Interim Financial Data by Segment

6 Months Ended

Dec. 31, 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 certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, non-recurring gains and losses, the elimination of intercompany transactions, and interest expense. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility. In the first quarter of fiscal 2019, the Company's CODM began reviewing 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						Six Months Ended
	December 31,						December 31,
	2018			2017			2018			2017
Employer Services	$	2,450.4		$	2,297.8		$	4,788.6		$	4,477.2
PEO Services	1,058.2			942.4			2,046.0			1,842.2
Other	(2.7		)	(1.9		)	(5.5		)	(3.9		)
	$	3,505.9		$	3,238.3		$	6,829.1		$	6,315.5



	Earnings before Income Taxes
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2018			2017			2018			2017
Employer Services	$	733.3		$	581.1		$	1,371.0		$	1,118.3
PEO Services	157.0			133.2			303.0			256.5
Other	(149.3		)	(126.8		)	(286.2		)	(222.4		)
	$	741.0		$	587.5		$	1,387.8		$	1,152.4