Interim Financial Data by Segment

3 Months Ended

Sep. 30, 2025

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. 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.

The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer. For each reportable segment, the CODM uses earnings before income taxes, including plan-to-actual and forecast-to-actual results, to assess segment performance and allocate resources (including personnel and capital resources) amongst its strategic business units. The CODM does not review assets at the reportable segment level, hence segment disclosure relating to total assets has not been provided.

The following tables present the Company's revenues, significant segment expenses, and earnings before income taxes by reportable segment:

Three Months Ended September 30, 2025	Employer Services		PEO Services		Total
Revenues from external customers	$	3,203.5	$	1,684.9	$	4,888.4
Interest on funds held for clients	284.2		2.6		286.8
Intercompany revenues	3.5		—		3.5
Total segment revenues	3,491.2		1,687.5		5,178.7
Reconciliation of revenues:
Intercompany eliminations					(3.5)
Total consolidated revenues					$	5,175.2
Less segment expenses: (a)
Selling and marketing	552.4		91.2
Zero-margin benefits pass-through costs	—		1,131.0
Worker's compensation coverage and state unemployment taxes	—		134.9
Other segment expenses (b)	1,710.0		111.6
Total segment earnings before income taxes	1,228.8		218.8		1,447.6
Reconciliation of earnings before income taxes:
Other (c)					(140.1)
Total consolidated earnings before income taxes					$	1,307.5

Three Months Ended September 30, 2024	Employer Services		PEO Services		Total
Revenues from external customers	$	3,007.2	$	1,572.2	$	4,579.4
Interest on funds held for clients	251.0		2.3		253.3
Intercompany revenues	2.8		—		2.8
Total segment revenues	3,261.0		1,574.5		4,835.5
Reconciliation of revenues:
Intercompany eliminations					(2.8)
Total consolidated revenues					$	4,832.7
Less segment expenses: (a)
Selling and marketing	505.3		81.1
Zero-margin benefits pass-through costs	—		1,049.2
Worker's compensation coverage and state unemployment taxes	—		124.3
Other segment expenses (b)	1,591.4		94.3
Total segment earnings before income taxes	1,164.3		225.6		1,389.9
Reconciliation of earnings before income taxes:
Other (c)					(153.7)
Total consolidated earnings before income taxes					$	1,236.2

(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intercompany expenses are included in the amounts shown.

(b) Other segment expenses for both reportable segments include operating, research and development, depreciation and amortization, and other general and administrative expenses.

(c) Other represents certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, legal settlements, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and interest income and expense.

The following table presents the Company's depreciation and amortization included in earnings before income taxes for each reportable segment:

	Three Months Ended
	September 30,
	2025		2024
Employer Services	$	131.1	$	120.5
PEO Services	0.7		1.7
Other	14.9		16.4
Total depreciation and amortization	$	146.7	$	138.6