Delaware | 22-1467904 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
One ADP Boulevard, Roseland, New Jersey | 07068 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: 973-974-5000 |
Large accelerated filer [x] | Accelerated filer [ ] | |
Non-accelerated filer [ ] | Smaller reporting company [ ] | |
Emerging growth company [ ] |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.10 Par Value (voting) | ADP | NASDAQ Global Select Market |
Page | ||
Statements of Consolidated Earnings Three and nine months ended March 31, 2019 and 2018 | ||
Statements of Consolidated Comprehensive Income Three and nine months ended March 31, 2019 and 2018 | ||
Consolidated Balance Sheets At March 31, 2019 and June 30, 2018 | ||
Statements of Consolidated Cash Flows Nine months ended March 31, 2019 and 2018 | ||
Item 5. | Other Information | |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
*As Restated | *As Restated | ||||||||||||||
REVENUES: | |||||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ | 2,546.9 | $ | 2,495.2 | $ | 7,084.7 | $ | 6,764.5 | |||||||
Interest on funds held for clients | 167.4 | 134.8 | 415.0 | 340.9 | |||||||||||
PEO revenues (A) | 1,133.1 | 1,066.0 | 3,176.8 | 2,906.1 | |||||||||||
TOTAL REVENUES | 3,847.4 | 3,696.0 | 10,676.5 | 10,011.5 | |||||||||||
EXPENSES: | |||||||||||||||
Costs of revenues: | |||||||||||||||
Operating expenses | 1,874.5 | 1,845.2 | 5,370.4 | 5,185.0 | |||||||||||
Systems development and programming costs | 160.1 | 163.9 | 474.2 | 481.5 | |||||||||||
Depreciation and amortization | 77.2 | 70.2 | 221.5 | 202.1 | |||||||||||
TOTAL COSTS OF REVENUES | 2,111.8 | 2,079.3 | 6,066.1 | 5,868.6 | |||||||||||
Selling, general, and administrative expenses | 750.4 | 750.1 | 2,209.4 | 2,149.0 | |||||||||||
Interest expense | 21.7 | 18.6 | 96.2 | 74.1 | |||||||||||
TOTAL EXPENSES | 2,883.9 | 2,848.0 | 8,371.7 | 8,091.7 | |||||||||||
Other income, net | (21.0 | ) | (27.2 | ) | (67.5 | ) | (107.9 | ) | |||||||
EARNINGS BEFORE INCOME TAXES | 984.5 | 875.2 | 2,372.3 | 2,027.7 | |||||||||||
Provision for income taxes | 230.8 | 214.2 | 554.9 | 283.7 | |||||||||||
NET EARNINGS | $ | 753.7 | $ | 661.0 | $ | 1,817.4 | $ | 1,744.0 | |||||||
BASIC EARNINGS PER SHARE | $ | 1.74 | $ | 1.50 | $ | 4.17 | $ | 3.95 | |||||||
DILUTED EARNINGS PER SHARE | $ | 1.73 | $ | 1.49 | $ | 4.15 | $ | 3.93 | |||||||
Basic weighted average shares outstanding | 434.1 | 441.0 | 435.5 | 441.5 | |||||||||||
Diluted weighted average shares outstanding | 436.6 | 443.4 | 438.1 | 444.1 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
*As Restated | *As Restated | ||||||||||||||
Net earnings | $ | 753.7 | $ | 661.0 | $ | 1,817.4 | $ | 1,744.0 | |||||||
Other comprehensive income/loss: | |||||||||||||||
Currency translation adjustments | (2.3 | ) | 26.8 | (49.9 | ) | 81.8 | |||||||||
Unrealized net gains/(losses) on available-for-sale securities | 259.0 | (240.4 | ) | 377.0 | (400.6 | ) | |||||||||
Tax effect | (58.0 | ) | 53.4 | (84.8 | ) | 109.9 | |||||||||
Reclassification of net (gain)/losses on available-for-sale securities to net earnings | (0.1 | ) | 0.2 | 1.4 | 1.3 | ||||||||||
Tax effect | — | 0.1 | (0.2 | ) | (0.2 | ) | |||||||||
Reclassification of pension liability adjustment to net earnings | 6.1 | 2.3 | 32.5 | 6.9 | |||||||||||
Tax effect | (1.6 | ) | (0.6 | ) | (8.1 | ) | (2.3 | ) | |||||||
Other comprehensive income/(loss), net of tax | 203.1 | (158.2 | ) | 267.9 | (203.2 | ) | |||||||||
Comprehensive income | $ | 956.8 | $ | 502.8 | $ | 2,085.3 | $ | 1,540.8 |
March 31, | June 30, | |||||||
2018 | ||||||||
2019 | *As Restated | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,826.2 | $ | 2,170.0 | ||||
Accounts receivable, net of allowance for doubtful accounts of $50.8 and $51.3, respectively | 2,485.2 | 1,984.2 | ||||||
Other current assets | 534.4 | 531.3 | ||||||
Total current assets before funds held for clients | 4,845.8 | 4,685.5 | ||||||
Funds held for clients | 36,078.2 | 27,137.8 | ||||||
Total current assets | 40,924.0 | 31,823.3 | ||||||
Long-term receivables, net of allowance for doubtful accounts of $0.5 and $0.5, respectively | 25.6 | 25.5 | ||||||
Property, plant and equipment, net | 765.8 | 793.7 | ||||||
Deferred contract costs | 2,361.6 | 2,377.4 | ||||||
Other assets | 740.3 | 699.3 | ||||||
Goodwill | 2,316.1 | 2,243.5 | ||||||
Intangible assets, net | 1,062.9 | 886.4 | ||||||
Total assets | $ | 48,196.3 | $ | 38,849.1 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 156.3 | $ | 135.4 | ||||
Accrued expenses and other current liabilities | 1,678.7 | 1,547.6 | ||||||
Accrued payroll and payroll-related expenses | 607.4 | 667.7 | ||||||
Dividends payable | 340.0 | 298.9 | ||||||
Short-term deferred revenues | 228.3 | 225.7 | ||||||
Income taxes payable | 99.7 | 43.9 | ||||||
Total current liabilities before client funds obligations | 3,110.4 | 2,919.2 | ||||||
Client funds obligations | 36,055.6 | 27,493.5 | ||||||
Total current liabilities | 39,166.0 | 30,412.7 | ||||||
Long-term debt | 2,002.3 | 2,002.4 | ||||||
Other liabilities | 759.8 | 728.0 | ||||||
Deferred income taxes | 615.8 | 522.0 | ||||||
Long-term deferred revenues | 406.2 | 448.1 | ||||||
Total liabilities | 42,950.1 | 34,113.2 | ||||||
Commitments and contingencies (Note 14) | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, $1.00 par value: authorized, 0.3 shares; issued, none | — | — | ||||||
Common stock, $0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at March 31, 2019 and June 30, 2018; outstanding, 435.5 and 438.8 shares at March 31, 2019 and June 30, 2018, respectively | 63.9 | 63.9 | ||||||
Capital in excess of par value | 1,140.2 | 1,014.8 | ||||||
Retained earnings | 17,368.6 | 16,546.6 | ||||||
Treasury stock - at cost: 203.2 and 199.9 shares at March 31, 2019 and June 30, 2018, respectively | (12,914.6 | ) | (12,209.6 | ) | ||||
Accumulated other comprehensive loss | (411.9 | ) | (679.8 | ) | ||||
Total stockholders’ equity | 5,246.2 | 4,735.9 | ||||||
Total liabilities and stockholders’ equity | $ | 48,196.3 | $ | 38,849.1 |
Nine Months Ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
*As Restated | ||||||||
Cash Flows from Operating Activities: | ||||||||
Net earnings | $ | 1,817.4 | $ | 1,744.0 | ||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | ||||||||
Depreciation and amortization | 299.6 | 278.3 | ||||||
Amortization of deferred contract costs | 655.2 | 623.5 | ||||||
Deferred income taxes | 4.1 | (145.5 | ) | |||||
Stock-based compensation expense | 122.2 | 119.4 | ||||||
Net pension expense | 41.0 | 8.2 | ||||||
Net amortization of premiums and accretion of discounts on available-for-sale securities | 38.9 | 55.6 | ||||||
Impairment of intangible assets | 12.1 | — | ||||||
Other | 21.2 | 22.0 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Increase in accounts receivable | (526.7 | ) | (239.3 | ) | ||||
Increase in other assets | (748.9 | ) | (696.1 | ) | ||||
Increase / (decrease) in accounts payable | 25.4 | (31.1 | ) | |||||
Increase in accrued expenses and other liabilities | 194.5 | 71.0 | ||||||
Net cash flows provided by operating activities | 1,956.0 | 1,810.0 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of corporate and client funds marketable securities | (2,725.8 | ) | (3,692.7 | ) | ||||
Proceeds from the sales and maturities of corporate and client funds marketable securities | 2,090.6 | 2,702.5 | ||||||
Capital expenditures | (120.3 | ) | (159.6 | ) | ||||
Additions to intangibles | (329.9 | ) | (195.8 | ) | ||||
Acquisitions of businesses, net of cash acquired | (120.4 | ) | (612.4 | ) | ||||
Proceeds from the sale of property, plant, and equipment | 7.9 | — | ||||||
Net cash flows used in investing activities | (1,197.9 | ) | (1,958.0 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Net increase in client funds obligations | 8,612.0 | 6,700.2 | ||||||
Payments of debt | (1.6 | ) | (6.8 | ) | ||||
Repurchases of common stock | (760.6 | ) | (596.2 | ) | ||||
Net proceeds from stock purchase plan and stock-based compensation plans | 50.5 | 46.1 | ||||||
Dividends paid | (949.6 | ) | (785.1 | ) | ||||
Other | (5.3 | ) | — | |||||
Net cash flows provided by financing activities | 6,945.4 | 5,358.2 | ||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (34.1 | ) | 53.1 | |||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | 7,669.4 | 5,263.3 | ||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 6,542.1 | 8,181.6 | ||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ | 14,211.5 | $ | 13,444.9 | ||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets | ||||||||
Cash and cash equivalents | $ | 1,826.2 | $ | 2,293.6 | ||||
Restricted cash and restricted cash equivalents included in funds held for clients (A) | 12,385.3 | 11,151.3 | ||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 14,211.5 | $ | 13,444.9 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 108.6 | $ | 86.5 | ||||
Cash paid for income taxes, net of income tax refunds | $ | 437.7 | $ | 423.0 |
Three Months Ended | |||||||||||||||
March 31, 2018 | |||||||||||||||
As reported | Adjustments ASC 606 | Adjustments ASU 2017-07 | As restated | ||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ | 2,492.9 | $ | 2.3 | $ | — | $ | 2,495.2 | |||||||
Interest on funds held for clients | 134.8 | — | — | 134.8 | |||||||||||
PEO revenues | 1,065.3 | 0.7 | — | 1,066.0 | |||||||||||
TOTAL REVENUES | 3,693.0 | 3.0 | — | 3,696.0 | |||||||||||
Operating expenses | 1,844.7 | (8.8 | ) | 9.3 | 1,845.2 | ||||||||||
Systems development and programming costs | 162.5 | — | 1.4 | 163.9 | |||||||||||
Depreciation and amortization | 70.2 | — | — | 70.2 | |||||||||||
Selling, general, and administrative expenses | 755.1 | (10.8 | ) | 5.8 | 750.1 | ||||||||||
Interest expense | 18.6 | — | — | 18.6 | |||||||||||
Total Expenses | 2,851.1 | (19.6 | ) | 16.5 | 2,848.0 | ||||||||||
Other income, net | (10.7 | ) | — | (16.5 | ) | (27.2 | ) | ||||||||
EARNINGS BEFORE INCOME TAXES | 852.6 | 22.6 | — | 875.2 | |||||||||||
Provision for income taxes | 209.5 | 4.7 | — | 214.2 | |||||||||||
NET EARNINGS | $ | 643.1 | $ | 17.9 | $ | — | $ | 661.0 |
Nine Months Ended | |||||||||||||||
March 31, 2018 | |||||||||||||||
As reported | Adjustments ASC 606 | Adjustments ASU 2017-07 | As restated | ||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ | 6,762.7 | $ | 1.8 | $ | — | $ | 6,764.5 | |||||||
Interest on funds held for clients | 340.9 | — | — | 340.9 | |||||||||||
PEO revenues | 2,903.6 | 2.5 | — | 2,906.1 | |||||||||||
TOTAL REVENUES | 10,007.2 | 4.3 | — | 10,011.5 | |||||||||||
Operating expenses | 5,210.6 | (53.6 | ) | 28.0 | 5,185.0 | ||||||||||
Systems development and programming costs | 477.6 | — | 3.9 | 481.5 | |||||||||||
Depreciation and amortization | 202.1 | — | — | 202.1 | |||||||||||
Selling, general, and administrative expenses | 2,134.8 | (3.3 | ) | 17.5 | 2,149.0 | ||||||||||
Interest expense | 74.1 | — | — | 74.1 | |||||||||||
Total Expenses | 8,099.2 | (56.9 | ) | 49.4 | 8,091.7 | ||||||||||
Other income, net | (58.5 | ) | — | (49.4 | ) | (107.9 | ) | ||||||||
EARNINGS BEFORE INCOME TAXES | 1,966.5 | 61.2 | — | 2,027.7 | |||||||||||
Provision / (benefit) for income taxes | 454.4 | (170.7 | ) | — | 283.7 | ||||||||||
NET EARNINGS | $ | 1,512.1 | $ | 231.9 | $ | — | $ | 1,744.0 |
June 30, | June 30, | |||||||||||
2018 | Adjustments ASC 606 | 2018 | ||||||||||
As reported | As restated | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Other current assets | $ | 758.0 | $ | (226.7 | ) | $ | 531.3 | |||||
Total current assets | 32,050.0 | (226.7 | ) | 31,823.3 | ||||||||
Deferred contract costs | — | 2,377.4 | 2,377.4 | |||||||||
Other assets | 1,089.6 | (390.3 | ) | 699.3 | ||||||||
Total assets | $ | 37,088.7 | $ | 1,760.4 | $ | 38,849.1 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities: | ||||||||||||
Short-term deferred revenues | 226.5 | (0.8 | ) | 225.7 | ||||||||
Total current liabilities | 30,413.6 | (0.8 | ) | 30,412.7 | ||||||||
Deferred income taxes | 107.3 | 414.7 | 522.0 | |||||||||
Long-term deferred revenues | 377.8 | 70.2 | 448.1 | |||||||||
Total liabilities | 33,629.1 | 484.1 | 34,113.2 | |||||||||
Stockholders' equity: | ||||||||||||
Retained earnings | 15,271.3 | 1,275.3 | 16,546.6 | |||||||||
Total stockholders’ equity | 3,459.6 | 1,276.3 | 4,735.9 | |||||||||
Total liabilities and stockholders’ equity | $ | 37,088.7 | $ | 1,760.4 | $ | 38,849.1 |
Nine Months Ended | ||||||||||||
March 31, | ||||||||||||
2018 | Adjustments ASC 606 | 2018 | ||||||||||
As reported | As restated | |||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net earnings | $ | 1,512.1 | $ | 231.9 | $ | 1,744.0 | ||||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | ||||||||||||
Amortization of deferred contract costs | — | 623.5 | 623.5 | |||||||||
Deferred income taxes | 18.0 | (163.5 | ) | (145.5 | ) | |||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||||||
Increase in other assets | (38.6 | ) | (657.5 | ) | (696.1 | ) | ||||||
Increase in accrued expenses and other liabilities | 105.4 | (34.4 | ) | 71.0 | ||||||||
Net cash flows provided by operating activities | $ | 1,810.0 | $ | — | $ | 1,810.0 |
Standard | Description | Effective Date | Effect on Financial Statements or Other Significant Matters |
ASU 2018-14 Compensation-Retirement Benefits-Defined Benefit Plans | This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. | July 1, 2021 (“Fiscal 2022”) | The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows. |
ASU 2018-13 Fair Value Measurement | This update modifies the disclosure requirements on fair value measurements. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. | July 1, 2020 (“Fiscal 2021”) | The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows. |
ASU 2018-09 Codification Improvements | This amendment makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification. The transition guidance is based on the facts and circumstances of each amendment. Some of the amendments do not require transition guidance and will be effective immediately. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018. | The transition and effective date guidance is based on the facts and circumstances of each amendment. | Clarifications which were effective immediately were not applicable and for other amendments the Company determined the impact of this ASU did not have a material impact on its consolidated results of operations, financial condition, or cash flows. |
Standard | Description | Effective Date | Effect on Financial Statements or Other Significant Matters | |
ASU 2016-02 Leases (Topic 842) | This update amends the existing accounting standards for lease accounting and requires lessees to recognize most lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. In July 2018, the FASB issued Accounting Standards Update 2018-10-Codification Improvements to Topic 842 (Leases), and Accounting Standards Update 2018-11-Leases (Topic 842)-Targeted Improvements, which (i) narrows amendments to clarify how to apply certain aspects of the new lease standard, (ii) provides entities with an additional transition method to adopt the new standard, and (iii) provides lessors with a practical expedient for separating components of a contract. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) to be more general and/or to correct unintended application of guidance. | July 1, 2019 (“Fiscal 2020”) | The Company has been assessing the impacts of the new standard. The Company anticipates using the optional transition method with a cumulative adjustment to retained earnings. The Company has reached a decision as to the systems it will use to manage the accounting for leases, determined the contracts that are considered leases under the new guidance and is currently in the process of implementing the systems and establishing the appropriate controls and procedures. The Company will utilize the transition package of practical expedients permitted within the new guidance which, among other things, will allow the Company to carry forward the historical lease classification. Upon adoption, the Company anticipates a material impact to its Consolidated Balance Sheets but expects no impact to the Statements of Consolidated Earnings or Statements of Consolidated Cash Flows. The most significant impact will be the recognition of the right-of-use (“ROU”) assets and lease liabilities for operating leases. We estimate the adoption of the guidance will result in the recognition and presentation of total operating lease ROU assets to be approximately $600 million to $700 million and total operating lease liabilities to be approximately $500 million to $600 million, upon the adoption date. | |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
Types of Revenues | 2019 | 2018 | 2019 | 2018 | |||||||||||
HCM | $ | 1,771.4 | $ | 1,759.4 | $ | 4,886.1 | $ | 4,696.4 | |||||||
HRO, excluding PEO benefits pass-throughs | 678.7 | 661.7 | 1,855.4 | 1,713.6 | |||||||||||
PEO benefits pass-throughs | 684.5 | 626.4 | 2,011.1 | 1,828.7 | |||||||||||
Global | 545.4 | 513.7 | 1,508.9 | 1,431.9 | |||||||||||
Interest on funds held for clients | 167.4 | 134.8 | 415.0 | 340.9 | |||||||||||
Total Revenues | $ | 3,847.4 | $ | 3,696.0 | $ | 10,676.5 | $ | 10,011.5 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||
HCM | $ | 1,774.7 | $ | — | $ | (3.3 | ) | $ | 1,771.4 | ||||||
HRO, excluding PEO benefits pass-throughs | 233.2 | 448.6 | (3.1 | ) | 678.7 | ||||||||||
PEO benefits pass-throughs | — | 684.5 | — | 684.5 | |||||||||||
Global | 545.4 | — | — | 545.4 | |||||||||||
Interest on funds held for clients | 165.8 | 1.6 | — | 167.4 | |||||||||||
Total Segment Revenues | $ | 2,719.1 | $ | 1,134.7 | $ | (6.4 | ) | $ | 3,847.4 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||
HCM | $ | 1,756.3 | $ | — | $ | 3.1 | $ | 1,759.4 | |||||||
HRO, excluding PEO benefits pass-throughs | 225.1 | 439.5 | (2.9 | ) | 661.7 | ||||||||||
PEO benefits pass-throughs | — | 626.4 | — | 626.4 | |||||||||||
Global | 513.7 | — | — | 513.7 | |||||||||||
Interest on funds held for clients | 133.4 | 1.4 | — | 134.8 | |||||||||||
Total Segment Revenues | $ | 2,628.5 | $ | 1,067.3 | $ | 0.2 | $ | 3,696.0 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||
HCM | $ | 4,891.1 | $ | — | $ | (5.0 | ) | $ | 4,886.1 | ||||||
HRO, excluding PEO benefits pass-throughs | 696.6 | 1,165.7 | (6.9 | ) | 1,855.4 | ||||||||||
PEO benefits pass-throughs | — | 2,011.1 | — | 2,011.1 | |||||||||||
Global | 1,508.9 | — | — | 1,508.9 | |||||||||||
Interest on funds held for clients | 411.1 | 3.9 | — | 415.0 | |||||||||||
Total Segment Revenues | $ | 7,507.7 | $ | 3,180.7 | $ | (11.9 | ) | $ | 10,676.5 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||
HCM | $ | 4,694.1 | $ | — | $ | 2.3 | $ | 4,696.4 | |||||||
HRO, excluding PEO benefits pass-throughs | 642.2 | 1,077.4 | (6.0 | ) | 1,713.6 | ||||||||||
PEO benefits pass-throughs | — | 1,828.7 | — | 1,828.7 | |||||||||||
Global | 1,431.9 | — | — | 1,431.9 | |||||||||||
Interest on funds held for clients | 337.5 | 3.4 | — | 340.9 | |||||||||||
Total Segment Revenues | $ | 7,105.7 | $ | 2,909.5 | $ | (3.7 | ) | $ | 10,011.5 |
Contract Liability | |||
Contract liability, July 1, 2018 | $ | 607.5 | |
Recognition of revenue included in beginning of year contract liability | (136.7 | ) | |
Contract liability, net of revenue recognized on contracts during the period | 119.3 | ||
Currency adjustments | (10.9 | ) | |
Contract liability, March 31, 2019 | $ | 579.2 |
March 31, | |||
2019 | |||
Deferred costs to obtain a contract | $ | 919.8 | |
Deferred costs to fulfill a contract | 1,441.8 | ||
Total deferred contract costs (1) | $ | 2,361.6 |
Goodwill | $ | 406.1 | |
Identifiable intangible assets | 132.5 | ||
Other assets | 0.8 | ||
Total assets acquired | $ | 539.4 | |
Total liabilities assumed | $ | 48.4 |
Three Months Ended | Nine Months Ended | Cumulative amount from inception through | |||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | |||||||||||||||
Employee separation benefits (a) | $ | (8.2 | ) | $ | 11.8 | $ | (16.7 | ) | $ | 8.9 | $ | 82.8 | |||||||
Other initiative costs (b) | 0.5 | 1.3 | 2.2 | 4.2 | 13.2 | ||||||||||||||
Gain on sale of assets (c) | — | — | (4.1 | ) | — | (4.1 | ) | ||||||||||||
Total (d) | $ | (7.7 | ) | $ | 13.1 | $ | (18.6 | ) | $ | 13.1 | $ | 91.9 |
Employee separation benefits | Other initiative costs | Total | |||||||||
Balance at June 30, 2018 | $ | 54.0 | $ | 0.5 | $ | 54.5 | |||||
Charged to expense | 4.1 | 2.2 | 6.3 | ||||||||
Reversals | (20.8 | ) | — | (20.8 | ) | ||||||
Cash payments | (18.0 | ) | (2.3 | ) | (20.3 | ) | |||||
Balance at March 31, 2019 | $ | 19.3 | $ | 0.4 | $ | 19.7 | |||||
Balance at June 30, 2017 | $ | 73.9 | $ | 0.5 | $ | 74.4 | |||||
Charged to expense | 21.8 | 4.2 | 26.0 | ||||||||
Reversals | (12.9 | ) | — | (12.9 | ) | ||||||
Cash payments | (25.9 | ) | (3.4 | ) | (29.3 | ) | |||||
Non-cash utilization | — | (0.7 | ) | (0.7 | ) | ||||||
Balance at March 31, 2018 | $ | 56.9 | $ | 0.6 | $ | 57.5 |
Basic | Effect of Employee Stock Option Shares | Effect of Employee Restricted Stock Shares | Diluted | |||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||
Net earnings | $ | 753.7 | $ | 753.7 | ||||||||||
Weighted average shares (in millions) | 434.1 | 1.2 | 1.3 | 436.6 | ||||||||||
EPS | $ | 1.74 | $ | 1.73 | ||||||||||
Three Months Ended March 31, 2018 | ||||||||||||||
Net earnings | $ | 661.0 | $ | 661.0 | ||||||||||
Weighted average shares (in millions) | 441.0 | 1.0 | 1.4 | 443.4 | ||||||||||
EPS | $ | 1.50 | $ | 1.49 | ||||||||||
Nine Months Ended March 31, 2019 | ||||||||||||||
Net earnings | $ | 1,817.4 | $ | 1,817.4 | ||||||||||
Weighted average shares (in millions) | 435.5 | 1.3 | 1.3 | 438.1 | ||||||||||
EPS | $ | 4.17 | $ | 4.15 | ||||||||||
Nine Months Ended March 31, 2018 | ||||||||||||||
Net earnings | $ | 1,744.0 | $ | 1,744.0 | ||||||||||
Weighted average shares (in millions) | 441.5 | 1.1 | 1.5 | 444.1 | ||||||||||
EPS | $ | 3.95 | $ | 3.93 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest income on corporate funds | $ | (15.0 | ) | $ | (11.0 | ) | $ | (71.6 | ) | $ | (59.4 | ) | |||
Realized gains on available-for-sale securities | (0.6 | ) | (1.3 | ) | (1.2 | ) | (1.9 | ) | |||||||
Realized losses on available-for-sale securities | 0.5 | 1.6 | 2.6 | 3.2 | |||||||||||
Impairment of intangible assets | — | — | 12.1 | — | |||||||||||
Gain on sale of assets | — | — | (4.1 | ) | (0.4 | ) | |||||||||
Non-service components of pension expense, net (see Note 2) | (5.9 | ) | (16.5 | ) | (5.3 | ) | (49.4 | ) | |||||||
Other income, net | $ | (21.0 | ) | $ | (27.2 | ) | $ | (67.5 | ) | $ | (107.9 | ) |
March 31, 2019 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value (A) | ||||||||||||
Type of issue: | |||||||||||||||
Money market securities, cash and other cash equivalents | $ | 14,211.5 | $ | — | $ | — | $ | 14,211.5 | |||||||
Available-for-sale securities: | |||||||||||||||
Corporate bonds | 10,116.6 | 86.3 | (39.8 | ) | 10,163.1 | ||||||||||
Asset-backed securities | 4,572.8 | 13.1 | (22.7 | ) | 4,563.2 | ||||||||||
U.S. Treasury securities | 2,932.2 | 8.1 | (33.4 | ) | 2,906.9 | ||||||||||
U.S. government agency securities | 2,671.4 | 8.2 | (18.4 | ) | 2,661.2 | ||||||||||
Canadian government obligations and Canadian government agency obligations | 1,117.3 | 4.6 | (8.0 | ) | 1,113.9 | ||||||||||
Canadian provincial bonds | 777.0 | 8.2 | (1.5 | ) | 783.7 | ||||||||||
Municipal bonds | 600.7 | 11.4 | (0.3 | ) | 611.8 | ||||||||||
Other securities | 892.7 | 9.7 | (2.8 | ) | 899.6 | ||||||||||
Total available-for-sale securities | 23,680.7 | 149.6 | (126.9 | ) | 23,703.4 | ||||||||||
Total corporate investments and funds held for clients | $ | 37,892.2 | $ | 149.6 | $ | (126.9 | ) | $ | 37,914.9 |
June 30, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value (B) | ||||||||||||
Type of issue: | |||||||||||||||
Money market securities, cash and other cash equivalents | $ | 6,542.1 | $ | — | $ | — | $ | 6,542.1 | |||||||
Available-for-sale securities: | |||||||||||||||
Corporate bonds | 9,819.4 | 20.3 | (160.9 | ) | 9,678.8 | ||||||||||
Asset-backed securities | 4,555.5 | 0.3 | (64.1 | ) | 4,491.7 | ||||||||||
U.S. Treasury securities | 2,678.9 | 0.4 | (76.9 | ) | 2,602.4 | ||||||||||
US government agency securities | 2,787.0 | 4.0 | (47.7 | ) | 2,743.3 | ||||||||||
Canadian government obligations and Canadian government agency obligations | 1,109.0 | 0.4 | (20.6 | ) | 1,088.8 | ||||||||||
Canadian provincial bonds | 724.5 | 5.1 | (7.4 | ) | 722.2 | ||||||||||
Municipal bonds | 584.6 | 3.2 | (4.3 | ) | 583.5 | ||||||||||
Other securities | 873.0 | 3.0 | (10.5 | ) | 865.5 | ||||||||||
Total available-for-sale securities | 23,131.9 | 36.7 | (392.4 | ) | 22,776.2 | ||||||||||
Total corporate investments and funds held for clients | $ | 29,674.0 | $ | 36.7 | $ | (392.4 | ) | $ | 29,318.3 |
March 31, 2019 | |||||||||||||||||||||||
Securities in Unrealized Loss Position Less Than 12 Months | Securities in Unrealized Loss Position Greater Than 12 Months | Total | |||||||||||||||||||||
Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | Fair Market Value | ||||||||||||||||||
Corporate bonds | $ | (0.7 | ) | $ | 117.3 | $ | (39.1 | ) | $ | 5,048.6 | $ | (39.8 | ) | $ | 5,165.9 | ||||||||
Asset-backed securities | (0.1 | ) | 25.0 | (22.6 | ) | 3,430.9 | (22.7 | ) | 3,455.9 | ||||||||||||||
U.S. Treasury securities | — | — | (33.4 | ) | 2,340.9 | (33.4 | ) | 2,340.9 | |||||||||||||||
U.S. government agency securities | — | — | (18.4 | ) | 2,153.4 | (18.4 | ) | 2,153.4 | |||||||||||||||
Canadian government obligations and Canadian government agency obligations | (7.9 | ) | 667.1 | (0.1 | ) | 51.0 | (8.0 | ) | 718.1 | ||||||||||||||
Canadian provincial bonds | (0.4 | ) | 80.4 | (1.1 | ) | 220.2 | (1.5 | ) | 300.6 | ||||||||||||||
Municipal bonds | — | 4.7 | (0.3 | ) | 46.1 | (0.3 | ) | 50.8 | |||||||||||||||
Other securities | — | 12.1 | (2.8 | ) | 354.5 | (2.8 | ) | 366.6 | |||||||||||||||
$ | (9.1 | ) | $ | 906.6 | $ | (117.8 | ) | $ | 13,645.6 | $ | (126.9 | ) | $ | 14,552.2 |
June 30, 2018 | |||||||||||||||||||||||
Securities in Unrealized Loss Position Less Than 12 Months | Securities in Unrealized Loss Position Greater Than 12 Months | Total | |||||||||||||||||||||
Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | Fair Market Value | ||||||||||||||||||
Corporate bonds | $ | (118.2 | ) | $ | 7,132.9 | $ | (42.7 | ) | $ | 994.2 | $ | (160.9 | ) | $ | 8,127.1 | ||||||||
Asset-backed securities | (47.4 | ) | 3,515.9 | (16.7 | ) | 867.7 | (64.1 | ) | 4,383.6 | ||||||||||||||
U.S. Treasury securities | (46.9 | ) | 1,676.8 | (30.0 | ) | 864.0 | (76.9 | ) | 2,540.8 | ||||||||||||||
U.S. government agency securities | (31.2 | ) | 2,013.8 | (16.5 | ) | 431.1 | (47.7 | ) | 2,444.9 | ||||||||||||||
Canadian government obligations and Canadian government agency obligations | (20.6 | ) | 1,020.3 | — | — | (20.6 | ) | 1,020.3 | |||||||||||||||
Canadian provincial bonds | (6.3 | ) | 387.7 | (1.1 | ) | 50.4 | (7.4 | ) | 438.1 | ||||||||||||||
Municipal bonds | (3.6 | ) | 285.8 | (0.7 | ) | 16.0 | (4.3 | ) | 301.8 | ||||||||||||||
Other securities | (9.2 | ) | 573.3 | (1.3 | ) | 33.4 | (10.5 | ) | 606.7 | ||||||||||||||
$ | (283.4 | ) | $ | 16,606.5 | $ | (109.0 | ) | $ | 3,256.8 | $ | (392.4 | ) | $ | 19,863.3 |
March 31, | June 30, | |||||||
2019 | 2018 | |||||||
Corporate investments: | ||||||||
Cash and cash equivalents | $ | 1,826.2 | $ | 2,170.0 | ||||
Short-term marketable securities (a) | 7.3 | 3.3 | ||||||
Long-term marketable securities (b) | 3.2 | 7.2 | ||||||
Total corporate investments | $ | 1,836.7 | $ | 2,180.5 |
March 31, | June 30, | |||||||
2019 | 2018 | |||||||
Funds held for clients: | ||||||||
Restricted cash and cash equivalents held to satisfy client funds obligations | $ | 12,385.3 | $ | 4,372.1 | ||||
Restricted short-term marketable securities held to satisfy client funds obligations | 4,556.2 | 2,521.4 | ||||||
Restricted long-term marketable securities held to satisfy client funds obligations | 19,136.7 | 20,244.3 | ||||||
Total funds held for clients | $ | 36,078.2 | $ | 27,137.8 |
One year or less | $ | 4,563.5 | |
One year to two years | 5,733.7 | ||
Two years to three years | 4,493.0 | ||
Three years to four years | 4,327.5 | ||
After four years | 4,585.7 | ||
Total available-for-sale securities | $ | 23,703.4 |
Employer Services | PEO Services | Total | |||||||||
Balance at June 30, 2018 | $ | 2,238.7 | $ | 4.8 | $ | 2,243.5 | |||||
Additions and other adjustments | 89.1 | — | 89.1 | ||||||||
Currency translation adjustments | (16.5 | ) | — | (16.5 | ) | ||||||
Balance at March 31, 2019 | $ | 2,311.3 | $ | 4.8 | $ | 2,316.1 |
March 31, | June 30, | |||||||
2019 | 2018 | |||||||
Intangible assets: | ||||||||
Software and software licenses | $ | 2,459.6 | $ | 2,292.9 | ||||
Customer contracts and lists | 855.5 | 708.6 | ||||||
Other intangibles | 237.9 | 236.5 | ||||||
3,553.0 | 3,238.0 | |||||||
Less accumulated amortization: | ||||||||
Software and software licenses | (1,722.4 | ) | (1,606.6 | ) | ||||
Customer contracts and lists | (551.5 | ) | (533.4 | ) | ||||
Other intangibles | (216.2 | ) | (211.6 | ) | ||||
(2,490.1 | ) | (2,351.6 | ) | |||||
Intangible assets, net | $ | 1,062.9 | $ | 886.4 |
Amount | |||
Three months ending June 30, 2019 | $ | 70.8 | |
Twelve months ending June 30, 2020 | $ | 255.7 | |
Twelve months ending June 30, 2021 | $ | 206.5 | |
Twelve months ending June 30, 2022 | $ | 161.1 | |
Twelve months ending June 30, 2023 | $ | 131.3 | |
Twelve months ending June 30, 2024 | $ | 94.6 |
Debt instrument | Effective Interest Rate | March 31, 2019 | June 30, 2018 | |||||||
Fixed-rate 2.25% notes due September 15, 2020 | 2.37% | $ | 1,000.0 | $ | 1,000.0 | |||||
Fixed-rate 3.375% notes due September 15, 2025 | 3.47% | 1,000.0 | 1,000.0 | |||||||
Other | 11.5 | 13.0 | ||||||||
2,011.5 | 2,013.0 | |||||||||
Less: current portion | (2.5 | ) | (2.5 | ) | ||||||
Less: unamortized discount and debt issuance costs | (6.7 | ) | (8.1 | ) | ||||||
Total long-term debt | $ | 2,002.3 | $ | 2,002.4 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating expenses | $ | 4.1 | $ | 4.8 | $ | 12.9 | $ | 15.4 | |||||||
Selling, general and administrative expenses | 36.1 | 31.8 | 94.6 | 87.9 | |||||||||||
System development and programming costs | 5.0 | 5.1 | 14.7 | 16.1 | |||||||||||
Total stock-based compensation expense | $ | 45.2 | $ | 41.7 | $ | 122.2 | $ | 119.4 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost – benefits earned during the period | $ | 14.9 | $ | 18.7 | $ | 44.9 | $ | 55.9 | |||||||
Interest cost on projected benefits | 19.7 | 16.4 | 59.0 | 49.0 | |||||||||||
Expected return on plan assets | (32.9 | ) | (34.4 | ) | (98.9 | ) | (103.0 | ) | |||||||
Net amortization and deferral | — | 2.1 | 0.1 | 6.3 | |||||||||||
Settlement charges and special termination benefits | 7.8 | — | 35.9 | — | |||||||||||
Net pension expense | $ | 9.5 | $ | 2.8 | $ | 41.0 | $ | 8.2 |
Three Months Ended | |||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | AOCI | Total | ||||||||||||||||||
Balance at December 31, 2018 | $ | 63.9 | $ | 1,076.1 | $ | 16,959.1 | $ | (12,720.2 | ) | $ | (615.0 | ) | $ | 4,763.9 | |||||||||
Net earnings | — | — | 753.7 | — | — | 753.7 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 203.1 | 203.1 | |||||||||||||||||
Stock-based compensation expense | — | 35.8 | — | — | — | 35.8 | |||||||||||||||||
Issuances relating to stock compensation plans | — | 28.3 | — | 33.6 | — | 61.9 | |||||||||||||||||
Treasury stock acquired (1.6 shares) | — | — | — | (228.0 | ) | — | (228.0 | ) | |||||||||||||||
Dividends declared ($0.79 per share) | — | — | (344.2 | ) | — | — | (344.2 | ) | |||||||||||||||
Balance at March 31, 2019 | $ | 63.9 | $ | 1,140.2 | $ | 17,368.6 | $ | (12,914.6 | ) | $ | (411.9 | ) | $ | 5,246.2 |
Three Months Ended | |||||||||||||||||||||||
March 31, 2018 | |||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | AOCI | Total | ||||||||||||||||||
Balance at December 31, 2017 | $ | 63.9 | $ | 903.5 | $ | 16,285.0 | $ | (11,663.7 | ) | $ | (428.2 | ) | $ | 5,160.5 | |||||||||
Net earnings | — | — | 661.0 | — | — | 661.0 | |||||||||||||||||
Other comprehensive income | — | — | — | — | (158.2 | ) | (158.2 | ) | |||||||||||||||
Stock-based compensation expense | — | 35.5 | — | — | — | 35.5 | |||||||||||||||||
Issuances relating to stock compensation plans | — | 25.1 | — | 39.9 | — | 65.0 | |||||||||||||||||
Treasury stock acquired (1.7 shares) | — | — | — | (202.3 | ) | — | (202.3 | ) | |||||||||||||||
Dividends declared ($0.63 per share) | — | — | (279.2 | ) | — | — | (279.2 | ) | |||||||||||||||
Other (A) | — | — | 42.3 | — | (42.3 | ) | — | ||||||||||||||||
Balance at March 31, 2018 | $ | 63.9 | $ | 964.1 | $ | 16,709.1 | $ | (11,826.1 | ) | $ | (628.7 | ) | $ | 5,282.3 |
Nine Months Ended | |||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | AOCI | Total | ||||||||||||||||||
Balance at June 30, 2018 | $ | 63.9 | $ | 1,014.8 | $ | 16,546.6 | $ | (12,209.6 | ) | $ | (679.8 | ) | $ | 4,735.9 | |||||||||
Net earnings | — | — | 1,817.4 | — | — | 1,817.4 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 267.9 | 267.9 | |||||||||||||||||
Stock-based compensation expense | — | 105.4 | — | — | — | 105.4 | |||||||||||||||||
Issuances relating to stock compensation plans | — | 20.0 | — | 117.1 | — | 137.1 | |||||||||||||||||
Treasury stock acquired (5.4 shares) | — | — | — | (822.1 | ) | — | (822.1 | ) | |||||||||||||||
Dividends declared ($2.27 per share) | — | — | (995.4 | ) | — | — | (995.4 | ) | |||||||||||||||
Balance at March 31, 2019 | $ | 63.9 | $ | 1,140.2 | $ | 17,368.6 | $ | (12,914.6 | ) | $ | (411.9 | ) | $ | 5,246.2 |
Nine Months Ended | |||||||||||||||||||||||
March 31, 2018 | |||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | AOCI | Total | ||||||||||||||||||
Balance at June 30, 2017 | $ | 63.9 | $ | 867.8 | $ | 15,739.3 | $ | (11,303.7 | ) | $ | (383.2 | ) | $ | 4,984.1 | |||||||||
Net earnings | — | — | 1,744.0 | — | — | 1,744.0 | |||||||||||||||||
Other comprehensive income | — | — | — | — | (203.2 | ) | (203.2 | ) | |||||||||||||||
Stock-based compensation expense | — | 101.7 | — | — | — | 101.7 | |||||||||||||||||
Issuances relating to stock compensation plans | — | (5.4 | ) | — | 132.4 | — | 127.0 | ||||||||||||||||
Treasury stock acquired (5.3 shares) | — | — | — | (654.8 | ) | — | (654.8 | ) | |||||||||||||||
Dividends declared ($1.83 per share) | — | — | (816.5 | ) | — | — | (816.5 | ) | |||||||||||||||
Other (A) | — | — | 42.3 | — | (42.3 | ) | — | ||||||||||||||||
Balance at March 31, 2018 | $ | 63.9 | $ | 964.1 | $ | 16,709.1 | $ | (11,826.1 | ) | $ | (628.7 | ) | $ | 5,282.3 |
Three Months Ended | |||||||||||||||
March 31, 2019 | |||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Pension Liability | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at December 31, 2018 | $ | (274.6 | ) | $ | (181.5 | ) | $ | (158.9 | ) | $ | (615.0 | ) | |||
Other comprehensive income/(loss) before reclassification adjustments | (2.3 | ) | 259.0 | — | 256.7 | ||||||||||
Tax effect | — | (58.0 | ) | — | (58.0 | ) | |||||||||
Reclassification adjustments to net earnings | — | (0.1 | ) | (A) | 6.1 | (B) | 6.0 | ||||||||
Tax effect | — | — | (1.6 | ) | (1.6 | ) | |||||||||
Balance at March 31, 2019 | $ | (276.9 | ) | $ | 19.4 | $ | (154.4 | ) | $ | (411.9 | ) |
Three Months Ended | |||||||||||||||
March 31, 2018 | |||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Pension Liability | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at December 31, 2017 | $ | (179.8 | ) | $ | (34.6 | ) | $ | (213.8 | ) | $ | (428.2 | ) | |||
Other comprehensive income/(loss) before reclassification adjustments | 26.8 | (240.4 | ) | — | (213.6 | ) | |||||||||
Tax effect | — | 53.4 | — | 53.4 | |||||||||||
Reclassification adjustments to net earnings | — | 0.2 | (A) | 2.3 | (B) | 2.5 | |||||||||
Tax effect | — | 0.1 | (0.6 | ) | (0.5 | ) | |||||||||
Reclassification to retained earnings (C) | — | (7.1 | ) | (35.2 | ) | (42.3 | ) | ||||||||
Balance at March 31, 2018 | $ | (153.0 | ) | $ | (228.4 | ) | $ | (247.3 | ) | $ | (628.7 | ) |
Nine Months Ended | |||||||||||||||
March 31, 2019 | |||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Pension Liability | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at June 30, 2018 | $ | (227.0 | ) | $ | (274.0 | ) | $ | (178.8 | ) | $ | (679.8 | ) | |||
Other comprehensive income/(loss) before reclassification adjustments | (49.9 | ) | 377.0 | — | 327.1 | ||||||||||
Tax effect | — | (84.8 | ) | — | (84.8 | ) | |||||||||
Reclassification adjustments to net earnings | — | 1.4 | (A) | 32.5 | (B) | 33.9 | |||||||||
Tax effect | — | (0.2 | ) | (8.1 | ) | (8.3 | ) | ||||||||
Balance at March 31, 2019 | $ | (276.9 | ) | $ | 19.4 | $ | (154.4 | ) | $ | (411.9 | ) |
Nine Months Ended | |||||||||||||||
March 31, 2018 | |||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Pension Liability | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at June 30, 2017 | $ | (234.8 | ) | $ | 68.3 | $ | (216.7 | ) | $ | (383.2 | ) | ||||
Other comprehensive income/(loss) before reclassification adjustments | 81.8 | (400.6 | ) | — | (318.8 | ) | |||||||||
Tax effect | — | 109.9 | — | 109.9 | |||||||||||
Reclassification adjustments to net earnings | — | 1.3 | (A) | 6.9 | (B) | 8.2 | |||||||||
Tax effect | — | (0.2 | ) | (2.3 | ) | (2.5 | ) | ||||||||
Reclassification to retained earnings (C) | — | (7.1 | ) | (35.2 | ) | (42.3 | ) | ||||||||
Balance at March 31, 2018 | $ | (153.0 | ) | $ | (228.4 | ) | $ | (247.3 | ) | $ | (628.7 | ) |
Revenues | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Employer Services | $ | 2,719.1 | $ | 2,628.5 | $ | 7,507.7 | $ | 7,105.7 | |||||||
PEO Services | 1,134.7 | 1,067.3 | 3,180.7 | 2,909.5 | |||||||||||
Other | (6.4 | ) | 0.2 | (11.9 | ) | (3.7 | ) | ||||||||
$ | 3,847.4 | $ | 3,696.0 | $ | 10,676.5 | $ | 10,011.5 |
Earnings before Income Taxes | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Employer Services | $ | 962.1 | $ | 870.1 | $ | 2,333.0 | $ | 1,988.4 | |||||||
PEO Services | 155.7 | 147.1 | 458.6 | 403.6 | |||||||||||
Other | (133.3 | ) | (142.0 | ) | (419.3 | ) | (364.3 | ) | |||||||
$ | 984.5 | $ | 875.2 | $ | 2,372.3 | $ | 2,027.7 |
• | Employer Services New Business Bookings increased 6% |
• | Average number of Worksite Employees increased 9% to 542,000 |
• | Revenues grew 7% |
• | EBIT Margin improved 200 basis points to 22.2% and Adjusted EBIT Margin improved 200 basis points to 23.3% |
• | Diluted earnings per share ("EPS") increased from $3.93 to $4.15; adjusted diluted earnings per share increased from $3.53 to $4.31 |
• | Our shareholder friendly actions continued as we returned approximately $950 million via dividends and approximately $760 million via share repurchases |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
March 31, | % Change | March 31, | % Change | ||||||||||||||||||||||||
2019 | 2018 | As Reported | Constant Currency Basis (Note 1) | 2019 | 2018 | As Reported | Constant Currency Basis (Note 1) | ||||||||||||||||||||
*As Restated | *As Restated | ||||||||||||||||||||||||||
Total revenues | $ | 3,847.4 | $ | 3,696.0 | 4 | % | 5 | % | $ | 10,676.5 | $ | 10,011.5 | 7 | % | 7 | % | |||||||||||
Costs of revenues: | |||||||||||||||||||||||||||
Operating expenses | 1,874.5 | 1,845.2 | 2 | % | 3 | % | 5,370.4 | 5,185.0 | 4 | % | 4 | % | |||||||||||||||
Systems development and programming costs | 160.1 | 163.9 | (2 | )% | — | % | 474.2 | 481.5 | (2 | )% | 1 | % | |||||||||||||||
Depreciation and amortization | 77.2 | 70.2 | 10 | % | 11 | % | 221.5 | 202.1 | 10 | % | 10 | % | |||||||||||||||
Total costs of revenues | 2,111.8 | 2,079.3 | 2 | % | 3 | % | 6,066.1 | 5,868.6 | 3 | % | 4 | % | |||||||||||||||
Selling, general and administrative expenses | 750.4 | 750.1 | — | % | 1 | % | 2,209.4 | 2,149.0 | 3 | % | 3 | % | |||||||||||||||
Interest expense | 21.7 | 18.6 | n/m | n/m | 96.2 | 74.1 | n/m | n/m | |||||||||||||||||||
Total expenses | 2,883.9 | 2,848.0 | 1 | % | 2 | % | 8,371.7 | 8,091.7 | 3 | % | 4 | % | |||||||||||||||
Other income, net | (21.0 | ) | (27.2 | ) | n/m | n/m | (67.5 | ) | (107.9 | ) | n/m | n/m | |||||||||||||||
Earnings before income taxes | $ | 984.5 | $ | 875.2 | 12 | % | 13 | % | $ | 2,372.3 | $ | 2,027.7 | 17 | % | 17 | % | |||||||||||
Margin | 25.6 | % | 23.7 | % | 22.2 | % | 20.3 | % | |||||||||||||||||||
Provision for income taxes | $ | 230.8 | $ | 214.2 | 8 | % | 8 | % | $ | 554.9 | $ | 283.7 | 96 | % | 96 | % | |||||||||||
Effective tax rate | 23.4 | % | 24.5 | % | 23.4 | % | 14.0 | % | |||||||||||||||||||
Net earnings | $ | 753.7 | $ | 661.0 | 14 | % | 14 | % | $ | 1,817.4 | $ | 1,744.0 | 4 | % | 4 | % | |||||||||||
Diluted earnings per share | $ | 1.73 | $ | 1.49 | 16 | % | 16 | % | $ | 4.15 | $ | 3.93 | 6 | % | 6 | % |
Adjusted Financial Measure | U.S. GAAP Measures |
Adjusted EBIT | Net earnings |
Adjusted provision for income taxes | Provision for income taxes |
Adjusted net earnings | Net earnings |
Adjusted diluted earnings per share | Diluted earnings per share |
Adjusted effective tax rate | Effective tax rate |
Constant Currency Basis | U.S. GAAP P&L line items |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
March 31, | % Change | March 31, | % Change | |||||||||||||||||||||||||
2019 | 2018 | As Reported | Constant Currency Basis (g) | 2019 | 2018 | As Reported | Constant Currency Basis (g) | |||||||||||||||||||||
*As Restated | *As Restated | |||||||||||||||||||||||||||
Net earnings | $ | 753.7 | $ | 661.0 | 14 | % | 14 | % | $ | 1,817.4 | $ | 1,744.0 | 4 | % | 4 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Provision for income taxes | 230.8 | 214.2 | 554.9 | 283.7 | ||||||||||||||||||||||||
All other interest expense (a) | 14.8 | 14.8 | 44.8 | 44.8 | ||||||||||||||||||||||||
All other interest income (a) | (8.7 | ) | (6.1 | ) | (22.9 | ) | (16.7 | ) | ||||||||||||||||||||
Transformation initiatives (b) | 22.8 | 39.7 | 92.3 | 39.7 | ||||||||||||||||||||||||
Proxy contest matters (c) | — | — | — | 33.2 | ||||||||||||||||||||||||
Adjusted EBIT | $ | 1,013.4 | $ | 923.6 | 10 | % | 10 | % | $ | 2,486.5 | $ | 2,128.7 | 17 | % | 17 | % | ||||||||||||
Adjusted EBIT Margin | 26.3 | % | 25.0 | % | 23.3 | % | 21.3 | % | ||||||||||||||||||||
Provision for income taxes | $ | 230.8 | $ | 214.2 | 8 | % | 8 | % | $ | 554.9 | $ | 283.7 | 96 | % | 96 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Income tax benefit for transformation initiatives (d) | 5.6 | 9.7 | 22.8 | 9.6 | ||||||||||||||||||||||||
Income tax benefit for proxy contest matters (d) | — | — | — | 10.4 | ||||||||||||||||||||||||
Tax Cuts and Jobs Act (e) | — | (4.5 | ) | 0.5 | 228.1 | |||||||||||||||||||||||
Adjusted provision for income taxes | $ | 236.4 | $ | 219.4 | 8 | % | 8 | % | $ | 578.2 | $ | 531.8 | 9 | % | 9 | % | ||||||||||||
Adjusted effective tax rate (f) | 23.5 | % | 24.0 | % | 23.5 | % | 25.3 | % | ||||||||||||||||||||
Net earnings | $ | 753.7 | $ | 661.0 | 14 | % | 14 | % | $ | 1,817.4 | $ | 1,744.0 | 4 | % | 4 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Transformation initiatives (b) | 22.8 | 39.7 | 92.3 | 39.7 | ||||||||||||||||||||||||
Income tax benefit for transformation initiatives (d) | (5.6 | ) | (9.7 | ) | (22.8 | ) | (9.6 | ) | ||||||||||||||||||||
Proxy contest matters (c) | — | — | — | 33.2 | ||||||||||||||||||||||||
Income tax benefit for proxy contest matters (d) | — | — | — | (10.4 | ) | |||||||||||||||||||||||
Tax Cuts and Jobs Act (e) | — | 4.5 | (0.5 | ) | (228.1 | ) | ||||||||||||||||||||||
Adjusted net earnings | $ | 770.9 | $ | 695.5 | 11 | % | 11 | % | $ | 1,886.4 | $ | 1,568.8 | 20 | % | 20 | % | ||||||||||||
Diluted EPS | $ | 1.73 | $ | 1.49 | 16 | % | 16 | % | $ | 4.15 | $ | 3.93 | 6 | % | 6 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Transformation initiatives (b) (d) | 0.04 | 0.07 | 0.16 | 0.07 | ||||||||||||||||||||||||
Proxy contest matters (c) (d) | — | — | — | 0.05 | ||||||||||||||||||||||||
Tax Cuts and Jobs Act (e) | — | 0.01 | — | (0.51 | ) | |||||||||||||||||||||||
Adjusted diluted EPS | $ | 1.77 | $ | 1.57 | 13 | % | 13 | % | $ | 4.31 | $ | 3.53 | 22 | % | 22 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2019 | 2018 | $ Change | 2019 | 2018 | $ Change | ||||||||||||||||||
Interest income on corporate funds | $ | (15.0 | ) | $ | (11.0 | ) | $ | 4.0 | $ | (71.6 | ) | $ | (59.4 | ) | $ | 12.2 | |||||||
Realized gains on available-for-sale securities | (0.6 | ) | (1.3 | ) | (0.7 | ) | (1.2 | ) | (1.9 | ) | (0.7 | ) | |||||||||||
Realized losses on available-for-sale securities | 0.5 | 1.6 | 1.1 | 2.6 | 3.2 | 0.6 | |||||||||||||||||
Impairment of intangible assets | — | — | — | 12.1 | — | (12.1 | ) | ||||||||||||||||
Gain on sale of assets | — | — | — | (4.1 | ) | (0.4 | ) | 3.7 | |||||||||||||||
Non-service components of pension expense, net | (5.9 | ) | (16.5 | ) | (10.6 | ) | (5.3 | ) | (49.4 | ) | (44.1 | ) | |||||||||||
Other income, net | $ | (21.0 | ) | $ | (27.2 | ) | $ | (6.2 | ) | $ | (67.5 | ) | $ | (107.9 | ) | $ | (40.4 | ) |
Revenues | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
March 31, | % Change | March 31, | % Change | ||||||||||||||||||||||||
2019 | 2018 | As Reported | Constant Currency Basis | 2019 | 2018 | As Reported | Constant Currency Basis | ||||||||||||||||||||
Employer Services | $ | 2,719.1 | $ | 2,628.5 | 3 | % | 5 | % | $ | 7,507.7 | $ | 7,105.7 | 6 | % | 7 | % | |||||||||||
PEO Services | 1,134.7 | 1,067.3 | 6 | % | 6 | % | 3,180.7 | 2,909.5 | 9 | % | 9 | % | |||||||||||||||
Other | (6.4 | ) | 0.2 | n/m | n/m | (11.9 | ) | (3.7 | ) | n/m | n/m | ||||||||||||||||
$ | 3,847.4 | $ | 3,696.0 | 4 | % | 5 | % | $ | 10,676.5 | $ | 10,011.5 | 7 | % | 7 | % |
Earnings before Income Taxes | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
March 31, | % Change | March 31, | % Change | ||||||||||||||||||||||||
2019 | 2018 | As Reported | Constant Currency Basis | 2019 | 2018 | As Reported | Constant Currency Basis | ||||||||||||||||||||
Employer Services | $ | 962.1 | $ | 870.1 | 11 | % | 11 | % | $ | 2,333.0 | $ | 1,988.4 | 17 | % | 17 | % | |||||||||||
PEO Services | 155.7 | 147.1 | 6 | % | 6 | % | 458.6 | 403.6 | 14 | % | 14 | % | |||||||||||||||
Other | (133.3 | ) | (142.0 | ) | n/m | n/m | (419.3 | ) | (364.3 | ) | n/m | n/m | |||||||||||||||
$ | 984.5 | $ | 875.2 | 12 | % | 13 | % | $ | 2,372.3 | $ | 2,027.7 | 17 | % | 17 | % |
Nine Months Ended | ||||||||||||
March 31, | ||||||||||||
2019 | 2018 | $ Change | ||||||||||
Cash provided by / (used in): | ||||||||||||
Operating activities | $ | 1,956.0 | $ | 1,810.0 | $ | 146.0 | ||||||
Investing activities | (1,197.9 | ) | (1,958.0 | ) | 760.1 | |||||||
Financing activities | 6,945.4 | 5,358.2 | 1,587.2 | |||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (34.1 | ) | 53.1 | (87.2 | ) | |||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 7,669.4 | $ | 5,263.3 | $ | 2,406.1 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Average investment balances at cost: | |||||||||||||||
Corporate investments | $ | 2,799.6 | $ | 2,976.0 | $ | 4,782.6 | $ | 5,082.3 | |||||||
Funds held for clients | 29,985.0 | 28,817.1 | 25,211.3 | 24,129.6 | |||||||||||
Total | $ | 32,784.6 | $ | 31,793.1 | $ | 29,993.9 | $ | 29,211.9 | |||||||
Average interest rates earned exclusive of realized (gains)/losses on: | |||||||||||||||
Corporate investments | 2.1 | % | 1.5 | % | 2.0 | % | 1.6 | % | |||||||
Funds held for clients | 2.2 | % | 1.9 | % | 2.2 | % | 1.9 | % | |||||||
Total | 2.2 | % | 1.8 | % | 2.2 | % | 1.8 | % | |||||||
Realized gains on available-for-sale securities | $ | (0.6 | ) | $ | (1.3 | ) | $ | (1.2 | ) | $ | (1.9 | ) | |||
Realized losses on available-for-sale securities | 0.5 | 1.6 | 2.6 | 3.2 | |||||||||||
Net realized (gains)/losses on available-for-sale securities | $ | (0.1 | ) | $ | 0.3 | $ | 1.4 | $ | 1.3 |
March 31, 2019 | June 30, 2018 | ||||||
Net unrealized pre-tax losses/(gains) on available-for-sale securities | $ | 22.7 | $ | (355.7 | ) | ||
Total available-for-sale securities at fair value | $ | 23,703.4 | $ | 22,776.2 |
Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of the Publicly Announced Common Stock Repurchase Plan (2) | Maximum Number of Shares that may yet be Purchased under the Common Stock Repurchase Plan (2) | ||||||||||
Period | |||||||||||||
January 1 to 31, 2019 | 1,045,093 | $ | 132.63 | 1,040,848 | 11,642,585 | ||||||||
February 1 to 28, 2019 | 298,829 | $ | 147.83 | 297,595 | 11,344,990 | ||||||||
March 1 to 31, 2019 | 284,902 | $ | 154.06 | 273,089 | 11,071,901 | ||||||||
Total | 1,628,824 | 1,611,532 |
Date of Approval | Shares |
August 2015 | 25 million |
Exhibit Number | Exhibit |
Offer Letter, dated as of March 1, 2019, between Automatic Data Processing, Inc. and Kathleen Winters | |
Separation Agreement and Release, dated April 29, 2019, by and between Jan Siegmund and Automatic Data Processing, Inc. | |
Certification by Carlos A. Rodriguez pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |
Certification by Kathleen A. Winters pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |
Certification by Carlos A. Rodriguez pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
Certification by Kathleen A. Winters pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | XBRL instance document |
101.SCH | XBRL taxonomy extension schema document |
101.CAL | XBRL taxonomy extension calculation linkbase document |
101.LAB | XBRL taxonomy label linkbase document |
101.PRE | XBRL taxonomy extension presentation linkbase document |
101.DEF | XBRL taxonomy extension definition linkbase document |
AUTOMATIC DATA PROCESSING, INC. (Registrant) | ||
Date: | May 3, 2019 | /s/ Kathleen A. Winters Kathleen A. Winters |
Chief Financial Officer (Title) |
Automatic Data Processing, Inc. One ADP Boulevard Roseland, New Jersey 07068-1728 (973) 974-5000 |
Base Salary: | Your annual salary will be $650,000 paid monthly. |
Management Bonus: Sign-On Bonus | Your management bonus will have a target of 150% of your annual base salary. For FY’19, your target bonus and bonus payout will be prorated based on your service during the fiscal year. Your bonus payout will be calculated based on performance against a set of objectives under the Officer bonus plan. You will be awarded a cash sign-on bonus of $1,250,000, payable six months after your effective start date. If you resign your employment with ADP without Good Reason (as defined in the ADP Officer Severance Plan) prior to the one year anniversary of your start date, such sign-on bonus shall be repaid in full to ADP. |
Time Based Restricted Stock: | You will receive a one-time, time-based restricted stock award with a grant value of $1,100,000 that will be granted on your start date. 50% of the shares will vest on the first anniversary of the grant date and the remaining 50% of the shares will vest on the second anniversary of the grant date, provided that you are employed at ADP on the respective vesting dates. The actual number of restricted shares granted will be determined by dividing the grant value by the ADP closing stock price on the grant date. |
Performance Stock Units (PSUs) & Stock Options: | Under the current equity guidelines, you are eligible to participate in ADP's equity program. Grants will be made in accordance with the program guidelines and governed by the terms and conditions of the ADP 2018 Omnibus Award Plan and the applicable award agreements. Equity awards are granted annually on September 1st and you must be employed with the Company on the grant date in order to receive an award. For FY’20, your total target equity award value will be $3,000,000 and will have a mix aligned to the Officer equity mix which under the current guidelines is 70% performance stock units (PSUs) and 30% stock options. Under the PSU program, if the performance objectives are achieved for the three-year performance period, you will receive shares of stock three years after the grant date, provided you are still employed at ADP. The actual number of PSUs is determined by dividing the grant value by the ADP closing stock price on the grant date. Stock options vest 25% on each of the first four anniversaries of the grant date provided you are employed at ADP on the vesting date. The actual number of stock options is determined by dividing the grant value by the fair value as determined by a third-party valuation firm using the binomial model. ADP’s executive compensation program, including the equity program and its associated guidelines, inclusive of eligibility rules and target award values are subject to the review and discretion of ADP’s Compensation Committee |
Separation Pay: | In the event you are involuntarily terminated from ADP under a Qualifying Termination, you will receive benefits under the Corporate Officer Severance Plan which includes 18 months of salary continuation, a prorated bonus and continued vesting in unvested equity awards for the 18 month severance period. The terms of the Corporate Officer Severance Plan are summarized on page 65 of ADP’s 2018 proxy statement. |
Change in Control: | In the event you terminate from ADP without Cause or for Good Reason during the two-year period following a Change in Control, you will receive benefits under the ADP Change in Control Severance Plan for Corporate Officers which includes 150% of your Total Annual Compensation as defined in the plan and the accelerated vesting of unvested equity awards. The terms of the Plan can be found on page 64 of ADP’s 2018 proxy statement and the current definition of “Change in Control” is available on page B-2 of the proxy statement. |
ADP ERP: | Participation in ADP’s Executive Retirement Program (Plan summary is attached). |
Stock Ownership Guidelines: | ADP believes that it is important that our Corporate Officers maintain a minimum level of ownership in the Company. As a grade B executive, this minimum level is equivalent to three-times your annual base rate of pay. Included in the calculation are any shares owned outright or beneficially owned by direct family members. Ownership status is measured as of July 1 of each fiscal year. Until you meet this level of ownership, you will be asked to retain at least 75% of post-tax net gains on stock option exercises and 75% of net shares received from the vesting of performance stock units and restricted stock until you achieve the minimum ownership level. All transactions in ADP securities are subject to the Company’s insider trading policy. In addition, ADP sponsors a 10b5-1 program for all Corporate Officers and strongly encourages participation in the program. |
Other Corporate Officer Programs: Other Compensation and Benefit Programs: | Participation in all other Corporate Officer programs (e.g., executive auto, matching gift program, executive retiree medical). Participation in all other ADP programs that are generally available to other ADP executives including: 401(k), deferred compensation, medical and health, life, accident, disability and other insurance programs. |
Vacation: | You will be entitled to four weeks of vacation plus an additional five personal days, each as accrued on a calendar year basis. |
EXECUTIVE By: /s/ Jan Siegmund | |
AUTOMATIC DATA PROCESSING, INC. By: /s/ Michael A. Bonarti, VP |
Signed: /s/ Jan Siegmund Printed Name: Jan Siegmund Date: 4/29/2019 |
Signed: /s/ Jan Siegmund Printed Name: Jan Siegmund Date: 4/29/2019 |
1. | I have reviewed this quarterly report on Form 10-Q of Automatic Data Processing, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 3, 2019 | /s/ Carlos A. Rodriguez |
Carlos A. Rodriguez | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Automatic Data Processing, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 3, 2019 | /s/ Kathleen A. Winters |
Kathleen A. Winters | ||
Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Date: | May 3, 2019 | /s/ Carlos A. Rodriguez |
Carlos A. Rodriguez | ||
President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Date: | May 3, 2019 | /s/ Kathleen A. Winters |
Kathleen A. Winters | ||
Chief Financial Officer |
Document And Entity Information - shares |
9 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 30, 2019 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Entity Registrant Name | AUTOMATIC DATA PROCESSING INC | |
Entity Central Index Key | 0000008670 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Common Stock, Shares Outstanding | 435,228,237 |
Statements of Consolidated Earnings - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
REVENUES: | ||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ 2,546.9 | $ 2,495.2 | $ 7,084.7 | $ 6,764.5 | ||
Interest on funds held for clients | 167.4 | 134.8 | 415.0 | 340.9 | ||
PEO revenues (A) | [1] | 1,133.1 | 1,066.0 | 3,176.8 | 2,906.1 | |
TOTAL REVENUES | 3,847.4 | 3,696.0 | 10,676.5 | 10,011.5 | ||
Costs of revenues: | ||||||
Operating expenses | 1,874.5 | 1,845.2 | 5,370.4 | 5,185.0 | ||
Systems development and programming costs | 160.1 | 163.9 | 474.2 | 481.5 | ||
Depreciation and amortization | 77.2 | 70.2 | 221.5 | 202.1 | ||
TOTAL COSTS OF REVENUES | 2,111.8 | 2,079.3 | 6,066.1 | 5,868.6 | ||
Selling, general, and administrative expenses | 750.4 | 750.1 | 2,209.4 | 2,149.0 | ||
Interest expense | 21.7 | 18.6 | 96.2 | 74.1 | ||
TOTAL EXPENSES | 2,883.9 | 2,848.0 | 8,371.7 | 8,091.7 | ||
Other income, net | (21.0) | (27.2) | (67.5) | (107.9) | ||
EARNINGS BEFORE INCOME TAXES | 984.5 | 875.2 | 2,372.3 | 2,027.7 | ||
Provision for income taxes | 230.8 | 214.2 | 554.9 | 283.7 | ||
NET EARNINGS | $ 753.7 | $ 661.0 | $ 1,817.4 | $ 1,744.0 | ||
BASIC EARNINGS PER SHARE (in US$ per share) | $ 1.74 | $ 1.50 | $ 4.17 | $ 3.95 | ||
DILUTED EARNINGS PER SHARE (in US$ per share) | $ 1.73 | $ 1.49 | $ 4.15 | $ 3.93 | ||
Basic weighted average shares outstanding (shares) | 434.1 | 441.0 | 435.5 | 441.5 | ||
Diluted weighted average shares outstanding (shares) | 436.6 | 443.4 | 438.1 | 444.1 | ||
Direct pass-through costs PEO revenues | $ 10,798.3 | $ 10,176.2 | $ 32,178.8 | $ 29,547.0 | ||
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Statements of Consolidated Earnings (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
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Income Statement [Abstract] | ||||
Direct pass-through costs PEO revenues | $ 10,798.3 | $ 10,176.2 | $ 32,178.8 | $ 29,547.0 |
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
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Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 753.7 | $ 661.0 | $ 1,817.4 | $ 1,744.0 |
Other comprehensive income/loss: | ||||
Currency translation adjustments | (2.3) | 26.8 | (49.9) | 81.8 |
Unrealized net gains/(losses) on available-for-sale securities | 259.0 | (240.4) | 377.0 | (400.6) |
Tax effect | (58.0) | 53.4 | (84.8) | 109.9 |
Reclassification of net (gain)/losses on available-for-sale securities to net earnings | (0.1) | 0.2 | 1.4 | 1.3 |
Tax effect | 0.0 | 0.1 | (0.2) | (0.2) |
Reclassification of pension liability adjustment to net earnings | 6.1 | 2.3 | 32.5 | 6.9 |
Tax effect | (1.6) | (0.6) | (8.1) | (2.3) |
Other comprehensive income/(loss), net of tax | 203.1 | (158.2) | 267.9 | (203.2) |
Comprehensive income | $ 956.8 | $ 502.8 | $ 2,085.3 | $ 1,540.8 |
Consolidated Balance Sheets (Parenthetical) - USD ($) |
Mar. 31, 2019 |
Jun. 30, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Commercial Paper | $ 0 | $ 0 |
Allowance for doubtful accounts - trade receivables - Current | 50,800,000 | 51,300,000 |
Allowance for doubtful accounts - trade receivables - Long-term | $ 500,000 | $ 500,000 |
Preferred stock, par value (in US$ per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 300,000 | 300,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in US$ per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 638,700,000 | 638,700,000 |
Common stock, shares outstanding (in shares) | 435,500,000 | 438,800,000 |
Treasury stock, (in shares) | 203,200,000 | 199,900,000 |
Statements of Consolidated Cash Flows - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
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Cash Flows from Operating Activities: | ||
Net earnings | $ 1,817.4 | $ 1,744.0 |
Adjustments to reconcile net earnings to cash flows provided by operating activities: | ||
Depreciation and amortization | 299.6 | 278.3 |
Amortization of deferred contract costs | 655.2 | 623.5 |
Deferred income taxes | 4.1 | (145.5) |
Stock-based compensation expense | 122.2 | 119.4 |
Net pension expense | 41.0 | 8.2 |
Net amortization of premiums and accretion of discounts on available-for-sale securities | 38.9 | 55.6 |
Impairment of intangible assets | 12.1 | 0.0 |
Other | 21.2 | 22.0 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Increase in accounts receivable | (526.7) | (239.3) |
Increase in other assets | (748.9) | (696.1) |
Increase / (decrease) in accounts payable | 25.4 | (31.1) |
Increase in accrued expenses and other liabilities | 194.5 | 71.0 |
Net cash flows provided by operating activities | 1,956.0 | 1,810.0 |
Cash Flows from Investing Activities: | ||
Purchases of corporate and client funds marketable securities | (2,725.8) | (3,692.7) |
Proceeds from the sales and maturities of corporate and client funds marketable securities | 2,090.6 | 2,702.5 |
Capital expenditures | (120.3) | (159.6) |
Additions to intangibles | (329.9) | (195.8) |
Acquisitions of businesses, net of cash acquired | (120.4) | (612.4) |
Proceeds from the sale of property, plant, and equipment | 7.9 | 0.0 |
Net cash flows used in investing activities | (1,197.9) | (1,958.0) |
Cash Flows from Financing Activities: | ||
Net increase in client funds obligations | 8,612.0 | 6,700.2 |
Payments of debt | (1.6) | (6.8) |
Repurchases of common stock | (760.6) | (596.2) |
Net proceeds from stock purchase plan and stock-based compensation plans | 50.5 | 46.1 |
Dividends paid | (949.6) | (785.1) |
Other | (5.3) | 0.0 |
Net cash flows (used in) / provided by financing activities | 6,945.4 | 5,358.2 |
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (34.1) | 53.1 |
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | 7,669.4 | 5,263.3 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 6,542.1 | 8,181.6 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | 14,211.5 | 13,444.9 |
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets | ||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 6,542.1 | 8,181.6 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 108.6 | 86.5 |
Cash paid for income taxes, net of income tax refunds | $ 437.7 | $ 423.0 |
Basis of Presentation |
9 Months Ended |
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Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Consolidated Financial Statements and footnotes thereto are unaudited. In the opinion of the Company’s management, the Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, that are necessary for a fair presentation of the Company’s interim financial results. The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees. The Company is the sole beneficial owner of the trust. The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”). The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and, therefore, consolidates the trust. Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 8, “Corporate Investments and Funds Held for Clients.” Restatements Effective July 1, 2018, certain prior period amounts have been restated to conform to the current period presentation in connection with the adoption of Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (ASC 606)” and ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost.” Also, in the first quarter of the fiscal year ending June 30, 2019 (“fiscal 2019”), the Company's chief operating decision maker (“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. Refer to Note 2 and Note 17 for additional information. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, expenses, and accumulated other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Interim financial results are not necessarily indicative of financial results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (“fiscal 2018”). |
New Accounting Pronouncements |
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New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements Effective July 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (ASC 606)” on a retrospective basis. ASU 2014-09 requires an entity to recognize revenue depicting the transfer of 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. ASU 2014-09 resulted in enhanced revenue-related disclosures. The standard primarily impacted the manner in which it treats certain costs to fulfill contracts (i.e., implementation costs) and costs to acquire new contracts (i.e., selling costs). The provisions of the new standard require the Company to capitalize and amortize additional implementation costs than those capitalized and amortized under previous U.S. GAAP. Under previous U.S. GAAP, the Company immediately expensed all selling expenses. The adoption of the provisions of the new standard did not materially impact the timing or amount of revenue the Company recognized and did not result in significant changes in its business processes or systems. Refer to Note 3 for further details. Refer to the table below for a summary of the restatements required, as a result of this change, on the Company's statements of consolidated earnings for the three and nine months ended March 31, 2018, consolidated balance sheets as of June 30, 2018, and consolidated cash flows for the nine months ended March 31, 2018. Effective July 1, 2018, the Company adopted ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost.” ASU 2017-07 requires reporting the service cost component in the same line item or items as other compensation costs arising during the period in the Statements of Consolidated Earnings. The other components of net periodic pension cost are required to be presented in the Statements of Consolidated Earnings separately from the service cost component. The Company retrospectively adopted the new standard, and as a result reclassified the non-service cost components of the net periodic benefit cost from within the respective line items of our Statements of Consolidated Earnings to Other income, net. Refer to the table below for a summary of the reclassification required, as a result of this change, on the Company's consolidated results of operations for the three and nine months ended March 31, 2018. The adoption of the new accounting rules only impacted the classification of expenses on the Statements of Consolidated Earnings and did not impact the Company’s consolidated earnings, balance sheets, or cash flows. Adoption of ASC 606 and ASU 2017-07 impacted the Company's prior period Statements of Consolidated Earnings, Consolidated Balance Sheets, and Consolidated Cash Flows as follows: Statements of Consolidated Earnings
Consolidated Balance Sheets
Statements of Consolidated Cash Flows
Effective October 1, 2018, the Company prospectively adopted ASU 2018-15, “Intangibles - Goodwill and Other-Internal-Use Software.” ASU 2018-15 clarifies and aligns the accounting and capitalization of implementation costs in cloud computing arrangements that are service arrangements with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40. The adoption of ASU 2018-15 did not have an impact on the Company’s consolidated results of operations, financial condition, or cash flows. In March 2018, the Company adopted ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Act”) from accumulated other comprehensive income to retained earnings. The Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive income and into retained earnings of $42.3 million. The Company's policy for releasing disproportionate income tax effects from AOCI utilizes the aggregate approach. Refer to Note 16 for additional detail regarding the components of the reclassification. The adoption of ASU 2018-02 did not have an impact on the Company's consolidated results of operations or cash flows. Recently Issued Accounting Pronouncements The following table summarizes recent ASU's issued by the Financial Accounting Standards Board ("FASB") that could have a material impact on the Company's consolidated results of operations, financial condition, or cash flows.
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three strategic pillars: U.S. Integrated HCM (“HCM”), HR Outsourcing (“HRO”), and Global with separate disaggregation for PEO benefits pass-through revenues and Client Fund Interest revenues. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. HCM provides a suite of product offerings that assist employers of all types and sizes in all stages of the employment cycle, from recruitment to retirement. Global is generally consistent with the types of services provided within HCM but represent geographies outside of the United States and includes our multinational offerings. HCM and Global revenues are primarily attributable to fees for providing solutions for payroll, benefits, talent, retirement services and HR processing and fees charged to implement the Company's solutions for clients. HRO provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers’ compensation insurance, and administering state unemployment insurance, among other human resources functions. This revenue is primarily driven by the Professional Employer Organization Services (“PEO”). Amounts collected from PEO worksite employers include payroll, fees for benefits, and an administrative fee that also includes payroll taxes, fees for workers’ compensation and state unemployment taxes. The payroll and payroll taxes collected from the worksite employers are presented in revenue net, as the Company does not retain risk and acts as an agent with respect to this aspect of the PEO arrangement. With respect to the payroll and payroll taxes, the worksite employer is primarily responsible for providing the service and has discretion in establishing wages. The fees collected from the worksite employers for benefits (i.e., PEO benefits pass-throughs), workers’ compensation and state unemployment taxes are presented in revenues and the associated costs of benefits, workers’ compensation and state unemployment taxes are included in operating expenses, as the Company acts as a principal with respect to this aspect of the arrangement. With respect to these fees, the Company is primarily responsible for fulfilling the service and has discretion in establishing price. The Company has further disaggregated HRO to separate out its PEO benefits pass-through revenues. The Company enters into service agreements with clients that include anywhere from one service to a full suite of services. The Company’s agreements vary in duration having a legally enforceable term of 30 days to 5 years. The performance obligations in the agreements are generally combined into one performance obligation, as they are considered a series of distinct services, and are satisfied over time because the client simultaneously receives and consumes the benefits provided as the Company performs the services. The Company uses the output method based on a fixed fee per employee serviced to recognize revenue, as the value to the client of the goods or services transferred to date (e.g., number of payees or number of payrolls processed) appropriately depicts our performance towards complete satisfaction of the performance obligation. The fees are typically billed in the period in which services are performed. The Company recognizes client fund interest revenues on collected but not yet remitted funds held for clients in revenues as earned, as the collection, holding and remittance of these funds are critical components of providing these services. Collection of consideration the Company expects to receive typically occurs within 30 to 60 days of billing. We assess the collectability of revenues based primarily on the creditworthiness of the client as determined by credit checks and analysis, as well as the client's payment history. The following tables provide details of revenue by our strategic pillars with disaggregation for PEO benefits pass-throughs and client fund interest, and includes a reconciliation to the Company’s reportable segments (in millions):
Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2019:
Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2018:
Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2019:
Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2018:
Contract Balances The timing of revenue recognition for our HCM, Global and HRO services is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing. Set up fees received from certain clients to implement the Company's solutions are considered a material right. Therefore, the Company defers revenue associated with these set up fees and records them over the period in which such clients are expected to benefit from the material right, which is approximately five to seven years. Changes in deferred revenue related to set up fees for the nine months ended March 31, 2019 were as follows:
Deferred costs Incremental Costs of Obtaining a Contract Incremental costs of obtaining a contract (e.g., sales commissions) that are expected to be recovered are capitalized and amortized on a straight-line basis over a period of three to eight years, depending on the Company's business unit. Expected renewal periods are only included in the expected client relationship period if commission amounts paid upon renewal are not commensurate with commission amounts paid on the initial contract. Incremental costs of obtaining a contract include only those costs the Company incurs to obtain a contract that it would not have incurred if the contract had not been obtained. These costs are included in selling, general and administrative expenses. Costs to fulfill a Contract The Company capitalizes costs incurred to fulfill its contracts that i) relate directly to the contract, ii) are expected to generate resources that will be used to satisfy the Company’s performance obligations under the contract and iii) are expected to be recovered through revenue generated under the contract. Costs incurred to implement clients on our solutions (e.g., direct labor) are capitalized and amortized on a straight-line basis over the expected client relationship period if the Company expects to recover those costs. The expected client relationship period ranges from three to eight years. These costs are included in operating expenses. The Company has estimated the amortization periods for the deferred costs by using its historical retention by business unit to estimate the pattern during which the service transfers. Deferred costs are periodically reviewed for impairment. There were no impairment losses incurred during the period. The balance is as follows:
(1) The amount of total deferred costs amortized during the three and nine months ended March 31, 2019 and March 31, 2018, were $220.6 million and $655.2 million, and $211.2 million and $623.5 million, respectively. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions In October 2017, the Company acquired 100% of the outstanding shares of Global Cash Card, Inc. (“GCC”), a leader in digital payments, including paycards and other electronic accounts, for approximately $490 million in cash, net of cash acquired. The acquisition of GCC makes ADP the only human capital management provider with a proprietary digital payments processing platform. The results of GCC are reported within the Company’s Employer Services segment. The final purchase price allocation for GCC is as follows:
The Company determined the purchase price allocations for this acquisition based on estimates of the fair value of tangible and intangible assets acquired and liabilities assumed, utilizing recognized valuation techniques, including the income and market approaches. The goodwill recorded as a result of the GCC transaction represents future economic benefits we expect to achieve as a result of the acquisition and expected cost synergies. None of the goodwill resulting from the acquisition is tax deductible. Intangible assets for GCC, which totaled $132.5 million, included technology and software, and customer contracts and lists which are being amortized over a weighted average life of approximately 8 years. In January 2018, the Company acquired 100% of the outstanding shares of Work Market, Inc. (“WorkMarket”), a leading provider of cloud-based freelance management solutions, for approximately $125 million in cash. In July 2018, the Company acquired 100% of outstanding shares of Celergo Holdings, Inc. (“Celergo”), a leading provider of multi-country payroll management services. These acquisitions, individually or in aggregate, were not material to the Company's results of operations, financial position, or cash flows and, therefore, the pro forma impact of these acquisitions is not presented. The results of these acquisitions are reported within the Company’s Employer Services segment. |
Service Alignment Initiative |
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Service Alignment Initiative | Service Alignment Initiative On July 28, 2016, the Company announced a Service Alignment Initiative that simplified the Company's service organization by aligning the Company's service operations to its strategic platforms and locations. In fiscal 2016, the Company entered into leases in Norfolk, Virginia and Maitland, Florida, and in fiscal 2017, the Company entered into a lease in Tempe, Arizona as part of this effort. The Company began incurring charges during the first quarter of fiscal 2017. The charges primarily relate to employee separation benefits recognized under ASC 712, and also include charges for the relocation of certain current Company employees, lease termination costs, and accelerated depreciation of fixed assets. The Company does not expect to recognize any additional significant pre-tax restructuring charges related to the Service Alignment Initiative. The table below summarizes the composition of the Company's Service Alignment Initiative (reversals)/charges:
(a) - Net (reversals)/charges are recorded in selling, general and administrative expenses on the Statements of Consolidated Earnings. (b) - Other initiative costs include costs to relocate certain current Company employees to new locations, lease termination charges (both included within selling, general and administrative expenses on the Statements of Consolidated Earnings), and accelerated depreciation on fixed assets (included within depreciation and amortization on the Statements of Consolidated Earnings). (c) - During the nine months ended March 31, 2019, the Company sold assets in relation to the Service Alignment Initiative, and as a result recorded a gain of $4.1 million in Other income, net, on the Statement of Consolidated Earnings. Refer to Note 7. (d) - All charges are included within the Other segment. Activity for the Service Alignment Initiative liability for the nine months ended March 31, 2019 and March 31, 2018, respectively, was as follows:
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Earnings per Share (EPS) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share (EPS) | Earnings per Share (“EPS”)
Options to purchase 0.8 million and 1.1 million shares of common stock for the three months ended March 31, 2019 and 2018, respectively, and 0.6 million and 0.9 million shares of common stock for the nine months ended March 31, 2019 and 2018, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Other Income, Net |
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Other Income, Net | Other Income, Net
The charges within non-service components of pension expense, net include $7.8 million and $35.9 million of non-cash settlement charges and of special termination benefits related to the Voluntary Early Retirement Program (“VERP”), for the three and nine months ended March 31, 2019, respectively, partially offset by $13.7 million and $41.2 million related to other components of net periodic pension cost for the three and nine months ended March 31, 2019, respectively. Refer to Note 2 and Note 12 for further information. During the three months ended September 30, 2018, the Company wrote down $12.1 million of internally developed software which was determined to have no future use due to redundant software identified as part of a recent acquisition. During the three months ended December 31, 2018, the Company sold assets in relation to the Service Alignment Initiative and, as a result, recorded a gain of $4.1 million in Other income, net, on the Statement of Consolidated Earnings. |
Corporate Investments and Funds Held For Clients |
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Corporate Investments And Funds Held For Clients [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments and Funds Held For Clients | Corporate Investments and Funds Held for Clients Corporate investments and funds held for clients at March 31, 2019 and June 30, 2018 were as follows:
(A) Included within available-for-sale securities are corporate investments with fair values of $10.5 million and funds held for clients with fair values of $23,692.9 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.
(B) Included within available-for-sale securities are corporate investments with fair values of $10.5 million and funds held for clients with fair values of $22,765.7 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2018. The Company did not transfer any assets between Levels during the nine months ended March 31, 2019 or fiscal 2018. In addition, the Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company had no available-for-sale securities included in Level 1 or Level 3 at March 31, 2019. The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of March 31, 2019, are as follows:
The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2018, are as follows:
At March 31, 2019, Corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carry credit ratings of A and above, and have maturities ranging from April 2019 through November 2028. At March 31, 2019, asset-backed securities include AAA rated senior tranches of securities with predominantly prime collateral of fixed-rate credit card, auto loan, equipment lease, and rate reduction receivables with fair values of $1,957.9 million, $1,940.0 million, $489.5 million, and $175.8 million, respectively. These securities are collateralized by the cash flows of the underlying pools of receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through March 31, 2019. At March 31, 2019, U.S. government agency securities primarily include debt directly issued by Federal Home Loan Banks and Federal Farm Credit Banks with fair values of $1,798.0 million and $656.1 million, respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's, and AA+ by Standard & Poor's, with maturities ranging from May 2019 through January 2029. At March 31, 2019, other securities and their fair value primarily include U.S. government agency commercial mortgage-backed securities of $398.5 million issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association, Aa2 rated United Kingdom Gilt securities of $198.9 million, AAA and AA rated supranational bonds of $117.9 million, and AAA and AA rated sovereign bonds of $77.8 million. Classification of corporate investments on the Consolidated Balance Sheets is as follows:
(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets. (b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets. Funds held for clients have been invested in the following categories:
Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax, and other payee payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling $36,055.6 million and $27,493.5 million at March 31, 2019 and June 30, 2018, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purpose of satisfying the client funds obligations. Of the Company’s funds held for clients at March 31, 2019 and June 30, 2018, $32,528.8 million and $24,242.9 million, respectively, are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and eliminate in consolidation. The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows. The Company has reported the cash and cash equivalents related to client funds investments with original maturities of ninety days or less, within the beginning and ending balances of cash, cash equivalents, restricted cash, and restricted cash equivalents. These amounts have been reconciled to the Consolidated Balance Sheets on the Statements of Consolidated Cash Flows. The Company has reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows. Approximately 80% of the available-for-sale securities held a AAA or AA rating at March 31, 2019, as rated by Moody's, Standard & Poor's, DBRS for Canadian dollar denominated securities, and Fitch for asset-backed and commercial mortgage backed securities. All available-for-sale securities were rated as investment grade at March 31, 2019. Expected maturities of available-for-sale securities at March 31, 2019 are as follows:
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Goodwill and Intangible Assets, net |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangibles Assets, net | Goodwill and Intangibles Assets, net Changes in goodwill for the nine months ended March 31, 2019 are as follows:
Components of intangible assets, net, are as follows:
Other intangibles consist primarily of purchased rights, trademarks and trade names (acquired directly or through acquisitions). All intangible assets have finite lives and, as such, are subject to amortization. The weighted average remaining useful life of the intangible assets is 6 years (5 years for software and software licenses, 6 years for customer contracts and lists, and 5 years for other intangibles). Amortization of intangible assets was $57.1 million and $52.0 million for the three months ended March 31, 2019 and 2018, respectively, and $166.0 million and $150.4 million for the nine months ended March 31, 2019 and 2018, respectively. Estimated future amortization expenses of the Company's existing intangible assets are as follows:
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Short-term Financing |
9 Months Ended |
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Mar. 31, 2019 | |
Short-Term Financing [Abstract] | |
Short-term Financing | Short-term Financing The Company has a $3.8 billion, 364-day credit agreement that matures in June 2019 with a one year term-out option. The Company also has a $2.25 billion five year credit facility that matures in June 2022 that also contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. In addition, the Company has a five year $3.75 billion credit facility maturing in June 2023 that contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. The interest rate applicable to committed borrowings is tied to LIBOR, the effective federal funds rate, or the prime rate, depending on the notification provided by the Company to the syndicated financial institutions prior to borrowing. The Company is also required to pay facility fees on the credit agreements. The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary. The Company had no borrowings through March 31, 2019 under the credit agreements. The Company's U.S. short-term funding requirements related to client funds are sometimes obtained on an unsecured basis through the issuance of commercial paper, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. This commercial paper program provides for the issuance of up to $9.8 billion in aggregate maturity value. The Company’s commercial paper program is rated A-1+ by Standard & Poor’s and Prime-1 by Moody’s. These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from overnight to up to 364 days. At March 31, 2019 and June 30, 2018, the Company had no commercial paper borrowing outstanding. For the three months ended March 31, 2019 and 2018, the Company had average daily borrowings of $1.1 billion and $1.0 billion, respectively, at weighted average interest rates of 2.4% and 1.5%, respectively. For the nine months ended March 31, 2019 and 2018, the Company had average daily borrowings of $2.9 billion and $2.8 billion, respectively, at weighted average interest rates of 2.2% and 1.2%, respectively. The weighted average maturity of the Company’s commercial paper during the three and nine months ended March 31, 2019 was approximately one day and two days, respectively. The Company’s U.S., Canadian and United Kingdom short-term funding requirements related to client funds obligations are sometimes obtained on a secured basis through the use of reverse repurchase agreements, which are collateralized principally by government and government agency securities, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. These agreements generally have terms ranging from overnight to up to five business days. At March 31, 2019 and June 30, 2018, there were no outstanding obligations related to reverse repurchase agreements. For the three months ended March 31, 2019 and 2018, the Company had average outstanding balances under reverse repurchase agreements of $93.1 million and $99.0 million, respectively, at weighted average interest rates of 1.8% and 1.2%, respectively. For the nine months ended March 31, 2019 and 2018, the Company had average outstanding balances under reverse repurchase agreements of $306.1 million and $389.5 million, respectively, at weighted average interest rates of 1.8% and 1.1%, respectively. |
Long-term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term Debt The Company has fixed-rate notes with 5-year and 10-year maturities for an aggregate principal amount of $2.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually. The principal amounts and associated effective interest rates of the Notes and other debt as of March 31, 2019 and June 30, 2018, are as follows:
The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs. As of March 31, 2019, the fair value of the Notes, based on Level 2 inputs, was $2,028.5 million. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2018. |
Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | Pension Plans The components of net pension expense were as follows:
In fiscal 2018, the Company offered a Voluntary Early Retirement Program (“VERP”) to certain eligible U.S.-based associates aged 55 or above with at least 10 years of service. The early retirement offer was made to about 3,500 eligible associates, or approximately 6 percent of the Company’s workforce, with approximately 2,200 ADP associates opting to participate. The Company also extended to all employees participating in VERP the opportunity to continue health care coverage at active employee contribution rates for up to 24 months following retirement. The Company recorded $2.2 million and $23.6 million of expenses within selling, general, and administrative expenses related to the continuing health coverage for VERP participants who exited the Company during the three and nine months ended March 31, 2019, respectively. The Company does not expect to record material charges for the remainder of fiscal 2019. In addition, for the three and nine months ended March 31, 2019, the Company recorded $7.8 million and $35.9 million of non-cash settlement charges and of special termination benefits, respectively. The Company does not expect to record material charges for the remainder of fiscal 2019, within Other income, net, on the Statements of Consolidated Earnings. |
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Stock-Based Compensation Plans | Stock-based Compensation Plans The Company's share-based compensation consists of stock options, time-based restricted stock, time-based restricted stock units, performance-based restricted stock, and performance-based restricted stock units. The Company also offers an employee stock purchase plan for eligible employees. The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase programs. The Company repurchased 1.6 million and 1.7 million shares in the three months ended March 31, 2019 and 2018, respectively, and repurchased 5.4 million and 5.3 million shares in the nine months ended March 31, 2019 and 2018, respectively. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions. The following table represents pre-tax stock-based compensation expense for the three and nine months ended March 31, 2019 and 2018, respectively:
Beginning September 1, 2018, time-based restricted stock and time-based restricted stock units granted generally vest ratably over 3 years. Performance-based restricted stock and performance-based restricted stock units granted generally vest over a one to three-year performance period and a subsequent service period of up to 38 months. The methods and assumptions used in the determination of the fair value of stock-based awards are generally consistent with those described in the Company's Form 10-K for fiscal 2018 other than the change noted above. See the Company's Form 10-K for fiscal 2018 for a detailed description of the Company's stock-based compensation awards and employee stock purchase plan, including information related to vesting terms, service and performance conditions, payout percentages, and process for estimating the fair value of stock options granted. |
Income Taxes |
9 Months Ended |
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Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended March 31, 2019 and 2018 was 23.4% and 24.5%, respectively. The decrease in the effective tax rate is primarily due to the reduction in the federal corporate statutory tax rate to 21% from our blended rate for fiscal 2018 of 28.1% as a result of the Act, partially offset by the loss of qualified production activities tax deductions as a result of the Act in the three months ended March 31, 2019, the release of reserves for uncertain tax positions and the benefit of a tax accounting method change filed with the Internal Revenue Service in the three months ended March 31, 2018. The effective tax rate for the nine months ended March 31, 2019 and 2018 was 23.4% and 14.0%, respectively. The increase in the effective tax rate is primarily due to the one-time benefit recognized on the re-measurement of deferred tax balances, primarily as a result of ASC 606, using the lower tax rates enacted under the Act, the release of reserves for uncertain tax positions during the nine months ended March 31, 2018 and the loss of qualified production activities tax deductions as a result of the Act during the nine months ended March 31, 2019. This is partially offset by reduction in the federal corporate statutory tax rate to 21% from our blended rate for fiscal 2018 of 28.1% as a result of the Act. The Act reduced the U.S. federal corporate income tax rate from 35% to 21%. In accordance with ASC 740, companies re-measured deferred tax balances using the new enacted tax rates. The Act required the Company to pay a one-time transition tax on earnings of the Company's foreign subsidiaries that were previously tax deferred for U.S. income taxes and creates new taxes on the Company's foreign sourced earnings. At December 31, 2018, the Company has completed its accounting for all of the income tax effects of the Act. The adjustments were as follows: The Act’s foreign tax credit provisions may limit the Company’s ability to utilize existing foreign tax credits in future periods, accordingly, we have estimated that approximately $19.2 million could expire unutilized. During fiscal 2018, the Company recorded $28.3 million related to foreign withholding taxes on future distributions of earnings and profits (“E&P”) that may not be utilizable as foreign tax credits. During fiscal 2018, the Company recorded a benefit of $253.3 million (restated for ASC 606) to account for the effects of the rate change on deferred tax balances. The one-time transition tax is based on the total post-1986 E&P that was previously deferred from U.S. income taxes. During fiscal 2018, the Company recorded an amount for the one-time transition tax liability of $22.9 million for the Company's foreign subsidiaries. Since June 30, 2018, the Company made no significant adjustments to the amounts recorded during the measurement period. |
Commitments and Contingencies |
9 Months Ended |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In June 2018, a potential class action complaint was filed against ADP in the Circuit Court of Cook County, Illinois. The complaint asserts that ADP violated the Illinois Biometric Privacy Act, was negligent and unjustly enriched itself in connection with its collection, use and storage of biometric data of employees of its clients who are residents of Illinois in connection with certain services provided by ADP to clients in Illinois. The complaint seeks statutory and other unspecified monetary damages, injunctive relief and attorney’s fees. In addition, similar potential class action complaints have been filed in Illinois state courts against ADP and/or certain of its clients with respect to the collection, use and storage of biometric data of the employees of these clients. All of these claims are still in their earliest stages and the Company is unable to estimate any reasonably possible loss, or range of loss, with respect to these matters. The Company intends to vigorously defend against these lawsuits. The Company is subject to various claims, litigation and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. Management currently believes that the resolution of these claims, litigation and regulatory compliance matters against us, individually or in the aggregate, will not have a material adverse impact on our consolidated results of operations, financial condition or cash flows. These matters are subject to inherent uncertainties and management's view of these matters may change in the future. It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material losses related to such representations and warranties. |
Stockholders' Equity |
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Stockholders' Equity Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity Changes in stockholders' equity by component are as follows:
(A) During the quarter ended March 31, 2018, the Company adopted ASU 2018-02 and reclassified stranded tax effects attributable to the Act from AOCI to retained earnings. The March 31, 2018 Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive income into retained earnings (see Note 2). |
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) |
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Reclassification out of Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) | Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”) Changes in AOCI by component are as follows:
(A) Reclassification adjustments out of AOCI are included within Other income, net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension expense (see Note 12). (C) During the quarter ended March 31, 2018, the Company adopted ASU 2018-02 and reclassified stranded tax effects attributable to the Act from AOCI to retained earnings. The March 31, 2018 Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive income into retained earnings (see Note 2). |
Interim Financial Data by Segment |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interim Financial Data by Segment | Interim Financial Data by Segment Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. The primary components of the “Other” segment are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, 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:
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New Accounting Pronouncements (Tables) |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Statements of Consolidated Earnings
Consolidated Balance Sheets
Statements of Consolidated Cash Flows
Effective October 1, 2018, the Company prospectively adopted ASU 2018-15, “Intangibles - Goodwill and Other-Internal-Use Software.” ASU 2018-15 clarifies and aligns the accounting and capitalization of implementation costs in cloud computing arrangements that are service arrangements with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40. The adoption of ASU 2018-15 did not have an impact on the Company’s consolidated results of operations, financial condition, or cash flows. In March 2018, the Company adopted ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Act”) from accumulated other comprehensive income to retained earnings. The Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive income and into retained earnings of $42.3 million. The Company's policy for releasing disproportionate income tax effects from AOCI utilizes the aggregate approach. Refer to Note 16 for additional detail regarding the components of the reclassification. The adoption of ASU 2018-02 did not have an impact on the Company's consolidated results of operations or cash flows. Recently Issued Accounting Pronouncements The following table summarizes recent ASU's issued by the Financial Accounting Standards Board ("FASB") that could have a material impact on the Company's consolidated results of operations, financial condition, or cash flows.
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2019:
Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2018:
Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2019:
Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2018:
The following tables provide details of revenue by our strategic pillars with disaggregation for PEO benefits pass-throughs and client fund interest, and includes a reconciliation to the Company’s reportable segments (in millions):
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Contract with Customer, Liability | Changes in deferred revenue related to set up fees for the nine months ended March 31, 2019 were as follows:
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Capitalized Contract Cost | The balance is as follows:
(1) The amount of total deferred costs amortized during the three and nine months ended March 31, 2019 and March 31, 2018, were $220.6 million and $655.2 million, and $211.2 million and $623.5 million, respectively. |
Acquisitions (Tables) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Business Combination | The final purchase price allocation for GCC is as follows:
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Service Alignment Initiative (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The table below summarizes the composition of the Company's Service Alignment Initiative (reversals)/charges:
(a) - Net (reversals)/charges are recorded in selling, general and administrative expenses on the Statements of Consolidated Earnings. (b) - Other initiative costs include costs to relocate certain current Company employees to new locations, lease termination charges (both included within selling, general and administrative expenses on the Statements of Consolidated Earnings), and accelerated depreciation on fixed assets (included within depreciation and amortization on the Statements of Consolidated Earnings). (c) - During the nine months ended March 31, 2019, the Company sold assets in relation to the Service Alignment Initiative, and as a result recorded a gain of $4.1 million in Other income, net, on the Statement of Consolidated Earnings. Refer to Note 7. (d) - All charges are included within the Other segment. Activity for the Service Alignment Initiative liability for the nine months ended March 31, 2019 and March 31, 2018, respectively, was as follows:
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Earnings per Share (EPS) (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted |
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Other Income, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income, net |
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Corporate Investments and Funds Held For Clients (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments And Funds Held For Clients [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | Corporate investments and funds held for clients at March 31, 2019 and June 30, 2018 were as follows:
(A) Included within available-for-sale securities are corporate investments with fair values of $10.5 million and funds held for clients with fair values of $23,692.9 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.
(B) Included within available-for-sale securities are corporate investments with fair values of $10.5 million and funds held for clients with fair values of $22,765.7 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
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Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of March 31, 2019, are as follows:
The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2018, are as follows:
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Classification Of Corporate Investments On The Consolidated Balance Sheets | Classification of corporate investments on the Consolidated Balance Sheets is as follows:
(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets. (b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. |
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Schedule Of Investment Of Funds Held For Clients | Funds held for clients have been invested in the following categories:
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Expected Maturities Of Available-For-Sale Securities | Expected maturities of available-for-sale securities at March 31, 2019 are as follows:
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Goodwill and Intangibles Assets, net (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes In Goodwill | Changes in goodwill for the nine months ended March 31, 2019 are as follows:
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Components Of Finite-Lived Intangible Assets | Components of intangible assets, net, are as follows:
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Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expenses of the Company's existing intangible assets are as follows:
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Long-term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long Term Debt | The principal amounts and associated effective interest rates of the Notes and other debt as of March 31, 2019 and June 30, 2018, are as follows:
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Employee Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Stock-Based Compensation Expense | The following table represents pre-tax stock-based compensation expense for the three and nine months ended March 31, 2019 and 2018, respectively:
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Schedule of Net Benefit Costs | The components of net pension expense were as follows:
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Stockholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stockholders' Equity Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Stockholders' Equity | Changes in stockholders' equity by component are as follows:
|
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Changes in AOCI by component are as follows:
(A) Reclassification adjustments out of AOCI are included within Other income, net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension expense (see Note 12). (C) During the quarter ended March 31, 2018, the Company adopted ASU 2018-02 and reclassified stranded tax effects attributable to the Act from AOCI to retained earnings. The March 31, 2018 Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive income into retained earnings (see Note 2). |
Interim Financial Data by Segment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Segment Results:
|
New Accounting Pronouncements (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Jul. 01, 2019 |
Jun. 30, 2018 |
|||||||
Statements of Consolidated Earnings | ||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ 2,546.9 | $ 2,495.2 | $ 7,084.7 | $ 6,764.5 | ||||||||
Interest on funds held for clients | 167.4 | 134.8 | 415.0 | 340.9 | ||||||||
PEO revenues (A) | [1] | 1,133.1 | 1,066.0 | 3,176.8 | 2,906.1 | |||||||
TOTAL REVENUES | 3,847.4 | 3,696.0 | 10,676.5 | 10,011.5 | ||||||||
Operating expenses | 1,874.5 | 1,845.2 | 5,370.4 | 5,185.0 | ||||||||
Systems development and programming costs | 160.1 | 163.9 | 474.2 | 481.5 | ||||||||
Depreciation and amortization | 77.2 | 70.2 | 221.5 | 202.1 | ||||||||
Selling, general, and administrative expenses | 750.4 | 750.1 | 2,209.4 | 2,149.0 | ||||||||
Interest expense | 21.7 | 18.6 | 96.2 | 74.1 | ||||||||
TOTAL EXPENSES | 2,883.9 | 2,848.0 | 8,371.7 | 8,091.7 | ||||||||
Other income, net | (21.0) | (27.2) | (67.5) | (107.9) | ||||||||
EARNINGS BEFORE INCOME TAXES | 984.5 | 875.2 | 2,372.3 | 2,027.7 | ||||||||
Provision for income taxes | 230.8 | 214.2 | 554.9 | 283.7 | ||||||||
NET EARNINGS | 753.7 | 661.0 | 1,817.4 | 1,744.0 | ||||||||
Consolidated Balance Sheets | ||||||||||||
Other current assets | 534.4 | 534.4 | $ 531.3 | |||||||||
Total current assets | 40,924.0 | 40,924.0 | 31,823.3 | |||||||||
Deferred contract costs | 2,361.6 | [2] | 2,361.6 | [2] | 2,377.4 | |||||||
Other assets | 740.3 | 740.3 | 699.3 | |||||||||
Total assets | 48,196.3 | 48,196.3 | 38,849.1 | |||||||||
Short-term deferred revenues | 228.3 | 228.3 | 225.7 | |||||||||
Total current liabilities | 39,166.0 | 39,166.0 | 30,412.7 | |||||||||
Deferred income taxes | 615.8 | 615.8 | 522.0 | |||||||||
Long-term deferred revenues | 406.2 | 406.2 | 448.1 | |||||||||
Total liabilities | 42,950.1 | 42,950.1 | 34,113.2 | |||||||||
Retained earnings | 17,368.6 | 17,368.6 | 16,546.6 | |||||||||
Total stockholders’ equity | 5,246.2 | 5,246.2 | 4,735.9 | |||||||||
Total liabilities and stockholders’ equity | 48,196.3 | 48,196.3 | 38,849.1 | |||||||||
Statements of Consolidated Cash Flows | ||||||||||||
Net earnings | 753.7 | 661.0 | 1,817.4 | 1,744.0 | ||||||||
Amortization of deferred contract costs | 220.6 | 211.2 | 655.2 | 623.5 | ||||||||
Deferred income taxes | 4.1 | (145.5) | ||||||||||
Increase in other assets | (748.9) | (696.1) | ||||||||||
Increase in accrued expenses and other liabilities | 194.5 | 71.0 | ||||||||||
Net cash flows provided by operating activities | 1,956.0 | 1,810.0 | ||||||||||
Reclassification of Stranded Tax Effect | ||||||||||||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 0.0 | 0.0 | ||||||||||
As Previously Reported | ||||||||||||
Statements of Consolidated Earnings | ||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | 2,492.9 | 6,762.7 | ||||||||||
Interest on funds held for clients | 134.8 | 340.9 | ||||||||||
PEO revenues (A) | 1,065.3 | 2,903.6 | ||||||||||
TOTAL REVENUES | 3,693.0 | 10,007.2 | ||||||||||
Operating expenses | 1,844.7 | 5,210.6 | ||||||||||
Systems development and programming costs | 162.5 | 477.6 | ||||||||||
Depreciation and amortization | 70.2 | 202.1 | ||||||||||
Selling, general, and administrative expenses | 755.1 | 2,134.8 | ||||||||||
Interest expense | 18.6 | 74.1 | ||||||||||
TOTAL EXPENSES | 2,851.1 | 8,099.2 | ||||||||||
Other income, net | (10.7) | (58.5) | ||||||||||
EARNINGS BEFORE INCOME TAXES | 852.6 | 1,966.5 | ||||||||||
Provision for income taxes | 209.5 | 454.4 | ||||||||||
NET EARNINGS | 643.1 | 1,512.1 | ||||||||||
Consolidated Balance Sheets | ||||||||||||
Other current assets | 758.0 | |||||||||||
Total current assets | 32,050.0 | |||||||||||
Deferred contract costs | 0.0 | |||||||||||
Other assets | 1,089.6 | |||||||||||
Total assets | 37,088.7 | |||||||||||
Short-term deferred revenues | 226.5 | |||||||||||
Total current liabilities | 30,413.6 | |||||||||||
Deferred income taxes | 107.3 | |||||||||||
Long-term deferred revenues | 377.8 | |||||||||||
Total liabilities | 33,629.1 | |||||||||||
Retained earnings | 15,271.3 | |||||||||||
Total stockholders’ equity | 3,459.6 | |||||||||||
Total liabilities and stockholders’ equity | 37,088.7 | |||||||||||
Statements of Consolidated Cash Flows | ||||||||||||
Net earnings | 643.1 | 1,512.1 | ||||||||||
Amortization of deferred contract costs | 0.0 | |||||||||||
Deferred income taxes | 18.0 | |||||||||||
Increase in other assets | (38.6) | |||||||||||
Increase in accrued expenses and other liabilities | 105.4 | |||||||||||
Net cash flows provided by operating activities | 1,810.0 | |||||||||||
ASC 606 | Adjustments | ||||||||||||
Statements of Consolidated Earnings | ||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | 2.3 | 1.8 | ||||||||||
Interest on funds held for clients | 0.0 | 0.0 | ||||||||||
PEO revenues (A) | 0.7 | 2.5 | ||||||||||
TOTAL REVENUES | 3.0 | 4.3 | ||||||||||
Operating expenses | (8.8) | (53.6) | ||||||||||
Systems development and programming costs | 0.0 | 0.0 | ||||||||||
Depreciation and amortization | 0.0 | 0.0 | ||||||||||
Selling, general, and administrative expenses | (10.8) | (3.3) | ||||||||||
Interest expense | 0.0 | 0.0 | ||||||||||
TOTAL EXPENSES | (19.6) | (56.9) | ||||||||||
Other income, net | 0.0 | 0.0 | ||||||||||
EARNINGS BEFORE INCOME TAXES | 22.6 | 61.2 | ||||||||||
Provision for income taxes | 4.7 | (170.7) | ||||||||||
NET EARNINGS | 17.9 | 231.9 | ||||||||||
Consolidated Balance Sheets | ||||||||||||
Other current assets | (226.7) | |||||||||||
Total current assets | (226.7) | |||||||||||
Deferred contract costs | 2,377.4 | |||||||||||
Other assets | (390.3) | |||||||||||
Total assets | 1,760.4 | |||||||||||
Short-term deferred revenues | (0.8) | |||||||||||
Total current liabilities | (0.8) | |||||||||||
Deferred income taxes | 414.7 | |||||||||||
Long-term deferred revenues | 70.2 | |||||||||||
Total liabilities | 484.1 | |||||||||||
Retained earnings | 1,275.3 | |||||||||||
Total stockholders’ equity | 1,276.3 | |||||||||||
Total liabilities and stockholders’ equity | $ 1,760.4 | |||||||||||
Statements of Consolidated Cash Flows | ||||||||||||
Net earnings | 17.9 | 231.9 | ||||||||||
Amortization of deferred contract costs | 623.5 | |||||||||||
Deferred income taxes | (163.5) | |||||||||||
Increase in other assets | (657.5) | |||||||||||
Increase in accrued expenses and other liabilities | (34.4) | |||||||||||
Net cash flows provided by operating activities | 0.0 | |||||||||||
ASU 2017-07 | Adjustments | ||||||||||||
Statements of Consolidated Earnings | ||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | 0.0 | 0.0 | ||||||||||
Interest on funds held for clients | 0.0 | 0.0 | ||||||||||
PEO revenues (A) | 0.0 | 0.0 | ||||||||||
TOTAL REVENUES | 0.0 | 0.0 | ||||||||||
Operating expenses | 9.3 | 28.0 | ||||||||||
Systems development and programming costs | 1.4 | 3.9 | ||||||||||
Depreciation and amortization | 0.0 | 0.0 | ||||||||||
Selling, general, and administrative expenses | 5.8 | 17.5 | ||||||||||
Interest expense | 0.0 | 0.0 | ||||||||||
TOTAL EXPENSES | 16.5 | 49.4 | ||||||||||
Other income, net | (16.5) | (49.4) | ||||||||||
EARNINGS BEFORE INCOME TAXES | 0.0 | 0.0 | ||||||||||
Provision for income taxes | 0.0 | 0.0 | ||||||||||
NET EARNINGS | 0.0 | 0.0 | ||||||||||
Statements of Consolidated Cash Flows | ||||||||||||
Net earnings | 0.0 | 0.0 | ||||||||||
ASU 2016-02 | Forecast | Minimum | ||||||||||||
Adoption of Lease Standard | ||||||||||||
Right-of-use assets | $ 600.0 | |||||||||||
Operating lease liabilities | 500.0 | |||||||||||
ASU 2016-02 | Forecast | Maximum | ||||||||||||
Adoption of Lease Standard | ||||||||||||
Right-of-use assets | 700.0 | |||||||||||
Operating lease liabilities | $ 600.0 | |||||||||||
Retained Earnings | ||||||||||||
Statements of Consolidated Earnings | ||||||||||||
NET EARNINGS | 753.7 | 661.0 | 1,817.4 | 1,744.0 | ||||||||
Statements of Consolidated Cash Flows | ||||||||||||
Net earnings | $ 753.7 | 661.0 | $ 1,817.4 | 1,744.0 | ||||||||
Reclassification of Stranded Tax Effect | ||||||||||||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | $ 42.3 | $ 42.3 | ||||||||||
|
Revenue (Narrative) (Details) |
9 Months Ended |
---|---|
Mar. 31, 2019 | |
Schedule Of Revenue From Contract With Customer Periods [Line Items] | |
Contract liability, recognition period | Therefore, the Company defers revenue associated with these set up fees and records them over the period in which such clients are expected to benefit from the material right, which is approximately five to seven years. |
Capitalized costs, fulfillment period | The expected client relationship period ranges from three to eight years. |
Minimum | |
Schedule Of Revenue From Contract With Customer Periods [Line Items] | |
Service agreement, term | 30 days |
Maximum | |
Schedule Of Revenue From Contract With Customer Periods [Line Items] | |
Service agreement, term | 5 years |
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 3,847.4 | $ 3,696.0 | $ 10,676.5 | $ 10,011.5 |
Employer Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,719.1 | 2,628.5 | 7,507.7 | 7,105.7 |
PEO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,134.7 | 1,067.3 | 3,180.7 | 2,909.5 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (6.4) | 0.2 | (11.9) | (3.7) |
HCM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,771.4 | 1,759.4 | 4,886.1 | 4,696.4 |
HCM | Employer Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,774.7 | 1,756.3 | 4,891.1 | 4,694.1 |
HCM | PEO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
HCM | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (3.3) | 3.1 | (5.0) | 2.3 |
HRO, excluding PEO benefits pass-throughs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 678.7 | 661.7 | 1,855.4 | 1,713.6 |
HRO, excluding PEO benefits pass-throughs | Employer Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 233.2 | 225.1 | 696.6 | 642.2 |
HRO, excluding PEO benefits pass-throughs | PEO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 448.6 | 439.5 | 1,165.7 | 1,077.4 |
HRO, excluding PEO benefits pass-throughs | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (3.1) | (2.9) | (6.9) | (6.0) |
PEO Benefits Pass-throughs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 684.5 | 626.4 | 2,011.1 | 1,828.7 |
PEO Benefits Pass-throughs | Employer Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
PEO Benefits Pass-throughs | PEO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 684.5 | 626.4 | 2,011.1 | 1,828.7 |
PEO Benefits Pass-throughs | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Global | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 545.4 | 513.7 | 1,508.9 | 1,431.9 |
Global | Employer Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 545.4 | 513.7 | 1,508.9 | 1,431.9 |
Global | PEO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Global | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Client Fund Interest | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 167.4 | 134.8 | 415.0 | 340.9 |
Client Fund Interest | Employer Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 165.8 | 133.4 | 411.1 | 337.5 |
Client Fund Interest | PEO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1.6 | 1.4 | 3.9 | 3.4 |
Client Fund Interest | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Revenue (Contract Liability) (Details) $ in Millions |
9 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Change In Contract With Customer, Liability [Roll Forward] | |
Contract liability, July 1, 2018 | $ 607.5 |
Recognition of revenue included in beginning of year contract liability | (136.7) |
Contract liability, net of revenue recognized on contracts during the period | 119.3 |
Currency adjustments | (10.9) |
Contract liability, March 31, 2019 | $ 579.2 |
Revenue (Deferred Costs) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Jun. 30, 2018 |
|||||
Capitalized Contract Cost [Line Items] | |||||||||
Deferred contract costs | $ 2,361.6 | [1] | $ 2,361.6 | [1] | $ 2,377.4 | ||||
Amortization of deferred contract costs | 220.6 | $ 211.2 | 655.2 | $ 623.5 | |||||
Deferred costs to obtain a contract | |||||||||
Capitalized Contract Cost [Line Items] | |||||||||
Deferred contract costs | 919.8 | 919.8 | |||||||
Deferred costs to fulfill a contract | |||||||||
Capitalized Contract Cost [Line Items] | |||||||||
Deferred contract costs | $ 1,441.8 | $ 1,441.8 | |||||||
|
Acquisitions (Details) - USD ($) $ in Millions |
1 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jul. 31, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Jul. 30, 2018 |
Jun. 30, 2018 |
|
The preliminary purchase price allocation for GCC is as follows: | |||||||
Goodwill | $ 2,316.1 | $ 2,243.5 | |||||
Global Cash Card, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Date of acquisition agreement | Oct. 07, 2017 | ||||||
Percentage of shares acquired | 100.00% | ||||||
Acquisition price | $ 490.0 | ||||||
Acquired finite-lived intangible assets, weighted average useful life | 8 years | ||||||
The preliminary purchase price allocation for GCC is as follows: | |||||||
Goodwill | $ 406.1 | ||||||
Identifiable intangible assets | $ 132.5 | 132.5 | |||||
Other assets | 0.8 | ||||||
Total assets acquired | 539.4 | ||||||
Total liabilities assumed | $ 48.4 | ||||||
Work Market, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Date of acquisition agreement | Jan. 19, 2018 | ||||||
Percentage of shares acquired | 100.00% | ||||||
Acquisition price | $ 125.0 | ||||||
Celergo Holdings, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Date of acquisition agreement | Jul. 01, 2018 | ||||||
Percentage of shares acquired | 100.00% |
Service Alignment Initiative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 32 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
|||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring Charges, Net of Reversals | [1] | $ 7.7 | $ (13.1) | $ 18.6 | $ (13.1) | ||||||||||
Cumulative amount from inception through | [1] | $ (91.9) | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Beginning balance | 54.5 | 74.4 | |||||||||||||
Charged to expense | 6.3 | 26.0 | |||||||||||||
Reversals | (20.8) | (12.9) | |||||||||||||
Cash payments | (20.3) | (29.3) | |||||||||||||
Non-cash utilization | (0.7) | ||||||||||||||
Ending balance | 19.7 | 57.5 | 19.7 | 57.5 | 19.7 | ||||||||||
Employee separation benefits | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring Charges, Net of Reversals | [2] | 8.2 | (11.8) | 16.7 | (8.9) | ||||||||||
Cumulative amount from inception through | [2] | (82.8) | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Beginning balance | 54.0 | 73.9 | |||||||||||||
Charged to expense | 4.1 | 21.8 | |||||||||||||
Reversals | (20.8) | (12.9) | |||||||||||||
Cash payments | (18.0) | (25.9) | |||||||||||||
Non-cash utilization | 0.0 | ||||||||||||||
Ending balance | 19.3 | 56.9 | 19.3 | 56.9 | 19.3 | ||||||||||
Other initiative costs | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring Charges, Net of Reversals | [3] | (0.5) | (1.3) | (2.2) | (4.2) | ||||||||||
Cumulative amount from inception through | [3] | (13.2) | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Beginning balance | 0.5 | 0.5 | |||||||||||||
Charged to expense | 2.2 | 4.2 | |||||||||||||
Reversals | 0.0 | 0.0 | |||||||||||||
Cash payments | (2.3) | (3.4) | |||||||||||||
Non-cash utilization | (0.7) | ||||||||||||||
Ending balance | 0.4 | 0.6 | 0.4 | 0.6 | 0.4 | ||||||||||
Gain on Sale of Building [Member] | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring Charges, Net of Reversals | $ 0.0 | $ 0.0 | $ (4.1) | [4] | $ 0.0 | ||||||||||
Cumulative amount from inception through | [4] | $ (4.1) | |||||||||||||
|
Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding (shares) | 434.1 | 441.0 | 435.5 | 441.5 |
Effect of Employee Stock Option Shares (shares) | 1.2 | 1.0 | 1.3 | 1.1 |
Effect of Employee Restricted Stock Shares (shares) | 1.3 | 1.4 | 1.3 | 1.5 |
Diluted weighted average shares outstanding (shares) | 436.6 | 443.4 | 438.1 | 444.1 |
Basic EPS from continuing operations (in US$ per share) | $ 1.74 | $ 1.50 | $ 4.17 | $ 3.95 |
Diluted EPS from continuing operations (in US$ per share) | $ 1.73 | $ 1.49 | $ 4.15 | $ 3.93 |
Net earnings | $ 753.7 | $ 661.0 | $ 1,817.4 | $ 1,744.0 |
Options excluded from the calculation of diluted earnings per share (shares) | 0.8 | 1.1 | 0.6 | 0.9 |
Other Income, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Other Income and Expenses [Abstract] | ||||
Interest income on corporate funds | $ (15.0) | $ (11.0) | $ (71.6) | $ (59.4) |
Realized gains on available-for-sale securities | (0.6) | (1.3) | (1.2) | (1.9) |
Realized losses on available-for-sale securities | 0.5 | 1.6 | 2.6 | 3.2 |
Impairment of intangible assets | 0.0 | 0.0 | 12.1 | 0.0 |
Gain on sale of assets | 0.0 | 0.0 | (4.1) | (0.4) |
Non-service components of pension expense, net (see Note 2) | (5.9) | (16.5) | (5.3) | (49.4) |
Other income, net | $ (21.0) | $ (27.2) | $ (67.5) | $ (107.9) |
Other Income, Net (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||
Schedule Of Non-Service Component [Line Items] | |||||||||
Impairment of intangible assets | $ 0.0 | $ 0.0 | $ 12.1 | $ 0.0 | |||||
Restructuring Charges, Net of Reversals | [1] | (7.7) | 13.1 | (18.6) | 13.1 | ||||
Non-cash Settlement Charges | |||||||||
Schedule Of Non-Service Component [Line Items] | |||||||||
VERP Expenses | 7.8 | 35.9 | |||||||
Other Components | |||||||||
Schedule Of Non-Service Component [Line Items] | |||||||||
Other components of net periodic pension cost | 13.7 | 41.2 | |||||||
Gain on Sale of Building [Member] | |||||||||
Schedule Of Non-Service Component [Line Items] | |||||||||
Restructuring Charges, Net of Reversals | $ 0.0 | $ 0.0 | $ 4.1 | [2] | $ 0.0 | ||||
|
Corporate Investments and Funds Held For Clients (Corporate Investments And Funds Held For Clients) (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jun. 30, 2018 |
||||||
---|---|---|---|---|---|---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Money market securities and other cash equivalents - Amortized Cost | $ 14,211.5 | $ 6,542.1 | ||||||
Money market securities and other cash equivalents - Gross Unrealized Gains | 0.0 | 0.0 | ||||||
Money market securities and other cash equivalents - Gross Unrealized Losses | 0.0 | 0.0 | ||||||
Money market securities and other cash equivalents - Fair Market Value | 14,211.5 | 6,542.1 | ||||||
Available-for-sale securities - Amortized Cost | 23,680.7 | 23,131.9 | ||||||
Available-for-sale securities - Gross Unrealized Gains | 149.6 | 36.7 | ||||||
Available-for-sale securities - Gross Unrealized Losses | (126.9) | (392.4) | ||||||
Available-for-sale securities - Fair Market Value | 23,703.4 | [1] | 22,776.2 | [2] | ||||
Total corporate investments and funds held for clients - Amortized Cost | 37,892.2 | 29,674.0 | ||||||
Total corporate investments and funds held for clients - Gross Unrealized Gains | 149.6 | 36.7 | ||||||
Total corporate investments and funds held for clients - Gross Unrealized Losses | (126.9) | (392.4) | ||||||
Total corporate investments and funds held for clients - Fair Market Value | 37,914.9 | 29,318.3 | ||||||
Corporate Investments | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 10.5 | 10.5 | ||||||
Funds Held For Clients | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 23,692.9 | 22,765.7 | ||||||
Corporate bonds | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Amortized Cost | 10,116.6 | 9,819.4 | ||||||
Available-for-sale securities - Gross Unrealized Gains | 86.3 | 20.3 | ||||||
Available-for-sale securities - Gross Unrealized Losses | (39.8) | (160.9) | ||||||
Available-for-sale securities - Fair Market Value | 10,163.1 | 9,678.8 | ||||||
Asset-backed securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Amortized Cost | 4,572.8 | 4,555.5 | ||||||
Available-for-sale securities - Gross Unrealized Gains | 13.1 | 0.3 | ||||||
Available-for-sale securities - Gross Unrealized Losses | (22.7) | (64.1) | ||||||
Available-for-sale securities - Fair Market Value | 4,563.2 | 4,491.7 | ||||||
U.S. Treasury securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Amortized Cost | 2,671.4 | 2,787.0 | ||||||
Available-for-sale securities - Gross Unrealized Gains | 8.2 | 4.0 | ||||||
Available-for-sale securities - Gross Unrealized Losses | (18.4) | (47.7) | ||||||
Available-for-sale securities - Fair Market Value | 2,661.2 | 2,743.3 | ||||||
U.S. government agency securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Amortized Cost | 2,932.2 | 2,678.9 | ||||||
Available-for-sale securities - Gross Unrealized Gains | 8.1 | 0.4 | ||||||
Available-for-sale securities - Gross Unrealized Losses | (33.4) | (76.9) | ||||||
Available-for-sale securities - Fair Market Value | 2,906.9 | 2,602.4 | ||||||
Canadian government obligations and Canadian government agency obligations | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Amortized Cost | 1,117.3 | 1,109.0 | ||||||
Available-for-sale securities - Gross Unrealized Gains | 4.6 | 0.4 | ||||||
Available-for-sale securities - Gross Unrealized Losses | (8.0) | (20.6) | ||||||
Available-for-sale securities - Fair Market Value | 1,113.9 | 1,088.8 | ||||||
Canadian provincial bonds | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Amortized Cost | 777.0 | 724.5 | ||||||
Available-for-sale securities - Gross Unrealized Gains | 8.2 | 5.1 | ||||||
Available-for-sale securities - Gross Unrealized Losses | (1.5) | (7.4) | ||||||
Available-for-sale securities - Fair Market Value | 783.7 | 722.2 | ||||||
Municipal bonds | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Amortized Cost | 600.7 | 584.6 | ||||||
Available-for-sale securities - Gross Unrealized Gains | 11.4 | 3.2 | ||||||
Available-for-sale securities - Gross Unrealized Losses | (0.3) | (4.3) | ||||||
Available-for-sale securities - Fair Market Value | 611.8 | 583.5 | ||||||
Other securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Amortized Cost | 892.7 | 873.0 | ||||||
Available-for-sale securities - Gross Unrealized Gains | 9.7 | 3.0 | ||||||
Available-for-sale securities - Gross Unrealized Losses | (2.8) | (10.5) | ||||||
Available-for-sale securities - Fair Market Value | $ 899.6 | $ 865.5 | ||||||
|
Corporate Investments and Funds Held For Clients (Available-For-Sale Securities That Have Been In An Unrealized Loss Position) (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jun. 30, 2018 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months | $ (9.1) | $ (283.4) |
Fair market value of securities in unrealized loss position less than 12 months | 906.6 | 16,606.5 |
Unrealized losses greater than 12 months | (117.8) | (109.0) |
Fair market value of securities in unrealized loss positions greater than 12 months | 13,645.6 | 3,256.8 |
Total gross unrealized losses | (126.9) | (392.4) |
Total fair market value | 14,552.2 | 19,863.3 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months | (0.7) | (118.2) |
Fair market value of securities in unrealized loss position less than 12 months | 117.3 | 7,132.9 |
Unrealized losses greater than 12 months | (39.1) | (42.7) |
Fair market value of securities in unrealized loss positions greater than 12 months | 5,048.6 | 994.2 |
Total gross unrealized losses | (39.8) | (160.9) |
Total fair market value | 5,165.9 | 8,127.1 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months | (0.1) | (47.4) |
Fair market value of securities in unrealized loss position less than 12 months | 25.0 | 3,515.9 |
Unrealized losses greater than 12 months | (22.6) | (16.7) |
Fair market value of securities in unrealized loss positions greater than 12 months | 3,430.9 | 867.7 |
Total gross unrealized losses | (22.7) | (64.1) |
Total fair market value | 3,455.9 | 4,383.6 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months | 0.0 | (31.2) |
Fair market value of securities in unrealized loss position less than 12 months | 0.0 | 2,013.8 |
Unrealized losses greater than 12 months | (18.4) | (16.5) |
Fair market value of securities in unrealized loss positions greater than 12 months | 2,153.4 | 431.1 |
Total gross unrealized losses | (18.4) | (47.7) |
Total fair market value | 2,153.4 | 2,444.9 |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months | 0.0 | (46.9) |
Fair market value of securities in unrealized loss position less than 12 months | 0.0 | 1,676.8 |
Unrealized losses greater than 12 months | (33.4) | (30.0) |
Fair market value of securities in unrealized loss positions greater than 12 months | 2,340.9 | 864.0 |
Total gross unrealized losses | (33.4) | (76.9) |
Total fair market value | 2,340.9 | 2,540.8 |
Canadian government obligations and Canadian government agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months | (7.9) | (20.6) |
Fair market value of securities in unrealized loss position less than 12 months | 667.1 | 1,020.3 |
Unrealized losses greater than 12 months | (0.1) | 0.0 |
Fair market value of securities in unrealized loss positions greater than 12 months | 51.0 | 0.0 |
Total gross unrealized losses | (8.0) | (20.6) |
Total fair market value | 718.1 | 1,020.3 |
Canadian provincial bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months | (0.4) | (6.3) |
Fair market value of securities in unrealized loss position less than 12 months | 80.4 | 387.7 |
Unrealized losses greater than 12 months | (1.1) | (1.1) |
Fair market value of securities in unrealized loss positions greater than 12 months | 220.2 | 50.4 |
Total gross unrealized losses | (1.5) | (7.4) |
Total fair market value | 300.6 | 438.1 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months | 0.0 | (3.6) |
Fair market value of securities in unrealized loss position less than 12 months | 4.7 | 285.8 |
Unrealized losses greater than 12 months | (0.3) | (0.7) |
Fair market value of securities in unrealized loss positions greater than 12 months | 46.1 | 16.0 |
Total gross unrealized losses | (0.3) | (4.3) |
Total fair market value | 50.8 | 301.8 |
Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months | 0.0 | (9.2) |
Fair market value of securities in unrealized loss position less than 12 months | 12.1 | 573.3 |
Unrealized losses greater than 12 months | (2.8) | (1.3) |
Fair market value of securities in unrealized loss positions greater than 12 months | 354.5 | 33.4 |
Total gross unrealized losses | (2.8) | (10.5) |
Total fair market value | $ 366.6 | $ 606.7 |
Corporate Investments and Funds Held For Clients (Narrative) (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Jun. 30, 2018 |
|||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Earliest Corporate bond debt maturity date | April 2019 | |||||||
Latest corporate debt maturity date | November 2028 | |||||||
Available-for-sale securities - Fair Market Value | $ 23,703.4 | [1] | $ 22,776.2 | [2] | ||||
Earliest U.S. Treasury maturity date | May 2019 | |||||||
Latest U.S Treasury maturity date | January 2029 | |||||||
Client Fund obligation repayment period | 1 year | |||||||
Client funds obligations | $ 36,055.6 | 27,493.5 | ||||||
Client funds held in grantor trust | $ 32,528.8 | 24,242.9 | ||||||
Client funds investments with original maturities | ninety days or less | |||||||
Percentage of the available-for-sale securities were rated AAA Or AA | 80.00% | |||||||
Federal Home Loan Banks | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | $ 1,798.0 | |||||||
Federal Farm Credit Banks | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 656.1 | |||||||
U.S. government agency securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 117.9 | |||||||
Fixed Rate Credit Card | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 1,957.9 | |||||||
Asset-Backed Auto Loan Receivables | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 1,940.0 | |||||||
Asset-Backed Equipment Lease Receivable | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 489.5 | |||||||
Rate Reduction | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 175.8 | |||||||
Supranational Bonds | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 198.9 | |||||||
Commercial Mortgage Backed Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 398.5 | |||||||
Sovereign Bonds | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 77.8 | |||||||
Level 1 | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | 0.0 | 0.0 | ||||||
Level 3 | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities - Fair Market Value | $ 0.0 | $ 0.0 | ||||||
|
Corporate Investments and Funds Held For Clients (Classification Of Corporate Investments On The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
|||||
---|---|---|---|---|---|---|---|---|
Corporate Investments And Funds Held For Clients [Abstract] | ||||||||
Cash and cash equivalents | $ 1,826.2 | $ 2,170.0 | $ 2,293.6 | |||||
Short-term marketable securities | [1] | 7.3 | 3.3 | |||||
Long-term marketable securities | [2] | 3.2 | 7.2 | |||||
Total corporate investments | $ 1,836.7 | $ 2,180.5 | ||||||
|
Corporate Investments and Funds Held For Clients (Schedule Of Investment Of Funds Held For Clients) (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
[1] | |||
---|---|---|---|---|---|---|---|
Corporate Investments And Funds Held For Clients [Abstract] | |||||||
Restricted cash and cash equivalents held to satisfy client funds obligations | $ 12,385.3 | [1] | $ 4,372.1 | $ 11,151.3 | |||
Restricted short-term marketable securities held to satisfy client funds obligations | 4,556.2 | 2,521.4 | |||||
Restricted long-term marketable securities held to satisfy client funds obligations | 19,136.7 | 20,244.3 | |||||
Total funds held for clients | $ 36,078.2 | $ 27,137.8 | |||||
|
Corporate Investments and Funds Held For Clients (Expected Maturities Of Available-For-Sale Securities) (Details) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Corporate Investments And Funds Held For Clients [Abstract] | |
One year or less | $ 4,563.5 |
One year to two years | 5,733.7 |
Two years to three years | 4,493.0 |
Three years to four years | 4,327.5 |
After four years | 4,585.7 |
Total available-for-sale securities | $ 23,703.4 |
Goodwill and Intangibles Assets, net (Changes In Goodwill) (Details) $ in Millions |
9 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at June 30, 2018 | $ 2,243.5 |
Additions and other adjustments | 89.1 |
Currency translation adjustments | (16.5) |
Balance at March 31, 2019 | 2,316.1 |
Employer Services | |
Goodwill [Roll Forward] | |
Balance at June 30, 2018 | 2,238.7 |
Additions and other adjustments | 89.1 |
Currency translation adjustments | (16.5) |
Balance at March 31, 2019 | 2,311.3 |
PEO Services | |
Goodwill [Roll Forward] | |
Balance at June 30, 2018 | 4.8 |
Additions and other adjustments | 0.0 |
Currency translation adjustments | 0.0 |
Balance at March 31, 2019 | $ 4.8 |
Goodwill and Intangibles Assets, net (Components Of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Jun. 30, 2018 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Total - gross | $ 3,553.0 | $ 3,238.0 |
Total - accumulated amortization | (2,490.1) | (2,351.6) |
Intangible assets, net | $ 1,062.9 | 886.4 |
Software and software licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Total - gross | $ 2,459.6 | 2,292.9 |
Total - accumulated amortization | $ (1,722.4) | (1,606.6) |
Customer contracts and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Total - gross | $ 855.5 | 708.6 |
Total - accumulated amortization | $ (551.5) | (533.4) |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Total - gross | $ 237.9 | 236.5 |
Total - accumulated amortization | $ (216.2) | $ (211.6) |
Goodwill and Intangibles Assets, net (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||
Amortization of intangible assets | $ 57.1 | $ 52.0 | $ 166.0 | $ 150.4 |
Software and software licenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Customer contracts and lists | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||
Other Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Goodwill and Intangibles Assets, net (Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Three months ending June 30, 2019 | $ 70.8 |
Twelve months ending June 30, 2020 | 255.7 |
Twelve months ending June 30, 2021 | 206.5 |
Twelve months ending June 30, 2022 | 161.1 |
Twelve months ending June 30, 2023 | 131.3 |
Twelve months ending June 30, 2024 | $ 94.6 |
Short-term Financing (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Jun. 30, 2018 |
|
Short-term Debt [Line Items] | |||||
Short-term debt | $ 0 | $ 0 | |||
Commercial paper | 0 | 0 | $ 0 | ||
Obligations under reverse repurchase agreements | 0 | $ 0 | $ 0 | ||
Maturities of short-term funding agreements | overnight to up to five business days | ||||
364-day credit agreement | |||||
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity under credit facilities | 3,800,000,000 | $ 3,800,000,000 | |||
Term of credit agreement | 364 days | ||||
Expiration date of credit facilities | Jun. 16, 2019 | ||||
Extension option term | 1 year | ||||
Credit Facility Expiring In June 2022 | |||||
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity under credit facilities | 2,250,000,000 | $ 2,250,000,000 | |||
Term of credit agreement | 5 years | ||||
Expiration date of credit facilities | Jun. 17, 2022 | ||||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | ||||
Credit Facility Expiring In June Two Thousand Twenty Three [Member] | |||||
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity under credit facilities | 3,750,000,000 | $ 3,750,000,000 | |||
Term of credit agreement | 5 years | ||||
Expiration date of credit facilities | Jun. 13, 2023 | ||||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | ||||
Commercial paper program | |||||
Short-term Debt [Line Items] | |||||
Short-term Debt, Maximum Borrowing Capacity | $ 9,800,000,000 | ||||
Maturities of commercial paper range | overnight to up to 364 days | ||||
Short-term debt, average outstanding amount | $ 1,100,000,000 | $ 1,000,000,000 | $ 2,900,000,000 | $ 2,800,000,000 | |
Debt instrument, interest rate during period | 2.40% | 1.50% | 2.20% | 1.20% | |
Short Term Commercial Paper Program | |||||
Short-term Debt [Line Items] | |||||
Commercial paper weighted average maturity | 1 day | 2 days | |||
Reverse repurchase agreements | |||||
Short-term Debt [Line Items] | |||||
Short-term debt, average outstanding amount | $ 93,100,000 | $ 99,000,000 | $ 306,100,000 | $ 389,500,000 | |
Debt instrument, interest rate during period | 1.80% | 1.20% | 1.80% | 1.10% |
Long-term Debt (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Jun. 30, 2018 |
|
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 2,000,000,000 | |
Notes payable | 2,011,500,000 | $ 2,013,000,000 |
Less: current portion | (2,500,000) | (2,500,000) |
Less: unamortized discount and debt issuance costs | (6,700,000) | (8,100,000) |
Total long-term debt | 2,002,300,000 | 2,002,400,000 |
Fair value of notes issued | $ 2,028,500,000 | |
Fixed-rate 2.25% notes due September 15, 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 5 years | |
Debt instrument effective rate (percent) | 2.37% | |
Notes payable | $ 1,000,000,000 | 1,000,000,000 |
Interest Rate | 2.25% | |
Due Date | Sep. 15, 2020 | |
Fixed-rate 3.375% notes due September 15, 2025 | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 10 years | |
Debt instrument effective rate (percent) | 3.47% | |
Notes payable | $ 1,000,000,000 | 1,000,000,000 |
Interest Rate | 3.375% | |
Due Date | Sep. 15, 2025 | |
Other | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 11,500,000 | $ 13,000,000 |
Employee Benefit Plans (Narrative) (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock Repurchased During Period in Treasury, Shares | 1.6 | 1.7 | 5.4 | 5.3 |
Time Based Restriced Stock granted during or after Fiscal 2019 [Domain] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Minimum | Performance Based Restricted Stock and Units [Domain] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Performance Period | 1 year | |||
Maximum | Performance Based Restricted Stock and Units [Domain] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 38 months | |||
Share Based Compensation Arrangement By Share Based Payment Award Performance Period | 3 years |
Employee Benefit Plans (Components Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Total pre-tax stock-based compensation expense | $ 45.2 | $ 41.7 | $ 122.2 | $ 119.4 |
Operating expenses | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total pre-tax stock-based compensation expense | 4.1 | 4.8 | 12.9 | 15.4 |
Selling, general and administrative expenses | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total pre-tax stock-based compensation expense | 36.1 | 31.8 | 94.6 | 87.9 |
System development and programming costs | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total pre-tax stock-based compensation expense | $ 5.0 | $ 5.1 | $ 14.7 | $ 16.1 |
Employee Benefit Plans (Components Of Net Pension Expense) (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
May 01, 2018
associate
|
Mar. 01, 2018
associate
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
|
Defined Benefit Plan Disclosure [Line Items] | ||||||
Voluntary Early Retirement Program Minimum Age Requirement | 55 years | |||||
Voluntary Early Retirement Program, Minimum Period | 10 years | |||||
Voluntary Early Retirement Program Number of Eligible Associates | associate | 3,500 | |||||
Voluntary Early Retirement Program, Percent of Eligible Associates from Total | 6.00% | |||||
Associates Opting to Participate in VERP | associate | 2,200 | |||||
VERP, Period of Health Care Coverage Following Retirement | 24 months | |||||
VERP, charge recorded under SG&A | $ 2.2 | $ 23.6 | ||||
Service cost – benefits earned during the period | 14.9 | $ 18.7 | 44.9 | $ 55.9 | ||
Interest cost on projected benefits | 19.7 | 16.4 | 59.0 | 49.0 | ||
Expected return on plan assets | (32.9) | (34.4) | (98.9) | (103.0) | ||
Net amortization and deferral | 0.0 | 2.1 | 0.1 | 6.3 | ||
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 7.8 | 0.0 | 35.9 | 0.0 | ||
Net pension expense | 9.5 | $ 2.8 | 41.0 | $ 8.2 | ||
Non-cash Settlement Charges | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
VERP Expenses | $ 7.8 | $ 35.9 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Jun. 30, 2018 |
|
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 23.40% | 24.50% | 23.40% | 14.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.10% | |||
Undistributed accumulated earnings of foreign subsidiary, provisional unrecognized deferred tax liability | $ 19,200,000 | $ 19,200,000 | |||
Accrual On Foreign Withholding Taxes | $ 28,300,000 | ||||
Change in tax rate, deferred tax liability, provisional income tax expense (benefit) | 253,300,000 | ||||
Transition tax for accumulated foreign earnings, provisional income tax expense (benefit) | $ 22,900,000 | ||||
Change in Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | $ 0 |
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 4,763.9 | $ 5,160.5 | $ 4,735.9 | $ 4,984.1 |
Net earnings | 753.7 | 661.0 | 1,817.4 | 1,744.0 |
Other comprehensive income | 203.1 | (158.2) | 267.9 | (203.2) |
Stock-based compensation expense | 35.8 | 35.5 | 105.4 | 101.7 |
Issuances relating to stock compensation plans | (61.9) | (65.0) | (137.1) | (127.0) |
Treasury stock acquired | (228.0) | (202.3) | (822.1) | (654.8) |
Dividends declared | (344.2) | (279.2) | (995.4) | (816.5) |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 0.0 | 0.0 | ||
Ending balance | $ 5,246.2 | $ 5,282.3 | $ 5,246.2 | $ 5,282.3 |
Treasury stock acquired (shares) | 1.6 | 1.7 | 5.4 | 5.3 |
Dividends declared (in US$ per share) | $ 0.79 | $ 0.63 | $ 2.27 | $ 1.83 |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 63.9 | $ 63.9 | $ 63.9 | $ 63.9 |
Net earnings | 0.0 | 0.0 | 0.0 | 0.0 |
Other comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 |
Stock-based compensation expense | 0.0 | 0.0 | 0.0 | 0.0 |
Issuances relating to stock compensation plans | 0.0 | 0.0 | 0.0 | 0.0 |
Treasury stock acquired | 0.0 | 0.0 | 0.0 | 0.0 |
Dividends declared | 0.0 | 0.0 | 0.0 | 0.0 |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 0.0 | 0.0 | ||
Ending balance | 63.9 | 63.9 | 63.9 | 63.9 |
Capital in Excess of Par Value | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 1,076.1 | 903.5 | 1,014.8 | 867.8 |
Net earnings | 0.0 | 0.0 | 0.0 | 0.0 |
Other comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 |
Stock-based compensation expense | 35.8 | 35.5 | 105.4 | 101.7 |
Issuances relating to stock compensation plans | (28.3) | (25.1) | (20.0) | (5.4) |
Treasury stock acquired | 0.0 | 0.0 | 0.0 | 0.0 |
Dividends declared | 0.0 | 0.0 | 0.0 | 0.0 |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 0.0 | 0.0 | ||
Ending balance | 1,140.2 | 964.1 | 1,140.2 | 964.1 |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 16,959.1 | 16,285.0 | 16,546.6 | 15,739.3 |
Net earnings | 753.7 | 661.0 | 1,817.4 | 1,744.0 |
Other comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 |
Stock-based compensation expense | 0.0 | 0.0 | 0.0 | 0.0 |
Issuances relating to stock compensation plans | 0.0 | 0.0 | 0.0 | 0.0 |
Treasury stock acquired | 0.0 | 0.0 | 0.0 | 0.0 |
Dividends declared | (344.2) | (279.2) | (995.4) | (816.5) |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 42.3 | 42.3 | ||
Ending balance | 17,368.6 | 16,709.1 | 17,368.6 | 16,709.1 |
Treasury Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (12,720.2) | (11,663.7) | (12,209.6) | (11,303.7) |
Net earnings | 0.0 | 0.0 | 0.0 | 0.0 |
Other comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 |
Stock-based compensation expense | 0.0 | 0.0 | 0.0 | 0.0 |
Issuances relating to stock compensation plans | (33.6) | (39.9) | (117.1) | (132.4) |
Treasury stock acquired | (228.0) | (202.3) | (822.1) | (654.8) |
Dividends declared | 0.0 | 0.0 | 0.0 | 0.0 |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 0.0 | 0.0 | ||
Ending balance | (12,914.6) | (11,826.1) | (12,914.6) | (11,826.1) |
AOCI | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (615.0) | (428.2) | (679.8) | (383.2) |
Net earnings | 0.0 | 0.0 | 0.0 | 0.0 |
Other comprehensive income | 203.1 | (158.2) | 267.9 | (203.2) |
Stock-based compensation expense | 0.0 | 0.0 | 0.0 | 0.0 |
Issuances relating to stock compensation plans | 0.0 | 0.0 | 0.0 | 0.0 |
Treasury stock acquired | 0.0 | 0.0 | 0.0 | 0.0 |
Dividends declared | 0.0 | 0.0 | 0.0 | 0.0 |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | (42.3) | (42.3) | ||
Ending balance | $ (411.9) | $ (628.7) | $ (411.9) | $ (628.7) |
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||||
AOCI Net of Tax [Roll Forward] | |||||||||||
Accumulated other comprehensive income, beginning balance | $ (615.0) | $ (428.2) | $ (679.8) | $ (383.2) | |||||||
Other comprehensive (loss)/income before reclassification adjustments | 256.7 | (213.6) | 327.1 | (318.8) | |||||||
Tax effect | (58.0) | 53.4 | (84.8) | 109.9 | |||||||
Reclassification adjustments to net earnings | 6.0 | 2.5 | 33.9 | 8.2 | |||||||
Tax effect | (1.6) | (0.5) | (8.3) | (2.5) | |||||||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect | [1] | (42.3) | (42.3) | ||||||||
Accumulated other comprehensive income, ending balance | (411.9) | (628.7) | (411.9) | (628.7) | |||||||
Currency Translation Adjustment | |||||||||||
AOCI Net of Tax [Roll Forward] | |||||||||||
Accumulated other comprehensive income, beginning balance | (274.6) | (179.8) | (227.0) | (234.8) | |||||||
Other comprehensive (loss)/income before reclassification adjustments | (2.3) | 26.8 | (49.9) | 81.8 | |||||||
Tax effect | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
Reclassification adjustments to net earnings | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
Tax effect | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect | [1] | 0.0 | 0.0 | ||||||||
Accumulated other comprehensive income, ending balance | (276.9) | (153.0) | (276.9) | (153.0) | |||||||
Net Gains/Losses on Available-for-sale Securities | |||||||||||
AOCI Net of Tax [Roll Forward] | |||||||||||
Accumulated other comprehensive income, beginning balance | (181.5) | (34.6) | (274.0) | 68.3 | |||||||
Other comprehensive (loss)/income before reclassification adjustments | 259.0 | (240.4) | 377.0 | (400.6) | |||||||
Tax effect | (58.0) | 53.4 | (84.8) | 109.9 | |||||||
Reclassification adjustments to net earnings | [2] | (0.1) | 0.2 | 1.4 | 1.3 | ||||||
Tax effect | 0.0 | 0.1 | (0.2) | (0.2) | |||||||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect | [1] | (7.1) | (7.1) | ||||||||
Accumulated other comprehensive income, ending balance | 19.4 | (228.4) | 19.4 | (228.4) | |||||||
Pension Liability | |||||||||||
AOCI Net of Tax [Roll Forward] | |||||||||||
Accumulated other comprehensive income, beginning balance | (158.9) | (213.8) | (178.8) | (216.7) | |||||||
Other comprehensive (loss)/income before reclassification adjustments | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
Tax effect | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
Reclassification adjustments to net earnings | [3] | 6.1 | 2.3 | 32.5 | 6.9 | ||||||
Tax effect | (1.6) | (0.6) | (8.1) | (2.3) | |||||||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect | [1] | (35.2) | (35.2) | ||||||||
Accumulated other comprehensive income, ending balance | $ (154.4) | $ (247.3) | $ (154.4) | $ (247.3) | |||||||
|
Interim Financial Data by Segment (Narrative) (Details) |
9 Months Ended |
---|---|
Mar. 31, 2019
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Interim Financial Data by Segment (Financial Data By Strategic Business Unit Segment) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Segment Reporting Information [Line Items] | ||||
Revenues | $ (3,847.4) | $ (3,696.0) | $ (10,676.5) | $ (10,011.5) |
Earnings before Income Taxes | 984.5 | 875.2 | 2,372.3 | 2,027.7 |
Employer Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (2,719.1) | (2,628.5) | (7,507.7) | (7,105.7) |
Earnings before Income Taxes | 962.1 | 870.1 | 2,333.0 | 1,988.4 |
PEO Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (1,134.7) | (1,067.3) | (3,180.7) | (2,909.5) |
Earnings before Income Taxes | 155.7 | 147.1 | 458.6 | 403.6 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (6.4) | (0.2) | (11.9) | (3.7) |
Earnings before Income Taxes | $ (133.3) | $ (142.0) | $ (419.3) | $ (364.3) |
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