Revenue

3 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three business pillars: Human Capital Management (“HCM”), HR Outsourcing (“HRO”), and Global Solutions (“Global”), with separate disaggregation for PEO zero-margin benefits pass-through revenues and client funds 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.

The following tables provide details of revenue by our business pillars, and include a reconciliation to the Company’s reportable segments:

	Three Months Ended
	September 30,
Types of Revenues	2024		2023
HCM	$	2,025.4	$	1,914.4
HRO, excluding PEO zero-margin benefits pass-throughs	865.2		811.7
PEO zero-margin benefits pass-throughs	1,049.2		976.7
Global	639.6		607.9
Interest on funds held for clients	253.3		201.7
Total Revenues	$	4,832.7	$	4,512.4

Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2024:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	2,027.6	$	—	$	(2.2)	$	2,025.4
HRO, excluding PEO zero-margin benefits pass-throughs	342.8		523.0		(0.6)		865.2
PEO zero-margin benefits pass-throughs	—		1,049.2		—		1,049.2
Global	639.6		—		—		639.6
Interest on funds held for clients	251.0		2.3		—		253.3
Total Segment Revenues	$	3,261.0	$	1,574.5	$	(2.8)	$	4,832.7

Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2023:

Types of Revenues	Employer Services		PEO		Other		Total
HCM	$	1,916.7	$	—	$	(2.3)	$	1,914.4
HRO, excluding PEO zero-margin benefits pass-throughs	322.0		491.0		(1.3)		811.7
PEO zero-margin benefits pass-throughs	—		976.7		—		976.7
Global	607.9		—		—		607.9
Interest on funds held for clients	199.8		1.9		—		201.7
Total Segment Revenues	$	3,046.4	$	1,469.6	$	(3.6)	$	4,512.4

Contract Balances

The timing of revenue recognition for HCM, HRO and Global 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.

Changes in deferred revenues related to set up fees for the three months ended September 30, 2024 were as follows:

Contract Liability
Contract liability, July 1, 2024	$	491.6
Recognition of revenue included in beginning of year contract liability	(35.9)
Contract liability, net of revenue recognized on contracts during the period	28.0
Currency translation adjustments	10.8
Contract liability, September 30, 2024	$	494.5