Interim Financial Data by Segment

3 Months Ended

Sep. 30, 2018

Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. The primary components of the “Other” segment are non-recurring gains and losses, miscellaneous processing services, the elimination of intercompany transactions, interest expense, and certain charges and expenses that have not been allocated to the reportable segments. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility. Beginning in the first quarter of fiscal 2019, the Company's chief operating decision maker ("CODM") reviews segment results reported at actual interest rates and the results of the PEO segment inclusive of the results of ADP Indemnity. Additionally, the CODM reviews results with changes to certain corporate allocations. These changes represent a change in the measure of segment performance. Effective July 1, 2018, the Company adopted ASC 606 (see Note 2). The segment results in the table below reflect the impacts of adoption of ASC 606, the inclusion of client funds interest in the segments at actual interest rates, the inclusion of ADP Indemnity in the PEO segment, and changes to certain corporate allocations. The Company reflects these new segment measures beginning in the first quarter of fiscal 2019 and prior period segment results are restated for comparability.

Segment Results:



	Revenues
	Three Months Ended
	September 30,
	2018			2017
Employer Services	$	2,338.2		$	2,179.4
PEO Services	987.8			899.8
Other	(2.8		)	(2.0		)
	$	3,323.2		$	3,077.2



	Earnings before Income Taxes
	Three Months Ended
	September 30,
	2018			2017
Employer Services	$	637.6		$	537.2
PEO Services	145.9			123.3
Other	(136.7		)	(95.6		)
	$	646.8		$	564.9