10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________

FORM 10-Q

______________

ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31,2019

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From          to         

Commission File Number 1-5397

__________________________

AUTOMATIC DATA PROCESSING, INC.

(Exact name of registrant as specified in its charter)

__________________________

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

__________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ý   No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ý       No   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [x]	Accelerated filer [ ]
Non-accelerated filer [ ]	Smaller reporting company [ ]
Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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

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

The number of shares outstanding of the registrant’s common stock as of April 30, 2019 was 435,228,237.

Table of Contents

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Statements of Consolidated Earnings Three and nine months ended March 31, 2019 and 2018	3
	Statements of Consolidated Comprehensive Income Three and nine months ended March 31, 2019 and 2018	4
	Consolidated Balance Sheets At March 31, 2019 and June 30, 2018	5
	Statements of Consolidated Cash Flows Nine months ended March 31, 2019 and 2018	6
	Notes to the Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	45
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 5.	Other Information	46
Item 6.	Exhibits	47
	Signatures	48

2

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

Automatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Earnings

(In millions, except per share amounts)

(Unaudited)

	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

*See Note 2 for a summary of adjustments.

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $10,798.3 million and $10,176.2 million for the three months ended March 31, 2019 and 2018, respectively, and $32,178.8 million and $29,547.0 million for the nine months ended March 31, 2019 and 2018, respectively.

See notes to the Consolidated Financial Statements.

3

Automatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Comprehensive Income

(In millions)

(Unaudited)

	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

*See Note 2 for a summary of adjustments.

See notes to the Consolidated Financial Statements.

4

Automatic Data Processing, Inc. and Subsidiaries

Consolidated Balance Sheets

(In millions, except per share amounts)

(Unaudited)

	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

*See Note 2 for a summary of adjustments.

See notes to the Consolidated Financial Statements.

5

Automatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Cash Flows

(In millions)

(Unaudited)

	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

*See Note 2 for a summary of adjustments.

(A) See Note 8 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets.

See notes to the Consolidated Financial Statements.

6

Automatic Data Processing, Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

(Tabular dollars in millions, except per share amounts)

(Unaudited)

Note 1.  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”).

Note 2.  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

7

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

	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

8

Consolidated Balance Sheets

	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

Statements of Consolidated Cash Flows

	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

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.

9

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.

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.

10

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.

Note 3.  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

11

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):

	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

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2019:

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

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Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2018:

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

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2019:

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

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2018:

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 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 endedMarch 31, 2019 were as follows:

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

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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:

	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

(1) The amount of total deferred costs amortized during the three and nine months endedMarch 31, 2019 and March 31, 2018, were $220.6 million and $655.2 million, and $211.2 million and $623.5 million, respectively.

Note 4. 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:

Goodwill	$	406.1
Identifiable intangible assets	132.5
Other assets	0.8
Total assets acquired	$	539.4
Total liabilities assumed	$	48.4

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.

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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.

Note 5. 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:

	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

(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 endedMarch 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.

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Activity for the Service Alignment Initiative liability for the nine months endedMarch 31, 2019 and March 31, 2018, respectively, was as follows:

	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

Note 6.  Earnings per Share (“EPS”)

	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

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 endedMarch 31, 2019 and 2018, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

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Note 7. Other Income, Net

	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	)

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 endedMarch 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 endedMarch 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.

Note 8. 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:

	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

(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.

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	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

(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 endedMarch 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: 

	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

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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:

	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

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:

	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

(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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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:

	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

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:

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

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Note 9. Goodwill and Intangibles Assets, net

Changes in goodwill for the nine months endedMarch 31, 2019 are as follows:

	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

Components of intangible assets, net, are as follows:

	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

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 endedMarch 31, 2019 and 2018, respectively.

Estimated future amortization expenses of the Company's existing intangible assets are as follows:

	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

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Note 10. 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 billionfive 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 endedMarch 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 endedMarch 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 endedMarch 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.

Note 11. 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:

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

The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs.

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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.

Note 12. Employee Benefit Plans

A.  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 endedMarch 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 endedMarch 31, 2019 and 2018, respectively:

	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

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.

B.  Pension Plans

The components of net pension expense were as follows:

	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

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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 endedMarch 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 endedMarch 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.

Note 13. 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 endedMarch 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 endedMarch 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.

Note 14. 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.

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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.

Note 15. Stockholders' Equity

Changes in stockholders' equity by component are as follows:

	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

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	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

(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).

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Note 16. Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”)

Changes in AOCI by component are as follows:

	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	)

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	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	)

(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).

Note 17. 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.

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Segment Results:

	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

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

(Tabular dollars are presented in millions, except per share amounts)

FORWARD-LOOKING STATEMENTS

This document and other written or oral statements made from time to time by Automatic Data Processing, Inc. and its subsidiaries ("ADP" or "the Company") may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like “expects,” “assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could” and other words of similar meaning, are forward-looking statements. These statements are based on management’s expectations and assumptions and depend upon or refer to future events or conditions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements or that could contribute to such difference include: ADP's success in obtaining and retaining clients, and selling additional services to clients; the pricing of products and services; the success of our new solutions; compliance with existing or new legislation or regulations; changes in, or interpretations of, existing legislation or regulations; overall market, political and economic conditions, including interest rate and foreign currency trends; competitive conditions; our ability to maintain our current credit ratings and the impact on our funding costs and profitability; security or cyber breaches, fraudulent acts, and system interruptions and failures; employment and wage levels; changes in technology; availability of skilled technical associates; the impact of new acquisitions and divestitures; and the adequacy, effectiveness and success of our business transformation initiatives. ADP disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. These risks and uncertainties, along with the risk factors discussed under “Item 1A. - Risk Factors” in our Annual Report on Form 10‑K for the fiscal year ended June 30, 2018 (“fiscal 2018”), and in other written or oral statements made from time to time by ADP, should be considered in evaluating any forward-looking statements contained herein.

CRITICAL ACCOUNTING POLICIES

Our Consolidated Financial Statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).  The preparation of these financial statements requires management to make estimates, judgments, and assumptions that affect reported amounts of assets, liabilities, revenues, expenses, and other comprehensive income.  We continually evaluate the accounting policies and estimates used to prepare the Consolidated Financial Statements.  The estimates are based on historical experience and assumptions believed to be reasonable under current facts and circumstances.  Actual amounts and results could differ from these estimates made by management. Refer to Note 2 of our Consolidated Financial Statements for changes to our accounting policies effective for the fiscal year ended June 30, 2019 (“fiscal 2019”).

RESULTS OF OPERATIONS

Executive Overview

We are the leading global provider of cloud-based Human Capital Management (“HCM”) technology solutions - including payroll, talent management, Human Resources and benefits administration, and time and attendance management - to employers around the world. As the leader in this industry, we deliver on our global HCM strategy and make investments in highly strategic areas and technology in order to strengthen our underlying business model and prospects for continued growth.

Highlights from the nine months endedMarch 31, 2019 include:

• 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

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Recently, we introduced our new brand platform which represents an evolution in our journey to enhance the employee experience through innovation and insights designed with the worker as a central theme. At ADP, we are Always Designing for People and we continue to innovate by anticipating our clients' evolving needs as the world of work changes. We are reshaping the HCM industry with cutting-edge products such as our Next Gen platforms, which are complemented by our strategic acquisitions such as Global Cash Card, WorkMarket and Celergo. With these investments, we are enhancing our position as the leading global HCM provider that can help businesses address the entire worker spectrum from full-time to freelancer through hire to retire. As the HCM market continues to evolve rapidly, we remain focused on rethinking a better, more personalized world at work and helping our clients and their employees achieve their full potential.

Our Employer Services New Business Bookings increased 6% and the PEO Services' average number of Worksite Employees increased 9% to 542,000 in the nine months endedMarch 31, 2019, compared to the nine months endedMarch 31, 2018. We continue to grow our business for the long-term and now expect Employer Services New Business Bookings growth of 8% to 9% for fiscal 2019. Given the solid performance of our PEO Services this year, we continue to expect growth of 8% to 9% in the average number of Worksite Employees for fiscal 2019.

Our Voluntary Early Retirement Program (“VERP”), Service Alignment Initiative, client migrations, and other transformation initiatives are yielding improvements in our client satisfaction scores and productivity, keeping us firmly on a path of delivering balanced revenue, profit growth and margin expansion. We continue to focus on improving the client experience and are on track to achieve our goal of improved retention during fiscal 2019.

We have a strong business model and operate in a growing global HCM market. We continue to maintain a high percentage of recurring revenues, healthy and improving margins, and generate consistent strong cash flows. Our financial condition and balance sheet remain solid at March 31, 2019. Through our investments in technology, service, and distribution, we are positioned to maintain our positive momentum for the remainder of the fiscal year.

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Analysis of Consolidated Operations

	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	%

*See Note 2 of the Consolidated Financial Statements for a summary of adjustments.

n/m - not meaningful

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Note 1 - Non GAAP Financial Measures

In addition to our U.S. GAAP results, we use the adjusted results and other non-GAAP metrics set forth in the table below to evaluate our operating performance in the absence of certain items and for planning and forecasting of future periods:

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

We believe that the exclusion of the identified items below helps us reflect the fundamentals of our underlying business model and analyze results against our expectations and against prior period, and to plan for future periods by focusing on our underlying operations.  We believe that the adjusted results provide relevant and useful information for investors because it allows investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance.  The nature of these exclusions are for specific items that are not fundamental to our underlying business operations.  Since these adjusted financial measures and other non-GAAP metrics are not measures of performance calculated in accordance with U.S. GAAP, they should not be considered in isolation from, as a substitute for, or superior to their corresponding U.S. GAAP measures, and they may not be comparable to similarly titled measures at other companies.

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	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	%

*See Note 2 of the Consolidated Financial Statements for a summary of adjustments.

(a) We continue to include the interest income earned on investments associated with our client funds extended investment strategy and interest expense on borrowings related to our client funds extended investment strategy as we believe these amounts to be fundamental to the underlying operations of our business model. The adjustments in the table above represent the interest income and interest expense that is not related to our client funds extended investment strategy and are labeled as “All other interest expense” and “All other interest income.”

(b) The charges within transformation initiatives are comprised of charges for our VERP, Service Alignment Initiative and other transformation initiatives. Charges related to our VERP in the three and nine months endedMarch 31, 2019 include $7.8 million and $35.9 million for non-cash pension settlement charge and special termination benefits, and $2.2 million and $23.6 million of expenses related to the continuing health coverage, respectively. We also recorded charges of $20.5 million and

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$51.4 million related to our other transformation initiatives during the three and nine months endedMarch 31, 2019, respectively. These charges were partially offset by net reversals of charges and gain on sale of assets related to our Service Alignment Initiative of $7.7 million and $18.6 million for the three and nine months endedMarch 31, 2019, respectively. Unlike other severance charges which are not included as an adjustment to get to adjusted results, these specific charges relate to actions that are part of our broad-based, company-wide transformation initiative. Refer to Note 5 and Note 12 of the Consolidated Financial Statements for a description of the Service Alignment Initiative and charges associated with VERP, respectively.

(c) Represents non-operational costs relating to proxy contest matters.

(d) The tax benefit on the transformation initiatives and non-operational charges related to proxy contest matters was calculated based on the annualized marginal rate in effect during the quarter of the adjustment.

(e) The net benefit for the nine months endedMarch 31, 2018 is comprised of the re-measurement of deferred tax balances resulting in a one-time benefit, primarily as a result of ASC 606, using the lower tax rates enacted under the Tax Cuts and Jobs Act (“Act”), adjustments to the one-time transition tax on the earnings and profits of our foreign subsidiaries, foreign withholding taxes, and a valuation allowance against our foreign tax credits which may not be realized under the Act. Refer to Note 13 of our Consolidated Financial statements for additional detail.

(f) The Adjusted effective tax rate is calculated as our Adjusted provision for income taxes divided by our Adjusted net earnings, plus our Adjusted provision for income taxes.

(g) “Constant currency basis” provides information that isolates the actual growth of our operations. “Constant currency basis” is determined by calculating the current year result using foreign exchange rates consistent with the prior year.

Total Revenues

Our revenues, as reported, increased4% and 7% for the three and nine months endedMarch 31, 2019, respectively. For the three months ended March 31, 2019, our revenue growth includes one percentage point of pressure from foreign currency partially offset by benefits from acquisitions. For the nine months endedMarch 31, 2019, our revenue growth includes one percentage point of pressure from foreign currency offset by benefits from acquisitions. Revenues for the three and nine months endedMarch 31, 2019increased primarily due to new business started from New Business Bookings and continued strong retention. Refer to “Analysis of Reportable Segments” for additional discussion of the increases in revenue for both of our reportable segments, Employer Services and Professional Employer Organization (“PEO”) Services.

Total revenues for the three months ended March 31, 2019 include interest on funds held for clients of $167.4 million, as compared to $134.8 million for the three months ended March 31, 2018. The increase in the consolidated interest earned on funds held for clients resulted from an increase in the average interest rate earned to 2.2% for the three months ended March 31, 2019, as compared to 1.9% for the three months ended March 31, 2018, coupled with a increase in our average client funds balance of 4.1% to $30.0 billion for the three months ended March 31, 2019, as compared to the three months ended March 31, 2018.

Total revenues for the nine months endedMarch 31, 2019 include interest on funds held for clients of $415.0 million, as compared to $340.9 million for the nine months endedMarch 31, 2018. The increase in the consolidated interest earned on funds held for clients resulted from an increase in the average interest rate earned to 2.2% during the nine months endedMarch 31, 2019, as compared to 1.9% during the nine months endedMarch 31, 2018, coupled with an increase in our average client funds balance of 4.5% to $25.2 billion for the nine months endedMarch 31, 2019, as compared to the nine months endedMarch 31, 2018.

Total Expenses

Our total expenses, as reported, increased1% for the three months ended March 31, 2019, as compared to the same period in the prior year. The increase is primarily due to an increase in PEO Services benefits pass-through costs, increased selling and marketing expenses and costs related to our acquisitions. The increase was partially offset by the impact of foreign currency, decrease in charges related to transformation initiatives and operating efficiencies as a result of our continued successful execution on our broader transformation initiatives.

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Our total expenses, as reported, increased3% for the nine months endedMarch 31, 2019, as compared to the same period in the prior year. The increase is primarily due to an increase in PEO Services benefits pass-through costs, costs related to our acquisitions, increased selling and marketing expenses and the impact of charges related to our transformation initiatives. The increase was partially offset by the impact of foreign currency, operating efficiencies as a result of our continued successful execution on our broader transformation initiatives and costs related to proxy contest matters in fiscal 2018.

Operating expenses, as reported, increased2% and 4% for the three and nine months endedMarch 31, 2019, respectively, as compared to the three and nine months endedMarch 31, 2018, respectively. PEO Services benefits pass-through costs were $684.5 million and $626.4 million for the three months ended March 31, 2019 and 2018, respectively, and $2,011.1 million and $1,828.7 million for the nine months endedMarch 31, 2019 and 2018, respectively. Additionally, operating expenses increased due to costs related to our acquisitions partially offset by the impact of foreign currency and operating efficiencies as a result of our continued successful execution on our broader transformation initiatives.

Systems development and programming costs, as reported, decreased2% for the three and nine months endedMarch 31, 2019, when compared to the prior year, due to the impact of foreign currency translation and reduced costs as a result of our transformation initiatives partially offset by increased investments in product innovation, primarily in our Next Gen platforms.

Selling, general and administrative expenses, as reported, was flat for the three months endedMarch 31, 2019, as compared to the three months ended March 31, 2018. This was primarily due to increased selling and marketing expenses and increased costs related to our acquisitions offset by the decrease in charges related to transformation initiatives and the impact of foreign currency translation for the three months endedMarch 31, 2019.

Selling, general and administrative expenses, as reported, increased3%for thenine months endedMarch 31, 2019, as compared to the nine months endedMarch 31, 2018. The increase was due to increased selling and marketing expenses and increased costs related to our acquisitions and transformation initiatives. These increases were partially offset by efficiencies as a result of our transformation initiatives and the impact of foreign currency translation for thenine months endedMarch 31, 2019 and costs related to proxy contest matters during the nine months endedMarch 31, 2018.

Other Income, net

	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	)

During the three and nine months endedMarch 31, 2019, we adopted Accounting Standards Update ("ASU") 2017-07 and as a result we 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. During the three months ended March 31, 2019, non-service components of pension expense included a $7.8 million non-cash settlement charge and special termination benefits, partially offset by $13.7 million related to other components of net periodic pension cost. During the nine months endedMarch 31, 2019, non-service components of pension expense included a $35.9 million non-cash settlement charge and special termination benefits, partially offset by $41.2 million related to other components of net periodic pension cost. See Note 2 and Note 12 of our Consolidated Financial Statements for additional detail.

Other income, net, decreased $6.2 million and $40.4 million for the three and nine months endedMarch 31, 2019, as compared to the three and nine months endedMarch 31, 2018. The decrease was primarily due to the charges within non-service

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components of pension expense discussed above partially offset by the gain on sale of assets of $4.1 million in relation to the Service Alignment Initiative during the three months ended December 31, 2018. Additionally, during the three months ended September 30, 2018, we 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.

Earnings before Income Taxes

Earnings before income taxes, as reported, increased12% and 17% for the three and nine months endedMarch 31, 2019, respectively, primarily due to the increases in revenues partially offset by increases in expenses discussed above.

Overall margin increased from 23.7% for the three months ended March 31, 2018 to 25.6% for the three months ended March 31, 2019, primarily due to operational efficiencies aided by an increase in interest earned on funds held for clients and a decrease in charges of $16.9 million related to our transformation initiatives, partially offset by incremental pressure from growth in our benefits pass-throughs, increased selling and marketing expenses and costs related to our acquisitions during the three months ended March 31, 2019. The efficiencies driving margin performance are the result of our continued successful execution of our broader transformation initiatives, including VERP and improvements in our systems infrastructure spend and automation efforts.

Overall margin increased from 20.3% for the nine months endedMarch 31, 2018 to 22.2% for the nine months endedMarch 31, 2019, primarily due to operational efficiencies aided by an increase in interest earned on funds held for clients, and the impact of costs related to proxy contest matters in fiscal 2018, partially offset by additional charges of $52.6 million related to our transformation initiatives, incremental pressure from growth in our benefits pass-throughs, increased selling and marketing expenses and costs related to our acquisitions during the nine months endedMarch 31, 2019. The efficiencies driving margin performance are the result of our continued successful execution of our broader transformation initiatives, including VERP and improvements in our systems infrastructure spend and automation efforts.

Adjusted EBIT

For the three and nine months endedMarch 31, 2019, adjusted EBIT increased 10% and 17%, respectively, due to the increases in revenues offset by the increases in expenses discussed above. Overall adjusted EBIT margin increased due to operational efficiencies discussed above, aided by an increase in interest earned on funds held for clients, partially offset by incremental pressure from growth in our benefits pass-throughs, increased selling and marketing expenses and costs related to our acquisitions.

Provision for 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 IRS in the three months ended March 31, 2018.

The effective tax rate for the nine months endedMarch 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 endedMarch 31, 2018 and the loss of qualified production activities tax deductions as a result of the Act during the nine months endedMarch 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. Refer to Note 13, within the Notes to the Consolidated Financial Statements for further discussion.

Adjusted Provision for Income Taxes

The adjusted effective tax rate for the three months ended March 31, 2019 and 2018 was 23.5% and 24.0%, respectively. The drivers of the decrease in the adjusted effective tax rate are the same as the effective tax rate as discussed above.

The adjusted effective tax rate for the nine months endedMarch 31, 2019 and 2018 was 23.5% and 25.3%, respectively. The decrease in the adjusted 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%, partially offset by the loss of qualified production activities tax deductions as a

37

result of the Act in the nine months endedMarch 31, 2019, the release of reserves for uncertain tax positions and the benefit of a tax accounting method change filed with the IRS in the nine months endedMarch 31, 2018.

Net Earnings and Diluted Earnings per Share

Net earnings, as reported, increased 14% for the three months ended March 31, 2019 due to an increase in earnings before income taxes combined with the reduction in our effective tax rate described above when compared to the three months ended March 31, 2018.

Net earnings, as reported, increased 4% for the nine months endedMarch 31, 2019 due to an increase in earnings before income taxes described above partially offset by an increase in our effective tax rate, when compared to the nine months endedMarch 31, 2018.

For the three and nine months endedMarch 31, 2019, diluted earnings per share increased16% and 6%, respectively, as a result of an increase in net earnings and the impact of fewer shares outstanding, resulting from the repurchase of approximately 5.4 million shares during the nine months endedMarch 31, 2019 and 5.3 million shares for the nine months endedMarch 31, 2018, partially offset by the issuances of shares under our employee benefit plans.

Adjusted Net Earnings and Adjusted Diluted Earnings per Share

Adjusted net earnings increased 11% for the three months ended March 31, 2019, when compared to the three months ended March 31, 2018, due to the increase in adjusted EBIT combined with the reduction in our adjusted effective tax rate described above.

Adjusted net earnings increased 20% for the nine months endedMarch 31, 2019, when compared to the nine months endedMarch 31, 2018, due to the increase in adjusted EBIT combined with the reduction in our adjusted effective tax rate described above.

For the three and nine months endedMarch 31, 2019, our adjusted diluted EPS increased 13% and 22%, respectively, and reflects the changes described above in our adjusted net earnings and shares outstanding.

Analysis of Reportable Segments

Beginning in the first quarter of fiscal 2019, our chief operating decision maker (“CODM”) reviews segment results reported at actual interest rates and the results of the PEO segment inclusive of the results of ADP Indemnity. Additionally, the CODM reviews results with the effects of changes to certain corporate allocations. These changes represent a change in the measure of segment performance. Effective July 1, 2018, we adopted ASC 606 (see Note 2 of the Consolidated Financial Statements). The segment results in the table below reflect the impacts of the adoption of ASC 606, the inclusion of client funds interest in our segments at actual interest rates, the inclusion of ADP Indemnity in the PEO segment, and changes to certain corporate allocations. We reflected these new segment measures beginning in the first quarter of fiscal 2019 and prior period segment results are restated for comparability.

	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	%

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	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	%

n/m - not meaningful

Employer Services

Revenues

Employer Services' revenues, as reported, increased 3% for the three months ended March 31, 2019, as compared to the three months ended March 31, 2018. Revenues increased primarily due to new business started from New Business Bookings and continued strong retention. Our revenue growth includes one percentage point of pressure from foreign currency partially offset by benefits from acquisitions. Our revenues also increased due to the interest earned on funds held for clients, which benefited from improvement in the average yield earned on our client fund investments and growth in average client funds balances, and an increase in the number of employees on our clients’ payrolls as our pays per control increased 3.1% for the three months ended March 31, 2019 as compared to the three months ended March 31, 2018. Our pays per control metric measures the number of employees on our clients' payrolls as measured on a same-store-sales basis utilizing a representative subset of payrolls ranging from small to large businesses that are reflective of a broad range of U.S. geographic regions.

Employer Services' revenues, as reported, increased 6% for the nine months endedMarch 31, 2019, as compared to the nine months endedMarch 31, 2018. Revenues increased primarily due to new business started from New Business Bookings and continued strong retention. Our revenue growth includes one percentage point of pressure from foreign currency offset by benefits from acquisitions. Our revenues also increased due to the interest earned on funds held for clients, which benefited from improvement in the average yield earned on our client fund investments and growth in average client funds balances, and an increase in the number of employees on our clients’ payrolls as our pays per control increased 2.3% for the nine months endedMarch 31, 2019 as compared to the nine months endedMarch 31, 2018.

Earnings before Income Taxes

Employer Services’ earnings before income taxes, as reported, increased 11% for the three months ended March 31, 2019, as compared to the three months ended March 31, 2018. This increase was due to increased revenues discussed above combined with decreased expenses primarily due to operating efficiencies and impact from foreign currency partially offset by increased selling and marketing expenses and cost related to our acquisitions.

Employer Services' overall margin increased from 33.1% to 35.4% for the three months ended March 31, 2019, as compared to the three months ended March 31, 2018. This increase was primarily due to operating efficiencies aided by an increase in interest earned on funds held for clients, partially offset by increased selling and marketing expenses and costs related to our acquisitions in the three months ended March 31, 2019. The efficiencies driving margin performance are the result of our continued successful execution of our broader transformation initiatives, including VERP and improvements in our systems infrastructure spend and automation efforts.

Employer Services’ earnings before income taxes, as reported, increased 17% for the nine months endedMarch 31, 2019, as compared to the nine months endedMarch 31, 2018. This increase was due to increased revenues discussed above and partially offset by an increase in expenses of $57.4 million, which were primarily due to costs related to our acquisitions, increased selling and marketing expenses offset by operating efficiencies and impact from foreign currency.

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Employer Services' overall margin increased from 28.0% to 31.1% for the nine months endedMarch 31, 2019, as compared to the nine months endedMarch 31, 2018. This increase was primarily due to operating efficiencies aided by an increase in interest earned on funds held for clients, partially offset by increased selling and marketing expenses and costs related to our acquisitions in the nine months endedMarch 31, 2019. The efficiencies driving margin performance are the result of our continued successful execution of our broader transformation initiatives, including VERP and improvements in our systems infrastructure spend and automation efforts.

PEO Services

Revenues

PEO Services' revenues, as reported, increased 6% and 9%, respectively, for the three and nine months endedMarch 31, 2019, as compared to the three and nine months endedMarch 31, 2018. PEO Services' revenues, excluding benefits pass-through costs, increased from $440.9 million and $1,080.8 million for the three and nine months endedMarch 31, 2018, respectively, to $450.2 million and $1,169.6 million for the three and nine months endedMarch 31, 2019, respectively. The increase was due to an 8% and 9%increase in the average number of Worksite Employees for the three and nine months endedMarch 31, 2019, respectively, driven by an increase in the number of new PEO Services clients and growth in our existing clients. The increase for the three months ended March 31, 2019 was partially offset by the pull-forward of our State Unemployment Insurance (“SUI”) revenues in the second quarter of fiscal 2019.

PEO Services' revenues include benefits pass-through costs associated with benefits coverage which increased to $684.5 million and $2,011.1 million for the three and nine months endedMarch 31, 2019, respectively, from $626.4 million and $1,828.7 million for the three and nine months endedMarch 31, 2018, respectively.

Earnings before Income Taxes

PEO Services' earnings before income taxes increased 6% for the three months ended March 31, 2019, as compared to the three months ended March 31, 2018. The increase was due to the increased revenues discussed above offset by an increase in expenses of $58.8 million. The increase in expenses was primarily related to an increase in benefits pass-through costs of $58.1 million described above.

PEO Services' overall margin decreased from 13.8% to 13.7% for the three months ended March 31, 2019, as compared to the three months ended March 31, 2018, due to increased selling expenses and changes in our estimated incurred losses related to ADP Indemnity in the three months ended March 31, 2019, as compared to the three months ended March 31, 2018.

PEO Services' earnings before income taxes increased 14% for the nine months endedMarch 31, 2019, as compared to the nine months endedMarch 31, 2018. The increase was due to the increased revenues discussed above offset by an increase in expenses of $216.2 million. The increase in expenses was primarily related to an increase in benefits pass-through costs of $182.4 million described above.

PEO Services' overall margin increased from 13.9% to 14.4% for the nine months endedMarch 31, 2019, as compared to the nine months endedMarch 31, 2018, due to operating efficiencies partially offset by increased selling expenses and changes in our estimated incurred losses related to ADP Indemnity in the nine months endedMarch 31, 2019, as compared to the nine months endedMarch 31, 2018.

ADP Indemnity provides workers' compensation and employer's liability deductible reimbursement insurance protection for PEO Services' Worksite Employees up to $1 million per occurrence. PEO Services has secured a workers’ compensation and employer’s liability insurance policy that has a $1 million per occurrence retention and, in fiscal years 2012 and prior, aggregate stop loss insurance that covers any aggregate losses within the $1 million retention that collectively exceed a certain level, from an admitted and licensed insurance company of AIG. We utilize historical loss experience and actuarial judgment to determine the estimated claim liability, and changes in estimated ultimate incurred losses are included in the PEO segment. ADP Indemnity recorded a pre-tax benefit of approximately $6.0 million and $16.4 million for the three and nine months endedMarch 31, 2019, respectively, compared to $9.4 million and $28.4 million for the three and nine months endedMarch 31, 2018, respectively, which is primarily a result of changes in our estimated incurred losses. For the fiscal years 2013 to 2018, ADP Indemnity paid premiums to enter into reinsurance arrangements with ACE American Insurance Company, a wholly-owned subsidiary of Chubb Limited, to cover substantially all losses incurred by ADP Indemnity during these policy years. Each of these reinsurance arrangements limits our overall exposure incurred up to a certain limit. We believe the likelihood of ultimate losses exceeding this limit is remote. For the nine months endedMarch 31, 2019, ADP Indemnity paid a premium of $218.0

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million to enter into a reinsurance arrangement with Chubb Limited to cover substantially all losses incurred by ADP Indemnity for the fiscal 2019 policy year on terms substantially similar to the fiscal 2018 reinsurance policy.

Other

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.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

For corporate liquidity, we expect existing cash, cash equivalents, short-term marketable securities, long-term marketable securities, and cash flow from operations, together with our $9.8 billion of committed credit facilities and our ability to access both long-term and short-term debt financing from the capital markets, will be adequate to meet our operating, investing, and financing activities such as our regular quarterly dividends, share repurchases, and capital expenditures. Additionally, we will benefit from the Act and our estimated fiscal 2019 adjusted effective tax rate is 23.8%.

For client funds liquidity, we have the ability to borrow through our financing arrangements under our U.S. short-term commercial paper program and our U.S., Canadian and United Kingdom short-term reverse repurchase agreements together with our $9.8 billion of committed credit facilities and our ability to use corporate liquidity when necessary to meet short-term funding requirements related to client funds obligations. Please see “Quantitative and Qualitative Disclosures about Market Risk” for a further discussion of the risks of our client funds extended investment strategy. See Note 10 of our Consolidated Financial Statements for a description of our short-term financing including commercial paper.

As of March 31, 2019, cash and cash equivalents were $1.8 billion, which were primarily invested in time deposits and money market funds.

Operating, Investing and Financing Cash Flows

Our cash flows from operating, investing, and financing activities, as reflected in the Statements of Consolidated Cash Flows for the nine months endedMarch 31, 2019 and 2018, respectively, are summarized as follows:

	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

Net cash flows provided by operating activities for the nine months endedMarch 31, 2019 and March 31, 2018 include cash payments for reinsurance agreements of $218.0 million and $235.0 million, respectively, which represent the policy premium for the entire fiscal year. The increase in operating cash provided is primarily due to growth in our business offset by a net decrease in the components of working capital as compared to the nine months endedMarch 31, 2018.

Net cash flows from investing activities changed primarily due to the timing of net proceeds from corporate and client funds marketable securities of $355.0 million, lower payments made related to acquisitions and reduced capital expenditures partially offset by the payments made related to acquisitions of intangibles in the nine months endedMarch 31, 2019.

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Net cash flows from financing activities changed primarily due to a net increase in client fund obligations of $1,911.8 million, which is due to the timing of impounds from our clients and payments to our clients' employees and other payees, more cash returned to shareholders via dividends and share repurchases for the nine months endedMarch 31, 2019.

We purchased 5.4 million shares of our common stock at an average price per share of $139.11 during the nine months endedMarch 31, 2019, as compared to purchases of 5.3 million shares at an average price per share of $110.79 during the nine months endedMarch 31, 2018. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase programs. 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.

Capital Resources and Client Funds Obligations

We have $2.0 billion of senior unsecured notes with maturity dates in 2020 and 2025. We may from time to time revisit the long-term debt market to refinance existing debt, finance investments including acquisitions for our growth, and maintain the appropriate capital structure. However, there can be no assurance that volatility in the global capital and credit markets would not impair our ability to access these markets on terms acceptable to us, or at all. See Note 11 of our Consolidated Financial Statements for a description of our long-term financing.

Our 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. Our commercial paper program is rated A-1+ by Standard & Poor’s and Prime-1 (“P-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, our average daily borrowings were $1.1 billion and $1.0 billion, respectively, at weighted average interest rates of 2.4% and 1.5%, respectively. For the nine months endedMarch 31, 2019 and 2018, our average daily borrowings were $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 our commercial paper during the three and nine months endedMarch 31, 2019 was approximately one day and two days, respectively.

Our 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. We have successfully borrowed through the use of reverse repurchase agreements on an as-needed basis to meet short-term funding requirements related to client funds obligations. At March 31, 2019 and June 30, 2018, there were no outstanding obligations related to the reverse repurchase agreements. For the three months ended March 31, 2019 and 2018, we had average outstanding balances under reverse repurchase agreements of $93.1 million and $99.0 million, at weighted average interest rates of 1.8% and 1.2%, respectively. For the nine months endedMarch 31, 2019 and 2018, we 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.

We vary the maturities of our committed credit facilities to limit the refinancing risk of any one facility. We have a $3.8 billion, 364-day credit agreement that matures in June 2019 with a one year term-out option. In addition, we have a five-year $2.25 billion credit facility and a five-year $3.75 billion credit facility maturing in June 2022 and June 2023, respectively, each with an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary.  We had no borrowings through March 31, 2019 under the credit facilities. We believe that we currently meet all conditions set forth in the revolving credit agreements to borrow thereunder and we are not aware of any conditions that would prevent us from borrowing part or all of the $9.8 billion available to us under the revolving credit agreements. See Note 10 of our Consolidated Financial Statements for a description of our short-term financing including credit facilities.

Our investment portfolio does not contain any asset-backed securities with underlying collateral of sub-prime mortgages, alternative-A mortgages, sub-prime auto loans or sub-prime home equity loans, collateralized debt obligations, collateralized loan obligations, credit default swaps, derivatives, auction rate securities, structured investment vehicles or non-investment grade fixed-income securities. We own AAA-rated senior tranches of fixed rate credit card, auto loan, equipment lease and rate

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reduction receivables, secured predominantly by prime collateral. All collateral on asset-backed securities is performing as expected. In addition, we own senior debt directly issued by Federal Home Loan Banks and Federal Farm Credit Banks.  Our client funds investment strategy is structured to allow us to average our way through an interest rate cycle by laddering the maturities of our investments out to five years (in the case of the extended portfolio) and out to ten years (in the case of the long portfolio). This investment strategy is supported by our short-term financing arrangements necessary to satisfy short-term funding requirements relating to client funds obligations. See Note 8 of our Consolidated Financial Statements for a description of our corporate investments and funds held for clients.

Capital expenditures for the nine months endedMarch 31, 2019 were $116.8 million, as compared to $143.4 million for the nine months endedMarch 31, 2018.  Capital expenditures for fiscal 2019 are expected to be about $180 million, as compared to $192 million in fiscal 2018.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our overall investment portfolio is comprised of corporate investments (cash and cash equivalents, short-term and long-term marketable securities) and client funds assets (funds that have been collected from clients but have not yet been remitted to the applicable tax authorities or client employees).

Our corporate investments are invested in cash and cash equivalents and highly liquid, investment-grade marketable securities. These assets are available for repurchases of common stock for treasury and/or acquisitions, as well as other corporate operating purposes. All of our short-term and long-term fixed-income securities are classified as available-for-sale securities.

Our client funds assets are invested with safety of principal, liquidity, and diversification as the primary objectives. Consistent with those objectives, we also seek to maximize interest income and to minimize the volatility of interest income.  Client funds assets are invested in highly liquid, investment-grade marketable securities, with a maximum maturity of 10 years at the time of purchase, and money market securities and other cash equivalents.  

We utilize a strategy by which we extend the maturities of our investment portfolio for funds held for clients and employ short-term financing arrangements to satisfy our short-term funding requirements related to client funds obligations. Our client funds investment strategy is structured to allow us to average our way through an interest rate cycle by laddering the maturities of our investments out to five years (in the case of the extended portfolio) and out to ten years (in the case of the long portfolio). As part of our client funds investment strategy, we use the daily collection of funds from our clients to satisfy other unrelated client funds obligations, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. We minimize the risk of not having funds collected from a client available at the time such client’s obligation becomes due by impounding, in virtually all instances, the client’s funds in advance of the timing of payment of such client’s obligation. As a result of this practice, we have consistently maintained the required level of client funds assets to satisfy all of our obligations.

There are inherent risks and uncertainties involving our investment strategy relating to our client funds assets.  Such risks include liquidity risk, including the risk associated with our ability to liquidate, if necessary, our available-for-sale securities in a timely manner in order to satisfy our client funds obligations. However, our investments are made with the safety of principal, liquidity, and diversification as the primary goals to minimize the risk of not having sufficient funds to satisfy all of our client funds obligations.  We also believe we have significantly reduced the risk of not having sufficient funds to satisfy our client funds obligations by consistently maintaining access to other sources of liquidity, including our corporate cash balances, available borrowings under our $9.8 billion commercial paper program (rated A-1+ by Standard and Poor’s and P-1 by Moody’s, the highest possible credit ratings), and ability to engage in reverse repurchase transactions and available borrowings under our $9.8 billion committed credit facilities. The reduced availability of financing during periods of economic turmoil, even to borrowers with the highest credit ratings, may limit our ability to access short-term debt markets to meet the liquidity needs of our business. In addition to liquidity risk, our investments are subject to interest rate risk and credit risk, as discussed below.

We have established credit quality, maturity, and exposure limits for our investments. The minimum allowed credit rating at time of purchase for corporate, Canadian government agency and Canadian provincial bonds is BBB, for asset-backed securities is AAA, and for municipal bonds is A. The maximum maturity at time of purchase for BBB-rated securities is 5 years, for single A rated securities is 7 years, and for AA-rated and AAA-rated securities is 10 years. Time deposits and commercial paper must be rated A-1 and/or P-1. Money market funds must be rated AAA/Aaa-mf.

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Details regarding our overall investment portfolio are as follows:

	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

We are exposed to interest rate risk in relation to securities that mature, as the proceeds from maturing securities are reinvested. Factors that influence the earnings impact of interest rate changes include, among others, the amount of invested funds and the overall portfolio mix between short-term and long-term investments. This mix varies during the fiscal year and is impacted by daily interest rate changes.  The annualized interest rates earned on our entire portfolio increased from 1.8% for the nine months endedMarch 31, 2018 to 2.2% for the nine months endedMarch 31, 2019. A hypothetical change in both short-term interest rates (e.g., overnight interest rates or the federal funds rate) and intermediate-term interest rates of 25 basis points applied to the estimated average investment balances and any related short-term borrowings would result in approximately a $12 million impact to earnings before income taxes over the ensuing twelve-month period ending March 31, 2020.  A hypothetical change in only short-term interest rates of 25 basis points applied to the estimated average short-term investment balances and any related short-term borrowings would result in approximately a $5 million impact to earnings before income taxes over the ensuing twelve-month period ending March 31, 2020.

We are exposed to credit risk in connection with our available-for-sale securities through the possible inability of the borrowers to meet the terms of the securities. We limit credit risk by investing in investment-grade securities, primarily AAA and AA-rated securities, as rated by Moody’s, Standard & Poor’s, DBRS for Canadian dollar denominated securities, and Fitch for asset-backed and commercial mortgage backed securities. Approximately 80% of our available-for-sale securities held a AAA or AA rating at March 31, 2019. In addition, we limit amounts that can be invested in any security other than U.S. government and government agency, Canadian government, and United Kingdom government securities.

We operate and transact business in various foreign jurisdictions and are therefore exposed to market risk from changes in foreign currency exchange rates that could impact our consolidated results of operations, financial position, or cash flows. We manage our exposure to these market risks through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. We may use derivative financial instruments as risk management tools and not for trading purposes. We had no derivative financial instruments outstanding at March 31, 2019.

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NEW ACCOUNTING PRONOUNCEMENTS

See Note 2, New Accounting Pronouncements, of Notes to the Consolidated Financial Statements for a discussion of recent accounting pronouncements.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The information called for by this item is provided under the caption “Quantitative and Qualitative Disclosures about Market Risk” under Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations.

Item 4.  Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of the Company's management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “evaluation”).  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.  Based on the evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures were effective as of March 31, 2019 in ensuring that (i) information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure and (ii) such information is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission's rules and forms.

There was no change in the Company's internal control over financial reporting that occurred during the three months ended March 31, 2019 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II.  OTHER INFORMATION

Except as noted below, all other items are either inapplicable or would result in negative responses and, therefore, have been omitted.

Item 1.  Legal Proceedings

In the normal course of business, the Company is subject to various claims and litigation.  While the outcome of any litigation is inherently unpredictable, the Company believes it has valid defenses with respect to the legal matters pending against it and the Company believes that the ultimate resolution of these matters will not have a material adverse impact on its financial condition, results of operations, or cash flows.

Item 1A.  Risk Factors

There have been no material changes in our risk factors disclosed in Part 1, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended June 30, 2018.

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Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

Issuer Purchases of Equity Securities

	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

(1)  During the three months ended March 31, 2019, pursuant to the terms of the Company's restricted stock program, the Company purchased 17,292 shares at the then market value of the shares in connection with the vesting of restricted shares of employees under such program to satisfy certain tax withholding requirements through the delivery of shares to the Company instead of cash.

(2)  The Company announced the Board of Directors' approval to repurchase the shares of our common stock included in the table above as follows:

Date of Approval	Shares
August 2015	25 million

There is no expiration date for the common stock repurchase plan.

Item 5.  Other Information

In connection with his departure from the Company on June 30, 2019, Jan Siegmund entered into a separation agreement and release, dated April 29, 2019, which sets forth the terms of his separation and release in accordance with the Company’s Corporate Officer Severance Plan.  A copy of the separation agreement and release is filed as Exhibit 10.2 hereto and incorporated herein by reference.

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Item 6.  Exhibits

Exhibit Number	Exhibit
10.1	Offer Letter, dated as of March 1, 2019, between Automatic Data Processing, Inc. and Kathleen Winters
10.2	Separation Agreement and Release, dated April 29, 2019, by and between Jan Siegmund and Automatic Data Processing, Inc.
31.1	Certification by Carlos A. Rodriguez pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
31.2	Certification by Kathleen A. Winters pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
32.1	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
32.2	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

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		AUTOMATIC DATA PROCESSING, INC. (Registrant)
Date:	May 3, 2019	/s/ Kathleen A. Winters Kathleen A. Winters
		Chief Financial Officer (Title)

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EX-10.1

Automatic Data Processing, Inc.

One ADP Boulevard

Roseland, New Jersey 07068-1728

(973) 974-5000

March 1, 2019

Kathleen Winters

[Address]

Dear Kathleen:

I have outlined below the terms with respect to you taking the position of Chief Financial Officer reporting to me. You will have all duties and responsibilities commensurate with your title and at all times shall be the senior most executive in charge of the finance function for ADP. We anticipate your start date will be no later than April 15, 2019. The proposed compensation set forth below has been reviewed by ADP’s Compensation Committee and this letter serves as a conditional offer, subject to approval by our full Board of Directors and our receipt of a successful completion of Korn Ferry assessment with acceptable match to the Chief Financial Officer profile.

The components of this offer are as follows:

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.

We hope you view this offer as our genuine confidence in your skills and ability, and we are delighted with the prospect of your joining the ADP team. If you are in agreement with the terms stipulated above, please sign a copy of this document and return an original to Tara Wolckenhauer.

Sincerely,

/s/Carlos Rodriguez

Carlos Rodriguez

President and Chief Executive Officer

Agreed to:

/s/Kathleen Winters    

Kathleen Winters

cc:    Sreeni Kutam

Zafer Datoo

Tara Wolckenhauer

EX-10.2

SEPARATION AGREEMENT AND RELEASE

This Separation Agreement and General Release (hereinafter, the “Agreement”) is made and entered into this 29th day of April, 2019 by and between Jan Siegmund (hereinafter referred to as “Executive”), and Automatic Data Processing, Inc. (hereinafter referred to as the “Company”).

In exchange for the mutual promises contained herein and pursuant to the Automatic Data Processing, Inc. Corporate Officer Severance Plan (the “Corporate Officer Severance Plan”), Executive and the Company, intending to be bound hereby, covenant and agree as follows:

1.Executive is a participant in the Corporate Officer Severance Plan. The parties agree that for the purposes of facilitating an amicable separation of Executive from the Company, Company is treating Executive’s termination as a “Qualifying Termination” under the Corporate Officer Severance Plan, which treatment would entitle Executive to the benefits and obligations as set forth therein. Executive’s employment with the Company will terminate at the close of business on June 30, 2019 (the “Separation Date”). As of July 1, 2019, Executive will cease to be an officer of the Company.

2.The Company and Executive further agree to the following:

(a)The Company will pay Executive a separation payment in the total gross amount of $1,071,600.00. Except as set forth in this paragraph 2(a), this separation payment shall be paid out in pro-rata equal installments in accordance with the Company’s payroll practices (which equals $59,533.33 for each month (such aggregate monthly amount is the “Monthly Installments”)) between the Separation Date and the 18-month anniversary of the Separation Date. The Monthly Installments shall be made on the Company’s regular pay dates. Notwithstanding the foregoing, no installment shall be paid until Executive has executed and delivered to the Company a Restrictive

Covenant Agreement and a Release (and the time to revoke has passed) as set forth in paragraphs 3(b) and 7(a) below. However, the first installment shall be in an amount that covers the period of time from the Separation Date through the date of such first payment.

(b)Executive shall be entitled to be paid a bonus (based upon a full year target bonus of $714,400.00) in respect of FY’19, based on actual performance for the full fiscal year as set forth in Section 1.17 of the Corporate Officer Severance Plan; such bonus shall be paid to Executive in accordance with the Company’s customary cycle.

(c)With respect to the Company’s performance stock unit program, the Executive shall be entitled to receive: (i) the share units and dividend equivalents earned in respect of the original September 2016 target award of 14,553 PSUs (which target award includes dividend equivalents as of April 10, 2019 and will be adjusted for future quarterly dividend equivalents), subject to the achievement of the Company’s performance goals applicable to such award, with any such award to be paid within 20 business days of September 1, 2019, (ii) the share units and dividend equivalents earned in respect of the original September 2017 target award of 16,917 PSUs (which target award includes dividend equivalents as of April 10, 2019 and will be adjusted for future quarterly dividend equivalents), subject to the achievement of the Company’s performance goals applicable to such award, with any such award to be paid within 20 business days of September 1, 2020, and (iii) 30/36 of the share units and dividend equivalents earned in respect of the original September 2018 target award of 14,533 PSUs (which target award includes dividend equivalents as of April 10, 2019 and will be adjusted for future quarterly dividend equivalents), subject to the achievement of the Company’s performance goals applicable to such award, with any such award to be paid within 20 business days of September 1, 2021. All other terms of the PSU program shall remain in full force and effect.

(d)With respect to the Company’s time-based restricted stock (“TBRS”) award, the Executive shall be entitled to receive: (i) 4,247 shares, for the share units granted on July 1, 2014, to vest on July 1, 2019; (ii) 2,493 shares, for the share units granted on June 30, 2015, to vest on June 30, 2019; (iii) 3,858 shares, for the share units granted on September 14, 2015, to vest on July 1, 2019; and (iv) 2,842 shares, for the share units granted on August 2, 2016, to vest on July 1, 2019.

(e)All outstanding unvested ADP stock options previously granted to Executive will continue to vest in accordance with their terms through September 1, 2022, and Executive shall have until January 31, 2024 to exercise any outstanding vested options. Notwithstanding the foregoing, all vested stock options must be exercised prior to their original expiration date, regardless of the exercise periods set forth herein. All vested stock options that are not exercised within the time periods set forth above will be cancelled.

(f)Executive understands and acknowledges that the terms and conditions of the 2019 10b5-1 Trading Plan executed with Fidelity Investments will remain in full force and effect for calendar year 2019 subject to earlier termination in accordance with the Terms and Conditions of such 10b5-1 Trading Plan. Further, Executive understands and acknowledges that for a period of six (6) months following the Separation Date he will continue to be a “Restricted Person” as such term is used in the Company’s Insider Trading Policy, and he will continue to abide by all rules and limitations applicable thereunder to Restricted Persons.

(g)The Company will timely pay Executive all of the “Accrued Obligations” (as defined in the Corporate Officer Severance Plan) including without limitation Executive’s accrued base salary and unused vacation (which for avoidance of doubt includes all then accrued vacation) as of the Separation Date.

(h)The Company will reimburse Executive for outstanding expenses properly incurred through the Separation Date that are submitted to the Company no later than the thirty (30) days following the Separation Date. All such expenses will be reimbursed in accordance with the Company’s existing policy.

(i)The Company will allow Executive to keep the car leased to him by the Company under the Company’s Executive Fleet Program through the 18-month anniversary of the Separation Date; upon such 18-month anniversary, Executive shall either return such car to Company or purchase such car in accordance with the terms of the Executive Fleet Program. ADP’s Director of Global Fleet Management will coordinate the details of such transfer with Executive.

(j)Executive (if you are under age 65) and/or any eligible dependents will be eligible to enroll in the ADP Executive Retiree Health Plan (the “Retiree Health Plan”) as of July 1, 2019, in accordance with the terms of the Retiree Health Plan, which has not been modified in any way by this Agreement. Executive’s welfare benefits (medical, dental, vision, wellness, life, long-term disability, Flexible Spending Accounts (“FSA”), Accidental Death & Dismemberment Insurance, Business Travel Accident Insurance, Personal Accident Insurance and any other welfare benefits the Company may provide) will terminate effective as of the close of the Separation Date. This paragraph (i) shall not be deemed to affect the conversion rights under any life insurance plans. To the extent he participates in such plans as of the Separation Date, Executive will have the right to continue medical, dental, prescription drug, vision and FSA benefits as permitted by law under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) and will not incur a break in service if he elects COBRA. Executive will be separately notified of conversion privileges, if any, for Executive’s other health and welfare benefits. Unless otherwise specifically stated herein, nothing in the Agreement constitutes a waiver of any claim for health or long term disability benefits that

accrue prior to the Separation Date. Such claims will be processed according to the terms and conditions of the controlling plan documents. Those plans have not been modified in any way by the Agreement.

(k)For purposes of the Automatic Data Processing, Inc. Retirement and Savings Plan and/or the Automatic Data Processing, Inc. Pension Retirement Plan (collectively referred to as the “Plans”), Executive will be considered a terminated employee as of the close of the Separation Date. As such, contributions, vesting, matches and other service based benefits, rights and features accorded to employees will terminate as of the close of the Separation Date. All the terms and conditions of the Plans will be governed by the controlling plan documents. The Plans have not been modified in any way by the Agreement.

(l)Executive’s participation in the Automatic Data Processing, Inc. Amended and Restated Employees’ Savings-Stock Purchase Plan (the “Purchase Plan”) will end as of the close of the Separation Date. Executive shall be issued stock and/or reimbursed for payments made to the Purchase Plan in accordance with its terms.

(m)Executive agrees to abide by all of the terms and conditions of agreements with the Company executed in connection with all ADP stock options, restricted stock or PSU awards previously granted to Executive (the “Stock Agreements”), and that any non-competition period, as defined in any such Stock Agreements, shall not terminate until 12 months after the last Monthly Installment payment under paragraph 2(a) hereunder. Any use of the term “Restrictive Covenant” in the Agreement shall mean any non-competition, non-solicitation, non- disparagement, non-disclosure or confidentiality obligations reflected in the provisions of this Agreement or any other agreement with the Company that Executive has entered into, or any Company plan, policy or arrangement that applies to Executive. If Executive violates any Restrictive Covenant prior to either

the payment of any amounts under this Agreement or the vesting of any rights or lapsing of any restrictions on any ADP equity as described hereunder (and as further set forth in paragraph 2(n) hereunder specifically regarding the SORP), then, in addition to the exercise of any other rights the Company may have as a consequence of such breach, Executive will have immediately forfeited the receipt of any cash payments otherwise owing hereunder as well as the benefit of the vesting of any rights or lapsing of any restrictions on any ADP equity Executive would otherwise expect to receive hereunder.

(n)Executive is a “Participant” as defined in the Automatic Data Processing, Inc. Amended and Restated Supplemental Officer Retirement Plan (the “SORP”). Executive’s benefits under the SORP shall be determined in accordance with, and under the terms of, the SORP. Among other things, the SORP provides that if a participant violates the non-competition provisions of any agreement he has entered into with the Company within 24 months after the Separation Date, such Participant shall forever and irrevocably forfeit all benefits otherwise due him under the terms of the SORP. The SORP will not have been deemed modified in any way by this Agreement. For purposes of the 24-month period of measurement under the SORP, Executive shall be considered to have terminated employment with the Company as of the Separation Date.

(o)Executive’s heirs, representatives, assigns or estate shall be entitled to any payments pursuant to paragraph 2 of this Agreement in the event of Executive’s death in accordance with Section 8.1 of the Corporate Officer Severance Plan.

(p)The Company shall withhold from any payment made under this Agreement any applicable federal, state and local taxes and social security taxes, as well as any other standard deductions.

3.Executive and the Company (which, for purposes of this paragraph 3, shall include any of the Company’s affiliates), agree to the following with the proviso exceptions herein also applying to any similar restrictive covenant:

(a)Executive agrees to notify the Company of his intent to accept any offer of employment commencing prior to the first anniversary of the last Monthly Installment payment under paragraph 2(a) hereunder for the purpose of confirming that commencing such employment will not otherwise violate a Restrictive Covenant. Specifically, Executive agrees to inform the Company of (i) the entity making such offer (including the name of the ultimate corporate parent entity, if the entity making the offer is a subsidiary or division with a different name from the ultimate parent company), and (ii) the scope of duties and title of the position to be filled, both by telephone (973-974-5000) and in writing to Sreeni Kutam, Chief Human Resources Officer, One ADP Boulevard, M/S 427, Roseland, NJ 07068, with a copy of such written communication to Michael A. Bonarti, General Counsel, One ADP Boulevard, M/S 450, Roseland, NJ 07068, or by email to sreeni.kutam@adp.com, with a copy to michael.bonarti@adp.com. Mr. Kutam or his designee will undertake to respond to Executive’s notice within five business days of receipt of Executive’s written notice.

(b)Executive shall execute and deliver to the Company a Restrictive Covenant Agreement in the form attached hereto as Exhibit A (the “Restrictive Covenant Agreement”) within 45 days of the Separation Date as required by Section 3 of the Corporate Officer Severance Plan. Should Executive fail to timely execute and deliver to the Company the Restrictive Covenant Agreement, Executive agrees that he shall not be entitled to the benefits provided under this Agreement or the Corporate Officer Severance Plan, and this Agreement shall become null and void.

(c)In addition to any further “Litigation Cooperation” requirements set forth in Section 4 of the Corporate Officer Severance Plan, Executive agrees to reasonably cooperate with the Company, and to provide all information and sign any corporate records and instruments that the Company may hereafter reasonably request with respect to any matter involving his present or former relationship with the Company (including any direct or indirectly held subsidiaries), the work he has performed, or any present or former employees or clients of the Company.

(d)In addition to any further “Litigation Cooperation” requirements set forth in Section 4 of the Corporate Officer Severance Plan, Executive agrees that if he is served with a subpoena or court order to testify with respect to any matter involving his present or former relationship with the Company, the work he has performed, or present or former employees or clients of the Company, he shall, within 5 days of receipt of such subpoena or court order, notify the “Company”, c/o Automatic Data Processing, Inc., One ADP Boulevard, Roseland, New Jersey 07068, Attention: General Counsel, unless the Executive receives written advice from his legal counsel advising that he is not legally permitted to provide such notice to the Company. If Executive does not provide such notice based upon written advice from his legal counsel that he is not legally permitted to provide such notice to the Company, Executive agrees that he will request that the person, entity, court or agency serving such subpoena or court order provide notice consistent with this paragraph 3(d).

4.Executive agrees that any waiver on the part of the Company as to compliance with any of the terms and conditions of the Agreement shall not operate as a waiver of, or estoppel with respect to, any prior, subsequent or other failure by Executive to perform his obligations under the Agreement.

5.Executive acknowledges that this, along with the other agreements referenced herein whose terms survive the Separation Date, is the entire agreement between the parties concerning the subject matter hereof. Each party acknowledges that there are no representations by the other party, oral or written, not set forth in the Agreement upon which such party relied in signing the Agreement.

6.Section 409A:

(a)The intent of the parties is that payments and benefits under this Agreement comply with or will be exempt from Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be exempt from Section 409A or in compliance therewith, as applicable.

(b)A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of employment, unless such termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A. For purposes of any such provision of this Agreement relating to any such payments or benefits, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”

(c)The parties agree and acknowledge that on Executive’s Separation Date, Executive will be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) and any payment or the provision of any benefit that is considered nonqualified deferred compensation under Section 409A payable on account of a “separation from service” which would otherwise be

made or provided during the six (6) month period following Executive’s separation from service shall instead be made or provided, in lump sum, on the first business day following the date which is the earlier of (A) the expiration of the six (6) month period measured from the date of Executive’s “separation from service,” and (B) the date of Executive’s death. Any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

(d)With respect to the payment or provision of any benefit constituting nonqualified deferred compensation subject to Section 409A (i) all expenses or other reimbursements as provided herein shall be payable in accordance with the Company’s policies in effect from time to time, but in any event shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Executive, (ii) no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year, and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchanged for another benefit.

(e)For purposes of Section 409A, Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

(f)Nothing contained in this Agreement shall constitute any representation or warranty by the Company regarding compliance with Section 409A and none of the Company, its direct or

indirect parents, subsidiaries or affiliates or any of their stockholders, employees or representatives shall have any liability to Executive with respect thereto.

7.Release:

(a)The Executive shall execute and deliver to the Company an irrevocable general release in the form attached hereto as Exhibit B (the “Release”) within 45 days of the Separation Date as required by Section 3 of the Corporate Officer Severance Plan. Should Executive fail to timely execute and deliver to the Company the Release, Executive agrees that he shall not be entitled to the benefits provided under this Agreement or the Corporate Officer Severance Plan, and this Agreement shall become null and void.

(b)Except as set forth herein, Executive acknowledges, represents and warrants that the Company owes him no other wages, commissions, bonuses, vacation pay or other compensation or payments of any nature, other than that specifically provided for in the Agreement. Executive further acknowledges that except as provided for herein, the Company shall not have any obligation to him or to any other person or entity for any other monies or benefits including, but not limited to, attorneys’ fees, car allowance, use of a Company car, relocation expenses, stock, stock options, restricted stock shares or units, stock purchase plan, pension, medical, life, short-term disability, long-term disability or other insurance, ERISA benefits, severance or any obligation set forth in any agreement of employment or other agreement with the Company, whether such agreement is express or implied.

(c)Executive warrants that as of the date hereof he is unaware of any conduct by the Company, any of its affiliates, or any of its or their employees, officers, directors, agents, carriers and shareholders and its and their predecessors, successors and assigns that he reasonably believes could form the basis of a material claim against any of them, other than those matters which may

have been previously discussed with members of the Company’s legal department in connection with any pending or threatened litigation.

8.Notification of Rights:

(a)Executive has twenty-one (21) days from his receipt of the Agreement on April 12, 2019 to consider it, and to return the signed Agreement to Michael A. Bonarti, General Counsel, Automatic Data Processing, Inc., One ADP Boulevard, M/S 450, Roseland, New Jersey 07068. In order for Executive to fully understand his statutory rights and the legal effect of a waiver by Executive of those rights, he has the right to consult with an attorney.

(b)If Executive elects to sign the Agreement it means that: (i) he has read the Agreement and understands it; (ii) he has not received any inducements to sign the Agreement other than what is set forth in the Agreement; (iii) he has had adequate opportunity to consult with an attorney of his choosing and has been advised to do so if he chooses; and (iv) he has signed the Agreement voluntarily and knowingly.

(c)Executive understands and agrees that if he chooses to sign the Agreement before the expiration of the twenty-one (21) day consideration period, he has waived the remainder of that period.

(d)After Executive has signed the Agreement, Executive may revoke his acceptance of it within seven (7) days from the date of his execution of the Agreement. Revocation must be made by submitting a written revocation by hand delivery or certified mail, return receipt requested, to Michael A. Bonarti, General Counsel, Automatic Data Processing, Inc., One ADP Boulevard, M/S 450, Roseland, New Jersey 07068. If revocation of the Agreement is not made within the seven (7) day revocation period, the Agreement will become final, binding and irrevocable on both parties (except as set forth herein in paragraphs 3(b) and 7(a)).

IN WITNESS WHEREOF, and intending to be legally bound hereby, Executive and Automatic Data Processing, Inc. have executed the foregoing Agreement.

EXECUTIVE

By: /s/ Jan Siegmund

AUTOMATIC DATA PROCESSING, INC.

By: /s/ Michael A. Bonarti, VP

RESTRICTIVE COVENANT AGREEMENT

I am a participant in the Automatic Data Processing, Inc. Corporate Officer Severance Plan, and my employment as an executive employee with Automatic Data Processing, Inc., or one of its subsidiaries or affiliated companies (collectively, “ADP”) has been terminated. While employed as an executive employee of ADP, I participated in policy decisions and enjoyed substantial compensation and benefits from ADP, including participation in its 2008 Omnibus Award Plan, and have had access to ADP’s Confidential Information, proprietary information, and trade secrets about the Business of ADP, ADP’s operations, systems, techniques, software and processes, its Clients, Business Partners, Vendors, and other unique trade and business methods, all of which are valuable assets of ADP that are developed at great effort and expense to ADP. I also have had significant contact with ADP’s current and prospective Clients, Business Partners, and/or Vendors in order to develop ADP’s goodwill and client relations so that I could promote ADP’s interests and objectives, and I understand that ADP has invested a significant amount of time and financial resources to develop my skills to assist me in performing my job duties for ADP. While these current and prospective Clients, Business Partners, and/or Vendors may be secured or serviced by ADP associates, including me, I acknowledge that such individuals or entities remain at all times those of ADP and that the goodwill engendered by the relationships is intended to inure only to the benefit of ADP; the goodwill is owned by ADP; and ADP shall be the sole beneficiary of such goodwill during and after the termination of my employment with ADP.

I understand that ADP is a profit-generating business operating in a highly competitive business environment and that it has a valid interest in protecting its valuable assets, including its Confidential Information, proprietary information, and trade secrets, its goodwill and business relationships with its Clients, Business Partners, Vendors, and employees, and the specialized training of its employees, and I recognize that my use of ADP’s valuable assets, directly or indirectly, against or in competition with ADP after my employment will result in irreparable harm to ADP. Accordingly, I understand that this Restrictive Covenant Agreement is meant to limit reasonably and fairly my competition following the end of my employment, and to define the corresponding obligations between me and ADP regarding: (1) unfair competition, (2) the solicitation of Clients, Business Partners or Vendors for or on behalf of ADP’s competitors, (3) the solicitation of ADP’s employees, and (4) the treatment of proprietary information, Confidential Information, and trade secrets.

NOW, THEREFORE, in consideration of my participation in the Automatic Data Processing, Inc. Corporate Officer Severance Plan and receipt of substantial compensation and benefits from ADP thereunder, the mutual benefits conferred herein, and for other good and valuable consideration (the receipt and sufficiency of all of which I hereby acknowledge), I agree as follows:

1.Definitions.

a.“Business of ADP” means the following businesses or services: (i) business outsourcing and human capital management solutions, including, without limitation, human resource, payroll, time, attendance and labor management, pre-employment, talent management, compliance and payment solutions, tax and benefits and retirement administration solutions and employment administration outsourcing solutions, which ADP provides globally; (ii) workers compensation and health insurance, which ADP provides in the United States and Canada through

its licensed insurance agencies and consulting services relating to its business outsourcing and human capital management solutions; and (iii) data-driven business intelligence on issues in human capital management, employment, and workforce trends.

b.“Business Partners” means any individual, corporation, limited liability company, partnership, joint venture, association, or other entity, regardless of form, that is or has been in a commercial or business relationship with ADP (excluding Clients and Vendors), including, without limitation, (i) referral partners, resellers, brokers, distributors, licensees, franchisees and marketing partners, (ii) implementation, integration and development partners, (iii) co-investors and joint venture partners, and (iv) any other individual or entity whose products or services ADP purchases, acquires or licenses for use with, or redistribution to, a third party (including Clients).

c.“Clients” means any individual, corporation, limited liability company, partnership, joint venture, association, or other entity, regardless of form, or government or quasi-government entity: (i) for whom ADP provides products or services in connection with the Business of ADP; (ii) for whom ADP has provided products and services in connection with the Business of ADP within the one (1) year period prior to my voluntary or involuntary termination of employment, for any reason, with or without cause, from ADP; (iii) whom I have solicited on behalf of ADP in connection with the Business of ADP within the two (2) year period prior to my voluntary or involuntary termination of employment, for any reason, with or without cause, from ADP; or (iv) about whom I have any Confidential Information or trade secret information.

d.“Competing Business” means any individual (including me), corporation, limited liability company, partnership, joint venture, association, or other entity, regardless of form, that is engaged in any business or enterprise that is the same as, or substantially the same as, that part of the Business of ADP in which I have worked or to which I have been exposed during my employment with ADP (regardless of whether I worked only for a particular segment of that part of the business in which I worked - for example, business segments based on the number of employees a Client has or a particular class of business using an ADP product or service).

e.“Confidential Information” means information and the compilation of information known or possessed by me because of my employment at ADP that is created, compiled, received or gathered by ADP or its agents and is related to the Business of ADP, that is valuable to ADP, and which ADP endeavors to protect from disclosure or use by its competitors and others who could benefit from its use, whether in written, tangible, electronic or any other form of media. Assuming the foregoing criteria are met, Confidential Information includes but is not limited to information about: ADP’s operations, products, business plans, market strategies, and services; research and development of ADP products and services; ADP’s intellectual property and trade secrets; Creative Works, including all publications, products, applications, processes, and software in any stage of development; names and other listings of current or prospective Clients, Business Partners, and Vendors (including contact information that may be compiled in computer databases that are not owned or controlled by ADP such as address books, personal digital assistants, smart phones, cloud storage services, and social and business websites); proposals made to current or prospective Clients, Business Partners, and Vendors or other information contained in offers or proposals to such Clients, Business Partners, and Vendors; the terms of any arrangements or agreements with Clients, Business

Partners, and Vendors, including the amounts paid for such services or how pricing was developed by ADP, the implementation of Client-specific projects, the identity of Business Partners and Vendors, and Business Partner and Vendor pricing information, the composition or description of future services that are or may be provided by ADP; ADP’s financial, marketing, and sales information; technical expertise and know-how developed by ADP, including the unique manner in which ADP conducts its business; employee lists, employee capabilities, employee compensation, prospective employee information, and employee training information and practices; Personally Identifiable Information; and Protected Health Information. Confidential Information also includes any information disclosed to ADP by a third party (including, without limitation, current or prospective Clients, Business Partners, and Vendors) that ADP is obliged to treat as confidential. This definition of Confidential Information excludes information that is or becomes known or generally available in the public domain through lawful means other than through my act or failure to act. This definition of Confidential Information and the use of the term Confidential Information in this Restrictive Covenant Agreement are not meant to limit ADP’s rights under applicable trade secrets laws, and ADP specifically reserves all of its rights under all applicable laws concerning trade secrets.

f.“Creative Works” means any and all works of authorship including, for example, written documents, spreadsheets, graphics, designs, trademarks, service marks, algorithms, computer programs or code, protocols, formulas, mask works, brochures, presentations, photographs, music or compositions, manuals, reports, and compilations of various elements, whether or not patentable or registrable under copyright, trademark, or similar domestic and international laws.

g.“Material Business Contact” means contact that is intended to establish or strengthen a business relationship for ADP.

h.“Personally Identifiable Information” (“PII”) is Confidential Information and includes an individual’s first name and last name or first initial and last name in combination with any of the following: an individual’s social security number, tax identification number, social insurance number, driver’s license number, government-issued identification card number, financial or bank account information, healthcare information, or credit, debit or payroll card number.

i.“Protected Health Information” (“PHI”) is Confidential Information and includes information that is created, received, and/or maintained by the Company related to an individual’s health care (or payment related to health care) that directly or indirectly identifies the individual.

j.“Severance Period” means the eighteen (18) month period following June 30, 2019, which was the date on which my employment with ADP was terminated.

k.“Vendors” means any individual, corporation, limited liability company, partnership, joint venture, association, or other entity, regardless of form, or government entity that supplies materials or services to ADP for internal use.

2.Duties and Best Efforts. I agree that I am prohibited from accessing any of ADP’s computer systems, servers, drives, or databases for any competitive or conflicting purpose and that any authorization for such access is revoked and prohibited by ADP once I engage in any competitive or conflicting activities or take any material steps towards accomplishing any competitive or conflicting activities.

3.Non-Competition. I agree that during my Severance Period and for a period of twelve (12) months following my Severance Period, I will not, directly or indirectly, own, manage, operate, join, control, finance, be employed by or with, or participate in any manner with a Competing Business where doing so will require me to (i) provide the same or substantially similar services to a Competing Business as those which I provided to ADP while employed, or (ii) use, disclose or disseminate ADP’s Confidential Information or trade secrets. However, nothing shall prevent me from owning, as an inactive investor, securities of any competitor of ADP which is listed on a national securities exchange.

4.Non-Solicitation of and Non-Interference with Clients, Business Partners, and Vendors.

a.Clients: I agree that during my Severance Period and for a period of twelve (12) months following my Severance Period, I will not, either on my own behalf or for any Competing Business, directly or indirectly, solicit, divert, appropriate, or accept any business from, or attempt to solicit, divert, appropriate, or accept any business from any Client for the purposes of providing products or services that are the same as or substantially similar to those provided in the Business of ADP. I also agree that I will not induce or encourage or attempt to induce or encourage any Client to cease doing business with ADP or materially alter their business relationship with ADP.

b.Business Partners: I agree that during my Severance Period and for a period of twelve (12) months following my Severance Period, I will not, either on my own behalf or for any Competing Business, directly or indirectly engage, contract with, solicit, divert, appropriate or accept any business from, or attempt to engage, contract with, solicit, divert, appropriate or accept any business from any Business Partner for the purpose of providing to me or any Competing Business any product or service that is (a) the same as or substantially similar to the product or service provided to ADP and which ADP uses for, uses for obtaining, or distributes to, its Clients or (b) specialized, customized or designed by the Business Partner for ADP. This provision applies only to a Business Partner: (i) with whom ADP currently has a commercial or business relationship in connection with the Business of ADP; (ii) with whom ADP has had a commercial or business relationship in connection with the Business of ADP within the one (1) year period prior to my voluntary or involuntary termination of employment, for whatever reason, with or without cause, from ADP; or (iii) about whom I have any Confidential Information or trade secret information. I also agree that I will not induce or encourage or attempt to wrongfully induce or encourage any Business Partner to cease doing business with ADP or materially alter their business relationship with ADP.

c.Vendors: I agree that during my Severance Period and for a period of twelve (12) months following my Severance Period, I will not induce or encourage or attempt to wrongfully

induce or encourage any Vendor to cease doing business with ADP or materially alter its business relationship with ADP.

5.Non-Solicitation of Employees. I agree that during my Severance Period and for a period of twelve (12) months following my Severance Period, I will not, directly or indirectly, hire, solicit, recruit, or encourage to leave ADP, any current employees of ADP or hire, solicit, recruit, or contract with employees who terminate their employment with ADP within twelve (12) months following my Severance Period.

6.Non-Disclosure and Non-Use of Confidential Information and Trade Secrets. I will not at any time following the termination of my employment with ADP access, disclose, use, reproduce, distribute, or otherwise disseminate ADP’s Confidential Information or trade secrets or take any action causing, or fail to take any action necessary in order to prevent, any such information to lose its character or cease to qualify as Confidential Information or a trade secret. I agree to inquire with ADP if I have any questions about whether I am authorized or required to access, use, reproduce, distribute, or otherwise disseminate ADP’s Confidential Information or whether particular information is Confidential Information or a trade secret before accessing, using or disclosing such information. I understand, however, that nothing in this Restrictive Covenant Agreement prohibits me from reporting possible violations of federal law or regulation to any governmental agency or entity or from communicating with any such agency or entity regarding the same. I also agree to immediately return to ADP all property and information belonging to ADP such as keys, credit cards, telephones, tools, equipment, computers, passwords, access codes, and electronic storage devices, as well as all originals, copies, or other physical embodiments of ADP’s Confidential Information or trade secrets (regardless of whether it is in paper, electronic, or other form), including any such information in any programs, business forms, manuals, correspondence, files, databases, or on computer disks or any other storage medium, including but not limited to cloud storage, whether or not owned or controlled by me or ADP (e.g., social and business networking websites, web-based email servers, Notability, or cloud storage services), immediately upon termination of my employment, and I agree not to keep, access, disclose, use, reproduce, distribute, or otherwise disseminate any copies, electronic or otherwise, of any of the foregoing. I also understand that my obligations under this paragraph, as well as the other covenants in this Restrictive Covenant Agreement, extend to my activities on the internet, including my use of business-oriented social networking sites such as LinkedIn and Facebook. This shall include deleting any business related connections or contacts, including all ADP Clients and Business Partners, that I inputted in or with whom I connected on any business oriented social networking sites, my LinkedIn account, any cloud storage, any electronic device, or any cell phones while employed at ADP. Pursuant to 18 U.S.C. § 1833(b), and as set forth fully therein, notice is hereby given that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any

document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

7.Disclosure of Agreement to Third Parties. I agree to provide a copy of this Restrictive Covenant Agreement to any subsequent employer, person, or entity to which I intend to provide services that may conflict with any of my obligations in this Restrictive Covenant Agreement prior to engaging in any such activities and to provide ADP in writing the name and address of any such employer, person, or entity and a description of the services I intend to provide prior to engaging in any such activities. I agree that ADP may also provide a copy of this Restrictive Covenant Agreement or a description of its terms to any Client, subsequent employer, or other third party at any time as it deems necessary to protect its interests, and I agree to indemnify ADP against any claims and hold ADP harmless from any losses, costs, attorneys’ fees, expenses, fees, and damages arising out of my failure to comply with this paragraph or ADP’s providing a copy of this Agreement or a description of its terms to any Client, subsequent employer, or other third party.

8.Severability and Reformation. I agree if any particular paragraph, subparagraph, phrase, word, or other portion of this Restrictive Covenant Agreement is determined by an appropriate court to be invalid or unenforceable as written, it shall be modified as necessary to be made valid or enforceable, and such modification shall not affect the remaining provisions of this Restrictive Covenant Agreement, or if it cannot be modified to be made valid or enforceable, then it shall be severed from this Restrictive Covenant Agreement, and all remaining terms and provisions shall remain enforceable.

9.Choice of Law, Venue, and Jurisdiction. The interpretation, validity, and enforcement of this Restrictive Covenant Agreement will be governed by the laws of the State of New Jersey, without regard to any conflicts of law principles that require the application of the law of another jurisdiction. I agree that any action by me to challenge the enforceability of this Restrictive Covenant Agreement must be brought or litigated exclusively in the appropriate state or federal court located in the State of New Jersey. I also agree that any action by ADP to enforce this Restrictive Covenant Agreement, as well as any related disputes or litigation related to this Restrictive Covenant Agreement, may, but does not have to, be brought in the appropriate state or federal court located in the State of New Jersey. I agree and consent to the personal jurisdiction and venue of the federal or state courts of New Jersey for resolution of any disputes or litigation arising under or in connection with this Restrictive Covenant Agreement or any challenge to this Restrictive Covenant Agreement and waive any objections or defenses to personal jurisdiction or venue in any such proceeding before any such court.

10.Survival. All non-competition, non-solicitation, non-disclosure and non-use, non- recruiting, intellectual property, and Restrictive Covenant Agreement disclosure obligations under paragraphs three (3) through seven (7) of this Restrictive Covenant Agreement shall survive the termination of my employment for any reason and with or without cause, and no dispute regarding any other provisions of this Restrictive Covenant Agreement or regarding my employment or the termination of my employment shall prevent the operation and enforcement of these obligations.

11.Relief, Remedies, and Enforcement. I acknowledge that ADP is engaged in a highly competitive business, and the covenants and restrictions contained in this Restrictive Covenant

Agreement, including the geographic and temporal restrictions, are reasonably designed to protect ADP’s legitimate business interests, including ADP goodwill and client relations, Confidential Information and trade secrets, and the specialized skills and knowledge gained by me and ADP’s other employees during our employment. I acknowledge and agree that a breach of any provision of this Restrictive Covenant Agreement by me will cause serious and irreparable damage to ADP that will be difficult to quantify and for which a remedy at law for monetary damages alone may not be adequate. Accordingly, I agree that if ADP should bring an action to enforce its rights under this Restrictive Covenant Agreement and ADP establishes that I have breached or threatened to breach any of my obligations under this Restrictive Covenant Agreement, ADP shall be entitled, in addition to all remedies otherwise available in law or equity, to a temporary restraining order, a preliminary injunction, and a permanent injunction enjoining such breach or threatened breach in any court of competent jurisdiction without the necessity of posting a surety bond, as well as an equitable accounting of all profits or benefits arising out of any violation of this Restrictive Covenant Agreement, and ADP shall be entitled to cease to pay or provide any further benefits under the Automatic Data Processing, Inc. Corporate Officer Severance Plan to me and I will, upon ten (10) days’ prior written demand by ADP, promptly reimburse ADP any benefits already paid or provided under the Automatic Data Processing, Inc. Corporate Officer Severance Plan to me since the date of such breach. I also agree that nothing in this Restrictive Covenant Agreement shall be construed to prohibit ADP from pursuing any and all other legal or equitable remedies available to it for breach of any of the provisions of this Restrictive Covenant Agreement, including the disgorgement of any profits, bonuses, equity, commissions, or fees realized by me, any subsequent employers, any business owned or operated by me or to which I provide services, or any of my agents, heirs, or assigns. I also agree that that the knowledge, skills, and abilities I possess at the time of commencement of my employment are sufficient to permit me to earn a livelihood satisfactory to me without violating any provision of paragraphs three (3) through seven (7) above, for example, by using such knowledge, skills, and abilities, or some of them, in the service of business that is not competitive with ADP. I further agree to pay any and all legal fees, including without limitation, all attorneys’ fees, court costs, and any other related fees and/or costs incurred by ADP in enforcing this Restrictive Covenant Agreement.

12.Tolling. The restricted time periods in paragraphs three (3) through six (6) above shall be tolled during any time period that I am in violation of such covenants, as determined by a court of competent jurisdiction, so that ADP may realize the full benefit of its bargain. This tolling shall include any time period during which litigation is pending, but during which I have continued to violate such protective covenants and a court has declined to enjoin such conduct or I have failed to comply with any such injunction.

13.Entire Agreement and Validity of Terms. I agree that I do not rely, and have not relied, upon any representation or statement not set forth herein by ADP or any of ADP's agents, representatives, or attorneys, and that this Restrictive Covenant Agreement may be changed only by a subsequent agreement in writing signed by both parties. I understand that I may have an existing agreement(s) with ADP, through acquisition of a prior employer or otherwise, that may include the same or similar covenants as those in this Restrictive Covenant Agreement, and acknowledge that this Restrictive Covenant Agreement is meant to supplement any such agreement(s) such that the covenants in the agreements that provide ADP with the greatest protection

enforceable under applicable law shall control, and that the parties do not intend to create any ambiguity or conflict through the execution of this Restrictive Covenant Agreement that would release me from the obligations I have assumed under the protective covenants in any of these agreements.

14.Electronic Signature. I agree that ADP may enforce this Restrictive Covenant Agreement with a copy for which I have provided an electronic signature.

15.Assignment and Successorship. This Restrictive Covenant Agreement and ADP’s rights and obligations hereunder may be assigned by ADP and shall inure to the benefit of and shall be enforceable by any such assignee, as well as any of ADP’s successors in interest. This Restrictive Covenant Agreement and my rights and obligations may not be assigned by me, but are binding upon my heirs, administrators, executors, and personal representatives.

16.Waiver. ADP’s waiver of a breach of any provision of this Restrictive Covenant Agreement in any particular instance shall not be deemed to be a waiver of any other breach in any other instance and/or of ADP’s other rights at law, in equity, or under this Restrictive Covenant Agreement. ADP’s failure to take action against any other employee for similar breaches shall not operate as a wavier by ADP of a breach as to me. Any waiver by ADP of any breach of this Restrictive Covenant Agreement by me shall not be effective unless in writing signed by a Corporate Officer of ADP, and no such waiver with regards to me or any other person under a similar agreement shall operate or be construed as a waiver of the same type of breach or any other breach on a subsequent occasion by me or any other person or entity.

17.Jury Trial Waiver. I agree that, to the fullest extent permitted by law, each party waives any right to trial by jury with respect to any proceeding arising out of or relating to this Restrictive Covenant Agreement.

18.Opportunity to Review. I agree that I have read this Restrictive Covenant Agreement before signing it, understand its terms, and that I have had the opportunity to have legal counsel review this agreement, prior to signing it, and I acknowledge that I have not been forced or coerced in any manner to sign this Restrictive Covenant Agreement and do so of my own free will.

IN WITNESS WHEREOF, I have executed this Restrictive Covenant Agreement as of the date set forth below.

Signed: /s/ Jan Siegmund

Printed Name: Jan Siegmund

Date: 4/29/2019

RELEASE

WHEREAS, I, the undersigned, am a participant in the Automatic Data Processing, Inc. Corporate Officer Severance Plan (the “Plan”);

WHEREAS, my employment with the Company will be terminated effective June 30, 2019;

WHEREAS, the Company and I entered into a Separation Agreement and Release, dated April 29, 2019 (the “Separation Agreement”); and

WHEREAS, this “Release” is referred to in Section 3 of the Plan.

NOW, THEREFORE, in consideration of the promises and for other good and valuable consideration contained herein and received or to be received in accordance with the terms of the Separation Agreement and the Plan (including the Severance Benefits outlined in Section 2.3 and Section 2.4 of the Plan (other than the Accrued Obligations)), I hereby agree as follows (capitalized terms not defined herein are as defined in the Plan):

1.Without prejudice to enforcement of the covenants, promises, or rights reserved herein, I (on my own behalf and on behalf of my heirs and legal representatives, administrators, successors, and assigns (collectively, the “Successors”)) hereby irrevocably and unconditionally release, acquit, and forever discharge the Company and (only with respect to each such following person’s affiliation with the Company) all its subsidiaries, Affiliates, related companies, and divisions and its and their past, present, and future employees, officers, directors, agents, carriers, and shareholders and its and their predecessors, successors and assigns (collectively, “Releasees from and against all claims, actions and causes of action, of every kind, nature and description without limitation, whether created by any constitution, statute, common law, regulation, municipal ordinance, executive order, contract, duty or obligation arising from my employment with the Company (or termination thereof), that exist as of the date I sign this Release (“Claims”), except as provided below in this Section and in Section 2. This Release includes all Claims arising under all federal, state and local employment discrimination, whistleblower and anti-retaliation statutes, ordinances or regulations including, but not limited to, Title VII of the Civil Rights Act of 1964, the Equal Pay Act of 1963, the Lilly Ledbetter Fair Pay Act of 2009, the Age Discrimination in Employment Act of 1967 (“ADEA”), the Employee Retirement Income Security Act, the Civil Rights Act of 1991, the Rehabilitation Act of 1973, the Older Workers Benefit Protection Act of 1988, the Worker Adjustment Retraining and Notification Act, the Fair Labor Standards Act of 1938, the Occupational Safety and Health Act of 1970, the Sarbanes-Oxley Act of 2002, the Americans with Disabilities Act, the Family and Medical Leave Act, the Labor Management Relations Act, the Health Insurance Portability and Accountability Act, all as amended, and all other sex, sexual orientation, marital status, religion, race, national origin, veterans’, disability, age discrimination, whistleblower and anti-retaliation laws, including but not limited to, the New Jersey Conscientious Employee Protection Act, and the New Jersey Law Against Discrimination. I expressly waive all rights I may have under such laws, and under any amendments thereto, any claims based on contract, tort, public policy, or any principle of law or equity, and any claim for money, damages, attorneys’ fees, costs, and injunctive or other relief. Anything to the contrary notwithstanding, nothing herein shall release the Company or any other Releasees from any claims

or damages based on (i) any right I may have to enforce the provisions of the Separation Agreement and Plan that are intended to survive a Termination of my employment with the Company, (ii) any right or claim that arises after the date this Release is executed or that otherwise may not be legally released, (iii) any right I may have to Accrued Obligations, (iv) my right to indemnification and advancement of expenses in accordance with applicable laws or the certificate of incorporation and bylaws (or any other governing documents) of the Company, or any applicable insurance policy (including, without limitation, any directors and officers insurance or similar policies), or (v) any right I may have to obtain contribution as permitted by law in the event of entry of judgment against me as a result of any act or failure to act for which I, on the one hand, and any of the Releasees, on the other hand, are jointly liable.

2.Except as provided in this Section, this Release shall serve as a bar to all claims, charges, complaints, and actions by me or my Successors against any of the Releasees with respect to items released herein and neither I nor any of my Successors shall file any claims, charges, complaints, or actions with respect to items released herein. Notwithstanding the foregoing, it is understood that I shall not be precluded by this Release from filing a charge with any relevant federal, state, or local administrative agency, court, or other body challenging the validity of the release of my claims under ADEA, or initiating or participating in an investigation or proceeding conducted by the Equal Employment Opportunity Commission, the Securities and Exchange Commission, or other federal, state or local agency or authority, and I understand that I am not required to notify the Company of such communications or disclosures. However, I agree to waive my rights with respect to any monetary or other financial relief arising from any such proceeding or investigation. To the extent that any claim, charge, complaint, or action released by me in this Release is brought by me or my Successors for my benefit or on my behalf, I (and my Successors) expressly waive any claim to any form of monetary or other damages, including, without limitation, attorneys’ fees and costs, or any other form of personal recovery or relief in connection with any such claim, charge, complaint or action. Notwithstanding the foregoing, this Release does not limit my right to receive an award for information provided to any federal, state or local government agency. Additionally, I am not waiving or releasing any claims for unemployment compensation benefits, workers compensation benefits, claims under the Fair Labor Standards Act, health insurance benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA), or claims with regard to vested benefits under a retirement plan governed by the Employee Retirement Income Security Act (ERISA).

3.I understand that I have been given a period of at least 21 days to review and consider this Release before signing it pursuant to the ADEA. I understand further that I may use as much of this 21-day period as I wish prior to signing. I ACKNOWLEDGE THAT I HAVE READ THIS RELEASE CAREFULLY; THIS RELEASE IS WORDED IN AN UNDERSTANDABLE WAY; I AM BEING ADVISED BY THIS WRITING TO CONSULT AN ATTORNEY PRIOR TO EXECUTING THIS RELEASE; I FULLY UNDERSTAND THAT, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS RELEASE, BY SIGNING BELOW I AM WAIVING ALL RIGHTS AND RELEASING ALL CLAIMS, INCLUDING, WITHOUT LIMITATION, ALL RIGHTS AND CLAIMS ARISING UNDER ADEA, THAT I MAY HAVE TO SUE OR ASSERT A CLAIM AGAINST ANY OF THE RELEASEES, AS DESCRIBED IN THIS RELEASE; I DO NOT WAIVE CLAIMS UNDER ADEA THAT MAY ARISE AFTER THE DATE I SIGN THIS

RELEASE; AND THE CONSIDERATION GIVEN BY THE COMPANY FOR THE WAIVER OF RIGHTS AND RELEASE OF CLAIMS IS IN ADDITION TO ANYTHING OF VALUE TO WHICH I AM ALREADY ENTITLED. I ACKNOWLEDGE THAT I HAVE NOT BEEN FORCED OR PRESSURED IN ANY MANNER WHATSOEVER TO SIGN THIS RELEASE AND I AGREE TO ALL OF ITS TERMS VOLUNTARILY.

4.I acknowledge and represent that I understand that I may revoke this Release within 7 days after signing this Release. Revocation can be made by delivering a written notice of revocation to the Committee at the address specified in Section 9.1 of the Plan. For this revocation to be effective, written notice must be received no later than the close of business on the seventh day after I sign this Release.

5.I represent and acknowledge that in executing this Release I am not relying upon, and have not relied upon, any representation or statement not set forth herein made by any of the agents, representatives, or attorneys of the Company.

6.This Release shall not in any way be construed as an admission by me that I have acted wrongfully. I also acknowledge and agree that I have not, with respect to any transactions or state of facts existing prior to the date hereof, (a) other than any actions not precluded as provided in Section 2 above, filed any actions with respect to the Company or any of the Releasees with any governmental agency, court, or tribunal or (b) assigned or transferred any action to a third party. I agree further to dismiss with prejudice all pending civil lawsuits related to any such claim, charge, complaint or action, except as provided in Section 2 above.

7.Should any provision hereof be invalid or otherwise unenforceable under any law, such provision shall be curtailed and to the extent necessary to bring it within the requirements of law, and the remaining limited provisions of this Release shall remain in full force and effect and be fully valid, and I represent and agree that I (a) have, to the extent that I desire, discussed all aspects of this Release with my attorney, (b) have carefully read and fully understand all of the provisions of this Release, and (c) am voluntarily entering into this Release.

8.This Release may be amended or modified only by a writing signed by both the Company and me.

9.This Release shall be governed by, and construed in accordance with, the laws of the State of New Jersey, applicable to contracts executed and performed in such state.

10.If I revoke this Release (including, without limitation, the waiver of rights and release of any ADEA claims covered hereby), I will be deemed not to have accepted any of the terms of this Release and I will not be entitled to any Severance Benefits under the Plan.

IN WITNESS WHEREOF, I have executed this Release as of the date set forth below.

Signed: /s/ Jan Siegmund

Printed Name: Jan Siegmund

Date: 4/29/2019

EX-31.1

EXHIBIT 31.1

Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934

I, Carlos A. Rodriguez, certify that:

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

EX-31.2

EXHIBIT 31.2

Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934

I, Kathleen A. Winters, certify that:

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

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Automatic Data Processing, Inc. (the "Company") on Form 10-Q for the fiscal quarter ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Carlos A. Rodriguez, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(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

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Automatic Data Processing, Inc. (the "Company") on Form 10-Q for the fiscal quarter ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kathleen A. Winters, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(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

XML

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

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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

[1] Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $10,798.3 million and $10,176.2 million for the three months ended March 31, 2019 and 2018, respectively, and $32,178.8 million and $29,547.0 million for the nine months ended March 31, 2019 and 2018, respectively.

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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
Income Statement [Abstract]
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 Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
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

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Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2019		Jun. 30, 2018
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	[1]	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
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	0.0		0.0
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

[1] (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.

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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

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Statements of Consolidated Cash Flows - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
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

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Basis of Presentation

9 Months Ended

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”).

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New Accounting Pronouncements

9 Months Ended

Mar. 31, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

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

	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

Consolidated Balance Sheets

	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

Statements of Consolidated Cash Flows

	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

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.

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.

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Revenue

9 Months Ended

Mar. 31, 2019

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):

	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

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2019:

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

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2018:

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

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2019:

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

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2018:

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 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 endedMarch 31, 2019 were as follows:

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

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:

	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

(1) The amount of total deferred costs amortized during the three and nine months endedMarch 31, 2019 and March 31, 2018, were $220.6 million and $655.2 million, and $211.2 million and $623.5 million, respectively.

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Acquisitions

9 Months Ended

Mar. 31, 2019

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:

Goodwill	$	406.1
Identifiable intangible assets	132.5
Other assets	0.8
Total assets acquired	$	539.4
Total liabilities assumed	$	48.4

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.

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Service Alignment Initiative

9 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

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:

	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

(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 endedMarch 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 endedMarch 31, 2019 and March 31, 2018, respectively, was as follows:

	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

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Earnings per Share (EPS)

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings per Share (EPS)

Earnings per Share (“EPS”)

	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

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 endedMarch 31, 2019 and 2018, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

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Other Income, Net

9 Months Ended

Mar. 31, 2019

Other Income and Expenses [Abstract]

Other Income, Net

Other Income, Net

	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	)

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 endedMarch 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 endedMarch 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.

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Corporate Investments and Funds Held For Clients

9 Months Ended

Mar. 31, 2019

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:

	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

(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.

	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

(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 endedMarch 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: 

	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

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:

	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

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:

	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

(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:

	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

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:

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

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Goodwill and Intangible Assets, net

9 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles Assets, net

Goodwill and Intangibles Assets, net

Changes in goodwill for the nine months endedMarch 31, 2019 are as follows:

	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

Components of intangible assets, net, are as follows:

	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

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 endedMarch 31, 2019 and 2018, respectively.

Estimated future amortization expenses of the Company's existing intangible assets are as follows:

	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

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Short-term Financing

9 Months Ended

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 billionfive 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 endedMarch 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 endedMarch 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 endedMarch 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.

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Long-term Debt

9 Months Ended

Mar. 31, 2019

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:

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

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.

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Employee Benefit Plans

9 Months Ended

Mar. 31, 2019

Retirement Benefits [Abstract]

Pension Plans

Pension Plans

The components of net pension expense were as follows:

	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

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 endedMarch 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 endedMarch 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.

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 endedMarch 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 endedMarch 31, 2019 and 2018, respectively:

	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

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.

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Income Taxes

9 Months Ended

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 endedMarch 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 endedMarch 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.

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Commitments and Contingencies

9 Months Ended

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.

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Stockholders' Equity

9 Months Ended

Mar. 31, 2019

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity

Stockholders' Equity

Changes in stockholders' equity by component are as follows:

	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

(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).

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Reclassifications out of Accumulated Other Comprehensive Income (AOCI)

9 Months Ended

Mar. 31, 2019

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:

	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	)

(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).

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Interim Financial Data by Segment

9 Months Ended

Mar. 31, 2019

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:

	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

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New Accounting Pronouncements (Tables)

9 Months Ended

Mar. 31, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Statements of Consolidated Earnings

	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

Consolidated Balance Sheets

	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

Statements of Consolidated Cash Flows

	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

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.

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.

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Revenue (Tables)

9 Months Ended

Mar. 31, 2019

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:

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

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2018:

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

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2019:

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

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2018:

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

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):

	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

Contract with Customer, Liability

Changes in deferred revenue related to set up fees for the nine months endedMarch 31, 2019 were as follows:

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

Capitalized Contract Cost

The balance is as follows:

	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

(1) The amount of total deferred costs amortized during the three and nine months endedMarch 31, 2019 and March 31, 2018, were $220.6 million and $655.2 million, and $211.2 million and $623.5 million, respectively.

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Acquisitions (Tables)

9 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Schedule of Business Combination

The final purchase price allocation for GCC is as follows:

Goodwill	$	406.1
Identifiable intangible assets	132.5
Other assets	0.8
Total assets acquired	$	539.4
Total liabilities assumed	$	48.4

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Service Alignment Initiative (Tables)

9 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The table below summarizes the composition of the Company's Service Alignment Initiative (reversals)/charges:

	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

(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 endedMarch 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 endedMarch 31, 2019 and March 31, 2018, respectively, was as follows:

	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

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Earnings per Share (EPS) (Tables)

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

	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

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Other Income, Net (Tables)

9 Months Ended

Mar. 31, 2019

Other Income and Expenses [Abstract]

Other Income, net

	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	)

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Corporate Investments and Funds Held For Clients (Tables)

9 Months Ended

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:

	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

(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.

	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

(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.

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: 

	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

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:

	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

Classification Of Corporate Investments On The Consolidated Balance Sheets

Classification of corporate investments on the Consolidated Balance Sheets is as follows:

	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

(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.

Schedule Of Investment Of Funds Held For Clients

Funds held for clients have been invested in the following categories:

	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

Expected Maturities Of Available-For-Sale Securities

Expected maturities of available-for-sale securities at March 31, 2019 are as follows:

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

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Goodwill and Intangibles Assets, net (Tables)

9 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes In Goodwill

Changes in goodwill for the nine months endedMarch 31, 2019 are as follows:

	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

Components Of Finite-Lived Intangible Assets

Components of intangible assets, net, are as follows:

	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

Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization expenses of the Company's existing intangible assets are as follows:

	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

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Long-term Debt (Tables)

9 Months Ended

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:

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

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Employee Benefit Plans (Tables)

9 Months Ended

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 endedMarch 31, 2019 and 2018, respectively:

	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

Schedule of Net Benefit Costs

The components of net pension expense were as follows:

	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

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Stockholders' Equity (Tables)

9 Months Ended

Mar. 31, 2019

Stockholders' Equity Attributable to Parent [Abstract]

Schedule of Components of Stockholders' Equity

Changes in stockholders' equity by component are as follows:

	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

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Reclassifications out of Accumulated Other Comprehensive Income (AOCI) (Tables)

9 Months Ended

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:

	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	)

(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).

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Interim Financial Data by Segment (Tables)

9 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Segment Results:

	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

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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

[1] Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $10,798.3 million and $10,176.2 million for the three months ended March 31, 2019 and 2018, respectively, and $32,178.8 million and $29,547.0 million for the nine months ended March 31, 2019 and 2018, respectively.

[2] (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.

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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

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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

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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

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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

[1] (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.

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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%

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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)

[1] (d) - All charges are included within the Other segment.

[2] (a) - Net (reversals)/charges are recorded in selling, general and administrative expenses on the Statements of Consolidated Earnings.

[3] (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).

[4] (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.

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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

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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)

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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

[1] (d) - All charges are included within the Other segment.

[2] (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.

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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

[1] 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.

[2] 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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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

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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

[1] 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.

[2] 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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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

[1] (a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets.

[2] (b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets.

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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

[1] See Note 8 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets.

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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

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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

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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)

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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

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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

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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%

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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

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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

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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

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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

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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

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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)

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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)

[1] (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).

[2] (A) Reclassification adjustments out of AOCI are included within Other income, net, on the Statements of Consolidated Earnings.

[3] (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).

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Interim Financial Data by Segment (Narrative) (Details)	9 Months Ended
	Mar. 31, 2019 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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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)