Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018 | |
Document And Entity Information [Abstract] | |
Document Type | S1 |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2018 |
Trading Symbol | CDAY |
Entity Registrant Name | Ceridian HCM Holding Inc. |
Entity Central Index Key | 1,725,057 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | |||
Cash and equivalents | $ 188 | $ 94.2 | $ 120.8 |
Trade and other receivables, net | 62.6 | 66.6 | 71.1 |
Prepaid expenses | 38.7 | 36.4 | 30 |
Assets of discontinued operations | 156.2 | 156.1 | |
Other current assets | 2.4 | 5.3 | 0.7 |
Total current assets before customer trust funds | 291.7 | 358.7 | 378.7 |
Customer trust funds | 3,426.6 | 4,099.7 | 3,702.8 |
Total current assets | 3,718.3 | 4,458.4 | 4,081.5 |
Property, plant, and equipment, net | 100.6 | 102 | 84.5 |
Goodwill | 1,949.8 | 1,961 | 1,933.1 |
Other intangible assets, net | 192.3 | 206.5 | 223.7 |
Other assets | 1.8 | 2 | 3.2 |
Total assets | 5,962.8 | 6,729.9 | 6,326 |
Current liabilities: | |||
Current portion of long-term debt | 6.8 | 2.3 | |
Accounts payable | 34.8 | 44.4 | 40.3 |
Accrued interest | 0.3 | 15.9 | 20.6 |
Deferred revenue | 16.8 | 14 | 11.2 |
Employee compensation and benefits | 61.2 | 68.8 | 76.7 |
Liabilities of discontinued operations | 0.2 | 19.6 | 20 |
Other accrued expenses | 19.2 | 15 | 22.1 |
Total current liabilities before customer trust funds obligations | 139.3 | 177.7 | 193.2 |
Customer trust funds obligations | 3,457 | 4,105.5 | 3,692.3 |
Total current liabilities | 3,596.3 | 4,283.2 | 3,885.5 |
Long-term debt, less current portion | 665 | 1,119.8 | 1,139.8 |
Employee benefit plans | 124.6 | 152.4 | 182.1 |
Other liabilities | 38.4 | 45.5 | 112.7 |
Total liabilities | 4,424.3 | 5,600.9 | 5,320.1 |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock | 1.4 | 0.7 | 0.7 |
Additional paid in capital | 2,297.3 | 1,565.4 | 1,546.8 |
Accumulated deficit | (419.1) | (348.2) | (318.5) |
Accumulated other comprehensive loss | (341.1) | (312.1) | (351.5) |
Receivable from stockholder | (75.2) | ||
Total stockholders' equity | 1,538.5 | 1,091.2 | 967.2 |
Noncontrolling interest | 37.8 | 38.7 | |
Total equity | 1,538.5 | 1,129 | 1,005.9 |
Total liabilities and equity | $ 5,962.8 | 6,729.9 | 6,326 |
Senior Preferred Stock [Member] | |||
Stockholders' equity: | |||
Preferred stock | 184.8 | 164.3 | |
Total equity | 184.8 | 164.3 | |
Junior Preferred Stock [Member] | |||
Stockholders' equity: | |||
Preferred stock | 0.6 | 0.6 | |
Total equity | $ 0.6 | $ 0.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Apr. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 30, 2016 | Oct. 01, 2013 |
Common Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |
Common Stock, shares authorized | 500,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | 100,000,000 | |
Common Stock, shares issued | 138,049,718 | 24,150,000 | 65,285,962 | 65,001,037 | ||
Common Stock, shares outstanding | 138,049,718 | 65,285,962 | 65,001,037 | |||
Senior Preferred Stock [Member] | ||||||
Preferred Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred Stock, shares authorized | 70,000,000 | 70,000,000 | 70,000,000 | |||
Preferred Stock, shares issued | 16,802,144 | 16,802,144 | ||||
Preferred Stock, shares outstanding | 16,802,144 | 16,802,144 | ||||
Junior Preferred Stock [Member] | ||||||
Preferred Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred Stock, shares authorized | 70,000,000 | 70,000,000 | 70,000,000 | |||
Preferred Stock, shares issued | 58,244,308 | 58,244,308 | ||||
Preferred Stock, shares outstanding | 58,244,308 | 58,244,308 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||||
Recurring services | $ 480.8 | $ 438.2 | $ 598.5 | $ 558.5 | $ 559.3 |
Professional services and other | 65.3 | 50.2 | 72.3 | 64.9 | 52.3 |
Total revenue | 546.1 | 488.4 | 670.8 | 623.4 | 611.6 |
Cost of revenue: | |||||
Recurring services | 149.3 | 145.8 | 196.8 | 214.4 | 211 |
Professional services and other | 98.7 | 102.8 | 135.8 | 115.6 | 91.6 |
Product development and management | 43.3 | 31.8 | 43.6 | 43.3 | 44 |
Depreciation and amortization | 25.7 | 23.2 | 31.3 | 23.1 | 18 |
Total cost of revenue | 317 | 303.6 | 407.5 | 396.4 | 364.6 |
Gross profit | 229.1 | 184.8 | 263.3 | 227 | 247 |
Costs and expenses: | |||||
Selling, general, and administrative | 200.3 | 161 | 223 | 225.3 | 235.5 |
Other (income) expense, net | (2.5) | 6.9 | 7.3 | 12.9 | 27.8 |
Operating profit | 31.3 | 16.9 | 33 | (11.2) | (16.3) |
Interest expense, net | 74.4 | 65.3 | 87.1 | 87.4 | 87.8 |
Income (loss) from continuing operations before income taxes | (43.1) | (48.4) | (54.1) | (98.6) | (104.1) |
Income tax (benefit) expense | 5.8 | 3.8 | (49.6) | 6.7 | 4.3 |
Income (loss) from continuing operations | (48.9) | (52.2) | (4.5) | (105.3) | (108.4) |
(Loss) income from discontinued operations | (14.8) | (2.4) | (6) | 12.5 | 3.7 |
Net income (loss) | (63.7) | (54.6) | (10.5) | (92.8) | (104.7) |
Net income (loss) attributable to noncontrolling interest | (0.5) | (0.4) | (1.3) | 0.1 | |
Net income (loss) attributable to Ceridian | $ (63.2) | $ (54.2) | $ (9.2) | $ (92.9) | $ (104.7) |
Net income (loss) per share: | |||||
Basic | $ (0.67) | $ (1.07) | |||
Diluted | $ (0.67) | $ (1.07) | |||
Net loss per share attributable to Ceridian - basic and diluted (Note 20) | $ (0.46) | $ (1.65) | $ (1.61) | ||
Weighted average shares outstanding: | |||||
Basic | 105,730,178 | 65,181,373 | 65,204,960 | 64,988,338 | 64,924,845 |
Diluted | 105,730,178 | 65,181,373 | 65,204,960 | 64,988,338 | 64,924,845 |
Weighted-average shares used to compute net loss per share attributable to Ceridian - basic and diluted (Note 20) | 105,730,178 | 65,181,373 | 65,204,960 | 64,988,338 | 64,924,845 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
Statement of Comprehensive Income [Abstract] | ||||||||||
Net income (loss) | $ (63.7) | $ (54.6) | $ (10.5) | $ (92.8) | $ (104.7) | |||||
Items of other comprehensive income (loss) before income taxes: | ||||||||||
Change in foreign currency translation adjustment | (16.2) | 43.9 | 39.7 | 24.4 | (94.2) | |||||
Change in unrealized gain from marketable securities | 0.6 | |||||||||
Change in unrealized loss from invested customer trust funds | (24.5) | (10) | (17.3) | (10.2) | (4.9) | |||||
Change in pension liability adjustment | 8.7 | [1] | 7.6 | [1] | 13.8 | [2] | 13.6 | [2] | 14.5 | [2] |
Other comprehensive income (loss) before income taxes | (32) | 41.5 | 36.2 | 27.8 | (84) | |||||
Income tax benefit, net | (2.3) | (3) | (3.6) | 0.6 | (0.6) | |||||
Other comprehensive income (loss) after income taxes | (29.7) | 44.5 | 39.8 | 27.2 | (83.4) | |||||
Comprehensive income (loss) | (93.4) | (10.1) | 29.3 | (65.6) | (188.1) | |||||
Comprehensive (loss) income attributable to noncontrolling interest | (0.5) | 0.2 | (0.9) | (0.5) | ||||||
Comprehensive income (loss) attributable to Ceridian | $ (92.9) | $ (10.3) | $ 30.2 | $ (65.1) | $ (188.1) | |||||
[1] | The amount of the pension liability adjustment recognized in the condensed consolidated statements of operations within selling, general, and administrative expense was $9.0 and $7.8 during the nine months ended September 30, 2018, and 2017, respectively. | |||||||||
[2] | The amount of the pension liability adjustment recognized in the Consolidated Statements of Operations within selling, general, and administrative expense and income (loss) from discontinued operations was $10.1, $9.9 and $11.8 during the years ended December 31, 2017, 2016, and 2015, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selling, General and Administrative Expense [Member] | |||||
Pension liability adjustment | $ 9 | $ 7.8 | $ 10.1 | $ 9.9 | $ 11.8 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||||
Net loss | $ (63.7) | $ (54.6) | $ (10.5) | $ (92.8) | $ (104.7) |
Loss (income) from discontinued operations | 14.8 | 2.4 | 6 | (12.5) | (3.7) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Deferred income tax benefit | (9.8) | (4.4) | (62.3) | (8.3) | (10.7) |
Depreciation and amortization | 42.4 | 39.7 | 53.8 | 53.2 | 52.2 |
Asset impairment | 10.4 | 23 | |||
Amortization of debt issuance costs and debt discount | 1.9 | 2.7 | 3.7 | 3.5 | 3.2 |
Loss on debt extinguishment | 25.7 | ||||
Net periodic pension and postretirement cost | 1.8 | 0.9 | 1.5 | 3 | 8.9 |
Share-based compensation | 18 | 12.8 | 16.1 | 12.5 | 12.8 |
Environmental reserve | 5.9 | ||||
Other | 0.1 | (2) | (0.5) | 1.2 | 0.4 |
Changes in operating assets and liabilities excluding effects of acquisitions and divestitures: | |||||
Trade and other receivables | 2.9 | 12.9 | 5.3 | (5.8) | (8.5) |
Prepaid expenses and other current assets | (3) | (2.8) | (6.9) | 1.1 | (5.6) |
Accounts payable and other accrued expenses | (8.4) | (9.3) | 0.1 | (4.4) | (4.5) |
Deferred revenue | 2.8 | 3.6 | 2.6 | (1.8) | (1.8) |
Employee compensation and benefits | (27.7) | (33.4) | (26.1) | (49.1) | (25.8) |
Accrued interest | (15.5) | (17.5) | (4.8) | (0.2) | 1.3 |
Accrued taxes | 5.2 | (10.3) | (6.7) | 14.7 | 4.5 |
Other assets and liabilities | (2.3) | 0.2 | (0.7) | (3.8) | (3.9) |
Net cash used in operating activities - continuing operations | (14.8) | (59.1) | (29.4) | (73.2) | (62.9) |
Net cash (used in) provided by operating activities - discontinued operations | (3.3) | (5.6) | (10.4) | (2.3) | 44.6 |
Net cash used in operating activities | (18.1) | (64.7) | (39.8) | (75.5) | (18.3) |
Cash Flows from Investing Activities | |||||
Purchase of customer trust funds marketable securities | (694.8) | (369.5) | (598.5) | (699.7) | (610.6) |
Proceeds from sale and maturity of customer trust funds marketable securities | 707.9 | 395.9 | 610.2 | 677.6 | 557 |
Net change in restricted cash and other restricted assets held to satisfy customer trust funds obligations | 610.1 | 252.4 | (367.8) | 677.8 | 405.3 |
Expenditures for property, plant, and equipment | (6.8) | (9.6) | (17.5) | (7.4) | (8.8) |
Expenditures for software and technology | (21.9) | (22.5) | (33.1) | (25.5) | (25.3) |
Net proceeds from divestitures | (0.5) | 101.6 | |||
Net proceeds from divestitures | 0.9 | ||||
Net cash (used in) provided by investing activities - continuing operations | 594.5 | 247.6 | (407.2) | 724.4 | 317.6 |
Net cash (used in) provided by investing activities-discontinued operations | (0.2) | (0.2) | 38.6 | 6.3 | |
Net cash (used in) provided by investing activities | 594.5 | 247.4 | (407.4) | 763 | 323.9 |
Cash Flows from Financing Activities | |||||
(Decrease) increase in customer trust funds obligations, net | (623.2) | (278.8) | 356.1 | (655.7) | (351.7) |
Net proceeds from issuance of common stock | 595 | 78.4 | 78.4 | 75 | |
Proceeds from issuance of common stock upon exercise of stock options | 22.2 | ||||
Repurchase of stock | (1.8) | (1.8) | |||
Proceeds from debt issuance | 680 | ||||
Repayment of long-term debt obligations | (1,132.3) | (25.9) | (25.9) | (11.8) | (7) |
Payment of debt refinancing costs | (23.3) | ||||
Net cash provided by (used in) financing activities - continuing operations | 406.8 | (592.5) | (358.7) | ||
Net cash used in financing activities - discontinued operations | (38.2) | (9.5) | |||
Net cash provided by (used in) financing activities | (481.6) | (228.1) | 406.8 | (630.7) | (368.2) |
Effect of Exchange Rate Changes on Cash | (1.5) | 9 | 8.6 | 1.3 | (10.4) |
Net (decrease) increase in cash and equivalents | 93.3 | (36.4) | (31.8) | 58.1 | (73) |
Elimination of cash from discontinued operations | 0.5 | 0.6 | 5.2 | (0.5) | 0.1 |
Cash and equivalents at beginning of period | 94.2 | 120.8 | 120.8 | 63.2 | 136.1 |
Cash and equivalents at end of period | $ 188 | $ 85 | 94.2 | 120.8 | 63.2 |
Supplemental Cash Flow Information: | |||||
Cash paid for interest | 89.7 | 84.9 | 83.9 | ||
Cash paid for income taxes | 21.3 | 14.8 | 15.7 | ||
Cash received from income tax refunds | $ 1.9 | $ 0.2 | $ 0.2 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity - USD ($) $ in Millions | Total | Senior Preferred Stock [Member] | Junior Preferred Stock [Member] | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) [Member] | Receivables from Stockholder | Total Stockholders Equity | Non-controlling Interest |
Balance at Dec. 31, 2014 | $ 1,117 | $ 0.6 | $ 0.7 | $ 1,518.3 | $ (106.8) | $ (295.8) | $ 1,117 | |||
Balance, shares at Dec. 31, 2014 | 58,244,308 | 64,924,845 | ||||||||
Net (loss) income | (104.7) | (104.7) | (104.7) | |||||||
Share-based compensation | 13.2 | 13.2 | 13.2 | |||||||
Foreign currency translation | (94.2) | (94.2) | (94.2) | |||||||
Change in unrealized loss, net of tax | (3.5) | (3.5) | (3.5) | |||||||
Change in minimum pension & postretirement liability, net of tax | 14.3 | 14.3 | 14.3 | |||||||
Balance at Dec. 31, 2015 | 942.1 | $ 0.6 | $ 0.7 | 1,531.5 | (211.5) | (379.2) | 942.1 | |||
Balance, shares at Dec. 31, 2015 | 58,244,308 | 64,924,845 | ||||||||
Net (loss) income | (92.8) | (92.9) | (92.9) | $ 0.1 | ||||||
Issuance of stock | 75 | $ 150.2 | $ (75.2) | 75 | ||||||
Issuance of stock, shares | 16,802,144 | |||||||||
Issuance of Common Stock upon vesting of restricted stock units | 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of Common Stock upon vesting of restricted stock units, shares | 76,192 | |||||||||
Addition of noncontrolling interest | 39.2 | 39.2 | ||||||||
Sale of the UK Business, net of tax | 25.9 | 25.9 | 25.9 | |||||||
Senior preferred dividends declared | 14.1 | (14.1) | ||||||||
Share-based compensation | 15.3 | 15.3 | 15.3 | |||||||
Foreign currency translation | 7.4 | 8 | 8 | (0.6) | ||||||
Change in unrealized loss, net of tax | (8.2) | (8.2) | (8.2) | |||||||
Change in minimum pension & postretirement liability, net of tax | 2 | 2 | 2 | |||||||
Balance at Dec. 31, 2016 | 1,005.9 | $ 164.3 | $ 0.6 | $ 0.7 | 1,546.8 | (318.5) | (351.5) | (75.2) | 967.2 | 38.7 |
Balance, shares at Dec. 31, 2016 | 16,802,144 | 58,244,308 | 65,001,037 | |||||||
Net (loss) income | (10.5) | (9.2) | (9.2) | (1.3) | ||||||
Issuance of stock | 3.2 | 3.2 | 3.2 | |||||||
Issuance of stock, shares | 183,425 | |||||||||
Issuance of common stock upon exercise of options | 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of common stock upon exercise of options, shares | 653,214 | |||||||||
Issuance of Common Stock upon vesting of restricted stock units | 0 | 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of Common Stock upon vesting of restricted stock units, shares | 76,190 | |||||||||
Share repurchase | (1.8) | (1.8) | (1.8) | |||||||
Share repurchase, shares | (627,904) | |||||||||
Payment for Issuance of Senior Preferred Stock | 75.2 | $ 75.2 | 75.2 | |||||||
Senior preferred dividends declared | 20.5 | (20.5) | ||||||||
Share-based compensation | 17.2 | 17.2 | 17.2 | |||||||
Foreign currency translation | 39.7 | 39.3 | 39.3 | 0.4 | ||||||
Change in unrealized loss, net of tax | (13.7) | (13.7) | (13.7) | |||||||
Change in minimum pension & postretirement liability, net of tax | 13.8 | 13.8 | 13.8 | |||||||
Balance at Dec. 31, 2017 | 1,129 | $ 184.8 | $ 0.6 | $ 0.7 | $ 1,565.4 | $ (348.2) | $ (312.1) | $ 1,091.2 | $ 37.8 | |
Balance, shares at Dec. 31, 2017 | 16,802,144 | 58,244,308 | 65,285,962 | |||||||
Net (loss) income | (63.7) | |||||||||
Balance at Sep. 30, 2018 | $ 1,538.5 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Sale of the UK Business, tax | $ 2.5 | ||
Change in unrealized loss, tax | $ (3.6) | (2) | $ (0.8) |
Change in minimum pension & postretirement liability, tax | $ 0 | $ 0.1 | $ 0.2 |
Organization
Organization | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization | 1. Organization Ceridian HCM Holding Inc. and its subsidiaries (also referred to in this report as “Ceridian,” “we,” “our,” and “us”) offer a broad range of services and software designed to help employers more effectively manage employment processes, such as payroll, payroll-related tax filing, human resource information systems, employee self-service, time and labor management, employee assistance programs, and recruitment and applicant screening. Our technology-based services are typically provided through long-term customer relationships that result in a high level of recurring revenue. Our operations are primarily located in the United States and Canada. On April 30, 2018, we completed our initial public offering (“IPO”), in which we issued and sold 21,000,000 shares of common stock at a public offering price of $22.00 per share. We granted the underwriters a 30-day Gross proceeds $ 631.3 Less: Underwriters’ discounts and commissions 29.2 IPO-related 11.8 Redemption of 11% Senior Notes due 2021 (Note 8) 475.0 Call premium on redemption of 11% Senior Notes due 2021 13.1 Interest on redemption of 11% Senior Notes due 2021 10.9 Sponsor management termination fee 11.3 Debt refinancing expenses 11.4 Cash to balance sheet $ 68.6 Prior to our IPO, Ceridian HCM Holding Inc. was primarily owned by Ceridian LLC (the “Parent”) and Ceridian Holding II LLC (“Ceridian Holding II”). The Parent was 100% owned by Foundation Holding LLC, which in turn was 100% owned by Ceridian Holding LLC (“Ceridian Holding”). The owners of Ceridian Holding and Ceridian Holding II included (i) affiliates and co-investors Subsequent to the IPO and concurrent private placement, we completed an internal corporate reorganization, pursuant to which the limited liability companies that held shares in us were merged with and into Ceridian HCM Holding Inc. At the time of these transactions, these limited liability companies had no assets other than equity interests in us or the other limited liability companies. As a result of these transactions, our previous, pre-IPO | 1. Organization Ceridian HCM Holding Inc. and subsidiaries (also referred to in this report as “Ceridian,” “we,” “our,” and “us”) offer a broad range of services and software designed to help employers more effectively manage employment processes, such as payroll, payroll-related tax filing, human resource information systems, employee self-service, time and labor management, employee assistance programs, and recruitment and applicant screening. Our technology-based services are typically provided through long-term customer relationships that result in a high level of recurring revenue. Our operations are primarily located in the United States and Canada. Ceridian HCM Holding Inc. is primarily owned by Ceridian LLC (the “Parent”) and Ceridian Holding II LLC (“Ceridian Holding II”). The Parent is 100% owned by Foundation Holding LLC, which in turn is 100% owned by Ceridian Holding LLC (“Ceridian Holding”). The owners of Ceridian Holding and Ceridian Holding II include (i) affiliates and co-investors of Thomas H. Lee Partners, L.P. (“THL Partners”) and Cannae Holdings, LLC, formerly known as Fidelity National Financial Ventures, LLC (“Cannae”) (THL Partners and Cannae are together referred to as the “Sponsors”), who collectively own approximately 96% of the outstanding interests of both Ceridian Holding and Ceridian Holding II, and (ii) other individuals, who collectively own approximately 4% of the outstanding interests of each holding company. The Sponsors initially acquired their indirect ownership interest in Ceridian Holding on November 9, 2007, when the Sponsors completed the acquisition of all of the outstanding equity of the Ceridian entities (the “2007 Merger”). The Sponsors acquired their ownership interest in Ceridian Holding II on March 30, 2016, when the Sponsors and other individuals purchased equity in Ceridian Holding II, which in turn purchased equity in Ceridian HCM Holding Inc. This equity financing transaction with Ceridian Holding II raised $150.2, of which $75.0 was contributed by Ceridian Holding II to Ceridian HCM Holding Inc. on March 30, 2016. The remaining $75.2 was committed to be funded to Ceridian HCM Holding Inc. within the following three years, and was recorded within equity as a receivable from stockholder. During the second quarter of 2017, the board of directors of Ceridian Holding II approved the funding of the remaining $75.2, which was transferred to Ceridian HCM Holding Inc. on June 28, 2017. Company History During the quarter ended September 30, 2015, we completed two separate transactions that resulted in the sale of our benefits administration and post-employment health insurance compliance businesses (the “Divested Benefits Continuation Businesses”). In the third quarter of 2013, we entered into an agreement for the sale of certain of our customer contracts for consumer-directed benefit services, including flexible spending accounts, health reimbursement accounts, health savings accounts, commuter (parking or transit) premium-only plans, and tuition reimbursement plans (collectively, the “Consumer-Directed Benefit Services”). These three transactions represented a strategic shift in our overall business and have had a significant impact on the financial statement results. Accordingly, the Divested Benefits Continuation Businesses, as well as the Consumer-Directed Benefit Services, have been presented as discontinued operations in the consolidated financial statements and accompanying notes for all periods presented. Please refer to Note 3, “Discontinued Operations,” for further discussion of this transaction. On June 15, 2016, we completed the stock sale of our United Kingdom and Ireland businesses, along with the portion of our Mauritius operations that supported these businesses (the “UK Business”). We received cash consideration of $93.2 in connection with this transaction. Concurrent with this transaction, we entered into a strategic partnership with the acquirer, SD Worx, a leading European provider of payroll and HCM, to deliver cloud HCM services across Europe. The UK Business has been presented as discontinued operations in the consolidated financial statements and accompanying notes for all periods presented. Please refer to Note 3, “Discontinued Operations,” for further discussion of this transaction. On March 1, 2016, we entered into a strategic joint venture with WorkAngel Technology Limited (“WorkAngel”) in which we contributed our existing LifeWorks business to a newly formed English limited company (WorkAngel Organisation Limited or the “Joint Venture Company”), which offers an employee engagement platform that delivers employee assistance programs, social recognition, exclusive perks and discounts, a private social network, employee and corporate wellness and employee engagement analytics (“LifeWorks”) in the United States, Canada, and the United Kingdom. Prior to the formation of the joint venture, employee assistance programs were provided by Ceridian. The shareholders of WorkAngel contributed all of the issued and outstanding shares of WorkAngel to the Joint Venture Company. In exchange for consideration contributed, we received 10,063,749 Class A shares and WorkAngel shareholders received 10,063,749 Class B shares. On January 20, 2017, WorkAngel Organisation Limited changed its name to LifeWorks Corporation Ltd. We have a controlling interest in the Joint Venture Company, including certain preferential distribution rights; therefore, the Joint Venture Company is consolidated within our financial statements, and the other joint venture ownership interest component is presented as a noncontrolling interest. In the second quarter of 2018, contemporaneously with our IPO and concurrent private placement, we distributed our controlling financial interest in LifeWorks to our shareholders of record prior to the IPO on a pro rata basis in accordance with their pro rata interests in us (the “LifeWorks Disposition”). The LifeWorks Disposition represents a strategic shift in our overall business and had a significant impact on the financial statement results. Therefore, the LifeWorks business has been presented as discontinued operations in the consolidated financial statements and accompanying notes for all periods presented. Please refer to Note 3, “Discontinued Operations,” for further discussion of this transaction. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accounting policies we follow are set forth in Note 2, “Summary of Significant Accounting Policies,” to Ceridian’s audited consolidated financial statements, included in our audited consolidated financial statements and notes thereto for the year ended December 31, 2017 (our “2017 Annual Report”), included within our prospectus dated April 25, 2018, as filed with the Securities and Exchange Commission (the “SEC”) on April 26, 2018, pursuant to Rule 424(b) under the Securities Act of 1933, as amended (File No. 333-223905) In the opinion of management, the unaudited condensed consolidated financial statements contained herein reflect all adjustments (consisting only of normal recurring adjustments, except as set forth in these notes to condensed consolidated financial statements) necessary to present fairly in all material aspects the financial position, results of operations, comprehensive loss, and cash flows from all periods presented. Interim results are not necessarily indicative of results for a full year. Reverse Stock Split On April 10, 2018, we effected a 1-for-2 Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates that could significantly affect our results of operations or financial condition involve the assignment of fair values to goodwill and other intangible assets, the testing of impairment of long-lived assets, the determination of our liability for pensions and postretirement benefits, the determination of fair value of stock options granted, and the resolution of tax matters and legal contingencies. Please refer to our 2017 Annual Report for a further discussion of these estimates. Internally Developed Software Costs In accordance with Accounting Standards Codification (“ASC”) Topic 350, we capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and our management has authorized further funding for the project, which it deems probable of completion. Capitalized software costs include only: (1) external direct costs of materials and services consumed in developing or obtaining the software; (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the project; and (3) interest costs incurred while developing the software. Capitalization of these costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We do not include general and administrative costs and overhead costs in capitalizable costs. We charge research and development costs and other software maintenance costs related to software development to earnings as incurred. Foreign Currency Translation We have international operations whereby the local currencies serve as functional currencies. We translate foreign currency denominated assets and liabilities at the end-of-period Recently Issued and Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, non-public No. 2014-09 In preparation for this planned adoption, we have been evaluating the impact of the new standard to our financial statements and accompanying disclosures in the notes to our consolidated financial statements. Our assessment of the impact includes an evaluation of the five-step process set forth in the new standard along with the enhancement of disclosures that will be required. To date, we have developed our initial plan for implementing the standard, which includes identifying customer contracts within the scope of the new standard, identifying performance obligations within those customer contracts, and evaluating the impact of incremental variable consideration paid to obtain those customer contracts. We have also undertaken a comprehensive review of all contracts that fall under the scope of the new standard; and, as of the date of this report, we have substantially completed our review of in-scope Based on analysis performed to date, we expect that adoption of the new standard will result in changes to the classification and timing of our revenue recognition. Specifically, we expect an increase in revenue classified as professional services and other revenue and a reduction in revenue classified as recurring services revenue under the new standard, as compared to current U.S. GAAP. Further, we expect that the new standard will result in changes to the timing of our revenue recognition compared to current U.S. GAAP. In compliance with the new standard, a contractual asset will be reflected on the consolidated balance sheets and will be amortized over the customers’ period of benefit, which is generally three years. We also expect changes to the timing of certain incremental selling, general, and administrative expenses, as the new standard will also require capitalizing and amortizing certain selling expenses, such as commissions and bonuses paid to the sales force. These sales expenses will be amortized over the customer’s period of benefit, generally five years. In periods of revenue growth, the changes above are expected to result in higher overall earnings before income taxes and net income, on an annual basis, when compared to current U.S. GAAP. We have not yet determined the impact of the disclosure requirements. The following table presents the anticipated impacts that the adoption of ASC 606 would have for the periods presented: Nine Months Ended September 30, 2018 As Reported Under ASC 606 Impact Revenue: Recurring services $ 480.8 $ 460.4 $ (20.4 ) Professional services and other 65.3 85.5 20.2 Total revenue $ 546.1 $ 545.9 $ (0.2 ) Operating profit $ 31.3 $ 36.9 $ 5.6 Nine Months Ended September 30, 2017 As Reported Under ASC 606 Impact Revenue: Recurring services $ 438.2 $ 419.8 $ (18.4 ) Professional services and other 50.2 72.7 22.5 Total revenue $ 488.4 $ 492.5 $ 4.1 Operating profit $ 16.9 $ 25.7 $ 8.8 In February 2016, the FASB issued ASU No. 2016-02, non-public right-of-use In July 2018, the FASB issued ASU No. 2018-10, 2018-11, No. 2018-10 No. 2016-02. non-early No. 2016-02. No. 2018-11 non-lease non-lease No. 2016-02. In August 2016, the FASB issued ASU No. 2016-15, non-public In February 2018, the FASB issued ASU No. 2018-02, | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying consolidated financial statements include the operations and accounts of Ceridian and all subsidiaries, as well as any variable interest entity (“VIE”) in which we have controlling financial interest. All intercompany balances and transactions have been eliminated from our consolidated financial statements. We consolidate the grantor trusts that hold funds provided by our payroll and tax filing customers pending remittance to employees of those customers or tax authorities in the United States and Canada. Under consolidation accounting, the enterprise with a controlling financial interest consolidates a VIE. A controlling financial interest in an entity is determined through analysis that identifies the primary beneficiary which has (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (2) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. In addition, ongoing reassessments must be performed to confirm whether an enterprise is the primary beneficiary of a VIE. The grantor trusts are VIEs, and we are deemed to have a controlling financial interest as the primary beneficiary. Please refer to Note 6, “Customer Trust Funds,” for further information on our accounting for these funds. Reverse Stock Split On April 10, 2018, we effected a 1-for-2 reverse stock split of our common stock. All of the common share and per share information referenced throughout the consolidated financial statements and accompanying notes thereto have been retroactively adjusted to reflect this reverse stock split. Revision of Prior Period Financial Statements In connection with the preparation of our consolidated financial statements for the year ended December 31, 2017, we identified a prior period error pertaining to the misclassification of a deferred tax liability attributable to previously amortized tax basis goodwill as a deferred tax liability eligible to offset deferred tax assets when determining the requirement for a valuation allowance. This resulted in a $12.7 understatement of non-cash income tax expense in fiscal years prior to December 31, 2015, impacting accumulated deficit amounts as a component of stockholders’ equity as of December 31, 2015 and 2016. There was no impact to the consolidated statements of operations for any period presented. In accordance with accounting guidance found in Accounting Standards Codification (“ASC”) Topic 250-10 (Securities and Exchange Commission Staff Accounting Bulletin No. 99, “Materiality,” and No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements”), we assessed the materiality of the error from quantitative and qualitative perspectives and concluded that the error was not material to any of our previously issued financial statements. Since the revision was not material to any prior period, no amendments to previously issued financial statements are required. Consequently, we have adjusted for this error by revising our historical financial statements presented herein. We have recognized the cumulative effect of the error on periods prior to those that are presented herein by increasing accumulated deficit and other liabilities by $12.7 on our consolidated balance sheets as of December 31, 2016, and increasing accumulated deficit by $12.7 on our consolidated statements of stockholders’ equity as of December 31, 2014, 2015 and 2016. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our financial statements and our reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates that could significantly affect our results of operations or financial condition involve the assignment of fair values to goodwill and other intangible assets and testing for impairment; the testing of impairment of long-lived assets; the determination of our liability for pensions and postretirement benefits; the determination of fair value of stock options granted; and the resolution of tax matters and legal contingencies. Further discussion on these estimates can be found in related disclosures elsewhere in our notes to the consolidated financial statements. Cash and Equivalents As of December 31, 2017 and 2016, cash and equivalents were comprised of cash held in bank accounts and investments with an original maturity of three months or less. Concentrations Cash deposits of client and corporate funds are maintained primarily in large credit-worthy financial institutions in the countries in which we operate. These deposits may exceed the amount of any deposit insurance that may be available through government agencies. All deliverable securities are held in custody with large credit-worthy financial institutions which bear the risk of custodial loss. Non-deliverable securities, primarily money market securities, are restricted to large, credit-worthy broker-dealers and financial institutions. Trade and Other Receivables, Net Trade and other receivables balances are presented on the consolidated balance sheets net of the allowance for doubtful accounts of $1.3 and $1.8 and the reserve for sales adjustment of $4.7 and $4.1 as of December 31, 2017 and 2016, respectively. We experience credit losses on accounts receivable and, accordingly, must make estimates related to the ultimate collection of the receivables. Specifically, management analyzes accounts receivable, historical bad debt experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We estimate the reserve for sales adjustment based on historical sales adjustment experience. We write off accounts receivable when we determine that the accounts are uncollectible, generally upon customer bankruptcy or the customer’s nonresponse to continued collection efforts. Property, Plant, and Equipment Our property, plant, and equipment assets are stated at cost less depreciation. Depreciation is calculated on a straight-line basis over the shorter of the remaining lease term or estimated useful life of the related assets, which are generally as follows: Buildings 40 years Building improvements 5-14 years Machinery and equipment 3-8 years Computer equipment 3-6 years Repairs and maintenance costs are expensed as incurred. We capitalized interest of $0.6 and $0.4 in property, plant, and equipment during the years ended December 31, 2017 and 2016, respectively. Property, plant, and equipment assets are assessed for impairment as described under the heading “Impairment of Long-Lived Assets” below. Assignment of Fair Values Upon Acquisition of Goodwill and Other Intangible Assets In the event of a business combination where we are the acquiring party, we are required to assign fair values to all identifiable assets and liabilities acquired, including intangible assets, such as customer lists, identifiable intangible trademarks, technology and non-compete agreement. We are also required to determine the useful life for definite-lived identifiable intangible assets acquired. These determinations require significant judgments, estimates, and assumptions, and, when material amounts are involved, we generally utilize the assistance of third-party valuation consultants. The remainder of the purchase price of the acquired business not assigned to identifiable assets or liabilities is then recorded as goodwill. In conjunction with the 2007 Merger, affiliates of the Sponsors completed the acquisition of all outstanding equity of the Ceridian entities. Although Parent continued as the same legal entity after the 2007 Merger, the application of push down accounting representing the termination of the old accounting entity and the creation of a new one resulted in the adjustment of all net assets to their respective fair values as of the 2007 Merger. Net assets of the Parent were adjusted to their respective fair values, which included goodwill, trademarks, customer lists, and other intangible assets. At the time of the legal separation of Ceridian and Comdata on October 1, 2013 (the “Separation Transaction”), there was no change in ownership control by the Sponsors and other stockholders of Parent and its ownership structure and accordingly, Ceridian’s separation from Parent was not accounted for as a business combination. As such, the goodwill and intangibles from the 2007 Merger remain after the Separation Transaction. Goodwill and Intangible Assets Goodwill, which represents the excess purchase price over the fair value of net assets of businesses acquired, is assigned to reporting units based on the benefits derived from the acquisition. Goodwill and indefinite-lived intangibles are not amortized against earnings but instead are subject to impairment review on at least an annual basis. We perform our annual assessment of goodwill and indefinite-lived intangible balances as of October 1 of each year. There was no indication of impairment for either reporting unit at October 1, 2017. As of January 1, 2017, we elected early adoption of Accounting Standards Update No. 2017-04, “Intangibles-Goodwill and Other,” which simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. We assess goodwill impairment risk by first performing a qualitative review of entity-specific, industry, market, and general economic factors for each reporting unit. If significant potential goodwill impairment risk exists for a specific reporting unit, we apply a quantitative test. The quantitative test compares the reporting unit’s estimated fair value with its carrying amount. In estimating fair value of our reporting units, we use a combination of the income approach and the market-based approach. A number of significant assumptions and estimates are involved in determining the current fair value of the reporting units, including operating cash flows, markets and market share, sales volumes and prices, and working capital changes. We consider historical experience and all available information at the time the fair values of our reporting units are estimated. However, fair values that could be realized in an actual transaction may differ from those used to evaluate the goodwill for impairment. The evaluation of impairment involves comparing the current fair value of the reporting unit to the carrying amount. To the extent that the carrying amount of goodwill of the reporting unit exceeds the fair value of the reporting unit, an impairment loss is recognized. Intangible assets represent amounts assigned to specifically identifiable intangible assets at the time of an acquisition. Definite-lived assets are amortized on a straight-line basis generally over the following periods: Customer lists and relationships 5-15 years Technology 2-7 years Indefinite-lived intangible assets, which consist of trademarks, are tested for impairment on an annual basis, or more frequently if certain events or circumstances occur that could indicate impairment. When evaluating whether the indefinite-lived intangible assets are impaired, the carrying amount is compared to its estimated fair value. The estimate of fair value is based on a relief from royalty method which calculates the cost savings associated with owning rather than licensing the trademark. An estimated royalty rate is applied to forecasted revenue and the resulting cash flows are discounted. Definite-lived assets are assessed for impairment as described under the heading “Impairment of Long-Lived Assets” below. Internally Developed Software Costs We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and our management has authorized further funding for the project, which it deems probable of completion. Capitalized software costs include only: (1) external direct costs of materials and services consumed in developing or obtaining the software; (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the project; and (3) interest costs incurred while developing the software. Capitalization of these costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We do not include general and administrative costs and overhead costs in capitalizable costs. We charge research and development costs and other software maintenance costs related to software development to earnings as incurred. We had capitalized software costs, net of accumulated amortization, of $56.4 and $46.5 as of December 31, 2017 and 2016, respectively, included in property, plant, and equipment in the accompanying consolidated balance sheets. We amortize software costs on a straight-line basis over the expected life of the software, generally a range of two to seven years. Amortization of software costs totaled $23.6, $20.9, and $19.4 for the years ended December 31, 2017, 2016, and 2015, respectively. Impairment of Long-Lived Assets Long-lived assets, such as property, plant, and equipment, capitalized software, and definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is measured by a comparison of the carrying amount of an asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Please refer to Note 13, “Supplementary Data to Statements of Operations” for further information on the impairment of long-lived assets for the years ended December 31, 2017, 2016, and 2015 . Revenue Recognition We recognize revenue from the sale of our services, net of applicable sales taxes, when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. We rely on a signed contract with the customer as the persuasive evidence of a sales arrangement. We enter into revenue arrangements that may consist of multiple deliverables based on the needs of our customers. For example, our services address a broad range of employment process needs, such as payroll, payroll-related tax filing, human resource information, employee self-service capabilities, time and labor management, employee assistance, work-life, recognition, and incentive programs, and recruitment and applicant screening. A customer arrangement may contain any of these elements with different elements delivered across multiple reporting periods. We have a single unit of accounting for each deliverable in a contract based on the use of estimated selling price (“ESP”) in those cases where vendor-specific objective evidence of selling price (“VSOE”) or third party evidence (“TPE”) cannot be established. Our determination of ESP involves the consideration of several factors based on the specific facts and circumstances of each contract. Specifically, we consider the cost to produce or to provide the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar services, the value of any enhancements that have been built into the deliverable and the characteristics of the varying markets in which the deliverable will be sold. When we are unable to establish a selling price using VSOE or TPE, we use ESP in the allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact a sale if the service were sold on a stand-alone basis. We regularly review VSOE, TPE, and ESP and maintain internal controls over the establishment and updates of these estimates. There were no material impacts during the period nor do we currently expect a material impact in the near term from changes in VSOE, TPE, or ESP. Deferred revenue primarily consists of customer billings in advance of revenues being recognized from our contracts. Deferred revenue also includes certain deferred professional services fees that are accounted for as a single unit of accounting with subscription fees and are recognized as revenues over the same period as the related customer contract. Deferred revenue that is anticipated to be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent. Recurring Services Revenues Revenues are presented within the consolidated statements of operations in two categories: recurring services, and professional services and other. Recurring services revenues consist of monthly fees that we charge for our Cloud and Bureau solutions, as well as for LifeWorks. For our Dayforce solutions, we primarily charge monthly recurring fees on a PEPM basis, generally one-month in advance of service, based on the number and type of solutions provided to the customer and the number of employees at the customer. We charge Powerpay customers monthly recurring fees on a per-employee, per-process basis. For our Bureau solutions, we typically charge monthly recurring fees on a per-process basis. The typical recurring services customer contract has an initial term of three years. The initial recurring services contracts have general acceptance criteria that consist of the completion of user acceptance testing. Any credits related to service level commitments are recognized as incurred as service level failures and are not anticipated at contract signing. Should a customer cancel the initial contract, an early termination fee may be applicable and revenue is recognized upon collection. We also generate recurring services revenue from investment income on our Cloud and Bureau customer funds held in trust before such funds are remitted to taxing authorities, customer employees or other third parties. We refer to this investment income as float revenue. Please refer to Note 18, “Financial Data by Segment and Geographic Area,” for a full description of our sources of revenue. Professional Services and Other Revenues Professional services and other revenues consist primarily of charges relating to the work performed to assist customers with the implementation of their solutions. Also included in professional services are any related training services, post-implementation professional services, and purchased time clocks. We also generate professional services and other revenues from custom professional services and consulting services that we provide and for certain third-party services that we arrange for our Bureau customers. Professional services revenue is primarily recognized as hours are incurred. Costs and Expenses Cost of Revenue Cost of revenue consists of costs to deliver our revenue-producing services. Most of these costs are recognized as incurred, that is, as we become obligated to pay for them. Some costs of revenue are recognized in the period that a service is sold and delivered. Other costs of revenue are recognized over the period of use or in proportion to the related revenue. The costs recognized as incurred consist primarily of customer service staff costs, customer technical support costs, implementation personnel costs, costs of hosting applications, consulting and purchased services, delivery services, and royalties. The costs of revenue recognized over the period of use are depreciation and amortization, rentals of facilities and equipment, and direct and incremental costs associated with deferred implementation service revenue. Cost of recurring services revenues primarily consists of costs to provide maintenance and technical support to our customers, and the costs of hosting our applications. The cost of recurring services revenues includes compensation and other employee-related expenses for data center staff, payments to outside service providers, data center, and networking expenses. Cost of professional services and other revenues primarily consists of costs to provide implementation consulting services and training to our customers, as well as the cost of time clocks. Costs to provide implementation consulting services include compensation and other employee-related expenses for professional services staff, costs of subcontractors, and travel. Product development and management expense includes costs related to software development activities that do not qualify for capitalization, such as development, quality assurance, testing of new technologies, and enhancements to our existing solutions that do not result in additional functionality. Product development and management expense also includes costs related to the management of our service offerings. Research and development expense, which is included within product development and management expense, was $19.0, $13.0, and $11.2 for the years ended December 31, 2017, 2016, and 2015, respectively. Depreciation and amortization related to cost of revenue primarily consists of amortization of capitalized software. Selling, General, and Administrative Expense Selling expense includes costs related to maintaining a direct marketing infrastructure and sales force and other direct marketing efforts, such as advertising, telemarketing, direct mail, and trade shows. Advertising costs are expensed as incurred. Advertising expense was $5.6, $5.9, and $5.4 for the years ended December 31, 2017, 2016, and 2015, respectively. General and administrative expense includes costs that are not directly related to delivery of services, selling efforts, or product development, primarily consisting of corporate-level costs, such as administration, finance, legal and human resources. Also included in this category are the provision for doubtful accounts receivable, net periodic pension costs, depreciation, and amortization of other intangible assets not reflected in cost of revenue. Other Expense, Net Other expense, net includes the results of transactions that are not appropriately classified in another category. These items are primarily foreign currency translation gains and losses, environmental reserve charges, and charges related to the impairment of asset values. Income Taxes Income taxes have been provided for using the liability method. The liability method requires an asset and liability based approach in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities and the expected benefits of utilizing net operating loss carryforwards. The impact on deferred taxes of changes in tax rates and laws, if any, applied to the years during which temporary differences are expected to be settled, are reflected in the consolidated financial statements in the period of enactment. We classify interest and penalties related to income taxes as a component of the income tax provision. Fair Value of Financial Instruments The carrying amounts of cash and equivalents, trade and other receivables, net, customer trust funds, customer trust funds obligations, customer advance payments, and accounts payable approximate fair value because of the short-term nature of these items. Share-Based Compensation Our employees participate in share-based compensation plans. Under the fair value recognition provisions of share-based compensation accounting, we measure share-based compensation cost at the grant date based on the fair value of the award and recognize the compensation expense over the requisite service period, which is the period during which an employee is required to provide services in exchange for the award. We use the Black-Scholes standard option pricing model (“Black-Scholes model”) to determine the fair value of stock options with term-based vesting conditions. The determination of the fair value of the awards on the date of grant using the Black-Scholes model is affected by the value of our common stock as well as other inputs and assumptions described below. The value of our common stock is determined by the Board of Directors with assistance from a third-party valuation expert. We use an integrated Monte Carlo simulation model and a trinomial lattice model to determine fair value of performance-based options. The Monte Carlo model utilizes multiple input variables that determine the probability of satisfying the market conditions stipulated in the award. This probability is an input into the trinomial lattice model used to fair value the options as well as other inputs and assumptions described below. If factors change and we employ different assumptions for estimating share-based compensation expense in future periods or if we adopt a different valuation model, the future periods may differ significantly from what we have recorded in the current period and could materially affect our operating results. To determine fair value of both term- and performance-based stock options, the risk-free interest rate used was based on the implied yield currently available on U.S. Treasury zero coupon issues with remaining term equal to the contractual term of the performance-based options and the expected term of the term-based option. The estimated volatility of our common stock is based on volatility data for selected comparable public companies over the expected term of our stock options. Because we do not anticipate paying any cash dividends in the foreseeable future, we use an expected dividend yield of zero. The amount of share-based compensation expense we recognize during a period is based on the portion of the awards that are ultimately expected to vest. We estimate option forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We analyze historical data to estimate pre-vesting forfeitures and record share-based compensation expense for those awards expected to vest. We recognize term-based stock compensation expense using the straight-line method. Foreign Currency Translation We have international operations whereby the local currencies serve as functional currencies. We translate foreign currency denominated assets and liabilities at the end-of-period exchange rates and foreign currency denominated statements of operations at the weighted-average exchange rates for each period. We report the effect of changes in the U.S. dollar carrying values of assets and liabilities of our international operations that are due to changes in exchange rates between the U.S. dollar and their functional currency as foreign currency translation within accumulated other comprehensive income (loss) in the accompanying consolidated statements of stockholders’ equity and comprehensive income (loss). Gains and losses from transactions and translation of assets and liabilities denominated in currencies other than the functional currency of the international operation are recorded in the consolidated statements of operations within other expense, net. Recently Issued and Adopted Accounting Pronouncements In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which replaced all existing revenue guidance created by ASC Topic 606, including prescriptive industry-specific guidance. This standard’s core principle is that an entity will recognize revenue when it transfers promised 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. Entities will need to apply more judgment and make more estimates than under the previous guidance. In July 2015 the FASB deferred the effective date for all entities by one year, making the guidance for non-public companies effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within that reporting period). The standard permits the use of either the retrospective or cumulative effect transition method. Management has decided to adopt the new standard effective first quarter 2019. Management anticipates using the retrospective method for adoption. In preparation for this planned adoption, we have been evaluating the impact of the new standard to our financial statements and accompanying disclosures in the notes to our consolidated financial statements. Our assessment of the impact includes an evaluation of the five-step process set forth in the new standard along with the enhancement of disclosures that will be required. To date, we have developed our initial plan for implementing the standard, which includes identifying customer contracts within the scope of the new standard, identifying performance obligations within those customer contracts, and evaluating the impact of incremental variable consideration paid to obtain those customer contracts. We have also undertaken a comprehensive review of all contracts that fall under the scope of the new standard; and, as of the date of this report, we are nearly complete with our review of in-scope contracts. Based on analysis performed to date, we expect that adoption of the new standard will result in changes to the classification and timing of our revenue recognition. Specifically, we expect an increase in revenue classified as professional services and other revenue and a reduction in revenue classified as recurring services revenue, compared to current U.S. GAAP. Further, we expect that the new standard will result in changes to the timing of our revenue recognition compared to current U.S. GAAP. In compliance with the new standard, a contractual asset will be reflected on the consolidated balance sheets and will be amortized over the customers’ period of benefit, which is generally three years. We also expect changes to the timing of certain selling, general, and administrative expenses, as the new standard will also require capitalizing and amortizing certain selling expenses, such as commissions and bonuses paid to the sales force. These sales expenses will be amortized over the customer’s period of benefit, generally five years. In periods of revenue growth, the changes above are expected to result in higher overall earnings before income taxes and net income when compared to current U.S. GAAP. We have not yet determined the impact of the disclosure requirements. In February 2016 the FASB issued ASU No. 2016-02, “Leases,” which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard requires balance sheet recognition for both finance leases and operating leases. This guidance is effective for non-public companies for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The guidance is required to be adopted using a modified retrospective approach. An entity will, in effect, continue to account for leases that commence before the effective date in accordance with previous U.S. GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous U.S. GAAP. We are currently evaluating the impact of the adoption of this standard. In March 2016 the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation,” |
Discontinued Operations
Discontinued Operations | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Discontinued Operations | 3. Discontinued Operations Distribution of LifeWorks Business On March 1, 2016, we entered into a strategic joint venture with WorkAngel Technology Limited (“WorkAngel”) in which we contributed our existing LifeWorks employee assistance program business to WorkAngel Organisation Limited, a newly formed English limited company. On January 20, 2017, WorkAngel Organisation Limited changed its name to LifeWorks Corporation Ltd (“LifeWorks”). We had a controlling interest in LifeWorks, including certain preferential distribution rights; therefore, LifeWorks was consolidated within our financial statements, and the other joint venture ownership interest component was presented as a noncontrolling interest. During the nine months ended September 30, 2018, there was loss attributable to the noncontrolling interest of $0.5. During the nine months ended September 30, 2017, there was loss attributable to the noncontrolling interest of $0.4. In the second quarter of 2018, contemporaneously with our IPO and concurrent private placement, we distributed our controlling financial interest in LifeWorks to our stockholders of record prior to the IPO on a pro rata basis in accordance with their pro rata interests in us (the “LifeWorks Disposition”). At this time, the LifeWorks Disposition represented a strategic shift in our overall business and had a significant impact on the financial statement results. Therefore, the LifeWorks business has been presented as discontinued operations in the condensed consolidated financial statements and accompanying notes for all periods presented. Ceridian’s net book value related to LifeWorks of $95.7 was recorded as a distribution through additional paid in capital within our condensed consolidated balance sheet during the second quarter of 2018. The amounts in the table below reflect the operating results of LifeWorks reported as discontinued operations, as well as supplemental disclosures of the discontinued operations: Nine Months Ended September 30, 2018 2017 Net revenues $ 28.3 $ 59.9 Income (loss) from operations before income taxes (0.9 ) 1.9 Income tax expense (13.9 ) (3.9 ) Loss from discontinued operations, net of income taxes $ (14.8 ) $ (2.0 ) Depreciation and amortization $ 1.4 $ 3.0 Capital expenditures $ — $ 0.2 The amounts in the table below reflect the assets and liabilities reported as discontinued operations for LifeWorks: December 31, 2017 Assets: Cash and equivalents $ 5.3 Trade and other receivables, net 13.3 Prepaid expenses 1.5 Property, plant and equipment, net 1.8 Other intangible assets, net 5.9 Goodwill 126.3 Other assets 2.1 Assets of discontinued operations $ 156.2 Liabilities: Accounts payable $ 4.4 Deferred revenue 2.8 Employee compensation and benefits 1.3 Other liabilities 10.8 Liabilities of discontinued operations $ 19.3 Sale of UK Business On June 15, 2016, we completed the stock sale of our United Kingdom and Ireland businesses, along with the portion of our Mauritius operations that supported these businesses (the “UK Business”). Concurrent with this transaction, we entered into a strategic partnership with the acquirer, SD Worx, a leading European provider of payroll and human capital management (“HCM”) services, to deliver cloud HCM services across Europe. This transaction in the second quarter of 2016 represented a strategic shift in our overall business and had a significant impact on our financial statement results. Therefore, the UK Business has been presented as discontinued operations in the condensed consolidated financial statements and accompanying notes for all periods presented. The amounts in the table below reflect the operating results of the UK Business reported as discontinued operations, as well as supplemental disclosures of discontinued operations: Nine Months September 30, Net revenues $ — Loss from operations before income taxes — Loss on sale of businesses (0.7 ) Income tax expense — Loss from discontinued operations, net of income taxes $ (0.7 ) Sale of Divested Benefits Continuation Businesses In the third quarter of 2013, we entered into an agreement for the sale of certain of our customer contracts for consumer-directed benefit services, including flexible spending accounts, health reimbursement accounts, health savings accounts, commuter (parking or transit) premium-only plans, and tuition reimbursement plans (collectively, the “Consumer-Directed Benefit Services”). During the third quarter of 2015, we completed two separate transactions that resulted in the sale of our benefits administration and post-employment health insurance portability compliance businesses (the “Divested Benefits Continuation Businesses”). These three transactions, which were completed in the third quarter of 2015, represented a strategic shift in our overall business and had a significant impact on the financial statement results. Accordingly, the Divested Benefits Continuation Businesses, as well as the Consumer-Directed Benefit Services, have been presented as discontinued operations in the condensed consolidated financial statements and accompanying notes for all periods presented. The amounts in the table below reflect the operating results and gain on sale of the Divested Benefits Continuation Businesses reported as discontinued operations: Nine Months September 30, Net revenues $ — Income from operations before income taxes — (Loss) gain on sale of businesses 0.5 Income tax benefit (expense) (0.2 ) (Loss) income from discontinued operations, net of income taxes $ 0.3 For both sales of the Divested Benefits Continuation Businesses, consideration received was contingent upon the number and dollar value of successful customer transitions and was recorded when earned. The proceeds received and earned during the nine months ended September 30, 2017, were for a final purchase price true-up The remaining liabilities related to discontinued operations for the Divested Benefits Continuation Businesses as of September 30, 2018, and December 31, 2017, were $0.2 and $0.3 of other accrued expenses. | 3. Discontinued Operations Life Works Disposition In the second quarter of 2018, contemporaneously with our IPO and concurrent private placement, we distributed our controlling financial interest in LifeWorks to our stockholders of record prior to the IPO on a pro rata basis in accordance with their pro rata interest in us. The LifeWorks Disposition represents a strategic shift in our overall business and had a significant impact on the financial statement results. Therefore, the LifeWorks business has been presented as discontinued operations in our consolidated financial statements and accompanying notes for all periods presented. Ceridian’s net book value related to LifeWorks of $95.7 was recorded as a distribution through additional paid in capital within our consolidated balance sheet during the second quarter of 2018. The amounts in the table below reflect the operating results of LifeWorks reported as discontinued operations, as well as supplemental disclosures of the discontinued operations: Year Ended December 31, 2017 2016 2015 Net revenues $ 79.9 $ 80.8 $ 82.3 (Loss) income from operations before income taxes (0.4 ) 7.1 23.8 Income tax expense (4.9 ) (11.1 ) (4.3 ) (Loss) income from discontinued operations, net of income taxes $ (5.3 ) $ (4.0 ) $ 19.5 Depreciation and amortization $ 4.1 $ 4.1 $ 3.8 Capital expenditures $ 0.2 $ 0.3 $ 0.4 The amounts in the table below reflect the assets and liabilities reported as discontinued operations for LifeWorks: December 31, 2017 2016 Assets: Cash and equivalents $ 5.4 $ 10.6 Trade and other receiveables, net 13.3 7.0 Prepaid expenses 1.5 1.7 Property, plant, and equipment, net 1.8 2.4 Other intangible assets, net 5.9 9.2 Goodwill 126.3 124.9 Other assets 2.0 0.2 Assets of discontinued operations $ 156.2 $ 156.0 Liabilities: Accounts payable $ 4.4 $ 5.7 Deferred revenue 2.8 1.9 Employee compensation and benefits 1.2 1.1 Other liabilities 10.9 10.4 Liabilities of discontinued operations $ 19.3 $ 19.1 Sale of UK Business On June 15, 2016, we completed the stock sale of our United Kingdom and Ireland businesses, along with the portion of our Mauritius operations that supported these businesses (the “UK Business”). We received $93.2 in connection with this transaction. Concurrent with this transaction, we entered into a strategic partnership with the acquirer, SD Worx, a leading European provider of payroll and HCM services, to deliver cloud human capital management (“HCM”) services across Europe. This transaction represented a strategic shift in our overall business and had a significant impact on our financial statement results. Therefore, the UK Business has been presented as discontinued operations in the consolidated financial statements and accompanying notes for all periods presented. The sale of the UK Business, which made up the International reporting unit, was considered a sale of a business, and as such, the entire goodwill balance assigned to the International reporting unit of $23.8 was included in the carrying amount used in determining the gain on sale of the UK Business. During the year ended December 31, 2017, there was a settlement payment made to SD Worx. The amounts in the table below reflect the operating results of the UK Business reported as discontinued operations, as well as supplemental disclosures of the discontinued operations: Year Ended December 31, 2017 2016 2015 Net revenues $ — $ 37.0 $ 79.2 Income from operations before income taxes — 0.5 2.3 (Loss) gain on sale of businesses (1.0 ) 5.9 — Income tax benefit (expense) — 0.2 (1.4 ) (Loss) income from discontinued operations, net of income taxes $ (1.0 ) $ 6.6 $ 0.9 Depreciation and amortization $ — $ 1.3 $ 3.3 Capital expenditures $ — $ 0.7 $ 2.4 Sale of Divested Benefits Continuation Businesses In the third quarter of 2013, we entered into an agreement for the sale of certain of our customer contracts for consumer-directed benefit services, including flexible spending accounts, health reimbursement accounts, health savings accounts, commuter (parking or transit) premium-only plans, and tuition reimbursement plans (collectively, the “Consumer-Directed Benefit Services”). During the third quarter of 2015, we completed two separate transactions that resulted in the sale of our benefits administration and post-employment health insurance portability compliance businesses (the “Divested Benefits Continuation Businesses”). These three transactions represented a strategic shift in our overall business and have had a significant impact on the financial statement results. Accordingly, the Divested Benefits Continuation Businesses, as well as the Consumer-Directed Benefit Services, have been presented as discontinued operations in the consolidated financial statements and accompanying notes for all periods presented. The amounts in the table below reflect the operating results and gain on sale of the Divested Benefits Continuation Businesses reported as discontinued operations, as well as supplemental disclosures of the discontinued operations: The purchase price of the Consumer-Directed Benefit Services was subject to adjustment, dependent upon which customers transitioned to the acquirer. The proceeds of $15.0 for the Consumer-Directed Benefit Services were received on the sale date in the third quarter of 2013. Since a portion of the customer contracts were assigned to the acquirer on the sale date, that portion of the purchase price was recognized upon the sale date. For the remaining contracts that required transition, the purchase price was deferred and recognized as each contract transferred. The final calculation of the purchase price was determined during the second quarter of 2015, which resulted in the recognition of an additional gain of $1.5. Year Ended December 31, 2017 2016 2015 Net revenues $ — $ 4.8 $ 40.0 (Loss) income from operations before income taxes — (0.8 ) 12.2 Gain (loss) on sale of businesses 0.5 21.0 (28.9 ) Income tax expense (0.2 ) (10.3 ) — Income (loss) from discontinued operations, net of income taxes $ 0.3 $ 9.9 $ (16.7 ) Depreciation and amortization $ — $ — $ 0.4 Capital expenditures $ — $ — $ 0.5 For both sales of the Divested Benefits Continuation Businesses, consideration received was contingent upon the number and dollar value of successful customer transitions and is recorded when earned. Proceeds of $21.0, and $0.4 were received and earned based on the customers transitioned during the years ended December 31, 2016, and 2015, respectively. The proceeds received during the year ended December 31, 2017, were for a final purchase price true-up related to one of the transactions. Both sales of the Divested Benefits Continuation Businesses were considered a sale of a business, and as such, a portion of goodwill was assigned to each disposed business based on its relative fair value. This resulted in a combined goodwill assignment of $22.5, which is included in the loss on sale within discontinued operations. Additionally, a write-off of the long-lived assets associated with the disposal group of $8.1 is included in the loss on sale within discontinued operations. These long-lived assets consisted primarily of customer lists and relationships intangible assets, equipment, and software. The amounts in the table below reflect the assets and liabilities reported as discontinued operations for the Divested Benefits Continuation Businesses. These amounts are included within other current assets and other accrued expenses, respectively, in our consolidated balance sheets: December 31, 2017 2016 Assets: Other assets $ — $ 0.1 Assets of discontinued operations $ — $ 0.1 Liabilities: Accounts payable $ — $ 0.4 Other liabilities 0.3 0.5 Liabilities of discontinued operations $ 0.3 $ 0.9 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | 4. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). U.S. GAAP outlines a valuation framework and creates a fair value hierarchy intended to increase the consistency and comparability of fair value measurements and the related disclosures. Certain assets and liabilities must be measured at fair value, and disclosures are required for items measured at fair value. We measure our financial instruments using inputs from the following three levels of the fair value hierarchy. The three levels are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. • Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (that is, interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 inputs include unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including internal data. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis As of September 30, 2018, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: Total Level 1 Level 2 Level 3 Assets Available for sale customer trust funds assets $ 1,720.1 $ — $ 1,720.1 (a) $ — Total assets measured at fair value $ 1,720.1 $ — $ 1,720.1 $ — As of December 31, 2017, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: Total Level 1 Level 2 Level 3 Assets Available for sale customer trust funds assets $ 1,782.1 $ — $ 1,782.1 (a) $ — Total assets measured at fair value $ 1,782.1 $ — $ 1,782.1 $ — (a) Fair value is based on inputs that are observable for the asset or liability, other than quoted prices. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis During the nine months ended September 30, 2018, and the year ended December 31, 2017, we did not re-measure | 5. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). U.S. GAAP outlines a valuation framework and creates a fair value hierarchy intended to increase the consistency and comparability of fair value measurements and the related disclosures. Certain assets and liabilities must be measured at fair value, and disclosures are required for items measured at fair value. We measure our financial instruments using inputs from the following three levels of the fair value hierarchy. The three levels are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. • Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (that is, interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 inputs include unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including internal data. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis As of December 31, 2017, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: Total Level 1 Level 2 Level 3 Assets Available for sale customer trust funds assets $ 1,782.1 $ — $ 1,782.1 (a) $ — Total assets measured at fair value $ 1,782.1 $ — $ 1,782.1 $ — As of December 31, 2016, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: Total Level 1 Level 2 Level 3 Assets Available for sale customer trust funds assets $ 1,755.4 $ — $ 1,755.4 (a) $ — Total assets measured at fair value $ 1,755.4 $ — $ 1,755.4 $ — (a) Fair value is based on inputs that are observable for the asset or liability, other than quoted prices. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis During the year ended December 31, 2017, we did not re-measure any financial assets or liabilities at fair value on a nonrecurring basis. During the year ended December 31, 2016, we re-measured our trade name intangible asset to fair value on a nonrecurring basis. Please refer to Note 13, “Supplementary Data to Statement of Operations,” for further discussion. Fair value was based on the relief from royalty method, which is categorized in Level 3 of the fair value hierarchy. |
Customer Trust Funds
Customer Trust Funds | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Customer Trust Funds | 5. Customer Trust Funds Overview In connection with our U.S. and Canadian payroll and tax filing services, we collect funds for payment of payroll and taxes; temporarily hold such funds in trust until payment is due; remit the funds to the clients’ employees and appropriate taxing authority; file federal, state and local tax returns; and handle related regulatory correspondence and amendments. The assets held in trust are intended for the specific purpose of satisfying client fund obligations and, therefore, are not freely available for our general business use. Our customer trust funds are held and invested with the primary objectives being to ensure adequate liquidity to meet cash flow requirements and to protect the principal balance. In accordance with these objectives, we maintain approximately 46% of customer trust funds in liquidity portfolios with maturities ranging from one to 120 days, consisting of high-quality bank deposits, money market mutual funds, commercial paper, or collateralized short-term investments; and we maintain approximately 54% of customer trust funds in fixed income portfolios with maturities ranging from 120 days to 10 years, consisting of U.S. Treasury and agency securities, Canada government and provincial securities, as well as highly rated asset-backed, mortgage-backed, municipal, corporate and bank securities. To maintain sufficient liquidity in the trust to meet payment obligations, we also have financing arrangements and may pledge fixed income securities for short-term financing. Financial Statement Presentation Investment income from invested customer trust funds is a component of our compensation for providing services under agreements with our customers. Investment income from invested customer trust funds included in revenue was $49.6 and $34.2 for the nine months ended September 30, 2018, and 2017, respectively. Investment income includes interest income, realized gains and losses from sales of customer trust funds’ investments, and unrealized credit losses determined to be other-than-temporary. The amortized cost of customer trust funds as of September 30, 2018, and December 31, 2017, is the original cost of assets acquired. The amortized cost and fair values of investments of customer trust funds available for sale as of September 30, 2018, and December 31, 2017, are as follows: Investments of Customer Trust Funds at September 30, 2018 Amortized Gross Unrealized Fair Value Gain Loss Money market securities, investments carried at cost and other cash equivalents $ 1,697.9 $ — $ — $ 1,697.9 Available for sale investments: U.S. government and agency securities 548.6 — (19.1 ) 529.5 Canadian and provincial government securities 414.6 2.1 (2.7 ) 414.0 Corporate debt securities 513.1 0.2 (6.8 ) 506.5 Asset-backed securities 249.6 — (3.6 ) 246.0 Mortgage-backed securities 9.7 — (0.3 ) 9.4 Other securities 14.9 — (0.2 ) 14.7 Total available for sale investments 1,750.5 2.3 (32.7 ) 1,720.1 Invested customer trust funds 3,448.4 $ 2.3 $ (32.7 ) 3,418.0 Trust receivables 8.6 8.6 Total customer trust funds $ 3,457.0 $ 3,426.6 Investments of Customer Trust Funds at December 31, 2017 Amortized Cost Gross Unrealized Fair Value Gain Loss Money market securities, investments carried at cost and other cash equivalents $ 2,309.3 $ — $ — $ 2,309.3 Available for sale investments: U.S. government and agency securities 584.6 0.1 (7.1 ) 577.6 Canadian and provincial government securities 418.2 6.6 (1.5 ) 423.3 Corporate debt securities 472.3 0.8 (2.5 ) 470.6 Asset-backed securities 280.8 — (1.8 ) 279.0 Mortgage-backed securities 15.0 — (0.2 ) 14.8 Other securities 17.0 — (0.2 ) 16.8 Total available for sale investments 1,787.9 7.5 (13.3 ) 1,782.1 Invested customer trust funds 4,097.2 $ 7.5 $ (13.3 ) 4,091.4 Trust receivables 8.3 8.3 Total customer trust funds $ 4,105.5 $ 4,099.7 The following represents the gross unrealized losses and the related fair value of the investments of customer trust funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2018. Less than 12 months 12 months or more Total Unrealized Fair Unrealized Fair Unrealized Fair U.S. government and agency securities $ (8.0 ) $ 257.9 $ (11.1 ) $ 268.7 $ (19.1 ) $ 526.6 Canadian and provincial government securities (0.9 ) 86.9 (1.8 ) 100.8 (2.7 ) 187.7 Corporate debt securities (3.7 ) 271.1 (3.1 ) 145.9 (6.8 ) 417.0 Asset-backed securities (1.1 ) 97.4 (2.5 ) 129.8 (3.6 ) 227.2 Mortgage-backed securities (a ) 1.2 (0.3 ) 8.0 (0.3 ) 9.2 Other securities (0.1 ) 4.0 (0.1 ) 10.5 (0.2 ) 14.5 Total available for sale investments $ (13.8 ) $ 718.5 $ (18.9 ) $ 663.7 $ (32.7 ) $ 1,382.2 (a) These investments have been in an unrealized loss position; however, the amount of unrealized loss is less than $0.05. Management does not believe that any individual unrealized loss as of September 30, 2018, represents an other-than-temporary impairment. The unrealized losses are primarily attributable to changes in interest rates and not to credit deterioration. We currently do not intend to sell or expect to be required to sell the securities before the time required to recover the amortized cost. The amortized cost and fair value of investment securities available for sale at September 30, 2018, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or to prepay obligations with or without call or prepayment penalties. September 30, 2018 Cost Fair Value Due in one year or less $ 2,024.4 $ 2,023.9 Due in one to three years 565.6 556.5 Due in three to five years 565.5 557.6 Due after five years 292.9 280.0 Invested customer trust funds $ 3,448.4 $ 3,418.0 | 6. Customer Trust Funds Overview In connection with our U.S. and Canadian payroll and tax filing services, we collect funds for payment of payroll and taxes; temporarily hold such funds in trust until payment is due; remit the funds to the clients’ employees and appropriate taxing authority; file federal, state and local tax returns; and handle related regulatory correspondence and amendments. The assets held in trust are intended for the specific purpose of satisfying client fund obligations and therefore are not freely available for our general business use. Our customer trust funds are held and invested with the primary objectives being to ensure adequate liquidity to meet cash flow requirements and to protect the principal balance. Accordingly, we maintain on average approximately 46% of customer trust funds in liquidity portfolios with maturities ranging from one to 120 days, consisting of high-quality bank deposits, money market mutual funds, commercial paper, or collateralized short-term investments; and we maintain on average approximately 54% of customer trust funds in fixed income portfolios with maturities ranging from 120 days to 10 years, consisting of U.S. Treasury and agency securities, Canada government and provincial securities, as well as highly rated asset-backed, mortgage-backed, municipal, corporate and bank securities. To maintain sufficient liquidity in the trust to meet payment obligations, we also have financing arrangements and may pledge fixed income securities for short-term financing. Financial Statement Presentation Investment income from invested customer trust funds constitutes a component of our compensation for providing services under agreements with our customers. Investment income from invested customer trust funds included in revenue amounted to $46.5, $39.1, and $36.9 for the years ended December 31, 2017, 2016, and 2015, respectively. Investment income includes interest income, realized gains and losses from sales of customer trust funds’ investments, and unrealized credit losses determined to be other-than-temporary. The amortized cost of customer trust funds as of December 31, 2017 and 2016, is comprised of the original cost of assets acquired. The amortized cost and fair values of investments of customer trust funds available for sale at December 31, 2017 and 2016, were as follows: Investments of Customer Trust Funds at December 31, 2017 Amortized Gross Fair Gain Loss Money market securities, investments carried at cost and other cash equivalents $ 2,309.3 $ — $ — $ 2,309.3 Available for sale investments: U.S. government and agency securities 584.6 0.1 (7.1 ) 577.6 Canadian and provincial government securities 418.2 6.6 (1.5 ) 423.3 Corporate debt securities $ 472.3 $ 0.8 $ (2.5 ) $ 470.6 Asset-backed securities 280.8 — (1.8 ) 279.0 Mortgage-backed securities 15.0 — (0.2 ) 14.8 Other securities 17.0 — (0.2 ) 16.8 Total available for sale investments 1,787.9 7.5 (13.3 ) 1,782.1 Invested customer trust funds 4,097.2 $ 7.5 $ (13.3 ) 4,091.4 Trust receivables 8.3 8.3 Total customer trust funds $ 4,105.5 $ 4,099.7 Investments of Customer Trust Funds at December 31, 2016 Amortized Gross Fair Gain Loss Money market securities, investments carried at cost and other cash equivalents $ 1,941.9 $ — $ — $ 1,941.9 Available for sale investments: U.S. government and agency securities 607.7 0.9 (4.7 ) 603.9 Canadian and provincial government securities 380.0 12.9 (0.1 ) 392.8 Corporate debt securities 511.7 3.1 (1.2 ) 513.6 Asset-backed securities 192.2 0.4 (0.3 ) 192.3 Mortgage-backed securities 28.7 — (0.2 ) 28.5 Other securities 24.6 — (0.3 ) 24.3 Total available for sale investments 1,744.9 17.3 (6.8 ) 1,755.4 Invested customer trust funds 3,686.8 $ 17.3 $ (6.8 ) 3,697.3 Trust receivables 5.5 5.5 Total customer trust funds $ 3,692.3 $ 3,702.8 The following represents the gross unrealized losses and the related fair value of the investments of customer trust funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2017. Less than 12 months 12 months or more Total Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value U.S. government and agency securities $ (3.6 ) $ 436.7 $ (3.5 ) $ 113.5 $ (7.1 ) $ 550.2 Canadian and provincial government securities (1.5 ) 133.4 — — (1.5 ) 133.4 Corporate debt securities (2.0 ) 264.2 (0.5 ) 41.4 (2.5 ) 305.6 Asset-backed securities (1.7 ) 239.6 (0.1 ) 17.0 (1.8 ) 256.6 Mortgage-backed securities (0.1 ) 4.1 (0.2 ) 10.4 (0.3 ) 14.5 Other securities (a) 2.4 (0.1 ) 12.6 (0.1 ) 15.0 Total available for sale investments $ (8.9 ) $ 1,080.4 $ (4.4 ) $ 194.9 $ (13.3 ) $ 1,275.3 (a) These investments have been in an unrealized loss position; however, the amount of unrealized loss is less than $0.05. Management does not believe that any individual unrealized loss as of December 31, 2017, represents an other-than-temporary impairment. The unrealized losses are primarily attributable to changes in interest rates and not to credit deterioration. We currently do not intend to sell or expect to be required to sell the securities before the time required to recover the amortized cost. The amortized cost and fair value of investment securities available for sale at December 31, 2017, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or to prepay obligations with or without call or prepayment penalties. December 31, 2017 Cost Fair Value Due in one year or less $ 2,761.6 $ 2,762.0 Due in one to three years 518.3 648.8 Due in three to five years 528.8 473.9 Due after five years 288.5 206.7 Invested customer trust funds $ 4,097.2 $ 4,091.4 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Property, Plant, and Equipment | 6. Property, Plant, and Equipment Property, plant, and equipment consisted of the following: September 30, December 31, Land $ 7.5 $ 7.5 Software 218.5 197.4 Machinery and equipment 118.8 120.3 Buildings and improvements 39.8 36.3 Total property, plant, and equipment 384.6 361.5 Accumulated depreciation (284.0 ) (259.5 ) Property, plant, and equipment, net $ 100.6 $ 102.0 Depreciation expense of property, plant, and equipment totaled $28.4 and $25.8 for the nine months ended September 30, 2018, and 2017, respectively. | 8. Property, Plant, and Equipment Property, plant, and equipment consist of the following: December 31, 2017 2016 Land $ 7.5 $ 7.5 Software 197.4 162.1 Machinery and equipment 120.3 102.4 Buildings and improvements 36.3 36.0 Total property, plant and equipment 361.5 308.0 Accumulated depreciation (259.5 ) (223.5 ) Property, plant and equipment, net $ 102.0 $ 84.5 Depreciation expense of property, plant, and equipment totaled $35.3, $34.8, and $33.5 for the years ended December 31, 2017, 2016, and 2015, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill Goodwill and changes therein were as follows for the nine months ended September 30, 2018, and the year ended December 31, 2017: Balance at December 31, 2016 $ 1,933.1 Translation 27.9 Balance at December 31, 2017 1,961.0 Translation (11.2 ) Balance at September 30, 2018 $ 1,949.8 Intangible Assets Other intangible assets consisted of the following as of September 30, 2018: Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) Customer lists and relationships $ 208.6 $ (188.8 ) $ 19.8 5-15 Trade name 173.9 (2.0 ) 171.9 — Technology 154.4 (153.8 ) 0.6 2-7 Total other intangible assets $ 536.9 $ (344.6 ) $ 192.3 The LifeWorks Disposition was considered a triggering event for testing of the trade name intangible asset for impairment. There was no impairment indicated as of April 30, 2018. Please refer to Note 3, “Discontinued Operations,” for further discussion of the LifeWorks Disposition. Other intangible assets consisted of the following as of December 31, 2017: Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) Customer lists and relationships $ 210.1 $ (177.0 ) $ 33.1 5-15 Trade name 174.1 (2.1 ) 172.0 — Technology 155.6 (154.2 ) 1.4 2-7 Total other intangible assets $ 539.8 $ (333.3 ) $ 206.5 Amortization expense related to definite-lived intangible assets was $14.0 and $13.9 for the nine months ended September 30, 2018, and 2017, respectively. | 9. Goodwill and Intangible Assets Goodwill Goodwill and changes therein were as follows for the years ended December 31, 2017 and 2016: HCM Balance at December 31, 2015 $ 2,008.5 Formation of Joint Venture Company (See Note 4) (87.7 ) Translation 12.3 Balance at December 31, 2016 1,933.1 Translation 27.9 Balance at December 31, 2017 $ 1,961.0 Tax-deductible goodwill at December 31, 2017 $ 12.2 We perform an impairment assessment of our goodwill balances as of October 1 of each year. Goodwill impairment testing is performed at the level below the business segments (referred to as a reporting unit). After consideration of the LifeWorks Disposition, management has concluded that we have one reporting unit. Please refer to Note 3, “Discontinued Operations,” for further discussion of the LifeWorks Disposition. As of January 1, 2017, we elected early adoption of ASU No. 2017-04, “Intangibles-Goodwill and Other,” which simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. We performed the annual impairment quantitative test as of October 1, 2017, and concluded that the fair value exceeded the carrying amount by greater than 50%. Intangible Assets Other intangible assets consist of the following as of December 31, 2017: Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) Customer lists and relationships $ 210.1 $ (177.0 ) $ 33.1 5-15 Tradename 174.1 (2.1 ) 172.0 — Technology 155.6 (154.2 ) 1.4 2-7 Total other intangible assets $ 539.8 $ (333.3 ) $ 206.5 We perform an impairment assessment of our trade name intangible assets as of October 1 of each year. We performed the relief from royalty method impairment test as of October 1, 2017, and concluded that the fair value of our trade name intangible assets exceeded its respective carrying amount. Other intangible assets consist of the following as of December 31, 2016: Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) Customer lists and relationships $ 206.2 $ (156.6 ) $ 49.6 5-15 Tradename 173.6 (1.9 ) 171.7 — Technology 152.5 (150.1 ) 2.4 2-7 Total other intangible assets $ 532.3 $ (308.6 ) $ 223.7 The gross carrying amount of the trade name intangibles asset as of December 31, 2016, reflects an impairment of $10.2 recorded during the year ended December 31, 2016. The sale of the UK Business was considered a triggering event to test the trade name intangible asset for impairment. Please refer to Note 13, “Supplementary Data to Statement of Operations,” for further discussion. Amortization expense related to definite-lived intangible assets was $18.5, $18.4, and $18.7 for the years ended December 31, 2017, 2016, and 2015, respectively. We estimate the future amortization of other intangible assets held at December 31, 2017, will be: Years Ending December 31, Amount 2018 $ 18.6 2019 15.4 2020 0.1 2021 0.1 2022 — |
Debt
Debt | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Debt | 8. Debt Overview Our debt obligations consisted of the following as of the periods presented: September 30, December 31, Term Debt, interest rate of 5.5% and 5.1% as of September 30, 2018 and December 31, 2017, respectively $ 680.0 $ 657.3 Senior Notes, interest rate of 11.0% as of December 31, 2017 — 475.0 Revolving Credit Facility ($300.0 and $130.0 available capacity less amounts reserved for letters of credit, which were $2.7 and $2.9 as of September 30, 2018 and December 31, 2017, respectively) — — Total debt 680.0 1,132.3 Less unamortized discount on Term Debt 1.7 0.9 Less unamortized debt issuance costs on Senior Notes and Term Debt 6.5 11.6 Less current portion of long-term debt 6.8 — Long-term debt, less current portion $ 665.0 $ 1,119.8 Senior Secured Credit Facility Ceridian entered into a credit agreement dated as of November 14, 2014, pursuant to the terms of which Ceridian became borrower of (i) a $702.0 term loan debt facility (the “2014 Term Debt”) and (ii) a $130.0 revolving credit facility (the “2014 Revolving Credit Facility”) (the 2014 Term Debt and the 2014 Revolving Credit Facility are together referred to as the “2014 Senior Secured Credit Facility”). The 2014 Senior Secured Credit Facility was secured by all assets of Ceridian and was senior to Ceridian’s other debt. The 2014 Term Debt had a maturity date of September 2020, and the 2014 Revolving Credit Facility had a maturity date of September 2019. During the three months ended March 31, 2018, Ceridian made a final mandatory pre-payment On April 30, 2018, Ceridian completed the refinancing of the remaining debt under the 2014 Senior Secured Credit Facility by entering into a new credit agreement. Pursuant to the terms of the new credit agreement, Ceridian became borrower of (i) a $680.0 term loan debt facility (the “2018 Term Debt”) and (ii) a $300.0 revolving credit facility (the “2018 Revolving Credit Facility”) (the 2018 Term Debt and the 2018 Revolving Credit Facility are together referred to as the “2018 Senior Secured Credit Facility”). The 2018 Senior Secured Credit Facility is secured by all assets of Ceridian. The 2018 Term Debt has a maturity date of April 30, 2025, and the 2018 Revolving Credit Facility has a maturity date of April 30, 2023. The 2018 Term Debt is currently subject to an interest rate of LIBOR plus 3.25%. In the event our corporate rating from Moody’s Investors Service, Inc. is B2 or better, the interest rate is reduced to LIBOR plus 3.00%, so long as the rating is maintained. In connection with the refinancing of the 2014 Senior Secured Credit Facility, we capitalized $3.6 of financing costs and recognized a loss on debt extinguishment of $7.1 within interest expense, net on our condensed consolidated statement of operations during the nine months ended September 30, 2018. Senior Notes Using the net proceeds received from the IPO and concurrent private placement, we satisfied and discharged the indenture governing our Senior Notes on April 30, 2018, and the Senior Notes were redeemed on May 30, 2018. In connection with the redemption of the Senior Notes, we recognized a loss on debt extinguishment of $18.6 within interest expense, net on our condensed consolidated statement of operations during the nine months ended September 30, 2018. Future Payments and Maturities of Debt The future principal payments and maturities of our debt are as follows: Years Ending December 31, Amount 2018 $ 1.7 2019 6.8 2020 6.8 2021 6.8 2022 6.8 Thereafter 651.1 $ 680.0 Fair Value of Debt Our debt does not trade in active markets. Based on the borrowing rates currently available to us for bank loans with similar terms and average maturities and the limited trades of our debt, the fair value of our debt was estimated to be $680.9 and $1,154.1 as of September 30, 2018 and December 31, 2017, respectively. | 10. Debt Overview Set forth below is a description of certain debt facilities for which Ceridian was obligated during the periods covered by these consolidated financial statements. Generally, Ceridian’s debt obligations can be described as follows: (i) through the period which ended with the Separation Transaction on October 1, 2013, Ceridian (together with Comdata) was jointly and severally liable for the Parent’s various debt facilities; (ii) in connection with the Separation Transaction, each of Ceridian and Comdata assumed a portion of such Parent debt facilities; and (iii) thereafter, in connection with the merger of Comdata on November 14, 2014, Ceridian became the sole obligor of its own debt and was released from any liability relating to the Parent indebtedness and from any liability relating to the Comdata indebtedness. • The Parent entered into a Credit Agreement, originally dated November 9, 2007, as amended on multiple occasions, pursuant to which a revolving credit facility (“Parent Revolving Credit Facility”) and term debt (“Parent Term Debt”) (together referred to as the “Parent Senior Secured Credit Facility”) were made available. Such Parent Senior Secured Credit Facility was secured by all assets of the Parent and was senior to certain other debt of the Parent. During the third quarter of 2012, Parent (i) amended the terms of the original 2007 credit agreement to reduce the principal amount of the Parent Senior Secured Credit Facility and (ii) issued its Senior Secured Notes due 2019 (the “Parent Senior Secured Notes”) (together, the “Amend and Extend Transaction”). The Parent Senior Secured Credit Facility and the Parent Senior Secured Notes were both secured by the same collateral and shared the same priority among the Parent’s various debt obligations. • As part of the Separation Transaction on October 1, 2013, (i) Comdata assumed responsibility for the Parent Senior Secured Notes and (ii) Ceridian and Comdata each assumed repayment responsibility for a portion of the Parent Senior Secured Credit Facility. On August 6, 2014, the Parent Senior Secured Credit Facility was then refinanced and provided for three facilities: 1. $673.0 Term Loan B-1 Facility: this tranche named Comdata and Parent as co-borrowers, with Ceridian and other entities as co-guarantors; 2. $702.0 Term Loan B-2 Facility (the “Ceridian Term Loan B-2 Debt”): this tranche named Ceridian and Parent as co-borrowers, with Comdata and other entities as co-guarantors and provided that, upon satisfaction of certain credit conditions, Ceridian could become the sole borrower and the Parent, Comdata and the other Comdata affiliates would be released from their obligations; and 3. $130.0 Revolving Credit Facility: this facility provided Parent and Ceridian a revolving credit facility and provided that, upon satisfaction of certain credit conditions, Ceridian could become sole borrower. The credit conditions allowing for transition to a stand-alone Ceridian credit facility were measured, in part, upon EBITDA, with certain adjustments as set forth in the credit documents (“Credit Facility EBITDA”). Ceridian was required to meet (i) a secured debt to Credit Facility EBITDA ratio less than or equal to 4.0 to 1.0 and (ii) a total leverage to Credit Facility EBITDA ratio less than or equal to 6.25 to 1.0. • The Parent issued its Senior Notes due 2015 (the “Parent Senior Notes”) pursuant to an Indenture dated November 9, 2007 as amended on multiple occasions. During the first quarter of 2013, Parent issued its Senior Exchangeable Notes due 2021 (the “Parent Senior Exchangeable Notes”) which were senior unsecured obligations of the Parent, exchangeable at any time at the option of Parent for notes to be issued by Ceridian, although the Parent and Comdata remained obligated as guarantors. The proceeds from the issuance of the Parent Senior Exchangeable Notes were used to prepay a portion of the Parent Senior Notes. As part of the Separation Transaction on October 1, 2013, (i) Ceridian issued its Senior Notes due 2021 (the “Ceridian Senior Notes”) in exchange for the Parent Senior Exchangeable Notes, with the same credit support as was applicable to the Parent Senior Exchangeable Notes (including guarantees from the Parent and Comdata) and (ii) the portion of the Parent Senior Notes that then remained outstanding were assumed by Comdata. The Ceridian Senior Notes provided that, upon satisfaction of certain credit conditions, Ceridian could become the sole obligor and the Parent, Comdata and the other Comdata affiliates would be released from their obligations. These credit conditions were essentially the same as were applicable to the release described above relating to the Ceridian Term Loan B-2 Debt. In connection with the merger of Comdata, the Parent’s payment systems business, on November 14, 2014, Ceridian met the credit conditions noted above, with the result that (i) Parent and Comdata were released of all guarantees and obligations relating to Ceridian’s debt and (ii) Parent and Ceridian were released of all guarantees and obligations related to the Parent’s indebtedness. The debt for which Ceridian became solely obligated on November 14, 2014, and for which it remains obligated through December 31, 2017, consists of the following: 1. Ceridian entered into a new Credit Agreement dated as of November 14, 2014 pursuant to the terms of which Ceridian became sole borrower of (i) a term loan debt facility (the “Ceridian Term Debt”) to replace the debt previously known as the Ceridian Term Loan B-2 Debt and (ii) a revolving credit facility (the “Ceridian Revolving Credit Facility”) (the Ceridian Term Debt and the Ceridian Revolving Credit Facility are together referred to as the “Ceridian Senior Secured Credit Facility”), which Ceridian Senior Secured Credit Facility is secured by all assets of Ceridian and is senior to Ceridian’s other debt. 2. Ceridian became sole obligor of the Ceridian Senior Notes. Our debt obligations consist of the following: December 31, 2017 2016 Ceridian Term Debt, interest rate of 5.1% and 4.5% as of December 31, 2017 and 2016, respectively $ 657.3 $ 683.2 Ceridian Senior Notes, interest rate of 11.0% as of December 31, 2017 and 2016 475.0 475.0 Ceridian Revolving Credit Facility ($130.0 available capacity less amounts reserved for letters of credit, which were $8.4 and $7.7 as of December 31, 2017, and 2016, respectively) — — Total debt 1,132.3 1,158.2 Less unamortized discount on Ceridian Term Debt 0.9 1.1 Less unamortized debt issuance costs on Ceridian Senior Notes and Ceridian Term Debt 11.6 15.0 Less current portion of long-term debt — 2.3 Long-term debt, less current portion $ 1,119.8 $ 1,139.8 Ceridian Senior Secured Credit Facility Principal Amounts and Maturity Dates On November 14, 2014, the Ceridian Senior Secured Credit Facility was put into place, consisting of the Ceridian Term Debt in the principal amount of $702.0 and the Ceridian Revolving Credit Facility providing up to $130.0. As of December 31, 2017, the Ceridian Term Debt has a maturity date of September 2020, and the Ceridian Revolving Credit Facility has a maturity date of September 2019. The Ceridian Term Debt requires quarterly principal payments of 0.25% of the original principal amount. Ceridian made mandatory pre-payments towards the principal balance of the Ceridian Term Debt with the proceeds received from the sale of the UK Business during the three months ended June 30, 2016, and September 30, 2017, of $10.0 and $25.9, respectively. These pre-payments were applied against the scheduled quarterly principal payments; and therefore, there are no further scheduled principal payments with respect to the Ceridian Term Debt. Interest The effective interest rate on the Ceridian Term Debt at December 31, 2017 and 2016, was 5.1% and 4.5%, respectively. The Ceridian Term Debt bears an interest rate of LIBOR plus 3.5%, subject to a 1.0% LIBOR floor. Financing Costs and Issuance Discounts The Ceridian Term Debt had associated unamortized deferred financing costs of $5.4 and $7.3 at December 31, 2017 and 2016, respectively, and are being amortized at the effective interest rate of 4.8%. Collateral and Guarantees The Ceridian Senior Secured Credit Facility names Ceridian as the sole borrower and is unconditionally guaranteed by Ceridian’s domestic, wholly-owned financially material restricted subsidiaries, subject to certain customary exceptions. The Ceridian Senior Secured Credit Facility is secured by a perfected first priority security interest, subject to certain exceptions (including customer trust funds), in substantially all of Ceridian’s and the subsidiary guarantors’ tangible and intangible assets. The security interest includes a pledge of the capital stock of certain of Ceridian’s direct and indirect material restricted subsidiaries. Representations, Warranties and Covenants The documents governing the Ceridian Senior Secured Credit Facility contain certain customary representations and warranties. In addition, those documents contain customary covenants restricting Ceridian’s ability and certain of its subsidiaries’ ability to, among other things: incur additional indebtedness, issue disqualified stock and preferred stock; create liens; declare dividends; redeem capital stock; make investments; engage in a materially different line of business; engage in certain mergers, consolidations, acquisitions, asset sales or other fundamental changes; engage in certain transactions with affiliates; enter into certain restrictive agreements; make prepayments on any subordinated indebtedness; modify junior financing documentation; and make changes to our fiscal year. The Ceridian Senior Secured Credit Facility documents contain a requirement that Ceridian maintain a ratio of adjusted first lien debt to Credit Facility EBITDA below specified levels on a quarterly basis; however, such requirement is applicable only if more than 35% of the Ceridian Revolving Credit Facility is drawn. As of December 31, 2017, no portion of the Ceridian Revolving Credit Facility was drawn. Events of Default Events of default under the Senior Secured Credit Facility documents include, but are not limited to: failure to pay interest, principal and fees or other amounts when due; material breach of any representation or warranty; covenant defaults; cross defaults to other material indebtedness; events of bankruptcy, invalidity of security interests; a change of control, material judgments for payment of money; involuntary acceleration of any debt; and other customary events of default. There were no events of default as of December 31, 2017. Ceridian Senior Notes General Description On October 1, 2013, Ceridian issued the Ceridian Senior Notes due 2021 in the principal amount of $475.0, in exchange for the Parent Senior Exchangeable Notes. As described above, in connection with the merger of Comdata on November 14, 2014, Ceridian met the credit conditions to allow the Ceridian Senior Notes to transition to stand-alone obligations of Ceridian. The Ceridian Senior Notes are unsecured. The Ceridian Senior Notes may be redeemed, in whole or in part, at redemption prices decreasing from 108.25% of the principal amount thereof to par on March 15, 2019 (and thereafter), plus accrued and unpaid interest. Interest The interest rate on the Ceridian Senior Notes was fixed at 11.0% as of December 31, 2017 and 2016. Financing Costs and Issuance Discounts As a result of the issuance of the Parent Senior Exchangeable Notes in the first half of 2013 which partially redeemed the Parent Senior Notes, Ceridian recorded a one-time charge to interest expense which represented the call premium, related unamortized discount and deferred financing fees of the partially redeemed Parent Senior Notes. The Parent Senior Exchangeable Notes had unamortized deferred financing costs of $6.2 and $7.7 at December 31, 2017 and 2016, respectively. Deferred financing costs are being amortized at the effective interest rate of 11.45% and will be amortized over the term of the Ceridian Senior Notes since the transaction was deemed to be an exchange of debt. Other Information Relating to Indebtedness Future Payments and Maturities of Debt The future principal payments and maturities of our indebtedness are as follows: Years Ending December 31, Amount 2018 $ — 2019 — 2020 657.3 2021 475.0 2022 — Thereafter — $ 1,132.3 Ceridian may be required to make additional payments on the Ceridian Term Debt from various sources, including proceeds of certain indebtedness which may be incurred from time to time, certain asset sales and a certain percentage of cash flow. No mandatory redemption of the Ceridian Senior Notes is required prior to maturity, except in the event of a change in control. There is an excess cash flow calculation associated with the Ceridian Term Debt, and based on this calculation, we are not required to make a prepayment on the Ceridian Term Debt in the first quarter of 2018. Fair Value of Debt Our debt does not trade in active markets. Based on the borrowing rates currently available to us for bank loans with similar terms and average maturities and the limited trades of our debt, the fair value of our indebtedness was estimated to be $1,154.1 and $1,166.9 as of December 31, 2017 and 2016, respectively. Priority of Debt In the event of liquidation, the Ceridian Senior Secured Credit Facility has priority over the Ceridian Senior Notes with respect to the proceeds of collateral. Other Debt Financing Ceridian Canada had available at December 31, 2017 and 2016, a committed bank credit facility that provided up to CDN $7.0 and $7.0, respectively, for issuance of letters of credit, and it is a discretionary line at the option of the bank. The amounts of letters of credit outstanding under this facility were CDN $7.0 (USD $5.6) and CDN $7.0 (USD $5.2) at December 31, 2017 and 2016, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Employee Benefit Plans | 9. Employee Benefit Plans The components of net periodic cost for our defined benefit pension plan and for our postretirement benefit plan are included in the following tables: Nine Months Ended September 30, Net Periodic Pension Cost 2018 2017 Interest cost $ 12.3 $ 12.9 Actuarial loss amortization 10.8 9.6 Less: Expected return on plan assets (19.5 ) (19.8 ) Net periodic pension cost $ 3.6 $ 2.7 Nine Months Ended September 30, Net Periodic Postretirement Benefit 2018 2017 Service benefit $ (0.3 ) $ (0.3 ) Interest cost 0.3 0.3 Actuarial gain amortization (1.8 ) (1.8 ) Net periodic postretirement benefit gain $ (1.8 ) $ (1.8 ) | 11. Employee Benefit Plans Ceridian maintains numerous benefit plans for current and former employees. As of December 31, 2017, our current active benefit plans include defined contributions plans for substantially all employees. All other defined benefit plans have been frozen. Defined Contribution Plans Ceridian maintains defined contribution plans that provide retirement benefits to substantially all of our employees. Contributions are based upon the contractual obligations of each respective plan. We recognized expense of $7.5, $7.0, and $7.1 for the years ended December 31, 2017, 2016, and 2015, respectively, with regard to employer contributions to these plans. Defined Benefit Plans Ceridian maintains defined benefit pension plans covering certain of our current and former U.S. employees (the U.S. defined benefit plan and nonqualified defined benefit plan, collectively referred to as our “defined benefit plans”), as well as other postretirement benefit plans for certain U.S. retired employees that include heath care and life insurance benefits. Pension Benefits The largest defined benefit pension plan (the “U.S. defined benefit plan”) is a defined benefit plan for certain current and former U.S. employees that closed to new participants on January 2, 1995. In 2007, the U.S. defined benefit plan was amended (1) to exclude from further participation any participant or former participant who was not employed by the Parent or another participating employer on January 1, 2008, (2) to discontinue participant contributions, and (3) to freeze the accrual of additional benefits as of December 31, 2007. The measurement date for pension benefit plans is December 31. Assets of the U.S. defined benefit plan are held in an irrevocable trust and do not include any Ceridian securities. Benefits under this plan are generally calculated on final or career average earnings and years of participation in the plan. Most participating employees were required to permit salary reduction contributions to the plan on their behalf by the employer as a condition of active participation. Retirees and other former employees are inactive participants in this plan and constitute approximately 98% of the plan participants. This plan is funded in accordance with funding requirements under the Employee Retirement Income Security Act of 1974, based on determinations of a third-party consulting actuary. Investment of the U.S. defined benefit plan assets in Ceridian securities is prohibited by the investment policy. We made a contribution amounting to $21.1 in 2017 to the U.S. defined benefit plan. We expect to make contributions to the U.S. benefit plan amounting to $18.5 during 2018. As a result of the Comdata merger on November 14, 2014, Comdata and its subsidiaries are no longer included in the group of companies that are obligated under the U.S. defined benefit plan. Ceridian also sponsors a nonqualified supplemental defined benefit plan (the “nonqualified defined benefit plan”), which is unfunded and provides benefits to selected U.S. employees in addition to the U.S. defined benefit plan. We made contributions to the nonqualified defined benefit plan amounting to $1.9 in 2017 and expect to make contributions of $1.8 during 2018. We account for our defined benefit plans using actuarial models . One of the principal components of the net periodic pension calculation is the expected long-term rate of return on plan assets. The required use of expected long-term rate of return on plan assets may result in recognized pension income that is greater or less than the actual returns of those plan assets in any given year. Over time, however, the expected long-term returns are designed to approximate the actual long-term returns that contribute to the settlement of the liability. Differences between actual and expected returns are recognized in the net periodic pension calculation over three years. We use long-term historical actual return information, the mix of investments that comprise plan assets, and future estimates of long-term investment returns by reference to external sources to develop our expected return on plan assets. The discount rate assumption is used to determine the benefit obligation and the interest portion of the net periodic pension cost (credit) for the following year. We utilize a full yield curve approach for our discount rate assumption by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. As of December 31, 2017, a 25 basis point decrease in the discount rate would result in a $0.2 decrease to expense for all pension plans. At December 31, 2016, we updated our mortality assumptions utilizing an improvement scale issued by the Society of Actuaries in October 2016, which resulted in a $12.0 decrease in the projected benefit obligation. At December 31, 2017, we updated our mortality assumptions utilizing an improvement scale issued by the Society of Actuaries in October 2017, which resulted in a $6.0 reduction in the projected benefit obligation. The funded status of defined benefit plans represents the difference between the projected benefit obligation and the plan assets at fair value. The projected benefit obligation of defined benefit plans exceeded the fair value of plan assets by $154.4 and $189.5 at December 31, 2017 and 2016, respectively. We are required to record the unfunded status as a liability in our consolidated balance sheets and recognize the change in the funded status in comprehensive income, net of deferred income taxes. The projected future payments to participants from defined benefit plans are included in the table below. Years Ending December 31, Amount 2018 $ 46.8 2019 46.3 2020 45.4 2021 44.4 2022 43.1 Next five years $ 193.5 The accompanying tables reflect the combined funded status and net periodic pension cost and combined supporting assumptions for the defined benefit elements of our defined benefit plans. Year Ended December 31, 2017 2016 Funded Status of Defined Benefit Retirement Plans at Measurement Date Change in Projected Benefit Obligation During the Year: Projected benefit obligation at beginning of year $ 605.9 $ 636.0 Service cost — — Interest cost 17.2 18.2 Actuarial loss 20.3 4.3 Benefits paid and plan expenses (50.4 ) (52.6 ) Projected benefit obligation at end of year $ 593.0 $ 605.9 Change in Fair Value of Plan Assets During the Year: Plan assets at fair value at beginning of year 416.4 410.1 Actual return on plan assets 49.6 20.5 Employer contributions 23.0 38.4 Benefits paid and plan expenses (50.4 ) (52.6 ) Plan assets at fair value at end of year 438.6 416.4 Funded status of plans $ (154.4 ) $ (189.5 ) December 31, 2017 2016 Amounts recognized in Consolidated Balance Sheets Current liability $ 20.3 $ 27.1 Noncurrent liability 134.1 162.4 Amounts recognized in Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax of $91.5 and $91.5, respectively $ 151.4 $ 167.2 The other comprehensive (income) loss related to pension benefit plans is as follows: Year Ended December 31, 2017 2016 2015 Net actuarial (gain) loss $ (3.0 ) $ 9.5 $ 2.2 Amortization of net actuarial loss (12.8 ) (12.5 ) (13.3 ) Tax expense — 0.1 — Other comprehensive income, net of tax $ (15.8 ) $ (2.9 ) $ (11.1 ) Year Ended December 31, 2017 2016 2015 Assumption Used in Calculations Discount rate used to determine net benefit cost 3.63 % 3.76 % 3.50 % Expected return on plan assets 6.30 % 6.30 % 6.50 % Discount rate used to determine benefit obligations 3.25 % 3.63 % 3.76 % Year Ended December 31, 2017 2016 2015 Net Periodic Pension Cost Interest cost $ 17.2 $ 18.2 $ 23.3 Expected return on plan assets (26.3 ) (25.7 ) (26.6 ) Actuarial loss amortization 12.8 12.5 13.3 Net periodic pension cost $ 3.7 $ 5.0 $ 10.0 The accumulated benefit obligation of defined benefit plans was $593.0 and $605.9 as of December 31, 2017 and 2016, respectively. The amount in accumulated other comprehensive loss that is expected to be recognized as a component of net periodic pension cost during 2018 is a net actuarial loss of $14.2. Our overall investment strategy for the U.S. defined benefit plan is to achieve a mix of approximately 75% of investments for long term growth, 23% for liability hedging purposes and 2% for near-term benefit payments. Target asset allocations are based upon actuarial and capital market studies performed by experienced outside consultants. The target allocations for the growth assets are 38% fixed income, 27% domestic equities, 25% international equities and 10% hedge funds. Specifically, the target allocation is managed through investments in fixed income securities, equity funds, collective investment funds, partnerships and other investment types. The underlying domestic equity securities include exposure to large/mid-cap companies and small-cap companies. Fixed income securities include corporate debt, mortgage-backed securities, U.S. Treasury and U.S. agency debt, emerging market debt and high yield debt securities. The alternative investment strategy is allocated to investments in hedge funds. The liability hedging portfolio fair value is intended to move in a direction that partially offsets the increase or decrease in the liabilities resulting from changes in interest rates. To achieve this objective, the portfolio will invest in U.S. Treasury strips and various interest rate derivatives contracts. We hire outside managers to manage all assets of the U.S. defined benefit plan. In determining the fair values of the defined benefit plan’s assets, we have elected to evaluate the fair value of certain investments using net asset value per share. These investments do not have any significant unfunded commitments, conditions or restrictions on redemption, or any other significant restriction on their sale. The fair values of the defined benefit plan’s assets at December 31, 2017, by asset category are as follows: Total Level 1 Level 2 Level 3 Investments, at fair value: Short-term investments $ 36.8 $ 36.8 $ — $ — Derivatives (a) 14.8 — 14.8 Government securities 88.1 — 88.1 — Corporate debt securities 18.3 — 18.3 — Collective investment funds: — Domestic equity (b) 144.4 — 144.4 — Foreign equity (b) 57.5 — 57.5 — Foreign bond (c) 41.8 — 41.8 — Partnerships (d) 35.3 — 35.3 — Hedge fund of funds (e) 1.6 — 1.6 — Total investments, at fair value $ 438.6 $ 36.8 $ 401.8 $ — The fair values of our defined benefit plan’s assets at December 31, 2016, by asset category are as follows: Total Level 1 Level 2 Level 3 Investments, at fair value: Short-term investments $ 34.0 $ 34.0 $ — $ — Derivatives (a) 19.0 19.0 Government securities 88.9 — 88.9 — Corporate debt securities 25.5 — 25.5 — Collective investment funds: Domestic equity (b) 66.7 — 66.7 — Foreign equity (b) 86.0 — 86.0 — Foreign bond (c) 33.3 — 33.3 — Partnerships (d) 32.7 — 32.7 — Hedge fund of funds (e) 30.3 — 30.3 — Total investments, at fair value $ 416.4 $ 34.0 $ 382.4 $ — (a) Funds in this category invest in interest rate swaps to reduce exposure to long-term interest rate risk and to achieve overall investment portfolio objectives. (b) Funds in this category invest in a diversified portfolio of domestic and/or foreign stocks to achieve a long-term rate of return. (c) Funds in this category invest in various types of domestic and/or foreign debt securities to achieve a long-term rate of return while preserving capital. (d) Funds within this category invest in a bond fund partnership which holds various types of domestic debt securities to achieve a long-term rate of return while preserving capital. (e) Funds within this category invest in various underlying hedge funds and are designed to provide superior risk adjusted returns as well as portfolio diversification relative to traditional asset classes. Postretirement Benefits Ceridian provides health care and life insurance benefits for eligible retired employees, including individuals who retired from operations we subsequently sold or discontinued. Ceridian sponsors several health care plans in the United States for both pre- and post-age 65 retirees. The contributions to these plans differ for various groups of retirees and future retirees. Most retirees outside of the United States are covered by governmental health care programs, and our cost is not significant. The measurement date for postretirement benefit plans is December 31. The discount rate assumption is used to determine the benefit obligation and the interest portion of the net periodic postretirement cost (credit) for the following year. Historically, we employed a process that analyzed three independently prepared yield curves, taking into consideration the timing of the estimated postretirement payments in arriving at a discount rate. During 2015, we changed our method for determining the postretirement plan accounting discount rate assumption. We utilize a full yield curve approach for our discount rate assumption by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. As of December 31, 2017, a 25 basis point decrease in the discount rate would result in an immaterial impact on expense for the postretirement plan. The accompanying tables present the amounts and changes in the aggregate benefit obligation and the components of net periodic postretirement benefit cost for U.S. plans. We fund these costs as they become due. Year Ended December 31, 2017 2016 Funded Status of Postretirement Change in Benefit Obligation: At beginning of year $ 21.0 $ 23.2 Interest cost 0.5 0.6 Participant contributions 1.1 1.2 Actuarial gain (0.7 ) (1.4 ) Benefits paid (2.3 ) (2.6 ) At end of year $ 19.6 $ 21.0 Change in Plan Assets: At beginning of year $ — $ — Company contributions 1.2 1.5 Participant contributions 1.1 1.1 Benefits paid (2.3 ) (2.6 ) At end of year — — Funded Status $ (19.6 ) $ (21.0 ) December 31, 2017 2016 Amounts recognized in Consolidated Balance Sheets Current liability $ 2.4 $ 2.6 Noncurrent liability 17.2 18.4 Amounts recognized in Accumulated Other Comprehensive Loss Accumulated other comprehensive income, net of tax of $(9.9) and $(9.9), respectively $ (8.9 ) $ (10.9 ) The other comprehensive (income) loss related to postretirement benefits is as follows: Year Ended December 31, 2017 2016 2015 Net actuarial gain $ (0.7 ) $ (1.4 ) $ (4.5 ) Amortization of net actuarial gain 2.7 2.6 2.0 Tax expense — — — Other comprehensive loss (income), net of tax $ 2.0 $ 1.2 $ (2.5 ) Year Ended December 31, 2017 2016 2015 Net Periodic Postretirement Benefit Service cost $ — $ — $ — Interest cost 0.5 0.6 0.9 Actuarial gain amortization (2.4 ) (2.3 ) (1.7 ) Prior service credit amortization (0.3 ) (0.3 ) (0.3 ) Net periodic postretirement benefit gain $ (2.2 ) $ (2.0 ) $ (1.1 ) The amount in accumulated other comprehensive loss that is expected to be recognized as a component of net periodic postretirement benefit cost during 2018 is a $2.5 gain, comprised of $2.2 of actuarial gain and $0.3 of prior service credit. The assumed health care cost trend rate represents the rate at which health care costs are assumed to increase. The assumed health care cost trend rate used in measuring the benefit obligation in 2017 is 6.75% for pre-age 65 retirees and 7.25% for post-age 65 retirees. These rates are assumed to decrease gradually to the ultimate health care cost trend rate of 4.5% in 2028 for both groups. A one percent increase in this rate would increase the benefit obligation at December 31, 2017, by $0.9 million and would have an immaterial impact on the interest cost for 2017. A one percent decrease in this rate would decrease the benefit obligation at December 31, 2017, by $0.8 million and would have an immaterial impact on the interest cost for 2017. Year Ended December 31, 2017 2016 2015 Assumption Used in Calculations Weighted average discount rate used to determine net periodic postretirement cost (credit) 3.26 % 3.38 % 3.25 % Weighted average discount rate used to determine benefit obligation at measurement date 3.01 % 3.26 % 3.38 % The projected future postretirement benefit payments and future receipts from the federal subsidy for each of the next five years and the five-year period following are included in the table below. Years Ending December 31, Payments Receipts 2018 $ 2.5 $ 0.1 2019 2.2 0.1 2020 2.1 0.1 2021 2.0 0.1 2022 1.9 0.1 Next five years $ 7.3 $ 0.3 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-Based Compensation | 10. Share-Based Compensation Prior to November 1, 2013, Ceridian employees participated in a share-based compensation plan of the former ultimate parent of Ceridian. The 2007 Stock Incentive Plan (“2007 SIP”) authorized the issuance of up to 10,540,540 shares of common stock of Parent to eligible participants through stock options and stock awards. Eligible participants in the 2007 SIP included the Parent’s directors, employees and consultants. Effective November 1, 2013, although most participants who held stock options under the 2007 SIP converted their options to a newly created option plan, the 2013 Ceridian HCM Holding Inc. Stock Incentive Plan, as amended (“2013 SIP”), a small number of participants maintained their stock options in the 2007 SIP. Concurrent with the IPO and legal reorganization, all outstanding stock options under the 2007 SIP were converted into options to purchase common stock of Ceridian. As of September 30, 2018, there were 5,000 stock options outstanding under the 2007 SIP. The 2013 SIP authorized the issuance of up to 12,500,000 shares of common stock of Ceridian to eligible participants through stock options and other stock awards, which was increased to 15,000,000 on March 20, 2017, by the Board of Directors. Eligible participants in the 2013 SIP include Ceridian’s directors, employees, and consultants. As part of the 2013 SIP, the Board of Directors approved a stock appreciation rights program that authorized the issuance of up to 600,000 stock appreciation rights. The performance criteria for all stock appreciation rights was met on April 30, 2018, resulting in the vesting of all outstanding stock appreciation rights. We recognized $1.5 of share-based compensation expense related to the vesting of these stock appreciation rights during the nine months ended September 30, 2018. As of September 30, 2018, there were no remaining outstanding stock appreciation rights. Stock options awarded under the 2013 SIP vest either annually on a pro rata basis over a four- or five-year period or on a specific date if certain performance criteria are satisfied and certain equity values are attained. In addition, upon termination of service, all vested options must be exercised generally within 90 days after termination, or these awards will be forfeited. The stock option awards have a 10-year On April 24, 2018, in connection with the IPO, the Board of Directors approved the Ceridian HCM Holding Inc. 2018 Equity Incentive Plan (“2018 EIP”), which authorizes the issuance of up to 13,500,000 shares of common stock to eligible participants through equity awards. Equity awards under the 2018 EIP vest annually on a pro rata basis, generally over a four-year period. In addition, upon termination of service, all vested awards must be exercised within 90 days after termination, or these awards will be forfeited. The equity awards have a 10-year Total share-based compensation expense was $19.5 and $12.8 for the nine months ended September 30, 2018, and 2017. Performance-Based Stock Options Performance-based option activity under the 2007 SIP and the 2013 SIP for the period was as follows: Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Performance-based options outstanding at December 31, 2017 1,038,147 $ 13.46 3.5 $ — Granted — — — — Exercised (633,606 ) (13.46 ) — — Forfeited or expired (8,358 ) (13.46 ) — — Performance-based options outstanding at September 30, 2018 396,183 $ 13.50 3.4 $ 11.3 Performance-based options exercisable at September 30, 2018 396,183 $ 13.50 3.4 $ 11.3 The performance criteria for all outstanding performance-based stock options was met on June 7, 2018, resulting in the vesting of all outstanding performance-based stock options on this date. We recognized $4.8 of share-based compensation expense related to the vesting of these performance-based stock options during the nine months ended September 30, 2018. As of September 30, 2018, there was no share-based compensation expense related to unvested performance-based stock options not yet recognized. Term-Based Stock Options Term-based option activity, including stock options under the 2007 SIP, the 2013 SIP and the 2018 EIP, for the period was as follows: Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Term-based options outstanding at December 31, 2017 10,994,181 $ 16.52 6.9 $ 48.8 Granted 5,140,787 22.84 — — Exercised (1,127,360 ) (13.73 ) — — Forfeited or expired (166,747 ) (17.09 ) — — Term-based options outstanding at September 30, 2018 14,840,861 $ 18.66 7.6 $ 346.8 Term-based options exercisable at September 30, 2018 6,868,950 $ 16.70 5.8 $ 174.0 As of September 30, 2018, there was $49.7 of share-based compensation expense related to unvested term based awards not yet recognized, which is expected to be recognized over a weighted average period of 1.9 years. Restricted Stock Units Restricted stock units (“RSUs”) activity, including RSUs under the 2013 SIP and the 2018 EIP, for the period was as follows: Shares RSUs outstanding at December 31, 2017 605,990 Granted 159,323 Shares issued upon vesting of RSUs (105,990 ) Forfeited or canceled — RSUs outstanding at September 30, 2018 659,323 RSUs releasable at September 30, 2018 125,000 During the nine months ended September 30, 2018, 159,323 RSUs were granted and 230,990 RSUs vested. Of the vested RSUs 105,990 shares of common stock were issued, and 125,000 RSUs remained vested and releasable. As of September 30, 2018, there were 534,323 unvested RSUs outstanding. RSUs generally vest annually over a three- or four-year period. There were 29,800 RSUs that vested upon completion of the IPO. As of September 30, 2018, there was $10.6 of share-based compensation expense related to unvested RSUs not yet recognized, which is expected to be recognized over a weighted average period of 2.8 years. | 12. Share-Based Compensation Prior to November 1, 2013, Ceridian employees participated in a share-based compensation plan of the ultimate parent of Ceridian. The 2007 Stock Incentive Plan (“2007 SIP”) authorized the issuance of up to 10,540,540 shares of common stock of Parent to eligible participants through stock options and stock awards. Eligible participants in the 2007 SIP included the Parent’s directors, employees and consultants. Effective November 1, 2013, most participants who held stock options under the 2007 SIP converted their options to a newly created option plan, the 2013 Ceridian HCM Holding Inc. Stock Incentive Plan (“2013 HCM SIP”). A small number of participants maintained their stock options in the 2007 SIP. As of December 31, 2017, there were 10,000 stock options outstanding under the 2007 SIP. The 2013 HCM SIP authorized the issuance of up to 12,500,000 shares of common stock of Ceridian to eligible participants through stock options and other stock awards. On March 20, 2017, the Board of Directors approved an increase to the number of authorized shares under the 2013 HCM SIP to 15,000,000. Eligible participants in the 2013 HCM SIP include Ceridian’s directors, employees, and consultants. As part of the 2013 HCM SIP, the Board of Directors approved a stock appreciation rights program that authorized the issuance of up to 600,000 stock appreciation rights. As of December 31, 2017, there were 266,350 outstanding stock appreciation rights. As of December 31, 2017, there were 1,939,403 shares available for future grants of stock options and stock awards under the 2013 HCM SIP. Stock options awarded under the 2013 HCM SIP vest either annually on a pro rata basis over a four- or five-year period or on a specific date if certain performance criteria are satisfied and certain equity values are attained. In addition, upon termination of employment, all vested options become eligible to be exercised generally within 90 days after termination. The stock option awards have a 10-year contractual term and have an exercise price that is not less than the fair market value of the underlying stock on the date of grant. Share-based compensation expense was $16.1, $12.5, and $12.8 for years ended December 31, 2017, 2016, and 2015, respectively. Performance-Based Stock Options Performance-based option activity for the period from December 31, 2014 to December 31, 2017, represents stock options granted under the 2013 HCM SIP. Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Options outstanding at December 31, 2014 1,343,100 $ 13.46 6.3 $ — Granted — — Exercised — — Forfeited or expired (62,232 ) (13.46 ) Options outstanding at December 31, 2015 1,280,868 $ 13.46 5.2 $ — Granted — — Exercised — — Forfeited or expired (52,942 ) (13.46 ) Options outstanding at December 31, 2016 1,227,926 $ 13.46 4.2 $ — Granted — — Exercised (167,202 )(a) (13.46 ) Forfeited or expired (25,077 ) (13.46 ) Options outstanding at December 31, 2017 1,035,647 $ 13.46 3.5 $ — (a) During the year ended December 31, 2017, certain performance-based options were modified and exercised. The performance-based options vest on the earlier to occur of a change in control or an initial public offering (“IPO”) in which the value of Ceridian stock is at least $26.92 per share or higher. If the value of the common stock has not reached $26.92 or higher per share at the time an IPO or change in control event occurs, the options expire unvested, or through the expiration date. Options issued under the 2013 HCM SIP, other than the Replacement Options, do not include performance based-options. As of December 31, 2017, there was $5.3 of share-based compensation expense related to unvested performance-based stock options not yet recognized. Term-Based Stock Options Term-based option activity for the period from December 31, 2014 to December 31, 2017, represents stock options granted under the 2013 HCM SIP. As of December 31, 2017, there were 6,819,649 vested options. Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Options outstanding at December 31, 2014 7,588,078 $ 15.98 8.2 $ 13.3 Granted 187,140 17.56 Exercised — — Forfeited or expired (168,060 ) (16.40 ) Options outstanding at December 31, 2015 7,607,158 $ 16.02 7.3 $ 14.1 Granted 2,339,238 16.80 Exercised — — Forfeited or expired (176,626 ) (16.54 ) Options outstanding at December 31, 2016 9,769,770 $ 16.20 7.1 $ 9.9 Granted 2,285,981 17.46 Exercised (595,464 ) (15.14 ) Forfeited or expired (468,606 ) (16.10 ) Options outstanding at December 31, 2017 10,991,681 $ 16.52 6.9 $ 48.8 Options exercisable at December 31, 2017 6,819,649 $ 16.14 5.5 $ 32.9 Other information pertaining to term-based options is as follows: Year Ended December 31, 2017 2016 2015 Weighted average grant date fair value per share $ 5.88 $ 5.74 $ 5.68 The fair value of the term-based stock options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, 2017 2016 2015 Expected volatility 30.0 % 30.0 % 33.0 % Expected dividend rate — — — Risk-free interest rate 2.3 % 1.9 % 2.1 % For stock options granted under the 2007 SIP, we used the simplified method to estimate the expected term of the stock options. For stock options granted under the 2013 HCM SIP, we estimated an expected term of 7.0 years, based on the vesting period and contractual life. As of December 31, 2017, there was $21.7 of share-based compensation expense related to unvested term based awards not yet recognized, which is expected to be recognized over a weighted average period of 1.3 years. As of December 31, 2017, there were 6,819,649 vested term-based stock options. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero coupon issues with remaining term equal to the contractual term of the performance-based options and the expected term of the term-based option. The estimated volatility of Ceridian common stock is based on the historical volatility of comparable public companies over a period approximately equal to the expected term. Restricted Stock Units Restricted stock units (“RSUs”) activity for the period from December 31, 2014 to December 31, 2017, represents restricted stock units granted under the 2013 HCM SIP. Shares RSUs outstanding at December 31, 2014 — Granted 228,572 Shares issued upon vesting of RSUs — Forfeited or canceled — RSUs outstanding at December 31, 2015 228,572 Granted 29,800 Shares issued upon vesting of RSUs (76,192 ) Forfeited or canceled — RSUs outstanding at December 31, 2016 182,180 Granted 500,000 Shares issued upon vesting of RSUs (76,190 ) Forfeited or canceled — RSUs outstanding at December 31, 2017 605,990 Other information pertaining to restricted stock units is as follows: Year Ended December 31, 2017 2016 2015 Weighted average grant date fair value per share $ 17.26 $ 17.40 $ 17.50 During the year ended December 31, 2017, 76,192 restricted stock units vested, and shares of Ceridian common stock were issued. As of December 31, 2017, there were 605,990 unvested restricted stock units outstanding. Restricted stock units generally vest annually over a three- or four-year period. As of December 31, 2017, there was $7.1 of share-based compensation expense related to unvested restricted stock units not yet recognized, which is expected to be recognized over a weighted average period of 2.2 years. |
Supplementary Data to Statement
Supplementary Data to Statements of Operations | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Supplementary Data to Statements of Operations | 11. Supplementary Data to Statements of Operations Other (income) expense, net consisted of foreign currency translation income of $2.5, and foreign currency translation expense of $6.9 for the nine months ended September 30, 2018, and 2017, respectively. The foreign currency translation is primarily related to remeasurement gains and losses from an intercompany payable of a U.S. subsidiary denominated in Canadian dollars. This intercompany payable was repaid in the second quarter of 2018. | 13. Supplementary Data to Statements of Operations Year Ended December 31, 2017 2016 2015 Other Expense, Net Asset impairment $ — $ 10.4 $ 23.0 Environmental reserve — 5.9 — Foreign currency translation expense (income) 7.3 (3.4 ) 4.8 Total other expense, net $ 7.3 $ 12.9 $ 27.8 Asset Impairment The sale of the UK Business in 2016 was considered a triggering event to test the trade name intangible asset for impairment. Given the reduction in future revenues of the UK Business previously included in the relief from royalty models used to support the trade name value, we recorded an impairment charge during the year ended December 31, 2016, of $10.2 to the trade name intangible asset. The remaining impairment amount is related to immaterial asset write-offs. The sales of the Divested Benefits Continuation Businesses in 2015 were considered triggering events to test the trade name intangible asset for impairment. Given the reduction in future revenues from both businesses previously included in the relief from royalty models used to support the trade name value, we recorded an impairment charge during the year ended December 31, 2015, of $22.6 to the trade name intangible asset. The remaining impairment amount is related to immaterial asset write-offs. Environmental Reserve In September 1989, Parent’s predecessor entered into an Environmental Matters Agreement (“EMA”) with Seagate Technology plc (“Seagate”) related to groundwater contamination on a parcel of real estate sold by Parent’s predecessor to Seagate. Ceridian is now responsible for the EMA. The EMA requires expense sharing between Ceridian and Seagate for the remediation of groundwater contamination up to a certain limit. Based on additional information obtained with respect to more stringent remediation requirements, we have updated our estimate of the potential liability related to the EMA, resulting in an increase to the environmental reserve of $5.9 for the year ended December 31, 2016, which now represents the limit under the EMA. Please refer to Note 16, “Commitments and Contingencies,” for further discussion of our environmental liabilities. Foreign Currency Translation Expense (Income) We incurred foreign currency translation expense of $7.3 for the year ended December 31, 2017. The foreign currency translation expense for the year ended December 31, 2017, is primarily related to foreign currency remeasurement losses resulting from an intercompany payable of a U.S. operating subsidiary which is repaid in Canadian dollars. We had foreign currency translation income of $3.4 for the year ended December 31, 2016. The foreign currency translation income for the year ended December 31, 2016, is primarily related to foreign currency remeasurement gains on intercompany receivables and payables between international subsidiaries that were settled in early 2017. We incurred a foreign currency translation expense of $4.8 for the year ended December 31, 2015. The foreign currency translation expense for the year ended December 31, 2015, is primarily due to foreign currency remeasurement losses related to an intercompany receivable of a U.S. operating subsidiary which is repaid in Canadian dollars. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Accumulated Other Comprehensive Income (Loss) | 12. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) were as follows: Foreign Currency Translation Adjustment Unrealized Gain (Loss) from Invested Customer Trust Funds Pension Liability Adjustment Total Balance as of December 31, 2017 $ (160.6 ) $ (9.0 ) $ (142.5 ) $ (312.1 ) Other comprehensive income (loss) before income taxes and reclassifications (16.2 ) (24.5 ) (0.3 ) (41.0 ) Income tax benefit — 2.3 — 2.3 Reclassifications to earnings — — 9.0 9.0 Other comprehensive income (loss) attributable to Ceridian (16.2 ) (22.2 ) 8.7 (29.7 ) LifeWorks Disposition 0.7 — — 0.7 Balance as of September 30, 2018 $ (176.1 ) $ (31.2 ) $ (133.8 ) $ (341.1 ) | 14. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) were as follows: Foreign Currency Translation Adjustment Unrealized Gain (Loss) from Invested Customer Trust Funds Pension Liability Adjustment Total Balance as of December 31, 2015 $ (224.8 ) $ 12.9 $ (167.3 ) $ (379.2 ) Other comprehensive income (loss) before income taxes and reclassifications 8.0 (10.2 ) (7.8 ) (10.0 ) Income tax benefit (expense) — 2.0 (0.1 ) 1.9 Sale of UK Business, net of tax 16.9 — 9.0 25.9 Reclassifications to earnings — — 9.9 9.9 Other comprehensive income (loss) attributable to Ceridian 24.9 (8.2 ) 11.0 27.7 Balance as of December 31, 2016 (199.9 ) 4.7 (156.3 ) (351.5 ) Other comprehensive income (loss) before income taxes and reclassifications 39.3 (17.3 ) 3.7 25.7 Income tax benefit — 3.6 — 3.6 Reclassifications to earnings — — 10.1 10.1 Other comprehensive income (loss) attributable to Ceridian 39.3 (13.7 ) 13.8 39.4 Balance as of December 31, 2017 $ (160.6 ) $ (9.0 ) $ (142.5 ) $ (312.1 ) During the year ended December 31, 2017, other comprehensive income attributable to noncontrolling interest was $0.4, entirely related to foreign currency translation. During the year ended December 31, 2016, other comprehensive loss attributable to noncontrolling interest was $0.6, entirely related to foreign currency translation. |
Income Taxes
Income Taxes | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | 13. Income Taxes Our income tax provision represents federal, state, and international taxes on our income recognized for financial statement purposes, which includes the effect of temporary differences between financial statement income and income recognized for tax return purposes. Our income tax provision is negatively affected by the need for a valuation allowance against our deferred tax assets. We record a valuation allowance to reduce our deferred tax asset when it is more likely than not that all or a portion of the deferred tax asset will not be realized. In determining the requirement for a valuation allowance, we assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize our deferred tax assets not already identified as requiring a valuation allowance. As of September 30, 2018, and December 31, 2017, we continued to record a full valuation allowance against our domestic deferred tax assets that are not offset by the reversal of deferred tax liabilities. In the future, if it is determined that we no longer have a requirement to record a valuation allowance against all or a portion of our deferred tax assets, the release of the valuation allowance would have a positive impact on our income tax provision. On December 22, 2017, the Tax Cut and Jobs Act legislation (the “Tax Act”) was signed into law. The Tax Act made broad and complex changes to the U.S. tax code including: (a) lower U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018, (b) accelerated expensing of qualified capital investments for a specific period, and (c) a transition from a worldwide tax system to a territorial tax system. The reduction in the U.S. statutory tax rate from 35% to 21% results in the reduction of the overall U.S. statutory tax rate, including state and local taxes, from 39.0% to 25.9%. ASC 740, Income Taxes, requires a company to record the effects of a tax law change in the period of enactment; however, shortly after enactment of the Tax Act, the SEC staff issued Staff Accounting Bulletin (“SAB”) 118, which allows a company to record a provisional amount when it does not have the necessary information available to complete its accounting for the change in the tax law. The FASB subsequently issued ASU No. 2018-05 No. 2018-05 We recorded income tax expense of $5.8 during the nine months ended September 30, 2018. Included in this amount are the estimated impacts of requiring a current inclusion in U.S. federal income of certain earnings of controlled foreign corporations, allowing a domestic corporation an immediate deduction in the U.S. taxable income for a portion of its foreign-derived intangible income, and the base erosion anti-abuse tax. In January and April of 2018, the Internal Revenue Service (the “IRS”) issued guidance that provides additional clarification on certain aspects of the transition tax calculation. For the quarter ended September 30, 2018, the application of the additional IRS guidance resulted in a $16.2 million increase in includible untaxed foreign earnings, which resulted in a $5.7 million increase in tax expense. This increase was offset by the tax benefit of the utilization of $16.2 million of net operating loss carryover. The overall impact to tax expense in the quarter ended September 30, 2018, was zero. The total amount of unrecognized tax benefits as of September 30, 2018, and December 31, 2017, were $1.3, including $0.2 of accrued interest, and $1.5, including $0.4 of accrued interest, respectively. Of the total amount of unrecognized tax benefits as of September 30, 2018, $1.3 represents the amount that, if recognized, would favorably impact our effective income tax rate. It is reasonable to expect that the amount of unrecognized tax benefits will change in the next twelve months; however, we do not expect the change to have a significant impact on our results of operations or financial condition. We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions. With a few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. | 15. Income Taxes Year Ended December 31, 2017 2016 2015 Components of Earnings and Taxes from Operations (Loss) Income Before Income Taxes: U.S. $ (83.4 ) $ (163.4 ) $ (147.3 ) International 29.3 64.8 43.2 Total $ (54.1 ) $ (98.6 ) $ (104.1 ) Income Tax Expense (Benefit): Current: U.S. $ (0.3 ) $ (0.4 ) $ (0.2 ) State and local 0.1 0.2 0.1 International 12.9 15.2 15.1 Total current income tax expense 12.7 15.0 15.0 Deferred: U.S. (60.3 ) (15.7 ) (10.4 ) State and local 0.8 (0.1 ) (1.8 ) International (2.8 ) 7.5 1.5 Total deferred income tax (benefit) expense (62.3 ) (8.3 ) (10.7 ) Total income tax (benefit) expense $ (49.6 ) $ 6.7 $ 4.3 Year Ended December 31, 2017 2016 2015 Effective Rate Reconciliation U.S. statutory rate (35.0 )% (35.0 )% (35.0 )% Change in valuation allowance (116.9 ) (5.4 ) 14.9 State income taxes, net of federal benefit (5.2 ) (1.2 ) (0.7 ) Share-based compensation 8.3 2.6 2.7 International tax rate differential (6.7 ) (6.4 ) (5.5 ) Foreign dividend income 48.1 1.0 12.4 Unremitted foreign earnings (35.6 ) 22.0 — Foreign capital gain income — — 3.6 Reserve for tax contingencies — (0.2 ) 0.1 Expiration of un-utilized tax credits 1.5 — 10.4 Unrealized gain on investments — 30.7 — Change in tax rate 52.4 — — Other (2.6 ) (1.5 ) 1.2 Income tax provision (91.7 )% 6.6 % 4.1 % On December 22, 2017, the Tax Cut and Jobs Act legislation (the “Tax Act”) was enacted. The Tax Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for businesses. ASC 740, “Accounting for Income Taxes,” requires a company to record the effects of a tax law change in the period of enactment; however, shortly after the enactment of the Tax Act, the U.S. Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin (“SAB”) 118, which allows a company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. We continue to gather information related to estimates surrounding the re-measurement of deferred tax assets and to unrepatriated earnings from foreign subsidiaries to more precisely compute the re-measurement of deferred taxes and the impact of the transition tax. We have made a reasonable estimate of the impact of the Tax Act on the consolidated financial statements for the period ended December 31, 2017, and have recorded a tax benefit of $59.4. The Tax Act provides for a reduction in the U.S. corporate tax rate from 35% to 21%. We have re-valued our deferred tax assets and liabilities to reflect the tax rate reduction resulting in a decrease of the net deferred tax asset and the recognition of a tax expense of $28.0. We also re-valued the valuation allowance required to be carried against the net deferred tax asset resulting in the recognition of a tax benefit of $54.4. The Tax Act provides for a transition of the U.S. tax system from a worldwide system to a territorial system. A current year transition tax is imposed on a taxpayer’s untaxed foreign earnings. We have includible untaxed foreign earnings of $74.3 resulting in a tax expense of $26.0. We have used our current year net operating loss to offset the includible foreign earnings resulting in a tax benefit of $26.0. Furthermore, we had previously recorded a deferred tax liability on a portion of our untaxed foreign earnings. Since all previously untaxed foreign earnings have now been included in U.S. taxable income, the deferred tax liability has been released resulting in a tax benefit of $20.9. We have also re-evaluated the need for a valuation allowance after considering the change in the deferred tax liability resulting in an increase of the valuation allowance and a tax expense of $20.9. The Tax Act changes the current 20-year carryover period for a net operating loss (“NOL”) to an indefinite carryover period for NOL’s incurred after December 31, 2017. This change impacts our evaluation of the requirement for a valuation allowance resulting in a decrease in the required valuation allowance and a tax benefit of $33.0. December 31, 2017 2016 Tax Effect of Items That Comprise a Significant Portion of the Net Deferred Tax Asset and Deferred Tax Liability Deferred Tax Asset: Employment related accruals $ 51.0 $ 89.7 Foreign tax credit carryover and other credit carryovers 0.2 1.1 Net operating loss carryforwards 100.3 133.1 Total gross deferred tax asset 151.5 223.9 Valuation allowance (90.7 ) (159.9 ) Total deferred tax asset $ 60.8 $ 64.0 Deferred Tax Liability: Intangibles $ (65.7 ) $ (101.7 ) Unremitted foreign earnings — (20.9 ) Unrealized gain on investment (22.2 ) (33.5 ) Other (5.0 ) (5.5 ) Total deferred tax liability (92.9 ) (161.6 ) Net deferred tax liability $ (32.1 ) $ (97.6 ) December 31, 2017 2016 Net Deferred Tax by Geography U.S. $ (18.4 ) $ (78.0 ) International (13.7 ) (19.6 ) Total $ (32.1 ) $ (97.6 ) As of December 31, 2017, we had federal, state and foreign net operating loss carryovers which will reduce future taxable income when utilized. Approximately $70.5 in net federal tax benefit is available from the loss carryovers and an additional $0.3 is available in federal tax credit carryovers. The state loss carryovers will result in state tax benefit of approximately $29.7. A small portion of the federal net operating loss tax benefit, $1.0, will expire in 2021 and the remaining amount will begin to expire in 2029 and state net operating loss carryovers will begin to expire in 2018. The federal credit carryovers are composed of foreign tax credits which will begin to expire in 2018, research credits which will begin to expire in 2027, and alternative minimum tax credits which have no expiration date. As of December 31, 2017, including consideration of the impact of the Tax Act, we carried a full valuation allowance against our domestic net deferred tax asset (“DTA”) position after excluding a portion of the deferred tax liability for long-lived, non-amortizable taxable temporary differences. We periodically re-assess the likelihood that DTA reported in the accompanying consolidated financial statements will be recovered from future taxable income. Because we continue to be in a net DTA position, after excluding a portion of the deferred tax liability for long-lived, non-amortizable taxable temporary differences, as of December 31, 2017, our position that it is still more likely than not that the tax benefit associated with a portion of the DTA will not be realized has not changed. We assessed the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing net DTAs not already identified as requiring a valuation allowance. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2017. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. As of December 31, 2017, we had a total valuation allowance of $90.7. The amount of the DTA considered realizable could be adjusted in the future if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. We file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With a few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2013. The following table summarizes the activity for unrecognized tax benefits: Year Ended December 31, 2017 2016 Federal, State and Foreign Tax Beginning unrecognized tax balance $ 1.4 $ 1.7 Increase prior period positions 0.2 0.1 Increase current period positions 0.1 0.2 Decrease prior period positions — (0.3 ) Decrease current period positions — (0.1 ) Statutes expiring (0.2 ) (0.2 ) Ending unrecognized tax benefits $ 1.5 $ 1.4 The total amount of unrecognized tax benefits as of December 31, 2017, was $1.5 including $0.4 of accrued interest and penalty. Of the total amount of unrecognized tax benefits, $1.5 represents the amount that, if recognized, would impact our effective income tax rate as of December 31, 2017. It is expected that the amount of unrecognized tax benefits will change in the next 12 months; however, we cannot reasonably estimate the amount of the change. We do not expect the change to have a significant impact on our results of operations or financial condition. We consider a portion of the unremitted earnings from international subsidiaries to be indefinitely reinvested; the transition tax imposed by the Tax Act has not changed our position on such earnings. While we were able to make a reasonable estimate of the impact of the Tax Act on the U.S. taxation of such earnings, our estimate may be affected by additional guidance released in the future. In addition, the repatriation of our overseas earnings could result in non-U.S. income taxes, such as withholding taxes. We consider $234.5 of our overseas earnings to be indefinitely reinvested as of December 31, 2017. Because of the multiple avenues in which the foreign earnings could be repatriated to minimize the tax cost, and because a large portion of these earnings are not liquid, it is not practical to determine the tax liability that would be payable if such earnings were not indefinitely reinvested. A portion of our unremitted earnings from international subsidiaries is not considered indefinitely reinvested, and we have provided a deferred tax liability of $5.1 as of December 31, 2017 for the expected tax cost of repatriating such earnings. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 14. Commitments and Contingencies Legal Matters We are subject to claims and a number of judicial and administrative proceedings considered normal in the course of our current and past operations, including employment-related disputes, contract disputes, disputes with our competitors, intellectual property disputes, government audits and proceedings, customer disputes, and tort claims. In some proceedings, the claimant seeks damages as well as other relief, which, if granted, would require substantial expenditures on our part. Our general terms and conditions in customer contracts frequently include a provision indicating that we will indemnify and hold our customers harmless from and against any and all claims alleging that the services and materials furnished by us violate any third party’s patent, trade secret, copyright or other intellectual property right. We are not aware of any material pending litigation concerning these indemnifications. Some of these matters raise difficult and complex factual and legal issues and are subject to many uncertainties, including the facts and circumstances of each particular action, and the jurisdiction, forum, and law under which each action is proceeding. Because of these complexities, final disposition of some of these proceedings may not occur for several years. As such, we are not always able to estimate the amount of our possible future liabilities, if any. There can be no certainty that we may not ultimately incur charges in excess of presently established or future financial accruals or insurance coverage. Although occasional adverse decisions or settlements may occur, it is management’s opinion that the final disposition of these proceedings will not, considering the merits of the claims and available resources or reserves and insurance, and based upon the facts and circumstances currently known, have a material adverse effect on our financial position or results of operations. | 16. Commitments and Contingencies Leasing We conduct substantially all of our operations in leased facilities. Most of our leases contain renewal options and require payments for taxes, insurance and maintenance. We recognize rent holidays, including the time period during which we have access to the property for construction of improvements, construction allowances and escalating rent provisions on a straight-line basis over the term of the lease. Substantially all of our leasing arrangements for equipment and facilities are operating leases and the rental payments under these leases are charged to operations as incurred. The amounts in the accompanying tables do not include capital lease obligations recorded as liabilities. Our rental expense and sublease income were as follows: Year Ended December 31, 2017 2016 2015 Rental Expense, Net Rental expense $ 17.0 $ 16.8 $ 18.6 Sublease rental income (4.2 ) (3.5 ) (2.3 ) Net rental expense $ 12.8 $ 13.3 $ 16.3 Our future minimum noncancellable lease payments, net, on existing operating leases at December 31, 2017, which have an initial term of more than one year, are as follows: Years Ending December 31, Amount 2018 $ 10.5 2019 10.6 2020 8.9 2021 6.3 2022 5.4 Thereafter 4.3 Total $ 46.0 Environmental Matters We accrue for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. In February 1988, Parent’s predecessor entered into an arrangement with Northern Engraving Corporation (“NEC”) and the Minnesota Pollution Control Agency (“MPCA”) in relation to groundwater contamination on a parcel of real estate sold by Parent’s predecessor to NEC. Ceridian is now responsible for the arrangement with NEC and the MPCA. The arrangement requires expense sharing between Ceridian and NEC for the remediation of groundwater contamination. In September 1989, Parent’s predecessor entered into an EMA with Seagate related to groundwater contamination on a parcel of real estate sold by Parent’s predecessor to Seagate. Ceridian is now responsible for the EMA. The EMA requires expense sharing between Ceridian and Seagate for the remediation of groundwater contamination up to a certain limit. Based on additional information obtained with respect to more stringent remediation requirements, we have updated our estimate of the potential liability related to the EMA, resulting in an increase to the environmental reserve of $5.9 for the year ended December 31, 2016, which now represents the limit under the EMA. We have recognized an undiscounted liability of approximately $5.4 and $6.2 as of December 31, 2017 and 2016, respectively, in our consolidated balance sheets to comply with the NEC arrangement and EMA described above. The ultimate cost, however, will depend on the extent of continued monitoring activities as these projects progress. Please refer to Note 13, “Supplementary Data to Statements of Operations,” for further discussion of changes in the liability during the year ended December 31, 2016. Legal Matters We are subject to claims and a number of judicial and administrative proceedings considered normal in the course of our current and past operations, including employment-related disputes, contract disputes, disputes with our competitors, intellectual property disputes, government audits and proceedings, customer disputes, and tort claims. In some proceedings, the claimant seeks damages as well as other relief, which, if granted, would require substantial expenditures on our part. Our general terms and conditions in customer contracts frequently include a provision indicating we will indemnify and hold our customers harmless from and against any and all claims alleging that the services and materials furnished by us violate any third party’s patent, trade secret, copyright or other intellectual property right. We are not aware of any material pending litigation concerning these indemnifications. Some of these matters raise difficult and complex factual and legal issues and are subject to many uncertainties, including the facts and circumstances of each particular action, and the jurisdiction, forum, and law under which each action is proceeding. Because of these complexities, final disposition of some of these proceedings may not occur for several years. As such, we are not always able to estimate the amount of our possible future liabilities, if any. There can be no certainty that we may not ultimately incur charges in excess of presently established or future financial accruals or insurance coverage. Although occasional adverse decisions or settlements may occur, it is management’s opinion that the final disposition of these proceedings will not, considering the merits of the claims and available resources or reserves and insurance, and based upon the facts and circumstances currently known, have a material adverse effect on our financial position or results of operations. |
Related Party Transactions
Related Party Transactions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | 15. Related Party Transactions Management Agreements Prior to our IPO, Ceridian was party to management agreements with affiliates of our Sponsors, Fidelity National Financial, Inc. (“FNF”) and THL Managers VI, LLC (“THLM”). FNF assigned its management agreement to Cannae in November 2017. Pursuant to these management agreements, Cannae and THLM each, respectively, agreed to provide us with financial advisory, strategic, and general oversight services. These management agreements provided that we pay annual management fees to each of Cannae and THLM in an amount equal to the greater of (a) $0.9, or (b) 0.5 percent of Adjusted EBITDA. Adjusted EBITDA, for purposes of the management agreements, was EBITDA as defined in the 2014 Senior Secured Credit Facility, further adjusted to exclude the payments made pursuant to the management agreements and certain stock options or other equity compensation. In April 2018, the management agreements terminated upon consummation of our IPO. Upon termination, the management agreements provided that we pay a termination fee equal to the net present value of the management fee for a seven-year period, which was $11.3. During the nine months ended September 30, 2018, and 2017, we recorded a management fee expense in selling, general, and administrative expense of $12.0 and $1.4, respectively, related to these management agreements. Debt Prior to its split-off split-off Service and Vendor Related Agreements Ceridian is a party to a service agreement with CompuCom Systems, Inc. (“CompuCom”), an investment portfolio company of THL Partners. Pursuant to the service agreement, CompuCom agrees to provide us with service desk and desk side support services. Pursuant to this arrangement, we made payments to CompuCom $1.3 and $2.3 during the nine months ended September 30, 2018, and 2017, respectively. Other Transactions On July 23, 2018, Ronald F. Clarke was appointed to our Board of Directors. Mr. Clarke has been the chief executive officer of FleetCor Technologies Inc. (“FleetCor Technologies”) since August 2000 and its chairman of the board of directors since March 2003. We provide services to FleetCor Technologies or one of its wholly owned affiliates through certain commercial arrangements entered into in the ordinary course of business, which include provision of Dayforce HCM services, reseller or referral arrangements whereby we resell or refer FleetCor Technologies services to its customers, and other administrative services. For these services, we have recorded revenue of $0.2 and $0.4 for the nine months ended September 30, 2018, and 2017, respectively. We are also a corporate charge card customer of FleetCor Technologies. FleetCor Technologies receives a fee from the merchants from whom purchases are made on the FleetCor Technologies corporate charge card by us. In connection with charge card purchases made by us, FleetCor Technologies has provided us with rebates of approximately $0.2 for the nine months ended September 30, 2017. We provide Dayforce and related services to The Stronach Group, for which we recorded revenue $0.2 for the nine months ended September 30, 2018. Alon Ossip, the brother of our chief executive officer, David Ossip, was the chief executive officer, and is currently a minority shareholder, of The Stronach Group. We provide Dayforce and related services to FNF for which we recorded revenue of $0.3 and $0.4 for the nine months ended September 30, 2018, and 2017, respectively. | 17. Related Party Transactions Management Agreements Ceridian is party to management agreements with affiliates of our Sponsors, Fidelity National Financial, Inc. (“FNF”) and THLM. FNF assigned its management agreement to Cannae in November 2017. Pursuant to these management agreements, Cannae and THLM each, respectively, agree to provide the Company with financial advisory, strategic, and general oversight services. These management agreements provide that we will pay annual management fees to each of Cannae and THLM in an amount equal to the greater of (a) $0.9, or (b) 0.5 percent of Adjusted EBITDA. Adjusted EBITDA, for purposes of the management agreements, is EBITDA as defined in the Ceridian Senior Secured Credit Facility, further adjusted to exclude the payments made pursuant to the management agreements and certain stock options or other equity compensation. We recorded a management fee expense in selling, general, and administrative expense of $1.9, $5.0, and $1.9 for the years ended December 31, 2017, 2016, and 2015, respectively, related to these management agreements. The expense for the year ended December 31, 2016, includes transaction advisory fees of $3.0 related to the issuance of the senior convertible participating preferred stock. Please refer to Note 19, “Capital Stock,” for further discussion of this transaction. Indebtedness Affiliates of Cannae owned $30.8, $30.3, and $23.1 of the Ceridian Senior Notes as of December 31, 2017, 2016, and 2015, respectively. Based on this ownership, $3.2, $3.2, and $3.2 in interest payments were made to affiliates of Cannae during the years ended December 31, 2017, 2016, and 2015, respectively. The affiliates of Cannae conducted the debt transactions through third parties in the ordinary course of their business and not directly with us. Service and Vendor Related Agreements Ceridian is a party to a service agreement with CompuCom Systems, Inc. (“CompuCom”), an investment portfolio company of THL Partners. Pursuant to the service agreement, CompuCom agrees to provide us with service desk and desk side support services. Pursuant to this arrangement, we made payments to CompuCom totaling $3.1, $5.0, and $2.8 during the years ended December 31, 2017, 2016, and 2015, respectively. Other Transactions We provide Dayforce and related services to The Stronach Group, for which we recorded revenue of $0.2 for the year ended December 31, 2016. Alon Ossip, the brother of David Ossip, is the chief executive officer of The Stronach Group. We provide Dayforce and related services to FNF for which we recorded revenue of $0.4, $0.3, and $0.5 for the years ended December 31, 2015, 2016, and 2017, respectively. |
Financial Data by Segment and G
Financial Data by Segment and Geographic Area | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | ||
Financial Data by Segment and Geographic Area | 16. Financial Data by Segment and Geographic Area Segments After consideration of the LifeWorks Disposition, management has concluded that we have one operating and reportable segment. This conclusion aligns with how management monitors operating performance, allocates resources, and deploys capital. Please refer to Note 3, “Discontinued Operations,” for further discussion of the LifeWorks Disposition. Our Solutions We categorize our solutions into two categories, Cloud and Bureau. • Cloud revenue is generated from HCM solutions that are delivered via two cloud offerings, Dayforce and Powerpay. The Dayforce offering is differentiated from our market competition as being a single application with continuous calculation that offers a comprehensive range of functionality, including global HR, payroll, benefits, workforce management, and talent management on web and native iOS and Android platforms. Dayforce revenue is primarily generated from monthly recurring fees charged on a per-employee, per-month one-month per-employee, per-process year-end • Bureau revenue is generated primarily from HCM solutions delivered via a service-bureau model. These solutions are delivered via three primary service lines: payroll, payroll-related tax filing services, and outsourced human resource solutions. Revenue from payroll services is generated from recurring fees charged on a per-process year-end Revenue by solution is as follows: Nine Months Ended September 30, 2018 2017 Cloud $ 386.0 $ 288.0 Bureau 160.1 200.4 Total revenue $ 546.1 $ 488.4 | 18. Financial Data by Segment and Geographic Area Segments After considerations of the LifeWorks Disposition, management has concluded that we have one operating and reportable segment. This conclusion aligns with how management monitors operating performance, allocates resources, and deploys capital. Please refer to Note 3, “Discontinued operations,” for further discussion of the LifeWorks Disposition. Our Solutions We categorize our solutions into two categories: Cloud and Bureau offerings. • Cloud revenue is generated from HCM solutions that are delivered via two cloud offerings: Dayforce and Powerpay. The Dayforce offering is differentiated from our market competition as being a single application that offers a comprehensive range of functionality, including global HR, payroll, benefits, workforce management, and talent management on web and native iOS and Android platforms. Dayforce revenue is primarily generated from monthly recurring fees charged on a PEPM basis, generally one-month in advance of service. Also included within Dayforce revenue is implementation, staging, and other professional services revenue; revenues from the sale, rental, and maintenance of time clocks; and billable travel expenses. The Powerpay offering is our solution designed primarily for small market Canadian customers. The typical Powerpay customer has fewer than 20 employees, and the majority of the revenue is generated from recurring fees charged on a per-employee, per-process basis. Typical processes include the customer’s payroll runs, year-end tax packages, and delivery of customers’ remittance advices or checks. In addition to the direct revenue earned from the Dayforce and Powerpay offerings, Cloud revenue also includes investment income generated from holding Cloud customer funds in trust before funds are remitted to taxing authorities, Cloud customer employees, or other third parties; and revenue from the sale of third party services. • Bureau revenue is generated primarily from HCM solutions delivered via a service-bureau model. These solutions are delivered via three primary service lines: payroll, payroll-related tax filing services, and outsourced human resource solutions. Revenue from payroll services is generated from recurring fees charged on a per-process basis. Typical processes include the customer’s payroll runs, year-end tax packages, and delivery of customers’ remittance advices or checks. In addition to customers who use our payroll services, certain customers use our tax filing services on a stand-alone basis. Our outsourced human resource solutions are tailored to meet the needs of individual customers, and entail our contracting to perform many of the duties of a customer’s human resources department, including payroll processing, time and labor management, performance management, and recruiting. We also perform individual services for customers, such as check printing, wage attachment and disbursement, and ACA management. Additional items included in Bureau revenue are custom professional services revenue; investment income generated from holding Bureau customer funds in trust before funds are remitted to taxing authorities, Bureau customer employees, or other third parties; consulting services related to Bureau offerings; and revenue from the sale of third party services. Revenue by solution is as follows: Year Ended December 31, 2017 2016 2015 Cloud $ 404.3 $ 297.8 $ 225.2 Bureau 266.5 325.6 386.4 Total revenue $ 670.8 $ 623.4 $ 611.6 Geographic and Customer Information No single customer accounts for 1% or more of our consolidated revenue for any of the periods presented. Revenue by country is as follows: Year Ended December 31, 2017 2016 2015 United States $ 465.2 $ 432.7 $ 420.0 Canada 203.4 189.0 190.8 Other 2.2 1.7 0.8 Total revenue $ 670.8 $ 623.4 $ 611.6 Long-lived assets by country is as follows: December 31, 2017 2016 United States $ 1,786.1 $ 1,788.3 Canada 480.6 450.6 Other 2.8 2.4 Total long-lived assets $ 2,269.5 $ 2,241.3 |
Net Income (Loss) per Share
Net Income (Loss) per Share | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net Income (Loss) per Share | 17. Net Income (Loss) per Share We compute net income (loss) per share of common stock using the treasury stock method. Basic net income (loss) per share is computed by dividing net income (loss) attributable to Ceridian available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. For the calculation of diluted net income (loss) per share, net income (loss) per share is adjusted by the effect of dilutive securities, including awards under our share-based compensation plans. Diluted net income (loss) per share is computed by dividing the resulting net income (loss) attributable to Ceridian available to common stockholders by the weighted-average number of fully diluted common shares outstanding. During the nine months ended September 30, 2018, and 2017, our potential dilutive shares, such as stock options, RSUs, and shares of senior and junior convertible preferred stock were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive. The numerators and denominators of the basic and diluted net income (loss) per share computations are calculated as follows: Nine Months Ended 2018 2017 Numerator: Net income (loss) attributable to Ceridian $ (63.2 ) $ (54.2 ) Less: Loss from discontinued operations (14.8 ) (2.4 ) Net income (loss) from continuing operations attributable to Ceridian (48.4 ) (51.8 ) Less: Senior Preferred Stock dividends declared 7.7 15.3 Net income (loss) from continuing operations attributable to Ceridian available to common stockholders $ (56.1 ) $ (67.1 ) Denominator: Weighted-average shares outstanding – basic and diluted 105,730,178 65,181,373 Net income (loss) per share from continuing operations attributable to Ceridian—basic $ (0.53 ) $ (1.03 ) Net loss per share from discontinued operations—basic $ (0.14 ) $ (0.04 ) Net income (loss) per share attributable to Ceridian—basic $ (0.67 ) $ (1.07 ) Net income (loss) per share from continuing operations attributable to Ceridian—diluted $ (0.53 ) $ (1.03 ) Net loss per share from discontinued operations—diluted $ (0.14 ) $ (0.04 ) Net income (loss) per share attributable to Ceridian— diluted $ (0.67 ) $ (1.07 ) The following potentially dilutive weighted-average shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive: Nine Months Ended September 30, 2018 2017 Senior convertible preferred stock 7,358,603 16,802,144 Junior convertible preferred stock 25,508,456 58,244,308 Stock options 14,127,557 11,349,251 Restricted stock units 561,836 478,325 | 20. Net Loss per Share We compute net loss per share of common stock using the treasury stock method. Basic net loss per share is computed by dividing net loss attributable to Ceridian available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. For the calculation of diluted net loss per share, net loss per share is adjusted by the effect of dilutive securities, including awards under our share-based compensation plans. Diluted net loss per share is computed by dividing the resulting net loss attributable to Ceridian available to common stockholders by the weighted-average number of fully diluted common shares outstanding. In the years ended December 31, 2017, 2016, and 2015, our potential dilutive shares, such as stock options, RSUs, and shares of senior and junior convertible preferred stock were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive. The numerators and denominators of the basic and diluted net loss per share computations are calculated as follows: Year Ended December 31, 2017 2016 2015 Numerator: Net loss attributable to Ceridian $ (9.2 ) $ (92.9 ) $ (104.7 ) Less: Income (loss) from discontinued operations (6.0 ) 12.5 3.7 Net loss from continuing operations attributable to Ceridian (3.2 ) (105.4 ) (108.4 ) Less: Senior Preferred Stock dividends declared 20.5 14.1 — Net loss from continuing operations attributable to Ceridian available to common stockholders $ (23.7 ) $ (119.5 ) $ (108.4 ) Denominator: Weighted-average shares outstanding—basic 65,204,960 64,988,338 64,924,845 Weighted-average shares outstanding—diluted 65,204,960 64,988,338 64,924,845 Net loss per share from continuing operations attributable to Ceridian—basic and diluted $ (0.36 ) $ (1.84 ) $ (1.67 ) Net (loss) income per share from discontinued operations—basic and diluted $ (0.10 ) $ 0.19 $ 0.06 Net loss per share attributable to Ceridian—basic and diluted $ (0.46 ) $ (1.65 ) $ (1.61 ) The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive: Year Ended December 31, 2017 2016 2015 Senior convertible preferred stock 16,802,144 12,601,608 — Junior convertible preferred stock 58,244,308 58,244,308 58,244,308 Stock options 10,201,105 8,423,124 7,468,081 Unvested RSUs 451,190 155,692 190,477 |
Business Combinations and Nonco
Business Combinations and Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations and Noncontrolling Interest | 4. Business Combinations and Noncontrolling Interest We have a controlling interest in the Joint Venture Company, including certain preferential distribution rights; therefore, the Joint Venture Company is consolidated within our financial statements, and the other joint venture ownership interest component is presented as a noncontrolling interest. As a result of holding a controlling interest in the Joint Venture Company, this transaction has been accounted for as a business combination, whereby the Joint Venture Company acquired all of the issued and outstanding shares of WorkAngel in exchange for 10,063,749 Class B shares in the Joint Venture Company, valued at $39.2 as of March 1, 2016. Concurrently, we recorded the initial noncontrolling interest of $39.2 on our consolidated balance sheet. At the acquisition date, the net assets of WorkAngel were approximately $2.1, which were comprised of $1.2 of cash and $0.9 of net working capital. As a result, we have recorded $37.1 of goodwill related to the acquisition of WorkAngel. The goodwill recorded principally relates to the assembled workforce of WorkAngel. During the year ended December 31, 2017, the loss attributable to the noncontrolling interest was $1.3. During the year ended December 31, 2016, the income attributable to the noncontrolling interest was $0.1. In the second quarter of 2018, contemporaneously with our IPO and concurrent private placement, we distributed our controlling financial interest in LifeWorks to our stockholders of record prior to the IPO on a pro rata basis in accordance with their pro rata interest in us. Please refer to Note 3, “Discontinued Operations,” for further discussion of the LifeWorks Disposition. |
Trade and Other Receivables, Ne
Trade and Other Receivables, Net | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Trade and Other Receivables, Net | 7. Trade and Other Receivables, Net The balance in trade and other receivables, net, is comprised of the following: December 31, 2017 2016 Trade receivables from customers $ 67.2 $ 71.2 Interest receivable from invested customer trust funds 1.7 0.5 Other 3.7 5.3 Total gross receivables 72.6 77.0 Less: reserve for sales adjustments (4.7 ) (4.1 ) Less: allowance for doubtful accounts (1.3 ) (1.8 ) Trade and other receivables, net $ 66.6 $ 71.1 The activity related to the allowance for doubtful accounts is as follows for each of the periods: Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 1.8 $ 1.1 $ 1.1 Provision for doubtful accounts 0.2 1.1 0.6 Charge-offs, net of recoveries (0.7 ) (0.4 ) (0.6 ) Balance at end of year $ 1.3 $ 1.8 $ 1.1 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Capital Stock | 19. Capital Stock As of the date of the Separation Transaction, Ceridian was authorized to issue 100,000,000 shares of common stock with a par value of $0.01 per share and 70,000,000 shares of junior convertible participating preferred stock (“Junior Preferred Stock”) with a par value of $0.01 per share. On March 30, 2016, the Board of Directors increased the number of authorized shares of common stock to 150,000,000 and authorized 70,000,000 shares of senior convertible participating preferred stock (“Senior Preferred Stock”) with a par value of $0.01 per share. As of December 31, 2017, there were 65,285,962 shares of common stock issued and outstanding, 16,802,144 shares of Senior Preferred Stock issued and outstanding, and 58,244,308 shares of Junior Preferred Stock issued and outstanding. As of December 31, 2016, there were 65,001,037 shares of common stock issued and outstanding, 16,802,144 shares of Senior Preferred Stock issued and outstanding, and 58,244,308 shares of Junior Preferred Stock issued and outstanding. The common stock provides holders with one vote on all matters submitted to a vote of stockholders. Common stock is eligible to receive dividends declared by the board of directors so long as the preferred stockholders are also receiving dividends on an “if converted” basis. Holders of common stock receive a pro-rata share of liquidation proceeds after holders of convertible participating preferred stock are paid their required amounts in liquidation. The Junior Preferred Stock provides holders with the equivalent number of votes on an “as converted” basis. The Board of Directors may provide shares of preferred stock with other rights, preferences or provisions without approval of the holders of common stock. The Junior Preferred Stock may be converted to common stock at the option of the holder for a number of shares based on the conversion price. The initial conversion price is equal to the original issuance price adjusted for certain events of dilution other than shares issued to employees and directors pursuant to the 2013 HCM SIP and certain other instances of issuances of shares of common stock. In the event of an initial public offering, the Junior Preferred Stock is automatically converted to common stock. Junior Preferred Stock receives dividends on an “if converted” basis in the event that common stock dividends are declared. As discussed in Note 10, “Debt,” dividend declarations are restricted by certain debt covenants. Shares of Junior Preferred Stock are also adjusted for events such as common stock dividends, stock splits, mergers and reorganizations. In the event of liquidation, Junior Preferred Stock receives the greater of up to $6.75 per share of preferred stock (adjusted for dividend, stock split, combination or other similar recapitalization with respect to the convertible participating preferred stock) or a pro rate price per share of all common stock if converted in a liquidation event, subject to the total amount of net assets available in liquidation. On March 30, 2016, we entered into an equity financing transaction with Ceridian Holding II. Ceridian Holding II raised $150.2 from our Sponsors, certain of their co-investors, and certain other existing stockholders of Ceridian Holding. Of such amount, $75.0 was contributed by Ceridian Holding II to Ceridian on March 30, 2016. The remaining $75.2 was committed to be funded to Ceridian HCM Holding Inc. within the following three years, and was recorded within equity as a receivable from stockholder. During the second quarter of 2017, the board of directors of Ceridian Holding II approved the funding of the remaining $75.2, which was transferred to Ceridian HCM Holding Inc. on June 28, 2017. In connection therewith, Ceridian issued $150.2 of the Senior Preferred Stock to Ceridian Holding II. The Senior Preferred Stock is senior in priority to all outstanding equity securities of Ceridian and may be converted to common stock at the option of the stockholder for a number of shares based on the conversion price. The initial conversion price is equal to the original issuance price and is subject to adjustment for certain events of dilution, including common stock dividends, stock splits, mergers and reorganizations, and the initial public offering price upon such event. In the event of an initial public offering, the Senior Preferred Stock is automatically converted to common stock. The Senior Preferred Stock receives a 12.5% annual dividend (not cash paying). In the event of liquidation, the Senior Preferred Stock has a liquidation preference equal to 1.5 times the initial face amount plus any accrued but unpaid dividends. The Senior Preferred Stock is not considered disqualified stock under our debt covenants, and is thereby not prohibited by our debt covenants, because it does not mature and is not mandatorily redeemable at the option of the stockholder prior to 91 days after the maturity of the Ceridian Senior Secured Credit Facility. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events Subsequent events have been evaluated through March 14, 2018, the original issuance date of this report. On January 17, 2018, we announced the confidential submission of a draft registration statement on Form S-1 to the SEC relating to the proposed initial public offering of our common stock. The number of shares of common stock to be sold and the price range for the proposed offering have not yet been determined. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accounting policies we follow are set forth in Note 2, “Summary of Significant Accounting Policies,” to Ceridian’s audited consolidated financial statements, included in our audited consolidated financial statements and notes thereto for the year ended December 31, 2017 (our “2017 Annual Report”), included within our prospectus dated April 25, 2018, as filed with the Securities and Exchange Commission (the “SEC”) on April 26, 2018, pursuant to Rule 424(b) under the Securities Act of 1933, as amended (File No. 333-223905) In the opinion of management, the unaudited condensed consolidated financial statements contained herein reflect all adjustments (consisting only of normal recurring adjustments, except as set forth in these notes to condensed consolidated financial statements) necessary to present fairly in all material aspects the financial position, results of operations, comprehensive loss, and cash flows from all periods presented. Interim results are not necessarily indicative of results for a full year. | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying consolidated financial statements include the operations and accounts of Ceridian and all subsidiaries, as well as any variable interest entity (“VIE”) in which we have controlling financial interest. All intercompany balances and transactions have been eliminated from our consolidated financial statements. We consolidate the grantor trusts that hold funds provided by our payroll and tax filing customers pending remittance to employees of those customers or tax authorities in the United States and Canada. Under consolidation accounting, the enterprise with a controlling financial interest consolidates a VIE. A controlling financial interest in an entity is determined through analysis that identifies the primary beneficiary which has (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (2) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. In addition, ongoing reassessments must be performed to confirm whether an enterprise is the primary beneficiary of a VIE. The grantor trusts are VIEs, and we are deemed to have a controlling financial interest as the primary beneficiary. Please refer to Note 6, “Customer Trust Funds,” for further information on our accounting for these funds. |
Reverse Stock Split | Reverse Stock Split On April 10, 2018, we effected a 1-for-2 | Reverse Stock Split On April 10, 2018, we effected a 1-for-2 reverse stock split of our common stock. All of the common share and per share information referenced throughout the consolidated financial statements and accompanying notes thereto have been retroactively adjusted to reflect this reverse stock split. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates that could significantly affect our results of operations or financial condition involve the assignment of fair values to goodwill and other intangible assets, the testing of impairment of long-lived assets, the determination of our liability for pensions and postretirement benefits, the determination of fair value of stock options granted, and the resolution of tax matters and legal contingencies. Please refer to our 2017 Annual Report for a further discussion of these estimates. | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our financial statements and our reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates that could significantly affect our results of operations or financial condition involve the assignment of fair values to goodwill and other intangible assets and testing for impairment; the testing of impairment of long-lived assets; the determination of our liability for pensions and postretirement benefits; the determination of fair value of stock options granted; and the resolution of tax matters and legal contingencies. Further discussion on these estimates can be found in related disclosures elsewhere in our notes to the consolidated financial statements. |
Internally Developed Software Costs | Internally Developed Software Costs In accordance with Accounting Standards Codification (“ASC”) Topic 350, we capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and our management has authorized further funding for the project, which it deems probable of completion. Capitalized software costs include only: (1) external direct costs of materials and services consumed in developing or obtaining the software; (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the project; and (3) interest costs incurred while developing the software. Capitalization of these costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We do not include general and administrative costs and overhead costs in capitalizable costs. We charge research and development costs and other software maintenance costs related to software development to earnings as incurred. | Internally Developed Software Costs We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and our management has authorized further funding for the project, which it deems probable of completion. Capitalized software costs include only: (1) external direct costs of materials and services consumed in developing or obtaining the software; (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the project; and (3) interest costs incurred while developing the software. Capitalization of these costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. We do not include general and administrative costs and overhead costs in capitalizable costs. We charge research and development costs and other software maintenance costs related to software development to earnings as incurred. We had capitalized software costs, net of accumulated amortization, of $56.4 and $46.5 as of December 31, 2017 and 2016, respectively, included in property, plant, and equipment in the accompanying consolidated balance sheets. We amortize software costs on a straight-line basis over the expected life of the software, generally a range of two to seven years. Amortization of software costs totaled $23.6, $20.9, and $19.4 for the years ended December 31, 2017, 2016, and 2015, respectively. |
Foreign Currency Translation | Foreign Currency Translation We have international operations whereby the local currencies serve as functional currencies. We translate foreign currency denominated assets and liabilities at the end-of-period | Foreign Currency Translation We have international operations whereby the local currencies serve as functional currencies. We translate foreign currency denominated assets and liabilities at the end-of-period exchange rates and foreign currency denominated statements of operations at the weighted-average exchange rates for each period. We report the effect of changes in the U.S. dollar carrying values of assets and liabilities of our international operations that are due to changes in exchange rates between the U.S. dollar and their functional currency as foreign currency translation within accumulated other comprehensive income (loss) in the accompanying consolidated statements of stockholders’ equity and comprehensive income (loss). Gains and losses from transactions and translation of assets and liabilities denominated in currencies other than the functional currency of the international operation are recorded in the consolidated statements of operations within other expense, net. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, non-public No. 2014-09 In preparation for this planned adoption, we have been evaluating the impact of the new standard to our financial statements and accompanying disclosures in the notes to our consolidated financial statements. Our assessment of the impact includes an evaluation of the five-step process set forth in the new standard along with the enhancement of disclosures that will be required. To date, we have developed our initial plan for implementing the standard, which includes identifying customer contracts within the scope of the new standard, identifying performance obligations within those customer contracts, and evaluating the impact of incremental variable consideration paid to obtain those customer contracts. We have also undertaken a comprehensive review of all contracts that fall under the scope of the new standard; and, as of the date of this report, we have substantially completed our review of in-scope Based on analysis performed to date, we expect that adoption of the new standard will result in changes to the classification and timing of our revenue recognition. Specifically, we expect an increase in revenue classified as professional services and other revenue and a reduction in revenue classified as recurring services revenue under the new standard, as compared to current U.S. GAAP. Further, we expect that the new standard will result in changes to the timing of our revenue recognition compared to current U.S. GAAP. In compliance with the new standard, a contractual asset will be reflected on the consolidated balance sheets and will be amortized over the customers’ period of benefit, which is generally three years. We also expect changes to the timing of certain incremental selling, general, and administrative expenses, as the new standard will also require capitalizing and amortizing certain selling expenses, such as commissions and bonuses paid to the sales force. These sales expenses will be amortized over the customer’s period of benefit, generally five years. In periods of revenue growth, the changes above are expected to result in higher overall earnings before income taxes and net income, on an annual basis, when compared to current U.S. GAAP. We have not yet determined the impact of the disclosure requirements. The following table presents the anticipated impacts that the adoption of ASC 606 would have for the periods presented: Nine Months Ended September 30, 2018 As Reported Under ASC 606 Impact Revenue: Recurring services $ 480.8 $ 460.4 $ (20.4 ) Professional services and other 65.3 85.5 20.2 Total revenue $ 546.1 $ 545.9 $ (0.2 ) Operating profit $ 31.3 $ 36.9 $ 5.6 Nine Months Ended September 30, 2017 As Reported Under ASC 606 Impact Revenue: Recurring services $ 438.2 $ 419.8 $ (18.4 ) Professional services and other 50.2 72.7 22.5 Total revenue $ 488.4 $ 492.5 $ 4.1 Operating profit $ 16.9 $ 25.7 $ 8.8 In February 2016, the FASB issued ASU No. 2016-02, non-public right-of-use In July 2018, the FASB issued ASU No. 2018-10, 2018-11, No. 2018-10 No. 2016-02. non-early No. 2016-02. No. 2018-11 non-lease non-lease No. 2016-02. In August 2016, the FASB issued ASU No. 2016-15, non-public In February 2018, the FASB issued ASU No. 2018-02, | Recently Issued and Adopted Accounting Pronouncements In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which replaced all existing revenue guidance created by ASC Topic 606, including prescriptive industry-specific guidance. This standard’s core principle is that an entity will recognize revenue when it transfers promised 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. Entities will need to apply more judgment and make more estimates than under the previous guidance. In July 2015 the FASB deferred the effective date for all entities by one year, making the guidance for non-public companies effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within that reporting period). The standard permits the use of either the retrospective or cumulative effect transition method. Management has decided to adopt the new standard effective first quarter 2019. Management anticipates using the retrospective method for adoption. In preparation for this planned adoption, we have been evaluating the impact of the new standard to our financial statements and accompanying disclosures in the notes to our consolidated financial statements. Our assessment of the impact includes an evaluation of the five-step process set forth in the new standard along with the enhancement of disclosures that will be required. To date, we have developed our initial plan for implementing the standard, which includes identifying customer contracts within the scope of the new standard, identifying performance obligations within those customer contracts, and evaluating the impact of incremental variable consideration paid to obtain those customer contracts. We have also undertaken a comprehensive review of all contracts that fall under the scope of the new standard; and, as of the date of this report, we are nearly complete with our review of in-scope contracts. Based on analysis performed to date, we expect that adoption of the new standard will result in changes to the classification and timing of our revenue recognition. Specifically, we expect an increase in revenue classified as professional services and other revenue and a reduction in revenue classified as recurring services revenue, compared to current U.S. GAAP. Further, we expect that the new standard will result in changes to the timing of our revenue recognition compared to current U.S. GAAP. In compliance with the new standard, a contractual asset will be reflected on the consolidated balance sheets and will be amortized over the customers’ period of benefit, which is generally three years. We also expect changes to the timing of certain selling, general, and administrative expenses, as the new standard will also require capitalizing and amortizing certain selling expenses, such as commissions and bonuses paid to the sales force. These sales expenses will be amortized over the customer’s period of benefit, generally five years. In periods of revenue growth, the changes above are expected to result in higher overall earnings before income taxes and net income when compared to current U.S. GAAP. We have not yet determined the impact of the disclosure requirements. In February 2016 the FASB issued ASU No. 2016-02, “Leases,” which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard requires balance sheet recognition for both finance leases and operating leases. This guidance is effective for non-public companies for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The guidance is required to be adopted using a modified retrospective approach. An entity will, in effect, continue to account for leases that commence before the effective date in accordance with previous U.S. GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous U.S. GAAP. We are currently evaluating the impact of the adoption of this standard. In March 2016 the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation,” which simplifies several aspects of accounting for share-based payment transactions. This standard requires all excess tax benefits or deficiencies to be recognized within the income statement with the tax benefits classified as an operating activity on the statement of cash flows. This standard also requires cash paid by an employer for tax withholding purposes to be classified as a financing activity on the statement of cash flows. This guidance is effective for non-public companies for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018. The guidance relating to the income tax consequences is required to be adopted using a modified retrospective approach. The guidance relating to the classification on the statement of cash flows is required to be adopted using a retrospective approach. We elected early adoption of this standard as of January 1, 2017, which had an immaterial impact on our financial results and presentation. In January 2017 the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other,” which simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. This standard requires that an entity perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The update also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. This guidance is effective for public business entities that are not an SEC filer for annual or interim goodwill impairment tests in fiscal years beginning December 15, 2020. We elected early adoption of this standard as of our October 1, 2017, our annual testing date, which did not have an impact on our financial results. |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements In connection with the preparation of our consolidated financial statements for the year ended December 31, 2017, we identified a prior period error pertaining to the misclassification of a deferred tax liability attributable to previously amortized tax basis goodwill as a deferred tax liability eligible to offset deferred tax assets when determining the requirement for a valuation allowance. This resulted in a $12.7 understatement of non-cash income tax expense in fiscal years prior to December 31, 2015, impacting accumulated deficit amounts as a component of stockholders’ equity as of December 31, 2015 and 2016. There was no impact to the consolidated statements of operations for any period presented. In accordance with accounting guidance found in Accounting Standards Codification (“ASC”) Topic 250-10 (Securities and Exchange Commission Staff Accounting Bulletin No. 99, “Materiality,” and No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements”), we assessed the materiality of the error from quantitative and qualitative perspectives and concluded that the error was not material to any of our previously issued financial statements. Since the revision was not material to any prior period, no amendments to previously issued financial statements are required. Consequently, we have adjusted for this error by revising our historical financial statements presented herein. We have recognized the cumulative effect of the error on periods prior to those that are presented herein by increasing accumulated deficit and other liabilities by $12.7 on our consolidated balance sheets as of December 31, 2016, and increasing accumulated deficit by $12.7 on our consolidated statements of stockholders’ equity as of December 31, 2014, 2015 and 2016. | |
Cash and Equivalents | Cash and Equivalents As of December 31, 2017 and 2016, cash and equivalents were comprised of cash held in bank accounts and investments with an original maturity of three months or less. | |
Concentrations | Concentrations Cash deposits of client and corporate funds are maintained primarily in large credit-worthy financial institutions in the countries in which we operate. These deposits may exceed the amount of any deposit insurance that may be available through government agencies. All deliverable securities are held in custody with large credit-worthy financial institutions which bear the risk of custodial loss. Non-deliverable securities, primarily money market securities, are restricted to large, credit-worthy broker-dealers and financial institutions. | |
Trade and Other Receivables, Net | Trade and Other Receivables, Net Trade and other receivables balances are presented on the consolidated balance sheets net of the allowance for doubtful accounts of $1.3 and $1.8 and the reserve for sales adjustment of $4.7 and $4.1 as of December 31, 2017 and 2016, respectively. We experience credit losses on accounts receivable and, accordingly, must make estimates related to the ultimate collection of the receivables. Specifically, management analyzes accounts receivable, historical bad debt experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We estimate the reserve for sales adjustment based on historical sales adjustment experience. We write off accounts receivable when we determine that the accounts are uncollectible, generally upon customer bankruptcy or the customer’s nonresponse to continued collection efforts. | |
Property, Plant, and Equipment | Property, Plant, and Equipment Our property, plant, and equipment assets are stated at cost less depreciation. Depreciation is calculated on a straight-line basis over the shorter of the remaining lease term or estimated useful life of the related assets, which are generally as follows: Buildings 40 years Building improvements 5-14 years Machinery and equipment 3-8 years Computer equipment 3-6 years Repairs and maintenance costs are expensed as incurred. We capitalized interest of $0.6 and $0.4 in property, plant, and equipment during the years ended December 31, 2017 and 2016, respectively. Property, plant, and equipment assets are assessed for impairment as described under the heading “Impairment of Long-Lived Assets” below. | |
Assignment of Fair Values Upon Acquisition of Goodwill and Other Intangible Assets | Assignment of Fair Values Upon Acquisition of Goodwill and Other Intangible Assets In the event of a business combination where we are the acquiring party, we are required to assign fair values to all identifiable assets and liabilities acquired, including intangible assets, such as customer lists, identifiable intangible trademarks, technology and non-compete agreement. We are also required to determine the useful life for definite-lived identifiable intangible assets acquired. These determinations require significant judgments, estimates, and assumptions, and, when material amounts are involved, we generally utilize the assistance of third-party valuation consultants. The remainder of the purchase price of the acquired business not assigned to identifiable assets or liabilities is then recorded as goodwill. In conjunction with the 2007 Merger, affiliates of the Sponsors completed the acquisition of all outstanding equity of the Ceridian entities. Although Parent continued as the same legal entity after the 2007 Merger, the application of push down accounting representing the termination of the old accounting entity and the creation of a new one resulted in the adjustment of all net assets to their respective fair values as of the 2007 Merger. Net assets of the Parent were adjusted to their respective fair values, which included goodwill, trademarks, customer lists, and other intangible assets. At the time of the legal separation of Ceridian and Comdata on October 1, 2013 (the “Separation Transaction”), there was no change in ownership control by the Sponsors and other stockholders of Parent and its ownership structure and accordingly, Ceridian’s separation from Parent was not accounted for as a business combination. As such, the goodwill and intangibles from the 2007 Merger remain after the Separation Transaction. | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill, which represents the excess purchase price over the fair value of net assets of businesses acquired, is assigned to reporting units based on the benefits derived from the acquisition. Goodwill and indefinite-lived intangibles are not amortized against earnings but instead are subject to impairment review on at least an annual basis. We perform our annual assessment of goodwill and indefinite-lived intangible balances as of October 1 of each year. There was no indication of impairment for either reporting unit at October 1, 2017. As of January 1, 2017, we elected early adoption of Accounting Standards Update No. 2017-04, “Intangibles-Goodwill and Other,” which simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. We assess goodwill impairment risk by first performing a qualitative review of entity-specific, industry, market, and general economic factors for each reporting unit. If significant potential goodwill impairment risk exists for a specific reporting unit, we apply a quantitative test. The quantitative test compares the reporting unit’s estimated fair value with its carrying amount. In estimating fair value of our reporting units, we use a combination of the income approach and the market-based approach. A number of significant assumptions and estimates are involved in determining the current fair value of the reporting units, including operating cash flows, markets and market share, sales volumes and prices, and working capital changes. We consider historical experience and all available information at the time the fair values of our reporting units are estimated. However, fair values that could be realized in an actual transaction may differ from those used to evaluate the goodwill for impairment. The evaluation of impairment involves comparing the current fair value of the reporting unit to the carrying amount. To the extent that the carrying amount of goodwill of the reporting unit exceeds the fair value of the reporting unit, an impairment loss is recognized. Intangible assets represent amounts assigned to specifically identifiable intangible assets at the time of an acquisition. Definite-lived assets are amortized on a straight-line basis generally over the following periods: Customer lists and relationships 5-15 years Technology 2-7 years Indefinite-lived intangible assets, which consist of trademarks, are tested for impairment on an annual basis, or more frequently if certain events or circumstances occur that could indicate impairment. When evaluating whether the indefinite-lived intangible assets are impaired, the carrying amount is compared to its estimated fair value. The estimate of fair value is based on a relief from royalty method which calculates the cost savings associated with owning rather than licensing the trademark. An estimated royalty rate is applied to forecasted revenue and the resulting cash flows are discounted. Definite-lived assets are assessed for impairment as described under the heading “Impairment of Long-Lived Assets” below. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property, plant, and equipment, capitalized software, and definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is measured by a comparison of the carrying amount of an asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Please refer to Note 13, “Supplementary Data to Statements of Operations” for further information on the impairment of long-lived assets for the years ended December 31, 2017, 2016, and 2015 . | |
Revenue Recognition | Revenue Recognition We recognize revenue from the sale of our services, net of applicable sales taxes, when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. We rely on a signed contract with the customer as the persuasive evidence of a sales arrangement. We enter into revenue arrangements that may consist of multiple deliverables based on the needs of our customers. For example, our services address a broad range of employment process needs, such as payroll, payroll-related tax filing, human resource information, employee self-service capabilities, time and labor management, employee assistance, work-life, recognition, and incentive programs, and recruitment and applicant screening. A customer arrangement may contain any of these elements with different elements delivered across multiple reporting periods. We have a single unit of accounting for each deliverable in a contract based on the use of estimated selling price (“ESP”) in those cases where vendor-specific objective evidence of selling price (“VSOE”) or third party evidence (“TPE”) cannot be established. Our determination of ESP involves the consideration of several factors based on the specific facts and circumstances of each contract. Specifically, we consider the cost to produce or to provide the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar services, the value of any enhancements that have been built into the deliverable and the characteristics of the varying markets in which the deliverable will be sold. When we are unable to establish a selling price using VSOE or TPE, we use ESP in the allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact a sale if the service were sold on a stand-alone basis. We regularly review VSOE, TPE, and ESP and maintain internal controls over the establishment and updates of these estimates. There were no material impacts during the period nor do we currently expect a material impact in the near term from changes in VSOE, TPE, or ESP. Deferred revenue primarily consists of customer billings in advance of revenues being recognized from our contracts. Deferred revenue also includes certain deferred professional services fees that are accounted for as a single unit of accounting with subscription fees and are recognized as revenues over the same period as the related customer contract. Deferred revenue that is anticipated to be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent. | |
Recurring Services Revenues | Recurring Services Revenues Revenues are presented within the consolidated statements of operations in two categories: recurring services, and professional services and other. Recurring services revenues consist of monthly fees that we charge for our Cloud and Bureau solutions, as well as for LifeWorks. For our Dayforce solutions, we primarily charge monthly recurring fees on a PEPM basis, generally one-month in advance of service, based on the number and type of solutions provided to the customer and the number of employees at the customer. We charge Powerpay customers monthly recurring fees on a per-employee, per-process basis. For our Bureau solutions, we typically charge monthly recurring fees on a per-process basis. The typical recurring services customer contract has an initial term of three years. The initial recurring services contracts have general acceptance criteria that consist of the completion of user acceptance testing. Any credits related to service level commitments are recognized as incurred as service level failures and are not anticipated at contract signing. Should a customer cancel the initial contract, an early termination fee may be applicable and revenue is recognized upon collection. We also generate recurring services revenue from investment income on our Cloud and Bureau customer funds held in trust before such funds are remitted to taxing authorities, customer employees or other third parties. We refer to this investment income as float revenue. Please refer to Note 18, “Financial Data by Segment and Geographic Area,” for a full description of our sources of revenue. | |
Professional Services and Other Revenues | Professional Services and Other Revenues Professional services and other revenues consist primarily of charges relating to the work performed to assist customers with the implementation of their solutions. Also included in professional services are any related training services, post-implementation professional services, and purchased time clocks. We also generate professional services and other revenues from custom professional services and consulting services that we provide and for certain third-party services that we arrange for our Bureau customers. Professional services revenue is primarily recognized as hours are incurred. | |
Cost of Revenue | Cost of Revenue Cost of revenue consists of costs to deliver our revenue-producing services. Most of these costs are recognized as incurred, that is, as we become obligated to pay for them. Some costs of revenue are recognized in the period that a service is sold and delivered. Other costs of revenue are recognized over the period of use or in proportion to the related revenue. The costs recognized as incurred consist primarily of customer service staff costs, customer technical support costs, implementation personnel costs, costs of hosting applications, consulting and purchased services, delivery services, and royalties. The costs of revenue recognized over the period of use are depreciation and amortization, rentals of facilities and equipment, and direct and incremental costs associated with deferred implementation service revenue. Cost of recurring services revenues primarily consists of costs to provide maintenance and technical support to our customers, and the costs of hosting our applications. The cost of recurring services revenues includes compensation and other employee-related expenses for data center staff, payments to outside service providers, data center, and networking expenses. Cost of professional services and other revenues primarily consists of costs to provide implementation consulting services and training to our customers, as well as the cost of time clocks. Costs to provide implementation consulting services include compensation and other employee-related expenses for professional services staff, costs of subcontractors, and travel. Product development and management expense includes costs related to software development activities that do not qualify for capitalization, such as development, quality assurance, testing of new technologies, and enhancements to our existing solutions that do not result in additional functionality. Product development and management expense also includes costs related to the management of our service offerings. Research and development expense, which is included within product development and management expense, was $19.0, $13.0, and $11.2 for the years ended December 31, 2017, 2016, and 2015, respectively. Depreciation and amortization related to cost of revenue primarily consists of amortization of capitalized software. | |
Selling, General, and Administrative Expense | Selling, General, and Administrative Expense Selling expense includes costs related to maintaining a direct marketing infrastructure and sales force and other direct marketing efforts, such as advertising, telemarketing, direct mail, and trade shows. Advertising costs are expensed as incurred. Advertising expense was $5.6, $5.9, and $5.4 for the years ended December 31, 2017, 2016, and 2015, respectively. General and administrative expense includes costs that are not directly related to delivery of services, selling efforts, or product development, primarily consisting of corporate-level costs, such as administration, finance, legal and human resources. Also included in this category are the provision for doubtful accounts receivable, net periodic pension costs, depreciation, and amortization of other intangible assets not reflected in cost of revenue. | |
Other Expense, Net | Other Expense, Net Other expense, net includes the results of transactions that are not appropriately classified in another category. These items are primarily foreign currency translation gains and losses, environmental reserve charges, and charges related to the impairment of asset values. | |
Income Taxes | Income Taxes Income taxes have been provided for using the liability method. The liability method requires an asset and liability based approach in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities and the expected benefits of utilizing net operating loss carryforwards. The impact on deferred taxes of changes in tax rates and laws, if any, applied to the years during which temporary differences are expected to be settled, are reflected in the consolidated financial statements in the period of enactment. We classify interest and penalties related to income taxes as a component of the income tax provision. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and equivalents, trade and other receivables, net, customer trust funds, customer trust funds obligations, customer advance payments, and accounts payable approximate fair value because of the short-term nature of these items. | |
Share-Based Compensation | Share-Based Compensation Our employees participate in share-based compensation plans. Under the fair value recognition provisions of share-based compensation accounting, we measure share-based compensation cost at the grant date based on the fair value of the award and recognize the compensation expense over the requisite service period, which is the period during which an employee is required to provide services in exchange for the award. We use the Black-Scholes standard option pricing model (“Black-Scholes model”) to determine the fair value of stock options with term-based vesting conditions. The determination of the fair value of the awards on the date of grant using the Black-Scholes model is affected by the value of our common stock as well as other inputs and assumptions described below. The value of our common stock is determined by the Board of Directors with assistance from a third-party valuation expert. We use an integrated Monte Carlo simulation model and a trinomial lattice model to determine fair value of performance-based options. The Monte Carlo model utilizes multiple input variables that determine the probability of satisfying the market conditions stipulated in the award. This probability is an input into the trinomial lattice model used to fair value the options as well as other inputs and assumptions described below. If factors change and we employ different assumptions for estimating share-based compensation expense in future periods or if we adopt a different valuation model, the future periods may differ significantly from what we have recorded in the current period and could materially affect our operating results. To determine fair value of both term- and performance-based stock options, the risk-free interest rate used was based on the implied yield currently available on U.S. Treasury zero coupon issues with remaining term equal to the contractual term of the performance-based options and the expected term of the term-based option. The estimated volatility of our common stock is based on volatility data for selected comparable public companies over the expected term of our stock options. Because we do not anticipate paying any cash dividends in the foreseeable future, we use an expected dividend yield of zero. The amount of share-based compensation expense we recognize during a period is based on the portion of the awards that are ultimately expected to vest. We estimate option forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We analyze historical data to estimate pre-vesting forfeitures and record share-based compensation expense for those awards expected to vest. We recognize term-based stock compensation expense using the straight-line method. |
Organization (Tables)
Organization (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of the Proceeds from the IPO | The use of the proceeds from the IPO were as follows: Gross proceeds $ 631.3 Less: Underwriters’ discounts and commissions 29.2 IPO-related 11.8 Redemption of 11% Senior Notes due 2021 (Note 8) 475.0 Call premium on redemption of 11% Senior Notes due 2021 13.1 Interest on redemption of 11% Senior Notes due 2021 10.9 Sponsor management termination fee 11.3 Debt refinancing expenses 11.4 Cash to balance sheet $ 68.6 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Estimated useful life of Property, Plant, and Equipment | Property, Plant, and Equipment Our property, plant, and equipment assets are stated at cost less depreciation. Depreciation is calculated on a straight-line basis over the shorter of the remaining lease term or estimated useful life of the related assets, which are generally as follows: Buildings 40 years Building improvements 5-14 years Machinery and equipment 3-8 years Computer equipment 3-6 years | |
Definite lived Intangible Assets Amortization Expense | Definite-lived assets are amortized on a straight-line basis generally over the following periods: Customer lists and relationships 5-15 years Technology 2-7 years | |
Accounting Standards Update 2014-09 [Member] | ||
Impact of Adoption of ASC 606 on Revenue | The following table presents the anticipated impacts that the adoption of ASC 606 would have for the periods presented: Nine Months Ended September 30, 2018 As Reported Under ASC 606 Impact Revenue: Recurring services $ 480.8 $ 460.4 $ (20.4 ) Professional services and other 65.3 85.5 20.2 Total revenue $ 546.1 $ 545.9 $ (0.2 ) Operating profit $ 31.3 $ 36.9 $ 5.6 Nine Months Ended September 30, 2017 As Reported Under ASC 606 Impact Revenue: Recurring services $ 438.2 $ 419.8 $ (18.4 ) Professional services and other 50.2 72.7 22.5 Total revenue $ 488.4 $ 492.5 $ 4.1 Operating profit $ 16.9 $ 25.7 $ 8.8 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Schedule of Operating Results of Discontinued Operations | The amounts in the table below reflect the operating results and gain on sale of the Divested Benefits Continuation Businesses reported as discontinued operations: Nine Months September 30, Net revenues $ — Income from operations before income taxes — (Loss) gain on sale of businesses 0.5 Income tax benefit (expense) (0.2 ) (Loss) income from discontinued operations, net of income taxes $ 0.3 | The final calculation of the purchase price was determined during the second quarter of 2015, which resulted in the recognition of an additional gain of $1.5. Year Ended December 31, 2017 2016 2015 Net revenues $ — $ 4.8 $ 40.0 (Loss) income from operations before income taxes — (0.8 ) 12.2 Gain (loss) on sale of businesses 0.5 21.0 (28.9 ) Income tax expense (0.2 ) (10.3 ) — Income (loss) from discontinued operations, net of income taxes $ 0.3 $ 9.9 $ (16.7 ) Depreciation and amortization $ — $ — $ 0.4 Capital expenditures $ — $ — $ 0.5 The amounts in the table below reflect the assets and liabilities reported as discontinued operations for the Divested Benefits Continuation Businesses. These amounts are included within other current assets and other accrued expenses, respectively, in our consolidated balance sheets: December 31, 2017 2016 Assets: Other assets $ — $ 0.1 Assets of discontinued operations $ — $ 0.1 Liabilities: Accounts payable $ — $ 0.4 Other liabilities 0.3 0.5 Liabilities of discontinued operations $ 0.3 $ 0.9 |
LifeWorks [Member] | ||
Schedule of Operating Results of Discontinued Operations | The amounts in the table below reflect the operating results of LifeWorks reported as discontinued operations, as well as supplemental disclosures of the discontinued operations: Nine Months Ended September 30, 2018 2017 Net revenues $ 28.3 $ 59.9 Income (loss) from operations before income taxes (0.9 ) 1.9 Income tax expense (13.9 ) (3.9 ) Loss from discontinued operations, net of income taxes $ (14.8 ) $ (2.0 ) Depreciation and amortization $ 1.4 $ 3.0 Capital expenditures $ — $ 0.2 The amounts in the table below reflect the assets and liabilities reported as discontinued operations for LifeWorks: December 31, 2017 Assets: Cash and equivalents $ 5.3 Trade and other receivables, net 13.3 Prepaid expenses 1.5 Property, plant and equipment, net 1.8 Other intangible assets, net 5.9 Goodwill 126.3 Other assets 2.1 Assets of discontinued operations $ 156.2 Liabilities: Accounts payable $ 4.4 Deferred revenue 2.8 Employee compensation and benefits 1.3 Other liabilities 10.8 Liabilities of discontinued operations $ 19.3 | The amounts in the table below reflect the operating results of LifeWorks reported as discontinued operations, as well as supplemental disclosures of the discontinued operations: Year Ended December 31, 2017 2016 2015 Net revenues $ 79.9 $ 80.8 $ 82.3 (Loss) income from operations before income taxes (0.4 ) 7.1 23.8 Income tax expense (4.9 ) (11.1 ) (4.3 ) (Loss) income from discontinued operations, net of income taxes $ (5.3 ) $ (4.0 ) $ 19.5 Depreciation and amortization $ 4.1 $ 4.1 $ 3.8 Capital expenditures $ 0.2 $ 0.3 $ 0.4 The amounts in the table below reflect the assets and liabilities reported as discontinued operations for LifeWorks: December 31, 2017 2016 Assets: Cash and equivalents $ 5.4 $ 10.6 Trade and other receiveables, net 13.3 7.0 Prepaid expenses 1.5 1.7 Property, plant, and equipment, net 1.8 2.4 Other intangible assets, net 5.9 9.2 Goodwill 126.3 124.9 Other assets 2.0 0.2 Assets of discontinued operations $ 156.2 $ 156.0 Liabilities: Accounts payable $ 4.4 $ 5.7 Deferred revenue 2.8 1.9 Employee compensation and benefits 1.2 1.1 Other liabilities 10.9 10.4 Liabilities of discontinued operations $ 19.3 $ 19.1 |
UK Business [Member] | ||
Schedule of Operating Results of Discontinued Operations | The amounts in the table below reflect the operating results of the UK Business reported as discontinued operations, as well as supplemental disclosures of discontinued operations: Nine Months September 30, Net revenues $ — Loss from operations before income taxes — Loss on sale of businesses (0.7 ) Income tax expense — Loss from discontinued operations, net of income taxes $ (0.7 ) | The amounts in the table below reflect the operating results of the UK Business reported as discontinued operations, as well as supplemental disclosures of the discontinued operations: Year Ended December 31, 2017 2016 2015 Net revenues $ — $ 37.0 $ 79.2 Income from operations before income taxes — 0.5 2.3 (Loss) gain on sale of businesses (1.0 ) 5.9 — Income tax benefit (expense) — 0.2 (1.4 ) (Loss) income from discontinued operations, net of income taxes $ (1.0 ) $ 6.6 $ 0.9 Depreciation and amortization $ — $ 1.3 $ 3.3 Capital expenditures $ — $ 0.7 $ 2.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | As of September 30, 2018, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: Total Level 1 Level 2 Level 3 Assets Available for sale customer trust funds assets $ 1,720.1 $ — $ 1,720.1 (a) $ — Total assets measured at fair value $ 1,720.1 $ — $ 1,720.1 $ — As of December 31, 2017, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: Total Level 1 Level 2 Level 3 Assets Available for sale customer trust funds assets $ 1,782.1 $ — $ 1,782.1 (a) $ — Total assets measured at fair value $ 1,782.1 $ — $ 1,782.1 $ — (a) Fair value is based on inputs that are observable for the asset or liability, other than quoted prices. | As of December 31, 2017, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: Total Level 1 Level 2 Level 3 Assets Available for sale customer trust funds assets $ 1,782.1 $ — $ 1,782.1 (a) $ — Total assets measured at fair value $ 1,782.1 $ — $ 1,782.1 $ — As of December 31, 2016, our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: Total Level 1 Level 2 Level 3 Assets Available for sale customer trust funds assets $ 1,755.4 $ — $ 1,755.4 (a) $ — Total assets measured at fair value $ 1,755.4 $ — $ 1,755.4 $ — (a) Fair value is based on inputs that are observable for the asset or liability, other than quoted prices. |
Customer Trust Funds (Tables)
Customer Trust Funds (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Schedule of Amortized Cost and Fair Values of Investments of Customer Trust Funds Available for Sale | Investments of Customer Trust Funds at September 30, 2018 Amortized Gross Unrealized Fair Value Gain Loss Money market securities, investments carried at cost and other cash equivalents $ 1,697.9 $ — $ — $ 1,697.9 Available for sale investments: U.S. government and agency securities 548.6 — (19.1 ) 529.5 Canadian and provincial government securities 414.6 2.1 (2.7 ) 414.0 Corporate debt securities 513.1 0.2 (6.8 ) 506.5 Asset-backed securities 249.6 — (3.6 ) 246.0 Mortgage-backed securities 9.7 — (0.3 ) 9.4 Other securities 14.9 — (0.2 ) 14.7 Total available for sale investments 1,750.5 2.3 (32.7 ) 1,720.1 Invested customer trust funds 3,448.4 $ 2.3 $ (32.7 ) 3,418.0 Trust receivables 8.6 8.6 Total customer trust funds $ 3,457.0 $ 3,426.6 Investments of Customer Trust Funds at December 31, 2017 Amortized Cost Gross Unrealized Fair Value Gain Loss Money market securities, investments carried at cost and other cash equivalents $ 2,309.3 $ — $ — $ 2,309.3 Available for sale investments: U.S. government and agency securities 584.6 0.1 (7.1 ) 577.6 Canadian and provincial government securities 418.2 6.6 (1.5 ) 423.3 Corporate debt securities 472.3 0.8 (2.5 ) 470.6 Asset-backed securities 280.8 — (1.8 ) 279.0 Mortgage-backed securities 15.0 — (0.2 ) 14.8 Other securities 17.0 — (0.2 ) 16.8 Total available for sale investments 1,787.9 7.5 (13.3 ) 1,782.1 Invested customer trust funds 4,097.2 $ 7.5 $ (13.3 ) 4,091.4 Trust receivables 8.3 8.3 Total customer trust funds $ 4,105.5 $ 4,099.7 | Investments of Customer Trust Funds at December 31, 2017 Amortized Gross Fair Gain Loss Money market securities, investments carried at cost and other cash equivalents $ 2,309.3 $ — $ — $ 2,309.3 Available for sale investments: U.S. government and agency securities 584.6 0.1 (7.1 ) 577.6 Canadian and provincial government securities 418.2 6.6 (1.5 ) 423.3 Corporate debt securities $ 472.3 $ 0.8 $ (2.5 ) $ 470.6 Asset-backed securities 280.8 — (1.8 ) 279.0 Mortgage-backed securities 15.0 — (0.2 ) 14.8 Other securities 17.0 — (0.2 ) 16.8 Total available for sale investments 1,787.9 7.5 (13.3 ) 1,782.1 Invested customer trust funds 4,097.2 $ 7.5 $ (13.3 ) 4,091.4 Trust receivables 8.3 8.3 Total customer trust funds $ 4,105.5 $ 4,099.7 Investments of Customer Trust Funds at December 31, 2016 Amortized Gross Fair Gain Loss Money market securities, investments carried at cost and other cash equivalents $ 1,941.9 $ — $ — $ 1,941.9 Available for sale investments: U.S. government and agency securities 607.7 0.9 (4.7 ) 603.9 Canadian and provincial government securities 380.0 12.9 (0.1 ) 392.8 Corporate debt securities 511.7 3.1 (1.2 ) 513.6 Asset-backed securities 192.2 0.4 (0.3 ) 192.3 Mortgage-backed securities 28.7 — (0.2 ) 28.5 Other securities 24.6 — (0.3 ) 24.3 Total available for sale investments 1,744.9 17.3 (6.8 ) 1,755.4 Invested customer trust funds 3,686.8 $ 17.3 $ (6.8 ) 3,697.3 Trust receivables 5.5 5.5 Total customer trust funds $ 3,692.3 $ 3,702.8 |
Schedule of Unrealized Losses and Fair Value | The following represents the gross unrealized losses and the related fair value of the investments of customer trust funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2018. Less than 12 months 12 months or more Total Unrealized Fair Unrealized Fair Unrealized Fair U.S. government and agency securities $ (8.0 ) $ 257.9 $ (11.1 ) $ 268.7 $ (19.1 ) $ 526.6 Canadian and provincial government securities (0.9 ) 86.9 (1.8 ) 100.8 (2.7 ) 187.7 Corporate debt securities (3.7 ) 271.1 (3.1 ) 145.9 (6.8 ) 417.0 Asset-backed securities (1.1 ) 97.4 (2.5 ) 129.8 (3.6 ) 227.2 Mortgage-backed securities (a ) 1.2 (0.3 ) 8.0 (0.3 ) 9.2 Other securities (0.1 ) 4.0 (0.1 ) 10.5 (0.2 ) 14.5 Total available for sale investments $ (13.8 ) $ 718.5 $ (18.9 ) $ 663.7 $ (32.7 ) $ 1,382.2 (a) These investments have been in an unrealized loss position; however, the amount of unrealized loss is less than $0.05. | The following represents the gross unrealized losses and the related fair value of the investments of customer trust funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2017. Less than 12 months 12 months or more Total Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value U.S. government and agency securities $ (3.6 ) $ 436.7 $ (3.5 ) $ 113.5 $ (7.1 ) $ 550.2 Canadian and provincial government securities (1.5 ) 133.4 — — (1.5 ) 133.4 Corporate debt securities (2.0 ) 264.2 (0.5 ) 41.4 (2.5 ) 305.6 Asset-backed securities (1.7 ) 239.6 (0.1 ) 17.0 (1.8 ) 256.6 Mortgage-backed securities (0.1 ) 4.1 (0.2 ) 10.4 (0.3 ) 14.5 Other securities (a) 2.4 (0.1 ) 12.6 (0.1 ) 15.0 Total available for sale investments $ (8.9 ) $ 1,080.4 $ (4.4 ) $ 194.9 $ (13.3 ) $ 1,275.3 (a) These investments have been in an unrealized loss position; however, the amount of unrealized loss is less than $0.05. |
Schedule of Amortized Cost and Fair Value of Investment Securities Available for Sale by Contractual Maturity | Expected maturities will differ from contractual maturities because borrowers may have the right to call or to prepay obligations with or without call or prepayment penalties. September 30, 2018 Cost Fair Value Due in one year or less $ 2,024.4 $ 2,023.9 Due in one to three years 565.6 556.5 Due in three to five years 565.5 557.6 Due after five years 292.9 280.0 Invested customer trust funds $ 3,448.4 $ 3,418.0 | Expected maturities will differ from contractual maturities because borrowers may have the right to call or to prepay obligations with or without call or prepayment penalties. December 31, 2017 Cost Fair Value Due in one year or less $ 2,761.6 $ 2,762.0 Due in one to three years 518.3 648.8 Due in three to five years 528.8 473.9 Due after five years 288.5 206.7 Invested customer trust funds $ 4,097.2 $ 4,091.4 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of Property, Plant and Equipment | Property, plant, and equipment consisted of the following: September 30, December 31, Land $ 7.5 $ 7.5 Software 218.5 197.4 Machinery and equipment 118.8 120.3 Buildings and improvements 39.8 36.3 Total property, plant, and equipment 384.6 361.5 Accumulated depreciation (284.0 ) (259.5 ) Property, plant, and equipment, net $ 100.6 $ 102.0 | Property, plant, and equipment consist of the following: December 31, 2017 2016 Land $ 7.5 $ 7.5 Software 197.4 162.1 Machinery and equipment 120.3 102.4 Buildings and improvements 36.3 36.0 Total property, plant and equipment 361.5 308.0 Accumulated depreciation (259.5 ) (223.5 ) Property, plant and equipment, net $ 102.0 $ 84.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Schedule of Changes in Goodwill | Goodwill and changes therein were as follows for the nine months ended September 30, 2018, and the year ended December 31, 2017: Balance at December 31, 2016 $ 1,933.1 Translation 27.9 Balance at December 31, 2017 1,961.0 Translation (11.2 ) Balance at September 30, 2018 $ 1,949.8 | Goodwill and changes therein were as follows for the years ended December 31, 2017 and 2016: HCM Balance at December 31, 2015 $ 2,008.5 Formation of Joint Venture Company (See Note 4) (87.7 ) Translation 12.3 Balance at December 31, 2016 1,933.1 Translation 27.9 Balance at December 31, 2017 $ 1,961.0 Tax-deductible goodwill at December 31, 2017 $ 12.2 |
Schedule of Other Intangible Assets | Other intangible assets consisted of the following as of September 30, 2018: Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) Customer lists and relationships $ 208.6 $ (188.8 ) $ 19.8 5-15 Trade name 173.9 (2.0 ) 171.9 — Technology 154.4 (153.8 ) 0.6 2-7 Total other intangible assets $ 536.9 $ (344.6 ) $ 192.3 Other intangible assets consisted of the following as of December 31, 2017: Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) Customer lists and relationships $ 210.1 $ (177.0 ) $ 33.1 5-15 Trade name 174.1 (2.1 ) 172.0 — Technology 155.6 (154.2 ) 1.4 2-7 Total other intangible assets $ 539.8 $ (333.3 ) $ 206.5 | Other intangible assets consist of the following as of December 31, 2017: Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) Customer lists and relationships $ 210.1 $ (177.0 ) $ 33.1 5-15 Tradename 174.1 (2.1 ) 172.0 — Technology 155.6 (154.2 ) 1.4 2-7 Total other intangible assets $ 539.8 $ (333.3 ) $ 206.5 Other intangible assets consist of the following as of December 31, 2016: Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) Customer lists and relationships $ 206.2 $ (156.6 ) $ 49.6 5-15 Tradename 173.6 (1.9 ) 171.7 — Technology 152.5 (150.1 ) 2.4 2-7 Total other intangible assets $ 532.3 $ (308.6 ) $ 223.7 |
Estimated Future Amortization of Other Intangible Assets | We estimate the future amortization of other intangible assets held at December 31, 2017, will be: Years Ending December 31, Amount 2018 $ 18.6 2019 15.4 2020 0.1 2021 0.1 2022 — |
Debt (Tables)
Debt (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Schedule of Debt Obligations | Our debt obligations consisted of the following as of the periods presented: September 30, December 31, Term Debt, interest rate of 5.5% and 5.1% as of September 30, 2018 and December 31, 2017, respectively $ 680.0 $ 657.3 Senior Notes, interest rate of 11.0% as of December 31, 2017 — 475.0 Revolving Credit Facility ($300.0 and $130.0 available capacity less amounts reserved for letters of credit, which were $2.7 and $2.9 as of September 30, 2018 and December 31, 2017, respectively) — — Total debt 680.0 1,132.3 Less unamortized discount on Term Debt 1.7 0.9 Less unamortized debt issuance costs on Senior Notes and Term Debt 6.5 11.6 Less current portion of long-term debt 6.8 — Long-term debt, less current portion $ 665.0 $ 1,119.8 | Our debt obligations consist of the following: December 31, 2017 2016 Ceridian Term Debt, interest rate of 5.1% and 4.5% as of December 31, 2017 and 2016, respectively $ 657.3 $ 683.2 Ceridian Senior Notes, interest rate of 11.0% as of December 31, 2017 and 2016 475.0 475.0 Ceridian Revolving Credit Facility ($130.0 available capacity less amounts reserved for letters of credit, which were $8.4 and $7.7 as of December 31, 2017, and 2016, respectively) — — Total debt 1,132.3 1,158.2 Less unamortized discount on Ceridian Term Debt 0.9 1.1 Less unamortized debt issuance costs on Ceridian Senior Notes and Ceridian Term Debt 11.6 15.0 Less current portion of long-term debt — 2.3 Long-term debt, less current portion $ 1,119.8 $ 1,139.8 |
Schedule of Future Principal Payments and Maturities of Indebtedness | The future principal payments and maturities of our debt are as follows: Years Ending December 31, Amount 2018 $ 1.7 2019 6.8 2020 6.8 2021 6.8 2022 6.8 Thereafter 651.1 $ 680.0 | The future principal payments and maturities of our indebtedness are as follows: Years Ending December 31, Amount 2018 $ — 2019 — 2020 657.3 2021 475.0 2022 — Thereafter — $ 1,132.3 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Components of Net Periodic Cost for Defined Benefit Pension Plan and Other Postretirement Benefit Plan | The components of net periodic cost for our defined benefit pension plan and for our postretirement benefit plan are included in the following tables: Nine Months Ended September 30, Net Periodic Pension Cost 2018 2017 Interest cost $ 12.3 $ 12.9 Actuarial loss amortization 10.8 9.6 Less: Expected return on plan assets (19.5 ) (19.8 ) Net periodic pension cost $ 3.6 $ 2.7 Nine Months Ended September 30, Net Periodic Postretirement Benefit 2018 2017 Service benefit $ (0.3 ) $ (0.3 ) Interest cost 0.3 0.3 Actuarial gain amortization (1.8 ) (1.8 ) Net periodic postretirement benefit gain $ (1.8 ) $ (1.8 ) | |
Schedule of Future Payments to Participants from Defined Benefit Plans | The projected future payments to participants from defined benefit plans are included in the table below. Years Ending December 31, Amount 2018 $ 46.8 2019 46.3 2020 45.4 2021 44.4 2022 43.1 Next five years $ 193.5 | |
Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefits | The accompanying tables reflect the combined funded status and net periodic pension cost and combined supporting assumptions for the defined benefit elements of our defined benefit plans. Year Ended December 31, 2017 2016 Funded Status of Defined Benefit Retirement Plans at Measurement Date Change in Projected Benefit Obligation During the Year: Projected benefit obligation at beginning of year $ 605.9 $ 636.0 Service cost — — Interest cost 17.2 18.2 Actuarial loss 20.3 4.3 Benefits paid and plan expenses (50.4 ) (52.6 ) Projected benefit obligation at end of year $ 593.0 $ 605.9 Change in Fair Value of Plan Assets During the Year: Plan assets at fair value at beginning of year 416.4 410.1 Actual return on plan assets 49.6 20.5 Employer contributions 23.0 38.4 Benefits paid and plan expenses (50.4 ) (52.6 ) Plan assets at fair value at end of year 438.6 416.4 Funded status of plans $ (154.4 ) $ (189.5 ) December 31, 2017 2016 Amounts recognized in Consolidated Balance Sheets Current liability $ 20.3 $ 27.1 Noncurrent liability 134.1 162.4 Amounts recognized in Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax of $91.5 and $91.5, respectively $ 151.4 $ 167.2 | |
Schedule of Other Comprehensive (Income) Loss Related to Pension Benefit Plans and Postretirement Benefits | The other comprehensive (income) loss related to postretirement benefits is as follows: Year Ended December 31, 2017 2016 2015 Net actuarial gain $ (0.7 ) $ (1.4 ) $ (4.5 ) Amortization of net actuarial gain 2.7 2.6 2.0 Tax expense — — — Other comprehensive loss (income), net of tax $ 2.0 $ 1.2 $ (2.5 ) Year Ended December 31, 2017 2016 2015 Net Periodic Postretirement Benefit Service cost $ — $ — $ — Interest cost 0.5 0.6 0.9 Actuarial gain amortization (2.4 ) (2.3 ) (1.7 ) Prior service credit amortization (0.3 ) (0.3 ) (0.3 ) Net periodic postretirement benefit gain $ (2.2 ) $ (2.0 ) $ (1.1 ) The amount in accumulated other comprehensive loss that is expected to be recognized as a component of net periodic postretirement benefit cost during 2018 is a $2.5 gain, comprised of $2.2 of actuarial gain and $0.3 of prior service credit. The assumed health care cost trend rate represents the rate at which health care costs are assumed to increase. The assumed health care cost trend rate used in measuring the benefit obligation in 2017 is 6.75% for pre-age 65 retirees and 7.25% for post-age 65 retirees. These rates are assumed to decrease gradually to the ultimate health care cost trend rate of 4.5% in 2028 for both groups. A one percent increase in this rate would increase the benefit obligation at December 31, 2017, by $0.9 million and would have an immaterial impact on the interest cost for 2017. A one percent decrease in this rate would decrease the benefit obligation at December 31, 2017, by $0.8 million and would have an immaterial impact on the interest cost for 2017. Year Ended December 31, 2017 2016 2015 Assumption Used in Calculations Weighted average discount rate used to determine net periodic postretirement cost (credit) 3.26 % 3.38 % 3.25 % Weighted average discount rate used to determine benefit obligation at measurement date 3.01 % 3.26 % 3.38 % | |
Schedule of Fair Value of Defined Benefit Plan Assets | The fair values of the defined benefit plan’s assets at December 31, 2017, by asset category are as follows: Total Level 1 Level 2 Level 3 Investments, at fair value: Short-term investments $ 36.8 $ 36.8 $ — $ — Derivatives (a) 14.8 — 14.8 Government securities 88.1 — 88.1 — Corporate debt securities 18.3 — 18.3 — Collective investment funds: — Domestic equity (b) 144.4 — 144.4 — Foreign equity (b) 57.5 — 57.5 — Foreign bond (c) 41.8 — 41.8 — Partnerships (d) 35.3 — 35.3 — Hedge fund of funds (e) 1.6 — 1.6 — Total investments, at fair value $ 438.6 $ 36.8 $ 401.8 $ — The fair values of our defined benefit plan’s assets at December 31, 2016, by asset category are as follows: Total Level 1 Level 2 Level 3 Investments, at fair value: Short-term investments $ 34.0 $ 34.0 $ — $ — Derivatives (a) 19.0 19.0 Government securities 88.9 — 88.9 — Corporate debt securities 25.5 — 25.5 — Collective investment funds: Domestic equity (b) 66.7 — 66.7 — Foreign equity (b) 86.0 — 86.0 — Foreign bond (c) 33.3 — 33.3 — Partnerships (d) 32.7 — 32.7 — Hedge fund of funds (e) 30.3 — 30.3 — Total investments, at fair value $ 416.4 $ 34.0 $ 382.4 $ — (a) Funds in this category invest in interest rate swaps to reduce exposure to long-term interest rate risk and to achieve overall investment portfolio objectives. (b) Funds in this category invest in a diversified portfolio of domestic and/or foreign stocks to achieve a long-term rate of return. (c) Funds in this category invest in various types of domestic and/or foreign debt securities to achieve a long-term rate of return while preserving capital. (d) Funds within this category invest in a bond fund partnership which holds various types of domestic debt securities to achieve a long-term rate of return while preserving capital. (e) Funds within this category invest in various underlying hedge funds and are designed to provide superior risk adjusted returns as well as portfolio diversification relative to traditional asset classes. | |
Projected Future Postretirement Benefit Payments and Future Receipts from the Federal Subsidy | The projected future postretirement benefit payments and future receipts from the federal subsidy for each of the next five years and the five-year period following are included in the table below. Years Ending December 31, Payments Receipts 2018 $ 2.5 $ 0.1 2019 2.2 0.1 2020 2.1 0.1 2021 2.0 0.1 2022 1.9 0.1 Next five years $ 7.3 $ 0.3 | |
Defined Benefit Pension Plan [Member] | ||
Schedule of Other Comprehensive (Income) Loss Related to Pension Benefit Plans and Postretirement Benefits | The other comprehensive (income) loss related to pension benefit plans is as follows: Year Ended December 31, 2017 2016 2015 Net actuarial (gain) loss $ (3.0 ) $ 9.5 $ 2.2 Amortization of net actuarial loss (12.8 ) (12.5 ) (13.3 ) Tax expense — 0.1 — Other comprehensive income, net of tax $ (15.8 ) $ (2.9 ) $ (11.1 ) Year Ended December 31, 2017 2016 2015 Assumption Used in Calculations Discount rate used to determine net benefit cost 3.63 % 3.76 % 3.50 % Expected return on plan assets 6.30 % 6.30 % 6.50 % Discount rate used to determine benefit obligations 3.25 % 3.63 % 3.76 % Year Ended December 31, 2017 2016 2015 Net Periodic Pension Cost Interest cost $ 17.2 $ 18.2 $ 23.3 Expected return on plan assets (26.3 ) (25.7 ) (26.6 ) Actuarial loss amortization 12.8 12.5 13.3 Net periodic pension cost $ 3.7 $ 5.0 $ 10.0 | |
Other Postretirement Benefits Plan [Member] | ||
Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefits | The accompanying tables present the amounts and changes in the aggregate benefit obligation and the components of net periodic postretirement benefit cost for U.S. plans. We fund these costs as they become due. Year Ended December 31, 2017 2016 Funded Status of Postretirement Change in Benefit Obligation: At beginning of year $ 21.0 $ 23.2 Interest cost 0.5 0.6 Participant contributions 1.1 1.2 Actuarial gain (0.7 ) (1.4 ) Benefits paid (2.3 ) (2.6 ) At end of year $ 19.6 $ 21.0 Change in Plan Assets: At beginning of year $ — $ — Company contributions 1.2 1.5 Participant contributions 1.1 1.1 Benefits paid (2.3 ) (2.6 ) At end of year — — Funded Status $ (19.6 ) $ (21.0 ) December 31, 2017 2016 Amounts recognized in Consolidated Balance Sheets Current liability $ 2.4 $ 2.6 Noncurrent liability 17.2 18.4 Amounts recognized in Accumulated Other Comprehensive Loss Accumulated other comprehensive income, net of tax of $(9.9) and $(9.9), respectively $ (8.9 ) $ (10.9 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Summary of Performance Based Stock Options | Performance-based option activity under the 2007 SIP and the 2013 SIP for the period was as follows: Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Performance-based options outstanding at December 31, 2017 1,038,147 $ 13.46 3.5 $ — Granted — — — — Exercised (633,606 ) (13.46 ) — — Forfeited or expired (8,358 ) (13.46 ) — — Performance-based options outstanding at September 30, 2018 396,183 $ 13.50 3.4 $ 11.3 Performance-based options exercisable at September 30, 2018 396,183 $ 13.50 3.4 $ 11.3 | Performance-based option activity for the period from December 31, 2014 to December 31, 2017, represents stock options granted under the 2013 HCM SIP. Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Options outstanding at December 31, 2014 1,343,100 $ 13.46 6.3 $ — Granted — — Exercised — — Forfeited or expired (62,232 ) (13.46 ) Options outstanding at December 31, 2015 1,280,868 $ 13.46 5.2 $ — Granted — — Exercised — — Forfeited or expired (52,942 ) (13.46 ) Options outstanding at December 31, 2016 1,227,926 $ 13.46 4.2 $ — Granted — — Exercised (167,202 )(a) (13.46 ) Forfeited or expired (25,077 ) (13.46 ) Options outstanding at December 31, 2017 1,035,647 $ 13.46 3.5 $ — (a) During the year ended December 31, 2017, certain performance-based options were modified and exercised. |
Summary of Term-Based Option Activity | Term-based option activity, including stock options under the 2007 SIP, the 2013 SIP and the 2018 EIP, for the period was as follows: Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Term-based options outstanding at December 31, 2017 10,994,181 $ 16.52 6.9 $ 48.8 Granted 5,140,787 22.84 — — Exercised (1,127,360 ) (13.73 ) — — Forfeited or expired (166,747 ) (17.09 ) — — Term-based options outstanding at September 30, 2018 14,840,861 $ 18.66 7.6 $ 346.8 Term-based options exercisable at September 30, 2018 6,868,950 $ 16.70 5.8 $ 174.0 | Term-based option activity for the period from December 31, 2014 to December 31, 2017, represents stock options granted under the 2013 HCM SIP. As of December 31, 2017, there were 6,819,649 vested options. Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Options outstanding at December 31, 2014 7,588,078 $ 15.98 8.2 $ 13.3 Granted 187,140 17.56 Exercised — — Forfeited or expired (168,060 ) (16.40 ) Options outstanding at December 31, 2015 7,607,158 $ 16.02 7.3 $ 14.1 Granted 2,339,238 16.80 Exercised — — Forfeited or expired (176,626 ) (16.54 ) Options outstanding at December 31, 2016 9,769,770 $ 16.20 7.1 $ 9.9 Granted 2,285,981 17.46 Exercised (595,464 ) (15.14 ) Forfeited or expired (468,606 ) (16.10 ) Options outstanding at December 31, 2017 10,991,681 $ 16.52 6.9 $ 48.8 Options exercisable at December 31, 2017 6,819,649 $ 16.14 5.5 $ 32.9 |
Summary of Restricted Stock Units | Restricted stock units (“RSUs”) activity, including RSUs under the 2013 SIP and the 2018 EIP, for the period was as follows: Shares RSUs outstanding at December 31, 2017 605,990 Granted 159,323 Shares issued upon vesting of RSUs (105,990 ) Forfeited or canceled — RSUs outstanding at September 30, 2018 659,323 RSUs releasable at September 30, 2018 125,000 | Restricted stock units (“RSUs”) activity for the period from December 31, 2014 to December 31, 2017, represents restricted stock units granted under the 2013 HCM SIP. Shares RSUs outstanding at December 31, 2014 — Granted 228,572 Shares issued upon vesting of RSUs — Forfeited or canceled — RSUs outstanding at December 31, 2015 228,572 Granted 29,800 Shares issued upon vesting of RSUs (76,192 ) Forfeited or canceled — RSUs outstanding at December 31, 2016 182,180 Granted 500,000 Shares issued upon vesting of RSUs (76,190 ) Forfeited or canceled — RSUs outstanding at December 31, 2017 605,990 |
Schedule of Other Term-Based Option Activity | Other information pertaining to term-based options is as follows: Year Ended December 31, 2017 2016 2015 Weighted average grant date fair value per share $ 5.88 $ 5.74 $ 5.68 | |
Schedule of Other Term-Based Option Activity | The fair value of the term-based stock options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, 2017 2016 2015 Expected volatility 30.0 % 30.0 % 33.0 % Expected dividend rate — — — Risk-free interest rate 2.3 % 1.9 % 2.1 % | |
Schedule of Other Class D Stock Options | Other information pertaining to restricted stock units is as follows: Year Ended December 31, 2017 2016 2015 Weighted average grant date fair value per share $ 17.26 $ 17.40 $ 17.50 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) were as follows: Foreign Currency Translation Adjustment Unrealized Gain (Loss) from Invested Customer Trust Funds Pension Liability Adjustment Total Balance as of December 31, 2017 $ (160.6 ) $ (9.0 ) $ (142.5 ) $ (312.1 ) Other comprehensive income (loss) before income taxes and reclassifications (16.2 ) (24.5 ) (0.3 ) (41.0 ) Income tax benefit — 2.3 — 2.3 Reclassifications to earnings — — 9.0 9.0 Other comprehensive income (loss) attributable to Ceridian (16.2 ) (22.2 ) 8.7 (29.7 ) LifeWorks Disposition 0.7 — — 0.7 Balance as of September 30, 2018 $ (176.1 ) $ (31.2 ) $ (133.8 ) $ (341.1 ) | The components of accumulated other comprehensive income (loss) were as follows: Foreign Currency Translation Adjustment Unrealized Gain (Loss) from Invested Customer Trust Funds Pension Liability Adjustment Total Balance as of December 31, 2015 $ (224.8 ) $ 12.9 $ (167.3 ) $ (379.2 ) Other comprehensive income (loss) before income taxes and reclassifications 8.0 (10.2 ) (7.8 ) (10.0 ) Income tax benefit (expense) — 2.0 (0.1 ) 1.9 Sale of UK Business, net of tax 16.9 — 9.0 25.9 Reclassifications to earnings — — 9.9 9.9 Other comprehensive income (loss) attributable to Ceridian 24.9 (8.2 ) 11.0 27.7 Balance as of December 31, 2016 (199.9 ) 4.7 (156.3 ) (351.5 ) Other comprehensive income (loss) before income taxes and reclassifications 39.3 (17.3 ) 3.7 25.7 Income tax benefit — 3.6 — 3.6 Reclassifications to earnings — — 10.1 10.1 Other comprehensive income (loss) attributable to Ceridian 39.3 (13.7 ) 13.8 39.4 Balance as of December 31, 2017 $ (160.6 ) $ (9.0 ) $ (142.5 ) $ (312.1 ) |
Financial Data by Segment and_2
Financial Data by Segment and Geographic Area (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | ||
Schedule of Revenue by Solution | Revenue by solution is as follows: Nine Months Ended September 30, 2018 2017 Cloud $ 386.0 $ 288.0 Bureau 160.1 200.4 Total revenue $ 546.1 $ 488.4 | Revenue by solution is as follows: Year Ended December 31, 2017 2016 2015 Cloud $ 404.3 $ 297.8 $ 225.2 Bureau 266.5 325.6 386.4 Total revenue $ 670.8 $ 623.4 $ 611.6 |
Schedule of Revenue by country | Revenue by country is as follows: Year Ended December 31, 2017 2016 2015 United States $ 465.2 $ 432.7 $ 420.0 Canada 203.4 189.0 190.8 Other 2.2 1.7 0.8 Total revenue $ 670.8 $ 623.4 $ 611.6 | |
Schedule of Long-Lived Assets | Long-lived assets by country is as follows: December 31, 2017 2016 United States $ 1,786.1 $ 1,788.3 Canada 480.6 450.6 Other 2.8 2.4 Total long-lived assets $ 2,269.5 $ 2,241.3 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Schedule of Numerators and Denominators of Basic and Diluted Net Loss per Share Computations | The numerators and denominators of the basic and diluted net income (loss) per share computations are calculated as follows: Nine Months Ended 2018 2017 Numerator: Net income (loss) attributable to Ceridian $ (63.2 ) $ (54.2 ) Less: Loss from discontinued operations (14.8 ) (2.4 ) Net income (loss) from continuing operations attributable to Ceridian (48.4 ) (51.8 ) Less: Senior Preferred Stock dividends declared 7.7 15.3 Net income (loss) from continuing operations attributable to Ceridian available to common stockholders $ (56.1 ) $ (67.1 ) Denominator: Weighted-average shares outstanding – basic and diluted 105,730,178 65,181,373 Net income (loss) per share from continuing operations attributable to Ceridian—basic $ (0.53 ) $ (1.03 ) Net loss per share from discontinued operations—basic $ (0.14 ) $ (0.04 ) Net income (loss) per share attributable to Ceridian—basic $ (0.67 ) $ (1.07 ) Net income (loss) per share from continuing operations attributable to Ceridian—diluted $ (0.53 ) $ (1.03 ) Net loss per share from discontinued operations—diluted $ (0.14 ) $ (0.04 ) Net income (loss) per share attributable to Ceridian— diluted $ (0.67 ) $ (1.07 ) | The numerators and denominators of the basic and diluted net loss per share computations are calculated as follows: Year Ended December 31, 2017 2016 2015 Numerator: Net loss attributable to Ceridian $ (9.2 ) $ (92.9 ) $ (104.7 ) Less: Income (loss) from discontinued operations (6.0 ) 12.5 3.7 Net loss from continuing operations attributable to Ceridian (3.2 ) (105.4 ) (108.4 ) Less: Senior Preferred Stock dividends declared 20.5 14.1 — Net loss from continuing operations attributable to Ceridian available to common stockholders $ (23.7 ) $ (119.5 ) $ (108.4 ) Denominator: Weighted-average shares outstanding—basic 65,204,960 64,988,338 64,924,845 Weighted-average shares outstanding—diluted 65,204,960 64,988,338 64,924,845 Net loss per share from continuing operations attributable to Ceridian—basic and diluted $ (0.36 ) $ (1.84 ) $ (1.67 ) Net (loss) income per share from discontinued operations—basic and diluted $ (0.10 ) $ 0.19 $ 0.06 Net loss per share attributable to Ceridian—basic and diluted $ (0.46 ) $ (1.65 ) $ (1.61 ) |
Schedule of Potentially Dilutive Shares Excluded from Computation of Diluted Net Loss per Share | The following potentially dilutive weighted-average shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive: Nine Months Ended September 30, 2018 2017 Senior convertible preferred stock 7,358,603 16,802,144 Junior convertible preferred stock 25,508,456 58,244,308 Stock options 14,127,557 11,349,251 Restricted stock units 561,836 478,325 | The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive: Year Ended December 31, 2017 2016 2015 Senior convertible preferred stock 16,802,144 12,601,608 — Junior convertible preferred stock 58,244,308 58,244,308 58,244,308 Stock options 10,201,105 8,423,124 7,468,081 Unvested RSUs 451,190 155,692 190,477 |
Trade and Other Receivables, _2
Trade and Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Trade and Other Receivables, Net | The balance in trade and other receivables, net, is comprised of the following: December 31, 2017 2016 Trade receivables from customers $ 67.2 $ 71.2 Interest receivable from invested customer trust funds 1.7 0.5 Other 3.7 5.3 Total gross receivables 72.6 77.0 Less: reserve for sales adjustments (4.7 ) (4.1 ) Less: allowance for doubtful accounts (1.3 ) (1.8 ) Trade and other receivables, net $ 66.6 $ 71.1 |
Activity Related to Allowance for Doubtful Accounts | The activity related to the allowance for doubtful accounts is as follows for each of the periods: Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 1.8 $ 1.1 $ 1.1 Provision for doubtful accounts 0.2 1.1 0.6 Charge-offs, net of recoveries (0.7 ) (0.4 ) (0.6 ) Balance at end of year $ 1.3 $ 1.8 $ 1.1 |
Supplementary Data to Stateme_2
Supplementary Data to Statements of Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Supplementary Data to Statements of Operations | Year Ended December 31, 2017 2016 2015 Other Expense, Net Asset impairment $ — $ 10.4 $ 23.0 Environmental reserve — 5.9 — Foreign currency translation expense (income) 7.3 (3.4 ) 4.8 Total other expense, net $ 7.3 $ 12.9 $ 27.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes | Year Ended December 31, 2017 2016 2015 Components of Earnings and Taxes from Operations (Loss) Income Before Income Taxes: U.S. $ (83.4 ) $ (163.4 ) $ (147.3 ) International 29.3 64.8 43.2 Total $ (54.1 ) $ (98.6 ) $ (104.1 ) Income Tax Expense (Benefit): Current: U.S. $ (0.3 ) $ (0.4 ) $ (0.2 ) State and local 0.1 0.2 0.1 International 12.9 15.2 15.1 Total current income tax expense 12.7 15.0 15.0 Deferred: U.S. (60.3 ) (15.7 ) (10.4 ) State and local 0.8 (0.1 ) (1.8 ) International (2.8 ) 7.5 1.5 Total deferred income tax (benefit) expense (62.3 ) (8.3 ) (10.7 ) Total income tax (benefit) expense $ (49.6 ) $ 6.7 $ 4.3 |
Reconciliation of U.S. Federal Statutory Rate | Year Ended December 31, 2017 2016 2015 Effective Rate Reconciliation U.S. statutory rate (35.0 )% (35.0 )% (35.0 )% Change in valuation allowance (116.9 ) (5.4 ) 14.9 State income taxes, net of federal benefit (5.2 ) (1.2 ) (0.7 ) Share-based compensation 8.3 2.6 2.7 International tax rate differential (6.7 ) (6.4 ) (5.5 ) Foreign dividend income 48.1 1.0 12.4 Unremitted foreign earnings (35.6 ) 22.0 — Foreign capital gain income — — 3.6 Reserve for tax contingencies — (0.2 ) 0.1 Expiration of un-utilized tax credits 1.5 — 10.4 Unrealized gain on investments — 30.7 — Change in tax rate 52.4 — — Other (2.6 ) (1.5 ) 1.2 Income tax provision (91.7 )% 6.6 % 4.1 % |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2017 2016 Tax Effect of Items That Comprise a Significant Portion of the Net Deferred Tax Asset and Deferred Tax Liability Deferred Tax Asset: Employment related accruals $ 51.0 $ 89.7 Foreign tax credit carryover and other credit carryovers 0.2 1.1 Net operating loss carryforwards 100.3 133.1 Total gross deferred tax asset 151.5 223.9 Valuation allowance (90.7 ) (159.9 ) Total deferred tax asset $ 60.8 $ 64.0 Deferred Tax Liability: Intangibles $ (65.7 ) $ (101.7 ) Unremitted foreign earnings — (20.9 ) Unrealized gain on investment (22.2 ) (33.5 ) Other (5.0 ) (5.5 ) Total deferred tax liability (92.9 ) (161.6 ) Net deferred tax liability $ (32.1 ) $ (97.6 ) December 31, 2017 2016 Net Deferred Tax by Geography U.S. $ (18.4 ) $ (78.0 ) International (13.7 ) (19.6 ) Total $ (32.1 ) $ (97.6 ) |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity for unrecognized tax benefits: Year Ended December 31, 2017 2016 Federal, State and Foreign Tax Beginning unrecognized tax balance $ 1.4 $ 1.7 Increase prior period positions 0.2 0.1 Increase current period positions 0.1 0.2 Decrease prior period positions — (0.3 ) Decrease current period positions — (0.1 ) Statutes expiring (0.2 ) (0.2 ) Ending unrecognized tax benefits $ 1.5 $ 1.4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Rental Expense and Sublease Income Table Text Block | Our rental expense and sublease income were as follows: Year Ended December 31, 2017 2016 2015 Rental Expense, Net Rental expense $ 17.0 $ 16.8 $ 18.6 Sublease rental income (4.2 ) (3.5 ) (2.3 ) Net rental expense $ 12.8 $ 13.3 $ 16.3 |
Schedule of Future Minimum Rental Payments for Operating Leases | Our future minimum noncancellable lease payments, net, on existing operating leases at December 31, 2017, which have an initial term of more than one year, are as follows: Years Ending December 31, Amount 2018 $ 10.5 2019 10.6 2020 8.9 2021 6.3 2022 5.4 Thereafter 4.3 Total $ 46.0 |
Organization - Additional Infor
Organization - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Mar. 30, 2016 | Apr. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 15, 2016 | Mar. 01, 2016 |
Common stock shares issued | 24,150,000 | 138,049,718 | 65,285,962 | 65,001,037 | |||
Proceeds from issuance of IPO and private placement | $ 631.3 | ||||||
Fund raised with equity financing transaction | $ 150.2 | ||||||
Contributed fund by parent | 75 | ||||||
Commitments on remaining funds | $ 75.2 | ||||||
Proceeds from stock sale | $ 93.2 | ||||||
IPO [Member] | |||||||
Shares issued | 21,000,000 | ||||||
Shares issued, price per share | $ 22 | ||||||
Private Placement [Member] | |||||||
Shares issued | 4,545,455 | ||||||
Shares issued, price per share | $ 22 | ||||||
Underwriter [Member] | |||||||
Stock option exercised | 3,150,000 | ||||||
Foundation Holding LLC [Member] | |||||||
Ownership Percentage By Parent | 100.00% | 100.00% | |||||
Ceridian Holding and Ceridian Holding II [Member] | Sponsors [Member] | |||||||
Ownership percentage by sponsors | 96.00% | 96.00% | |||||
Ceridian Holding and Ceridian Holding II [Member] | Other Individuals [Member] | |||||||
Minority interest ownership percentage by other | 4.00% | 4.00% | |||||
Common Class A [Member] | |||||||
Common stock shares issued | 10,063,749 | ||||||
Common Class B [Member] | |||||||
Common stock shares issued | 10,063,749 |
Organization - Use of the Proce
Organization - Use of the Proceeds from the IP (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidation, Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Gross proceeds | $ 631.3 | ||||
Underwriters' discounts and commissions | 29.2 | ||||
IPO-related expenses | 11.8 | ||||
Redemption of 11% Senior Notes due 2021 (Note 8) | 1,132.3 | $ 25.9 | $ 25.9 | $ 11.8 | $ 7 |
Sponsor management termination fee | 11.3 | ||||
Debt refinancing expenses | 11.4 | ||||
Cash to balance sheet | 68.6 | ||||
Senior Notes [Member] | 11% Senior Note [Member] | |||||
Consolidation, Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Redemption of 11% Senior Notes due 2021 (Note 8) | 475 | ||||
Call premium on redemption of 11% Senior Notes due 2021 | 13.1 | ||||
Interest on redemption of 11% Senior Notes due 2021 | $ 10.9 |
Organization - Use of the Pro_2
Organization - Use of the Proceeds from the IP (Parenthetical) (Detail) | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Senior Notes [Member] | |||
Consolidation, Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Interest rate on debt | 11.00% | 11.00% | 11.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | Apr. 10, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Stockholders' Equity, Reverse Stock Split | 0.5 | ||||||||
Accumulated deficit | $ (348.2) | $ (318.5) | $ (419.1) | $ (348.2) | $ (318.5) | ||||
Allowance for Doubtful Accounts | 1.3 | 1.8 | 1.3 | 1.8 | $ 1.1 | $ 1.1 | |||
Reserve for sale | 4.7 | 4.1 | 4.7 | 4.1 | |||||
Interest on property plant and equipment | 0.6 | 0.4 | |||||||
Net of accumulated amortization | 56.4 | 46.5 | |||||||
Amortization of software | $ 14 | $ 13.9 | 18.5 | 18.4 | 18.7 | ||||
Research and Development Expense | 19 | 13 | 11.2 | ||||||
Advertising Expense | 5.6 | 5.9 | 5.4 | ||||||
Restatement Adjustment [Member] | |||||||||
Non cash income tax expense | $ 12.7 | ||||||||
Accumulated deficit and other liabilities | 12.7 | 12.7 | |||||||
Accumulated deficit | (12.7) | $ (12.7) | (12.7) | $ (12.7) | |||||
Computer Software, Intangible Asset [Member] | |||||||||
Amortization of software | $ 23.6 | $ 20.9 | $ 19.4 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Impact of Adoption of ASC 606 on Revenue (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Recurring services | $ 480.8 | $ 438.2 | $ 598.5 | $ 558.5 | $ 559.3 |
Professional services and other | 65.3 | 50.2 | 72.3 | 64.9 | 52.3 |
Total revenue | 546.1 | 488.4 | 670.8 | 623.4 | 611.6 |
Operating profit (loss) | 31.3 | 16.9 | $ 33 | $ (11.2) | $ (16.3) |
Accounting Standards Update 2014-09 [Member] | |||||
Recurring services | 460.4 | 419.8 | |||
Professional services and other | 85.5 | 72.7 | |||
Total revenue | 545.9 | 492.5 | |||
Operating profit (loss) | 36.9 | 25.7 | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Recurring services | (20.4) | (18.4) | |||
Professional services and other | 20.2 | 22.5 | |||
Total revenue | (0.2) | 4.1 | |||
Operating profit (loss) | $ 5.6 | $ 8.8 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | Jun. 15, 2016 | Sep. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2013 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2018 |
Net (loss) income attributable to noncontrolling interest | $ (0.5) | $ (0.4) | $ (1.3) | $ 0.1 | |||||||
Additional paid in capital | 2,297.3 | 1,565.4 | 1,546.8 | ||||||||
Other accrued expenses | 19.2 | 15 | 22.1 | ||||||||
Proceeds from discontinued business | 25.9 | ||||||||||
Goodwill | 1,949.8 | 1,961 | 1,933.1 | ||||||||
Proceeds from divesture of business | $ 0.9 | ||||||||||
LifeWorks [Member] | |||||||||||
Additional paid in capital | $ 95.7 | ||||||||||
Consumer Directed Benefit Services [Member] | |||||||||||
Proceeds from divesture of business | $ 1.5 | $ 15 | |||||||||
Divested Benefits Continuation Businesses [Member] | |||||||||||
Other accrued expenses | $ 0.2 | 0.3 | |||||||||
Goodwill | 22.5 | ||||||||||
Proceeds from divesture of business | $ 21 | $ 0.4 | |||||||||
Long lived assets written off | 8.1 | ||||||||||
Discontinued Operations [Member] | |||||||||||
Proceeds from divesture of business | $ 25.9 | $ 10 | |||||||||
Discontinued Operations [Member] | UNITED KINGDOM | |||||||||||
Proceeds from discontinued business | $ 93.2 | ||||||||||
Goodwill | $ 23.8 |
Discontinued Operations - Suppl
Discontinued Operations - Supplemental Disclosure of Discontinued Operation (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Loss) income from discontinued operations, net of income taxes | $ (14.8) | $ (2.4) | $ (6) | $ 12.5 | $ 3.7 |
LifeWorks [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net revenues | 28.3 | 59.9 | 79.9 | 80.8 | 82.3 |
Income (loss) from operations before income taxes | (0.9) | 1.9 | (0.4) | 7.1 | 23.8 |
Income tax benefit (expense) | (13.9) | (3.9) | (4.9) | (11.1) | (4.3) |
(Loss) income from discontinued operations, net of income taxes | (14.8) | (2) | (5.3) | (4) | 19.5 |
Depreciation and amortization | $ 1.4 | 3 | 4.1 | 4.1 | 3.8 |
Capital expenditures | 0.2 | 0.2 | 0.3 | 0.4 | |
UK Business [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net revenues | 37 | 79.2 | |||
Income (loss) from operations before income taxes | 0.5 | 2.3 | |||
(Loss) gain on sale of businesses | (0.7) | (1) | 5.9 | ||
Income tax benefit (expense) | 0.2 | (1.4) | |||
(Loss) income from discontinued operations, net of income taxes | (0.7) | (1) | 6.6 | 0.9 | |
Depreciation and amortization | 1.3 | 3.3 | |||
Capital expenditures | 0.7 | 2.4 | |||
Divested Benefits Continuation Businesses [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net revenues | 4.8 | 40 | |||
Income (loss) from operations before income taxes | (0.8) | 12.2 | |||
(Loss) gain on sale of businesses | 0.5 | 0.5 | 21 | (28.9) | |
Income tax benefit (expense) | (0.2) | (0.2) | (10.3) | ||
(Loss) income from discontinued operations, net of income taxes | $ 0.3 | $ 0.3 | $ 9.9 | (16.7) | |
Depreciation and amortization | 0.4 | ||||
Capital expenditures | $ 0.5 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Assets and Liabilities of Discontinued Operations (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
LifeWorks [Member] | ||
Assets: | ||
Cash and equivalents | $ 5.3 | $ 10.6 |
Trade and other receivables, net | 13.3 | 7 |
Prepaid expenses | 1.5 | 1.7 |
Property, plant and equipment, net | 1.8 | 2.4 |
Other intangible assets, net | 5.9 | 9.2 |
Goodwill | 126.3 | 124.9 |
Other assets | 2.1 | 0.2 |
Assets of discontinued operations | 156.2 | 156 |
Liabilities: | ||
Accounts payable | 4.4 | 5.7 |
Other liabilities | 10.8 | 10.4 |
Liabilities of discontinued operations | 19.3 | 19.1 |
Deferred revenue | 2.8 | 1.9 |
Employee compensation and benefits | 1.3 | 1.1 |
Divested Benefits Continuation Businesses [Member] | ||
Assets: | ||
Other assets | 0 | 0.1 |
Assets of discontinued operations | 0 | 0.1 |
Liabilities: | ||
Accounts payable | 0 | 0.4 |
Other liabilities | 0.3 | 0.5 |
Liabilities of discontinued operations | 0.3 | $ 0.9 |
Previously Reported [Member] | LifeWorks [Member] | ||
Assets: | ||
Cash and equivalents | 5.4 | |
Other assets | 2 | |
Liabilities: | ||
Other liabilities | 10.9 | |
Employee compensation and benefits | $ 1.2 |
Fair Value Measurements - Asset
Fair Value Measurements - Asset and Liability Measured at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | ||||
Available for sale customer trust funds assets | $ 1,720.1 | $ 1,782.1 | $ 1,755.4 | |
Total assets measured at fair value | 1,720.1 | 1,782.1 | 1,755.4 | |
Fair Value, Inputs, Level 2 [Member] | ||||
Assets | ||||
Available for sale customer trust funds assets | [1] | 1,720.1 | 1,782.1 | 1,755.4 |
Total assets measured at fair value | $ 1,720.1 | $ 1,782.1 | $ 1,755.4 | |
[1] | Fair value is based on inputs that are observable for the asset or liability, other than quoted prices. |
Customer Trust Fund - Additiona
Customer Trust Fund - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment income from invested customer trust fund included in revenue | $ 49.6 | $ 34.2 | $ 46.5 | $ 39.1 | $ 36.9 |
Maturities ranging from one to 120 days [Member] | |||||
Average customer trust funds held in liquidity portfolios, Percentage | 46.00% | 46.00% | |||
Maturities ranging from 120 days to 10 years [Member] | |||||
Average customer trust funds held in fixed income portfolios, Percentage | 54.00% | 54.00% |
Customer Trust Fund - Investmen
Customer Trust Fund - Investment of Customer Trust Fund (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Line Items] | |||
Money market securities, investments carried at cost and other cash equivalents, Fair Value | $ 1,697.9 | $ 2,309.3 | $ 1,941.9 |
Invested customer trust funds, Fair Value | 3,418 | 4,091.4 | 3,697.3 |
Trust receivables, Fair Value | 8.6 | 8.3 | 5.5 |
Total customer trust funds, Fair Value | 3,426.6 | 4,099.7 | 3,702.8 |
Money market securities, investments carried at cost and other cash equivalents, Amortized Cost | 1,697.9 | 2,309.3 | 1,941.9 |
Invested customer trust funds, Amortized Cost | 3,448.4 | 4,097.2 | 3,686.8 |
Trust receivables, Amortized Cost | 8.6 | 8.3 | 5.5 |
Total customer trust funds, Amortized Cost | 3,457 | 4,105.5 | 3,692.3 |
Amortized Cost | 1,750.5 | 1,787.9 | 1,744.9 |
Gross Unrealized Gain | 2.3 | 7.5 | 17.3 |
Gross Unrealized Loss | (32.7) | (13.3) | (6.8) |
Fair value | 1,720.1 | 1,782.1 | 1,755.4 |
U.S. Government and Agencies Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 548.6 | 584.6 | 607.7 |
Gross Unrealized Gain | 0.1 | 0.9 | |
Gross Unrealized Loss | (19.1) | (7.1) | (4.7) |
Fair value | 529.5 | 577.6 | 603.9 |
Canadian and Provincial Government Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 414.6 | 418.2 | 380 |
Gross Unrealized Gain | 2.1 | 6.6 | 12.9 |
Gross Unrealized Loss | (2.7) | (1.5) | (0.1) |
Fair value | 414 | 423.3 | 392.8 |
Corporate Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 513.1 | 472.3 | 511.7 |
Gross Unrealized Gain | 0.2 | 0.8 | 3.1 |
Gross Unrealized Loss | (6.8) | (2.5) | (1.2) |
Fair value | 506.5 | 470.6 | 513.6 |
Asset-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 249.6 | 280.8 | 192.2 |
Gross Unrealized Gain | 0.4 | ||
Gross Unrealized Loss | (3.6) | (1.8) | (0.3) |
Fair value | 246 | 279 | 192.3 |
Mortgage-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 9.7 | 15 | 28.7 |
Gross Unrealized Loss | (0.3) | (0.2) | (0.2) |
Fair value | 9.4 | 14.8 | 28.5 |
Other Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 14.9 | 17 | 24.6 |
Gross Unrealized Loss | (0.2) | (0.2) | (0.3) |
Fair value | $ 14.7 | $ 16.8 | $ 24.3 |
Customer Trust Fund - Gross Unr
Customer Trust Fund - Gross Unrealized Losses and Related Fair Value of Investment (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Unrealized Losses | $ (13,800) | $ (8,900) |
Less than 12 months, Fair Value | 718,500 | 1,080,400 |
12 months or more, Unrealized Losses | (18,900) | (4,400) |
12 months or more, Fair Value | 663,700 | 194,900 |
Total, Unrealized Losses | (32,700) | (13,300) |
Total, Fair Value | 1,382,200 | 1,275,300 |
U.S. Government and Agencies Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Unrealized Losses | (8,000) | (3,600) |
Less than 12 months, Fair Value | 257,900 | 436,700 |
12 months or more, Unrealized Losses | (11,100) | (3,500) |
12 months or more, Fair Value | 268,700 | 113,500 |
Total, Unrealized Losses | (19,100) | (7,100) |
Total, Fair Value | 526,600 | 550,200 |
Canadian and Provincial Government Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Unrealized Losses | (900) | (1,500) |
Less than 12 months, Fair Value | 86,900 | 133,400 |
12 months or more, Unrealized Losses | (1,800) | |
12 months or more, Fair Value | 100,800 | |
Total, Unrealized Losses | (2,700) | (1,500) |
Total, Fair Value | 187,700 | 133,400 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Unrealized Losses | (3,700) | (2,000) |
Less than 12 months, Fair Value | 271,100 | 264,200 |
12 months or more, Unrealized Losses | (3,100) | (500) |
12 months or more, Fair Value | 145,900 | 41,400 |
Total, Unrealized Losses | (6,800) | (2,500) |
Total, Fair Value | 417,000 | 305,600 |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Unrealized Losses | (1,100) | (1,700) |
Less than 12 months, Fair Value | 97,400 | 239,600 |
12 months or more, Unrealized Losses | (2,500) | (100) |
12 months or more, Fair Value | 129,800 | 17,000 |
Total, Unrealized Losses | (3,600) | (1,800) |
Total, Fair Value | 227,200 | 256,600 |
Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Unrealized Losses | (50) | (100) |
Less than 12 months, Fair Value | 1,200 | 4,100 |
12 months or more, Unrealized Losses | (300) | (200) |
12 months or more, Fair Value | 8,000 | 10,400 |
Total, Unrealized Losses | (300) | (300) |
Total, Fair Value | 9,200 | 14,500 |
Other Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Unrealized Losses | (100) | (50) |
Less than 12 months, Fair Value | 4,000 | 2,400 |
12 months or more, Unrealized Losses | (100) | (100) |
12 months or more, Fair Value | 10,500 | 12,600 |
Total, Unrealized Losses | (200) | (100) |
Total, Fair Value | $ 14,500 | $ 15,000 |
Customer Trust Fund - Gross U_2
Customer Trust Fund - Gross Unrealized Losses and Related Fair Value of Investment (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized losses, less than 12 months | $ (13,800) | $ (8,900) |
Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized losses, less than 12 months | (50) | (100) |
Other Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized losses, less than 12 months | $ (100) | $ (50) |
Customer Trust Fund - Amortized
Customer Trust Fund - Amortized Cost and Fair Value of Investment Security Available for Sale (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | |||
Due in one year or less, Cost | $ 2,024.4 | $ 2,761.6 | |
Due in one to three years, Cost | 565.6 | 518.3 | |
Due in three to five years, Cost | 565.5 | 528.8 | |
Due after five years, Cost | 292.9 | 288.5 | |
Invested customer trust funds, Cost | 3,448.4 | 4,097.2 | $ 3,686.8 |
Due in one year or less, Fair Value | 2,023.9 | 2,762 | |
Due in one to three years, Fair Value | 556.5 | 648.8 | |
Due in three to five years, Fair Value | 557.6 | 473.9 | |
Due after five years, Fair Value | 280 | 206.7 | |
Invested customer trust funds, Fair Value | $ 3,418 | $ 4,091.4 | $ 3,697.3 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | $ 384.6 | $ 361.5 | $ 308 |
Accumulated depreciation | (284) | (259.5) | (223.5) |
Property, plant, and equipment, net | 100.6 | 102 | 84.5 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 7.5 | 7.5 | 7.5 |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 218.5 | 197.4 | 162.1 |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 118.8 | 120.3 | 102.4 |
Buildings and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | $ 39.8 | $ 36.3 | $ 36 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation expense | $ 28.4 | $ 25.8 | $ 35.3 | $ 34.8 | $ 33.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||
Balance | $ 1,961 | $ 1,933.1 | |
Translation | (11.2) | 27.9 | |
Balance | 1,949.8 | 1,961 | $ 1,933.1 |
HCM [Member] | |||
Goodwill [Line Items] | |||
Balance | $ 1,961 | 1,933.1 | 2,008.5 |
Formation of Joint Venture Company | (87.7) | ||
Translation | 27.9 | 12.3 | |
Balance | 1,961 | $ 1,933.1 | |
Tax-deductible goodwill | $ 12.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Other Intangible Asset (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 536.9 | $ 539.8 | $ 532.3 |
Accumulated Amortization | (344.6) | (333.3) | (308.6) |
Net | 192.3 | 206.5 | 223.7 |
Customer Lists and Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 208.6 | 210.1 | 206.2 |
Accumulated Amortization | (188.8) | (177) | (156.6) |
Net | $ 19.8 | $ 33.1 | $ 49.6 |
Customer Lists and Relationships [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life Range (Years) | 5 years | 5 years | 5 years |
Customer Lists and Relationships [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life Range (Years) | 15 years | 15 years | 15 years |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 173.9 | $ 174.1 | $ 173.6 |
Accumulated Amortization | (2) | (2.1) | (1.9) |
Net | 171.9 | 172 | 171.7 |
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 154.4 | 155.6 | 152.5 |
Accumulated Amortization | (153.8) | (154.2) | (150.1) |
Net | $ 0.6 | $ 1.4 | $ 2.4 |
Technology [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life Range (Years) | 2 years | 2 years | 2 years |
Technology [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life Range (Years) | 7 years | 7 years | 7 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortization expense | $ 14,000,000 | $ 13,900,000 | $ 18,500,000 | $ 18,400,000 | $ 18,700,000 | |
Trade Names [Member] | ||||||
Impairment indicated | $ 10,200,000 | |||||
LifeWorks [Member] | ||||||
Impairment indicated | $ 0 |
Debt - Schedule of Debt Obligat
Debt - Schedule of Debt Obligations (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Total debt | $ 680 | $ 1,132.3 | $ 1,158.2 |
Less unamortized discount on Term Debt | 1.7 | 0.9 | 1.1 |
Less unamortized debt issuance costs on Senior Notes and Term Debt | 6.5 | 11.6 | 15 |
Less current portion of long-term debt | 6.8 | 2.3 | |
Long-term debt, less current portion | 665 | 1,119.8 | 1,139.8 |
Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | $ 680 | 657.3 | 683.2 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | $ 475 | $ 475 |
Debt - Schedule of Debt Oblig_2
Debt - Schedule of Debt Obligations (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 14, 2014 | Aug. 06, 2014 |
Term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt | 5.50% | 5.10% | 4.50% | ||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt | 11.00% | 11.00% | 11.00% | ||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Available capacity | $ 300 | $ 130 | $ 130 | $ 130 | $ 130 |
Revolving Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Available capacity | $ 2.7 | 2.9 | $ 7.7 | ||
Revolving Credit Facility [Member] | Previously Reported [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Available capacity | $ 8.4 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Apr. 30, 2018USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($) | Nov. 14, 2014USD ($) | Aug. 06, 2014USD ($) | Oct. 01, 2013USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Interest rate description | The Ceridian Term Debt bears an interest rate of LIBOR plus 3.5%, subject to a 1.0% LIBOR floor. | |||||||||||||
Loss on debt extinguishment | $ (25.7) | |||||||||||||
Capitalization of financing costs | 3.6 | |||||||||||||
Fair value of our indebtedness | $ 1,154.1 | $ 1,166.9 | $ 680.9 | $ 1,154.1 | ||||||||||
Debt instrument, covenant description | The credit conditions allowing for transition to a stand-alone Ceridian credit facility were measured, in part, upon EBITDA, with certain adjustments as set forth in the credit documents ("Credit Facility EBITDA"). Ceridian was required to meet (i) a secured debt to Credit Facility EBITDA ratio less than or equal to 4.0 to 1.0 and (ii) a total leverage to Credit Facility EBITDA ratio less than or equal to 6.25 to 1.0. | |||||||||||||
Principal payments | 0.25% | 0.25% | 0.25% | |||||||||||
Proceeds from sale of UK Business | $ 0.9 | |||||||||||||
Term debt, unamortized deferred financing cost | $ 5.4 | 7.3 | $ 5.4 | |||||||||||
Senior note, amortised interest rate | 4.80% | |||||||||||||
Discontinued Operations [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from sale of UK Business | $ 25.9 | $ 10 | ||||||||||||
Canada [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Issuance of letters of credit | $ 7 | $ 7 | ||||||||||||
Letters of credit outstanding | $ 5.6 | $ 5.2 | $ 5.6 | $ 7 | $ 7 | |||||||||
Term Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument principal amount | $ 702 | |||||||||||||
Term loan debt maturity period | 2020-09 | 2020-09 | ||||||||||||
Term debt final mandatory principal pre-payments | $ 0.3 | |||||||||||||
Debt instrument interest rate stated percentage | 5.10% | 4.50% | 5.50% | 5.10% | 5.10% | 4.50% | ||||||||
Senior Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument principal amount | $ 475 | |||||||||||||
Loss on debt extinguishment | $ (18.6) | |||||||||||||
Debt instrument interest rate stated percentage | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | ||||||||
Senior note, amortised interest rate | 11.45% | |||||||||||||
Decrease in redemption price of senior note | 108.25% | |||||||||||||
Senior note redemption date | Mar. 15, 2019 | |||||||||||||
Senior note, unamortized deferred financing cost | $ 6.2 | $ 7.7 | ||||||||||||
2018 Term Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument principal amount | $ 680 | |||||||||||||
Term loan debt maturity period | 2025-04 | |||||||||||||
Interest rate description | Interest rate is reduced to LIBOR plus 3.00% | |||||||||||||
Term Loan B1 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument principal amount | $ 673 | |||||||||||||
Term Loan B2 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument principal amount | 702 | |||||||||||||
Previously Reported [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loss on debt extinguishment | $ (7.1) | |||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Available capacity for letters of credit | $ 130 | $ 130 | $ 300 | $ 130 | $ 130 | $ 130 | ||||||||
Line of credit maturity period | 2019-09 | 2019-09 | ||||||||||||
Debt instrument, covenant description | The Ceridian Senior Secured Credit Facility documents contain a requirement that Ceridian maintain a ratio of adjusted first lien debt to Credit Facility EBITDA below specified levels on a quarterly basis; however, such requirement is applicable only if more than 35% of the Ceridian Revolving Credit Facility is drawn. As of December 31, 2017, no portion of the Ceridian Revolving Credit Facility was drawn. | |||||||||||||
2018 Revolving Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Available capacity for letters of credit | $ 300 | |||||||||||||
Line of credit maturity period | Apr. 30, 2023 | |||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, variable interest rate | 3.50% | |||||||||||||
LIBOR, floor rate | 1.00% |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Payments and Maturities of Indebtedness (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | |||
2,018 | $ 1.7 | ||
2,018 | $ 0 | ||
2,019 | 6.8 | ||
2,020 | 6.8 | 657.3 | |
2,021 | 6.8 | 475 | |
2,022 | 6.8 | ||
Thereafter | 651.1 | ||
Total debt | $ 680 | $ 1,132.3 | $ 1,158.2 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Cost for Defined Benefit Pension Plan and Other Postretirement Benefit Plan (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net periodic pension cost (postretirement benefit gain) | $ 1.8 | $ 0.9 | $ 1.5 | $ 3 | $ 8.9 |
Defined Benefit Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 0 | 0 | |||
Interest cost | 12.3 | 12.9 | 17.2 | 18.2 | 23.3 |
Actuarial loss (gain) amortization | 10.8 | 9.6 | 12.8 | 12.5 | 13.3 |
Expected return on plan assets | (19.5) | (19.8) | (26.3) | (25.7) | (26.6) |
Net periodic pension cost (postretirement benefit gain) | 3.6 | 2.7 | 3.7 | 5 | 10 |
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 0 | 0 | 0 | ||
Service benefit | (0.3) | (0.3) | |||
Interest cost | 0.3 | 0.3 | 0.5 | 0.6 | 0.9 |
Actuarial loss (gain) amortization | (1.8) | (1.8) | (2.4) | (2.3) | (1.7) |
Prior service credit amortization | (0.3) | (0.3) | (0.3) | ||
Net periodic pension cost (postretirement benefit gain) | $ (1.8) | $ (1.8) | $ (2.2) | $ (2) | $ (1.1) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | Apr. 24, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 20, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 19.5 | $ 12.8 | |||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | 4.8 | ||||||
Share-based compensation expense related to unvested performance-based stock options not yet recognized | 0 | $ 5.3 | |||||
Term Based Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense related to unvested performance-based stock options not yet recognized | $ 49.7 | $ 21.7 | |||||
Share-based compensation expense related to unvested performance-based stock options expected to be recognized over a weighted average period | 1 year 10 months 24 days | 1 year 3 months 18 days | |||||
Stock options, vested | 6,819,649 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense related to unvested performance-based stock options expected to be recognized over a weighted average period | 2 years 9 months 18 days | 2 years 2 months 12 days | |||||
Stock options, granted | 159,323 | 76,192 | |||||
Stock options, vested | 230,990 | ||||||
Shares issued upon vesting of RSUs | 105,990 | ||||||
Remaining vested and releasable | 125,000 | ||||||
Unvested restricted stock units outstanding | 534,323 | 605,990 | |||||
Share-based compensation expense related to unvested performance-based stock options not yet recognized | $ 10.6 | $ 7.1 | |||||
Restricted Stock Units (RSUs) [Member] | IPO [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options, vested | 29,800 | ||||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 3 years | 3 years | |||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 4 years | 4 years | |||||
Hcm Stock Incentive Plan 2007 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 10,540,540 | 10,540,540 | |||||
Common shares outstanding | 5,000 | 10,000 | |||||
Hcm Stock Incentive Plan 2013 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 12,500,000 | 12,500,000 | 15,000,000 | ||||
Common shares outstanding | 10,766,257 | ||||||
Share-based compensation expense | $ 16.1 | $ 12.5 | $ 12.8 | ||||
Share based compensation arrangement by share based payment award exercise period after employment termination | 90 days | 90 days | |||||
Stock option awards, contractual term | 10 years | 10 years | |||||
Shares available for future grants of stock options and stock awards | 1,939,403 | ||||||
Hcm Stock Incentive Plan 2013 [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 4 years | 4 years | |||||
Hcm Stock Incentive Plan 2013 [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 5 years | 5 years | |||||
Hcm Stock Incentive Plan 2013 [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 600,000 | 600,000 | |||||
Common shares outstanding | 0 | 266,350 | |||||
Share-based compensation expense | $ 1.5 | ||||||
Hcm Stock Incentive Plan 2013 [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation vesting threshold | The performance-based options vest on the earlier to occur of a change in control or an initial public offering ("IPO") in which the value of Ceridian stock is at least $26.92 per share or higher. If the value of the common stock has not reached $26.92 or higher per share at the time an IPO or change in control event occurs, the options expire unvested, or through the expiration date. Options issued under the 2013 HCM SIP, other than the Replacement Options, do not include performance based-options. | ||||||
Hcm Stock Incentive Plan 2013 [Member] | Term Based Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years | ||||||
Hcm Equity Incentive Plan 2018 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 13,500,000 | ||||||
Common shares outstanding | 5,125,110 | ||||||
Restricted stock vesting period | 4 years | ||||||
Share based compensation arrangement by share based payment award exercise period after employment termination | 90 days | ||||||
Stock option awards, contractual term | 10 years | ||||||
Shares available for future grants of stock options and stock awards | 8,374,890 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Performance Based Stock Option (Detail) - Performance Shares [Member] - HCM Share Based Compensation Plans [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||||
Options Outstanding at Beginning of Period | 1,038,147 | 1,227,926 | 1,280,868 | 1,343,100 | |
Options, Granted | 0 | 0 | 0 | 0 | |
Options, Exercised | (633,606) | (167,202) | |||
Options, Forfeited or expired | (8,358) | (25,077) | (52,942) | (62,232) | |
Options Outstanding at End of Period | 396,183 | 1,038,147 | 1,227,926 | 1,280,868 | 1,343,100 |
Options Exercisable at End of Period | 396,183 | ||||
Weighted Average Exercise Price (per share) | |||||
Weighted Average Exercise Price at Beginning of Period | $ 13.46 | $ 13.46 | $ 13.46 | $ 13.46 | |
Weighted Average Exercise Price, Granted | 0 | 0 | 0 | 0 | |
Weighted Average Exercise Price, Exercised | (13.46) | (13.46) | |||
Weighted Average Exercise Price, Forfeited or expired | (13.46) | (13.46) | (13.46) | (13.46) | |
Weighted Average Exercise Price at End of Period | 13.50 | $ 13.46 | $ 13.46 | $ 13.46 | $ 13.46 |
Weighted Average Exercise Price at End of Period | $ 13.50 | ||||
Weighted Average Remaining Contractual Term (in years) | |||||
Weighted Average Remaining Contractual Term (in years) | 3 years 4 months 24 days | 3 years 6 months | 4 years 2 months 12 days | 5 years 2 months 12 days | 6 years 3 months 18 days |
Weighted Average Remaining Contractual Term Exercisable (in years) | 3 years 4 months 24 days | ||||
Aggregate intrinsic value | |||||
Aggregate Intrinsic Value, Options Outstanding | $ 11.3 | ||||
Aggregate Intrinsic Value, Options Exercisable | $ 11.3 | ||||
Previously Reported [Member] | |||||
Shares | |||||
Options Outstanding at Beginning of Period | 1,035,647 | ||||
Options Outstanding at End of Period | 1,035,647 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Term-Based Option Activity (Detail) - Term Based Stock Options [Member] - HCM Share Based Compensation Plans [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||||
Options Outstanding at Beginning of Period | 10,994,181 | 9,769,770 | 7,607,158 | 7,588,078 | |
Options, Granted | 5,140,787 | 2,285,981 | 2,339,238 | 187,140 | |
Options, Exercised | (1,127,360) | (595,464) | |||
Options, Forfeited or expired | (166,747) | (468,606) | (176,626) | (168,060) | |
Options Outstanding at End of Period | 14,840,861 | 10,994,181 | 9,769,770 | 7,607,158 | 7,588,078 |
Options Exercisable at End of Period | 6,868,950 | 6,819,649 | |||
Weighted Average Exercise Price (per share) | |||||
Weighted Average Exercise Price at Beginning of Period | $ 16.52 | $ 16.20 | $ 16.02 | $ 15.98 | |
Weighted Average Exercise Price, Granted | 22.84 | 17.46 | 16.80 | 17.56 | |
Weighted Average Exercise Price, Exercised | (13.73) | (15.14) | |||
Weighted Average Exercise Price, Forfeited or expired | (17.09) | (16.10) | (16.54) | (16.40) | |
Weighted Average Exercise Price at End of Period | 18.66 | 16.52 | $ 16.20 | $ 16.02 | $ 15.98 |
Weighted Average Exercise Price Exercisable at End of Period | $ 16.70 | $ 16.14 | |||
Weighted Average Remaining Contractual Term (in years) | |||||
Weighted Average Remaining Contractual Term (in years) | 7 years 7 months 6 days | 6 years 10 months 24 days | 7 years 1 month 6 days | 7 years 3 months 18 days | 8 years 2 months 12 days |
Weighted Average Remaining Contractual Term Exercisable (in years) | 5 years 9 months 18 days | 5 years 6 months | |||
Aggregate intrinsic value | |||||
Aggregate Intrinsic Value, Options Outstanding | $ 346.8 | $ 48.8 | $ 9.9 | $ 14.1 | $ 13.3 |
Aggregate Intrinsic Value Exercisable at End of Period | $ 174 | $ 32.9 | |||
Previously Reported [Member] | |||||
Shares | |||||
Options Outstanding at Beginning of Period | 10,991,681 | ||||
Options Outstanding at End of Period | 10,991,681 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) [Member] - shares | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock Units | ||||
RSUs outstanding at Beginning of Period | 605,990 | |||
RSUs, Granted | 159,323 | 76,192 | ||
RSUs, Shares issued upon vesting of RSUs | (230,990) | |||
RSUs outstanding at End of Period | 534,323 | 605,990 | ||
RSUs releasable at Sept 30, 2018 | 125,000 | |||
HCM Share Based Compensation Plans [Member] | ||||
Restricted Stock Units | ||||
RSUs outstanding at Beginning of Period | 605,990 | 182,180 | 228,572 | |
RSUs, Granted | 159,323 | 500,000 | 29,800 | 228,572 |
RSUs, Shares issued upon vesting of RSUs | (105,990) | (76,190) | (76,192) | |
RSUs, Forfeited or canceled | 0 | 0 | 0 | 0 |
RSUs outstanding at End of Period | 659,323 | 605,990 | 182,180 | 228,572 |
RSUs releasable at Sept 30, 2018 | 125,000 |
Supplementary Data to Stateme_3
Supplementary Data to Statement of Operations - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Other (income) expense, net | $ (2.5) | $ 6.9 | $ (7.3) | $ (12.9) | $ (27.8) |
Increase in environmental reserve | 5.9 | ||||
Foreign currency translation expense (income) | $ 7.3 | (3.4) | 4.8 | ||
UK Business [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Impairment charge on trade name intangible asset | $ 10.2 | $ 22.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 1,091.2 | $ 967.2 | |
Other comprehensive income (loss) before income taxes and reclassifications | (41) | 25.7 | $ (10) |
Income tax benefit (expense) | 2.3 | 3.6 | 1.9 |
Sale of UK Business, net of tax | 25.9 | ||
Reclassifications to earnings | 9 | 10.1 | 9.9 |
Other comprehensive income (loss) attributable to Ceridian | (29.7) | 39.4 | 27.7 |
Ending balance | 1,538.5 | 1,091.2 | 967.2 |
LifeWorks [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
LifeWorks Disposition | 0.7 | ||
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (160.6) | (199.9) | (224.8) |
Other comprehensive income (loss) before income taxes and reclassifications | (16.2) | 39.3 | 8 |
Sale of UK Business, net of tax | 16.9 | ||
Other comprehensive income (loss) attributable to Ceridian | (16.2) | 39.3 | 24.9 |
Ending balance | (176.1) | (160.6) | (199.9) |
Foreign Currency Translation Adjustment [Member] | LifeWorks [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
LifeWorks Disposition | 0.7 | ||
Unrealized Gain (Loss) from Invested Customer Trust Funds [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (9) | 4.7 | 12.9 |
Other comprehensive income (loss) before income taxes and reclassifications | (24.5) | (17.3) | (10.2) |
Income tax benefit (expense) | 2.3 | 3.6 | 2 |
Other comprehensive income (loss) attributable to Ceridian | (22.2) | (13.7) | (8.2) |
Ending balance | (31.2) | (9) | 4.7 |
Pension Liability Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (142.5) | (156.3) | (167.3) |
Other comprehensive income (loss) before income taxes and reclassifications | (0.3) | 3.7 | (7.8) |
Income tax benefit (expense) | (0.1) | ||
Sale of UK Business, net of tax | 9 | ||
Reclassifications to earnings | 9 | 10.1 | 9.9 |
Other comprehensive income (loss) attributable to Ceridian | 8.7 | 13.8 | 11 |
Ending balance | (133.8) | (142.5) | (156.3) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (312.1) | (351.5) | (379.2) |
Ending balance | $ (341.1) | $ (312.1) | $ (351.5) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective income tax percentage | 21.00% | 35.00% | 35.00% | 35.00% | |||
Statutory tax rate, including state and local taxes | 25.90% | 39.00% | |||||
Income tax expense | $ 5.8 | $ 3.8 | $ (49.6) | $ 6.7 | $ 4.3 | ||
Unrecognized tax benefits | $ 1.3 | 1.3 | 1.5 | ||||
Accrued Interest included in unrecognized tax benefits | 0.2 | 0.2 | 0.4 | ||||
Unrecognized tax benefits if recognized would impact on effective income tax rate | 1.3 | $ 1.3 | |||||
Income tax examination description | With a few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2014. | ||||||
Tax benefit recognized from consolidation of financial statement | 59.4 | ||||||
Decrease of the net deferred tax asset and the recognition of a tax expense | 28 | ||||||
Recognition of tax benefit due to revaluation of valuation allowance | 54.4 | ||||||
Untaxed foreign earnings | 74.3 | ||||||
Tax expense | 26 | ||||||
Foreign earnings resulting in a tax benefit | 26 | ||||||
Deferred tax liability, tax benefit | 20.9 | ||||||
Increase of the valuation allowance and a tax expense | $ 20.9 | ||||||
Tax Credit Carryforward, Description | The Tax Act changes the current 20-year carryover period for a net operating loss ("NOL") to an indefinite carryover period for NOL's incurred after December 31, 2017. | ||||||
Net federal tax benefit, available from the loss carryovers | $ 70.5 | ||||||
Federal tax credit carryovers | 0.3 | ||||||
State tax credit carryovers benefit | 29.7 | ||||||
Federal net operating loss tax benefit, amount | 1 | ||||||
Valuation allowance | 90.7 | $ 159.9 | |||||
Accrued interest and penalty | $ 0.4 | ||||||
Amount of unrecognized tax benefits | Of the total amount of unrecognized tax benefits, $1.5 represents the amount that, if recognized, would impact our effective income tax rate as of December 31, 2017. | ||||||
Overseas earnings available for reinvestment | $ 234.5 | ||||||
Deferred tax liability for the expected tax cost of repatriating such earnings | 5.1 | ||||||
Valuation Allowance [Member] | |||||||
Decrease of the valuation allowance and a tax expense | $ 33 | ||||||
Scenario, Plan [Member] | |||||||
Effective income tax percentage | 21.00% | ||||||
Research Tax Credit Carryforward [Member] | |||||||
Tax credit carryforward, expiration date | Dec. 31, 2027 | ||||||
Tax Cutsand Jobs Actof 2017 [Member] | |||||||
Income tax expense | 0 | ||||||
Increase in includible untaxed foreign earnings | 16.2 | ||||||
Tax benefit utilaization | 16.2 | ||||||
Tax Cutsand Jobs Actof 2017 [Member] | Foreign Income [Member] | |||||||
Income tax expense | 5.7 | ||||||
Tax Cutsand Jobs Actof 2017 [Member] | Operating Loss Carryforwards [Member] | |||||||
Income tax expense | $ (5.7) | ||||||
Earliest Tax Year [Member] | |||||||
Tax credit carryforward, expiration date | Dec. 31, 2021 | ||||||
Latest Tax Year [Member] | |||||||
Tax credit carryforward, expiration date | Dec. 31, 2029 | ||||||
Previously Reported [Member] | |||||||
Unrecognized tax benefits | $ 1.5 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cannae and THLM [Member] | ||||||||
Management fees description | Amount equal to the greater of (a) $0.9, or (b) 0.5 percent of Adjusted EBITDA. | Amount equal to the greater of (a) $0.9, or (b) 0.5 percent of Adjusted EBITDA. | ||||||
Management fee under condition one | $ 0.9 | $ 0.9 | ||||||
Management fee percentage of EBITDA under condition two | 0.50% | 0.50% | ||||||
Number of years for which present value of the management fee to be paid in case of agreement termination | 7 years | |||||||
Management agreeement termination fee | $ 11.3 | |||||||
Management fee | $ 12 | $ 1.4 | $ 1.9 | $ 5 | $ 1.9 | |||
Senior notes owned | 30.8 | 30.3 | 23.1 | |||||
Interest payments received | 3.2 | 3.2 | 3.2 | |||||
Cannae and THLM [Member] | Convertible Preferred Stock [Member] | Transaction Advisory Fee [Member] | ||||||||
Transaction advisory fees | 3 | |||||||
CompuCom Systems, Inc. [Member] | ||||||||
Payment to service provider | 1.3 | 2.3 | 3.1 | 5 | 2.8 | |||
The Stronach Group [Member] | Dayforce [Member] | ||||||||
Revenue from related parties | 0.2 | 0.2 | ||||||
FNF [Member] | ||||||||
Senior notes owned | 24 | |||||||
Interest payments received | 1.3 | 2.4 | ||||||
FNF [Member] | Dayforce [Member] | ||||||||
Revenue from related parties | $ 0.3 | $ 0.4 | $ 0.4 | $ 0.3 | $ 0.5 | |||
Fleet Cor Technologies Or Wholly Owned Affiliates [Member] | Dayforce HCM Services, Reseller/Referral Arrangement [Member] | ||||||||
Revenue from related parties | $ 0.2 | 0.4 | ||||||
Fleet Cor Technologies Inc [Member] | ||||||||
Rebates on corporate charge card purchases | $ 0.2 |
Financial Data by Segment and_3
Financial Data by Segment and Geographic Area - Additional Information (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018SegmentEmployeesService | Dec. 31, 2017SegmentEmployeesServiceCustomer | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 1 | 1 |
Number of reportable segments | 1 | 1 |
Number of customers | Customer | 0 | |
Status of customer accounts | No single customer accounts for 1% or more of our consolidated revenue for any of the periods presented. | |
Status of customer accounts, percentage | 1.00% | |
Cloud Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of cloud offering delivering solution | 2 | 2 |
Powerpay [Member] | Maximum [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of employees generating revenue from recurring fees | Employees | 20 | 20 |
Bureau Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of primary service lines delivering solutions | Service | 3 | 3 |
Financial Data by Segment and_4
Financial Data by Segment and Geographic Area - Schedule of Revenue by Solutions (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenue | $ 546.1 | $ 488.4 | $ 670.8 | $ 623.4 | $ 611.6 |
HCM [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenue | 546.1 | 488.4 | |||
HCM [Member] | Cloud Revenue [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenue | 386 | 288 | 404.3 | 297.8 | 225.2 |
HCM [Member] | Bureau Revenue [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenue | $ 160.1 | $ 200.4 | $ 266.5 | $ 325.6 | $ 386.4 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Numerators and Denominators of Basic and Diluted Net Loss per Share Computations (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||
Net income (loss) attributable to Ceridian | $ (63.2) | $ (54.2) | $ (9.2) | $ (92.9) | $ (104.7) |
Less: Income (loss) from discontinued operations | (14.8) | (2.4) | (6) | 12.5 | 3.7 |
Net income (loss) from continuing operations attributable to Ceridian | (48.4) | (51.8) | (3.2) | (105.4) | (108.4) |
Less: Senior Preferred Stock dividends declared | 7.7 | 15.3 | 20.5 | 14.1 | |
Net income (loss) from continuing operations attributable to Ceridian available to common stockholders | $ (56.1) | $ (67.1) | $ (23.7) | $ (119.5) | $ (108.4) |
Denominator: | |||||
Weighted-average shares outstanding - basic and diluted | 105,730,178 | 65,181,373 | 65,204,960 | 64,988,338 | 64,924,845 |
Weighted-average shares outstanding-basic | 105,730,178 | 65,181,373 | 65,204,960 | 64,988,338 | 64,924,845 |
Weighted-average shares outstanding-diluted | 105,730,178 | 65,181,373 | 65,204,960 | 64,988,338 | 64,924,845 |
Net income (loss) per share from continuing operations attributable to Ceridian-basic | $ (0.53) | $ (1.03) | |||
Net loss per share from continuing operations attributable to Ceridian-basic and diluted | $ (0.36) | $ (1.84) | $ (1.67) | ||
Net loss per share from discontinued operations-basic | (0.14) | (0.04) | |||
Net (loss) income per share from discontinued operations-basic and diluted | (0.10) | 0.19 | 0.06 | ||
Net income (loss) per share attributable to Ceridian-basic | (0.67) | (1.07) | |||
Net loss per share attributable to Ceridian-basic and diluted | $ (0.46) | $ (1.65) | $ (1.61) | ||
Net income (loss) per share from continuing operations attributable to Ceridian-diluted | (0.53) | (1.03) | |||
Net loss per share from discontinued operations-diluted | (0.14) | (0.04) | |||
Net income (loss) per share attributable to Ceridian- diluted | $ (0.67) | $ (1.07) |
Net Loss per Share - Schedule_2
Net Loss per Share - Schedule of Potentially Dilutive Weighted Average Shares Excluded from Calculation of Diluted Net Loss per Share (Detail) - shares | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Senior Convertible Preferred Stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 7,358,603 | 16,802,144 | 16,802,144 | 12,601,608 | |
Junior Convertible Preferred Stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 25,508,456 | 58,244,308 | 58,244,308 | 58,244,308 | 58,244,308 |
Stock Options [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 14,127,557 | 11,349,251 | 10,201,105 | 8,423,124 | 7,468,081 |
Unvested Restricted Stock Units RSU [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 451,190 | 155,692 | 190,477 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 561,836 | 478,325 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated useful life of Property, Plant, and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 40 years |
Minimum [Member] | Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 5 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Minimum [Member] | Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Maximum [Member] | Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 14 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 8 years |
Maximum [Member] | Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 6 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Definite lived Intangible Assets Amortization Expense (Detail) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum [Member] | Customer Lists and Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 5 years | 5 years | 5 years |
Minimum [Member] | Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 2 years | 2 years | 2 years |
Maximum [Member] | Customer Lists and Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 15 years | 15 years | 15 years |
Maximum [Member] | Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 7 years | 7 years | 7 years |
Business Combinations and Non_2
Business Combinations and Noncontrolling Interest - Additional Information (Detail) - USD ($) $ in Millions | Mar. 01, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Combinations [Line Items] | |||||
Non-controlling interest | $ 39.2 | $ 37.8 | $ 38.7 | ||
Net assets acquired | $ 2.1 | ||||
Number of Class B shares exchanged | 10,063,749 | ||||
Cash acquired | $ 1.2 | ||||
Net wokring capital acquired | 0.9 | ||||
Goodwill related to the acquisition price | $ 37.1 | ||||
Net loss attributable to noncontrolling interest | $ (0.5) | $ (0.4) | (1.3) | 0.1 | |
Non-controlling Interest | |||||
Business Combinations [Line Items] | |||||
Net loss attributable to noncontrolling interest | $ 1.3 | $ 0.1 |
Trade and Other Receivables, _3
Trade and Other Receivables, Net - Schedule of Trade and Other Receivables, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | |||
Trade receivables from customers | $ 67.2 | $ 71.2 | |
Interest receivable from invested customer trust funds | 1.7 | 0.5 | |
Other | 3.7 | 5.3 | |
Total gross receivables | 72.6 | 77 | |
Less: reserve for sales adjustments | (4.7) | (4.1) | |
Less: allowance for doubtful accounts | (1.3) | (1.8) | |
Trade and other receivables, net | $ 62.6 | $ 66.6 | $ 71.1 |
Trade and Other Receivables, _4
Trade and Other Receivables, Net - Activity Related to Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Balance at beginning of year | $ 1.8 | $ 1.1 | $ 1.1 |
Provision for doubtful accounts | 0.2 | 1.1 | 0.6 |
Charge-offs, net of recoveries | (0.7) | (0.4) | (0.6) |
Balance at end of year | $ 1.3 | $ 1.8 | $ 1.1 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization of Other Intangible Assets (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Future amortization of intagible assets | |
2,018 | $ 18.6 |
2,019 | 15.4 |
2,020 | 0.1 |
2,021 | 0.1 |
2,022 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Oct. 31, 2017 | Oct. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Defined contribution plan, expense recognized | $ 7.5 | $ 7 | $ 7.1 | |||||
Inactive participants In defined benefit plan | 98.00% | |||||||
Contribution to defined benefit plan assets | $ 21.1 | |||||||
Benefit obligation, discount rate | 0.25% | |||||||
Decrease in expense for all pension plans | $ (0.2) | |||||||
Net periodic postretirement benefit cost | $ 1.8 | $ 0.9 | 1.5 | 3 | $ 8.9 | |||
Scenario, Forecast [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Contribution to defined benefit plan assets | $ 18.5 | |||||||
Nonqualified Defined Benefit Plan [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Contribution to defined benefit plan assets | 1.9 | |||||||
Nonqualified Defined Benefit Plan [Member] | Scenario, Forecast [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Contribution to defined benefit plan assets | 1.8 | |||||||
Defined Benefit Pension Plan [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Contribution to defined benefit plan assets | $ 23 | $ 38.4 | ||||||
Benefit obligation, discount rate | 3.25% | 3.63% | 3.76% | |||||
Reduction in projected benefit obligation, mortality assumptions | $ (6) | $ (12) | ||||||
Projected benefit obligation of defined benefit plans exceeded the fair value of plan assets | $ 154.4 | $ 189.5 | ||||||
Accumulated benefit obligation of defined benefit plans | 593 | 605.9 | ||||||
Net periodic postretirement benefit cost | 3.6 | 2.7 | 3.7 | 5 | $ 10 | |||
Actuarial gain | $ 20.3 | 4.3 | ||||||
Defined Benefit Pension Plan [Member] | Long Term Investments [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Defined benefit plan assets percentage of asset categories | 75.00% | |||||||
Defined Benefit Pension Plan [Member] | Liability Hedging [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Defined benefit plan assets percentage of asset categories | 23.00% | |||||||
Defined Benefit Pension Plan [Member] | Short-term Investments [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Defined benefit plan assets percentage of asset categories | 2.00% | |||||||
Defined Benefit Pension Plan [Member] | Fixed Income [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Defined benefit plan percentage of target allocation | 38.00% | |||||||
Defined Benefit Pension Plan [Member] | Domestic Equities [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Defined benefit plan percentage of target allocation | 27.00% | |||||||
Defined Benefit Pension Plan [Member] | International Equities [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Defined benefit plan percentage of target allocation | 25.00% | |||||||
Defined Benefit Pension Plan [Member] | Hedge Funds [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Defined benefit plan percentage of target allocation | 10.00% | |||||||
Defined Benefit Pension Plan [Member] | Scenario, Forecast [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Net actuarial loss | 14.2 | |||||||
Other Postretirement Benefits Plan [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Contribution to defined benefit plan assets | $ 1.2 | $ 1.5 | ||||||
Benefit obligation, discount rate | 3.01% | 3.26% | 3.38% | |||||
Net periodic postretirement benefit cost | $ (1.8) | $ (1.8) | $ (2.2) | $ (2) | $ (1.1) | |||
Actuarial gain | $ (0.7) | $ (1.4) | ||||||
Assumed health care cost trend rate used in measuring the benefit obligation | The assumed health care cost trend rate represents the rate at which health care costs are assumed to increase. The assumed health care cost trend rate used in measuring the benefit obligation in 2017 is 6.75% for pre-age 65 retirees and 7.25% for post-age 65 retirees. These rates are assumed to decrease gradually to the ultimate health care cost trend rate of 4.5% in 2028 for both groups. | |||||||
The year the health care cost reaches ultimate trend rate of 4.5% | 2,028 | |||||||
Increase in the benefit obligation | $ 0.9 | |||||||
Decrease in the benefit obligation | $ 0.8 | |||||||
Other Postretirement Benefits Plan [Member] | Pre Age 65 [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Assumed health care cost trend rate | 6.75% | |||||||
Other Postretirement Benefits Plan [Member] | Post Age 65 [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Assumed health care cost trend rate | 7.25% | |||||||
Other Postretirement Benefits Plan [Member] | Scenario, Forecast [Member] | ||||||||
Defined Contribution And Defined Benefit Plans [Line Items] | ||||||||
Net periodic postretirement benefit cost | 2.5 | |||||||
Actuarial gain | 2.2 | |||||||
Prior service credit | $ 0.3 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Future Payments to Participants from Defined Benefit Plans (Detail) - Defined Benefit Pension Plan [Member] $ in Millions | Dec. 31, 2017USD ($) |
Future payments of defined benefit plan | |
2,018 | $ 46.8 |
2,019 | 46.3 |
2,020 | 45.4 |
2,021 | 44.4 |
2,022 | 43.1 |
Next five years | $ 193.5 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefit - Pension Benefits (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in Fair Value of Plan Assets During the Year: | |||||
Employer contributions | $ 21.1 | ||||
Amounts recognized in Consolidated Balance Sheets | |||||
Noncurrent liability | $ 124.6 | 152.4 | $ 182.1 | ||
Defined Benefit Pension Plan [Member] | |||||
Change in Projected Benefit Obligation During the Year: | |||||
Beginning balance | 593 | $ 605.9 | 605.9 | 636 | |
Service cost | 0 | 0 | |||
Interest cost | 12.3 | 12.9 | 17.2 | 18.2 | $ 23.3 |
Actuarial loss | 20.3 | 4.3 | |||
Benefits paid and plan expenses | (50.4) | (52.6) | |||
Ending balance | 593 | 605.9 | 636 | ||
Change in Fair Value of Plan Assets During the Year: | |||||
Beginning balance | $ 438.6 | $ 416.4 | 416.4 | 410.1 | |
Actual return on plan assets | 49.6 | 20.5 | |||
Employer contributions | 23 | 38.4 | |||
Benefits paid and plan expenses | (50.4) | (52.6) | |||
Ending balance | 438.6 | 416.4 | $ 410.1 | ||
Funded status of plans | (154.4) | (189.5) | |||
Amounts recognized in Consolidated Balance Sheets | |||||
Current liability | 20.3 | 27.1 | |||
Noncurrent liability | 134.1 | 162.4 | |||
Amounts recognized in Accumulated Other Comprehensive Loss | |||||
Accumulated other comprehensive loss, net of tax | $ 151.4 | $ 167.2 |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefit - Pension Benefits (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Pension Plan [Member] | ||
Accumulated other comprehensive loss, tax | $ 91.5 | $ 91.5 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Other Comprehensive (Income) Loss Related to Pension Benefit Plans (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | [1] | Sep. 30, 2017 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net actuarial (gain) loss | $ (8.7) | $ (7.6) | $ (13.8) | [2] | $ (13.6) | [2] | $ (14.5) | [2] | ||
Tax expense | 0 | (0.1) | (0.2) | |||||||
Defined Benefit Pension Plan [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net actuarial (gain) loss | (3) | 9.5 | 2.2 | |||||||
Amortization of net actuarial gain | (12.8) | (12.5) | (13.3) | |||||||
Tax expense | 0.1 | |||||||||
Other comprehensive income, net of tax | (15.8) | (2.9) | (11.1) | |||||||
Other Postretirement Benefits Plan [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net actuarial (gain) loss | (0.7) | (1.4) | (4.5) | |||||||
Amortization of net actuarial gain | 2.7 | 2.6 | 2 | |||||||
Other comprehensive income, net of tax | $ 2 | $ 1.2 | $ (2.5) | |||||||
[1] | The amount of the pension liability adjustment recognized in the condensed consolidated statements of operations within selling, general, and administrative expense was $9.0 and $7.8 during the nine months ended September 30, 2018, and 2017, respectively. | |||||||||
[2] | The amount of the pension liability adjustment recognized in the Consolidated Statements of Operations within selling, general, and administrative expense and income (loss) from discontinued operations was $10.1, $9.9 and $11.8 during the years ended December 31, 2017, 2016, and 2015, respectively. |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Other Comprehensive (Income) Loss Related to Postretirement Benefit Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine benefit obligations | 0.25% | ||
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine net benefit cost | 3.26% | 3.38% | 3.25% |
Discount rate used to determine benefit obligations | 3.01% | 3.26% | 3.38% |
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine net benefit cost | 3.63% | 3.76% | 3.50% |
Expected return on plan assets | 6.30% | 6.30% | 6.50% |
Discount rate used to determine benefit obligations | 3.25% | 3.63% | 3.76% |
Employee Benefit Plans - Sche_6
Employee Benefit Plans - Schedule of fair values of defined benefit plan's assets (Detail) - Defined Benefit Pension Plan [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | $ 438.6 | $ 416.4 | $ 410.1 |
Partnerships [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 35.3 | 32.7 | |
Derivative [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 14.8 | 19 | |
US Government Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 88.1 | 88.9 | |
Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 18.3 | 25.5 | |
Domestic Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 144.4 | 66.7 | |
Foreign Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 57.5 | 86 | |
Foreign Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 41.8 | 33.3 | |
Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 1.6 | 30.3 | |
Short-term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 36.8 | 34 | |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 36.8 | 34 | |
Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 36.8 | 34 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 401.8 | 382.4 | |
Fair Value, Inputs, Level 2 [Member] | Partnerships [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 35.3 | 32.7 | |
Fair Value, Inputs, Level 2 [Member] | Derivative [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 14.8 | 19 | |
Fair Value, Inputs, Level 2 [Member] | US Government Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 88.1 | 88.9 | |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 18.3 | 25.5 | |
Fair Value, Inputs, Level 2 [Member] | Domestic Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 144.4 | 66.7 | |
Fair Value, Inputs, Level 2 [Member] | Foreign Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 57.5 | 86 | |
Fair Value, Inputs, Level 2 [Member] | Foreign Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 41.8 | 33.3 | |
Fair Value, Inputs, Level 2 [Member] | Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | $ 1.6 | $ 30.3 |
Employee Benefit Plans - Sche_7
Employee Benefit Plans - Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefit - Postretirement Benefits (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in Plan Assets: | |||||
Company contributions | $ 21.1 | ||||
Amounts recognized in Consolidated Balance Sheets | |||||
Noncurrent liability | $ 124.6 | 152.4 | $ 182.1 | ||
Other Postretirement Benefits Plan [Member] | |||||
Change in Benefit Obligation: | |||||
Beginning balance | 19.6 | $ 21 | 21 | 23.2 | |
Interest cost | 0.3 | 0.3 | 0.5 | 0.6 | $ 0.9 |
Participant contributions | 1.1 | 1.2 | |||
Actuarial gain | (0.7) | (1.4) | |||
Benefits paid | (2.3) | (2.6) | |||
Ending balance | 19.6 | 21 | 23.2 | ||
Change in Plan Assets: | |||||
Beginning balance | $ 0 | $ 0 | 0 | 0 | |
Company contributions | 1.2 | 1.5 | |||
Participant contributions | 1.1 | 1.1 | |||
Benefits paid | (2.3) | (2.6) | |||
Ending balance | 0 | 0 | $ 0 | ||
Funded Status | (19.6) | (21) | |||
Amounts recognized in Consolidated Balance Sheets | |||||
Current liability | 2.4 | 2.6 | |||
Noncurrent liability | 17.2 | 18.4 | |||
Amounts recognized in Accumulated Other Comprehensive Loss | |||||
Accumulated other comprehensive income, net of tax | $ (8.9) | $ (10.9) |
Employee Benefit Plans - Sche_8
Employee Benefit Plans - Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefit - Postretirement Benefits (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Postretirement Benefits Plan [Member] | ||
Accumulated other comprehensive loss, tax | $ (9.9) | $ (9.9) |
Employee Benefit Plans - Projec
Employee Benefit Plans - Projected future postretirement benefit payments and future receipts from the federal subsidy (Detail) - Other Postretirement Benefits Plan [Member] $ in Millions | Dec. 31, 2017USD ($) |
Defined benefit plan, expected future benefit payment | |
2,018 | $ 2.5 |
2,019 | 2.2 |
2,020 | 2.1 |
2,021 | 2 |
2,022 | 1.9 |
Next five years | 7.3 |
Defined benefit plan, expected future receipts from federal subsidy | |
2,018 | 0.1 |
2,019 | 0.1 |
2,020 | 0.1 |
2,021 | 0.1 |
2,022 | 0.1 |
Next five years | $ 0.3 |
Share-Based Compensation - Othe
Share-Based Compensation - Other Information Pertaining to Term-Based Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Term Based Stock Options [Member] | HCM Share Based Compensation Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 5.88 | $ 5.74 | $ 5.68 |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value of Stock Option Estimated Using Black-Scholes Option Pricing Model (Detail) - Term Based Stock Options [Member] - HCM Share Based Compensation Plans [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 30.00% | 30.00% | 33.00% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 2.30% | 1.90% | 2.10% |
Share-Based Compensation - Ot_2
Share-Based Compensation - Other Information Pertaining to Restricted Stock Units (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock Units (RSUs) [Member] | HCM Share Based Compensation Plans [Member] | |||
Weighted average grant date fair value per share | $ 17.26 | $ 17.40 | $ 17.50 |
Supplementary Data to Stateme_4
Supplementary Data to Statement of Operations - Summary of Supplementary Data to Statements of Operations (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Nonoperating Expense [Abstract] | |||||
Asset impairment | $ 10.4 | $ 23 | |||
Environmental reserve | 5.9 | ||||
Foreign currency translation expense (income) | $ 7.3 | (3.4) | 4.8 | ||
Total other expense, net | $ 2.5 | $ (6.9) | $ 7.3 | $ 12.9 | $ 27.8 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) attributable to noncontrolling interest | $ 0.4 | $ 0.6 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
(Loss) Income Before Income Taxes: | |||||
U.S. | $ (83.4) | $ (163.4) | $ (147.3) | ||
International | 29.3 | 64.8 | 43.2 | ||
Total | (54.1) | (98.6) | (104.1) | ||
Current: | |||||
U.S. | (0.3) | (0.4) | (0.2) | ||
State and local | 0.1 | 0.2 | 0.1 | ||
International | 12.9 | 15.2 | 15.1 | ||
Total current income tax expense | 12.7 | 15 | 15 | ||
Deferred: | |||||
U.S. | (60.3) | (15.7) | (10.4) | ||
State and local | 0.8 | (0.1) | (1.8) | ||
International | (2.8) | 7.5 | 1.5 | ||
Total deferred income tax (benefit) expense | $ (9.8) | $ (4.4) | (62.3) | (8.3) | (10.7) |
Total income tax (benefit) expense | $ 5.8 | $ 3.8 | $ (49.6) | $ 6.7 | $ 4.3 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Rate (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
U.S. statutory rate | (21.00%) | (35.00%) | (35.00%) | (35.00%) |
Change in valuation allowance | (116.90%) | (5.40%) | 14.90% | |
State income taxes, net of federal benefit | (5.20%) | (1.20%) | (0.70%) | |
Share-based compensation | 8.30% | 2.60% | 2.70% | |
International tax rate differential | (6.70%) | (6.40%) | (5.50%) | |
Foreign dividend income | 48.10% | 1.00% | 12.40% | |
Unremitted foreign earnings | (35.60%) | 22.00% | ||
Foreign capital gain income | 3.60% | |||
Reserve for tax contingencies | (0.20%) | 0.10% | ||
Expiration of un-utilized tax credits | 1.50% | 10.40% | ||
Unrealized gain on investments | 30.70% | |||
Change in tax rate | 52.40% | |||
Other | (2.60%) | (1.50%) | 1.20% | |
Income tax provision | (91.70%) | 6.60% | 4.10% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Asset and Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Asset: | ||
Employment related accruals | $ 51 | $ 89.7 |
Foreign tax credit carryover and other credit carryovers | 0.2 | 1.1 |
Net operating loss carryforwards | 100.3 | 133.1 |
Total gross deferred tax asset | 151.5 | 223.9 |
Valuation allowance | (90.7) | (159.9) |
Total deferred tax asset | 60.8 | 64 |
Deferred Tax Liability: | ||
Intangibles | (65.7) | (101.7) |
Unremitted foreign earnings | (20.9) | |
Unrealized gain on investment | (22.2) | (33.5) |
Other | (5) | (5.5) |
Total deferred tax liability | (92.9) | (161.6) |
Net deferred tax liability | (32.1) | (97.6) |
U.S. [Member] | ||
Deferred Tax Liability: | ||
Net deferred tax liability | (18.4) | (78) |
International [Member] | ||
Deferred Tax Liability: | ||
Net deferred tax liability | $ (13.7) | $ (19.6) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Federal, State and Foreign Tax | ||
Beginning unrecognized tax balance | $ 1.4 | $ 1.7 |
Increase prior period positions | 0.2 | 0.1 |
Increase current period positions | 0.1 | 0.2 |
Decrease prior period positions | (0.3) | |
Decrease current period positions | (0.1) | |
Statutes expiring | (0.2) | (0.2) |
Ending unrecognized tax benefits | $ 1.5 | $ 1.4 |
Commitments and Contingencies -
Commitments and Contingencies - Rental Expense and Sublease Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rental Expense, Net | |||
Rental expense | $ 17 | $ 16.8 | $ 18.6 |
Sublease rental income | (4.2) | (3.5) | (2.3) |
Net rental expense | $ 12.8 | $ 13.3 | $ 16.3 |
Commitments and Contingencies_2
Commitments and Contingencies - Leases - Minimum Noncancellable Lease Payments, Net (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Leases, Operating [Abstract] | |
2,018 | $ 10.5 |
2,019 | 10.6 |
2,020 | 8.9 |
2,021 | 6.3 |
2,022 | 5.4 |
Thereafter | 4.3 |
Total | $ 46 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Increase to the environmental reserve | $ 5.9 | |
Recognized an undiscounted liability | $ 6.2 | $ 5.4 |
Financial Data by Segment and_5
Financial Data by Segment and Geographic Area - Schedule of Revenue by Country (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenue | $ 546.1 | $ 488.4 | $ 670.8 | $ 623.4 | $ 611.6 |
United States [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenue | 465.2 | 432.7 | 420 | ||
Canada [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenue | 203.4 | 189 | 190.8 | ||
Other Country [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenue | $ 2.2 | $ 1.7 | $ 0.8 |
Financial Data by Segment and_6
Financial Data by Segment and Geographic Area - Schedule of Long Lived Assets by Country (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Long Lived Assets Geographic [Line Items] | ||
Total long-lived assets | $ 2,269.5 | $ 2,241.3 |
United States [Member] | ||
Long Lived Assets Geographic [Line Items] | ||
Total long-lived assets | 1,786.1 | 1,788.3 |
Canada [Member] | ||
Long Lived Assets Geographic [Line Items] | ||
Total long-lived assets | 480.6 | 450.6 |
Other Country [Member] | ||
Long Lived Assets Geographic [Line Items] | ||
Total long-lived assets | $ 2.8 | $ 2.4 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jun. 28, 2017 | Mar. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Apr. 30, 2018 | Oct. 01, 2013 |
Capital Unit [Line Items] | |||||||
Common Stock, authorized shares | 150,000,000 | 150,000,000 | 150,000,000 | 500,000,000 | 100,000,000 | ||
Common Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common Stock, shares issued | 65,285,962 | 65,001,037 | 138,049,718 | 24,150,000 | |||
Common Stock, shares outstanding | 65,285,962 | 65,001,037 | 138,049,718 | ||||
Voting right of common stock | One vote | ||||||
Stock issued in equity financing | $ 3.2 | $ 75 | |||||
Receivable from stockholders | $ 75.2 | ||||||
Junior Preferred Stock [Member] | |||||||
Capital Unit [Line Items] | |||||||
Preferred Stock, shares authorized | 70,000,000 | 70,000,000 | 70,000,000 | ||||
Preferred Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred Stock, shares issued | 58,244,308 | 58,244,308 | |||||
Preferred Stock, shares outstanding | 58,244,308 | 58,244,308 | |||||
Junior Preferred Stock [Member] | Maximum [Member] | |||||||
Capital Unit [Line Items] | |||||||
Preferred stock liquidation preference | $ 6.75 | ||||||
Senior Preferred Stock [Member] | |||||||
Capital Unit [Line Items] | |||||||
Preferred Stock, shares authorized | 70,000,000 | 70,000,000 | 70,000,000 | ||||
Preferred Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred Stock, shares issued | 16,802,144 | 16,802,144 | |||||
Preferred Stock, shares outstanding | 16,802,144 | 16,802,144 | |||||
Stock issued in equity financing | $ 150.2 | $ 150.2 | |||||
Receivable from stockholders | 75.2 | ||||||
Preferred stock, dividend rate, percentage | 12.50% | ||||||
Preferred stock, liquidation preference | In the event of liquidation, the Senior Preferred Stock has a liquidation preference equal to 1.5 times the initial face amount plus any accrued but unpaid dividends. | ||||||
Senior Preferred Stock [Member] | Ceridian Holding II [Member] | |||||||
Capital Unit [Line Items] | |||||||
Equity contributed by stockholders | $ 75.2 | $ 75 |