other third parties; consulting services related to Bureau offerings; and revenue from the sale of third party services to Bureau customers.

20

Disaggregation of Revenue

Revenue by solution and category is as follows:

	Three Months Ended March 31,
	2019		2018
Cloud recurring services revenue	$	124.4	$	99.9
Cloud professional services revenue		30.2		27.0
Total Cloud revenue		154.6		126.9
Bureau recurring services revenue		48.4		61.0
Bureau professional services revenue		0.7		0.9
Total Bureau revenue		49.1		61.9
Total revenue	$	203.7	$	188.8

Cloud revenue by offering is as follows:

	Three Months Ended March 31,
	2019		2018
Dayforce	$	132.8	$	104.1
Powerpay		21.8		22.8
Total Cloud	$	154.6	$	126.9

Contract Balances

The Company records a contract asset when revenue recognized for professional service performance obligations exceed the billings. Contract assets were $38.2 and $40.0 as of March 31, 2019, and December 31, 2018, 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 billings or payments received in advance of revenue recognition. The changes in deferred revenue were as follows:

	Three Months Ended March 31,
	2019			2018
Deferred revenue, beginning of period	$	23.2		$	16.5
New billings		63.6			44.9
Revenue recognized		(63.8	)		(41.7	)
Deferred revenue, end of period	$	23.0		$	19.7

Transaction Price for Remaining Performance Obligations

In accordance with ASC Topic 606, the following represents the aggregate amount of transaction price allocated to the remaining performance obligations that are unsatisfied as of the end of the reporting period. As of March 31, 2019, approximately $785.2 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.

21

11. Supplementary Data to Statements of Operations

Other expense, net for the three months ended March 31, 2019, consisted of foreign currency translation expense of $0.3 and net periodic benefit expense, excluding service cost of $1.3. Other income, net for the three months ended March 31, 2018, consisted of foreign currency translation income of $2.8 and net periodic benefit expense, excluding service cost of $0.6. For the three months ended March 31, 2018, the foreign currency translation is primarily related to remeasurement gains and losses resulting from intercompany receivables or payables of a U.S. subsidiary denominated in Canadian dollars. This intercompany payable was repaid in the second quarter of 2018.

12. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows:

	Foreign Currency Translation Adjustment			Unrealized Gain (Loss) from Invested Customer Trust Funds			Pension Liability Adjustment			Total
Balance as of December 31, 2018	$	(207.5	)	$	(18.3	)	$	(150.1	)	$	(375.9	)
Other comprehensive income (loss) before income taxes    and reclassifications		12.3			21.9			(0.1	)		34.1
Income tax expense		—			(2.7	)		—			(2.7	)
Reclassifications to earnings		—			—			2.6			2.6
Other comprehensive income		12.3			19.2			2.5			34.0
Cumulative-effect adjustment related to the adoption    of ASU 2018-02 (Please refer to Note 2)		—			0.4			(27.5	)		(27.1	)
Balance as of March 31, 2019	$	(195.2	)	$	1.3		$	(175.1	)	$	(369.0	)

13. 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 as adjusted for the expected benefits of utilizing net operating loss carryforwards. 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, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies, as well as current tax laws. As of March 31, 2019, and December 31, 2018, we continue to record a full valuation allowance against our domestic deferred tax assets that are not offset by the reversal of deferred tax liabilities. We evaluate the likelihood of recovering our deferred taxes on a quarterly basis, and in the future, if it is determined that we no longer have a requirement to record a valuation allowance against all or a portion of our deferred tax assets, the release of the valuation allowance would have a positive impact on our income tax provision.

We recorded income tax expense of $5.7 during the three months ended March 31, 2019, consisting primarily of $3.9 of base erosion anti-abuse tax (“BEAT”) in the U.S., and $1.6 of income tax expense from foreign operation.

The total amount of unrecognized tax benefits as of March 31, 2019, and December 31, 2018, were $1.5, including $0.2 of accrued interest, and $1.3, including $0.2 of accrued interest, respectively. Of the total amount of unrecognized tax benefits as of March 31, 2019, $1.5 represents the amount that, if recognized, would favorably impact our effective income tax rate. It is reasonable to expect that the amount of unrecognized tax benefits will change in the next twelve months; however, we do not expect the change to have a significant impact on our results of operations or financial condition.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions. With a 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 2014.

22

14. Leases

Our leases primarily consist of office space.  Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.  For leases beginning 2019 and later, we account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs).

Most leases include options to renew, and the lease renewal is at our sole discretion.  Therefore, the depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise.  Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

We rent or sublease certain real estate to third parties.  Our sublease portfolio mainly consists of operating leases for space within our office facilities.  

Supplemental balance sheet information related to leases were as follows:

Lease Type	Balance Sheet Classification	March 31, 2019
ASSETS
Operating lease assets	Trade and other receivables, net	$	1.9
Operating lease assets	Prepaid expenses and other current assets		1.6
Operating lease assets	Right of use lease asset		39.9
Total lease assets		$	43.4
LIABILITIES
Current
Operating lease liabilities	Short-term lease liabilities	$	13.9
Noncurrent
Operating lease liabilities	Long-term lease liabilities		32.7
Total lease liabilities		$	46.6

The components of lease expense were as follows:

	Three MonthsEnded March 31,
Lease Cost	2019
Operating lease cost	$	4.0
Sublease income		(1.2	)
Net lease cost	$	2.8

Maturities of lease liabilities were as follows:

Years Ending December 31,	Operating Leases
2019	$	11.9
2020		14.3
2021		9.6
2022		9.1
2023		7.3
Thereafter		6.7
Total lease payments (a)	$	58.9
Less: Interest		6.7
Present value of lease liabilities	$	52.2

(a) Maturities of lease liabilities have not been reduced by minimum sublease rentals of $11.8 due in the future under noncancellable subleases. 

23

Weighted average remaining lease term and weighted average discount rate were as follows:

	March 31, 2019
Weighted average remaining lease term (in years)
Operating leases		5.2
Weighted average discount rate
Operating leases		5.03	%

We had operating cash outflows related to operating leases of $3.8 for the three months ended March 31, 2019. This represents cash paid for amounts included in the measurement of lease liabilities.

15. 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 that 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.

16. Related Party Transactions

Management Agreements

Prior to our IPO, Ceridian was party to management agreements with affiliates of our Sponsors, Fidelity National Financial, Inc. (“FNF”) and THL Managers VI, LLC (“THLM”). FNF assigned its management agreement to Cannae in November 2017. Pursuant to these management agreements, Cannae and THLM each, respectively, agreed to provide us with financial advisory, strategic, and general oversight services. These management agreements provided that we pay annual management fees to each of Cannae and THLM in an amount equal to the greater of (a) $0.9, or (b) 0.5 percent of Adjusted EBITDA. Adjusted EBITDA, for purposes of the management agreements, was EBITDA as defined in the 2014 Senior Secured Credit Facility, further adjusted to exclude the payments made pursuant to the management agreements and certain stock options or other equity compensation.

We recorded a management fee expense in selling, general, and administrative expense of $0.5 for the three months ended March 31, 2018, related to these management agreements. In April 2018, the management agreements terminated upon consummation of our IPO.

24

Service and Vendor Related Agreements

Ceridian is a party to a service agreement with CompuCom Systems, Inc. (“CompuCom”), an investment portfolio company of THL Partners. Pursuant to the service agreement, CompuCom agrees to provide us with service desk and desk side support services. Pursuant to this arrangement, we made payments to CompuCom totaling $0.5 and $0.2 during the three months ended March 31, 2019, and 2018, respectively.

Other Transactions

On July 23, 2018, Ronald F. Clarke was appointed to our Board of Directors. Mr. Clarke has been the chief executive officer of FleetCor Technologies Inc. (“FleetCor Technologies”) since August 2000 and its chairman of the board of directors since March 2003. We provide services to FleetCor Technologies or one of its wholly owned affiliates through certain commercial arrangements entered into in the ordinary course of business, which include provision of Dayforce HCM services, reseller or referral arrangements whereby we resell or refer FleetCor Technologies services to its customers, and other administrative services. For these services, we have recorded revenue of $0.2 and $0.3 for the three months ended March 31, 2019 and 2018, respectively.

We provide Dayforce and related services to The Stronach Group, for which we recorded revenue of$0.1 and $0.1 for the three months ended March 31, 2019 and 2018, respectively. Alon Ossip, the brother of our chief executive officer, David Ossip, was the chief executive officer, and is currently a minority shareholder, of The Stronach Group.

We provide payroll-related tax filings services to FNF for which we recorded revenue of $0.1 and $0.1 for the three months ended March 31, 2019 and 2018, respectively.

We provide Dayforce and related services to certain investment portfolio companies of THLM and Cannae. Revenue from these portfolio companies was as follows:

	Three Months Ended March 31,
	2019		2018
American Blue Ribbon Holdings, LLC	$	0.5	$	0.5
Essex Bargain Hunt Superstores		0.1		0.1
Guaranteed Rate		0.3		—
System One Holdings LLC		—		0.2

17. Net Income (Loss) per Share

We compute net income (loss) per share of common stock using the treasury stock method.

Basic net income (loss) per share is computed by dividing net income (loss) attributable to Ceridian available to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

For the calculation of diluted net income (loss) per share, net income (loss) per share is adjusted by the effect of dilutive securities, including awards under our share-based compensation plans. Diluted net income (loss) per share is computed by dividing the resulting net income (loss) attributable to Ceridian available to common stockholders by the weighted-average number of fully diluted common shares outstanding. During the three months ended March 31, 2018, our potential dilutive shares, such as stock options, RSUs, and shares of senior and junior convertible preferred stock were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive.

25

The numerators and denominators of the basic and diluted net income (loss) per share computations are calculated as follows:

	Three Months Ended March 31,
	2019		2018
			*As Adjusted
Numerator:
Net income attributable to Ceridian	$	11.2	$	0.6
Less: Loss from discontinued operations		—		(2.1	)
Net income from continuing operations attributable to Ceridian		11.2		2.7
Less: Senior Preferred Stock dividends declared		—		5.3
Net income (loss) from continuing operations attributable to Ceridian available    to common stockholders	$	11.2	$	(2.6	)
Denominator:
Weighted-average shares outstanding - basic		140,149,271		65,314,462
Effect of dilutive equity instruments		6,892,957		—
Weighted-average shares outstanding - diluted		147,042,228		65,314,462
Net income (loss) per share from continuing operations attributable to    Ceridian - basic	$	0.08	$	(0.04	)
Net loss per share from discontinued operations - basic	$	—	$	(0.03	)
Net income (loss) per share attributable to Ceridian - basic	$	0.08	$	(0.07	)
Net income (loss) per share from continuing operations attributable to    Ceridian - diluted	$	0.08	$	(0.04	)
Net loss per share from discontinued operations - diluted	$	—	$	(0.03	)
Net income (loss) per share attributable to Ceridian - diluted	$	0.08	$	(0.07	)

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

	Three Months Ended March 31,
	2019		2018
Senior convertible preferred stock		—		16,802,144
Junior convertible preferred stock		—		58,244,308
Stock options		1,059,230		12,055,839
Restricted stock units		—		581,440

26

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.  You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and notes thereto included elsewhere in report and in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2018, in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019 (our “2018 Form 10-K”).  This discussion and analysis contains forward-looking statements, including statement 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 HR and payroll solution for the Canadian small business market. We also continue to support customers using our Bureau solutions, which we generally stopped actively selling to new customers following the acquisition of Dayforce in 2012. We invest in maintenance and necessary updates to support our Bureau customers and continue to migrate them to Dayforce.

Dayforce provides HR, payroll, benefits, workforce management, and talent management functionality. Our platform is used by organizations, regardless of industry or size, 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, exposing 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 are a founder-led organization, and our culture combines the agility and innovation of a start-up with a history of deep domain and operational expertise.

We sell Dayforce through our direct sales force on a subscription per-employee, per-month (“PEPM”) basis. Our subscriptions are typically structured with an initial fixed term of between three and five years, with evergreen renewal thereafter. Dayforce can serve customers of all sizes, ranging from 100 to over 100,000 employees. We have rapidly grown the Dayforce platform to more than 3,850 live Dayforce customers as of March 31, 2019. For the three months ended March 31, 2019, we added over 130 net new live Dayforce customers.

27

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 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. Because in our business model, PEPM subscription fees are not charged until the customer goes live, and because we incur costs in advance of receiving PEPM revenue that are not fully offset by our implementation fees, we estimate that it takes an average of 2.5 years before we are able to recover our implementation, customer acquisition, and other direct costs on a new Dayforce customer contract. As the proportion of Dayforce customers who have been live for two or more years increases, our related profitability increases. The following sets forth the number of live Dayforce customers at the end of each quarter presented:

	March 31,			December			September			June 30,			March 31,			December			September			June 30,
	2019			31, 2018			30, 2018			2018			2018			31, 2017			30, 2017			2017
Live Dayforce    customers		3,851			3,718			3,465			3,308			3,154			3,001			2,855			2,690
Dayforce customers    live for two or more    years		2,480			2,339			2,148			2,014			1,872			1,770			1,628			1,524
Proportion of    Dayforce customers    live for two or more    years		64	%		63	%		62	%		61	%		59	%		59	%		57	%		57	%

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. We incur on-going costs to manage the account, to support customers, and to sell additional functionality. These costs, however, are significantly less than the costs initially incurred to acquire and to implement the customer.

How We Assess Our Performance

In assessing our performance, we consider a variety of performance indicators in addition to revenue and net income.  Set forth below is a description of our key performance measures.

Live Dayforce Customers

We use the number of customers live on Dayforce as an indicator of future revenue and the overall performance of the business and to assess the performance of our implementation services. We had 3,851 customers live on Dayforce as of March 31, 2019, compared to 3,154 customers live on Dayforce as of March 31, 2018. Please refer to the “Our Business Model” section above for the number of live Dayforce customers at the end of the quarters presented.

Adjusted EBITDA

We believe that 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. We define Adjusted EBITDA as net income or loss before interest, taxes, depreciation, and amortization, as adjusted to exclude net income or loss from discontinued operations, sponsor management fees, non-cash charges for asset impairments, gains or losses on assets and liabilities held in a foreign currency other than the functional currency of a company subsidiary, share-based compensation expense, severance charges, restructuring consulting fees, transaction costs, and environmental reserve charges. Adjusted EBITDA margin is determined by calculating the percentage Adjusted EBITDA is of Total Revenue. Management believes that Adjusted EBITDA and Adjusted EBITDA margin are helpful in highlighting management performance trends because Adjusted EBITDA and Adjusted EBITDA margin exclude the results of decisions that are outside the normal course of our business operations. Please refer to the “Results of Operations” section below for a discussion of Adjusted EBITDA and Adjusted EBITDA margin.  

28

Results of Operations

Three Months Ended March 31, 2019 Compared With Three Months Ended March 31, 2018

	Three Months Ended						Increase /
	March 31,						(Decrease)						% of Revenue
	2019			2018			Amount			%			2019			2018
				As Adjusted (b)
	(Dollars in millions)
Revenue:
Recurring services
Cloud	$	124.4		$	99.9		$	24.5			24.5	%		61.1	%		52.9	%
Bureau		48.4			61.0			(12.6	)		(20.7	)%		23.8	%		32.3	%
Total recurring services		172.8			160.9			11.9			7.4	%		84.8	%		85.2	%
Professional services and other		30.9			27.9			3.0			10.8	%		15.2	%		14.8	%
Total revenue		203.7			188.8			14.9			7.9	%		100.0	%		100.0	%
Cost of revenue:
Recurring services
Cloud		37.2			33.1			4.1			12.4	%		18.3	%		17.5	%
Bureau		13.7			17.6			(3.9	)		(22.2	)%		6.7	%		9.3	%
Total recurring services		50.9			50.7			0.2			0.4	%		25.0	%		26.9	%
Professional services and other		35.3			32.8			2.5			7.6	%		17.3	%		17.4	%
Product development and management		15.2			13.7			1.5			10.9	%		7.5	%		7.3	%
Depreciation and amortization		8.7			8.7			—			—			4.3	%		4.6	%
Total cost of revenue		110.1			105.9			4.2			4.0	%		54.1	%		56.1	%
Gross profit		93.6			82.9			10.7			12.9	%		45.9	%		43.9	%
Selling, general, and administrative expense		66.2			54.9			11.3			20.6	%		32.5	%		29.1	%
Operating profit		27.4			28.0			(0.6	)		(2.1	)%		13.5	%		14.8	%
Other expense (income), net		1.6			(2.2	)		3.8			172.7	%		0.8	%		(1.2	)%
Interest expense, net		8.9			22.2			(13.3	)		(59.9	)%		4.4	%		11.8	%
Income from continuing operations before    income taxes		16.9			8.0			8.9			111.3	%		8.3	%		4.2	%
Income tax expense		5.7			5.8			(0.1	)		(1.7	)%		2.8	%		3.1	%
Income from continuing operations		11.2			2.2			9.0			409.1	%		5.5	%		1.2	%
Loss from discontinued operations		—			(2.1	)		2.1			100.0	%		—			(1.1	)%
Net income		11.2			0.1			11.1			11100.0	%		5.5	%		0.1	%
Net loss attributable to noncontrolling    interest		—			(0.5	)		0.5		n.m.				—			(0.3	)%
Net income attributable to Ceridian	$	11.2		$	0.6		$	10.6			1766.7	%		5.5	%		0.3	%
Adjusted EBITDA (a)	$	49.8		$	46.5		$	3.3			7.1	%		24.4	%		24.6	%
Adjusted EBITDA margin (a)		24.4	%		24.6	%		(0.2	)%		(0.7	)%

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

(b) Please refer to Note 2 of the notes to the condensed consolidated financial statements for a summary of adjustments.

n.m Not meaningful.

29

Revenue.The following table sets forth certain information regarding our revenues for the three months ended March 31, 2019, compared with the three months ended March 31, 2018.

	Three Months Ended March 31,				Percentage change in revenue as reported			Impact of changes in foreign currency (a)			Percentage change in revenue on constant currency basis (a)
	2019		2018		2019 vs. 2018						2019 vs. 2018
			As Adjusted (b)
	(Dollars in millions)
Revenue:
Cloud
Recurring services	$	124.4	$	99.9		24.5	%		(2.2	)%		26.7	%
Professional services and other		30.2		27.0		11.9	%		(0.7	)%		12.6	%
Total Cloud revenue		154.6		126.9		21.8	%		(1.9	)%		23.7	%
Bureau
Recurring services		48.4		61.0		(20.7	)%		(1.2	)%		(19.5	)%
Professional services and other		0.7		0.9		(22.2	)%		(0.0	)%		(22.2	)%
Total Bureau revenue		49.1		61.9		(20.7	)%		(1.2	)%		(19.5	)%
Total revenue	$	203.7	$	188.8		7.9	%		(1.6	)%		9.5	%

(a) We present revenue growth in a constant currency to assess how our underlying businesses performed excluding the effect of foreign currency ratefluctuations. We calculate percentage change in revenue on a constant currency basis by applying a fixed planning rate of $1.30 Canadian dollar to $1.00 U.S. dollar foreign exchange rate to revenues originally booked in Canadian dollars for all applicable periods.

(b) Please refer to Note 2 of the notes to the condensed consolidated financial statements for a summary of adjustments.

Total revenue increased $14.9 million, or 7.9%, to $203.7 million for the three months ended March 31, 2019, compared to $188.8 million for the three months ended March 31, 2018. This increase was primarily attributable to an increase in Cloud revenue of $27.7 million, or 21.8%, from $126.9 million for the three months ended March 31, 2018, to $154.6 million for the three months ended March 31, 2019. The Cloud revenue increase was driven by an increase of $24.5 million, or 24.5%, in Cloud recurring services revenue, and $3.2 million, or 11.9%, in Cloud professional services and other revenue. The increase in Cloud recurring services revenue of $24.5 million was due to $13.9 million from new customers, add-ons, and revenue uplift from migrations of Bureau customers, net of customer losses; $4.7 million from the migration of Bureau customers; and $6.0 million from increased float revenue related to Cloud recurring services revenue.

The increase in Cloud revenue of $27.7 million was partially offset by a decline in Bureau revenue of $12.8 million, or 20.7%. Of the $12.8 million decline in Bureau revenue for the three months ended March 31, 2019, approximately 63% was driven by customer attrition and approximately 37% was attributable to customer migrations to Dayforce. Excluding the impact of migrations to Dayforce, Bureau revenue declined by $8.1 million, or 13.1%.

On a constant currency basis, total revenue grew 9.5%, reflecting a 23.7% increase in Cloud revenue, partially offset by a 19.5% decline in Bureau revenue. Cloud revenue growth reflected a 26.7% increase in Cloud recurring services revenue and a 12.6% increase in Cloud professional services and other revenue.

Cloud revenue by solution. The following table presents our Cloud revenue for both recurring and professional services and other, for both our Dayforce and Powerpay solutions for the periods presented.

	Three Months Ended March 31,				Growth rate year-over-year			Growth rate on a constant currency basis
	2019		2018		2019 vs. 2018			2019 vs. 2018
			As Adjusted (a)
	(Dollars in millions)
Dayforce	$	132.8	$	104.1		27.6	%		28.6	%
PowerPay		21.8		22.8		(4.4	)%		0.5	%
Total Cloud revenue	$	154.6	$	126.9		21.8	%		23.7	%

(a) Please refer to Note 2 of the notes to the condensed consolidated financial statements for a summary of adjustments.

30

Cloud revenue was $154.6 million for the three months ended March 31, 2019, an increase of $27.7 million, or 21.8%, compared to Cloud revenue for the three months ended March 31, 2018. Dayforce revenue increased 27.6%, and Powerpay revenue declined 4.4% for thethree months ended March 31, 2019, as compared to revenues for thethree months ended March 31, 2018. On a constant currency basis, Dayforce revenue increased 28.6%, and Powerpay revenue increased 0.5% for the three months ended March 31, 2019. Powerpay revenue is recognized on a per-employee, per-process basis, and the timing of customer processing at year-end can vary from year to year.  A larger proportion of year-end processing occurred in the fourth quarter of 2018 and a smaller proportion of year-end processing occurred in the first quarter of 2019 as compared to the comparable periods in the prior year.  This pull-forward of revenue into the fourth quarter of 2018 was driven by the fact that December 31 was a Monday, and a number of customers processed their first 2019 payroll on Monday, December 31st, 2018.  We estimate that approximately $1 million in Powerpay revenue that would otherwise have been recognized in the first quarter of 2019 was recognized in the fourth quarter of 2018.  Excluding this pull-forward, Powerpay revenue on a constant currency basis would have grown by approximately 5%.Our new business sales to Dayforce and Powerpay customers comprised 83% of our increase in Cloud revenue for the three months ended March 31, 2019, and the remaining 17% consisted primarily of customer migrations to Dayforce from out Bureau solutions. As we migrate our Bureau customers to Dayforce, we typically experience a revenue increase from such customers driven by increased product density on the Dayforce platform.

Float revenue. Investment income from invested customer trust funds included in revenue was $24.3 million and $17.6 million for the three months ended March 31, 2019 and 2018, respectively. The average float balance for our customer trust funds for the three months ended March 31, 2019, was $4,075.4 million, compared to $4,072.0 million for the three months ended March 31, 2018. On a constant currency basis, the average float balance for our customer trust funds increased 1.8% for the three months ended March 31, 2019, compared to three months ended March 31, 2018.  The average yield was 2.42% during the three months ended March 31, 2019, an increase of 67 basis points compared to the average yield in the three months ended March 31, 2018. For the three months ended March 31, 2019, approximately 33% of our average float balance consisted of Canadian customer trust funds, compared to approximately 35% for the three months ended March 31, 2018.   Based on current market conditions, portfolio composition and investment practices, a 100 basis point increase in market investment rates would result in approximately $17 million of increased float revenue over the ensuing twelve month period. There are no incremental costs of revenue associated with increases or declines in float revenue.

Cost of revenue. Total cost of revenue for the three months ended March 31, 2019, was $110.1 million, an increase of $4.2 million, or 4.0%, compared to the three months ended March 31, 2018.

Recurring services cost of revenue increased by $0.2 million for the three months ended March 31, 2019, compared to the three months ended March 31, 2018, due to additional costs incurred to support the growing Dayforce customer base, particularly internationally, partially offset by reductions in Bureau costs.

The increase in cost of revenue for professional services and other of $2.5 million, or 7.6%, for the three months ended March 31, 2019, compared to the three months ended March 31, 2018, was primarily due to additional costs incurred to implement new customers and to provide post go-live professional services.

In accordance with ASC 350, we are required to capitalize certain software development costs. Please refer to Note 2, “Summary of Significant Accounting Policies,” for further discussion of our accounting policy for internally developed software costs. Costs related to software development activities that do not qualify for capitalization, such as development, quality assurance, testing of new technologies, enhancements to our existing solutions that do not result in additional functionality, and costs related to the management of our solutions are presented as product development and management expense. The increase in product development and management expense of $1.5 million for the three months ended March 31, 2019, compared to the three months ended March 31, 2018, reflected increases in Dayforce product development efforts, including the build out of our international offerings. For the three months ended March 31, 2019 and 2018, our investment in software development was $15.1 million and $12.5 million, respectively, consisting of $7.8 million and $6.4 million, of research and development expense, which is included within product development and management expense, and $7.3 million and $6.1 million in capitalized software development, respectively.

The table below presents total gross margin and solution gross margins for the periods presented:

	Three Months Ended March 31,
	2019			2018
				As Adjusted (a)
Total gross margin		45.9	%		43.9	%
Gross margin by solution:
Cloud recurring services		70.1	%		66.9	%
Bureau recurring services		71.7	%		71.1	%
Professional services and other		(14.2	)%		(17.6	)%

31

(a) Please refer to Note 2 of the notes to the condensed consolidated financial statements for a summary of adjustments.

Total gross margin is defined as total gross profit as a percentage of total revenue, 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, exclusive of any product development and management or depreciation and amortization cost allocations.

The overall 7.9% increase in revenue outpaced the 4.0% increase in cost of revenue, and gross profit increased by $10.7 million, or 12.9%, as we continued to leverage our investment in people and processes to realize economies of scale, while also expanding our service offerings internationally.

Cloud recurring services gross margin was 70.1% for the three months ended March 31, 2019, compared to 66.9% for the three months ended March 31, 2018. The increase in Cloud recurring services gross margin reflects an increase in the proportion of Dayforce customers live for more than two years, which increased from 59% as of March 31, 2018, to 64% as of March 31, 2019, and was also attributable to consistent configuration that enabled us to continue to realize economies of scale in hosting and customer support. Professional services and other gross margin was (14.2)% for the three months ended March 31, 2019, improving from (17.6)% for the three months ended March 31, 2018, reflecting an increase in profitable post go-live professional services and continued productivity improvements in implementing new customers.

Selling, general, and administrative expense. Selling, general, and administrative expense increased $11.3 million for the three months ended March 31, 2019, compared to the three months ended March 31, 2018, reflecting increases of $6.2 million in sales and marketing expense and $5.1 million in general and administrative expense.  The increase in general and administrative expense is comprised primarily of $1.9 million in share-based compensation expense, $0.9 million in costs related to the secondary offering completed in March 2019, as well as increased costs associated with being a public company.

Operating profit.Operating profit declined $0.6 million, or 2.1%, to $27.4 million for the three months ended March 31, 2019, compared to $28.0 million for the three months ended March 31, 2018, primarily due to the increase in selling, general and administrative expense.  Excluding the impact of share-based compensation expense, restructuring consulting fees, and severance charges, operating profit would have increased $3.5 million for the three months ended March 31, 2019, compared to the three months ended March 31, 2018.  

Other expense (income), net. For the three months ended March 31, 2019 we incurred $1.6 of other expense, net compared to $2.2 of other income for the three months ended March 31, 2018.  The other expense, net for the three months ended March 31, 2019, was primarily comprised of net periodic pension expense of $1.3 million. The other income, net for the three months ended March 31, 2018, was primarily related to a foreign currency remeasurement gain on an intercompany payable of a U.S. subsidiary denominated in Canadian dollars, partially offset by net periodic pension expense of $0.6 million. This intercompany payable was repaid in the second quarter of 2018.

Interest expense, net. Interest expense for the three months ended March 31, 2019, was $8.9 million, compared to $22.2 million for the three months ended March 31, 2018. This reduction is due to the extinguishment of the Senior Notes during the second quarter of 2018. As a result of a ratings upgrade on March 26, 2019, of our senior secured credit facilities by Moody’s Investors Service, from B3 to B2, the Company’s floating rate term debt interest rate is reduced from LIBOR plus 3.25% to LIBOR plus 3.00%, so long as the rating is maintained.  This 25 basis point rate reduction which will result in a savings of approximately $1.7 million over the ensuing twelve-month period. A 100 basis point increase in LIBOR rates would result in an approximately $7 million increase in our interest expense over the ensuing twelve-month period.  

Loss from discontinued operations.As a result of the LifeWorks Disposition, the financial results of the LifeWorks business have been included within discontinued operations for all periods presented. For the three months ended March 31, 2018, the loss from discontinued operations was $2.1 million, primarily related to income tax expense attributable to LifeWorks.

Net income attributable to Ceridian. Net income attributable to Ceridian was $11.2 million for the three months ended March 31, 2019, compared to $0.6 million for the three months ended March 31, 2018.

32

Adjusted EBITDA. Adjusted EBITDA increased by $3.3 million, for the three months ended March 31, 2019, compared to the three months ended March 31, 2018, and Adjusted EBITDA margin was24.4% for the three months ended March 31, 2019, consistent with the Adjusted EBITDA margin of 24.6% for the three months ended March 31, 2018.

Liquidity and Capital Resources

Our primary sources of liquidity are our existing cash and equivalents, cash provided by operating activities, borrowings under our credit facilities, and proceeds from equity offerings. As of March 31, 2019, we had cash and equivalents of $206.3 million and availability under our revolving credit facility of $300.0 million. No cash amounts were drawn on the revolving credit facility and $2.7 million in letters of credit were issued under the facility as of March 31, 2019. Our total debt was $676.6 million as of March 31, 2019. Please refer to Note 7, “Debt,” to our condensed consolidated financial statements, for further information on our debt.

Our primary liquidity needs are related to funding of general business requirements, including the payment of interest and principal on our debt, capital expenditures, pension contributions, and product development.

Our customer trust 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. In accordance with these objectives, we maintain approximately 47% of customer trust 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 approximately 53% of customer trust 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 in the trust to meet payment obligations, we also have financing arrangements and may pledge fixed income securities for short-term financing. The assets held in trust are intended for the specific purpose of satisfying client fund obligations and therefore are not freely available for our general business use.

We believe that our cash flow from operations, availability under our revolving credit facility, and available cash and equivalents will be sufficient to meet our liquidity needs for the foreseeable future. We anticipate that to the extent that we require additional liquidity, it will be funded through the issuance of equity, the incurrence of additional debt, or a combination thereof. We cannot assure you 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 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 assure you that our business will generate sufficient cash flow from operations or that future borrowings will be available from additional debt or otherwise to meet our liquidity needs. Although we have no specific current plans to do so, if we decide to pursue one or more significant acquisitions, we may incur additional debt or sell additional equity to finance such acquisitions, which would result in additional expenses or dilution.

33

Statements of Cash Flows

Changes in cash flows due to purchases of customer trust fund marketable securities and proceeds from the sale or maturity of customer trust fund marketable securities, as well as the carrying value of customer trust 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 trust funds are fully segregated from our operating cash accounts and are evaluated and tracked separately by management. Therefore, to provide meaningful information to the readers, the following discussion is regarding the net cash flows excluding restricted cash held within our customer trust funds.

	Three Months Ended March 31,
	2019			2018
				As Adjusted (a)
	(Dollars in millions)
Net cash used in operating activities - continuing operations	$	(8.8	)	$	(22.3	)
Net cash used in investing activities, excluding customer trust funds		(24.1	)		(10.3	)
Net cash provided by (used in) financing activities, excluding customer trust funds		18.4			(0.3	)
Effect of exchange rate changes on cash and equivalents		3.0			(3.5	)
Net decrease in cash and equivalents		(11.5	)		(36.4	)
Cash and equivalents at beginning of period		217.8			94.2
Cash and equivalents at end of period		206.3			57.8
Net customer trust funds restricted cash used in investing activities		(93.5	)		(345.2	)
Net customer trust funds restricted cash provided by financing activities		1,916.1			230.4
Effect of exchange rate changes on restricted cash and equivalents		0.9			(1.1	)
Net increase (decrease) in restricted cash and equivalents		1,823.5			(115.9	)
Restricted cash and equivalents included in customer trust funds at beginning of period		888.5			2,317.6
Restricted cash and equivalents included in customer trust funds at end of period		2,712.0			2,201.7
Net cash used in operating activities - discontinued operations		—			(1.1	)
Net increase (decrease) in cash, restricted cash, and equivalents		1,812.0			(153.4	)
Elimination of cash from discontinued operations		—			1.1
Cash, restricted cash, and equivalents at beginning of period		1,106.3			2,411.8
Cash, restricted cash, and equivalents at end of period	$	2,918.3		$	2,259.5

(a) Please refer to Note 2 of the notes to the condensed consolidated financial statements for a summary of adjustments.

Operating Activities

Net cash used in operating activities from continuing operations of $8.8 million during the three months ended March 31, 2019, was primarily attributable to a net reduction in cash as a result of changes in working capital of $40.6 million, partially offset by net income of $11.2 million and certain non-cash items, primarily $14.4 million of depreciation and amortization, and $6.0 million of non-cash share-based compensation expense. The net $40.6 million change in working capital included reductions of $16.9 million in liabilities for employee compensation and benefits, primarily due to payments of accrued incentive compensation; $8.1 million in liabilities for accrued taxes, primarily due to cash tax payments of $15.5 million; and $7.0 million of increases in prepaid expenses and other current assets, primarily due to annual maintenance contracts. Included within net cash flows used in operating activities for the three months ended March 31, 2019, was $6.6 million in cash interest payments on our long-term debt.

Net cash used in operating activities from continuing operations of $22.3 million during the three months ended March 31, 2018, was primarily attributable to net changes in working capital of $42.3 million, partially offset by certain non-cash items, primarily $13.9 million of depreciation and amortization, $2.7 million of share-based compensation expense, and net income from continuing operations of $2.2 million. Net changes in working capital included reductions of $17.0 million in liabilities for employee compensation and benefits, primarily due to payments of accrued incentive compensation; reductions of $13.1 million in liabilities for accrued interest primarily as a result of $34.8 million in cash interest payments on our long-term debt; and $13.3 million of increases in prepaid expenses and other current assets, primarily due to annual maintenance contracts. Included within net cash flows used in operating activities for the three months ended March 31, 2018, was $5.5 million in cash taxes and $1.9 million in pension payments.

34

Investing Activities

During the three months ended March 31, 2019, net cash used in investing activities from continuing operations, excluding customer trust fund activity, was $24.1 million, related to capital expenditures of $13.9 million and acquisition costs, net of cash acquired of $10.2 million. Our capital expenditures included $9.9 million for software and technology and $4.0 million for property and equipment.

During the three months ended March 31, 2018, net cash used in investing activities from continuing operations, excluding customer trust fund activity, was $10.3 million, related to capital expenditures. Our capital expenditures included $7.4 million for software and technology and $2.9 million for property and equipment.

Financing Activities

Net cash provided by financing activities from continuing operations, excluding the change in customer trust fund obligations, was $18.4 million during the three months ended March 31, 2019. This cash inflow is primarily attributable to proceeds from the issuance of common stock upon exercise of stock options of $20.1 million, partially offset by principal payments on our long-term debt obligations of $1.7 million.

Net cash used in financing activities from continuing operations, excluding the change in customer trust fund obligations, was $0.3 million during the three months ended March 31, 2018, related to repayment of long-term debt obligations.

Cash Flows from Discontinued Operations

During the three months ended March 31, 2018, net cash used in discontinued operations was $1.1 million. The net cash used in discontinued operations was primarily related to changes in working capital.

Off-Balance Sheet Arrangements

As of March 31, 2019, 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

Our critical accounting policy on revenue recognition has been updated as a result of the adoption of ASU No. 2016-02. For discussion of our new revenue recognition policy and recently adopted accounting pronouncements, please refer to Note 2, “Summary of Significant Accounting Policies,” to our condensed consolidated financial statements included herein.

Non-GAAP Measures

Adjusted EBITDA and Adjusted EBITDA Margin

We believe that 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 is a component of our management incentive plan and Adjusted EBITDA and Adjusted EBITDA margin are used by management to assess performance and to compare our operating performance to our competitors. We define Adjusted EBITDA as net income or loss before interest, taxes, depreciation, and amortization, as adjusted to exclude net income or loss from discontinued operations, sponsor management fees, non-cash charges for asset impairments, gains or losses on assets and liabilities held in a foreign currency other than the functional currency of a company subsidiary, share-based compensation expense, severance charges, restructuring consulting fees, transaction costs, and environmental reserve charges. Adjusted EBITDA margin is determined by calculating the percentage Adjusted EBITDA is of Total Revenue. Management believes that Adjusted EBITDA and Adjusted EBITDA margin are helpful in highlighting management performance trends because Adjusted EBITDA and Adjusted EBITDA margin exclude the results of decisions that are outside the control of operating management.  

Our presentation of Adjusted EBITDA and Adjusted EBITDA margin are intended as supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. Adjusted EBITDA and Adjusted EBITDA margin should not be considered as alternatives to operating profit (loss), net income (loss), earnings per share, or any other performance measures derived in accordance with GAAP, or as measures of operating cash flows or liquidity. Our presentation of Adjusted EBITDA and Adjusted EBITDA margin should not be construed to imply that our future results will be unaffected by these items. Adjusted EBITDA and Adjusted EBITDA margin are included in this discussion because they are key metrics used by management to assess our operating performance.

35

Adjusted EBITDA and Adjusted EBITDA margin are not defined under GAAP, are not measures of net income, operating income, or any other performance measures derived in accordance with GAAP, and are subject to important limitations. Our use of the terms Adjusted EBITDA and Adjusted EBITDA margin 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.

Adjusted EBITDA and Adjusted EBITDA margin have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations are:

• Adjusted EBITDA and Adjusted EBITDA margin do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

• Adjusted EBITDA and Adjusted EBITDA margin do not reflect changes in, or cash requirements for, our working capital needs;

• Adjusted EBITDA and Adjusted EBITDA margin do not reflect any charges for the assets being depreciated and amortized that may need to be replaced in the future;

• Adjusted EBITDA and Adjusted EBITDA margin do not reflect the impact of share-based compensation upon our results of operations;

• Adjusted EBITDA and Adjusted EBITDA margin do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt; and

• Adjusted EBITDA and Adjusted EBITDA margin do not reflect our income tax expense or the cash requirements to pay our income taxes.

In evaluating Adjusted EBITDA and Adjusted EBITDA margin, you should be aware that in the future we may incur expenses similar to those eliminated in this presentation.

The following table reconciles operating profit to Adjusted EBITDA for the periods presented:

	Three Months Ended March 31,
	2019			2018
				As Adjusted (5)
	(Dollars in millions)
Operating profit	$	27.4		$	28.0
Other (expense) income, net		(1.6	)		2.2
Depreciation and amortization		14.4			13.9
EBITDA from continuing operations (1)		40.2			44.1
Sponsorship management fees (2)		—			0.5
Intercompany foreign exchange loss (gain)		0.3			(2.8	)
Share-based compensation		6.0			2.7
Severance charges (3)		2.1			1.9
Restructuring consulting fees (4)		1.2			0.1
Adjusted EBITDA	$	49.8		$	46.5
Adjusted EBITDA margin		24.4	%		24.6	%

(1) We define EBITDA from continuing operations as net income or loss before interest, taxes, depreciation and amortization, and net income or loss from discontinued operations.

(2) Represents expenses related to our management, monitoring, consulting, transaction, and advisory fees and related expenses paid to the affiliates of our Sponsors pursuant to the management agreement with THLM and Cannae.

(3) Represents costs for severance compensation paid to employees whose positions have been eliminated, resulting primarily from the shift of business from our Bureau solutions to our Cloud solutions.

(4) 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.

(5) Please refer to Note 2 of the notes to the condensed consolidated financial statements for a summary of adjustments.

36

The following tables present a reconciliation of our reported results to our non-GAAP Adjusted EBITDA basis for all periods presented:

	Three Months Ended March 31, 2019
	As Reported		Share-based compensation		Severance charges		Other operating expenses (a)		Adjusted
	(Dollars in millions)
Cost of revenue:
Recurring services	$	50.9	$	0.4	$	0.2	$	—	$	50.3
Professional services and other		35.3		0.2		0.2		—		34.9
Product development and management		15.2		0.5		0.1		—		14.6
Depreciation and amortization		8.7		—		—		—		8.7
Total cost of revenue		110.1		1.1		0.5		—		108.5
Sales and marketing		35.2		1.0		1.0		—		33.2
General and administrative		31.0		3.9		0.6		1.2		25.3
Operating profit		27.4		6.0		2.1		1.2		36.7
Other expense, net		1.6		—		—		0.3		1.3
Depreciation and amortization		14.4		—		—		—		14.4
EBITDA from continuing operations	$	40.2	$	6.0	$	2.1	$	1.5	$	49.8

(a) Other operating expenses includes intercompany foreign exchange loss (gain) and restructuring consulting fees.

	Three Months Ended March 31, 2018
	As Reported As Adjusted (b)			Share-based compensation		Severance charges		Other operating expenses (a)			Adjusted
	(Dollars in millions)
Cost of revenue:
Recurring services	$	50.7		$	0.1	$	0.5	$	—		$	50.1
Professional services and other		32.8			0.1		0.5		—			32.2
Product development and management		13.7			0.1		0.1		—			13.5
Depreciation and amortization		8.7			—		—		—			8.7
Total cost of revenue		105.9			0.3		1.1		—			104.5
Sales and marketing		29.0			0.4		0.7		—			27.9
General and administrative		25.9			2.0		0.1		0.6			23.2
Operating profit		28.0			2.7		1.9		0.6			33.2
Other (income) expense, net		(2.2	)		—		—		(2.8	)		0.6
Depreciation and amortization		13.9			—		—		—			13.9
EBITDA from continuing operations	$	44.1		$	2.7	$	1.9	$	(2.2	)	$	46.5

(a) Other operating expenses includes sponsor management fees, intercompany foreign exchange loss (gain), and restructuring consulting fees.

(b) Please refer to Note 2 of the notes to the condensed consolidated financial statements for a summary of adjustments.

37

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. 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. 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. In connection with our U.S. and Canadian payroll and tax filing services, we collect funds for payment of payroll and taxes; temporarily hold such funds in trust 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 U.S. customer trust funds primarily in high- quality bank deposits, money market mutual funds, or collateralized short-term investments. We may also invest these funds in U.S. Treasury and agency securities, as well as highly rated asset-backed, mortgage-backed, municipal, and corporate securities. Our Canadian customer trust funds are invested in securities issued by the government and provinces of Canada, highly rated Canadian banks and corporations, asset-backed trusts, and mortgages.

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 other-than-temporary.

We do not believe that an increase or decrease in interest rates of 100 basis points would have a material effect on our operating results or financial condition. 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.

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. In 2018, we contributed $18.5 million to our pension plan. The effective discount rate used in accounting for pension and other benefit obligations in 2018 ranged from 3.70% to 3.92%. The expected rate of return on plan assets for qualified pension benefits in 2019 is 6.00%.

38

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management has evaluated, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures, as defined in Rule 13(a)-15(e) of the Exchange Act, 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 Chief Executive Officer 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 at a reasonable assurance level in ensuring 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 Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures will prevent or detect all errors and all fraud. We have not engaged an independent registered accounting firm to perform an audit of our internal control over financial reporting as of any balance sheet date or for any period reported in our financial statements. Presently, we are not an accelerated filer, as such term is defined by Rule 12b-2 of the Exchange Act, therefore; our management is not presently required to perform an annual assessment of the effectiveness of our internal control over financial reporting. We expect this requirement to apply to our Annual Report on Form 10-K for the year ending December 31, 2019, if certain triggers requiring accelerated filing deadlines are met prior to that. Our independent public registered accounting firm will first be required to attest to the effectiveness of our internal control over financial reporting for our Annual Report on Form 10-K for the first year we are no longer an “emerging growth company”. 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 control over financial reporting during the three months ended March 31, 2019, that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

39

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. Discussion of Legal Matters is incorporated by reference from Part I, Item 1, Note 15, “Commitments and Contingencies,” of this Form 10-Q and should be considered an integral part of Part II, Item 1, “Legal Proceedings”.

ITEM 1A. RISK FACTORS

There have been no material changes to our principal risks that we believe are material to our business, results of operations and financial condition, from the risk factors previously disclosed in our 2018 Form 10-K which is accessible on the SEC’s website at www.sec.gov.

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.

40

ITEM 6. EXHIBITS

(a) Exhibits

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

Exhibit No.	Description
10.1	Ceridian HCM Holding Inc. 2019 Management Incentive Plan
31.1	Certification of 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 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 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 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	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

41

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: May 1, 2019	By:	/s/ David D. Ossip
		Name:	David D. Ossip
		Title:	Chief Executive Officer
			(Principal Executive Officer)
Date: May 1, 2019	By:	/s/ Arthur Gitajn
		Name:	Arthur Gitajn
		Title:	Executive Vice President and Chief Financial Officer
			(Principal Financial Officer and
			Principal Accounting Officer)

42

EX-10.1

Exhibit 10.1

Ceridian HCM Holding Inc.

2019 Management Incentive Plan (“MIP”)

The MIP is a discretionary, incentive cash compensation plan designed to drive company results related to our key financial metrics. Participants in the MIP are active eligible employees of Ceridian HCM Holding Inc. (“Ceridian”) and its subsidiaries who play a key role in Ceridian accomplishing its objectives. The Compensation Committee of Board of Directors (“Board”) of Ceridian has approved the MIP, including the Incentive Components as set forth below. The Board will consider the achievement of the Incentive Components to determine whether a payment will be made to participants in the MIP.

Incentive Components

• Revenue (50%)

The purpose of the Revenue component is to drive total revenue growth across the business.

• Adjusted EBITDA (50%)

The purpose of the adjusted EBITDA component is to provide focus on Ceridian’s profitability.  

Any MIP payout will be determined by the Board, in its sole discretion, based upon the achievement of one or both Incentive Components at Target. The Incentive Components are calculated based on Ceridian’s operating results, adjusted for foreign currency and interest rate impacts plus other unique impacts to Ceridian as determined by the Board. Achievement levels of the Incentive Component(s) below Target may result in no MIP payout.

Weighting of Employee’s Individual MIP Target	Incentive Component	Target 2019 External Guidance (Based on the Q4 2018 Earnings Release)
		Incentive Component Result	Incentive Component Payout %
50%	REVENUE	$810M	100%
50%	ADJUSTED EBITDA	$182M	100%

Note:  All figures are in USD$ Millions.

Plan Eligibility

• The MIP applies to designated employees, as approved by management in its sole discretion, who are leveled as Management in Grades 7 and above and Professional Individual Contributors in Grades 10 and above.

• Eligible employees, including new hires and promotions/job changes, must be actively employed on or before October 1, 2019 to be eligible for MIP. Proration for MIP is based on the employee’s date of eligibility and duration of active employment in the incentive period. Employees on long term leaves are not considered actively employed.

• Employees who previously met MIP eligibility criteria and management has approved their continued participation for 2019.

• Ceridian retains the right to amend these eligibility criteria in its sole discretion.

Plan Payment Opportunity

• Ceridian offers no employee any guarantee of any expectation of receiving an incentive or any incentive payment under the MIP.

• Employees will be provided their individual MIP target, a percentage of their base salary (“Individual MIP Target”).

• Any MIP payment will be calculated based upon the employee’s base salary multiplied by the employee’s Individual MIP Target percent multiplied by the weighting for the Incentive Component (50% as above). Then multiplied by the Incentive Component Payout % based on the specific Incentive Component Result.

• An employee terminated on or prior to September 30, 2019, for any reasons (including with or without just cause or by resignation), is not eligible for any portion of the MIP for the year in which they are terminated, regardless of whether the employee may be entitled to receive compensation, severance or pay in lieu of notice of termination.  

• For the purposes of the MIP, employment is considered to terminate on the last date of active employment. In no circumstance will a period relating to pay in lieu of notice or severance be included for eligibility or pay purposes. The employee will not be entitled to recover damages or any other form of compensation in lieu of the incentive payment to which the employee may otherwise have been entitled under the MIP (unless required by local law).    

• Employees who resign their employment on or before the incentive payment date or are terminated for cause (or for gross misconduct serious as to justify summary dismissal)at any time, are not eligible for MIP of any nature.

• The MIP is discretionary and subject to change from time to time, including discontinuation, at Ceridian’s sole discretion.

• Any MIP payments do not vest to the employee nor are deemed wages until and if it is paid.

• Any MIP payments will be made as soon as administratively feasible upon approval from the Board in the calendar year following the applicable incentive period year.  

Incentive Period

January 1, 2019 through December 31, 2019.  

Entire Agreement

This document represents the entire agreement with respect to the MIP and replaces all prior agreements or representations with respect to the MIP.  Neither the employee nor Ceridian rely upon, or regard as material, any representation (oral or in writing) not expressly included in this document.

Executive Officer Target Incentive Compensation Levels in the 2019 MIP

On February 5, 2019, the target incentive compensation level for David D. Ossip, our Chair of the Board and Chief Executive Officer, is $800,000, or 114% of his current base salary.  On February 5, 2019, the target incentive compensation level for each of our other executive officers as a percentage of base salary is:  60% for Leagh E. Turner, our President; 80% for Paul D. Elliott, our Chief Operating Officer; 80% for Arthur Gitajn our Executive Vice President and Chief Financial Officer; 60% for Ozzie J. Goldschmied our Executive Vice President and Chief Technology Officer; 60% for Scott A. Kitching our Executive Vice President, General Counsel and Assistant Secretary; 60% for Lisa M. Sterling our Executive Vice President and Chief People and Culture Officer; and 60% for Erik J. Zimmer our Executive Vice President and Chief Strategy Officer.

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) [omitted];

(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: May 1, 2019

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

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Arthur Gitajn, 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) [omitted];

(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: May 1, 2019

By:	/s/ Arthur Gitajn
	Arthur Gitajn  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 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: May 1, 2019

By:	/s/ David D. Ossip
	David D. Ossip
	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 he 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 his signature below.

Date: May 1, 2019

By:	/s/ Arthur Gitajn
	Arthur Gitajn
	Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 29, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	CDAY
Entity Registrant Name	Ceridian HCM Holding Inc.
Entity Central Index Key	0001725057
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		140,840,259

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and equivalents	$ 206.3	$ 217.8
Trade and other receivables, net	68.8	63.9
Prepaids expenses and other current assets	55.3	48.9
Total current assets before customer trust funds	330.4	330.6
Customer trust funds	4,559.7	2,603.5
Total current assets	4,890.1	2,934.1
Right of use lease asset	39.9
Property, plant, and equipment, net	103.9	104.4
Goodwill	1,944.9	1,927.4
Other intangible assets, net	184.3	187.5
Other assets	96.0	94.4
Total assets	7,259.1	5,247.8
Current liabilities:
Current portion of long-term debt	6.8	6.8
Short-term lease liabilities	13.9
Accounts payable	31.8	41.5
Deferred revenue	23.0	23.2
Employee compensation and benefits	38.9	54.5
Other accrued expenses	15.3	23.9
Total current liabilities before customer trust funds obligations	129.7	149.9
Customer trust funds obligations	4,554.0	2,619.7
Total current liabilities	4,683.7	2,769.6
Long-term debt, less current portion	662.1	663.5
Employee benefit plans	151.1	153.3
Long-term lease liabilities	32.7
Other liabilities	42.7	45.9
Total liabilities	5,572.3	3,632.3
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock, $0.01 par, 500,000,000 shares authorized, 140,675,332 and 139,453,710 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively	1.4	1.4
Additional paid in capital	2,351.7	2,325.6
Accumulated deficit	(297.3)	(335.6)
Accumulated other comprehensive loss	(369.0)	(375.9)
Total stockholders’ equity	1,686.8	1,615.5
Total liabilities and equity	$ 7,259.1	$ 5,247.8

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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	140,675,332	139,453,710
Common Stock, shares outstanding	140,675,332	139,453,710

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue:
Recurring services	$ 172.8	$ 160.9
Professional services and other	30.9	27.9
Total revenue	203.7	188.8
Cost of revenue:
Recurring services	50.9	50.7
Professional services and other	35.3	32.8
Product development and management	15.2	13.7
Depreciation and amortization	8.7	8.7
Total cost of revenue	110.1	105.9
Gross profit	93.6	82.9
Selling, general, and administrative expense	66.2	54.9
Operating profit	27.4	28.0
Other expense (income), net	1.6	(2.2)
Interest expense, net	8.9	22.2
Income from continuing operations before income taxes	16.9	8.0
Income tax expense	5.7	5.8
Income from continuing operations	11.2	2.2
Loss from discontinued operations		(2.1)
Net income	11.2	0.1
Net loss attributable to noncontrolling interest		(0.5)
Net income attributable to Ceridian	$ 11.2	$ 0.6
Net income (loss) per share attributable to Ceridian:
Basic	$ 0.08	$ (0.07)
Diluted	$ 0.08	$ (0.07)
Weighted average shares outstanding:
Basic	140,149,271	65,314,462
Diluted	147,042,228	65,314,462

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)		$ 11.2	$ 0.1
Items of other comprehensive income (loss) before income taxes:
Change in foreign currency translation adjustment		12.3	(16.6)
Change in unrealized gain (loss) from invested customer trust funds		21.9	(13.4)
Change in pension liability adjustment	[1]	2.5	2.9
Other comprehensive income (loss) before income taxes		36.7	(27.1)
Income tax expense, net		2.7	0.8
Other comprehensive income (loss) after income taxes		34.0	(27.9)
Comprehensive income (loss)		45.2	(27.8)
Comprehensive loss attributable to noncontrolling interest			(0.7)
Comprehensive income (loss) attributable to Ceridian		$ 45.2	$ (27.1)

[1] The amount of the pension liability adjustment recognized in the condensed consolidated statements of operations within other expense (income), net was $2.6 and $3.0 during the three months ended March 31, 2019, and 2018, respectively.

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Expense (Income), Net [Member]
Pension liability adjustment	$ (2.6)	$ 3.0

XML

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Senior Preferred Stock [Member]	Junior Preferred Stock [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total Stockholders Equity [Member]	Non-controlling Interest [Member]
Beginning balance as adjusted at Dec. 31, 2017	$ 1,211.0	$ 184.8	$ 0.6	$ 0.7	$ 1,565.4	$ (267.3)	$ (311.0)	$ 1,173.2	$ 37.8
Balance, shares at Dec. 31, 2017		16,802,144	58,244,308	65,285,962
Net income (loss)	0.1					0.6		0.6	(0.5)
Issuance of common stock upon exercise of options, shares				12,157
Issuance of common stock upon vesting of restricted stock units, shares				76,190
Senior preferred dividends declared		$ 5.3				(5.3)
Share-based compensation	2.9				2.9			2.9
Foreign currency translation	(16.6)						(16.4)	(16.4)	(0.2)
Change in unrealized loss, net of tax	(12.6)						(12.6)	(12.6)
Change in minimum pension & postretirement liability, net of tax	2.9						2.9	2.9
Ending balance as adjusted at Mar. 31, 2018	1,187.7	$ 190.1	$ 0.6	$ 0.7	1,568.3	(272.0)	(337.1)	1,150.6	$ 37.1
Balance, shares at Mar. 31, 2018		16,802,144	58,244,308	65,374,309
Beginning balance at Dec. 31, 2018	1,615.5			$ 1.4	2,325.6	(335.6)	(375.9)	1,615.5
Balance, shares at Dec. 31, 2018				139,453,710
Cumulative-effect adjustment to accumulated deficit related to the adoption of ASU 2018-02 (Please refer to Note 2) | ASU 2018-02 [Member]	(27.1)					27.1	(27.1)
Net income (loss)	11.2					11.2		11.2
Issuance of common stock upon exercise of options					20.1			20.1
Issuance of common stock upon exercise of options, shares				1,221,622
Share-based compensation					6.0			6.0
Foreign currency translation							12.3	12.3
Change in unrealized loss, net of tax							19.2	19.2
Change in minimum pension & postretirement liability, net of tax							2.5	2.5
Ending balance at Mar. 31, 2019	$ 1,686.8			$ 1.4	$ 2,351.7	$ (297.3)	$ (369.0)	$ 1,686.8
Balance, shares at Mar. 31, 2019				140,675,332

XML

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement Of Stockholders Equity [Abstract]
Change in unrealized loss, tax	$ (2.7)	$ (0.8)
Change in minimum pension & postretirement liability, tax	$ 0.0	$ 0.0

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement Of Cash Flows [Abstract]
Net income (loss)	$ 11.2	$ 0.1
Loss from discontinued operations		2.1
Adjustments to reconcile net income to net cash used in operating activities:
Deferred income tax benefit	(1.9)	(0.2)
Depreciation and amortization	14.4	13.9
Amortization of debt issuance costs and debt discount	0.3	1.0
Net periodic pension and postretirement cost	1.3	0.6
Non-cash share-based compensation	6.0	2.7
Other	0.5	(0.2)
Changes in operating assets and liabilities excluding effects of acquisitions and divestitures:
Trade and other receivables	(3.8)	(1.3)
Prepaid expenses and other current assets	(7.0)	(13.3)
Accounts payable and other accrued expenses	(5.8)	(2.0)
Deferred revenue	(0.2)	3.3
Employee compensation and benefits	(16.9)	(17.0)
Accrued interest	3.4	(13.1)
Accrued taxes	(8.1)	6.3
Other assets and liabilities	(2.2)	(5.2)
Net cash used in operating activities - continuing operations	(8.8)	(22.3)
Net cash used in operating activities - discontinued operations		(1.1)
Net cash used in operating activities	(8.8)	(23.4)
Cash Flows from Investing Activities
Purchase of customer trust funds marketable securities	(143.3)	(520.6)
Proceeds from sale and maturity of customer trust funds marketable securities	49.8	175.4
Expenditures for property, plant, and equipment	(4.0)	(2.9)
Expenditures for software and technology	(9.9)	(7.4)
Acquisition costs, net of cash acquired	(10.2)
Net cash used in investing activities	(117.6)	(355.5)
Cash Flows from Financing Activities
Increase in customer trust funds obligations, net	1,916.1	230.4
Proceeds from issuance of common stock upon exercise of stock options	20.1
Repayment of long-term debt obligations	(1.7)	(0.3)
Net cash provided by financing activities	1,934.5	230.1
Effect of exchange rate changes on cash, restricted cash, and equivalents	3.9	(4.5)
Net increase (decrease) in cash, restricted cash, and equivalents	1,812.0	(153.3)
Elimination of cash from discontinued operations		1.0
Cash, restricted cash, and equivalents at beginning of period	1,106.3	2,411.8
Cash, restricted cash, and equivalents at end of period	2,918.3	2,259.5
Reconciliation of cash, restricted cash, and equivalents to the condensed consolidated balance sheets
Cash and equivalents	206.3	57.8
Restricted cash and equivalents included in customer trust funds	$ 2,712.0	$ 2,201.7
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List]	us-gaap:FundsHeldForClients	us-gaap:FundsHeldForClients
Cash, restricted cash, and equivalents at end of period	$ 2,918.3	$ 2,259.5

XML

Organization

3 Months Ended

Mar. 31, 2019

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,” and “us”) 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. Our operations are primarily located in the United States and Canada.

On March 22, 2019, we completed a secondary offering, in which certain of our stockholders (the “Selling Stockholders”) sold 13,000,000 shares of common stock, in an underwritten public offering at $50.50 per share.  The Selling Stockholders granted the underwriters a 30-day option to purchase an additional 1,950,000 shares of common stock at the offering price, which was partially exercised on April 3, 2019 for 1,222,142 shares.  A total of 14,222,142 shares of common stock were sold by the Selling Stockholders, with all proceeds going to the Selling Stockholders.  We incurred expenses of $0.9 during the three months ended March 31, 2019, related to the secondary offering within selling, general and administrative expense. 

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which replaced all existing revenue guidance created by Accounting Standards Codification (“ASC”) Topic 605, including prescriptive industry-specific guidance, and created ASC Topic 606 for revenue and ASC Subtopic 340-40 for incremental costs of obtaining a contract with customers. This standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We have adopted ASU No. 2014-09 as of January 1, 2019, using the full retrospective method for adoption. Please refer to the tables below for the retrospective impacts of the adoption of this guidance.  Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, as detailed below.

The adoption of the new standard resulted in changes to the classification and timing of our revenue recognition. Specifically, revenue classified as professional services and other revenue was increased, and revenue classified as recurring services revenue was reduced under the new standard, compared to ASC Topic 605. Adoption of the new standard also resulted in changes to the timing of our revenue recognition compared to ASC Topic 605 because professional services and other revenue is generally recognized earlier in the contract period than recurring services revenue. In compliance with the new standard, a contract asset is reflected on the consolidated balance sheets when revenue recognized for professional service performance obligations exceed the billings and is amortized over the contract period, which is generally three years. We also have changed the timing of certain selling, general, and administrative expenses, as the new standard required capitalizing and amortizing certain selling expenses, such as commissions and bonuses paid to the sales force. These sales expenses are now amortized over the period of benefit, which we have determined to be five years.

In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. This standard requires balance sheet recognition for both finance leases and operating leases. In July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvement,” which allowed an additional (and optional) transition method to adopt the new lease requirements.  We have adopted ASU No. 2016-02 and ASU No. 2018-11 as of January 1, 2019, by recording a cumulative-effect adjustment to the opening balance of accumulated deficit on this date.  Please refer to Note 14, “Leases,” for additional discussion of the impacts of adoption of this guidance.  

In November 2016, the FASB issued ASU No. 2016-18, “Restricted Cash,” which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash. We have adopted this guidance as of January 1, 2019 on a retrospective basis for all periods presented. Accordingly, the condensed consolidated statement of cash flows has been revised to include restricted cash and restricted cash equivalents held to satisfy customer trust funds obligations, as a component of cash, cash equivalents, restricted cash and restricted cash equivalents. Please refer to the tables below for the retrospective impacts of the adoption of this guidance.

In March 2017, the FASB issued ASU No. 2017-07, “Compensation—Retirement Benefits,” which aims to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost.  The amendments in this update require that an employer (a) report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period, and (b) report the other components of net benefit cost in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  We have adopted this guidance as of January 1, 2019, on a retrospective basis for all periods presented.  Please refer to the tables below for the retrospective impacts of the adoption of this guidance.  

In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income,” in response to a narrow-scope financial reporting issue that arose as a consequence of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amendment in this update allows entities to reclassify from accumulated other comprehensive income to retained earnings, the impact of the reduced federal statutory tax rate for corporations included in the Tax Act. We have adopted this guidance as of January 1, 2019, resulting in an increase in accumulated other comprehensive loss of $27.1, and a decrease in accumulated deficit for the same amount on our consolidated balance sheets.  As of January 1, 2019, we have changed our policy for releasing income tax effects from accumulated other comprehensive loss to comply with this guidance, which is considered a change in accounting principle.    

We have adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASC Topic 606, ASU No. 2017-07, and ASU No. 2016-18.  Selected condensed consolidated financial statement line items, which reflect the adoption of the new ASUs, are as follows:

	December 31, 2018
Condensed Consolidated Balance Sheet	As previously reported		ASC Topic 606 Adjustments			As adjusted
ASSETS
Trade and other receivables, net	$	69.9	$	(6.0	)	$	63.9
Prepaid expenses and other current assets		42.3		6.6			48.9
Other assets		1.6		92.8			94.4
LIABILITIES
Deferred revenue	$	17.2	$	6.0		$	23.2
Other liabilities		42.0		3.9			45.9

	Three Months Ended March 31, 2018
Condensed Consolidated Statement of Operations	As previously reported			ASC Topic 606 Adjustments			ASU 2017-07 Adjustments			As adjusted
Revenue:
Recurring services	$	167.0		$	(6.1	)	$	—		$	160.9
Professional services and other		20.2			7.7			—			27.9
Total revenue	$	187.2		$	1.6		$	—		$	188.8
Selling, general, and administrative expense		56.8			(1.3	)		(0.6	)		54.9
Operating profit		24.5			2.9			0.6			28.0
Other income, net		(2.8	)		—			0.6			(2.2	)
Income tax expense		5.6			0.2			—			5.8
Net (loss) income attributable to Ceridian	$	(2.1	)	$	2.7		$	—		$	0.6
Net loss per share attributable to Ceridian, basic and diluted	$	(0.11	)	$	0.04		$	—		$	(0.07	)

	Three Months Ended March 31, 2018
Condensed Consolidated Statement of Cash Flows	As previously reported			ASC Topic 606 Adjustments			ASU 2016-18 Adjustments			As adjusted
Net (loss) income	$	(2.6	)	$	2.7		$	—		$	0.1
Adjustments to reconcile net (loss) income to net cash used in    operating activities:
Deferred income tax benefit		(0.4	)		0.2			—			(0.2	)
Other		0.4			(0.6	)		—			(0.2	)
Changes in operating assets and liabilities excluding effects of    acquisitions and divestitures:
Trade and other receivables		(0.2	)		(1.1	)		—			(1.3	)
Prepaid expenses and other current assets		(11.4	)		(1.9	)		—			(13.3	)
Deferred revenue		2.1			1.2			—			3.3
Accrued taxes		5.9			0.4			—			6.3
Other assets and liabilities		(4.3	)		(0.9	)					(5.2	)
Net cash used in operating activities- continuing operations		(22.3	)		—			—			(22.3	)
Cash Flows from Investing Activities
Net change in restricted cash and other restricted assets held    to satisfy customer trust funds obligations		114.8			—			(114.8	)		—
Net cash used in investing activities		(240.7	)		—			(114.8	)		(355.5	)
Effect of Exchange Rate Changes on Cash, Restricted Cash, and    Equivalents		(3.4	)		—			(1.1	)		(4.5	)
Net decrease in cash, restricted cash, and equivalents		(37.4	)		—			(115.9	)		(153.3	)
Elimination of cash from discontinued operations		1.0			—			—			1.0
Cash, restricted cash, and equivalents at beginning of period		94.2			—			2,317.6			2,411.8
Cash, restricted cash, and equivalents at end of period	$	57.8		$	—		$	2,201.7		$	2,259.5

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 2018 Form 10-K. The following notes should be read in conjunction with these policies and other disclosures in our 2018 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 loss, and cash flows from all periods presented. Interim results are not necessarily indicative of results for a full year.

Internally Developed Software Costs

In accordance with ASC Topic 350, we capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and our management has authorized further funding for the project, which it deems probable of completion. Capitalized software costs include only: (1) external direct costs of materials and services consumed in developing or obtaining the software; (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the project; and (3) interest costs incurred while developing the software. Capitalization of these costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We do not include general and administrative costs and overhead costs in capitalizable costs. We charge research and development costs and other software maintenance costs related to software development to earnings as incurred.

Revenue Recognition

The core principle of ASC Topic 606 is that revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. In accordance with ASC Topic 606, we perform the following steps to determine revenue to be recognized:

1)    Identify the contract(s) with a customer;

2)    Identify the performance obligations in the contract;

3)    Determine the transaction price;

4)    Allocate the transaction price to the performance obligations in the contract; and

5)    Recognize revenue when (or as) we satisfy a performance obligation.

The significant majority of our two major revenue sources (recurring and professional services and other) are derived from contracts with customers. Recurring revenues are primarily related to our cloud subscription performance obligations. Professional services and other revenues are primarily related to professional services for our cloud customers (including implementation services to activate new accounts, as well as post-go live professional services typically billed on a time and materials basis) and, to a much lesser extent, fees for other non-recurring services, including sales of time clocks and certain client reimbursable out-of-pocket expenses. Fees charged to cloud subscription performance obligations are generally priced either on a per-employee-per-month (“PEPM”) basis for a given month or on a per-employee-per-process basis for a given process, both based on usage; and fees charged for professional services are typically priced on a fixed fee basis for activating new accounts and on a time and materials basis for post go-live professional services.  

Our recurring cloud subscription performance obligations are generally priced based on the number of active customer employees, as of the signing of the contract, at the contract PEPM rate over the initial contract term. Our professional services are generally based on a fixed fee charged to our customers for activating new accounts and on a time and materials basis for post go-live professional services. There is typically no variable consideration related to our recurring cloud subscriptions or our activation services, nor do they include a significant financing component, non-cash consideration, or consideration payable to a customer. Our recurring cloud subscriptions are typically billed one month in advance while our professional services are billed over the implementation period for activation of new accounts and as work is performed for post go-live professional services.

Our cloud services arrangements include multiple performance obligations, and transaction price allocations are based on the stand-alone selling price ("SSP") for each performance obligation. Our contract renewal rates serve as an observable input to establish SSP for our recurring cloud subscription performance obligations. The SSP for professional services performance obligations is estimated based on market conditions and observable inputs, including rates charged by third parties to perform implementation services.

For our performance obligations, the consideration allocated to cloud subscription revenues is recognized as recurring revenues, typically commencing with the date the customer processes their first live payroll using the solution (referred to as the "go-live" date). The consideration allocated to professional services to activate a new account is recognized as professional services revenues based on the proportion of total work performed, using reasonably dependable estimates (in relation to progression through the implementation phase), by solution.

Deferred Costs

Deferred costs primarily consist of deferred sales commissions. Sales commissions paid based on the annual contract value of a signed customer contract are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid based on the annual contract value are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be five years.

Deferred costs included within Other assets on our condensed consolidated balance sheets were $86.1 and $83.5 as of March 31, 2019 and December 31, 2018, respectively. Amortization expense for the deferred costs was $7.7 and $6.1 for the three months ended March 31, 2019 and 2018, respectively.

Recently Issued Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans,” which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.  This update removes disclosures that are no longer considered cost beneficial, adds disclosures identified as relevant, and clarifies certain specific requirements of disclosures to improve the effectiveness of disclosures in the notes to financial statements. The amendments in this update are effective for public business entities for fiscal years ending after December 15, 2020.  Early adoption is permitted.  The amendments in this update should be applied on a retrospective basis to all periods presented.  We are currently evaluating the impact of the adoption of this standard.

XML

Discontinued Operations

3 Months Ended

Mar. 31, 2019

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

3. Discontinued Operations

Distribution of LifeWorks Business

On March 1, 2016, we entered into a strategic joint venture with WorkAngel Technology Limited in which we contributed our existing LifeWorks employee assistance program business to WorkAngel Organisation Limited, an English limited company. On January 20, 2017, WorkAngel Organisation Limited changed its name to LifeWorks Corporation Ltd (“LifeWorks”). We had a controlling interest in LifeWorks, including certain preferential distribution rights; therefore, LifeWorks was consolidated within our financial statements, and the other joint venture ownership interest component was presented as a noncontrolling interest.During the three months ended March 31, 2018, there was loss attributable to the noncontrolling interest of $0.5.

In the second quarter of 2018, contemporaneously with our initial public offering (“IPO”) and concurrent private placement, we distributed our controlling financial interest in LifeWorks to our stockholders of record prior to the IPO on a pro rata basis in accordance with their pro rata interests in us (the “LifeWorks Disposition”). At this time, the LifeWorks Disposition represented a strategic shift in our overall business and had a significant impact on the financial statement results. Therefore, the LifeWorks business has been presented as discontinued operations in the condensed consolidated financial statements and accompanying notes for all periods presented.

The amounts in the table below reflect the operating results of LifeWorks reported as discontinued operations, as well as supplemental disclosures of the discontinued operations:

	Three Months Ended March 31, 2018
Net revenues	$	21.7
Loss from operations before income taxes		(0.9	)
Income tax expense		(1.2	)
Loss from discontinued operations, net of income taxes		(2.1	)
Depreciation and amortization		1.0
Capital expenditures	$	—

XML

Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

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

As of March 31, 2019, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	Total		Level 1		Level 2			Level 3
Assets
Available for sale customer trust funds assets	$	1,847.7	$	—	$	1,847.7	(a)	$	—
Total assets measured at fair value	$	1,847.7	$	—	$	1,847.7		$	—

As of December 31, 2018, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	Total		Level 1		Level 2			Level 3
Assets
Available for sale customer trust funds assets	$	1,719.6	$	—	$	1,719.6	(a)	$	—
Total assets measured at fair value	$	1,719.6	$	—	$	1,719.6		$	—

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

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

During the three months ended March 31, 2019, and the year ended December 31, 2018, we did not re-measure any financial assets or liabilities at fair value on a nonrecurring basis.

XML

Customer Trust Funds

3 Months Ended

Mar. 31, 2019

Investments Debt And Equity Securities [Abstract]

Customer Trust Funds

5. Customer Trust Funds

Investment income from invested customer trust funds is a component of our compensation for providing services under agreements with our customers. Investment income from invested customer trust funds included in revenue was $24.3 and $17.6 for the three months ended March 31, 2019, and 2018, respectively.Investment income includes interest income, realized gains and losses from sales of customer trust funds’ investments, and unrealized credit losses determined to be other-than-temporary.

The amortized cost of customer trust funds as of March 31, 2019, and December 31, 2018, is the original cost of assets acquired. The amortized cost and fair values of investments of customer trust funds available for sale as of March 31, 2019, and December 31, 2018, are as follows:

Investments of Customer Trust Funds at March 31, 2019

	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Money market securities, investments carried at cost and    other cash equivalents	$	2,701.2	$	—	$	—		$	2,701.2
Available for sale investments:
U.S. government and agency securities		598.2		1.1		(5.1	)		594.2
Canadian and provincial government securities		396.4		6.8		(0.3	)		402.9
Corporate debt securities		551.4		4.8		(1.1	)		555.1
Asset-backed securities		257.0		0.7		(1.1	)		256.6
Mortgage-backed securities		24.3		0.1		(0.1	)		24.3
Other securities		14.7		—		(0.1	)		14.6
Total available for sale investments		1,842.0		13.5		(7.8	)		1,847.7
Invested customer trust funds		4,543.2	$	13.5	$	(7.8	)		4,548.9
Trust receivables		10.8							10.8
Total customer trust funds	$	4,554.0						$	4,559.7

Investments of Customer Trust Funds at December 31, 2018

	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Money market securities, investments carried at cost and    other cash equivalents	$	872.3	$	—	$	—		$	872.3
Available for sale investments:
U.S. government and agency securities		573.4		0.2		(11.4	)		562.2
Canadian and provincial government securities		392.5		3.4		(1.4	)		394.5
Corporate debt securities		499.5		0.5		(4.7	)		495.3
Asset-backed securities		247.1		0.2		(2.7	)		244.6
Mortgage-backed securities		8.5		—		(0.2	)		8.3
Other securities		14.8		—		(0.1	)		14.7
Total available for sale investments		1,735.8		4.3		(20.5	)		1,719.6
Invested customer trust funds		2,608.1	$	4.3	$	(20.5	)		2,591.9
Trust receivables		11.6							11.6
Total customer trust funds	$	2,619.7						$	2,603.5

The following represents the gross unrealized losses and the related fair value of the investments of customer trust funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019.

	Less than 12 months					12 months or more					Total
	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
U.S. government and agency securities	$	(0.1	)	$	24.7	$	(5.0	)	$	384.6	$	(5.1	)	$	409.3
Canadian and provincial government securities		—			—		(0.3	)		98.7		(0.3	)		98.7
Corporate debt securities	(a)				16.4		(1.1	)		169.3		(1.1	)		185.7
Asset-backed securities	(a)				5.0		(1.1	)		156.7		(1.1	)		161.7
Mortgage-backed securities	(a)				4.0		(0.1	)		7.4		(0.1	)		11.4
Other securities		—			—		(0.1	)		10.3		(0.1	)		10.3
Total available for sale investments	$	(0.1	)	$	50.1	$	(7.7	)	$	827.0	$	(7.8	)	$	877.1

(a) These investments have been in an unrealized loss position; however, the amount of unrealized loss is less than $0.05.

Management does not believe that any individual unrealized loss as of March 31, 2019, represents an other-than-temporary impairment. 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 March 31, 2019, 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.

	March 31, 2019
	Cost		Fair Value
Due in one year or less	$	3,161.8	$	3,160.9
Due in one to three years		545.1		545.3
Due in three to five years		601.1		608.0
Due after five years		235.2		234.7
Invested customer trust funds	$	4,543.2	$	4,548.9

XML

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill

Goodwill and changes therein were as follows for the three months ended March 31, 2019, and the year ended December 31, 2018:

Balance at December 31, 2017	$	1,961.0
Translation		(33.6	)
Balance at December 31, 2018		1,927.4
Asset acquisition		9.0
Translation		8.5
Balance at March 31, 2019	$	1,944.9

Intangible Assets

Other intangible assets consisted of the following as of March 31, 2019:

	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
Customer lists and relationships	$	206.8	$	(195.7	)	$	11.1	5-15
Trade name		173.7		(1.9	)		171.8		—
Technology		154.1		(152.7	)		1.4	3-4
Total other intangible assets	$	534.6	$	(350.3	)	$	184.3

We perform an impairment assessment of our trade name intangible assets as of October 1 of each year. 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 and to determine whether an impairment exists.  If it is determined that an impairment has occurred, a non-cash expense would be recognized during the period in which the decision was made to make the fundamental shift.  

Other intangible assets consisted of the following as of December 31, 2018:

	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
Customer lists and relationships	$	205.4	$	(190.2	)	$	15.2	5-15
Trade name		173.5		(1.9	)		171.6		—
Technology		152.2		(151.5	)		0.7	3-4
Total other intangible assets	$	531.1	$	(343.6	)	$	187.5

Amortization expense related to definite-lived intangible assets was $4.7 and $4.7 for the three months ended March 31, 2019, and 2018, respectively.

XML

Debt

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Debt

7. Debt

Overview

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

	March 31,		December 31,
	2019		2018
Term Debt, interest rate of 5.5% and 5.8% as of March 31, 2019 and December    31, 2018, respectively	$	676.6	$	678.3
Revolving Credit Facility ($300.0 available capacity less amounts reserved for    letters of credit, which were $2.7 and $2.7 as of March 31, 2019 and December    31, 2018, respectively)		—		—
Canada Line of Credit (CDN $7.0 available capacity as of March 31, 2019 and    December 31, 2018; USD $5.2 as of March 31, 2019 and USD $5.1 as of December    31, 2018)		—		—
Total debt		676.6		678.3
Less unamortized discount on Term Debt		1.6		1.7
Less unamortized debt issuance costs on Senior Notes and Term Debt		6.1		6.3
Less current portion of long-term debt		6.8		6.8
Long-term debt, less current portion	$	662.1	$	663.5

Senior Secured Credit Facility

On April 30, 2018, Ceridian completed the refinancing of its debt by entering into a new credit agreement. Pursuant to the terms of the new credit agreement, Ceridian became borrower of (i) a $680.0 term loan debt facility (the “2018 Term Debt”) and (ii) a $300.0 revolving credit facility (the “2018 Revolving Credit Facility”) (the 2018 Term Debt and the 2018 Revolving Credit Facility are together referred to as the “2018 Senior Secured Credit Facility”). The 2018 Senior Secured Credit Facility is secured by all assets of Ceridian. The 2018 Term Debt has a maturity date of April 30, 2025, and the 2018 Revolving Credit Facility has a maturity date of April 30, 2023. The 2018 Term Debt was subject to an interest rate of LIBOR plus 3.25%.  As a result of a ratings upgrade on March 26, 2019, of our senior secured credit facilities by Moody’s Investors Service, from B3 to B2, the Company’s floating rate term debt interest rate is reduced from LIBOR plus 3.25% to LIBOR plus 3.00%, so long as the rating is maintained.Accrued interest related to the 2018 Senior Secured Credit Facility was $3.5 and $0.1 as of March 31, 2019 and December 31, 2018, respectively, and is included within Other accrued expenses in our condensed consolidated balance sheets.

Future Payments and Maturities of Debt

The future principal payments and maturities of our debt are as follows:

Years Ending December 31,	Amount
2019	$	5.1
2020		6.8
2021		6.8
2022		6.8
2023		6.8
Thereafter		644.3
	$	676.6

Fair Value of Debt

Our debt does not trade in active markets. 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 our debt was estimated to be $674.9 and $649.5 as of March 31, 2019 and December 31, 2018, respectively.

XML

Employee Benefit Plans

3 Months Ended

Mar. 31, 2019

Compensation And Retirement Disclosure [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 March 31,
Net Periodic Pension Cost	2019			2018
Interest cost	$	4.5		$	4.1
Actuarial loss amortization		3.2			3.6
Less: Expected return on plan assets		(5.9	)		(6.5	)
Net periodic pension cost	$	1.8		$	1.2

	Three Months Ended March 31,
Net Periodic Postretirement Benefit	2019			2018
Service benefit	$	—		$	—
Interest cost		0.1			0.1
Actuarial gain amortization		(0.6	)		(0.6	)
Prior service credit amortization		—			(0.1	)
Net periodic postretirement benefit gain	$	(0.5	)	$	(0.6	)

XML

Share-Based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

9. Share-Based Compensation

Prior to November 1, 2013, Ceridian employees participated in a share-based compensation plan of the former ultimate parent of Ceridian, the 2007 Stock Incentive Plan (“2007 SIP”).  Effective November 1, 2013, although most participants who held stock options under the 2007 SIP converted their options to a newly created option plan, the 2013 Ceridian HCM Holding Inc. Stock Incentive Plan, as amended (“2013 SIP”), a small number of participants maintained their stock options in the 2007 SIP. Concurrent with the IPO and legal reorganization, all outstanding stock options under the 2007 SIP were converted into options to purchase common stock of Ceridian. As of March 31, 2019, there were 2,500 stock options outstanding under the 2007 SIP.

Stock options awarded under the 2013 SIP vest either annually on a pro rata basis over a 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 options must be exercised generally within 90 days after termination, or these awards will be forfeited. The stock option awards have a 10-year contractual term and have an exercise price that is not less than the fair market value of the underlying stock on the date of grant. As of March 31, 2019, there were 8,104,518 stock options and restricted stock units outstanding under the 2013 SIP. We do not intend to grant any additional awards under the 2007 SIP or the 2013 SIP.

On April 24, 2018, in connection with the IPO, the Board of Directors approved the Ceridian HCM Holding Inc. 2018 Equity Incentive Plan (“2018 EIP”), which authorizes the issuance of up to 13,500,000 shares of common stock to eligible participants through equity awards. (the “Share Reserve”). The Share Reserve may 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 data of increase or (ii) such number of shares of our common stock determined by the Board of Directors.  On March 31, 2019, the Share Reserve was increased by three percent of the number of shares of common stock outstanding on January 31, 2019, or 4,196,193 shares.

Equity awards under the 2018 EIP vest annually on a pro rata basis, generally over a four-year period. In addition, upon termination of service, all vested awards must be exercised within 90 days after termination, or these awards will be forfeited. The equity awards have a 10-year contractual term and have an exercise price that is not less than the fair market value of the underlying stock on the date of the grant. As of March 31, 2019, there were 9,359,755 stock options and restricted stock units outstanding and 8,336,438 shares available for future grants of equity awards under the 2018 EIP.

On November 9, 2018, the Compensation Committee of the Board of Directors approved the Ceridian HCM Holding Inc. Global Employee Stock Purchase Plan (the “GESPP”), which authorizes the issuance of up to 2,500,000 shares of common stock to eligible participants through purchases via payroll deductions at a discount to the fair market value of our common stock.  The GESPP has a 10-year contractual term, and purchases will commence in the second quarter of 2019, subject to approval by the Company’s stockholders at our May 1, 2019 annual meeting of stockholders.

Total share-based compensation expense was $6.0 and $2.7 for three months ended March 31, 2019, and 2018, respectively.

Performance-Based Stock Options

Performance-based option activity under the 2007 SIP and the 2013 SIP for the period 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, 2018		366,377		$	13.50			3.1	$	7.7
Granted		—			—			—		—
Exercised		(43,849	)		(13.64	)		—		—
Forfeited or expired		—			—			—		—
Performance-based options outstanding at March 31, 2019		322,528		$	13.48			2.9	$	12.2
Performance-based options exercisable at March 31, 2019		322,528		$	13.48			2.9	$	12.2

The performance criteria for all outstanding performance-based stock options was met on June 7, 2018, resulting in the vesting of all outstanding performance-based stock options on this date. As of March 31, 2019, there was no share-based compensation expense related to unvested performance-based stock options not yet recognized.

Term-Based Stock Options

Term-based option activity, including stock options under the 2007 SIP, the 2013 SIP and the 2018 EIP, for the period 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, 2018		13,549,769		$	19.28			7.5	$	206.8
Granted		4,112,295			49.66			—		—
Exercised		(1,186,362	)		(16.69	)		—		—
Forfeited or expired		(45,530	)		(21.22	)		—		—
Term-based options outstanding at March 31, 2019		16,430,172		$	26.83			8.1	$	402.1
Term-based options exercisable at March 31, 2019		4,960,532		$	16.84			5.6	$	170.9

As of March 31, 2019, there was $107.7 of share-based compensation expense related to unvested term based awards not yet recognized, which is expected to be recognized over a weighted average period of 2.3 years.

Restricted Stock Units

Restricted stock units (“RSUs”) activity, including RSUs under the 2013 SIP and the 2018 EIP, for the period was as follows:

	Shares
RSUs outstanding at December 31, 2018		664,073
Granted		50,000
Shares issued upon vesting of RSUs		—
Forfeited or canceled		—
RSUs outstanding at March 31, 2019		714,073
RSUs releasable at March 31, 2019		250,000

During the three months ended March 31, 2019, 125,000 RSUs vested. As of March 31, 2019, there were 464,073 unvested RSUs outstanding and 250,000 vested RSUs outstanding. RSUs generally vest annually over a three- or four-year period. As of March 31, 2019, there was $11.2 of share-based compensation expense related to unvested RSUs not yet recognized, which is expected to be recognized over a weighted average period of 2.4 years.

XML

Revenue

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue

10. Revenue

Our Solutions

We currently categorize our solutions into two categories, Cloud and Bureau.

• Cloud revenue is generated from solutions that are delivered via two cloud offerings, Dayforce and Powerpay. The Dayforce offering is differentiated from our market competition as being a single application with continuous calculation that offers a comprehensive range of functionality, including global HR, payroll, benefits, workforce management, and talent management on web and native iOS and Android platforms. Dayforce revenue is primarily generated from monthly recurring fees charged on a per-employee, per-month (“PEPM”) basis, generally one-month in advance of service. Also included within Dayforce revenue are implementation, staging, and other professional services revenue; revenues from the sale, rental, and maintenance of time clocks for Dayforce customers; and billable travel expenses associated with professional services for Dayforce customers. The Powerpay offering is our solution designed primarily for small market Canadian customers. The typical Powerpay customer has fewer than 20 employees, and the majority of the revenue is generated from recurring fees charged on a per-employee, per-process basis. Typical processes include the customer’s payroll runs, year-end tax packages, and delivery of customers’ remittance advices or checks. In addition to the direct revenue earned from the Dayforce and Powerpay offerings, Cloud revenue also includes investment income generated from holding Cloud customer funds in trust before funds are remitted to taxing authorities, Cloud customer employees, or other third parties; and revenue from the sale of third party services.

• Bureau revenue is generated primarily from solutions delivered via a service-bureau model. These solutions are delivered via three primary service lines: payroll, payroll-related tax filing services, and outsourced human resource solutions. Revenue from payroll services is generated from recurring fees charged on a per-process basis. Typical processes include the customer’s payroll runs, year-end tax packages, and delivery of customers’ remittance advices or checks. In addition to customers who use our payroll services, certain customers use our tax filing services on a stand-alone basis. Our outsourced human resource solutions are tailored to meet the needs of individual customers, and entail our contracting to perform many of the duties of a customer’s human resources department, including payroll processing, time and labor management, performance management, and recruiting. We also perform individual services for customers, such as check printing, wage attachment and disbursement, and Affordable Care Act (“ACA”) management. Additional items included in Bureau revenue are fees for custom professional services to Bureau customers; investment income generated from holding Bureau customer funds in trust before funds are remitted to taxing authorities, Bureau customer employees, or other third parties; consulting services related to Bureau offerings; and revenue from the sale of third party services to Bureau customers.

Disaggregation of Revenue

Revenue by solution and category is as follows:

	Three Months Ended March 31,
	2019		2018
Cloud recurring services revenue	$	124.4	$	99.9
Cloud professional services revenue		30.2		27.0
Total Cloud revenue		154.6		126.9
Bureau recurring services revenue		48.4		61.0
Bureau professional services revenue		0.7		0.9
Total Bureau revenue		49.1		61.9
Total revenue	$	203.7	$	188.8

Cloud revenue by offering is as follows:

	Three Months Ended March 31,
	2019		2018
Dayforce	$	132.8	$	104.1
Powerpay		21.8		22.8
Total Cloud	$	154.6	$	126.9

Contract Balances

The Company records a contract asset when revenue recognized for professional service performance obligations exceed the billings. Contract assets were $38.2 and $40.0 as of March 31, 2019, and December 31, 2018, 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 billings or payments received in advance of revenue recognition. The changes in deferred revenue were as follows:

	Three Months Ended March 31,
	2019			2018
Deferred revenue, beginning of period	$	23.2		$	16.5
New billings		63.6			44.9
Revenue recognized		(63.8	)		(41.7	)
Deferred revenue, end of period	$	23.0		$	19.7

Transaction Price for Remaining Performance Obligations

In accordance with ASC Topic 606, the following represents the aggregate amount of transaction price allocated to the remaining performance obligations that are unsatisfied as of the end of the reporting period. As of March 31, 2019, approximately $785.2 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

Supplementary Data to Statements of Operations

3 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Supplementary Data to Statements of Operations

11. Supplementary Data to Statements of Operations

Other expense, net for the three months ended March 31, 2019, consisted of foreign currency translation expense of $0.3 and net periodic benefit expense, excluding service cost of $1.3. Other income, net for the three months ended March 31, 2018, consisted of foreign currency translation income of $2.8 and net periodic benefit expense, excluding service cost of $0.6. For the three months ended March 31, 2018, the foreign currency translation is primarily related to remeasurement gains and losses resulting from intercompany receivables or payables of a U.S. subsidiary denominated in Canadian dollars. This intercompany payable was repaid in the second quarter of 2018.

XML

Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Loss

12. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows:

	Foreign Currency Translation Adjustment			Unrealized Gain (Loss) from Invested Customer Trust Funds			Pension Liability Adjustment			Total
Balance as of December 31, 2018	$	(207.5	)	$	(18.3	)	$	(150.1	)	$	(375.9	)
Other comprehensive income (loss) before income taxes    and reclassifications		12.3			21.9			(0.1	)		34.1
Income tax expense		—			(2.7	)		—			(2.7	)
Reclassifications to earnings		—			—			2.6			2.6
Other comprehensive income		12.3			19.2			2.5			34.0
Cumulative-effect adjustment related to the adoption    of ASU 2018-02 (Please refer to Note 2)		—			0.4			(27.5	)		(27.1	)
Balance as of March 31, 2019	$	(195.2	)	$	1.3		$	(175.1	)	$	(369.0	)

XML

Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

13. 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 as adjusted for the expected benefits of utilizing net operating loss carryforwards. 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, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies, as well as current tax laws. As of March 31, 2019, and December 31, 2018, we continue to record a full valuation allowance against our domestic deferred tax assets that are not offset by the reversal of deferred tax liabilities. We evaluate the likelihood of recovering our deferred taxes on a quarterly basis, and in the future, if it is determined that we no longer have a requirement to record a valuation allowance against all or a portion of our deferred tax assets, the release of the valuation allowance would have a positive impact on our income tax provision.

We recorded income tax expense of $5.7 during the three months ended March 31, 2019, consisting primarily of $3.9 of base erosion anti-abuse tax (“BEAT”) in the U.S., and $1.6 of income tax expense from foreign operation.

The total amount of unrecognized tax benefits as of March 31, 2019, and December 31, 2018, were $1.5, including $0.2 of accrued interest, and $1.3, including $0.2 of accrued interest, respectively. Of the total amount of unrecognized tax benefits as of March 31, 2019, $1.5 represents the amount that, if recognized, would favorably impact our effective income tax rate. It is reasonable to expect that the amount of unrecognized tax benefits will change in the next twelve months; however, we do not expect the change to have a significant impact on our results of operations or financial condition.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions. With a 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 2014.

XML

Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

14. Leases

Our leases primarily consist of office space.  Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.  For leases beginning 2019 and later, we account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs).

Most leases include options to renew, and the lease renewal is at our sole discretion.  Therefore, the depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise.  Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

We rent or sublease certain real estate to third parties.  Our sublease portfolio mainly consists of operating leases for space within our office facilities.  

Supplemental balance sheet information related to leases were as follows:

Lease Type	Balance Sheet Classification	March 31, 2019
ASSETS
Operating lease assets	Trade and other receivables, net	$	1.9
Operating lease assets	Prepaid expenses and other current assets		1.6
Operating lease assets	Right of use lease asset		39.9
Total lease assets		$	43.4
LIABILITIES
Current
Operating lease liabilities	Short-term lease liabilities	$	13.9
Noncurrent
Operating lease liabilities	Long-term lease liabilities		32.7
Total lease liabilities		$	46.6

The components of lease expense were as follows:

	Three MonthsEnded March 31,
Lease Cost	2019
Operating lease cost	$	4.0
Sublease income		(1.2	)
Net lease cost	$	2.8

Maturities of lease liabilities were as follows:

Years Ending December 31,	Operating Leases
2019	$	11.9
2020		14.3
2021		9.6
2022		9.1
2023		7.3
Thereafter		6.7
Total lease payments (a)	$	58.9
Less: Interest		6.7
Present value of lease liabilities	$	52.2

(a) Maturities of lease liabilities have not been reduced by minimum sublease rentals of $11.8 due in the future under noncancellable subleases. 

Weighted average remaining lease term and weighted average discount rate were as follows:

	March 31, 2019
Weighted average remaining lease term (in years)
Operating leases		5.2
Weighted average discount rate
Operating leases		5.03	%

We had operating cash outflows related to operating leases of $3.8 for the three months ended March 31, 2019. This represents cash paid for amounts included in the measurement of lease liabilities.

XML

Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

15. 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 that 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

Related Party Transactions

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

16. Related Party Transactions

Management Agreements

Prior to our IPO, Ceridian was party to management agreements with affiliates of our Sponsors, Fidelity National Financial, Inc. (“FNF”) and THL Managers VI, LLC (“THLM”). FNF assigned its management agreement to Cannae in November 2017. Pursuant to these management agreements, Cannae and THLM each, respectively, agreed to provide us with financial advisory, strategic, and general oversight services. These management agreements provided that we pay annual management fees to each of Cannae and THLM in an amount equal to the greater of (a) $0.9, or (b) 0.5 percent of Adjusted EBITDA. Adjusted EBITDA, for purposes of the management agreements, was EBITDA as defined in the 2014 Senior Secured Credit Facility, further adjusted to exclude the payments made pursuant to the management agreements and certain stock options or other equity compensation.

We recorded a management fee expense in selling, general, and administrative expense of $0.5 for the three months ended March 31, 2018, related to these management agreements. In April 2018, the management agreements terminated upon consummation of our IPO.

Service and Vendor Related Agreements

Ceridian is a party to a service agreement with CompuCom Systems, Inc. (“CompuCom”), an investment portfolio company of THL Partners. Pursuant to the service agreement, CompuCom agrees to provide us with service desk and desk side support services. Pursuant to this arrangement, we made payments to CompuCom totaling $0.5 and $0.2 during the three months ended March 31, 2019, and 2018, respectively.

Other Transactions

On July 23, 2018, Ronald F. Clarke was appointed to our Board of Directors. Mr. Clarke has been the chief executive officer of FleetCor Technologies Inc. (“FleetCor Technologies”) since August 2000 and its chairman of the board of directors since March 2003. We provide services to FleetCor Technologies or one of its wholly owned affiliates through certain commercial arrangements entered into in the ordinary course of business, which include provision of Dayforce HCM services, reseller or referral arrangements whereby we resell or refer FleetCor Technologies services to its customers, and other administrative services. For these services, we have recorded revenue of $0.2 and $0.3 for the three months ended March 31, 2019 and 2018, respectively.

We provide Dayforce and related services to The Stronach Group, for which we recorded revenue of$0.1 and $0.1 for the three months ended March 31, 2019 and 2018, respectively. Alon Ossip, the brother of our chief executive officer, David Ossip, was the chief executive officer, and is currently a minority shareholder, of The Stronach Group.

We provide payroll-related tax filings services to FNF for which we recorded revenue of $0.1 and $0.1 for the three months ended March 31, 2019 and 2018, respectively.

We provide Dayforce and related services to certain investment portfolio companies of THLM and Cannae. Revenue from these portfolio companies was as follows:

	Three Months Ended March 31,
	2019		2018
American Blue Ribbon Holdings, LLC	$	0.5	$	0.5
Essex Bargain Hunt Superstores		0.1		0.1
Guaranteed Rate		0.3		—
System One Holdings LLC		—		0.2

XML

Net Income (Loss) per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Net Income (Loss) per Share

17. Net Income (Loss) per Share

We compute net income (loss) per share of common stock using the treasury stock method.

Basic net income (loss) per share is computed by dividing net income (loss) attributable to Ceridian available to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

For the calculation of diluted net income (loss) per share, net income (loss) per share is adjusted by the effect of dilutive securities, including awards under our share-based compensation plans. Diluted net income (loss) per share is computed by dividing the resulting net income (loss) attributable to Ceridian available to common stockholders by the weighted-average number of fully diluted common shares outstanding. During the three months ended March 31, 2018, our potential dilutive shares, such as stock options, RSUs, and shares of senior and junior convertible preferred stock were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive.

The numerators and denominators of the basic and diluted net income (loss) per share computations are calculated as follows:

	Three Months Ended March 31,
	2019		2018
			*As Adjusted
Numerator:
Net income attributable to Ceridian	$	11.2	$	0.6
Less: Loss from discontinued operations		—		(2.1	)
Net income from continuing operations attributable to Ceridian		11.2		2.7
Less: Senior Preferred Stock dividends declared		—		5.3
Net income (loss) from continuing operations attributable to Ceridian available    to common stockholders	$	11.2	$	(2.6	)
Denominator:
Weighted-average shares outstanding - basic		140,149,271		65,314,462
Effect of dilutive equity instruments		6,892,957		—
Weighted-average shares outstanding - diluted		147,042,228		65,314,462
Net income (loss) per share from continuing operations attributable to    Ceridian - basic	$	0.08	$	(0.04	)
Net loss per share from discontinued operations - basic	$	—	$	(0.03	)
Net income (loss) per share attributable to Ceridian - basic	$	0.08	$	(0.07	)
Net income (loss) per share from continuing operations attributable to    Ceridian - diluted	$	0.08	$	(0.04	)
Net loss per share from discontinued operations - diluted	$	—	$	(0.03	)
Net income (loss) per share attributable to Ceridian - diluted	$	0.08	$	(0.07	)

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

	Three Months Ended March 31,
	2019		2018
Senior convertible preferred stock		—		16,802,144
Junior convertible preferred stock		—		58,244,308
Stock options		1,059,230		12,055,839
Restricted stock units		—		581,440

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Recently Issued and Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which replaced all existing revenue guidance created by Accounting Standards Codification (“ASC”) Topic 605, including prescriptive industry-specific guidance, and created ASC Topic 606 for revenue and ASC Subtopic 340-40 for incremental costs of obtaining a contract with customers. This standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We have adopted ASU No. 2014-09 as of January 1, 2019, using the full retrospective method for adoption. Please refer to the tables below for the retrospective impacts of the adoption of this guidance.  Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, as detailed below.

The adoption of the new standard resulted in changes to the classification and timing of our revenue recognition. Specifically, revenue classified as professional services and other revenue was increased, and revenue classified as recurring services revenue was reduced under the new standard, compared to ASC Topic 605. Adoption of the new standard also resulted in changes to the timing of our revenue recognition compared to ASC Topic 605 because professional services and other revenue is generally recognized earlier in the contract period than recurring services revenue. In compliance with the new standard, a contract asset is reflected on the consolidated balance sheets when revenue recognized for professional service performance obligations exceed the billings and is amortized over the contract period, which is generally three years. We also have changed the timing of certain selling, general, and administrative expenses, as the new standard required capitalizing and amortizing certain selling expenses, such as commissions and bonuses paid to the sales force. These sales expenses are now amortized over the period of benefit, which we have determined to be five years.

In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. This standard requires balance sheet recognition for both finance leases and operating leases. In July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvement,” which allowed an additional (and optional) transition method to adopt the new lease requirements.  We have adopted ASU No. 2016-02 and ASU No. 2018-11 as of January 1, 2019, by recording a cumulative-effect adjustment to the opening balance of accumulated deficit on this date.  Please refer to Note 14, “Leases,” for additional discussion of the impacts of adoption of this guidance.  

In November 2016, the FASB issued ASU No. 2016-18, “Restricted Cash,” which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash. We have adopted this guidance as of January 1, 2019 on a retrospective basis for all periods presented. Accordingly, the condensed consolidated statement of cash flows has been revised to include restricted cash and restricted cash equivalents held to satisfy customer trust funds obligations, as a component of cash, cash equivalents, restricted cash and restricted cash equivalents. Please refer to the tables below for the retrospective impacts of the adoption of this guidance.

In March 2017, the FASB issued ASU No. 2017-07, “Compensation—Retirement Benefits,” which aims to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost.  The amendments in this update require that an employer (a) report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period, and (b) report the other components of net benefit cost in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  We have adopted this guidance as of January 1, 2019, on a retrospective basis for all periods presented.  Please refer to the tables below for the retrospective impacts of the adoption of this guidance.  

In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income,” in response to a narrow-scope financial reporting issue that arose as a consequence of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amendment in this update allows entities to reclassify from accumulated other comprehensive income to retained earnings, the impact of the reduced federal statutory tax rate for corporations included in the Tax Act. We have adopted this guidance as of January 1, 2019, resulting in an increase in accumulated other comprehensive loss of $27.1, and a decrease in accumulated deficit for the same amount on our consolidated balance sheets.  As of January 1, 2019, we have changed our policy for releasing income tax effects from accumulated other comprehensive loss to comply with this guidance, which is considered a change in accounting principle.    

We have adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASC Topic 606, ASU No. 2017-07, and ASU No. 2016-18.  Selected condensed consolidated financial statement line items, which reflect the adoption of the new ASUs, are as follows:

	December 31, 2018
Condensed Consolidated Balance Sheet	As previously reported		ASC Topic 606 Adjustments			As adjusted
ASSETS
Trade and other receivables, net	$	69.9	$	(6.0	)	$	63.9
Prepaid expenses and other current assets		42.3		6.6			48.9
Other assets		1.6		92.8			94.4
LIABILITIES
Deferred revenue	$	17.2	$	6.0		$	23.2
Other liabilities		42.0		3.9			45.9

	Three Months Ended March 31, 2018
Condensed Consolidated Statement of Operations	As previously reported			ASC Topic 606 Adjustments			ASU 2017-07 Adjustments			As adjusted
Revenue:
Recurring services	$	167.0		$	(6.1	)	$	—		$	160.9
Professional services and other		20.2			7.7			—			27.9
Total revenue	$	187.2		$	1.6		$	—		$	188.8
Selling, general, and administrative expense		56.8			(1.3	)		(0.6	)		54.9
Operating profit		24.5			2.9			0.6			28.0
Other income, net		(2.8	)		—			0.6			(2.2	)
Income tax expense		5.6			0.2			—			5.8
Net (loss) income attributable to Ceridian	$	(2.1	)	$	2.7		$	—		$	0.6
Net loss per share attributable to Ceridian, basic and diluted	$	(0.11	)	$	0.04		$	—		$	(0.07	)

	Three Months Ended March 31, 2018
Condensed Consolidated Statement of Cash Flows	As previously reported			ASC Topic 606 Adjustments			ASU 2016-18 Adjustments			As adjusted
Net (loss) income	$	(2.6	)	$	2.7		$	—		$	0.1
Adjustments to reconcile net (loss) income to net cash used in    operating activities:
Deferred income tax benefit		(0.4	)		0.2			—			(0.2	)
Other		0.4			(0.6	)		—			(0.2	)
Changes in operating assets and liabilities excluding effects of    acquisitions and divestitures:
Trade and other receivables		(0.2	)		(1.1	)		—			(1.3	)
Prepaid expenses and other current assets		(11.4	)		(1.9	)		—			(13.3	)
Deferred revenue		2.1			1.2			—			3.3
Accrued taxes		5.9			0.4			—			6.3
Other assets and liabilities		(4.3	)		(0.9	)					(5.2	)
Net cash used in operating activities- continuing operations		(22.3	)		—			—			(22.3	)
Cash Flows from Investing Activities
Net change in restricted cash and other restricted assets held    to satisfy customer trust funds obligations		114.8			—			(114.8	)		—
Net cash used in investing activities		(240.7	)		—			(114.8	)		(355.5	)
Effect of Exchange Rate Changes on Cash, Restricted Cash, and    Equivalents		(3.4	)		—			(1.1	)		(4.5	)
Net decrease in cash, restricted cash, and equivalents		(37.4	)		—			(115.9	)		(153.3	)
Elimination of cash from discontinued operations		1.0			—			—			1.0
Cash, restricted cash, and equivalents at beginning of period		94.2			—			2,317.6			2,411.8
Cash, restricted cash, and equivalents at end of period	$	57.8		$	—		$	2,201.7		$	2,259.5

Recently Issued Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans,” which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.  This update removes disclosures that are no longer considered cost beneficial, adds disclosures identified as relevant, and clarifies certain specific requirements of disclosures to improve the effectiveness of disclosures in the notes to financial statements. The amendments in this update are effective for public business entities for fiscal years ending after December 15, 2020.  Early adoption is permitted.  The amendments in this update should be applied on a retrospective basis to all periods presented.  We are currently evaluating the impact of the adoption of this standard.

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 2018 Form 10-K. The following notes should be read in conjunction with these policies and other disclosures in our 2018 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 loss, and cash flows from all periods presented. Interim results are not necessarily indicative of results for a full year.

Internally Developed Software Costs

Internally Developed Software Costs

In accordance with ASC Topic 350, we capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and our management has authorized further funding for the project, which it deems probable of completion. Capitalized software costs include only: (1) external direct costs of materials and services consumed in developing or obtaining the software; (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the project; and (3) interest costs incurred while developing the software. Capitalization of these costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We do not include general and administrative costs and overhead costs in capitalizable costs. We charge research and development costs and other software maintenance costs related to software development to earnings as incurred.

Revenue Recognition

Revenue Recognition

The core principle of ASC Topic 606 is that revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. In accordance with ASC Topic 606, we perform the following steps to determine revenue to be recognized:

1)    Identify the contract(s) with a customer;

2)    Identify the performance obligations in the contract;

3)    Determine the transaction price;

4)    Allocate the transaction price to the performance obligations in the contract; and

5)    Recognize revenue when (or as) we satisfy a performance obligation.

The significant majority of our two major revenue sources (recurring and professional services and other) are derived from contracts with customers. Recurring revenues are primarily related to our cloud subscription performance obligations. Professional services and other revenues are primarily related to professional services for our cloud customers (including implementation services to activate new accounts, as well as post-go live professional services typically billed on a time and materials basis) and, to a much lesser extent, fees for other non-recurring services, including sales of time clocks and certain client reimbursable out-of-pocket expenses. Fees charged to cloud subscription performance obligations are generally priced either on a per-employee-per-month (“PEPM”) basis for a given month or on a per-employee-per-process basis for a given process, both based on usage; and fees charged for professional services are typically priced on a fixed fee basis for activating new accounts and on a time and materials basis for post go-live professional services.  

Our recurring cloud subscription performance obligations are generally priced based on the number of active customer employees, as of the signing of the contract, at the contract PEPM rate over the initial contract term. Our professional services are generally based on a fixed fee charged to our customers for activating new accounts and on a time and materials basis for post go-live professional services. There is typically no variable consideration related to our recurring cloud subscriptions or our activation services, nor do they include a significant financing component, non-cash consideration, or consideration payable to a customer. Our recurring cloud subscriptions are typically billed one month in advance while our professional services are billed over the implementation period for activation of new accounts and as work is performed for post go-live professional services.

Our cloud services arrangements include multiple performance obligations, and transaction price allocations are based on the stand-alone selling price ("SSP") for each performance obligation. Our contract renewal rates serve as an observable input to establish SSP for our recurring cloud subscription performance obligations. The SSP for professional services performance obligations is estimated based on market conditions and observable inputs, including rates charged by third parties to perform implementation services.

For our performance obligations, the consideration allocated to cloud subscription revenues is recognized as recurring revenues, typically commencing with the date the customer processes their first live payroll using the solution (referred to as the "go-live" date). The consideration allocated to professional services to activate a new account is recognized as professional services revenues based on the proportion of total work performed, using reasonably dependable estimates (in relation to progression through the implementation phase), by solution.

Deferred Costs

Deferred Costs

Deferred costs primarily consist of deferred sales commissions. Sales commissions paid based on the annual contract value of a signed customer contract are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid based on the annual contract value are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be five years.

Deferred costs included within Other assets on our condensed consolidated balance sheets were $86.1 and $83.5 as of March 31, 2019 and December 31, 2018, respectively. Amortization expense for the deferred costs was $7.7 and $6.1 for the three months ended March 31, 2019 and 2018, respectively.

XML

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Impact of Adoption of ASC Topic 606, ASU 2017-07 and ASU 2016-18

We have adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASC Topic 606, ASU No. 2017-07, and ASU No. 2016-18.  Selected condensed consolidated financial statement line items, which reflect the adoption of the new ASUs, are as follows:

	December 31, 2018
Condensed Consolidated Balance Sheet	As previously reported		ASC Topic 606 Adjustments			As adjusted
ASSETS
Trade and other receivables, net	$	69.9	$	(6.0	)	$	63.9
Prepaid expenses and other current assets		42.3		6.6			48.9
Other assets		1.6		92.8			94.4
LIABILITIES
Deferred revenue	$	17.2	$	6.0		$	23.2
Other liabilities		42.0		3.9			45.9

	Three Months Ended March 31, 2018
Condensed Consolidated Statement of Operations	As previously reported			ASC Topic 606 Adjustments			ASU 2017-07 Adjustments			As adjusted
Revenue:
Recurring services	$	167.0		$	(6.1	)	$	—		$	160.9
Professional services and other		20.2			7.7			—			27.9
Total revenue	$	187.2		$	1.6		$	—		$	188.8
Selling, general, and administrative expense		56.8			(1.3	)		(0.6	)		54.9
Operating profit		24.5			2.9			0.6			28.0
Other income, net		(2.8	)		—			0.6			(2.2	)
Income tax expense		5.6			0.2			—			5.8
Net (loss) income attributable to Ceridian	$	(2.1	)	$	2.7		$	—		$	0.6
Net loss per share attributable to Ceridian, basic and diluted	$	(0.11	)	$	0.04		$	—		$	(0.07	)

	Three Months Ended March 31, 2018
Condensed Consolidated Statement of Cash Flows	As previously reported			ASC Topic 606 Adjustments			ASU 2016-18 Adjustments			As adjusted
Net (loss) income	$	(2.6	)	$	2.7		$	—		$	0.1
Adjustments to reconcile net (loss) income to net cash used in    operating activities:
Deferred income tax benefit		(0.4	)		0.2			—			(0.2	)
Other		0.4			(0.6	)		—			(0.2	)
Changes in operating assets and liabilities excluding effects of    acquisitions and divestitures:
Trade and other receivables		(0.2	)		(1.1	)		—			(1.3	)
Prepaid expenses and other current assets		(11.4	)		(1.9	)		—			(13.3	)
Deferred revenue		2.1			1.2			—			3.3
Accrued taxes		5.9			0.4			—			6.3
Other assets and liabilities		(4.3	)		(0.9	)					(5.2	)
Net cash used in operating activities- continuing operations		(22.3	)		—			—			(22.3	)
Cash Flows from Investing Activities
Net change in restricted cash and other restricted assets held    to satisfy customer trust funds obligations		114.8			—			(114.8	)		—
Net cash used in investing activities		(240.7	)		—			(114.8	)		(355.5	)
Effect of Exchange Rate Changes on Cash, Restricted Cash, and    Equivalents		(3.4	)		—			(1.1	)		(4.5	)
Net decrease in cash, restricted cash, and equivalents		(37.4	)		—			(115.9	)		(153.3	)
Elimination of cash from discontinued operations		1.0			—			—			1.0
Cash, restricted cash, and equivalents at beginning of period		94.2			—			2,317.6			2,411.8
Cash, restricted cash, and equivalents at end of period	$	57.8		$	—		$	2,201.7		$	2,259.5

XML

Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2019

LifeWorks [Member]

Schedule of Operating Results of Discontinued Operations

The amounts in the table below reflect the operating results of LifeWorks reported as discontinued operations, as well as supplemental disclosures of the discontinued operations:

	Three Months Ended March 31, 2018
Net revenues	$	21.7
Loss from operations before income taxes		(0.9	)
Income tax expense		(1.2	)
Loss from discontinued operations, net of income taxes		(2.1	)
Depreciation and amortization		1.0
Capital expenditures	$	—

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

As of March 31, 2019, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	Total		Level 1		Level 2			Level 3
Assets
Available for sale customer trust funds assets	$	1,847.7	$	—	$	1,847.7	(a)	$	—
Total assets measured at fair value	$	1,847.7	$	—	$	1,847.7		$	—

As of December 31, 2018, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	Total		Level 1		Level 2			Level 3
Assets
Available for sale customer trust funds assets	$	1,719.6	$	—	$	1,719.6	(a)	$	—
Total assets measured at fair value	$	1,719.6	$	—	$	1,719.6		$	—

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

XML

Customer Trust Funds (Tables)

3 Months Ended

Mar. 31, 2019

Investments Debt And Equity Securities [Abstract]

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

Investments of Customer Trust Funds at March 31, 2019

	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Money market securities, investments carried at cost and    other cash equivalents	$	2,701.2	$	—	$	—		$	2,701.2
Available for sale investments:
U.S. government and agency securities		598.2		1.1		(5.1	)		594.2
Canadian and provincial government securities		396.4		6.8		(0.3	)		402.9
Corporate debt securities		551.4		4.8		(1.1	)		555.1
Asset-backed securities		257.0		0.7		(1.1	)		256.6
Mortgage-backed securities		24.3		0.1		(0.1	)		24.3
Other securities		14.7		—		(0.1	)		14.6
Total available for sale investments		1,842.0		13.5		(7.8	)		1,847.7
Invested customer trust funds		4,543.2	$	13.5	$	(7.8	)		4,548.9
Trust receivables		10.8							10.8
Total customer trust funds	$	4,554.0						$	4,559.7

Investments of Customer Trust Funds at December 31, 2018

	Amortized		Gross Unrealized					Fair
	Cost		Gain		Loss			Value
Money market securities, investments carried at cost and    other cash equivalents	$	872.3	$	—	$	—		$	872.3
Available for sale investments:
U.S. government and agency securities		573.4		0.2		(11.4	)		562.2
Canadian and provincial government securities		392.5		3.4		(1.4	)		394.5
Corporate debt securities		499.5		0.5		(4.7	)		495.3
Asset-backed securities		247.1		0.2		(2.7	)		244.6
Mortgage-backed securities		8.5		—		(0.2	)		8.3
Other securities		14.8		—		(0.1	)		14.7
Total available for sale investments		1,735.8		4.3		(20.5	)		1,719.6
Invested customer trust funds		2,608.1	$	4.3	$	(20.5	)		2,591.9
Trust receivables		11.6							11.6
Total customer trust funds	$	2,619.7						$	2,603.5

Schedule of Unrealized Losses and Fair Value

The following represents the gross unrealized losses and the related fair value of the investments of customer trust funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019.

	Less than 12 months					12 months or more					Total
	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
U.S. government and agency securities	$	(0.1	)	$	24.7	$	(5.0	)	$	384.6	$	(5.1	)	$	409.3
Canadian and provincial government securities		—			—		(0.3	)		98.7		(0.3	)		98.7
Corporate debt securities	(a)				16.4		(1.1	)		169.3		(1.1	)		185.7
Asset-backed securities	(a)				5.0		(1.1	)		156.7		(1.1	)		161.7
Mortgage-backed securities	(a)				4.0		(0.1	)		7.4		(0.1	)		11.4
Other securities		—			—		(0.1	)		10.3		(0.1	)		10.3
Total available for sale investments	$	(0.1	)	$	50.1	$	(7.7	)	$	827.0	$	(7.8	)	$	877.1

(a) These investments have been in an unrealized loss position; however, the amount of unrealized loss is less than $0.05.

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 March 31, 2019, 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.

	March 31, 2019
	Cost		Fair Value
Due in one year or less	$	3,161.8	$	3,160.9
Due in one to three years		545.1		545.3
Due in three to five years		601.1		608.0
Due after five years		235.2		234.7
Invested customer trust funds	$	4,543.2	$	4,548.9

XML

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

Goodwill and changes therein were as follows for the three months ended March 31, 2019, and the year ended December 31, 2018:

Balance at December 31, 2017	$	1,961.0
Translation		(33.6	)
Balance at December 31, 2018		1,927.4
Asset acquisition		9.0
Translation		8.5
Balance at March 31, 2019	$	1,944.9

Schedule of Other Intangible Assets

Other intangible assets consisted of the following as of March 31, 2019:

	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
Customer lists and relationships	$	206.8	$	(195.7	)	$	11.1	5-15
Trade name		173.7		(1.9	)		171.8		—
Technology		154.1		(152.7	)		1.4	3-4
Total other intangible assets	$	534.6	$	(350.3	)	$	184.3

Other intangible assets consisted of the following as of December 31, 2018:

	Gross Carrying Amount		Accumulated Amortization			Net		Estimated Life Range (Years)
Customer lists and relationships	$	205.4	$	(190.2	)	$	15.2	5-15
Trade name		173.5		(1.9	)		171.6		—
Technology		152.2		(151.5	)		0.7	3-4
Total other intangible assets	$	531.1	$	(343.6	)	$	187.5

XML

Debt (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Schedule of Debt Obligations

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

	March 31,		December 31,
	2019		2018
Term Debt, interest rate of 5.5% and 5.8% as of March 31, 2019 and December    31, 2018, respectively	$	676.6	$	678.3
Revolving Credit Facility ($300.0 available capacity less amounts reserved for    letters of credit, which were $2.7 and $2.7 as of March 31, 2019 and December    31, 2018, respectively)		—		—
Canada Line of Credit (CDN $7.0 available capacity as of March 31, 2019 and    December 31, 2018; USD $5.2 as of March 31, 2019 and USD $5.1 as of December    31, 2018)		—		—
Total debt		676.6		678.3
Less unamortized discount on Term Debt		1.6		1.7
Less unamortized debt issuance costs on Senior Notes and Term Debt		6.1		6.3
Less current portion of long-term debt		6.8		6.8
Long-term debt, less current portion	$	662.1	$	663.5

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

Schedule of Future Principal Payments and Maturities of Indebtedness

The future principal payments and maturities of our debt are as follows:

Years Ending December 31,	Amount
2019	$	5.1
2020		6.8
2021		6.8
2022		6.8
2023		6.8
Thereafter		644.3
	$	676.6

XML

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2019

Compensation And Retirement Disclosure [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 March 31,
Net Periodic Pension Cost	2019			2018
Interest cost	$	4.5		$	4.1
Actuarial loss amortization		3.2			3.6
Less: Expected return on plan assets		(5.9	)		(6.5	)
Net periodic pension cost	$	1.8		$	1.2

	Three Months Ended March 31,
Net Periodic Postretirement Benefit	2019			2018
Service benefit	$	—		$	—
Interest cost		0.1			0.1
Actuarial gain amortization		(0.6	)		(0.6	)
Prior service credit amortization		—			(0.1	)
Net periodic postretirement benefit gain	$	(0.5	)	$	(0.6	)

XML

Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Performance-Based Option Activity

Performance-based option activity under the 2007 SIP and the 2013 SIP for the period 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, 2018		366,377		$	13.50			3.1	$	7.7
Granted		—			—			—		—
Exercised		(43,849	)		(13.64	)		—		—
Forfeited or expired		—			—			—		—
Performance-based options outstanding at March 31, 2019		322,528		$	13.48			2.9	$	12.2
Performance-based options exercisable at March 31, 2019		322,528		$	13.48			2.9	$	12.2

Summary of Term-Based Option Activity

Term-based option activity, including stock options under the 2007 SIP, the 2013 SIP and the 2018 EIP, for the period 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, 2018		13,549,769		$	19.28			7.5	$	206.8
Granted		4,112,295			49.66			—		—
Exercised		(1,186,362	)		(16.69	)		—		—
Forfeited or expired		(45,530	)		(21.22	)		—		—
Term-based options outstanding at March 31, 2019		16,430,172		$	26.83			8.1	$	402.1
Term-based options exercisable at March 31, 2019		4,960,532		$	16.84			5.6	$	170.9

Summary of Restricted Stock Units Activity

Restricted stock units (“RSUs”) activity, including RSUs under the 2013 SIP and the 2018 EIP, for the period was as follows:

	Shares
RSUs outstanding at December 31, 2018		664,073
Granted		50,000
Shares issued upon vesting of RSUs		—
Forfeited or canceled		—
RSUs outstanding at March 31, 2019		714,073
RSUs releasable at March 31, 2019		250,000

XML

Revenue (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Disaggregation of Revenue

Revenue by solution and category is as follows:

	Three Months Ended March 31,
	2019		2018
Cloud recurring services revenue	$	124.4	$	99.9
Cloud professional services revenue		30.2		27.0
Total Cloud revenue		154.6		126.9
Bureau recurring services revenue		48.4		61.0
Bureau professional services revenue		0.7		0.9
Total Bureau revenue		49.1		61.9
Total revenue	$	203.7	$	188.8

Schedule of Changes in Deferred Revenue

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

	Three Months Ended March 31,
	2019			2018
Deferred revenue, beginning of period	$	23.2		$	16.5
New billings		63.6			44.9
Revenue recognized		(63.8	)		(41.7	)
Deferred revenue, end of period	$	23.0		$	19.7

Cloud Revenue [Member]

Summary of Disaggregation of Revenue

Cloud revenue by offering is as follows:

	Three Months Ended March 31,
	2019		2018
Dayforce	$	132.8	$	104.1
Powerpay		21.8		22.8
Total Cloud	$	154.6	$	126.9

XML

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2019

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 Trust Funds			Pension Liability Adjustment			Total
Balance as of December 31, 2018	$	(207.5	)	$	(18.3	)	$	(150.1	)	$	(375.9	)
Other comprehensive income (loss) before income taxes    and reclassifications		12.3			21.9			(0.1	)		34.1
Income tax expense		—			(2.7	)		—			(2.7	)
Reclassifications to earnings		—			—			2.6			2.6
Other comprehensive income		12.3			19.2			2.5			34.0
Cumulative-effect adjustment related to the adoption    of ASU 2018-02 (Please refer to Note 2)		—			0.4			(27.5	)		(27.1	)
Balance as of March 31, 2019	$	(195.2	)	$	1.3		$	(175.1	)	$	(369.0	)

XML

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases were as follows:

Lease Type	Balance Sheet Classification	March 31, 2019
ASSETS
Operating lease assets	Trade and other receivables, net	$	1.9
Operating lease assets	Prepaid expenses and other current assets		1.6
Operating lease assets	Right of use lease asset		39.9
Total lease assets		$	43.4
LIABILITIES
Current
Operating lease liabilities	Short-term lease liabilities	$	13.9
Noncurrent
Operating lease liabilities	Long-term lease liabilities		32.7
Total lease liabilities		$	46.6

Components of Lease Expense

The components of lease expense were as follows:

	Three MonthsEnded March 31,
Lease Cost	2019
Operating lease cost	$	4.0
Sublease income		(1.2	)
Net lease cost	$	2.8

Maturities of Lease Liabilities

Maturities of lease liabilities were as follows:

Years Ending December 31,	Operating Leases
2019	$	11.9
2020		14.3
2021		9.6
2022		9.1
2023		7.3
Thereafter		6.7
Total lease payments (a)	$	58.9
Less: Interest		6.7
Present value of lease liabilities	$	52.2

(a) Maturities of lease liabilities have not been reduced by minimum sublease rentals of $11.8 due in the future under noncancellable subleases. 

Schedule of Weighted Average Remaining Lease Term and Weighted Average Discount Rate

Weighted average remaining lease term and weighted average discount rate were as follows:

	March 31, 2019
Weighted average remaining lease term (in years)
Operating leases		5.2
Weighted average discount rate
Operating leases		5.03	%

XML

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Schedule of Revenue from Portfolio Companies

We provide Dayforce and related services to certain investment portfolio companies of THLM and Cannae. Revenue from these portfolio companies was as follows:

	Three Months Ended March 31,
	2019		2018
American Blue Ribbon Holdings, LLC	$	0.5	$	0.5
Essex Bargain Hunt Superstores		0.1		0.1
Guaranteed Rate		0.3		—
System One Holdings LLC		—		0.2

XML

Net Income (Loss) per Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of Numerators and Denominators of Basic and Diluted Net Income (Loss) per Share Computations

The numerators and denominators of the basic and diluted net income (loss) per share computations are calculated as follows:

	Three Months Ended March 31,
	2019		2018
			*As Adjusted
Numerator:
Net income attributable to Ceridian	$	11.2	$	0.6
Less: Loss from discontinued operations		—		(2.1	)
Net income from continuing operations attributable to Ceridian		11.2		2.7
Less: Senior Preferred Stock dividends declared		—		5.3
Net income (loss) from continuing operations attributable to Ceridian available    to common stockholders	$	11.2	$	(2.6	)
Denominator:
Weighted-average shares outstanding - basic		140,149,271		65,314,462
Effect of dilutive equity instruments		6,892,957		—
Weighted-average shares outstanding - diluted		147,042,228		65,314,462
Net income (loss) per share from continuing operations attributable to    Ceridian - basic	$	0.08	$	(0.04	)
Net loss per share from discontinued operations - basic	$	—	$	(0.03	)
Net income (loss) per share attributable to Ceridian - basic	$	0.08	$	(0.07	)
Net income (loss) per share from continuing operations attributable to    Ceridian - diluted	$	0.08	$	(0.04	)
Net loss per share from discontinued operations - diluted	$	—	$	(0.03	)
Net income (loss) per share attributable to Ceridian - diluted	$	0.08	$	(0.07	)

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

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

	Three Months Ended March 31,
	2019		2018
Senior convertible preferred stock		—		16,802,144
Junior convertible preferred stock		—		58,244,308
Stock options		1,059,230		12,055,839
Restricted stock units		—		581,440

XML

Organization - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended
	Apr. 03, 2019	Mar. 22, 2019	Mar. 31, 2019	Dec. 31, 2018
Common Stock, shares issued	14,222,142		140,675,332	139,453,710
Secondary Offering [Member]
Shares issued		13,000,000
Shares issued, price per share		$ 50.50
Secondary Offering [Member] | Selling, General and Administrative Expense [Member]
Offering costs			$ 0.9
Underwriter [Member]
Stock option granted		1,950,000
Issuance of common stock upon exercise of options, shares	1,222,142

XML

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended
	Jan. 01, 2019	Mar. 31, 2019	Dec. 31, 2018
Significant Accounting Policies [Line Items]
Tax cuts and jobs act, reclassification from AOCI to retained earnings, tax effect	$ 27.1
Amortization expense for the deferred costs		$ 7.7	$ 6.1
Other Assets [Member]
Significant Accounting Policies [Line Items]
Deferred costs		$ 86.1	$ 83.5

XML

Summary of Significant Accounting Policies - Impact of Adoption of ASUs on Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Trade and other receivables, net	$ 68.8	$ 63.9
Prepaid expenses and other current assets	55.3	48.9
Other assets	96.0	94.4
LIABILITIES
Deferred revenue	23.0	23.2
Other liabilities	$ 42.7	45.9
Accounting Standards Update 2014-09 [Member] | As Previously Reported [Member]
ASSETS
Trade and other receivables, net		69.9
Prepaid expenses and other current assets		42.3
Other assets		1.6
LIABILITIES
Deferred revenue		17.2
Other liabilities		42.0
Accounting Standards Update 2014-09 [Member] | ASU Adjustments [Member]
ASSETS
Trade and other receivables, net		(6.0)
Prepaid expenses and other current assets		6.6
Other assets		92.8
LIABILITIES
Deferred revenue		6.0
Other liabilities		$ 3.9

XML

Summary of Significant Accounting Policies - Impact of Adoption of ASUs on Condensed Consolidated Statement of Operations (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue:
Recurring services	$ 172.8	$ 160.9
Professional services and other	30.9	27.9
Total revenue	203.7	188.8
Selling, general, and administrative expense	66.2	54.9
Operating profit	27.4	28.0
Other income, net	1.6	(2.2)
Income tax expense	5.7	5.8
Net (loss) income attributable to Ceridian	$ 11.2	$ 0.6
Net loss per share attributable to Ceridian, basic and diluted		$ (0.07)
As Previously Reported [Member]
Revenue:
Recurring services		$ 167.0
Professional services and other		20.2
Total revenue		187.2
Selling, general, and administrative expense		56.8
Operating profit		24.5
Other income, net		(2.8)
Income tax expense		5.6
Net (loss) income attributable to Ceridian		$ (2.1)
Net loss per share attributable to Ceridian, basic and diluted		$ (0.11)
Accounting Standards Update 2014-09 [Member] | Adjustments [Member]
Revenue:
Recurring services		$ (6.1)
Professional services and other		7.7
Total revenue		1.6
Selling, general, and administrative expense		(1.3)
Operating profit		2.9
Income tax expense		0.2
Net (loss) income attributable to Ceridian		$ 2.7
Net loss per share attributable to Ceridian, basic and diluted		$ 0.04
Accounting Standards Update 2017-07 [Member] | Adjustments [Member]
Revenue:
Selling, general, and administrative expense		$ (0.6)
Operating profit		0.6
Other income, net		$ 0.6

XML

Summary of Significant Accounting Policies - Impact of Adoption of ASUs on Condensed Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net (loss) income	$ 11.2	$ 0.1
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Deferred income tax benefit	(1.9)	(0.2)
Other	0.5	(0.2)
Changes in operating assets and liabilities excluding effects of acquisitions and divestitures:
Trade and other receivables	(3.8)	(1.3)
Prepaid expenses and other current assets	(7.0)	(13.3)
Deferred revenue	(0.2)	3.3
Accrued taxes	(8.1)	6.3
Other assets and liabilities	(2.2)	(5.2)
Net cash used in operating activities- continuing operations	(8.8)	(22.3)
Cash Flows from Investing Activities
Net cash used in investing activities	(117.6)	(355.5)
Effect of Exchange Rate Changes on Cash, Restricted Cash, and Equivalents	3.9	(4.5)
Net decrease in cash, restricted cash, and equivalents	1,812.0	(153.3)
Elimination of cash from discontinued operations		1.0
Cash, restricted cash, and equivalents at beginning of period	1,106.3	2,411.8
Cash, restricted cash, and equivalents at end of period	$ 2,918.3	2,259.5
As Previously Reported [Member]
Net (loss) income		(2.6)
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Deferred income tax benefit		(0.4)
Other		0.4
Changes in operating assets and liabilities excluding effects of acquisitions and divestitures:
Trade and other receivables		(0.2)
Prepaid expenses and other current assets		(11.4)
Deferred revenue		2.1
Accrued taxes		5.9
Other assets and liabilities		(4.3)
Net cash used in operating activities- continuing operations		(22.3)
Cash Flows from Investing Activities
Net change in restricted cash and other restricted assets held to satisfy customer trust funds obligations		114.8
Net cash used in investing activities		(240.7)
Effect of Exchange Rate Changes on Cash, Restricted Cash, and Equivalents		(3.4)
Net decrease in cash, restricted cash, and equivalents		(37.4)
Elimination of cash from discontinued operations		1.0
Cash, restricted cash, and equivalents at beginning of period		94.2
Cash, restricted cash, and equivalents at end of period		57.8
Accounting Standards Update 2014-09 [Member] | Adjustments [Member]
Net (loss) income		2.7
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Deferred income tax benefit		0.2
Other		(0.6)
Changes in operating assets and liabilities excluding effects of acquisitions and divestitures:
Trade and other receivables		(1.1)
Prepaid expenses and other current assets		(1.9)
Deferred revenue		1.2
Accrued taxes		0.4
Other assets and liabilities		(0.9)
Accounting Standards Update 2016-18 [Member] | Adjustments [Member]
Cash Flows from Investing Activities
Net change in restricted cash and other restricted assets held to satisfy customer trust funds obligations		(114.8)
Net cash used in investing activities		(114.8)
Effect of Exchange Rate Changes on Cash, Restricted Cash, and Equivalents		(1.1)
Net decrease in cash, restricted cash, and equivalents		(115.9)
Cash, restricted cash, and equivalents at beginning of period		2,317.6
Cash, restricted cash, and equivalents at end of period		$ 2,201.7

XML

Discontinued Operations - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Discontinued Operations And Disposal Groups [Abstract]
Net (loss) income attributable to noncontrolling interest	$ (0.5)

XML

Discontinued Operations - Supplemental Disclosure of Discontinued Operation (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations, net of income taxes	$ (2.1)
LifeWorks [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	21.7
Loss from operations before income taxes	(0.9)
Income tax expense	(1.2)
Loss from discontinued operations, net of income taxes	(2.1)
Depreciation and amortization	$ 1.0

XML

Fair Value Measurements - Asset and Liability Measured at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Millions		Mar. 31, 2019	Dec. 31, 2018
Assets
Available for sale customer trust funds assets		$ 1,847.7	$ 1,719.6
Total assets measured at fair value		1,847.7	1,719.6
Fair Value, Inputs, Level 2 [Member]
Assets
Available for sale customer trust funds assets	[1]	1,847.7	1,719.6
Total assets measured at fair value		$ 1,847.7	$ 1,719.6

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

XML

Customer Trust Fund - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Investments Debt And Equity Securities [Abstract]
Investment income from invested customer trust fund included in revenue	$ 24.3	$ 17.6

XML

Customer Trust Fund - Investment of Customer Trust Fund (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Money market securities, investments carried at cost and other cash equivalents, Fair Value	$ 2,701.2	$ 872.3
Invested customer trust funds, Fair Value	4,548.9	2,591.9
Trust receivables, Fair Value	10.8	11.6
Total customer trust funds, Fair Value	4,559.7	2,603.5
Money market securities, investments carried at cost and other cash equivalents, Amortized Cost	2,701.2	872.3
Invested customer trust funds, Amortized Cost	4,543.2	2,608.1
Trust receivables, Amortized Cost	10.8	11.6
Total customer trust funds, Amortized Cost	4,554.0	2,619.7
Amortized Cost	1,842.0	1,735.8
Gross Unrealized Gain	13.5	4.3
Gross Unrealized Loss	(7.8)	(20.5)
Fair value	1,847.7	1,719.6
U.S. Government and Agencies Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	598.2	573.4
Gross Unrealized Gain	1.1	0.2
Gross Unrealized Loss	(5.1)	(11.4)
Fair value	594.2	562.2
Canadian and Provincial Government Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	396.4	392.5
Gross Unrealized Gain	6.8	3.4
Gross Unrealized Loss	(0.3)	(1.4)
Fair value	402.9	394.5
Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	551.4	499.5
Gross Unrealized Gain	4.8	0.5
Gross Unrealized Loss	(1.1)	(4.7)
Fair value	555.1	495.3
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	257.0	247.1
Gross Unrealized Gain	0.7	0.2
Gross Unrealized Loss	(1.1)	(2.7)
Fair value	256.6	244.6
Mortgage-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	24.3	8.5
Gross Unrealized Gain	0.1
Gross Unrealized Loss	(0.1)	(0.2)
Fair value	24.3	8.3
Other Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	14.7	14.8
Gross Unrealized Loss	(0.1)	(0.1)
Fair value	$ 14.6	$ 14.7

XML

Customer Trust Fund - Gross Unrealized Losses and Related Fair Value of Investment (Detail) $ in Millions	Mar. 31, 2019 USD ($)
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Unrealized Losses	$ (0.1)
Less than 12 months, Fair Value	50.1
12 months or more, Unrealized Losses	(7.7)
12 months or more, Fair Value	827.0
Total, Unrealized Losses	(7.8)
Total, Fair Value	877.1
U.S. Government and Agencies Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Unrealized Losses	(0.1)
Less than 12 months, Fair Value	24.7
12 months or more, Unrealized Losses	(5.0)
12 months or more, Fair Value	384.6
Total, Unrealized Losses	(5.1)
Total, Fair Value	409.3
Canadian and Provincial Government Securities [Member]
Debt Securities, Available-for-sale [Line Items]
12 months or more, Unrealized Losses	(0.3)
12 months or more, Fair Value	98.7
Total, Unrealized Losses	(0.3)
Total, Fair Value	98.7
Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	16.4
12 months or more, Unrealized Losses	(1.1)
12 months or more, Fair Value	169.3
Total, Unrealized Losses	(1.1)
Total, Fair Value	185.7
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	5.0
12 months or more, Unrealized Losses	(1.1)
12 months or more, Fair Value	156.7
Total, Unrealized Losses	(1.1)
Total, Fair Value	161.7
Mortgage-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	4.0
12 months or more, Unrealized Losses	(0.1)
12 months or more, Fair Value	7.4
Total, Unrealized Losses	(0.1)
Total, Fair Value	11.4
Other Securities [Member]
Debt Securities, Available-for-sale [Line Items]
12 months or more, Unrealized Losses	(0.1)
12 months or more, Fair Value	10.3
Total, Unrealized Losses	(0.1)
Total, Fair Value	$ 10.3

XML

Customer Trust Fund - Gross Unrealized Losses and Related Fair Value of Investment (Parenthetical) (Detail) $ in Thousands	Mar. 31, 2019 USD ($)
Debt Securities, Available-for-sale [Line Items]
Unrealized losses, less than 12 months	$ 100
Mortgage-backed Securities [Member] | Maximum [Member]
Debt Securities, Available-for-sale [Line Items]
Unrealized losses, less than 12 months	$ 50

XML

Customer Trust Fund - Amortized Cost and Fair Value of Investment Security Available for Sale (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Due in one year or less, Cost	$ 3,161.8
Due in one to three years, Cost	545.1
Due in three to five years, Cost	601.1
Due after five years, Cost	235.2
Invested customer trust funds, Cost	4,543.2	$ 2,608.1
Due in one year or less, Fair Value	3,160.9
Due in one to three years, Fair Value	545.3
Due in three to five years, Fair Value	608.0
Due after five years, Fair Value	234.7
Invested customer trust funds, Fair Value	$ 4,548.9	$ 2,591.9

XML

Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Balance	$ 1,927.4	$ 1,961.0
Asset acquisition	9.0
Translation	8.5	(33.6)
Balance	$ 1,944.9	$ 1,927.4

XML

Goodwill and Intangible Assets - Schedule of Other Intangible Asset (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 534.6	$ 531.1
Accumulated Amortization	(350.3)	(343.6)
Net	184.3	187.5
Trade Name [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	173.7	173.5
Accumulated Amortization	(1.9)	(1.9)
Net	171.8	171.6
Customer Lists and Relationships [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	206.8	205.4
Accumulated Amortization	(195.7)	(190.2)
Net	$ 11.1	$ 15.2
Customer Lists and Relationships [Member] | Minimum [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Estimated Life Range (Years)	5 years	5 years
Customer Lists and Relationships [Member] | Maximum [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Estimated Life Range (Years)	15 years	15 years
Technology [Member]
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 154.1	$ 152.2
Accumulated Amortization	(152.7)	(151.5)
Net	$ 1.4	$ 0.7
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)	4 years	4 years

XML

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 4.7	$ 4.7

XML

Debt - Schedule of Debt Obligations (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total debt	$ 676.6	$ 678.3
Less unamortized discount on Term Debt	1.6	1.7
Less unamortized debt issuance costs on Senior Notes and Term Debt	6.1	6.3
Less current portion of long-term debt	6.8	6.8
Long-term debt, less current portion	662.1	663.5
Term Debt [Member]
Debt Instrument [Line Items]
Total debt	$ 676.6	$ 678.3

XML

Debt - Schedule of Debt Obligations (Parenthetical) (Detail) $ in Millions, $ in Millions	Mar. 31, 2019 USD ($)	Mar. 31, 2019 CAD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CAD ($)
Term Debt [Member]
Debt Instrument [Line Items]
Interest rate on debt	5.50%	5.50%	5.80%	5.80%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Available capacity	$ 300.0
Revolving Credit Facility [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Available capacity	2.7		$ 2.7
Canada Line of Credit [Member]
Debt Instrument [Line Items]
Available capacity	$ 5.2	$ 7.0	$ 5.1	$ 7.0

XML

Debt - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
	Mar. 26, 2019	Mar. 31, 2019	Dec. 31, 2017	Dec. 31, 2018	Apr. 30, 2018
Debt Instrument [Line Items]
Fair value of our indebtedness		$ 674.9		$ 649.5
2018 Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Available capacity for letters of credit					$ 300.0
Line of credit maturity date		Apr. 30, 2023
2018 Senior Secured Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate description		Floating rate term debt interest rate is reduced from LIBOR plus 3.25% to LIBOR plus 3.00%
Accrued interest		$ 3.5		$ 0.1
2018 Senior Secured Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable interest rate	3.00%		3.25%
2018 Term Debt [Member]
Debt Instrument [Line Items]
Debt instrument principal amount					$ 680.0
Term loan debt maturity period		2025-04
2018 Term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable interest rate		3.25%

XML

Debt - Schedule of Future Principal Payments and Maturities of Indebtedness (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
2019	$ 5.1
2020	6.8
2021	6.8
2022	6.8
2023	6.8
Thereafter	644.3
Total debt	$ 676.6	$ 678.3

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
	Mar. 31, 2019	Mar. 31, 2018
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic cost (benefit gain)	$ 1.3	$ 0.6
Defined Benefit Pension Plan [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	4.5	4.1
Actuarial loss (gain) amortization	3.2	3.6
Less: Expected return on plan assets	(5.9)	(6.5)
Net periodic cost (benefit gain)	1.8	1.2
Other Postretirement Benefits Plan [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	0.1	0.1
Actuarial loss (gain) amortization	(0.6)	(0.6)
Prior service credit amortization		(0.1)
Net periodic cost (benefit gain)	$ (0.5)	$ (0.6)

XML

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions			3 Months Ended
	Nov. 09, 2018	Apr. 24, 2018	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, share Reserve			4,196,193
Shares reserved for issuance increase percentage		3.00%
Share-based compensation expense			$ 6.0	$ 2.7
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense related to unvested stock options not yet recognized			0.0
Term Based Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense related to unvested stock options not yet recognized			$ 107.7
Share-based compensation expense related to unvested awards expected to be recognized over a weighted average period			2 years 3 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			2 years 4 months 24 days
Stock options, vested			125,000
Unvested restricted stock units outstanding			464,073
Vested restricted stock units outstanding			250,000
Share-based compensation expense related to unvested restricted stock units not yet recognized			$ 11.2
Minimum [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting period			3 years
Maximum [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting period			4 years
HCM Stock Incentive Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares outstanding			2,500
HCM Stock Incentive Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares outstanding			8,104,518
Share based compensation arrangement by share based payment award exercise period after employment termination			90 days
Stock option awards, contractual term			10 years
HCM Stock Incentive Plan 2013 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting period			4 years
HCM Stock Incentive Plan 2013 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting period			5 years
HCM Equity Incentive Plan 2018 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares outstanding			9,359,755
Restricted stock vesting period		4 years
Share based compensation arrangement by share based payment award exercise period after employment termination		90 days
Stock option awards, contractual term		10 years
Number of shares authorized		13,500,000
Shares available for future grants of equity awards			8,336,438
HCM Global Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards, contractual term	10 years
HCM Global Employee Stock Purchase Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	2,500,000

XML

Share-Based Compensation - Summary of Performance-Based Option Activity (Detail) - Performance Shares [Member] - Share Based Compensation Plans [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Shares
Options Outstanding at Beginning of Period	366,377
Options, Granted	0
Options, Exercised	(43,849)
Options, Forfeited or expired	0
Options Outstanding at End of Period	322,528	366,377
Options Exercisable at End of Period	322,528
Weighted Average Exercise Price (per share)
Weighted Average Exercise Price at Beginning of Period	$ 13.50
Weighted Average Exercise Price, Granted	0
Weighted Average Exercise Price, Exercised	(13.64)
Weighted Average Exercise Price, Forfeited or expired	0
Weighted Average Exercise Price at End of Period	13.48	$ 13.50
Weighted Average Exercise Price Exercisable at End of Period	$ 13.48
Weighted Average Remaining Contractual Term (in years)
Weighted Average Remaining Contractual Term (in years)	2 years 10 months 24 days	3 years 1 month 6 days
Weighted Average Remaining Contractual Term Exercisable (in years)	2 years 10 months 24 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Options Outstanding	$ 12.2	$ 7.7
Aggregate Intrinsic Value, Options Exercisable	$ 12.2

XML

Share-Based Compensation - Summary of Term-Based Option Activity (Detail) - Term Based Stock Options [Member] - Share Based Compensation Plans [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Shares
Options Outstanding at Beginning of Period	13,549,769
Options, Granted	4,112,295
Options, Exercised	(1,186,362)
Options, Forfeited or expired	(45,530)
Options Outstanding at End of Period	16,430,172	13,549,769
Options Exercisable at End of Period	4,960,532
Weighted Average Exercise Price (per share)
Weighted Average Exercise Price at Beginning of Period	$ 19.28
Weighted Average Exercise Price, Granted	49.66
Weighted Average Exercise Price, Exercised	(16.69)
Weighted Average Exercise Price, Forfeited or expired	(21.22)
Weighted Average Exercise Price at End of Period	26.83	$ 19.28
Weighted Average Exercise Price Exercisable at End of Period	$ 16.84
Weighted Average Remaining Contractual Term (in years)
Weighted Average Remaining Contractual Term (in years)	8 years 1 month 6 days	7 years 6 months
Weighted Average Remaining Contractual Term Exercisable (in years)	5 years 7 months 6 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Options Outstanding	$ 402.1	$ 206.8
Aggregate Intrinsic Value, Options Exercisable	$ 170.9

XML

Share-Based Compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2019 shares
Restricted Stock Units
RSUs, Shares issued upon vesting of RSUs	(125,000)
RSUs outstanding at End of Period	464,073
Share Based Compensation Plans [Member]
Restricted Stock Units
RSUs outstanding at Beginning of Period	664,073
RSUs, Granted	50,000
RSUs, Shares issued upon vesting of RSUs	0
RSUs, Forfeited or canceled	0
RSUs outstanding at End of Period	714,073
RSUs releasable at End of Period	250,000

XML

Revenue - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) Cloudoffering Employee Service	Dec. 31, 2018 USD ($)
Revenue [Line Items]
Contract asset	$ 38.2	$ 40.0
Revenue expected to be recognized, amount	$ 785.2
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.
Cloud Revenue [Member]
Revenue [Line Items]
Number of cloud offering delivering solution | Cloudoffering	2
Powerpay [Member] | Maximum [Member]
Revenue [Line Items]
Number of employees generating revenue from recurring fees | Employee	20
Bureau Revenue [Member]
Revenue [Line Items]
Number of primary service lines delivering solutions | Service	3

XML

Revenue - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation Of Revenue [Line Items]
Total revenue	$ 154.6	$ 126.9
Dayforce [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	132.8	104.1
Powerpay [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	21.8	22.8
HCM [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	203.7	188.8
HCM [Member] | Cloud recurring services revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	124.4	99.9
HCM [Member] | Cloud professional services revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	30.2	27.0
HCM [Member] | Cloud Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	154.6	126.9
HCM [Member] | Bureau recurring services revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	48.4	61.0
HCM [Member] | Bureau professional services revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	0.7	0.9
HCM [Member] | Bureau Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 49.1	$ 61.9

XML

Revenue - Schedule of Changes in Deferred Revenue (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue From Contract With Customer [Abstract]
Deferred revenue, beginning of period	$ 23.2	$ 16.5
New billings	63.6	44.9
Revenue recognized	(63.8)	(41.7)
Deferred revenue, end of period	$ 23.0	$ 19.7

XML

Revenue - Additional Information 1 (Detail) $ in Millions	Mar. 31, 2019 USD ($)
Revenue [Line Items]
Revenue expected to be recognized, amount	$ 785.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01
Revenue [Line Items]
Remaining performance obligations recognition period	3 years
Revenue expected to be recognized, amount	$ 785.2

XML

Supplementary Data to Statements of Operations - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Foreign currency translation income (expense)	$ 0.3	$ 2.8
Net periodic benefit expense, excluding service cost	$ 1.3	$ 0.6

XML

Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 1,615.5
Other comprehensive income (loss) before income taxes and reclassifications	34.1
Income tax expense	(2.7)
Reclassifications to earnings	2.6
Other comprehensive income	34.0
Ending balance	1,686.8
ASU 2018-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative-effect adjustment related to the adoption of ASU 2018-02 (Please refer to Note 2)	(27.1)
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(207.5)
Other comprehensive income (loss) before income taxes and reclassifications	12.3
Other comprehensive income	12.3
Ending balance	(195.2)
Unrealized Gain (Loss) from Invested Customer Trust Funds [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(18.3)
Other comprehensive income (loss) before income taxes and reclassifications	21.9
Income tax expense	(2.7)
Other comprehensive income	19.2
Ending balance	1.3
Unrealized Gain (Loss) from Invested Customer Trust Funds [Member] | ASU 2018-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative-effect adjustment related to the adoption of ASU 2018-02 (Please refer to Note 2)	0.4
Pension Liability Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(150.1)
Other comprehensive income (loss) before income taxes and reclassifications	(0.1)
Reclassifications to earnings	2.6
Other comprehensive income	2.5
Ending balance	(175.1)
Pension Liability Adjustment [Member] | ASU 2018-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative-effect adjustment related to the adoption of ASU 2018-02 (Please refer to Note 2)	(27.5)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(375.9)
Ending balance	(369.0)
Accumulated Other Comprehensive Income (Loss) [Member] | ASU 2018-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative-effect adjustment related to the adoption of ASU 2018-02 (Please refer to Note 2)	$ (27.1)

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Income Taxes [Line Items]
Income tax expense	$ 5.7	$ 5.8
Unrecognized tax benefits	1.5		$ 1.3
Accrued Interest included in unrecognized tax benefits	0.2		$ 0.2
Unrecognized tax benefits if recognized would impact on effective income tax rate	$ 1.5
Income tax examination description	With a 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 2014.
Base Erosion and Anti-Abuse Tax (“BEAT”) [Member]
Income Taxes [Line Items]
Income tax expense	$ 3.9
Foreign Operation [Member]
Income Taxes [Line Items]
Income tax expense	$ 1.6

XML

Leases - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Leases [Abstract]
Maximum initial term of leases which are not recorded on balance sheet	12 months
Operating cash flows from operating leases	$ 3.8

XML

Leases - Supplemental Balance Sheet Information Related to Leases (Detail) $ in Millions	Mar. 31, 2019 USD ($)
Operating Leased Assets [Line Items]
Total lease assets	$ 43.4
Operating lease liability current	$ 13.9
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	cday:ShortTermLeaseLiabilitiesMember
Operating lease liability noncurrent	$ 32.7
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	cday:LongTermLeaseLiabilitiesMember
Total lease liabilities	$ 46.6
Trade And Other Receivables Net
Operating Leased Assets [Line Items]
Total lease assets	1.9
Prepaid Expenses and Other Current Assets
Operating Leased Assets [Line Items]
Total lease assets	1.6
Right Of Use Lease Asset
Operating Leased Assets [Line Items]
Total lease assets	$ 39.9

XML

Leases - Components of Lease Expense (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Lease Cost
Operating lease cost	$ 4.0
Sublease income	(1.2)
Net lease cost	$ 2.8

XML

Leases - Maturities of Lease Liabilities (Detail) $ in Millions	Mar. 31, 2019 USD ($)
Operating Leases
2019	$ 11.9
2020	14.3
2021	9.6
2022	9.1
2023	7.3
Thereafter	6.7
Total lease payments	58.9	[1]
Less: Interest	6.7
Present value of lease liabilities	$ 52.2

[1] Maturities of lease liabilities have not been reduced by minimum sublease rentals of $11.8 due in the future under noncancellable subleases.

XML

Leases - Maturities of Lease Liabilities (Parenthetical) (Detail) $ in Millions	Mar. 31, 2019 USD ($)
Leases [Abstract]
Minimum sublease rentals under noncancallable subleases	$ 11.8

XML

Leases - Schedule of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Detail)	Mar. 31, 2019
Leases [Abstract]
Operating leases, weighted average remaining lease term	5 years 2 months 12 days
Operating leases, weighted average discount rate	5.03%

XML

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cannae and THLM [Member]
Related Party Transaction [Line Items]
Management fees description	Amount equal to the greater of (a) $0.9, or (b) 0.5 percent of Adjusted EBITDA.
Management fee under condition one	$ 0.9
Management fee percentage of EBITDA under condition two	0.50%
Management fee		$ 0.5
CompuCom Systems, Inc. [Member]
Related Party Transaction [Line Items]
Payment to service provider	$ 0.5	0.2
Fleet Cor Technologies Or Wholly Owned Affiliates [Member] | Dayforce HCM Services, Reseller/Referral Arrangement [Member]
Related Party Transaction [Line Items]
Revenue from related parties	0.2	0.3
The Stronach Group [Member] | Dayforce [Member]
Related Party Transaction [Line Items]
Revenue from related parties	0.1	0.1
FNF [Member] | Payroll-Related Tax Filings Services [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 0.1	$ 0.1

XML

Related Party Transactions - Schedule of Revenue from Portfolio Companies (Detail) - Dayforce [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
American Blue Ribbon Holdings, LLC [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 0.5	$ 0.5
Essex Bargain Hunt Superstores [Member]
Related Party Transaction [Line Items]
Revenue from related parties	0.1	0.1
Guaranteed Rate [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 0.3
System One Holdings LLC [Member]
Related Party Transaction [Line Items]
Revenue from related parties		$ 0.2

XML

Net Income (Loss) per Share - Schedule of Numerators and Denominators of Basic and Diluted Net Income (Loss) per Share Computations (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income attributable to Ceridian	$ 11.2	$ 0.6
Less: Loss from discontinued operations		(2.1)
Net income from continuing operations attributable to Ceridian	11.2	2.7
Less: Senior Preferred Stock dividends declared		5.3
Net income (loss) from continuing operations attributable to Ceridian available to common stockholders	$ 11.2	$ (2.6)
Denominator:
Weighted-average shares outstanding - basic	140,149,271	65,314,462
Effect of dilutive equity instruments	6,892,957
Weighted-average shares outstanding - diluted	147,042,228	65,314,462
Net income (loss) per share from continuing operations attributable to Ceridian - basic	$ 0.08	$ (0.04)
Net loss per share from discontinued operations - basic		(0.03)
Net income (loss) per share attributable to Ceridian - basic	0.08	(0.07)
Net income (loss) per share from continuing operations attributable to Ceridian - diluted	0.08	(0.04)
Net loss per share from discontinued operations - diluted		(0.03)
Net income (loss) per share attributable to Ceridian - diluted	$ 0.08	$ (0.07)

XML

Net Income (Loss) per Share - Schedule of Potentially Dilutive Weighted Average Shares Excluded from Calculation of Diluted Net Income (Loss) per Share (Detail) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Senior Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		16,802,144
Junior Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		58,244,308
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,059,230	12,055,839
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		581,440