Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 23, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Ceridian HCM Holding Inc. | ||
Entity Central Index Key | 0001725057 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 148,801,679 | ||
Entity Public Float | $ 9,582.5 | ||
Entity File Number | 001-38467 | ||
Entity Tax Identification Number | 46-3231686 | ||
Entity Address Address Line1 | 3311 East Old Shakopee Road | ||
Entity Address City Or Town | Minneapolis | ||
Entity Address State Or Province | MN | ||
Entity Address Postal Zip Code | 55425 | ||
City Area Code | 952 | ||
Local Phone Number | 853-8100 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | CDAY | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the 2021 Annual Meeting of Stockholders, scheduled to be held on April 27, 2021, are incorporated by reference into Part III of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and equivalents | $ 188.2 | $ 281.3 |
Trade and other receivables, net | 101.1 | 80.4 |
Prepaid expenses and other current assets | 73.9 | 57.9 |
Total current assets before customer trust funds | 363.2 | 419.6 |
Customer trust funds | 3,759.4 | 3,204.1 |
Total current assets | 4,122.6 | 3,623.7 |
Right of use lease asset | 27.9 | 32 |
Property, plant, and equipment, net | 136.4 | 128.3 |
Goodwill | 2,031.8 | 1,973.5 |
Other intangible assets, net | 195 | 177.9 |
Other assets | 187.6 | 150.3 |
Total assets | 6,701.3 | 6,085.7 |
Current liabilities: | ||
Current portion of long-term debt | 7.2 | 10.8 |
Current portion of long-term lease liabilities | 10.5 | 8.8 |
Accounts payable | 38.9 | 43.2 |
Deferred revenue | 24.4 | 25.5 |
Employee compensation and benefits | 64.6 | 75.9 |
Other accrued expenses | 20.5 | 13.9 |
Total current liabilities before customer trust funds obligations | 166.1 | 178.1 |
Customer trust funds obligations | 3,697.8 | 3,193.6 |
Total current liabilities | 3,863.9 | 3,371.7 |
Long-term debt, less current portion | 660.6 | 666.3 |
Employee benefit plans | 24.4 | 117.2 |
Long-term lease liabilities, less current portion | 33.6 | 30.1 |
Other liabilities | 20.6 | 18.1 |
Total liabilities | 4,603.1 | 4,203.4 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par, 500,000,000 shares authorized, 148,571,412 and 144,386,618 shares issued and outstanding, respectively | 1.5 | 1.4 |
Additional paid in capital | 2,606.5 | 2,449.1 |
Accumulated deficit | (233.8) | (229.8) |
Accumulated other comprehensive loss | (276) | (338.4) |
Total stockholders’ equity | 2,098.2 | 1,882.3 |
Total liabilities and equity | $ 6,701.3 | $ 6,085.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2018 | Mar. 30, 2016 | Oct. 01, 2013 |
Statement Of Financial Position [Abstract] | |||||
Common Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common Stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 150,000,000 | 100,000,000 |
Common Stock, shares issued | 148,571,412 | 144,386,618 | 24,150,000 | ||
Common Stock, shares outstanding | 148,571,412 | 144,386,618 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Total revenue | $ 842.5 | $ 824.1 | $ 740.7 |
Cost of revenue: | |||
Recurring services | 213.3 | 201.8 | 200.3 |
Professional services and other | 163.7 | 149.8 | 132.2 |
Product development and management | 83.7 | 67.9 | 59 |
Depreciation and amortization | 40.5 | 36.4 | 34.3 |
Total cost of revenue | 501.2 | 455.9 | 425.8 |
Gross profit | 341.3 | 368.2 | 314.9 |
Selling, general and administrative | 333.5 | 295.9 | 258.8 |
Operating profit | 7.8 | 72.3 | 56.1 |
Interest expense, net | 25.1 | 32.4 | 83.2 |
Other expense (income), net | 2.7 | 5.6 | (0.2) |
(Loss) income from continuing operations before income taxes | (20) | 34.3 | (26.9) |
Income tax (benefit) expense | (16) | (44.4) | 8.4 |
(Loss) income from continuing operations | (4) | 78.7 | (35.3) |
Loss from discontinued operations | (25.8) | ||
Net (loss) income | (4) | 78.7 | (61.1) |
Net loss attributable to noncontrolling interest | (0.5) | ||
Net (loss) income attributable to Ceridian | $ (4) | $ 78.7 | $ (60.6) |
Net (loss) income per share attributable to Ceridian: | |||
Basic | $ (0.03) | $ 0.55 | $ (0.60) |
Diluted | $ (0.03) | $ 0.53 | $ (0.60) |
Weighted-average shares outstanding: | |||
Basic | 146,774,471 | 142,049,112 | 114,049,682 |
Diluted | 146,774,471 | 148,756,592 | 114,049,682 |
Recurring Services [Member] | |||
Revenue: | |||
Total revenue | $ 690.2 | $ 680.1 | $ 625 |
Professional Services and Other [Member] | |||
Revenue: | |||
Total revenue | $ 152.3 | $ 144 | $ 115.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (4) | $ 78.7 | $ (61.1) | |
Items of other comprehensive income (loss) before income taxes: | ||||
Change in foreign currency translation adjustment | 18.7 | 29.1 | (48.7) | |
Change in unrealized gain from invested customer trust funds | 38.4 | 37.7 | (10.5) | |
Change in pension liability adjustment | [1] | 21.2 | 9.8 | (7.6) |
Other comprehensive income (loss) before income taxes | 78.3 | 76.6 | (66.8) | |
Income tax (benefit) expense, net | 15.9 | 12 | (1.2) | |
Other comprehensive income (loss) after income taxes | 62.4 | 64.6 | (65.6) | |
Comprehensive income (loss) | 58.4 | 143.3 | (126.7) | |
Comprehensive loss attributable to noncontrolling interest | (0.5) | |||
Comprehensive income (loss) attributable to Ceridian | $ 58.4 | $ 143.3 | $ (126.2) | |
[1] | The amount of the pension liability adjustment recognized in the Consolidated Statements of Operations within other expense (income), net was $13.2 million, $10.1 million, and $11.7 million during the years ended December 31, 2020, 2019, and 2018, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Expense (Income), Net [Member] | |||
Pension liability adjustment | $ 13.2 | $ 10.1 | $ 11.7 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Senior Preferred Stock [Member] | Junior Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Total Stockholders Equity [Member] | Non-controlling Interest [Member] |
Beginning balance at Dec. 31, 2017 | $ 1,211 | $ 184.8 | $ 0.6 | $ 0.7 | $ 1,565.4 | $ (267.3) | $ (311) | $ 1,173.2 | $ 37.8 | ||
Balance, shares at Dec. 31, 2017 | 16,802,144 | 58,244,308 | 65,285,962 | ||||||||
Net income (loss) | (61.1) | (60.6) | (60.6) | (0.5) | |||||||
Issuance of common stock | 595 | $ 0.3 | 594.7 | 595 | |||||||
Issuance of common stock, shares | 28,695,455 | ||||||||||
Issuance of common stock under share-based compensation plans | 45 | 45 | 45 | ||||||||
Issuance of common stock under share-based compensation plans, shares | 3,225,643 | ||||||||||
Senior preferred dividends declared | $ 7.7 | (7.7) | |||||||||
Conversion of stock | $ (192.5) | $ (0.6) | $ 0.4 | 192.7 | |||||||
Conversion of stock, shares | (16,802,144) | (58,244,308) | 42,246,650 | ||||||||
LifeWorks Disposition | (132.3) | (95.7) | 0.7 | (95) | $ (37.3) | ||||||
Share-based compensation | 23.5 | 23.5 | 23.5 | ||||||||
Foreign currency translation | (48.7) | (48.7) | (48.7) | ||||||||
Change in unrealized (loss) gain, net of tax | (9.3) | (9.3) | (9.3) | ||||||||
Change in minimum pension & postretirement liability, net of tax | (7.6) | (7.6) | (7.6) | ||||||||
Ending balance at Dec. 31, 2018 | $ 1,615.5 | $ 1.4 | 2,325.6 | (335.6) | $ 27.1 | (375.9) | $ (27.1) | 1,615.5 | |||
Balance, shares at Dec. 31, 2018 | 139,453,710 | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | ||||||||||
Net income (loss) | $ 78.7 | 78.7 | 78.7 | ||||||||
Issuance of common stock under share-based compensation plans | 87 | 87 | 87 | ||||||||
Issuance of common stock under share-based compensation plans, shares | 4,932,908 | ||||||||||
Share-based compensation | 36.5 | 36.5 | 36.5 | ||||||||
Foreign currency translation | 29.1 | 29.1 | 29.1 | ||||||||
Change in unrealized (loss) gain, net of tax | 28.1 | 28.1 | 28.1 | ||||||||
Change in minimum pension & postretirement liability, net of tax | 7.4 | 7.4 | 7.4 | ||||||||
Ending balance at Dec. 31, 2019 | 1,882.3 | $ 1.4 | 2,449.1 | (229.8) | (338.4) | 1,882.3 | |||||
Balance, shares at Dec. 31, 2019 | 144,386,618 | ||||||||||
Net income (loss) | (4) | (4) | (4) | ||||||||
Issuance of common stock under share-based compensation plans | 91.7 | $ 0.1 | 91.6 | 91.7 | |||||||
Issuance of common stock under share-based compensation plans, shares | 4,184,794 | ||||||||||
Share-based compensation | 65.8 | 65.8 | 65.8 | ||||||||
Foreign currency translation | 18.7 | 18.7 | 18.7 | ||||||||
Change in unrealized (loss) gain, net of tax | 28.2 | 28.2 | 28.2 | ||||||||
Change in minimum pension & postretirement liability, net of tax | 15.5 | 15.5 | 15.5 | ||||||||
Ending balance at Dec. 31, 2020 | $ 2,098.2 | $ 1.5 | $ 2,606.5 | $ (233.8) | $ (276) | $ 2,098.2 | |||||
Balance, shares at Dec. 31, 2020 | 148,571,412 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | |||
Change in unrealized (loss) gain, tax | $ 10.2 | $ 9.6 | $ (1.2) |
Change in minimum pension & postretirement liability, tax | $ 5.7 | $ 2.4 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Cash Flows [Abstract] | |||
Net (loss) income | $ (4) | $ 78.7 | $ (61.1) |
Loss from discontinued operations | 25.8 | ||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Deferred income tax benefit | (7) | (69.4) | (16.1) |
Depreciation and amortization | 51.8 | 57.1 | 56.6 |
Amortization of debt issuance costs and debt discount | 1.2 | 1.2 | 2.1 |
Loss on debt extinguishment | 25.7 | ||
Lease abandonment costs | 16.8 | ||
Net periodic pension and postretirement cost | 3.3 | 5.2 | 2.7 |
Provision for doubtful accounts | 2 | 3.2 | 0.7 |
Share-based compensation | 65.8 | 36.5 | 23.2 |
Other | 1 | (0.4) | (0.4) |
Changes in operating assets and liabilities excluding effects of acquisitions and divestitures: | |||
Trade and other receivables | (12) | (16.4) | (3.6) |
Prepaid expenses and other current assets | (6.8) | (8) | 0.6 |
Accounts payable and other accrued expenses | (1.4) | 3.8 | (6.4) |
Deferred revenue | (1.2) | 0.8 | 7 |
Employee compensation and benefits | (104) | (11.1) | (22.1) |
Accrued interest | (15.7) | ||
Accrued taxes | (3.7) | (11.1) | 8.4 |
Other assets and liabilities | (32) | (19.5) | (16.7) |
Net cash (used in) provided by operating activities—continuing operations | (30.2) | 50.6 | 10.7 |
Net cash used in operating activities—discontinued operations | (1.2) | ||
Net cash (used in) provided by operating activities | (30.2) | 50.6 | 9.5 |
Cash Flows from Investing Activities | |||
Purchase of customer trust funds marketable securities | (212.4) | (408.4) | (855.2) |
Proceeds from sale and maturity of customer trust funds marketable securities | 369.3 | 374.5 | 844.3 |
Expenditures for property, plant, and equipment | (18.1) | (16.3) | (8) |
Expenditures for software and technology | (41.7) | (38.9) | (32.2) |
Acquisition costs, net of cash acquired | (58.3) | (30.2) | |
Net cash provided by (used in) investing activities | 38.8 | (119.3) | (51.1) |
Cash Flows from Financing Activities | |||
Increase (decrease) in customer trust funds obligations, net | 483.6 | 529.9 | (1,415.1) |
Net proceeds from issuance of stock | 595 | ||
Repayment of long-term debt obligations | (10) | (7.2) | (1,134) |
Proceeds from revolving credit facility | 295 | ||
Repayment of revolving credit facility | (295) | ||
Proceeds from issuance of common stock under share-based compensation plans | 91.7 | 87 | 45.8 |
Proceeds from debt issuance | 680 | ||
Payment of debt refinancing costs | (23.3) | ||
Net cash provided by (used in) financing activities | 565.3 | 609.7 | (1,251.6) |
Effect of Exchange Rate Changes on Cash | (4) | 11.3 | (12.8) |
Net increase (decrease) in cash and equivalents | 569.9 | 552.3 | (1,306) |
Elimination of cash from discontinued operations | 0.5 | ||
Cash, restricted cash, and equivalents at beginning of period | 1,658.6 | 1,106.3 | 2,411.8 |
Cash, restricted cash, and equivalents at end of period | 2,228.5 | 1,658.6 | 1,106.3 |
Reconciliation of cash, restricted cash, and equivalents to the consolidated balance sheets | |||
Cash and equivalents | 188.2 | 281.3 | 217.8 |
Restricted cash and equivalents included in customer trust funds | 2,040.3 | $ 1,377.3 | $ 888.5 |
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:FundsHeldForClients | us-gaap:FundsHeldForClients | |
Cash, restricted cash, and equivalents at end of period | 2,228.5 | $ 1,658.6 | $ 1,106.3 |
Supplemental Cash Flow Information: | |||
Cash paid for interest | 26.7 | 37.4 | 74.5 |
Cash paid for income taxes | 4.2 | 36.2 | 21.1 |
Cash received from income tax refunds | $ 9.6 | $ 0.3 | $ 4.4 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2020 | |
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, 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. While we operate in 14 countries globally, our operations are primarily located in the United States and Canada. Since our initial public offering (“IPO”) on April 30, 2018, we have completed multiple secondary offerings, in which certain of our stockholders (the “Selling Stockholders”) have sold common stock in underwritten public offerings. All proceeds from the sale of this common stock went to the Selling Stockholders. Our secondary offerings were as follows: Date Shares of Common Stock Sold Public Offering Price (per share) March 22, 2019 (including 1,222,142 shares purchased pursuant to the underwriters' option to purchase additional shares on April 3, 2019) 14,222,142 $ 50.50 May 23, 2019 8,000,000 50.50 August 8, 2019 10,000,000 49.75 September 6, 2019 9,000,000 56.30 November 15, 2019 10,000,000 53.08 August 28, 2020 7,717,347 72.18 We incurred $0.4 million, $2.9 million, and $1.3 million of expenses related to our secondary offerings during the years ended December 31, 2020, 2019, and 2018 respectively. Expenses associated with our secondary offerings are recorded within selling, general, and administrative expense in our consolidated statements of operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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 (“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, although Ceridian does not own the grantor trusts. 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. Use of Estimates The preparation of consolidated financial statements in conformity with 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 include 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 equity awards 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, 2020 and 2019, 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 held in custody by 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 $3.1 million and $2.4 million and the reserve for sales adjustments of $4.4 million and $3.7 million as of December 31, 2020, and 2019, 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, Net Our property, plant, and equipment assets are stated at cost less accumulated 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 years Machinery and equipment 4-6 years Computer equipment 3-4 years Repairs and maintenance costs are expensed as incurred. We capitalized interest of $0.5 million and $0.8 million in property, plant, and equipment, net during the years ended December 31, 2020 and 2019, 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 trade names, technology, and non-compete agreements. 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 appropriate, we 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. 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. We assess goodwill impairment risk by comparing the fair value of the net assets with the carrying amount of the reporting unit. We determine the fair value of the reporting unit based on our market capitalization at the testing date. If the carrying amount of the goodwill exceeds the fair value of the reporting unit, goodwill may be impaired. 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 Trade name 3-5 years Technology 3-4 years Indefinite-lived intangible assets, which consist of trade names, 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, we first perform a qualitative review. If the qualitative assessment indicates it is more likely than not the fair value of an indefinite-lived intangible asset is less than the carrying amount, a quantitative test is applied and, 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 trade name. 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 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. Research and development costs, product management, and other software maintenance costs related to software development are expensed as incurred. We had capitalized software costs, net of accumulated amortization, of $78.7 million and $70.4 million as of December 31, 2020, and 2019, respectively, included in property, plant, and equipment, net 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 $30.6 million, $28.3 million, and $26.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. Impairment of Long-Lived Assets Long-lived assets, such as property, plant, and equipment, net, capitalized software, net, 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 16, “Leases” for further information on our impairment of long-lived assets. Deferred Costs Deferred costs primarily consist of deferred sales commissions. Sales commissions paid based on the annual contract value of a signed customer contract are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commission paid based on the annual contract value are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be five years. Deferred costs included within Other assets on our consolidated balance sheets were $132.9 million and $106.4 million as of December 31, 2020 and 2019, respectively. Amortization expense for the deferred costs was $38.8 million, $32.2 million, and $26.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. Revenue Recognition The core principle of ASC Topic 606 is that revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. In accordance with ASC Topic 606, we perform the following steps to determine revenue to be recognized: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. The significant majority of our two major revenue sources (recurring and professional services and other) are derived from contracts with customers. Recurring revenues are primarily related to our cloud subscription performance obligations. Professional services and other revenues are primarily related to professional services for our cloud customers (including implementation services to activate new accounts, as well as post go-live professional services typically billed on a time and materials basis) and, to a much lesser extent, fees for other non-recurring services, including sales of time clocks and certain client reimbursable out-of-pocket expenses. Fees charged to cloud subscription performance obligations are generally priced either on a per-employee, per-month (“PEPM”) basis for a given month or on a per-employee, per-process basis for a given process; and fees charged for professional services are typically priced on a fixed fee basis for activating new accounts and on a time and materials basis for post go-live professional services. There is typically no variable consideration related to our recurring cloud subscriptions or our activation services, nor do they include a significant financing component, non-cash consideration, or consideration payable to a customer. Our recurring cloud subscriptions are typically billed one month in advance while our professional services are billed over the implementation period for activation of new accounts and as work is performed for post go-live professional services. Our cloud services arrangements include multiple performance obligations, and transaction price allocations are based on the stand-alone selling price ("SSP") for each performance obligation. Our contract renewal rates serve as an observable input to establish SSP for our recurring cloud subscription performance obligations. The SSP for professional services performance obligations is estimated based on market conditions and observable inputs, including rates charged by third parties to perform implementation services. For our performance obligations, the consideration allocated to cloud subscription revenues is recognized as recurring revenues, typically commencing when subscription fees begin to be charged to the customer. The consideration allocated to professional services to activate a new account is recognized as professional services revenues based on the proportion of total work performed, using reasonably dependable estimates (in relation to progression through the implementation phase), by solution. 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. For our Dayforce solutions, we primarily charge monthly recurring fees on a per employee, per month (“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. Any credits related to service level commitments are recognized as incurre d , as service level failures 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 1 3 , “ Revenue ,” 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 planning, design, and 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 $39.6 million, $34.1 million, and $29.6 million for the years ended December 31, 2020, 2019, and 2018, 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 marketing events, advertising, telemarketing, direct mail, and trade shows. Advertising costs are expensed as incurred. Advertising expense was $5.5 million, $5.4 million, and $5.8 million for the years ended December 31, 2020, 2019, and 2018, 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 depreciation, and amortization of other intangible assets not reflected in cost of revenue, and the provision for doubtful accounts receivable. Other Expense (Income), Net Other expense (income), net includes the results of transactions that are not appropriately classified in another category. These items are primarily foreign currency translation gains and losses resulting mainly from intercompany receivables and payables denominated in currencies other than the subsidiary’s functional currency and net periodic pension costs. Income Taxes Income taxes have been provided for using the asset and liability method. Deferred tax assets and liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities as adjusted for 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, is reflected in the consolidated financial statements in the period of enactment. We classify interest and penalties related to income taxes as a component of income tax expense (benefit). Fair Value of Financial Instruments The carrying amounts of cash and equivalents, trade and other receivables, net, 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 awards 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. 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, future periods may differ significantly from what we have recorded in the current period and could materially affect our operating results. To determine the fair value of both term- and certain performance-based stock awards, 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 awards. Given our limited history as a public company, the estimated volatility of our common stock is based on volatility data for selected comparable public companies over the expected term of our stock awards. 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. For performance-based stock options with a market condition, a Monte Carlo simulation model is used to determine the fair value. The Monte Carlo model utilizes multiple input variables that determine the probability of satisfying the market conditions stipulated in the award. 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. Pension and Other Postretirement Benefits Liability We present information about our pension and postretirement benefit plans in Note 11, “Employee Benefit Plans” to our consolidated financial statements. Liabilities and expenses for pensions and other postretirement benefits are determined with the assistance of third-party actuaries, using actuarial methodologies and incorporating significant assumptions, including the rate used to discount the future estimated liability, the long-term rate of return on plan assets, and several assumptions relating to the employee workforce (medical costs, retirement age, and mortality). The discount rate assumption utilizes a full yield curve approach by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The impact of a change in the discount rate of 25 basis points would be approximately $13 million on the liabilities and $0.3 million on pre-tax earnings in the following year. The long-term rate of return is estimated by considering historical returns and expected returns on current and projected asset allocations and is generally applied to a five-year average market value of assets. A change in the assumption for the long-term rate of return on plan assets of 25 basis points would impact pre-tax earnings by approximately $1 million. 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 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 subsidiaries that are due to changes in exchange rates between the U.S. dollar and the subsidiaries’ 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 subsidiaries are recorded in the consolidated statements of operations within other expense (income), net. Recently Issued and Adopted Accounting Pronouncements Standard Issuance Date Description Adoption Date Effect on the Financial Statements ASU 2018-14 , Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans August 2018 This amendment modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Additionally, it removes disclosures that are no longer considered cost beneficial, adds disclosures identified as relevant, and clarifies certain specific requirements of disclosures to improve the effectiveness of disclosures in the notes to the financial statements. January 2020 The adoption of this standard did not have a significant impact on our annual defined benefit plan and other postretirement plan disclosures. ASU 2016-13 , Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements June 2016 This amendment replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This is intended to provide financial statement users with more decision-useful information about the expected credit losses. January 2020 The adoption of this standard did not have a significant impact on our financial statements. ASU 2016-02 , Leases (Topic 842) and all related amendments February 2016 This standard requires balance sheet recognition for both financing and operating leases. January 2019 Please refer to Note 16, "Leases," for additional information about our leasing arrangements. ASU 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting March 2020 This amendment provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Not yet adopted This amendment may be elected over time through December 31, 2022 as reference rate reform activities occur. We do not expect the adoption of this guidance to have a significant impact on our financial statements. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 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”). 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: (Dollars in millions) Year Ended December 31, 2018 Net revenues $ 28.3 Loss from operations before income taxes (0.9 ) Income tax expense (24.9 ) Loss from discontinued operations, net of income taxes (25.8 ) Loss attributable to noncontrolling interest (0.5 ) Depreciation and amortization 1.4 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | 4. Business Combinations Excelity On May 29, 2020, we completed the purchase of 100% of the outstanding shares of Excelity Global Solutions Pte. Ltd. (“Excelity”) for $77.2 million in cash consideration. Excelity is a human capital management service provider in the Asia-Pacific region. The financial results of Excelity have been included within our consolidated financial statements from the acquisition date forward and are classified as a Bureau solution. The acquisition of Excelity was recorded using the acquisition method of accounting, in which the assets and liabilities assumed are recognized at their fair value. Intangible assets recorded for this acquisition are related to customer relationships, trade name, and developed technology. The purchase accounting was complete as of December 31, 2020. Of the goodwill associated with this acquisition, $5.1 million is deductible for income tax purposes. After consideration of the Excelity acquisition, management has concluded that we continue to have one operating and reportable segment. This conclusion aligns with how management monitors operating performance, allocates resources, and deploys capital. The major classes of assets and liabilities to which we allocated the purchase price were as follows: (Dollars in millions) Cash and equivalents $ 6.6 Trade receivables, prepaid expenses, and other current assets 13.0 Customer trust funds 12.3 Property, plant, and equipment and other assets 4.2 Goodwill 42.7 Other intangible assets, net 20.7 Accounts payable and other current liabilities (2.2 ) Customer trust funds obligations (13.1 ) Other non-current liabilities (7.0 ) Total purchase price $ 77.2 RITEQ On September 6, 2019, we entered into a purchase agreement with the shareholders of Lusworth Holding Pty Ltd. (“RITEQ”), an Australian-based corporation, to acquire 100% of the issued and outstanding shares of RITEQ for approximately $20.1 million, subject to certain purchase price adjustments. RITEQ is a provider of workforce management solutions and operates within Australia, New Zealand, and the United Kingdom. The share purchase transaction was completed on September 13, 2019. The financial results of RITEQ have been included within our consolidated financial statements as of the acquisition date. The acquisition of RITEQ was recorded using the acquisition method of accounting and recognized the assets and liabilities assumed at their fair value. The allocation of the purchase price to goodwill was completed as of December 31, 2019. The major classes of assets and liabilities to which we allocated the purchase price were as follows: (Dollars in millions) Cash and equivalents $ 0.7 Trade and other receivables, net 1.3 Goodwill 16.7 Other intangible assets, net 4.8 Other assets 1.0 Accounts payable (0.6 ) Deferred revenue (1.3 ) Employee compensation and benefits (1.1 ) Other liabilities (1.4 ) Total purchase price $ 20.1 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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). 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. • 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 Our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in millions) Assets Available for sale customer trust funds assets $ — $ 1,719.1 (a) $ — $ 1,719.1 Total assets measured at fair value $ — $ 1,719.1 $ — $ 1,719.1 December 31, 2019 Level 1 Level 2 Level 3 Total (Dollars in millions) Assets Available for sale customer trust funds assets $ — $ 1,826.8 (a) $ — $ 1,826.8 Total assets measured at fair value $ — $ 1,826.8 $ — $ 1,826.8 (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 Assets acquired and liabilities assumed as part of a business combination are measured at fair value. Please refer to Note 4, “Business Combinations,” for additional information on our business combinations. During the years ended December 31, 2020 and 2019, we did not re-measure any financial assets or liabilities at fair value on a nonrecurring basis. |
Customer Trust Funds
Customer Trust Funds | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Customer Trust Funds | 6. Customer Trust Funds Overview In connection with our U.S., Canadian, and Indian payroll and tax filing services, we collect funds for payment of payroll and taxes; temporarily hold such funds, in trust for the U.S. and Canadian funds, until payment is due; remit the funds to the clients’ employees and appropriate taxing authorities; file federal, state, and local tax returns; and handle related regulatory correspondence and amendments. The assets held 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 protect the principal balance and to ensure adequate liquidity to meet cash flow requirements. Accordingly, we maintain on average approximately 49% 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 51% 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, also referred to as float revenue or float, is 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 $52.3 million, $80.2 million, and $67.0 million for the years ended December 31, 2020, 2019, and 2018, respectively. Investment income includes interest income, realized gains and losses from sales of customer trust funds’ investments, and unrealized credit losses determined to be unrecoverable. The amortized cost of customer trust funds as of December 31, 2020, and 2019, is comprised of the original cost of assets acquired. The amortized cost and fair values of investments of customer trust funds available for sale were as follows: December 31, 2020 Amortized Gross Unrealized Fair Cost Gain Loss Value (Dollars in millions) Money market securities, investments carried at cost and other cash equivalents $ 2,027.1 $ — $ — $ 2,027.1 Available for sale investments: U.S. government and agency securities 494.0 21.6 (0.1 ) 515.5 Canadian and provincial government securities 396.4 15.5 — 411.9 Corporate debt securities 548.5 19.4 — 567.9 Asset-backed securities 192.2 4.9 — 197.1 Mortgage-backed securities 9.9 0.2 — 10.1 Other securities 16.5 0.1 — 16.6 Total available for sale investments 1,657.5 61.7 (0.1 ) 1,719.1 Invested customer trust funds 3,684.6 $ 61.7 $ (0.1 ) 3,746.2 Trust receivables 13.2 13.2 Total customer trust funds $ 3,697.8 $ 3,759.4 December 31, 2019 Amortized Gross Unrealized Fair Cost Gain Loss Value (Dollars in millions) Money market securities, investments carried at cost and other cash equivalents $ 1,348.1 $ — $ — $ 1,348.1 Available for sale investments: U.S. government and agency securities 542.4 7.1 (0.3 ) 549.2 Canadian and provincial government securities 406.7 5.4 (0.7 ) 411.4 Corporate debt securities 562.2 9.0 (0.3 ) 570.9 Asset-backed securities 270.0 1.7 (0.3 ) 271.4 Mortgage-backed securities 19.8 0.2 (0.1 ) 19.9 Other securities 4.0 — — 4.0 Total available for sale investments 1,805.1 23.4 (1.7 ) 1,826.8 Invested customer trust funds 3,153.2 $ 23.4 $ (1.7 ) 3,174.9 Trust receivables (a) 40.4 29.2 Total customer trust funds $ 3,193.6 $ 3,204.1 (a) The fair value of trust receivable as of December 31, 2019, includes a loss of $11.2 million related to unrecovered duplicate Note 17, “Commitments and Contingencies,” for further discussion of the September 26, 2019, isolated service incident. 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. December 31, 2020 Less than 12 months 12 months or more Total Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value (Dollars in millions) U.S. government and agency securities $ (0.1 ) $ 42.1 $ — $ — $ (0.1 ) $ 42.1 Total available for sale investments $ (0.1 ) $ 42.1 $ — $ — $ (0.1 ) $ 42.1 Management does not believe that any individual unrealized loss was unrecoverable as of December 31, 2020. 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, 2020, 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, 2020 Cost Fair Value (Dollars in millions) Due in one year or less $ 2,487.7 $ 2,491.2 Due in one to three years 753.4 785.8 Due in three to five years 335.1 349.1 Due after five years 108.4 120.1 Invested customer trust funds $ 3,684.6 $ 3,746.2 |
Trade and Other Receivables, Ne
Trade and Other Receivables, Net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Trade and Other Receivables, Net | 7. Trade and Other Receivables, Net Trade and other receivables, net, consist of the following: December 31, 2020 2019 (Dollars in millions) Trade receivables from customers $ 95.1 $ 75.7 Interest receivable from invested customer trust funds 1.8 1.3 Other 11.7 9.5 Total gross receivables 108.6 86.5 Less: reserve for sales adjustments (4.4 ) (3.7 ) Less: allowance for doubtful accounts (3.1 ) (2.4 ) Trade and other receivables, net $ 101.1 $ 80.4 The activity related to the allowance for doubtful accounts was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Balance at beginning of year $ 2.4 $ 1.3 $ 1.3 Provision for doubtful accounts 2.0 3.2 0.7 Charge-offs, net of recoveries (1.3 ) (2.1 ) (0.7 ) Balance at end of year $ 3.1 $ 2.4 $ 1.3 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment, Net | 8. Property, Plant, and Equipment, Net Property, plant, and equipment, net consist of the following: December 31, 2020 2019 (Dollars in millions) Land $ 7.5 $ 7.5 Software 306.3 265.0 Machinery and equipment 120.2 116.1 Buildings and improvements 48.9 59.2 Total property, plant, and equipment 482.9 447.8 Accumulated depreciation (346.5 ) (319.5 ) Property, plant, and equipment, net $ 136.4 $ 128.3 Depreciation expense related to property, plant, and equipment, net was $48.0 million, $40.9 million, and $38.1 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 9. Goodwill and Intangible Assets Goodwill Goodwill and changes therein were as follows: (Dollars in millions) Balance at December 31, 2018 $ 1,927.4 Acquisitions 25.7 Translation 20.4 Balance at December 31, 2019 1,973.5 Acquisition 42.7 Translation 15.6 Balance at December 31, 2020 $ 2,031.8 Tax-deductible goodwill at December 31, 2020 $ 23.0 Please refer to Note 4, “Business Combinations,” for further discussion of our RITEQ and Excelity acquisitions. We perform an impairment assessment of our goodwill balances as of October 1 of each year. Goodwill impairment testing is performed at the reporting unit level, which is the operating segment level or one level below. We performed a qualitative assessment as of October 1, 2020 and concluded that it is not more likely than not that the fair value of our reporting unit is less than its carrying amount. Intangible Assets Other intangible assets, net consist of the following: December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) (Dollars in millions) Customer lists and relationships $ 229.0 $ (212.1 ) $ 16.9 5-15 Trade name 177.7 (2.5 ) 175.2 3-5 and Indefinite Technology 159.5 (156.6 ) 2.9 3-4 Total other intangible assets $ 566.2 $ (371.2 ) $ 195.0 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) (Dollars in millions) Customer lists and relationships $ 212.5 $ (208.2 ) $ 4.3 5-15 Trade name 174.0 (2.1 ) 171.9 3 and Indefinite Technology 156.1 (154.4 ) 1.7 3-4 Total other intangible assets $ 542.6 $ (364.7 ) $ 177.9 We perform an impairment assessment of our indefinite-lived intangible assets as of October 1 of each year. We performed a qualitative assessment as of October 1, 2020 and concluded that it is not more likely than not that the fair value of our trade name intangible assets with indefinite lives exceeded their respective carrying amounts. We continue to evaluate the use of our trade names and branding in our sales and marketing efforts. If there is a fundamental shift in the method of our branding in the future, we will assess the impact on the carrying amount of our trade name intangible assets to determine whether an impairment exists. If it is determined that an impairment has occurred, it would be recognized during the period in which the decision was made to make the fundamental shift. Amortization expense related to definite-lived intangible assets was $3.8 million, $16.2 million, and $18.5 million for the years ended December 31, 2020, 2019, and 2018, respectively. We estimate the future amortization of other intangible assets is as follows: Years Ending December 31, Amount (Dollars in millions) 2021 $ 6.2 2022 5.8 2023 5.0 2024 4.3 2025 1.8 Long-Lived Assets by Geographic Area Long-lived assets consist of right of use lease asset, property, plant and equipment, net, goodwill, and other intangible assets, net. Long-lived assets by country consist of the following: December 31, 2020 2019 (Dollars in millions) United States $ 1,796.9 $ 1,800.5 Canada 488.6 481.2 Other 105.6 30.0 Total long-lived assets $ 2,391.1 $ 2,311.7 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Overview Our debt obligations consist of the following: December 31, 2020 2019 (Dollars in millions) Term Debt, interest rate of 2.6% and 4.8%, respectively $ 664.7 $ 671.5 Revolving Credit Facility ($300.0 million available capacity less amounts reserved for letters of credit, which were $0.4 million and $1.9 million, respectively) — — Canada Line of Credit (CDN $7.0 million available capacity, which was fully utilized; USD $5.4 million and USD $5.4 million, respectively) — — Financing lease liabilities (Please refer to Note 16) 8.8 12.4 Total debt 673.5 683.9 Less unamortized discount on Term Debt 1.2 1.4 Less unamortized debt issuance costs on Term Debt 4.5 5.4 Less current portion of long-term debt 7.2 10.8 Long-term debt, less current portion $ 660.6 $ 666.3 Senior Secured Credit Facilities Principal Amounts and Maturity Dates On April 30, 2018, we completed the refinancing of our debt by entering into a new credit agreement. Pursuant to the new credit agreement, we became borrower of (i) a $680.0 million term loan debt facility (the “Term Debt”) and (ii) a $300.0 million revolving credit facility (the “Revolving Credit Facility”) (collectively, the “Senior Secured Credit Facility”). The obligations of Ceridian under the Senior Credit Facilities are secured by first priority security interests in substantially all of the assets of Ceridian and the domestic subsidiary guarantors, subject to permitted liens and certain exceptions. In connection with the refinancing of our debt, we recognized a loss on debt extinguishment of $7.1 million within interest expense, net on our consolidated statement of operations during the year ended December 31, 2018. Interest The effective interest rate on the Term Debt at December 31, 2020, and 2019, was 2.6% and 4.8%, respectively. The Term Debt was initially subject to an interest rate of LIBOR plus 3.25%. As a result of a ratings upgrade on March 26, 2019, of our Senior Secured Credit Facility by Moody’s Investor Service, from B3 to B2, the Company’s floating rate Term Debt interest rate was reduced from LIBOR plus 3.25% to LIBOR plus 3.00%, so long as the rating is maintained. On February 19, 2020, we completed the first amendment to the Senior Secured Credit Facility in which the interest rate was reduced from LIBOR plus 3.00% to LIBOR plus 2.5%. Further, the interest rate trigger under the applicable rating by Moody’s Investor Service was removed by the first amendment. Accrued interest related to the Senior Secured Credit Facility was $0.1 million and $0.1 million as of December 31, 2020, and 2019, respectively, and is included within Other accrued expenses in our consolidated balance sheets. Financing Costs and Issuance Discounts In connection with our debt refinancing, we capitalized $3.6 million of additional financing costs and wrote off $0.5 million of existing unamortized deferred financing costs, which was included in the loss on extinguishment of debt. The Term Debt had associated unamortized deferred financing costs of $5.7 million and $6.8 million at December 31, 2020, and 2019, respectively, which are being amortized at an effective interest rate of 5.3%. Collateral and Guarantees The Senior Secured Credit Facility names us as the sole borrower and is unconditionally guaranteed by our domestic, wholly-owned financially material restricted subsidiaries, subject to certain customary exceptions. The 2018 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 our and the subsidiary guarantors’ tangible and intangible assets. The security interest includes a pledge of the capital stock of certain of our direct and indirect material restricted subsidiaries. Representations, Warranties and Covenants The documents governing the Senior Secured Credit Facility contain certain customary representations and warranties. In addition, those documents contain customary covenants restricting our ability and certain of our 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 Senior Secured Credit Facility documents contain a requirement that we 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 Revolving Credit Facility is drawn. On April 2, 2020, in light of the uncertainty and volatility in the global financial markets resulting from the COVID-19 pandemic, we elected to borrow $295.0 million under the 2018 Revolving Credit Facility as a precautionary measure to increase our cash position and to preserve financial flexibility. In December 2020, we repaid the amount drawn on the revolving credit facility and a Events of Default Events of default under the 2018 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, 2020. Senior Notes General Description On October 1, 2013, we issued the Senior Notes due in 2021 in the principal amount of $475.0 million. Using the net proceeds received from the IPO and concurrent private placement, we satisfied and discharged the indenture governing the 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 extinguishment of debt of $18.6 million within interest expense, net on our consolidated statement of operations during the year ended December 31, 2018. Financing Costs and Issuance Discounts On May 30, 2018, the redemption date, the Senior Notes had unamortized deferred financing costs of $5.5 million, which were included in the loss on extinguishment of debt. Other Information Relating to Indebtedness Future Payments and Maturities of Debt The future principal payments and maturities of our indebtedness, excluding financing lease obligations, are as follows: Years Ending December 31, Amount (Dollars in millions) 2021 $ 6.8 2022 6.8 2023 6.8 2024 6.8 2025 637.5 $ 664.7 We may be required to make additional payments on the 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. There is an excess cash flow calculation associated with the Term Debt, and based on this calculation, we are not required to make a prepayment on the 2018 Term Debt in 2021. 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 $657.6 million and $675.1 million as of December 31, 2020, and 2019, respectively. Other Debt Financing Ceridian Canada had available a committed bank credit facility that provides up to CDN $7.0 million, for issuance of letters of credit as of December 31, 2020 and 2019. The credit facility is a discretionary line at the option of the bank. The amount of letters of credit outstanding under this facility were CDN $7.0 million (USD $5.4 million) and CDN $7.0 million (USD $5.4 million) at December 31, 2020, and 2019, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 11. Employee Benefit Plans Ceridian maintains numerous benefit plans for current and former employees. As of December 31, 2020, our current active benefit plans include defined contribution plans for substantially all employees. The majority of our 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 $11.1 million, $9.8 million, and $8.4 million for the years ended December 31, 2020, 2019, and 2018, respectively, related 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. pension 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. pension 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. pension plan was amended (1) to exclude from further participation any participant or former participant who was not employed by Ceridian 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. pension 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 99% 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. pension plan assets in Ceridian securities is prohibited by the investment policy. In 2020, we contributed $105.0 million to the U.S. defined benefit plan, which represented $17.0 million of required minimum contributions and $88.0 million of voluntary contributions. 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 million in 2020 and expect to make contributions of $1.6 million during 2021. 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, 2020, a 25 basis point decrease in the discount rate would result in a $0.3 million decrease to expense for all pension plans. At December 31, 2020, we updated our mortality assumptions utilizing a new improvement scale issued by the Society of Actuaries in October 2020, which resulted in a $6.0 million reduction in the projected benefit obligation. At December 31, 2019, we updated our mortality assumptions utilizing an improvement scale issued by the Society of Actuaries in October 2019, which resulted in a $8.5 million reduction in the projected benefit obligation. The funded status of defined benefit plans represents the difference between the projected benefit obligation (“PBO”) and the plan assets at fair value. The fair value of plan assets exceeded the PBO of defined benefit plans by $3.5 million at December 31, 2020; whereas the PBO exceeded the fair value of plan assets by $121.6 million at December 31, 2019. We are required to record the funded status as an asset or 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 as follows: Years Ending December 31, Amount (Dollars in millions) 2021 $ 46.4 2022 44.4 2023 42.8 2024 41.2 2025 39.0 Next five years $ 166.9 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, 2020 2019 (Dollars in millions) 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 $ 547.2 $ 527.4 Service cost — — Interest cost 12.7 18.2 Actuarial loss 42.4 49.4 Benefits paid and plan expenses (47.1 ) (47.8 ) Projected benefit obligation at end of year $ 555.2 $ 547.2 Change in Fair Value of Plan Assets During the Year: Plan assets at fair value at beginning of year 425.6 381.6 Actual return on plan assets 73.3 72.0 Employer contributions 106.9 19.8 Benefits paid and plan expenses (47.1 ) (47.8 ) Plan assets at fair value at end of year 558.7 425.6 Funded status of plans $ 3.5 $ (121.6 ) December 31, 2020 2019 (Dollars in millions) Amounts recognized in Consolidated Balance Sheets Noncurrent asset $ 15.8 $ — Current liability 1.5 18.7 Noncurrent liability 10.8 102.9 Amounts recognized in Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax of $51.4 million and $57.8 million, respectively (a) $ 163.3 $ 180.6 (a) A cumulative effect adjustment of $30.8 million related to the adoption of ASC 2018-02 A significant component of the overall increase in the Company’s benefit obligation for the year ended December 31, 2020 was primarily due to the change in discount rates, which decreased from 2.81% at December 31, 2019 to 1.87% at December 31, 2020. The other comprehensive (income) loss related to pension benefit plans was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net actuarial (gain) loss $ (8.0 ) $ 1.0 $ 21.4 Amortization of net actuarial loss (15.7 ) (12.7 ) (14.2 ) Tax expense 6.4 2.9 — Other comprehensive loss (income), net of tax $ (17.3 ) $ (8.8 ) $ 7.2 Year Ended December 31, 2020 2019 2018 Assumptions Used in Calculations Discount rate used to determine net benefit cost 2.81 % 3.92 % 3.25 % Expected return on plan assets 5.70 % 6.00 % 6.30 % Discount rate used to determine benefit obligations 1.87 % 2.81 % 3.92 % Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net Periodic Pension Cost Interest cost $ 12.7 $ 18.2 $ 16.3 Actuarial loss amortization 15.7 12.7 14.2 Less: Expected return on plan assets (22.9 ) (23.6 ) (25.8 ) Net periodic pension cost $ 5.5 $ 7.3 $ 4.7 The accumulated benefit obligation of defined benefit plans was $555.2 million and $547.2 million as of December 31, 2020, and 2019, respectively. Our overall investment strategy for the U.S. pension plan is to achieve a mix of approximately 83% for liability hedging purposes, 15% of investments for long term growth, 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 long term growth assets are 62% public equity, 25% fixed income, and 13% alternative investments. Specifically, the target allocation is managed through investments in fixed income securities, equity funds, collective investment funds, partnerships and other investment types. The underlying 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 corporate debt securities, 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 calculate the fair value of certain investments using net asset value ("NAV") per share. Collective investment funds are valued at the NAV, which is based on the readily determinable fair value of the underlying securities owned by the fund. The NAV unit price is quoted on a private market or one that is not active. Partnerships consist primarily of a bond fund partnership valued at the NAV as reported by the fund manager and an investment in a venture capital fund valued by an independent appraisal. The NAV represents the value at which the defined benefit plan initiates a transaction. These investments do not have any significant unfunded commitments, conditions or restrictions on redemption, or any other significant restriction on their sale. The hedge fund of funds investment has a quarterly redemption restriction with a 65 day notice period. The fair values of our defined benefit plan’s assets by asset category were as follows: December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in millions) Investments, at fair value: Short-term investments $ 83.5 $ — $ — $ 83.5 Government securities — 46.7 — 46.7 Corporate debt securities — 322.4 — 322.4 Collective investment funds — 106.1 — 106.1 Total investments, at fair value $ 83.5 $ 475.2 $ — $ 558.7 December 31, 2019 Level 1 Level 2 Level 3 Total (Dollars in millions) Investments, at fair value: Short-term investments $ 17.5 $ — $ — $ 17.5 Government securities — 137.2 — 137.2 Corporate debt securities — 19.7 — 19.7 Collective investment funds — 251.2 — 251.2 Total investments, at fair value $ 17.5 $ 408.1 $ — $ 425.6 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. 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, 2020, 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, 2020 2019 (Dollars in millions) Funded Status of Postretirement Health Care and Life Insurance Plans Change in Benefit Obligation: At beginning of year $ 15.4 $ 16.8 Interest cost 0.3 0.5 Participant contributions 0.3 0.4 Actuarial gain — (0.7 ) Benefits paid (1.9 ) (1.6 ) At end of year $ 14.1 $ 15.4 Change in Plan Assets: At beginning of year $ — $ — Company contributions 1.6 1.2 Participant contributions 0.3 0.4 Benefits paid (1.9 ) (1.6 ) At end of year — — Funded Status $ (14.1 ) $ (15.4 ) December 31, 2020 2019 (Dollars in millions) Amounts recognized in Consolidated Balance Sheets Current liability $ 1.9 $ 2.1 Noncurrent liability 12.2 13.3 Amounts recognized in Accumulated Other Comprehensive Loss Accumulated other comprehensive income, net of tax of $(5.4) million and $(6.1) million, respectively (a) $ (8.6 ) $ (10.4 ) (a) A cumulative effect adjustment of $3.3 million related to the adoption of ASU 2018-02 was recorded within accumulated other comprehensive income, net of tax during the year ended December 31, 2019 The other comprehensive (income) loss related to postretirement benefits was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net actuarial gain $ — $ (0.7 ) $ (2.1 ) Amortization of net actuarial gain 2.5 2.6 2.5 Tax benefit (0.7 ) (0.5 ) — Other comprehensive loss, net of tax $ 1.8 $ 1.4 $ 0.4 Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net Periodic Postretirement Benefit Interest cost $ 0.3 $ 0.5 $ 0.5 Actuarial gain amortization (2.2 ) (2.3 ) (2.2 ) Prior service credit amortization (0.3 ) (0.3 ) (0.3 ) Net periodic postretirement benefit gain $ (2.2 ) $ (2.1 ) $ (2.0 ) 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 2020 is 6.4% for pre-age 65 retirees and 7.1% 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. Year Ended December 31, 2020 2019 2018 Assumptions Used in Calculations Weighted average discount rate used to determine net periodic postretirement cost (credit) 2.52 % 3.70 % 3.01 % Weighted average discount rate used to determine benefit obligation at measurement date 1.42 % 2.52 % 3.70 % 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 as follows: Years Ending December 31, Payments Receipts (Dollars in millions) 2021 $ 2.0 $ — 2022 1.7 — 2023 1.5 — 2024 1.4 — 2025 1.3 — Next five years $ 4.4 $ 0.1 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 12. Share-Based Compensation Our share-based compensation consists of performance-based stock options, term-based stock options, restricted stock units (“RSUs”), and performance-based stock units (“PSUs”). We also offer an employee stock purchase plan. 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”). 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 December 31, 2020, there were 2,500 stock options outstanding under the 2007 SIP. Stock options awarded under the 2013 SIP vest either annually on a pro rata basis over a four- or five-year 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 and cash settlement of all outstanding stock appreciation rights. We recognized $ 1.5 million of share-based compensation expense related to the vesting of these stock appreciation rights during the year ended December 31, 201 8 . As of December 31, 2020 and 2019, there were no remaining outstanding stock appreciation rights . 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 authorized the issuance of up to 13,500,000 shares of common stock to eligible participants through equity awards (the “Share Reserve”). The Share Reserve may be increased on March 31 of each of the first ten calendar years during the term of the 2018 EIP, by the lesser of (i) three percent of the number of shares of our common stock outstanding on each January 31 immediately prior to the date of increase or (ii) such number of shares of our common stock determined by the Board of Directors. As of March 31, 2020, the Share Reserve was increased by 4,199,089 shares, pursuant to the terms of the 2018 EIP. Equity awards under the 2018 EIP vest either annually or quarterly on a pro rata basis, generally over a one-, three-, or four-year Share-based compensation expense was $65.8 million, $36.5 million, and $24.7 million for the years ended December 31, 2020, 2019, and 2018, respectively. Performance-Based Stock Options Performance-based option activity under the 2007 SIP, the 2013 SIP, and the 2018 EIP 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 (663,412 ) (13.46 ) — — Forfeited or expired (8,358 ) (13.46 ) — — Performance-based options outstanding at December 31, 2018 366,377 $ 13.50 3.1 $ 7.7 Granted — — — — Exercised (298,096 ) (13.48 ) — — Forfeited or expired — — — — Performance-based options outstanding at December 31, 2019 68,281 $ 13.58 2.6 $ 3.7 Granted 1,818,728 65.27 — — Exercised (42,730 ) (13.46 ) — — Forfeited or expired — — — — Performance-based options outstanding at December 31, 2020 1,844,279 $ 64.55 9.2 $ 77.5 Performance-based options exercisable at December 31, 2020 25,551 $ 13.78 1.7 $ 2.4 The performance criteria for all outstanding performance-based stock options granted prior to 2018 was met on June 7, 2018, resulting in vesting on this date. We recognized $4.8 million of share-based compensation expense related to the vesting of these performance-based stock options during the year ended December 31, 2018. In 2020, 1,500,000 performance-based stock options (“the Performance Option Award”) were granted under the 2018 EIP with an exercise price of $65.26. The vesting conditions for the Performance Option Award are based on the Company’s performance on the New York Stock Exchange (“NYSE”) with 750,000 shares available to vest when the Company’s per share closing price on the NYSE meets or exceeds $110.94, or 1.7 times the exercise price, for ten consecutive trading days, and the remaining 750,000 shares are available to vest when the Company’s per share closing price on the NYSE meets or exceeds $130.52, or 2.0 times the exercise price, for ten consecutive trading days. The Performance Option Award has a minimum time-based vesting period of 3 years. The vesting conditions must be achieved prior to May 8, 2025, or any unvested portion of the Performance Option Award will terminate. A Monte Carlo simulation model was used to determine the fair value of these performance-based stock options. The Monte Carlo model utilizes multiple input variables that determine the probability of satisfying the market conditions stipulated in the award. We have estimated an expected term of 5.3 years, based on the vesting period and contractual term. The remaining performance-based stock options granted during the twelve months ended December 31, 2020, under the 2018 EIP primarily include vesting conditions based on migrations of customers to Dayforce. There are two tranches of stock options, in which the vesting conditions must be met either prior to September 13, 2021, or September 13, 2022. As of December 31, 2020, there was $24.3 million of share-based compensation expense related to unvested performance-based stock option awards not yet recognized, which is expected to be recognized over a weighted average period of 3.2 years. Term-Based Stock Options Term-based stock option activity under the 2007 SIP, the 2013 SIP, and the 2018 EIP, 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 5,236,037 23.07 — — Exercised (2,501,983 ) (15.26 ) — — Forfeited or expired (178,466 ) (17.30 ) — — Term-based options outstanding at December 31, 2018 13,549,769 $ 19.28 7.5 $ 206.8 Granted 4,297,472 49.74 — — Exercised (4,358,867 ) (17.37 ) — — Forfeited or expired (343,437 ) (24.14 ) — — Term-based options outstanding at December 31, 2019 13,144,937 $ 29.74 7.8 $ 501.3 Granted 2,282,334 66.06 — — Exercised (3,889,096 ) (20.42 ) — — Forfeited or expired (555,101 ) (32.09 ) — — Term-based options outstanding at December 31, 2020 10,983,074 $ 40.47 7.8 $ 725.9 Term-based options exercisable at December 31, 2020 3,085,305 $ 28.50 6.8 $ 240.9 Other information pertaining to term-based options was as follows: Year Ended December 31, 2020 2019 2018 Weighted average grant date fair value per share $ 21.15 $ 16.12 $ 7.80 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, 2020 2019 2018 Expected volatility 29.8 % 24.9 % 25.0 % Expected dividend rate — — — Risk-free interest rate 0.6 % 2.5 % 2.9 % For stock options granted under the 2013 SIP and 2018 EIP, we estimated an expected term of 7.0 years Restricted Stock Units RSU activity under the 2013 SIP and the 2018 EIP, was as follows: Shares RSUs outstanding at December 31, 2017 605,990 Granted 164,073 Shares issued upon vesting of RSUs (105,990 ) Forfeited or canceled — RSUs outstanding at December 31, 2018 664,073 Granted 193,033 Shares issued upon vesting of RSUs (17,288 ) Forfeited or canceled (20,000 ) RSUs outstanding at December 31, 2019 819,818 Granted 685,997 Shares issued upon vesting of RSUs (73,475 ) Forfeited or canceled (42,955 ) RSUs outstanding at December 31, 2020 1,389,385 RSUs releasable at December 31, 2020 423,479 Other information pertaining to RSUs was as follows: Year Ended December 31, 2020 2019 2018 Weighted average grant date fair value per share $ 69.57 $ 50.00 $ 35.55 During the year ended December 31, 2020, 226,616 RSUs vested, of which 73,475 shares of common stock were issued. four-year Performance Stock Units In 2020, 145,017 PSUs were granted under the 2018 EIP and 9,797 PSUs were forfeited and cancelled. The vesting conditions for the PSUs were based on the Company’s performance against Cloud revenue and adjusted EBITDA margin goals under Ceridian HCM Holding Inc. 2020 Management Incentive Plan (the “2020 MIP”) for the incentive period of January 1, 2020 through December 31, 2020. The vesting conditions for the PSUs were not met for the incentive period and as a result, the PSUs did not vest and no share-based compensation expense was recognized for these awards during the year ended December 31, 2020. Global Employee Stock Purchase Plan On November 9, 2018, the Compensation Committee of the Board of Directors approved the Ceridian HCM Holding Inc. Global Employee Stock Purchase Plan (the “GESPP”), which authorizes the issuance of up to 2,500,000 shares of common stock to eligible participants through purchases via payroll deductions. The purchase price is the lower of (i) 85% of the fair market value of a share of common stock on the offering date (the first trading day of the offering period commencing on January 1 and concluding on December 31) or (ii) 85% of the fair market value of a share of common stock on the purchase date. The GESPP shall continue for ten years, unless terminated sooner as provided under the GESPP. In 2020, quarterly purchase periods commenced on January 1, April 1, July 1, and October 1. Shares were purchased on the last trading day of the respective purchase periods. During 2020, shares were purchased on March 31, June 30, September 30, and December 31. Our GESPP activity was as follows: Year Ended December 31, 2020 2019 Shares issued 182,899 261,895 Purchase price (per share) $ 54.90 $ 28.70 The fair value of the stock purchase rights granted under the GESPP was estimated using the following weighted-average assumptions: Year Ended December 31, 2020 Year Ended December 31, 2019 Expected volatility 46.4 % 34.8 % Expected dividend rate — — Risk-free interest rate 1.1 % 2.2 % Expected term (in years) 0.3 0.4 Grant date fair value per share $ 17.11 $ 9.32 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 13. Revenue Our Solutions We categorize our solutions into two categories: Cloud and Bureau offerings. • Cloud revenue is generated from solutions that are delivered via two cloud offerings, Dayforce and Powerpay . The Dayforce offering is 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 recurring revenue is primarily generated from monthly recurring fees charged on a per-employee, per-month (“PEPM”) basis and the allocation of investment income generated from holding Dayforce customer funds in trust before funds are remitted to taxing authorities, Dayforce customer employees, or other third parties. Dayforce professional services and other revenue is primarily generated from implementation and post go-live professional services revenue. Other sources of Dayforce revenues include revenue from the sale, rental and maintenance of time clocks; revenue from the sale of third-party services; and billable travel expenses for Dayforce customers. The Powerpay offering is our solution designed primarily for small market Canadian customers, which typically have fewer than 20 employees. Powerpay recurring revenue is primarily generated from recurring fees charged on a per-employee, per-process basis and the allocation of investment income generated from holding Powerpay customer funds in trust before funds are remitted to taxing authorities, Powerpay customer employees, or other third parties. Typical processes include the customer’s payroll runs, year-end tax packages, and delivery of customers’ remittance advices or checks. Powerpay professional services revenue is primarily generated from the setup of the Powerpay customer on their platform. • Bureau revenue is generated primarily from 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 Affordable Care Act (“ACA”) management. Additional items included in Bureau revenue are fees for custom professional services to Bureau customers; the allocation of 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; revenue from the sale of third party services to Bureau customers; and Excelity revenue. Customer Information No single customer accounts for 1% or more of our consolidated revenue for any of the periods presented. Disaggregation of Revenue Revenue by solution and category was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Revenue: Cloud Dayforce Recurring services $ 500.2 $ 429.0 $ 325.7 Professional services and other 148.6 140.7 111.8 Total Dayforce revenue 648.8 569.7 437.5 Powerpay Recurring services 79.5 89.0 90.0 Professional services and other 1.1 1.3 1.3 Total Powerpay revenue 80.6 90.3 91.3 Total Cloud revenue 729.4 660.0 528.8 Bureau Recurring services 110.5 162.1 209.3 Professional services and other 2.6 2.0 2.6 Total Bureau revenue 113.1 164.1 211.9 Total revenue $ 842.5 $ 824.1 $ 740.7 Recurring services revenue includes float revenue of $52.3 million, $80.2 million, and $67.0 million for the year ended December 31, 2020, 2019, and 2018, respectively. Revenue by Geographic Area The country in which the revenue is recorded is determined by the legal entity with which the customer has contracted. Revenue by country was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) United States $ 579.3 $ 578.1 $ 513.8 Canada 223.5 237.0 224.0 Other 39.7 9.0 2.9 Total revenue $ 842.5 $ 824.1 $ 740.7 Contract Balances The Company records a contract asset when revenue recognized for professional services performance obligations exceed the contractual amount of billings for implementation related professional services. Contract assets were $55.2 million and $43.2 million as of December 31, 2020, and 2019, respectively. Contract assets expected to be recognized in revenue within twelve months are included within Prepaid expenses and other current assets, with the remaining contract assets included within Other assets on our consolidated balance sheets. Deferred Revenue Deferred revenue primarily consists of payments received in advance of revenue recognition. The changes in deferred revenue were as follows: December 31, 2020 2019 (Dollars in millions) Deferred revenue, beginning of period $ 25.5 $ 23.2 New and acquired billings 432.6 365.5 Revenue recognized (433.9 ) (363.5 ) Effect of exchange rate 0.2 0.3 Deferred revenue, end of period $ 24.4 $ 25.5 Transaction Price for Remaining Performance Obligations In accordance with ASC Topic 606, the following represents the aggregate amount of transaction price allocated to the remaining performance obligations that are unsatisfied as of the end of the reporting period. As of December 31, 20 20 , approximately $ 917.1 million of revenue is expected to be recognized over the next three years from remaining performance obligations, which represents contracted revenue for recurring services and fixed price professional services, primarily implementation services, that has not yet been recognized, including deferred revenue and unbilled amounts that will be recognized as revenue in future periods. In accordance with the practical expedient provided in ASC Topic 606, performance obligations that are billed and recognized as they are delivered, primarily professional services contracts that are on a time and materials basis, are excluded from the transaction price for remaining performance obligations disclosed above. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 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 (Dollars in millions) Balance as of December 31, 2018 $ (207.5 ) $ (18.3 ) $ (150.1 ) $ (375.9 ) Other comprehensive loss before income taxes and reclassifications 29.1 37.7 (0.3 ) 66.5 Income tax benefit — (9.6 ) (2.4 ) (12.0 ) Reclassifications to earnings — — 10.1 10.1 Other comprehensive income 29.1 28.1 7.4 64.6 Cumulative-effect adjustment related to the adoption of ASU 2018-02 — 0.4 (27.5 ) (27.1 ) Balance as of December 31, 2019 (178.4 ) 10.2 (170.2 ) (338.4 ) Other comprehensive loss before income taxes and reclassifications 18.7 38.4 8.0 65.1 Income tax benefit — (10.2 ) (5.7 ) (15.9 ) Reclassifications to earnings — — 13.2 13.2 Other comprehensive income 18.7 28.2 15.5 62.4 Balance as of December 31, 2020 $ (159.7 ) $ 38.4 $ (154.7 ) $ (276.0 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Year Ended December 31, 2020 2019 2018 (Dollars in millions) Components of Earnings and Taxes from Operations Income (Loss) Before Income Taxes: U.S. $ 41.5 $ 25.9 $ (71.4 ) International (61.6 ) 8.4 44.5 Total $ (20.0 ) $ 34.3 $ (26.9 ) Income Tax Expense (Benefit): Current: U.S. $ (6.5 ) $ 7.1 $ 3.8 State and local 0.1 0.4 0.3 International (2.6 ) 17.5 20.4 Total current income tax expense (9.0 ) 25.0 24.5 Deferred: U.S. (1.1 ) (42.6 ) (14.1 ) State and local 0.1 (19.3 ) (2.2 ) International (6.0 ) (7.5 ) 0.2 Total deferred income tax benefit (7.0 ) (69.4 ) (16.1 ) Total income tax (benefit) expense $ (16.0 ) $ (44.4 ) $ 8.4 Year Ended December 31, 2020 2019 2018 Effective Rate Reconciliation U.S. statutory rate% 21.0 % 21.0 % (21.0 )% Change in valuation allowance (0.3 ) (176.1 ) 10.8 State income taxes, net of federal benefit 2.2 3.9 (31.2 ) Share-based compensation 3.9 (5.8 ) (10.0 ) International tax rate differential 8.9 3.8 13.4 Foreign dividend income — — 20.1 Foreign capital gain income (7.5 ) 3.2 7.1 Unremitted foreign earnings 14.5 (2.0 ) 4.1 Global intangible low-taxed income — — 23.0 Base erosion tax 33.9 19.9 14.1 Reserve for tax contingencies 1.2 (0.3 ) 0.4 Change in tax rate — (1.0 ) (5.9 ) Other 2.2 4.0 6.3 Income tax provision% 80.0 % (129.4 )% 31.2 % Our income tax provision represents federal, state, and international taxes on our income recognized for financial statement purposes and includes the effects of temporary differences between financial statement income and income recognized for tax return purposes. Deferred tax assets and liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities. We record a valuation allowance to reduce our deferred tax assets to reflect the net deferred tax assets that we believe will be realized. In assessing the likelihood that we will be able to recover our deferred tax assets and the need for a valuation allowance, we consider all available evidence, both positive and negative, including historical levels of pre-tax book income, expiration of net operating losses, changes in our debt and equity structure, expectations and risks associated with estimates of future taxable income, ongoing prudent and feasible tax planning strategies, as well as current tax laws. As of December 31, 2020, December 31, 2020 2019 (Dollars in millions) 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 $ 9.8 $ 41.6 Other 7.5 — Foreign tax credit carryover and other credit carryovers 0.2 0.3 Net operating loss carryforwards 125.9 82.7 Total gross deferred tax asset 143.4 124.6 Valuation allowance (16.3 ) (15.1 ) Total deferred tax asset $ 127.1 $ 109.5 Deferred Tax Liability: Intangibles $ (61.7 ) $ (57.3 ) Other (55.2 ) (32.0 ) Total deferred tax liability (116.9 ) (89.3 ) Net deferred tax asset (liability) $ 10.2 $ 20.2 December 31, 2020 2019 (Dollars in millions) Net Deferred Tax by Geography U.S. $ 22.0 $ 32.2 International (11.8 ) (12.0 ) Total $ 10.2 $ 20.2 As of December 31, 2020, we had federal, state, and foreign net operating loss carryovers, which will reduce future taxable income when utilized. Approximately $83.2 million in net federal tax benefit is available from the loss carryovers and an additional $0.2 million is available in federal tax credit carryovers. $53.6 million of the federal net operating loss tax benefit will expire from 2031 to 2037. The remaining $29.6 million has an indefinite carryover period. The state loss carryovers and foreign loss carryovers will result in a tax benefit of approximately $34.2 million and $8.5 million, respectively, when utilized. The state net operating loss carryovers will begin to expire in 2021. The majority of the foreign operating loss carryovers have an indefinite carryover period. The federal credit carryovers are composed of foreign tax credits, which will begin to expire in 2021; research credits, which will begin to expire in 2027; and alternative minimum tax credits, which have no expiration date. 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 2016. The following table summarizes the activity for unrecognized tax benefits: Year Ended December 31, 2020 2019 (Dollars in millions) Federal, State and Foreign Tax Beginning unrecognized tax balance $ 1.5 $ 1.3 Increase prior period positions 0.1 0.1 Increase current period positions 0.2 0.2 Decrease prior period positions — (0.1 ) Ending unrecognized tax benefits $ 1.8 $ 1.5 The total amount of unrecognized tax benefits as of December 31, 2020, was $1.8 million including $0.3 million of accrued interest and penalties. Of the total amount of unrecognized tax benefits, $1.8 million represents the amount that, if recognized, would impact our effective income tax rate as of December 31, 2020. 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. The Tax Cut and Jobs Act legislation of 2017 imposed a mandatory transition tax on the unremitted earnings of our international subsidiaries and generally eliminated US taxes on foreign subsidiary distributions for years beginning after December 31, 2017. As of December 31, 2020, we have $288.7 million of unremitted foreign earnings. We consider $236.0 million of the unremitted earnings to be indefinitely reinvested. For the portion of the unremitted earnings not considered indefinitely reinvested, $52.7 million, we have provided a deferred tax liability of $2.6 million, which represents the expected withholding tax cost of repatriating such earnings. In the event the portion of the unremitted earnings considered to be indefinitely reinvested were repatriated, we would incur a withholding tax expense of approximately $11.0 million. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 16. Leases Our leases primarily consist of office space. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning 2019 and later, we account for lease components separately from the non-lease components. Most leases include options to renew, and the lease renewal is at our sole discretion. Therefore, the depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. Our sublease portfolio mainly consists of operating leases for space within our office facilities. Supplemental balance sheet information related to leases was as follows: Lease Type Balance Sheet Classification December 31, 2020 December 31, 2019 (Dollars in millions) ASSETS Operating lease assets Trade and other receivables, net $ 5.4 $ 5.5 Operating lease assets Prepaid expenses and other current assets 2.2 1.2 Operating lease assets Right of use lease asset 27.9 32.0 Financing lease assets Property, plant, and equipment, net 8.0 8.8 Total lease assets $ 43.5 $ 47.5 LIABILITIES Current Financing lease liabilities Current portion of long-term debt $ 0.4 $ 4.0 Operating lease liabilities Current portion of long-term lease liabilities 10.5 8.8 Noncurrent Financing lease liabilities Long-term debt, less current portion 8.4 8.4 Operating lease liabilities Long-term lease liabilities, less current portion 33.6 30.1 Total lease liabilities $ 52.9 $ 51.3 The components of lease expense were as follows: Year Ended December 31, 2020 ASC Topic 842 2019 ASC Topic 842 2018 ASC Topic 840 Lease Cost (Dollars in millions) Operating lease cost $ 9.1 $ 12.8 $ 17.6 Financing lease cost: Depreciation of lease assets 0.8 0.1 — Interest on lease liabilities (a) 0.4 — — Sublease income (4.1 ) (4.4 ) (4.9 ) Net lease cost $ 6.2 $ 8.5 $ 12.7 (a) Interest on lease liabilities was less than $0.1 million for the year ended December 31, 2019. As a result of COVID-19 and our pivot to a virtual working environment, we evaluated our lease portfolio resulting in the decision to close certain office locations and transition the impacted employees to fully virtual work by the end of fiscal 2020. We recognized $16.8 million of charges, which was comprised of $14.7 million of accelerated amortization of the right of use assets and $2.1 million of accelerated depreciation of leasehold improvements, related to the abandonment of the leases associated with these office locations within selling, general and administrative expense in the consolidated statements of operations during the year ended December 31, 2020. Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2020 2019 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1.5 $ 11.2 Operating cash flows from finance leases 0.4 — Financing cash flows from finance leases 3.3 0.4 Lease assets obtained in exchange for new lease liabilities: Operating leases 4.4 3.7 Financing leases — 8.8 The future minimum lease payments under our operating and financing leases were as follows: Years Ending December 31, Amount (Dollars in millions) 2021 $ 11.2 2022 11.3 2023 10.0 2024 8.6 2025 6.7 Thereafter 11.9 Total lease payments (a) $ 59.7 Less: Interest 6.8 Total $ 52.9 (a) Future minimum lease payments have not been reduced by minimum sublease rentals of $6.5 million due in the future under noncancellable subleases. Weighted average remaining lease term and weighted average discount rate were as follows: December 31, 2020 2019 Weighted average remaining lease term (in years) Operating leases 9.0 5.8 Financing leases 10.6 11.6 Weighted average discount rate Operating leases 10.18 % 5.02 % Financing leases 3.91 % 3.91 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. 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 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. Unrecovered Duplicate Payments We identified an isolated service incident on September 26, 2019, that resulted in duplicate payments for certain of our U.S. payroll customers totaling $18.8 million. Through December 31, 2019, $11.2 million remained unrecovered, and we recorded a loss for the amount unrecovered within selling, general, and administrative expense in our consolidated statement of operations for the period ended December 31, 2019. Our recovery efforts continued through the second quarter of 2020, resulting in collections of $0.4 million during the year ended December 31, 2020, which was recognized as a reduction to selling, general, and administrative expense. We are no longer pursuing collection efforts of the remaining amount unrecovered. 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, our 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 our 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, our predecessor entered into an EMA with Seagate related to groundwater contamination on a parcel of real estate sold by our 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. We have recognized an environmental reserve liability equal to the EMA limit. We have recognized an undiscounted liability of approximately $4.8 million and $5.0 million as of December 31, 2020, and 2019, 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. Related Party Transactions Management Agreements Prior to our IPO, Ceridian was party to management agreements with affiliates of THL and Cannae, Fidelity National Financial, Inc. (“FNF”) and THL Managers VI, LLC (“THLM”). FNF assigned its management agreement to Cannae in November 2017. 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 Indebtedness FNF, a related party due to certain shared board members, and its subsidiaries owned a portion of our Senior Notes, which were redeemed on May 30, 2018. 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 $1.7 million, and $1.8 million during the years ended December 31, 2019, and 2018, respectively. We provide services to FleetCor Technologies Inc. (“FleetCor Technologies”), a related party due to a shared board member, through certain commercial arrangements entered into in the ordinary course of business, which include provision of Dayforce services and other administrative services. For these services, we recorded revenue of $0.9 million, $0.8 million, and $2.3 million for the years ended December 31, 2020, 2019, and 2018, respectively. We are a party to a service agreement with The Dun and Bradstreet Corporation (“Dun and Bradstreet”), a related party due to certain shared board members. Pursuant to the service agreement, we made payments to Dun and Bradstreet totaling $0.4 million for the year ended December 31, 2020. We provide Dayforce and related services to The Stronach Group, for which we recorded revenue of $0.1 million, $0.2 million, and $0.3 million for the years ended December 31, 2020, 2019, and 2018, respectively. The brother of our chief executive officer was the chief executive officer, and is currently a minority shareholder, of The Stronach Group. We provide Dayforce and related services to Verve Senior Living, for which we recorded revenue of $0.5 million for the year ended December 31, 2020. Our chief executive officer and the brother of our chief executive officer are currently minority shareholders of Verve Senior Living. We provide payroll-related tax filing services to FNF, for which we recorded revenue of $0.4 million, $0.4 million, and $0.4 million for the years ended December 31, 2020, 2019, and 2018, respectively. We provide Dayforce and related services to Cannae Holdings, Inc. and related entities, for which we recorded revenue of $0.2 million, and $0.2 million for the years ended December 31, 2019, and 2018, respectively. We provide Dayforce and related services to certain investment portfolio companies of THL and Cannae. Revenue from these portfolio companies was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) American Blue Ribbon Holdings, LLC $ 1.3 $ 1.6 $ 1.8 Black Knight Sports and Entertainment, LLC — 0.2 — Essex Technology Group, LLC 0.5 0.5 0.5 Guaranteed Rate, Inc. 0.9 0.8 0.5 Hightower Holding, LLC 0.2 0.2 0.1 Philips Feed Services, Inc. 0.3 0.3 0.3 System One Holdings LLC — — 0.3 Ten-X, LLC 0.2 0.4 — |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Capital Stock | 19. Capital Stock As of October 1, 2013, 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 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 with a par value of $0.01 per share. In April 2018, the Board of Directors increased the number of authorized shares of common stock to 500,000,000 and decreased the number of authorized shares of preferred stock to 10,000,000 . On April 30, 2018, we completed our IPO, in which we issued a total of 24,150,000 shares of common stock at a public offering price of $22.00. Concurrently with our IPO, we issued an additional 4,545,455 shares of our common stock in a private placement at $22.00 per share. Concurrent with the IPO and private placement, all outstanding preferred stock was automatically converted into common shares pursuant to its terms. As of December 31, 2020 and 2019, there were 148,571,412 and 144,386,618 shares of common stock issued and outstanding, respectively. Holders of our common stock are entitled to the rights set forth as follows. Directors are elected by a plurality of the votes entitled to be cast except as set forth below with respect to directors to be elected by the holders of common stock. Our stockholders do not have cumulative voting rights. Except as otherwise provided in our third amended and restated certificate of incorporation or as required by law, all matters to be voted on by our stockholders other than matters relating to the elections and removal of directors must be approved by a majority of the shares present in person or by proxy at the meeting and entitled to vote on the subject matter or by a written resolution of the stockholders representing the number of affirmative votes required for such matter at a meeting. Our stockholders have no preemptive or other rights to subscribe for additional shares. All holders of our common stock are entitled to share equally on a share-for-share basis in any assets available for distribution to common stockholders upon our liquidation, dissolution or winding up. All outstanding shares are validly issued, fully paid and nonassessable. |
Net (Loss) Income per Share
Net (Loss) Income per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income per Share | 20. Net (Loss) Income per Share We compute net (loss) income per share of common stock using the treasury stock method. Basic net (loss) income per share is computed by dividing net (loss) income 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) income per share, net (loss) income per share is adjusted by the effect of dilutive securities, including awards under our share-based compensation plans. Diluted net (loss) income per share is computed by dividing the resulting net (loss) income attributable to Ceridian available to common stockholders by the weighted-average number of fully diluted common shares outstanding. In the years ended December 31, 2020 and 2018, 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 basic and diluted net (loss) income per share computations were calculated as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions, except share and per share data) Numerator: Net (loss) income attributable to Ceridian $ (4.0 ) $ 78.7 $ (60.6 ) Less: Loss from discontinued operations — — (25.8 ) Net (loss) income from continuing operations attributable to Ceridian (4.0 ) 78.7 (34.8 ) Less: Senior Preferred Stock dividends declared — — 7.7 Net (loss) income from continuing operations attributable to Ceridian available to common stockholders $ (4.0 ) $ 78.7 $ (42.5 ) Denominator: Weighted-average shares outstanding—basic 146,774,471 142,049,112 114,049,682 Effect of dilutive equity instruments — 6,707,480 — Weighted-average shares outstanding—diluted 146,774,471 148,756,592 114,049,682 Net (loss) income per share from continuing operations attributable to Ceridian—basic $ (0.03 ) $ 0.55 $ (0.37 ) Net loss per share from discontinued operations—basic $ — $ — $ (0.23 ) Net (loss) income per share attributable to Ceridian—basic $ (0.03 ) $ 0.55 $ (0.60 ) Net (loss) income per share from continuing operations attributable to Ceridian—diluted $ (0.03 ) $ 0.53 $ (0.37 ) Net loss per share from discontinued operations—diluted $ — $ — $ (0.23 ) Net (loss) income per share attributable to Ceridian—diluted $ (0.03 ) $ 0.53 $ (0.60 ) The following potentially dilutive shares were excluded from the calculation of diluted net (loss) income per share because their effect would have been anti-dilutive: Year Ended December 31, 2020 2019 2018 Senior convertible preferred stock — — 5,523,993 Junior convertible preferred stock — — 19,148,814 Term-based stock options 7,135,159 3,307,719 14,227,487 Restricted stock units 745,955 18,980 587,283 Performance stock units 229,433 — — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events On February 1, 2021, we entered into a definitive share sale agreement to acquire all of the issued and outstanding shares of Ascender HCM Pty Ltd, a payroll and HR solutions provider in the Asia Pacific Japan region. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“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, although Ceridian does not own the grantor trusts. 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. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with 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 include 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 equity awards 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 | Cash and Equivalents As of December 31, 2020 and 2019, 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 held in custody by 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 $3.1 million and $2.4 million and the reserve for sales adjustments of $4.4 million and $3.7 million as of December 31, 2020, and 2019, 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, Net | Property, Plant, and Equipment, Net Our property, plant, and equipment assets are stated at cost less accumulated 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 years Machinery and equipment 4-6 years Computer equipment 3-4 years Repairs and maintenance costs are expensed as incurred. We capitalized interest of $0.5 million and $0.8 million in property, plant, and equipment, net during the years ended December 31, 2020 and 2019, 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 trade names, technology, and non-compete agreements. 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 appropriate, we 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. |
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. We assess goodwill impairment risk by comparing the fair value of the net assets with the carrying amount of the reporting unit. We determine the fair value of the reporting unit based on our market capitalization at the testing date. If the carrying amount of the goodwill exceeds the fair value of the reporting unit, goodwill may be impaired. 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 Trade name 3-5 years Technology 3-4 years Indefinite-lived intangible assets, which consist of trade names, 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, we first perform a qualitative review. If the qualitative assessment indicates it is more likely than not the fair value of an indefinite-lived intangible asset is less than the carrying amount, a quantitative test is applied and, 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 trade name. 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 | 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. Research and development costs, product management, and other software maintenance costs related to software development are expensed as incurred. We had capitalized software costs, net of accumulated amortization, of $78.7 million and $70.4 million as of December 31, 2020, and 2019, respectively, included in property, plant, and equipment, net 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 $30.6 million, $28.3 million, and $26.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property, plant, and equipment, net, capitalized software, net, 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 16, “Leases” for further information on our impairment of long-lived assets. |
Deferred Costs | Deferred Costs Deferred costs primarily consist of deferred sales commissions. Sales commissions paid based on the annual contract value of a signed customer contract are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commission paid based on the annual contract value are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be five years. Deferred costs included within Other assets on our consolidated balance sheets were $132.9 million and $106.4 million as of December 31, 2020 and 2019, respectively. Amortization expense for the deferred costs was $38.8 million, $32.2 million, and $26.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Revenue Recognition | Revenue Recognition The core principle of ASC Topic 606 is that revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. In accordance with ASC Topic 606, we perform the following steps to determine revenue to be recognized: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. The significant majority of our two major revenue sources (recurring and professional services and other) are derived from contracts with customers. Recurring revenues are primarily related to our cloud subscription performance obligations. Professional services and other revenues are primarily related to professional services for our cloud customers (including implementation services to activate new accounts, as well as post go-live professional services typically billed on a time and materials basis) and, to a much lesser extent, fees for other non-recurring services, including sales of time clocks and certain client reimbursable out-of-pocket expenses. Fees charged to cloud subscription performance obligations are generally priced either on a per-employee, per-month (“PEPM”) basis for a given month or on a per-employee, per-process basis for a given process; and fees charged for professional services are typically priced on a fixed fee basis for activating new accounts and on a time and materials basis for post go-live professional services. There is typically no variable consideration related to our recurring cloud subscriptions or our activation services, nor do they include a significant financing component, non-cash consideration, or consideration payable to a customer. Our recurring cloud subscriptions are typically billed one month in advance while our professional services are billed over the implementation period for activation of new accounts and as work is performed for post go-live professional services. Our cloud services arrangements include multiple performance obligations, and transaction price allocations are based on the stand-alone selling price ("SSP") for each performance obligation. Our contract renewal rates serve as an observable input to establish SSP for our recurring cloud subscription performance obligations. The SSP for professional services performance obligations is estimated based on market conditions and observable inputs, including rates charged by third parties to perform implementation services. For our performance obligations, the consideration allocated to cloud subscription revenues is recognized as recurring revenues, typically commencing when subscription fees begin to be charged to the customer. The consideration allocated to professional services to activate a new account is recognized as professional services revenues based on the proportion of total work performed, using reasonably dependable estimates (in relation to progression through the implementation phase), by solution. |
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. For our Dayforce solutions, we primarily charge monthly recurring fees on a per employee, per month (“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. Any credits related to service level commitments are recognized as incurre d , as service level failures 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 1 3 , “ Revenue ,” 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 planning, design, and 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 $39.6 million, $34.1 million, and $29.6 million for the years ended December 31, 2020, 2019, and 2018, 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 marketing events, advertising, telemarketing, direct mail, and trade shows. Advertising costs are expensed as incurred. Advertising expense was $5.5 million, $5.4 million, and $5.8 million for the years ended December 31, 2020, 2019, and 2018, 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 depreciation, and amortization of other intangible assets not reflected in cost of revenue, and the provision for doubtful accounts receivable. |
Other Expense (Income), Net | Other Expense (Income), Net Other expense (income), net includes the results of transactions that are not appropriately classified in another category. These items are primarily foreign currency translation gains and losses resulting mainly from intercompany receivables and payables denominated in currencies other than the subsidiary’s functional currency and net periodic pension costs. |
Income Taxes | Income Taxes Income taxes have been provided for using the asset and liability method. Deferred tax assets and liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities as adjusted for 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, is reflected in the consolidated financial statements in the period of enactment. We classify interest and penalties related to income taxes as a component of income tax expense (benefit). |
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 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 awards 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. 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, future periods may differ significantly from what we have recorded in the current period and could materially affect our operating results. To determine the fair value of both term- and certain performance-based stock awards, 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 awards. Given our limited history as a public company, the estimated volatility of our common stock is based on volatility data for selected comparable public companies over the expected term of our stock awards. 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. For performance-based stock options with a market condition, a Monte Carlo simulation model is used to determine the fair value. The Monte Carlo model utilizes multiple input variables that determine the probability of satisfying the market conditions stipulated in the award. 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. |
Pension and Other Postretirement Benefits Liability | Pension and Other Postretirement Benefits Liability We present information about our pension and postretirement benefit plans in Note 11, “Employee Benefit Plans” to our consolidated financial statements. Liabilities and expenses for pensions and other postretirement benefits are determined with the assistance of third-party actuaries, using actuarial methodologies and incorporating significant assumptions, including the rate used to discount the future estimated liability, the long-term rate of return on plan assets, and several assumptions relating to the employee workforce (medical costs, retirement age, and mortality). The discount rate assumption utilizes a full yield curve approach by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The impact of a change in the discount rate of 25 basis points would be approximately $13 million on the liabilities and $0.3 million on pre-tax earnings in the following year. The long-term rate of return is estimated by considering historical returns and expected returns on current and projected asset allocations and is generally applied to a five-year average market value of assets. A change in the assumption for the long-term rate of return on plan assets of 25 basis points would impact pre-tax earnings by approximately $1 million. |
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 exchange rates and foreign currency denominated statements of operations at the 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 subsidiaries that are due to changes in exchange rates between the U.S. dollar and the subsidiaries’ 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 subsidiaries are recorded in the consolidated statements of operations within other expense (income), net. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements Standard Issuance Date Description Adoption Date Effect on the Financial Statements ASU 2018-14 , Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans August 2018 This amendment modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Additionally, it removes disclosures that are no longer considered cost beneficial, adds disclosures identified as relevant, and clarifies certain specific requirements of disclosures to improve the effectiveness of disclosures in the notes to the financial statements. January 2020 The adoption of this standard did not have a significant impact on our annual defined benefit plan and other postretirement plan disclosures. ASU 2016-13 , Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements June 2016 This amendment replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This is intended to provide financial statement users with more decision-useful information about the expected credit losses. January 2020 The adoption of this standard did not have a significant impact on our financial statements. ASU 2016-02 , Leases (Topic 842) and all related amendments February 2016 This standard requires balance sheet recognition for both financing and operating leases. January 2019 Please refer to Note 16, "Leases," for additional information about our leasing arrangements. ASU 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting March 2020 This amendment provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Not yet adopted This amendment may be elected over time through December 31, 2022 as reference rate reform activities occur. We do not expect the adoption of this guidance to have a significant impact on our financial statements. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Secondary Offerings | Our secondary offerings were as follows Date Shares of Common Stock Sold Public Offering Price (per share) March 22, 2019 (including 1,222,142 shares purchased pursuant to the underwriters' option to purchase additional shares on April 3, 2019) 14,222,142 $ 50.50 May 23, 2019 8,000,000 50.50 August 8, 2019 10,000,000 49.75 September 6, 2019 9,000,000 56.30 November 15, 2019 10,000,000 53.08 August 28, 2020 7,717,347 72.18 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Estimated useful life of Property, Plant, and Equipment, Net | Property, Plant, and Equipment, Net Our property, plant, and equipment assets are stated at cost less accumulated 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 years Machinery and equipment 4-6 years Computer equipment 3-4 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 Trade name 3-5 years Technology 3-4 years |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: (Dollars in millions) Year Ended December 31, 2018 Net revenues $ 28.3 Loss from operations before income taxes (0.9 ) Income tax expense (24.9 ) Loss from discontinued operations, net of income taxes (25.8 ) Loss attributable to noncontrolling interest (0.5 ) Depreciation and amortization 1.4 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Excelity Global Solutions Pte. Ltd. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Major Classes of Assets and Liabilities Allocated to Purchase Price | The major classes of assets and liabilities to which we allocated the purchase price were as follows: (Dollars in millions) Cash and equivalents $ 6.6 Trade receivables, prepaid expenses, and other current assets 13.0 Customer trust funds 12.3 Property, plant, and equipment and other assets 4.2 Goodwill 42.7 Other intangible assets, net 20.7 Accounts payable and other current liabilities (2.2 ) Customer trust funds obligations (13.1 ) Other non-current liabilities (7.0 ) Total purchase price $ 77.2 |
RITEQ [Member] | |
Business Acquisition [Line Items] | |
Schedule of Major Classes of Assets and Liabilities Allocated to Purchase Price | The major classes of assets and liabilities to which we allocated the purchase price were as follows: (Dollars in millions) Cash and equivalents $ 0.7 Trade and other receivables, net 1.3 Goodwill 16.7 Other intangible assets, net 4.8 Other assets 1.0 Accounts payable (0.6 ) Deferred revenue (1.3 ) Employee compensation and benefits (1.1 ) Other liabilities (1.4 ) Total purchase price $ 20.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows: December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in millions) Assets Available for sale customer trust funds assets $ — $ 1,719.1 (a) $ — $ 1,719.1 Total assets measured at fair value $ — $ 1,719.1 $ — $ 1,719.1 December 31, 2019 Level 1 Level 2 Level 3 Total (Dollars in millions) Assets Available for sale customer trust funds assets $ — $ 1,826.8 (a) $ — $ 1,826.8 Total assets measured at fair value $ — $ 1,826.8 $ — $ 1,826.8 (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) | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Values of Investments of Customer Trust Funds Available for Sale | December 31, 2020 Amortized Gross Unrealized Fair Cost Gain Loss Value (Dollars in millions) Money market securities, investments carried at cost and other cash equivalents $ 2,027.1 $ — $ — $ 2,027.1 Available for sale investments: U.S. government and agency securities 494.0 21.6 (0.1 ) 515.5 Canadian and provincial government securities 396.4 15.5 — 411.9 Corporate debt securities 548.5 19.4 — 567.9 Asset-backed securities 192.2 4.9 — 197.1 Mortgage-backed securities 9.9 0.2 — 10.1 Other securities 16.5 0.1 — 16.6 Total available for sale investments 1,657.5 61.7 (0.1 ) 1,719.1 Invested customer trust funds 3,684.6 $ 61.7 $ (0.1 ) 3,746.2 Trust receivables 13.2 13.2 Total customer trust funds $ 3,697.8 $ 3,759.4 December 31, 2019 Amortized Gross Unrealized Fair Cost Gain Loss Value (Dollars in millions) Money market securities, investments carried at cost and other cash equivalents $ 1,348.1 $ — $ — $ 1,348.1 Available for sale investments: U.S. government and agency securities 542.4 7.1 (0.3 ) 549.2 Canadian and provincial government securities 406.7 5.4 (0.7 ) 411.4 Corporate debt securities 562.2 9.0 (0.3 ) 570.9 Asset-backed securities 270.0 1.7 (0.3 ) 271.4 Mortgage-backed securities 19.8 0.2 (0.1 ) 19.9 Other securities 4.0 — — 4.0 Total available for sale investments 1,805.1 23.4 (1.7 ) 1,826.8 Invested customer trust funds 3,153.2 $ 23.4 $ (1.7 ) 3,174.9 Trust receivables (a) 40.4 29.2 Total customer trust funds $ 3,193.6 $ 3,204.1 (a) The fair value of trust receivable as of December 31, 2019, includes a loss of $11.2 million related to unrecovered duplicate Note 17, “Commitments and Contingencies,” for further discussion of the September 26, 2019, isolated service incident. |
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. December 31, 2020 Less than 12 months 12 months or more Total Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value (Dollars in millions) U.S. government and agency securities $ (0.1 ) $ 42.1 $ — $ — $ (0.1 ) $ 42.1 Total available for sale investments $ (0.1 ) $ 42.1 $ — $ — $ (0.1 ) $ 42.1 |
Schedule of Amortized Cost and Fair Value of Investment Securities Available for Sale by Contractual Maturity | The amortized cost and fair value of investment securities available for sale at December 31, 2020, 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, 2020 Cost Fair Value (Dollars in millions) Due in one year or less $ 2,487.7 $ 2,491.2 Due in one to three years 753.4 785.8 Due in three to five years 335.1 349.1 Due after five years 108.4 120.1 Invested customer trust funds $ 3,684.6 $ 3,746.2 |
Trade and Other Receivables, _2
Trade and Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Trade and Other Receivables, Net | Trade and other receivables, net, consist of the following: December 31, 2020 2019 (Dollars in millions) Trade receivables from customers $ 95.1 $ 75.7 Interest receivable from invested customer trust funds 1.8 1.3 Other 11.7 9.5 Total gross receivables 108.6 86.5 Less: reserve for sales adjustments (4.4 ) (3.7 ) Less: allowance for doubtful accounts (3.1 ) (2.4 ) Trade and other receivables, net $ 101.1 $ 80.4 |
Activity Related to Allowance for Doubtful Accounts | The activity related to the allowance for doubtful accounts was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Balance at beginning of year $ 2.4 $ 1.3 $ 1.3 Provision for doubtful accounts 2.0 3.2 0.7 Charge-offs, net of recoveries (1.3 ) (2.1 ) (0.7 ) Balance at end of year $ 3.1 $ 2.4 $ 1.3 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment, Net | Property, plant, and equipment, net consist of the following: December 31, 2020 2019 (Dollars in millions) Land $ 7.5 $ 7.5 Software 306.3 265.0 Machinery and equipment 120.2 116.1 Buildings and improvements 48.9 59.2 Total property, plant, and equipment 482.9 447.8 Accumulated depreciation (346.5 ) (319.5 ) Property, plant, and equipment, net $ 136.4 $ 128.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | Goodwill and changes therein were as follows: (Dollars in millions) Balance at December 31, 2018 $ 1,927.4 Acquisitions 25.7 Translation 20.4 Balance at December 31, 2019 1,973.5 Acquisition 42.7 Translation 15.6 Balance at December 31, 2020 $ 2,031.8 Tax-deductible goodwill at December 31, 2020 $ 23.0 |
Schedule of Other Intangible Assets Net | Other intangible assets, net consist of the following: December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) (Dollars in millions) Customer lists and relationships $ 229.0 $ (212.1 ) $ 16.9 5-15 Trade name 177.7 (2.5 ) 175.2 3-5 and Indefinite Technology 159.5 (156.6 ) 2.9 3-4 Total other intangible assets $ 566.2 $ (371.2 ) $ 195.0 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Estimated Life Range (Years) (Dollars in millions) Customer lists and relationships $ 212.5 $ (208.2 ) $ 4.3 5-15 Trade name 174.0 (2.1 ) 171.9 3 and Indefinite Technology 156.1 (154.4 ) 1.7 3-4 Total other intangible assets $ 542.6 $ (364.7 ) $ 177.9 |
Estimated Future Amortization of Other Intangible Assets | We estimate the future amortization of other intangible assets is as follows: Years Ending December 31, Amount (Dollars in millions) 2021 $ 6.2 2022 5.8 2023 5.0 2024 4.3 2025 1.8 |
Schedule of Long-Lived Assets | Long-lived assets consist of right of use lease asset, property, plant and equipment, net, goodwill, and other intangible assets, net. Long-lived assets by country consist of the following: December 31, 2020 2019 (Dollars in millions) United States $ 1,796.9 $ 1,800.5 Canada 488.6 481.2 Other 105.6 30.0 Total long-lived assets $ 2,391.1 $ 2,311.7 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | Our debt obligations consist of the following: December 31, 2020 2019 (Dollars in millions) Term Debt, interest rate of 2.6% and 4.8%, respectively $ 664.7 $ 671.5 Revolving Credit Facility ($300.0 million available capacity less amounts reserved for letters of credit, which were $0.4 million and $1.9 million, respectively) — — Canada Line of Credit (CDN $7.0 million available capacity, which was fully utilized; USD $5.4 million and USD $5.4 million, respectively) — — Financing lease liabilities (Please refer to Note 16) 8.8 12.4 Total debt 673.5 683.9 Less unamortized discount on Term Debt 1.2 1.4 Less unamortized debt issuance costs on Term Debt 4.5 5.4 Less current portion of long-term debt 7.2 10.8 Long-term debt, less current portion $ 660.6 $ 666.3 |
Schedule of Future Principal Payments and Maturities of Indebtedness, Excluding Financing Lease Obligations | The future principal payments and maturities of our indebtedness, excluding financing lease obligations, are as follows: Years Ending December 31, Amount (Dollars in millions) 2021 $ 6.8 2022 6.8 2023 6.8 2024 6.8 2025 637.5 $ 664.7 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Future Payments to Participants from Defined Benefit Plans | The projected future payments to participants from defined benefit plans are as follows: Years Ending December 31, Amount (Dollars in millions) 2021 $ 46.4 2022 44.4 2023 42.8 2024 41.2 2025 39.0 Next five years $ 166.9 |
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, 2020 2019 (Dollars in millions) 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 $ 547.2 $ 527.4 Service cost — — Interest cost 12.7 18.2 Actuarial loss 42.4 49.4 Benefits paid and plan expenses (47.1 ) (47.8 ) Projected benefit obligation at end of year $ 555.2 $ 547.2 Change in Fair Value of Plan Assets During the Year: Plan assets at fair value at beginning of year 425.6 381.6 Actual return on plan assets 73.3 72.0 Employer contributions 106.9 19.8 Benefits paid and plan expenses (47.1 ) (47.8 ) Plan assets at fair value at end of year 558.7 425.6 Funded status of plans $ 3.5 $ (121.6 ) December 31, 2020 2019 (Dollars in millions) Amounts recognized in Consolidated Balance Sheets Noncurrent asset $ 15.8 $ — Current liability 1.5 18.7 Noncurrent liability 10.8 102.9 Amounts recognized in Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax of $51.4 million and $57.8 million, respectively (a) $ 163.3 $ 180.6 (a) A cumulative effect adjustment of $30.8 million related to the adoption of ASC 2018-02 |
Schedule of Other Comprehensive (Income) Loss Related to Pension Benefit Plans and Postretirement Benefits | The other comprehensive (income) loss related to postretirement benefits was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net actuarial gain $ — $ (0.7 ) $ (2.1 ) Amortization of net actuarial gain 2.5 2.6 2.5 Tax benefit (0.7 ) (0.5 ) — Other comprehensive loss, net of tax $ 1.8 $ 1.4 $ 0.4 Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net Periodic Postretirement Benefit Interest cost $ 0.3 $ 0.5 $ 0.5 Actuarial gain amortization (2.2 ) (2.3 ) (2.2 ) Prior service credit amortization (0.3 ) (0.3 ) (0.3 ) Net periodic postretirement benefit gain $ (2.2 ) $ (2.1 ) $ (2.0 ) Year Ended December 31, 2020 2019 2018 Assumptions Used in Calculations Weighted average discount rate used to determine net periodic postretirement cost (credit) 2.52 % 3.70 % 3.01 % Weighted average discount rate used to determine benefit obligation at measurement date 1.42 % 2.52 % 3.70 % |
Schedule of Fair Value of Defined Benefit Plan Assets | The fair values of our defined benefit plan’s assets by asset category were as follows: December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in millions) Investments, at fair value: Short-term investments $ 83.5 $ — $ — $ 83.5 Government securities — 46.7 — 46.7 Corporate debt securities — 322.4 — 322.4 Collective investment funds — 106.1 — 106.1 Total investments, at fair value $ 83.5 $ 475.2 $ — $ 558.7 December 31, 2019 Level 1 Level 2 Level 3 Total (Dollars in millions) Investments, at fair value: Short-term investments $ 17.5 $ — $ — $ 17.5 Government securities — 137.2 — 137.2 Corporate debt securities — 19.7 — 19.7 Collective investment funds — 251.2 — 251.2 Total investments, at fair value $ 17.5 $ 408.1 $ — $ 425.6 |
Schedule Of Expected Benefit Payments And Receipts Table Text Block | 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 as follows: Years Ending December 31, Payments Receipts (Dollars in millions) 2021 $ 2.0 $ — 2022 1.7 — 2023 1.5 — 2024 1.4 — 2025 1.3 — Next five years $ 4.4 $ 0.1 |
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 was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net actuarial (gain) loss $ (8.0 ) $ 1.0 $ 21.4 Amortization of net actuarial loss (15.7 ) (12.7 ) (14.2 ) Tax expense 6.4 2.9 — Other comprehensive loss (income), net of tax $ (17.3 ) $ (8.8 ) $ 7.2 Year Ended December 31, 2020 2019 2018 Assumptions Used in Calculations Discount rate used to determine net benefit cost 2.81 % 3.92 % 3.25 % Expected return on plan assets 5.70 % 6.00 % 6.30 % Discount rate used to determine benefit obligations 1.87 % 2.81 % 3.92 % Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net Periodic Pension Cost Interest cost $ 12.7 $ 18.2 $ 16.3 Actuarial loss amortization 15.7 12.7 14.2 Less: Expected return on plan assets (22.9 ) (23.6 ) (25.8 ) Net periodic pension cost $ 5.5 $ 7.3 $ 4.7 |
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, 2020 2019 (Dollars in millions) Funded Status of Postretirement Health Care and Life Insurance Plans Change in Benefit Obligation: At beginning of year $ 15.4 $ 16.8 Interest cost 0.3 0.5 Participant contributions 0.3 0.4 Actuarial gain — (0.7 ) Benefits paid (1.9 ) (1.6 ) At end of year $ 14.1 $ 15.4 Change in Plan Assets: At beginning of year $ — $ — Company contributions 1.6 1.2 Participant contributions 0.3 0.4 Benefits paid (1.9 ) (1.6 ) At end of year — — Funded Status $ (14.1 ) $ (15.4 ) December 31, 2020 2019 (Dollars in millions) Amounts recognized in Consolidated Balance Sheets Current liability $ 1.9 $ 2.1 Noncurrent liability 12.2 13.3 Amounts recognized in Accumulated Other Comprehensive Loss Accumulated other comprehensive income, net of tax of $(5.4) million and $(6.1) million, respectively (a) $ (8.6 ) $ (10.4 ) (a) A cumulative effect adjustment of $3.3 million related to the adoption of ASU 2018-02 was recorded within accumulated other comprehensive income, net of tax during the year ended December 31, 2019 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Performance-Based Option Activity | Performance-based option activity under the 2007 SIP, the 2013 SIP, and the 2018 EIP 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 (663,412 ) (13.46 ) — — Forfeited or expired (8,358 ) (13.46 ) — — Performance-based options outstanding at December 31, 2018 366,377 $ 13.50 3.1 $ 7.7 Granted — — — — Exercised (298,096 ) (13.48 ) — — Forfeited or expired — — — — Performance-based options outstanding at December 31, 2019 68,281 $ 13.58 2.6 $ 3.7 Granted 1,818,728 65.27 — — Exercised (42,730 ) (13.46 ) — — Forfeited or expired — — — — Performance-based options outstanding at December 31, 2020 1,844,279 $ 64.55 9.2 $ 77.5 Performance-based options exercisable at December 31, 2020 25,551 $ 13.78 1.7 $ 2.4 |
Summary of Term-Based Stock Option Activity | Term-based stock option activity under the 2007 SIP, the 2013 SIP, and the 2018 EIP, 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 5,236,037 23.07 — — Exercised (2,501,983 ) (15.26 ) — — Forfeited or expired (178,466 ) (17.30 ) — — Term-based options outstanding at December 31, 2018 13,549,769 $ 19.28 7.5 $ 206.8 Granted 4,297,472 49.74 — — Exercised (4,358,867 ) (17.37 ) — — Forfeited or expired (343,437 ) (24.14 ) — — Term-based options outstanding at December 31, 2019 13,144,937 $ 29.74 7.8 $ 501.3 Granted 2,282,334 66.06 — — Exercised (3,889,096 ) (20.42 ) — — Forfeited or expired (555,101 ) (32.09 ) — — Term-based options outstanding at December 31, 2020 10,983,074 $ 40.47 7.8 $ 725.9 Term-based options exercisable at December 31, 2020 3,085,305 $ 28.50 6.8 $ 240.9 |
Other Information Pertaining to Term-Based Options | Other information pertaining to term-based options was as follows: Year Ended December 31, 2020 2019 2018 Weighted average grant date fair value per share $ 21.15 $ 16.12 $ 7.80 |
Fair Value of Stock Option Estimated Using Black-Scholes Option Pricing Model | 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, 2020 2019 2018 Expected volatility 29.8 % 24.9 % 25.0 % Expected dividend rate — — — Risk-free interest rate 0.6 % 2.5 % 2.9 % |
Summary of Restricted Stock Units Activity | RSU activity under the 2013 SIP and the 2018 EIP, was as follows: Shares RSUs outstanding at December 31, 2017 605,990 Granted 164,073 Shares issued upon vesting of RSUs (105,990 ) Forfeited or canceled — RSUs outstanding at December 31, 2018 664,073 Granted 193,033 Shares issued upon vesting of RSUs (17,288 ) Forfeited or canceled (20,000 ) RSUs outstanding at December 31, 2019 819,818 Granted 685,997 Shares issued upon vesting of RSUs (73,475 ) Forfeited or canceled (42,955 ) RSUs outstanding at December 31, 2020 1,389,385 RSUs releasable at December 31, 2020 423,479 |
Other Information Pertaining to RSUs | Other information pertaining to RSUs was as follows: Year Ended December 31, 2020 2019 2018 Weighted average grant date fair value per share $ 69.57 $ 50.00 $ 35.55 |
Summary of Global Employee Stock Purchase Plan Activity | Our GESPP activity was as follows: Year Ended December 31, 2020 2019 Shares issued 182,899 261,895 Purchase price (per share) $ 54.90 $ 28.70 |
Summary of Fair Value of Stock Purchase Rights Granted under the Global Employee Stock Purchase Plan Estimated Using Weighted-Average Assumptions | The fair value of the stock purchase rights granted under the GESPP was estimated using the following weighted-average assumptions: Year Ended December 31, 2020 Year Ended December 31, 2019 Expected volatility 46.4 % 34.8 % Expected dividend rate — — Risk-free interest rate 1.1 % 2.2 % Expected term (in years) 0.3 0.4 Grant date fair value per share $ 17.11 $ 9.32 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue | Disaggregation of Revenue Revenue by solution and category was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Revenue: Cloud Dayforce Recurring services $ 500.2 $ 429.0 $ 325.7 Professional services and other 148.6 140.7 111.8 Total Dayforce revenue 648.8 569.7 437.5 Powerpay Recurring services 79.5 89.0 90.0 Professional services and other 1.1 1.3 1.3 Total Powerpay revenue 80.6 90.3 91.3 Total Cloud revenue 729.4 660.0 528.8 Bureau Recurring services 110.5 162.1 209.3 Professional services and other 2.6 2.0 2.6 Total Bureau revenue 113.1 164.1 211.9 Total revenue $ 842.5 $ 824.1 $ 740.7 |
Schedule of Revenue by Country | The country in which the revenue is recorded is determined by the legal entity with which the customer has contracted. Revenue by country was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) United States $ 579.3 $ 578.1 $ 513.8 Canada 223.5 237.0 224.0 Other 39.7 9.0 2.9 Total revenue $ 842.5 $ 824.1 $ 740.7 |
Schedule of Changes in Deferred Revenue | Deferred revenue primarily consists of payments received in advance of revenue recognition. The changes in deferred revenue were as follows: December 31, 2020 2019 (Dollars in millions) Deferred revenue, beginning of period $ 25.5 $ 23.2 New and acquired billings 432.6 365.5 Revenue recognized (433.9 ) (363.5 ) Effect of exchange rate 0.2 0.3 Deferred revenue, end of period $ 24.4 $ 25.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 (Dollars in millions) Balance as of December 31, 2018 $ (207.5 ) $ (18.3 ) $ (150.1 ) $ (375.9 ) Other comprehensive loss before income taxes and reclassifications 29.1 37.7 (0.3 ) 66.5 Income tax benefit — (9.6 ) (2.4 ) (12.0 ) Reclassifications to earnings — — 10.1 10.1 Other comprehensive income 29.1 28.1 7.4 64.6 Cumulative-effect adjustment related to the adoption of ASU 2018-02 — 0.4 (27.5 ) (27.1 ) Balance as of December 31, 2019 (178.4 ) 10.2 (170.2 ) (338.4 ) Other comprehensive loss before income taxes and reclassifications 18.7 38.4 8.0 65.1 Income tax benefit — (10.2 ) (5.7 ) (15.9 ) Reclassifications to earnings — — 13.2 13.2 Other comprehensive income 18.7 28.2 15.5 62.4 Balance as of December 31, 2020 $ (159.7 ) $ 38.4 $ (154.7 ) $ (276.0 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes | Year Ended December 31, 2020 2019 2018 (Dollars in millions) Components of Earnings and Taxes from Operations Income (Loss) Before Income Taxes: U.S. $ 41.5 $ 25.9 $ (71.4 ) International (61.6 ) 8.4 44.5 Total $ (20.0 ) $ 34.3 $ (26.9 ) Income Tax Expense (Benefit): Current: U.S. $ (6.5 ) $ 7.1 $ 3.8 State and local 0.1 0.4 0.3 International (2.6 ) 17.5 20.4 Total current income tax expense (9.0 ) 25.0 24.5 Deferred: U.S. (1.1 ) (42.6 ) (14.1 ) State and local 0.1 (19.3 ) (2.2 ) International (6.0 ) (7.5 ) 0.2 Total deferred income tax benefit (7.0 ) (69.4 ) (16.1 ) Total income tax (benefit) expense $ (16.0 ) $ (44.4 ) $ 8.4 |
Reconciliation of U.S. Federal Statutory Rate | Year Ended December 31, 2020 2019 2018 Effective Rate Reconciliation U.S. statutory rate% 21.0 % 21.0 % (21.0 )% Change in valuation allowance (0.3 ) (176.1 ) 10.8 State income taxes, net of federal benefit 2.2 3.9 (31.2 ) Share-based compensation 3.9 (5.8 ) (10.0 ) International tax rate differential 8.9 3.8 13.4 Foreign dividend income — — 20.1 Foreign capital gain income (7.5 ) 3.2 7.1 Unremitted foreign earnings 14.5 (2.0 ) 4.1 Global intangible low-taxed income — — 23.0 Base erosion tax 33.9 19.9 14.1 Reserve for tax contingencies 1.2 (0.3 ) 0.4 Change in tax rate — (1.0 ) (5.9 ) Other 2.2 4.0 6.3 Income tax provision% 80.0 % (129.4 )% 31.2 % |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2020 2019 (Dollars in millions) 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 $ 9.8 $ 41.6 Other 7.5 — Foreign tax credit carryover and other credit carryovers 0.2 0.3 Net operating loss carryforwards 125.9 82.7 Total gross deferred tax asset 143.4 124.6 Valuation allowance (16.3 ) (15.1 ) Total deferred tax asset $ 127.1 $ 109.5 Deferred Tax Liability: Intangibles $ (61.7 ) $ (57.3 ) Other (55.2 ) (32.0 ) Total deferred tax liability (116.9 ) (89.3 ) Net deferred tax asset (liability) $ 10.2 $ 20.2 December 31, 2020 2019 (Dollars in millions) Net Deferred Tax by Geography U.S. $ 22.0 $ 32.2 International (11.8 ) (12.0 ) Total $ 10.2 $ 20.2 |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity for unrecognized tax benefits: Year Ended December 31, 2020 2019 (Dollars in millions) Federal, State and Foreign Tax Beginning unrecognized tax balance $ 1.5 $ 1.3 Increase prior period positions 0.1 0.1 Increase current period positions 0.2 0.2 Decrease prior period positions — (0.1 ) Ending unrecognized tax benefits $ 1.8 $ 1.5 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Lease Type Balance Sheet Classification December 31, 2020 December 31, 2019 (Dollars in millions) ASSETS Operating lease assets Trade and other receivables, net $ 5.4 $ 5.5 Operating lease assets Prepaid expenses and other current assets 2.2 1.2 Operating lease assets Right of use lease asset 27.9 32.0 Financing lease assets Property, plant, and equipment, net 8.0 8.8 Total lease assets $ 43.5 $ 47.5 LIABILITIES Current Financing lease liabilities Current portion of long-term debt $ 0.4 $ 4.0 Operating lease liabilities Current portion of long-term lease liabilities 10.5 8.8 Noncurrent Financing lease liabilities Long-term debt, less current portion 8.4 8.4 Operating lease liabilities Long-term lease liabilities, less current portion 33.6 30.1 Total lease liabilities $ 52.9 $ 51.3 |
Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, 2020 ASC Topic 842 2019 ASC Topic 842 2018 ASC Topic 840 Lease Cost (Dollars in millions) Operating lease cost $ 9.1 $ 12.8 $ 17.6 Financing lease cost: Depreciation of lease assets 0.8 0.1 — Interest on lease liabilities (a) 0.4 — — Sublease income (4.1 ) (4.4 ) (4.9 ) Net lease cost $ 6.2 $ 8.5 $ 12.7 (a) Interest on lease liabilities was less than $0.1 million for the year ended December 31, 2019. |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2020 2019 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1.5 $ 11.2 Operating cash flows from finance leases 0.4 — Financing cash flows from finance leases 3.3 0.4 Lease assets obtained in exchange for new lease liabilities: Operating leases 4.4 3.7 Financing leases — 8.8 |
Future Minimum Lease Payments Under Operating and Financing Leases | The future minimum lease payments under our operating and financing leases were as follows: Years Ending December 31, Amount (Dollars in millions) 2021 $ 11.2 2022 11.3 2023 10.0 2024 8.6 2025 6.7 Thereafter 11.9 Total lease payments (a) $ 59.7 Less: Interest 6.8 Total $ 52.9 (a) Future minimum lease payments have not been reduced by minimum sublease rentals of $6.5 million due in the future under noncancellable subleases. |
Schedule of Weighted Average Remaining Lease Term and Weighted Average Discount Rate | Weighted average remaining lease term and weighted average discount rate were as follows: December 31, 2020 2019 Weighted average remaining lease term (in years) Operating leases 9.0 5.8 Financing leases 10.6 11.6 Weighted average discount rate Operating leases 10.18 % 5.02 % Financing leases 3.91 % 3.91 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Revenue from Portfolio Companies | We provide Dayforce and related services to certain investment portfolio companies of THL and Cannae. Revenue from these portfolio companies was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) American Blue Ribbon Holdings, LLC $ 1.3 $ 1.6 $ 1.8 Black Knight Sports and Entertainment, LLC — 0.2 — Essex Technology Group, LLC 0.5 0.5 0.5 Guaranteed Rate, Inc. 0.9 0.8 0.5 Hightower Holding, LLC 0.2 0.2 0.1 Philips Feed Services, Inc. 0.3 0.3 0.3 System One Holdings LLC — — 0.3 Ten-X, LLC 0.2 0.4 — |
Net (Loss) Income per Share (Ta
Net (Loss) Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computations of Basic and Diluted Net (Loss) Income per Share | The basic and diluted net (loss) income per share computations were calculated as follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions, except share and per share data) Numerator: Net (loss) income attributable to Ceridian $ (4.0 ) $ 78.7 $ (60.6 ) Less: Loss from discontinued operations — — (25.8 ) Net (loss) income from continuing operations attributable to Ceridian (4.0 ) 78.7 (34.8 ) Less: Senior Preferred Stock dividends declared — — 7.7 Net (loss) income from continuing operations attributable to Ceridian available to common stockholders $ (4.0 ) $ 78.7 $ (42.5 ) Denominator: Weighted-average shares outstanding—basic 146,774,471 142,049,112 114,049,682 Effect of dilutive equity instruments — 6,707,480 — Weighted-average shares outstanding—diluted 146,774,471 148,756,592 114,049,682 Net (loss) income per share from continuing operations attributable to Ceridian—basic $ (0.03 ) $ 0.55 $ (0.37 ) Net loss per share from discontinued operations—basic $ — $ — $ (0.23 ) Net (loss) income per share attributable to Ceridian—basic $ (0.03 ) $ 0.55 $ (0.60 ) Net (loss) income per share from continuing operations attributable to Ceridian—diluted $ (0.03 ) $ 0.53 $ (0.37 ) Net loss per share from discontinued operations—diluted $ — $ — $ (0.23 ) Net (loss) income per share attributable to Ceridian—diluted $ (0.03 ) $ 0.53 $ (0.60 ) |
Schedule of Potentially Dilutive Shares Excluded from Calculation of Diluted Net (Loss) Income per Share | The following potentially dilutive shares were excluded from the calculation of diluted net (loss) income per share because their effect would have been anti-dilutive: Year Ended December 31, 2020 2019 2018 Senior convertible preferred stock — — 5,523,993 Junior convertible preferred stock — — 19,148,814 Term-based stock options 7,135,159 3,307,719 14,227,487 Restricted stock units 745,955 18,980 587,283 Performance stock units 229,433 — — |
Organization - Additional Infor
Organization - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Country | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of countries operate globally | Country | 14 | ||
Secondary Offering [Member] | Selling, General and Administrative Expense [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Offering costs | $ | $ 0.4 | $ 2.9 | $ 1.3 |
Organization - Schedule of Seco
Organization - Schedule of Secondary Offerings (Detail) - $ / shares | Dec. 31, 2020 | Aug. 28, 2020 | Dec. 31, 2019 | Nov. 15, 2019 | Sep. 06, 2019 | Aug. 08, 2019 | May 23, 2019 | Mar. 22, 2019 | Apr. 30, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Shares of Common Stock Sold | 148,571,412 | 144,386,618 | 24,150,000 | ||||||
Secondary Offering [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Shares of Common Stock Sold | 7,717,347 | 10,000,000 | 9,000,000 | 10,000,000 | 8,000,000 | 14,222,142 | |||
Public Offering Price (per share) | $ 72.18 | $ 53.08 | $ 56.30 | $ 49.75 | $ 50.50 | $ 50.50 |
Organization - Schedule of Se_2
Organization - Schedule of Secondary Offerings (Parenthetical) (Detail) | Apr. 03, 2019shares |
Underwriter [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Issuance of common stock upon exercise of options, shares | 1,222,142 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | ||||
Allowance for Doubtful Accounts | $ 3.1 | $ 2.4 | $ 1.3 | $ 1.3 |
Reserve for sale | 4.4 | 3.7 | ||
Interest on property plant and equipment,net | 0.5 | 0.8 | ||
Net of accumulated amortization | 78.7 | 70.4 | ||
Amortization of software cost | 3.8 | 16.2 | 18.5 | |
Amortization expense for the deferred costs | 38.8 | 32.2 | 26.2 | |
Research and Development Expense | 39.6 | 34.1 | 29.6 | |
Advertising Expense | $ 5.5 | 5.4 | 5.8 | |
Defined benefit plan expected long-term rate-of-return, description | The long-term rate of return is estimated by considering historical returns and expected returns on current and projected asset allocations and is generally applied to a five-year average market value of assets. | |||
ASU 2018-14 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |||
ASU 2016-13 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |||
ASU 2016-02 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2019 | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||
Defined Benefit Pension Plan [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Impact of change in discount rate of basis points | 0.25% | |||
Impact of change in discount rate defined benefit plan liability | $ 13 | |||
Defined benefit plan pre-tax earnings | $ 0.3 | |||
Change in the assumption for the long-term rate of return on plan assets basis points | 0.25% | |||
Change in the assumption for the long-term rate of return on plan assets before tax | $ 1 | |||
Other Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Deferred costs | 132.9 | 106.4 | ||
Computer Software, Intangible Asset [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Amortization of software cost | $ 30.6 | $ 28.3 | $ 26.2 | |
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible asset, useful life | 2 years | |||
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible asset, useful life | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated useful life of Property, Plant, and Equipment, Net (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 40 years |
Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 5 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 4 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 6 years |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 4 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Definite lived Intangible Assets Amortization Expense (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Customer Lists and Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 5 years | 5 years |
Customer Lists and Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 15 years | 15 years |
Trade Name [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 3 years | |
Trade Name [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 5 years | |
Technology [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 3 years | 3 years |
Technology [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 4 years | 4 years |
Discontinued Operations - Suppl
Discontinued Operations - Supplemental Disclosure of Discontinued Operation (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Loss from discontinued operations, net of income taxes | $ (25.8) |
LifeWorks [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net revenues | 28.3 |
Loss from operations before income taxes | (0.9) |
Income tax expense | (24.9) |
Loss from discontinued operations, net of income taxes | (25.8) |
Loss attributable to noncontrolling interest | (0.5) |
Depreciation and amortization | $ 1.4 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Millions | May 29, 2020USD ($) | Sep. 06, 2019USD ($) | Dec. 31, 2020USD ($)Segment |
Business Acquisition [Line Items] | |||
Goodwill, Deductible for income tax | $ 5.1 | ||
Number of operating segment | Segment | 1 | ||
Number of reportable segment | Segment | 1 | ||
Excelity Global Solutions Pte. Ltd. [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of voting interest | 100.00% | ||
Cash consideration | $ 77.2 | ||
RITEQ [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of voting interest | 100.00% | ||
Purchase price | $ 20.1 |
Business Combinations - Schedul
Business Combinations - Schedule of Major Classes of Assets and Liabilities Allocated to Purchase Price (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,031.8 | $ 1,973.5 | $ 1,927.4 |
Excelity Global Solutions Pte. Ltd. [Member] | |||
Business Acquisition [Line Items] | |||
Cash and equivalents | 6.6 | ||
Trade receivables, prepaid expenses, and other current assets | 13 | ||
Customer trust funds | 12.3 | ||
Property, plant, and equipment and other assets | 4.2 | ||
Goodwill | 42.7 | ||
Other intangible assets, net | 20.7 | ||
Accounts payable and other current liabilities | (2.2) | ||
Customer trust funds obligations | (13.1) | ||
Other non-current liabilities | (7) | ||
Total purchase price | $ 77.2 | ||
RITEQ [Member] | |||
Business Acquisition [Line Items] | |||
Cash and equivalents | 0.7 | ||
Trade receivables, prepaid expenses, and other current assets | 1.3 | ||
Goodwill | 16.7 | ||
Other intangible assets, net | 4.8 | ||
Other assets | 1 | ||
Accounts payable and other current liabilities | (0.6) | ||
Deferred revenue | (1.3) | ||
Employee compensation and benefits | (1.1) | ||
Other non-current liabilities | (1.4) | ||
Total purchase price | $ 20.1 |
Fair Value Measurements - Asset
Fair Value Measurements - Asset and Liability Measured at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Available for sale customer trust funds assets | $ 1,719.1 | $ 1,826.8 | |
Total assets measured at fair value | 1,719.1 | 1,826.8 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Available for sale customer trust funds assets | [1] | 1,719.1 | 1,826.8 |
Total assets measured at fair value | $ 1,719.1 | $ 1,826.8 | |
[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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment income from invested customer trust fund included in revenue | $ 52.3 | $ 80.2 | $ 67 |
Maturities ranging from one to 120 days [Member] | |||
Average customer trust funds held in liquidity portfolios, Percentage | 49.00% | ||
Maturities ranging from 120 days to 10 years [Member] | |||
Average customer trust funds held in fixed income portfolios, Percentage | 51.00% |
Customer Trust Fund - Investmen
Customer Trust Fund - Investment of Customer Trust Fund (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Securities, Available-for-sale [Line Items] | |||
Money market securities, investments carried at cost and other cash equivalents, Fair Value | $ 2,027.1 | $ 1,348.1 | |
Invested customer trust funds, Fair Value | 3,746.2 | 3,174.9 | |
Trust receivables, Fair Value | 13.2 | 29.2 | [1] |
Total customer trust funds, Fair Value | 3,759.4 | 3,204.1 | |
Money market securities, investments carried at cost and other cash equivalents, Amortized Cost | 2,027.1 | 1,348.1 | |
Invested customer trust funds, Amortized Cost | 3,684.6 | 3,153.2 | |
Trust receivables, Amortized Cost | 13.2 | 40.4 | |
Total customer trust funds, Amortized Cost | 3,697.8 | 3,193.6 | |
Amortized Cost | 1,657.5 | 1,805.1 | |
Gross Unrealized Gain | 61.7 | 23.4 | |
Gross Unrealized Loss | (0.1) | (1.7) | |
Fair value | 1,719.1 | 1,826.8 | |
U.S. Government and Agencies Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 494 | 542.4 | |
Gross Unrealized Gain | 21.6 | 7.1 | |
Gross Unrealized Loss | (0.1) | (0.3) | |
Fair value | 515.5 | 549.2 | |
Canadian and Provincial Government Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 396.4 | 406.7 | |
Gross Unrealized Gain | 15.5 | 5.4 | |
Gross Unrealized Loss | (0.7) | ||
Fair value | 411.9 | 411.4 | |
Corporate Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 548.5 | 562.2 | |
Gross Unrealized Gain | 19.4 | 9 | |
Gross Unrealized Loss | (0.3) | ||
Fair value | 567.9 | 570.9 | |
Asset-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 192.2 | 270 | |
Gross Unrealized Gain | 4.9 | 1.7 | |
Gross Unrealized Loss | (0.3) | ||
Fair value | 197.1 | 271.4 | |
Mortgage-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 9.9 | 19.8 | |
Gross Unrealized Gain | 0.2 | 0.2 | |
Gross Unrealized Loss | (0.1) | ||
Fair value | 10.1 | 19.9 | |
Other Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 16.5 | 4 | |
Gross Unrealized Gain | 0.1 | ||
Fair value | $ 16.6 | $ 4 | |
[1] | The fair value of trust receivable as of December 31, 2019, includes a loss of $11.2 million related to unrecovered duplicate Note 17, “Commitments and Contingencies,” for further discussion of the September 26, 2019, isolated service incident. |
Customer Trust Fund - Investm_2
Customer Trust Fund - Investment of Customer Trust Fund (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Isolated Service Incident [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Loss on unrecovered duplicate payments | $ 11.2 |
Customer Trust Fund - Gross Unr
Customer Trust Fund - Gross Unrealized Losses and Related Fair Value of Investment (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Unrealized Losses | $ (0.1) |
Less than 12 months, Fair Value | 42.1 |
Total, Unrealized Losses | (0.1) |
Total, Fair Value | 42.1 |
U.S. Government and Agencies Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Unrealized Losses | (0.1) |
Less than 12 months, Fair Value | 42.1 |
Total, Unrealized Losses | (0.1) |
Total, Fair Value | $ 42.1 |
Customer Trust Fund - Amortized
Customer Trust Fund - Amortized Cost and Fair Value of Investment Security Available for Sale (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, Cost | $ 2,487.7 | |
Due in one to three years, Cost | 753.4 | |
Due in three to five years, Cost | 335.1 | |
Due after five years, Cost | 108.4 | |
Invested customer trust funds, Cost | 3,684.6 | $ 3,153.2 |
Due in one year or less, Fair Value | 2,491.2 | |
Due in one to three years, Fair Value | 785.8 | |
Due in three to five years, Fair Value | 349.1 | |
Due after five years, Fair Value | 120.1 | |
Invested customer trust funds, Fair Value | $ 3,746.2 | $ 3,174.9 |
Trade and Other Receivables, _3
Trade and Other Receivables, Net - Schedule of Trade and Other Receivables, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Trade receivables from customers | $ 95.1 | $ 75.7 |
Interest receivable from invested customer trust funds | 1.8 | 1.3 |
Other | 11.7 | 9.5 |
Total gross receivables | 108.6 | 86.5 |
Less: reserve for sales adjustments | (4.4) | (3.7) |
Less: allowance for doubtful accounts | (3.1) | (2.4) |
Trade and other receivables, net | $ 101.1 | $ 80.4 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Balance at beginning of year | $ 2.4 | $ 1.3 | $ 1.3 |
Provision for doubtful accounts | 2 | 3.2 | 0.7 |
Charge-offs, net of recoveries | (1.3) | (2.1) | (0.7) |
Balance at end of year | $ 3.1 | $ 2.4 | $ 1.3 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net - Schedule of Property, Plant, and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 482.9 | $ 447.8 |
Accumulated depreciation | (346.5) | (319.5) |
Property, plant, and equipment, net | 136.4 | 128.3 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 7.5 | 7.5 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 306.3 | 265 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 120.2 | 116.1 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 48.9 | $ 59.2 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 48 | $ 40.9 | $ 38.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Balance | $ 1,973.5 | $ 1,927.4 |
Acquisitions | 42.7 | 25.7 |
Translation | 15.6 | 20.4 |
Balance | 2,031.8 | $ 1,973.5 |
Tax-deductible goodwill | $ 23 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Other Intangible Asset Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 566.2 | $ 542.6 |
Accumulated Amortization | (371.2) | (364.7) |
Net | 195 | 177.9 |
Trade Name [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 177.7 | 174 |
Accumulated Amortization | (2.5) | (2.1) |
Net | $ 175.2 | $ 171.9 |
Minimum [Member] | Trade Name [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Life Range (Years) | 3 years | 3 years |
Maximum [Member] | Trade Name [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Life Range (Years) | 5 years | |
Estimated Life Range (Years) | Indefinite | Indefinite |
Customer Lists and Relationships [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 229 | $ 212.5 |
Accumulated Amortization | (212.1) | (208.2) |
Net | $ 16.9 | $ 4.3 |
Customer Lists and Relationships [Member] | Minimum [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Life Range (Years) | 5 years | 5 years |
Customer Lists and Relationships [Member] | Maximum [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Life Range (Years) | 15 years | 15 years |
Technology [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 159.5 | $ 156.1 |
Accumulated Amortization | (156.6) | (154.4) |
Net | $ 2.9 | $ 1.7 |
Technology [Member] | Minimum [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Life Range (Years) | 3 years | 3 years |
Technology [Member] | Maximum [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Life Range (Years) | 4 years | 4 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 3.8 | $ 16.2 | $ 18.5 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization of Other Intangible Assets (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
2021 | $ 6.2 |
2022 | 5.8 |
2023 | 5 |
2024 | 4.3 |
2025 | $ 1.8 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Long Lived Assets by Country (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Long Lived Assets Geographic [Line Items] | ||
Total long-lived assets | $ 2,391.1 | $ 2,311.7 |
United States [Member] | ||
Long Lived Assets Geographic [Line Items] | ||
Total long-lived assets | 1,796.9 | 1,800.5 |
Canada [Member] | ||
Long Lived Assets Geographic [Line Items] | ||
Total long-lived assets | 488.6 | 481.2 |
Other [Member] | ||
Long Lived Assets Geographic [Line Items] | ||
Total long-lived assets | $ 105.6 | $ 30 |
Debt - Schedule of Debt Obligat
Debt - Schedule of Debt Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt excluding financing lease liabilities | $ 664.7 | |
Financing lease liabilities (Please refer to Note 16) | 8.8 | $ 12.4 |
Total debt | 673.5 | 683.9 |
Less unamortized discount on Term Debt | 1.2 | 1.4 |
Less unamortized debt issuance costs on Term Debt | 4.5 | 5.4 |
Less current portion of long-term debt | 7.2 | 10.8 |
Long-term debt, less current portion | 660.6 | 666.3 |
Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt excluding financing lease liabilities | $ 664.7 | $ 671.5 |
Debt - Schedule of Debt Oblig_2
Debt - Schedule of Debt Obligations (Parenthetical) (Detail) $ in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Apr. 30, 2018USD ($) |
Term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt | 2.60% | 2.60% | 4.80% | 4.80% | |
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Available capacity | $ 300 | $ 300 | $ 300 | ||
Revolving Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Available capacity | 0.4 | 1.9 | |||
Canada Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Available capacity | $ 5.4 | $ 7 | $ 5.4 | $ 7 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Millions, $ in Millions | Feb. 19, 2020 | Mar. 26, 2019 | May 30, 2018USD ($) | Apr. 30, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017 | Dec. 31, 2020CAD ($) | Apr. 02, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Oct. 01, 2013USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Loss on debt extinguishment | $ (25.7) | |||||||||||
Capitalization of financing costs | $ 3.6 | |||||||||||
Write off of unamortized deferred financing costs | $ 0.5 | |||||||||||
Debt instrument, covenant description | The Senior Secured Credit Facility documents contain a requirement that we 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 Revolving Credit Facility is drawn. On April 2, 2020, in light of the uncertainty and volatility in the global financial markets resulting from the COVID-19 pandemic, we elected to borrow $295.0 million under the 2018 Revolving Credit Facility as a precautionary measure to increase our cash position and to preserve financial flexibility. In December 2020, we repaid the amount drawn on the revolving credit facility and as of December 31, 2020, no portion of the Revolving Credit Facility was drawn. | |||||||||||
Fair value of our indebtedness | $ 657.6 | $ 675.1 | ||||||||||
Canada [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Issuance of letters of credit | $ 7 | $ 7 | ||||||||||
Letters of credit outstanding | 5.4 | $ 7 | 5.4 | $ 7 | ||||||||
Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Available capacity for letters of credit | $ 300 | $ 300 | 300 | |||||||||
Line of credit facility, borrow amount elected by the company | $ 295 | |||||||||||
Senior Secured Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on debt extinguishment | (7.1) | |||||||||||
Interest rate description | Term Debt interest rate was reduced from LIBOR plus 3.25% to LIBOR plus 3.00%, so long as the rating is maintained. On February 19, 2020, we completed the first amendment to the Senior Secured Credit Facility in which the interest rate was reduced from LIBOR plus 3.00% to LIBOR plus 2.5%. | |||||||||||
Accrued interest | $ 0.1 | $ 0.1 | ||||||||||
Senior Secured Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, variable interest rate | 2.50% | 3.00% | 3.25% | |||||||||
Term Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument principal amount | $ 680 | |||||||||||
Debt instrument interest rate stated percentage | 2.60% | 2.60% | 4.80% | 4.80% | ||||||||
Term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, variable interest rate | 3.25% | |||||||||||
Senior Secured Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term debt, unamortized deferred financing cost | $ 5.7 | $ 6.8 | ||||||||||
Senior note, amortized interest rate | 5.30% | |||||||||||
Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument principal amount | $ 475 | |||||||||||
Loss on debt extinguishment | $ (18.6) | |||||||||||
Write off of unamortized deferred financing costs | $ 5.5 |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Payments and Maturities of Indebtedness, Excluding Financing Lease Obligations (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 6.8 |
2022 | 6.8 |
2023 | 6.8 |
2024 | 6.8 |
2025 | 637.5 |
Principal payments and maturities excluding financing lease obligations | $ 664.7 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, expense recognized | $ 11.1 | $ 9.8 | $ 8.4 | |
Inactive participants In defined benefit plan | 99.00% | |||
Benefit obligation, discount rate | 25.00% | |||
Decrease in expense for all pension plans | $ (0.3) | |||
Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Quarterly redemption restriction notice period | 65 days | |||
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to defined benefit plan assets | $ 106.9 | $ 19.8 | ||
Benefit obligation, discount rate | 1.87% | 2.81% | 3.92% | |
Reduction in projected benefit obligation, mortality assumptions | $ (6) | $ (8.5) | ||
Fair value of plan assets exceeded projected benefit obligation of defined benefit plans | 3.5 | |||
Projected benefit obligation of defined benefit plans exceeded the fair value of plan assets | 121.6 | |||
Accumulated benefit obligation of defined benefit plans | $ 555.2 | 547.2 | ||
Defined Benefit Pension Plan [Member] | Long Term Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan assets percentage of asset categories | 15.00% | |||
Defined Benefit Pension Plan [Member] | Liability Hedging [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan assets percentage of asset categories | 83.00% | |||
Defined Benefit Pension Plan [Member] | Short-term Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan assets percentage of asset categories | 2.00% | |||
Defined Benefit Pension Plan [Member] | Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan percentage of target allocation | 25.00% | |||
Defined Benefit Pension Plan [Member] | Public Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan percentage of target allocation | 62.00% | |||
Defined Benefit Pension Plan [Member] | Alternate Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan percentage of target allocation | 13.00% | |||
Defined Benefit Pension Plan [Member] | United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension plan contributed amount | $ 105 | |||
Pension plan minimum contributions | 17 | |||
Pension plan, voluntary contributions | 88 | |||
Nonqualified Defined Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to defined benefit plan assets | 1.9 | |||
Nonqualified Defined Benefit Plan [Member] | Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to defined benefit plan assets | $ 1.6 | |||
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to defined benefit plan assets | $ 1.6 | $ 1.2 | ||
Benefit obligation, discount rate | 1.42% | 2.52% | 3.70% | |
The year the health care cost reaches ultimate trend rate of 4.5% | 2028 | |||
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 2020 is 6.4% for pre-age 65 retirees and 7.1% 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. | |||
Other Postretirement Benefits Plan [Member] | Pre Age 65 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assumed health care cost trend rate | 6.40% | |||
Other Postretirement Benefits Plan [Member] | Post Age 65 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assumed health care cost trend rate | 7.10% |
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, 2020USD ($) |
Future payments of defined benefit plan | |
2021 | $ 46.4 |
2022 | 44.4 |
2023 | 42.8 |
2024 | 41.2 |
2025 | 39 |
Next five years | $ 166.9 |
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 | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Amounts recognized in Consolidated Balance Sheets | ||||
Noncurrent liability | $ 24.4 | $ 117.2 | ||
Defined Benefit Pension Plan [Member] | ||||
Change in Projected Benefit Obligation During the Year: | ||||
Beginning balance | 547.2 | 527.4 | ||
Service cost | 0 | 0 | ||
Interest cost | 12.7 | 18.2 | $ 16.3 | |
Actuarial loss | 42.4 | 49.4 | ||
Benefits paid and plan expenses | (47.1) | (47.8) | ||
Ending balance | 555.2 | 547.2 | 527.4 | |
Change in Fair Value of Plan Assets During the Year: | ||||
Beginning balance | 425.6 | 381.6 | ||
Actual return on plan assets | 73.3 | 72 | ||
Employer contributions | 106.9 | 19.8 | ||
Benefits paid and plan expenses | (47.1) | (47.8) | ||
Ending balance | 558.7 | 425.6 | $ 381.6 | |
Funded status of plans | 3.5 | (121.6) | ||
Amounts recognized in Consolidated Balance Sheets | ||||
Noncurrent asset | 15.8 | |||
Current liability | 1.5 | 18.7 | ||
Noncurrent liability | 10.8 | 102.9 | ||
Amounts recognized in Accumulated Other Comprehensive Loss | ||||
Accumulated other comprehensive loss, net of tax of $51.4 million and $57.8 million, respectively | [1] | $ 163.3 | $ 180.6 | |
[1] | A cumulative effect adjustment of $30.8 million related to the adoption of ASC 2018-02 |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefit - Pension Benefits (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Cumulative effect adjustment | $ 1,211 | ||
ASU 2018-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Cumulative effect adjustment | $ 30.8 | ||
Defined Benefit Pension Plan [Member] | |||
Accumulated other comprehensive loss, tax | $ 51.4 | $ 57.8 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Other Comprehensive (Income) Loss Related to Pension Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial (gain) loss | [1] | $ (21.2) | $ (9.8) | $ 7.6 |
Tax expense | (5.7) | (2.4) | 0 | |
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial (gain) loss | (8) | 1 | 21.4 | |
Amortization of net actuarial gain (loss) | (15.7) | (12.7) | (14.2) | |
Tax expense | 6.4 | 2.9 | ||
Other comprehensive loss (income), net of tax | (17.3) | (8.8) | 7.2 | |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial (gain) loss | (0.7) | (2.1) | ||
Amortization of net actuarial gain (loss) | 2.5 | 2.6 | 2.5 | |
Tax expense | (0.7) | (0.5) | ||
Other comprehensive loss (income), net of tax | $ 1.8 | $ 1.4 | $ 0.4 | |
[1] | The amount of the pension liability adjustment recognized in the Consolidated Statements of Operations within other expense (income), net was $13.2 million, $10.1 million, and $11.7 million during the years ended December 31, 2020, 2019, and 2018, respectively. |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Other Comprehensive (Income) Loss Related to Postretirement Benefit Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine benefit obligations | 25.00% | ||
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine net benefit cost | 2.81% | 3.92% | 3.25% |
Expected return on plan assets | 5.70% | 6.00% | 6.30% |
Discount rate used to determine benefit obligations | 1.87% | 2.81% | 3.92% |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine net benefit cost | 2.52% | 3.70% | 3.01% |
Discount rate used to determine benefit obligations | 1.42% | 2.52% | 3.70% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Cost for Defined Benefit Pension Plan and Other Postretirement Benefit Plan (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic pension cost | $ 3.3 | $ 5.2 | $ 2.7 |
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | 12.7 | 18.2 | 16.3 |
Actuarial loss (gain) amortization | 15.7 | 12.7 | 14.2 |
Less: Expected return on plan assets | (22.9) | (23.6) | (25.8) |
Net periodic pension cost | 5.5 | 7.3 | 4.7 |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | 0.3 | 0.5 | 0.5 |
Actuarial loss (gain) amortization | (2.2) | (2.3) | (2.2) |
Prior service credit amortization | (0.3) | (0.3) | (0.3) |
Net periodic pension cost | $ (2.2) | $ (2.1) | $ (2) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | $ 558.7 | $ 425.6 | $ 381.6 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 83.5 | 17.5 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 475.2 | 408.1 | |
Short-term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 83.5 | 17.5 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 83.5 | 17.5 | |
US Government Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 46.7 | 137.2 | |
US Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 46.7 | 137.2 | |
Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 322.4 | 19.7 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 322.4 | 19.7 | |
Collective Investment Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | 106.1 | 251.2 | |
Collective Investment Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plan assets | $ 106.1 | $ 251.2 |
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 | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Amounts recognized in Consolidated Balance Sheets | ||||
Noncurrent liability | $ 24.4 | $ 117.2 | ||
Other Postretirement Benefits Plan [Member] | ||||
Change in Benefit Obligation: | ||||
Beginning balance | 15.4 | 16.8 | ||
Interest cost | 0.3 | 0.5 | $ 0.5 | |
Participant contributions | 0.3 | 0.4 | ||
Actuarial gain | (0.7) | |||
Benefits paid | (1.9) | (1.6) | ||
Ending balance | 14.1 | 15.4 | 16.8 | |
Change in Plan Assets: | ||||
Beginning balance | 0 | 0 | ||
Company contributions | 1.6 | 1.2 | ||
Participant contributions | 0.3 | 0.4 | ||
Benefits paid | (1.9) | (1.6) | ||
Ending balance | 0 | $ 0 | ||
Funded status of plans | (14.1) | (15.4) | ||
Amounts recognized in Consolidated Balance Sheets | ||||
Current liability | 1.9 | 2.1 | ||
Noncurrent liability | 12.2 | 13.3 | ||
Amounts recognized in Accumulated Other Comprehensive Loss | ||||
Accumulated other comprehensive income, net of tax of $(5.4) million and $(6.1) million, respectively | [1] | $ (8.6) | $ (10.4) | |
[1] | A cumulative effect adjustment of $3.3 million related to the adoption of ASU 2018-02 was recorded within accumulated other comprehensive income, net of tax during the year ended December 31, 2019 |
Employee Benefit Plans - Sche_8
Employee Benefit Plans - Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefit - Postretirement Benefits (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Cumulative effect adjustment | $ 1,211 | ||
ASU 2018-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Cumulative effect adjustment | $ 30.8 | ||
Other Postretirement Benefits Plan [Member] | |||
Accumulated other comprehensive loss, tax | $ (5.4) | (6.1) | |
Other Postretirement Benefits Plan [Member] | ASU 2018-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Cumulative effect adjustment | $ 3.3 |
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, 2020USD ($) |
Defined benefit plan, expected future benefit payment | |
2021 | $ 2 |
2022 | 1.7 |
2023 | 1.5 |
2024 | 1.4 |
2025 | 1.3 |
Next five years | 4.4 |
Defined benefit plan, expected future receipts from federal subsidy | |
Next five years | $ 0.1 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | Nov. 09, 2018shares | Apr. 24, 2018shares | Dec. 31, 2020USD ($)StockOption$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Mar. 31, 2020shares | Apr. 30, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | $ 65,800,000 | $ 36,500,000 | $ 24,700,000 | ||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | 4,800,000 | ||||||
Number of tranches of stock options | StockOption | 2 | ||||||
Share-based compensation expense related to unvested stock option awards not yet recognized | $ | $ 24,300,000 | ||||||
Share-based compensation expense related to unvested awards expected to be recognized over a weighted average period | 3 years 2 months 12 days | ||||||
Term Based Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense related to unvested stock option awards not yet recognized | $ | $ 85,400,000 | ||||||
Share-based compensation expense related to unvested awards expected to be recognized over a weighted average period | 1 year 8 months 12 days | ||||||
Stock options, vested | 3,085,305 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense related to unvested awards expected to be recognized over a weighted average period | 1 year 6 months | ||||||
Stock options, vested | 226,616 | ||||||
Shares issued upon vesting of RSUs | 73,475 | ||||||
Vested and releasable | 423,479 | ||||||
Share-based compensation expense related to unvested restricted stock units not yet recognized | $ | $ 44,200,000 | ||||||
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 4 years | ||||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 1 year | ||||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 3 years | ||||||
HCM Stock Incentive Plan 2007 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares outstanding | 2,500 | ||||||
HCM Stock Incentive Plan 2013 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares outstanding | 2,219,243 | ||||||
Share based compensation arrangement by share based payment award exercise period after employment termination | 90 days | ||||||
Stock option awards, contractual term | 10 years | ||||||
HCM Stock Incentive Plan 2013 [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares outstanding | 0 | 0 | |||||
Number of shares authorized | 600,000 | ||||||
Share-based compensation expense | $ | $ 1,500,000 | ||||||
HCM Stock Incentive Plan 2013 [Member] | Term Based Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected term of stock options granted | 7 years | ||||||
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 | ||||||
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 | ||||||
HCM Equity Incentive Plan 2018 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares outstanding | 12,130,215 | ||||||
Share based compensation arrangement by share based payment award exercise period after employment termination | 90 days | ||||||
Stock option awards, contractual term | 10 years | ||||||
Number of shares authorized | 13,500,000 | ||||||
Shares reserved for issuance increase percentage | 3.00% | ||||||
Common stock, share Reserve | 4,199,089 | ||||||
Shares available for future grants of equity awards | 9,765,067 | ||||||
HCM Equity Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 4 years | ||||||
HCM Equity Incentive Plan 2018 [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 3 years | ||||||
Options, Granted | 1,500,000 | ||||||
Exercise price per share | $ / shares | $ 65.26 | ||||||
Vesting conditions description | The vesting conditions for the Performance Option Award are based on the Company’s performance on the New York Stock Exchange (“NYSE”) with 750,000 shares available to vest when the Company’s per share closing price on the NYSE meets or exceeds $110.94, or 1.7 times the exercise price, for ten consecutive trading days, and the remaining 750,000 shares are available to vest when the Company’s per share closing price on the NYSE meets or exceeds $130.52, or 2.0 times the exercise price, for ten consecutive trading days. | ||||||
HCM Equity Incentive Plan 2018 [Member] | Performance Shares [Member] | Monte-Carlo Simulation Model [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 5 years 3 months 18 days | ||||||
HCM Equity Incentive Plan 2018 [Member] | Performance Shares [Member] | Closing Price Per Share Exceeds $110.94 or 1.7 Times the Exercise Price [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available to vest | 750,000 | ||||||
Closing price per share on NYSE to available for vest | $ / shares | $ 110.94 | ||||||
HCM Equity Incentive Plan 2018 [Member] | Performance Shares [Member] | Closing Price Per Share Exceeds $130.52 or 2.0 Times the Exercise Price [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available to vest | 750,000 | ||||||
Closing price per share on NYSE to available for vest | $ / shares | $ 130.52 | ||||||
HCM Equity Incentive Plan 2018 [Member] | Term Based Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected term of stock options granted | 7 years | ||||||
HCM Equity Incentive Plan 2018 [Member] | Performance Stock Units ("PSUs") [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs, Granted | 145,017 | ||||||
PSUs, forfeited and cancelled | 9,797 | ||||||
HCM Equity Incentive Plan 2018 [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 1 year | ||||||
HCM Equity Incentive Plan 2018 [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock vesting period | 3 years | ||||||
2020 Management Incentive Plan [Member] | Performance Stock Units ("PSUs") [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | $ 0 | ||||||
Stock options, vested | 0 | ||||||
HCM Global Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option awards, contractual term | 10 years | ||||||
Expected term of stock options granted | 3 months 18 days | 4 months 24 days | |||||
Description for purchase price of fair market value of common stock | The purchase price is the lower of (i) 85% of the fair market value of a share of common stock on the offering date (the first trading day of the offering period commencing on January 1 and concluding on December 31) or (ii) 85% of the fair market value of a share of common stock on the purchase date. | ||||||
Percentage of fair market value of a share of common stock on offering date | 85.00% | ||||||
Percentage of fair market value of share of common stock on purchase date | 85.00% | ||||||
HCM Global Employee Stock Purchase Plan [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 2,500,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Performance-Based Option Activity (Detail) - Performance Shares [Member] - Share Based Compensation Plans [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | ||||
Options Outstanding at Beginning of Period | 68,281 | 366,377 | 1,038,147 | |
Options, Granted | 1,818,728 | 0 | 0 | |
Options, Exercised | (42,730) | (298,096) | (663,412) | |
Options, Forfeited or expired | 0 | 0 | (8,358) | |
Options Outstanding at End of Period | 1,844,279 | 68,281 | 366,377 | 1,038,147 |
Options Exercisable at End of Period | 25,551 | |||
Weighted Average Exercise Price (per share) | ||||
Weighted Average Exercise Price at Beginning of Period | $ 13.58 | $ 13.50 | $ 13.46 | |
Weighted Average Exercise Price, Granted | 65.27 | 0 | 0 | |
Weighted Average Exercise Price, Exercised | (13.46) | (13.48) | (13.46) | |
Weighted Average Exercise Price, Forfeited or expired | 0 | 0 | (13.46) | |
Weighted Average Exercise Price at End of Period | 64.55 | $ 13.58 | $ 13.50 | $ 13.46 |
Weighted Average Exercise Price Exercisable at End of Period | $ 13.78 | |||
Weighted Average Remaining Contractual Term (in years) | ||||
Weighted Average Remaining Contractual Term (in years) | 9 years 2 months 12 days | 2 years 7 months 6 days | 3 years 1 month 6 days | 3 years 6 months |
Weighted Average Remaining Contractual Term Exercisable (in years) | 1 year 8 months 12 days | |||
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value, Options Outstanding | $ 77.5 | $ 3.7 | $ 7.7 | $ 0 |
Aggregate Intrinsic Value, Options Exercisable | $ 2.4 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Term-Based Stock Option Activity (Detail) - Term Based Stock Options [Member] - Share Based Compensation Plans [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | ||||
Options Outstanding at Beginning of Period | 13,144,937 | 13,549,769 | 10,994,181 | |
Options, Granted | 2,282,334 | 4,297,472 | 5,236,037 | |
Options, Exercised | (3,889,096) | (4,358,867) | (2,501,983) | |
Options, Forfeited or expired | (555,101) | (343,437) | (178,466) | |
Options Outstanding at End of Period | 10,983,074 | 13,144,937 | 13,549,769 | 10,994,181 |
Options Exercisable at End of Period | 3,085,305 | |||
Weighted Average Exercise Price (per share) | ||||
Weighted Average Exercise Price at Beginning of Period | $ 29.74 | $ 19.28 | $ 16.52 | |
Weighted Average Exercise Price, Granted | 66.06 | 49.74 | 23.07 | |
Weighted Average Exercise Price, Exercised | (20.42) | (17.37) | (15.26) | |
Weighted Average Exercise Price, Forfeited or expired | (32.09) | (24.14) | (17.30) | |
Weighted Average Exercise Price at End of Period | 40.47 | $ 29.74 | $ 19.28 | $ 16.52 |
Weighted Average Exercise Price Exercisable at End of Period | $ 28.50 | |||
Weighted Average Remaining Contractual Term (in years) | ||||
Weighted Average Remaining Contractual Term (in years) | 7 years 9 months 18 days | 7 years 9 months 18 days | 7 years 6 months | 6 years 10 months 24 days |
Weighted Average Remaining Contractual Term Exercisable (in years) | 6 years 9 months 18 days | |||
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value, Options Outstanding | $ 725.9 | $ 501.3 | $ 206.8 | $ 48.8 |
Aggregate Intrinsic Value, Options Exercisable | $ 240.9 |
Share-Based Compensation - Othe
Share-Based Compensation - Other Information Pertaining to Term-Based Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Term Based Stock Options [Member] | Share Based Compensation Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 21.15 | $ 16.12 | $ 7.80 |
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] - Share Based Compensation Plans [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 29.80% | 24.90% | 25.00% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 0.60% | 2.50% | 2.90% |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units | |||
RSUs, Shares issued upon vesting of RSUs | (226,616) | ||
RSUs releasable at End of Period | 423,479 | ||
Share Based Compensation Plans [Member] | |||
Restricted Stock Units | |||
RSUs outstanding at Beginning of Period | 819,818 | 664,073 | 605,990 |
RSUs, Granted | 685,997 | 193,033 | 164,073 |
RSUs, Shares issued upon vesting of RSUs | (73,475) | (17,288) | (105,990) |
RSUs, Forfeited or canceled | (42,955) | (20,000) | 0 |
RSUs outstanding at End of Period | 1,389,385 | 819,818 | 664,073 |
RSUs releasable at End of Period | 423,479 |
Share-Based Compensation - Ot_2
Share-Based Compensation - Other Information Pertaining to RSUs (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) [Member] | Share Based Compensation Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 69.57 | $ 50 | $ 35.55 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Global Employee Stock Purchase Plan Activity (Detail) - Common Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued | 28,695,455 | ||
HCM Global Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued | 182,899 | 261,895 | |
Purchase price (per share) | $ 54.90 | $ 28.70 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of Fair Value of Stock Purchase Rights Granted under the Global Employee Stock Purchase Plan Estimated Using Weighted-Average Assumptions (Detail) - HCM Global Employee Stock Purchase Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 46.40% | 34.80% |
Expected dividend rate | 0.00% | 0.00% |
Risk-free interest rate | 1.10% | 2.20% |
Expected term (in years) | 3 months 18 days | 4 months 24 days |
Grant date fair value per share | $ 17.11 | $ 9.32 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)CloudofferingEmployeeServiceCustomer | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Revenue [Line Items] | |||
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. | ||
Float revenue | $ 52.3 | $ 80.2 | $ 67 |
Contract asset | $ 55.2 | $ 43.2 | |
Remaining performance obligation, description of practical expedient | In accordance with the practical expedient provided in ASC Topic 606, performance obligations that are billed and recognized as they are delivered, primarily professional services contracts that are on a time and materials basis, are excluded from the transaction price for remaining performance obligations disclosed above. | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Revenue [Line Items] | |||
Status of customer accounts, percentage | 1.00% | ||
Cloud Revenue [Member] | |||
Revenue [Line Items] | |||
Number of cloud offering delivering solution | Cloudoffering | 2 | ||
Powerpay [Member] | Maximum [Member] | |||
Revenue [Line Items] | |||
Number of employees generating revenue from recurring fees | Employee | 20 | ||
Bureau Revenue [Member] | |||
Revenue [Line Items] | |||
Number of primary service lines delivering solutions | Service | 3 | ||
Recurring Services | |||
Revenue [Line Items] | |||
Float revenue | $ 52.3 | $ 80.2 | $ 67 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 842.5 | $ 824.1 | $ 740.7 |
Cloud Dayforce Recurring Services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 500.2 | 429 | 325.7 |
Cloud Dayforce Professional Services and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 148.6 | 140.7 | 111.8 |
Cloud Dayforce Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 648.8 | 569.7 | 437.5 |
Cloud Powerpay Recurring Services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 79.5 | 89 | 90 |
Cloud Powerpay Professional Services and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1.1 | 1.3 | 1.3 |
Cloud Powerpay Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 80.6 | 90.3 | 91.3 |
Cloud Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 729.4 | 660 | 528.8 |
Bureau Recurring Services Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 110.5 | 162.1 | 209.3 |
Bureau Professional Services and Other Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2.6 | 2 | 2.6 |
Bureau Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 113.1 | $ 164.1 | $ 211.9 |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Country (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue | $ 842.5 | $ 824.1 | $ 740.7 |
United States [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue | 579.3 | 578.1 | 513.8 |
Canada [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue | 223.5 | 237 | 224 |
Other Country [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue | $ 39.7 | $ 9 | $ 2.9 |
Revenue - Schedule of Changes i
Revenue - Schedule of Changes in Deferred Revenue (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | ||
Deferred revenue, beginning of period | $ 25.5 | $ 23.2 |
New and acquired billings | 432.6 | 365.5 |
Revenue recognized | (433.9) | (363.5) |
Effect of exchange rate | 0.2 | 0.3 |
Deferred revenue, end of period | $ 24.4 | $ 25.5 |
Revenue - Additional Informat_2
Revenue - Additional Information 1 (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 $ in Millions | Dec. 31, 2020USD ($) |
Revenue [Line Items] | |
Remaining performance obligations recognition period | 3 years |
Revenue expected to be recognized, amount | $ 917.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 1,882.3 | $ 1,615.5 |
Other comprehensive loss before income taxes and reclassifications | 65.1 | 66.5 |
Income tax benefit | (15.9) | (12) |
Reclassifications to earnings | 13.2 | 10.1 |
Other comprehensive income | 62.4 | 64.6 |
Ending balance | 2,098.2 | 1,882.3 |
ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cumulative-effect adjustment related to the adoption of ASU 2018-02 | (27.1) | |
Foreign Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (178.4) | (207.5) |
Other comprehensive loss before income taxes and reclassifications | 18.7 | 29.1 |
Other comprehensive income | 18.7 | 29.1 |
Ending balance | (159.7) | (178.4) |
Unrealized Gain (Loss) from Invested Customer Trust Funds [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 10.2 | (18.3) |
Other comprehensive loss before income taxes and reclassifications | 38.4 | 37.7 |
Income tax benefit | (10.2) | (9.6) |
Other comprehensive income | 28.2 | 28.1 |
Ending balance | 38.4 | 10.2 |
Unrealized Gain (Loss) from Invested Customer Trust Funds [Member] | ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cumulative-effect adjustment related to the adoption of ASU 2018-02 | 0.4 | |
Pension Liability Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (170.2) | (150.1) |
Other comprehensive loss before income taxes and reclassifications | 8 | (0.3) |
Income tax benefit | (5.7) | (2.4) |
Reclassifications to earnings | 13.2 | 10.1 |
Other comprehensive income | 15.5 | 7.4 |
Ending balance | (154.7) | (170.2) |
Pension Liability Adjustment [Member] | ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cumulative-effect adjustment related to the adoption of ASU 2018-02 | (27.5) | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (338.4) | (375.9) |
Ending balance | $ (276) | $ (338.4) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income (Loss) Before Income Taxes: | |||
U.S. | $ 41.5 | $ 25.9 | $ (71.4) |
International | (61.6) | 8.4 | 44.5 |
(Loss) income from continuing operations before income taxes | (20) | 34.3 | (26.9) |
Current: | |||
U.S. | (6.5) | 7.1 | 3.8 |
State and local | 0.1 | 0.4 | 0.3 |
International | (2.6) | 17.5 | 20.4 |
Total current income tax expense | (9) | 25 | 24.5 |
Deferred: | |||
U.S. | (1.1) | (42.6) | (14.1) |
State and local | 0.1 | (19.3) | (2.2) |
International | (6) | (7.5) | 0.2 |
Total deferred income tax benefit | (7) | (69.4) | (16.1) |
Total income tax (benefit) expense | $ (16) | $ (44.4) | $ 8.4 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate% | 21.00% | 21.00% | 21.00% |
Change in valuation allowance | (0.30%) | (176.10%) | (10.80%) |
State income taxes, net of federal benefit | 2.20% | 3.90% | 31.20% |
Share-based compensation | 3.90% | (5.80%) | 10.00% |
International tax rate differential | 8.90% | 3.80% | (13.40%) |
Foreign dividend income | (20.10%) | ||
Foreign capital gain income | (7.50%) | 3.20% | (7.10%) |
Unremitted foreign earnings | 14.50% | (2.00%) | (4.10%) |
Global intangible low-taxed income | (23.00%) | ||
Base erosion tax | 33.90% | 19.90% | (14.10%) |
Reserve for tax contingencies | 1.20% | (0.30%) | (0.40%) |
Change in tax rate | (1.00%) | 5.90% | |
Other | 2.20% | 4.00% | (6.30%) |
Income tax provision% | 80.00% | (129.40%) | (31.20%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Valuation allowance | $ 16.3 | $ 15.1 | |
Net federal tax benefit, available from the loss carryovers | 83.2 | ||
Federal tax credit carryovers | 0.2 | ||
Federal net operating loss | 53.6 | ||
State net operating loss tax benefit, amount | 34.2 | ||
Foreign net operating loss tax benefit, amount | $ 8.5 | ||
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 2016. | ||
Unrecognized tax benefits | $ 1.8 | $ 1.5 | $ 1.3 |
Accrued interest and penalty included in unrecognized tax benefits | 0.3 | ||
Unrecognized tax benefits if recognized would impact on effective income tax rate | $ 1.8 | ||
Earliest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Federal net operating loss expiration period | Dec. 31, 2031 | ||
Latest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Federal net operating loss expiration period | Dec. 31, 2037 | ||
Indefinite Period [Member] | |||
Income Taxes [Line Items] | |||
Federal net operating loss | $ 29.6 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | $ 16.3 | ||
Federal [Member] | Foreign Tax Credit Carryforward [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration date | Dec. 31, 2021 | ||
Federal [Member] | Research Tax Credit Carryforward [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration date | Dec. 31, 2027 | ||
Tax Cut and Jobs Act of 2017 [Member] | |||
Income Taxes [Line Items] | |||
Unremitted foreign earnings | $ 288.7 | ||
Unremitted earnings consider to be indefinitely reinvested | 236 | ||
Unremitted earnings not considered indefinitely reinvested | 52.7 | ||
Deferred tax liability for the expected tax cost of repatriating earnings | 2.6 | ||
Withholding tax expense | $ 11 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Asset and Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Asset: | ||
Employment related accruals | $ 9.8 | $ 41.6 |
Other | 7.5 | |
Foreign tax credit carryover and other credit carryovers | 0.2 | 0.3 |
Net operating loss carryforwards | 125.9 | 82.7 |
Total gross deferred tax asset | 143.4 | 124.6 |
Valuation allowance | (16.3) | (15.1) |
Total deferred tax asset | 127.1 | 109.5 |
Deferred Tax Liability: | ||
Intangibles | (61.7) | (57.3) |
Other | (55.2) | (32) |
Total deferred tax liability | (116.9) | (89.3) |
Net deferred tax asset | 10.2 | 20.2 |
U.S. [Member] | ||
Deferred Tax Liability: | ||
Net deferred tax asset | 22 | 32.2 |
International [Member] | ||
Deferred Tax Liability: | ||
Net deferred tax liability | $ (11.8) | $ (12) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Federal, State and Foreign Tax | ||
Beginning unrecognized tax balance | $ 1.5 | $ 1.3 |
Increase prior period positions | 0.1 | 0.1 |
Increase current period positions | 0.2 | 0.2 |
Decrease prior period positions | (0.1) | |
Ending unrecognized tax benefits | $ 1.8 | $ 1.5 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Lessee Lease Description [Line Items] | |
Maximum initial term of leases which are not recorded on balance sheet | 12 months |
Selling, General and Administrative Expense [Member] | Abandonment of Leases Associated with Office Locations [Member] | |
Lessee Lease Description [Line Items] | |
Charges | $ 16.8 |
Accelerated amortization of right of use assets | 14.7 |
Accelerated depreciation of leasehold improvements | $ 2.1 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leased Assets [Line Items] | ||
Right of use lease asset | $ 27.9 | $ 32 |
Financing lease assets noncurrent | $ 8 | $ 8.8 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Total lease assets | $ 43.5 | $ 47.5 |
Finance lease liability current | $ 0.4 | $ 4 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Operating lease liability current | $ 10.5 | $ 8.8 |
Finance lease liability Noncurrent | $ 8.4 | $ 8.4 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Operating lease liability noncurrent | $ 33.6 | $ 30.1 |
Total lease liabilities | 52.9 | 51.3 |
Trade And Other Receivables Net | ||
Operating Leased Assets [Line Items] | ||
Operating lease assets current | 5.4 | 5.5 |
Prepaid Expenses and Other Current Assets | ||
Operating Leased Assets [Line Items] | ||
Operating lease assets current | $ 2.2 | $ 1.2 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Lease Cost | ||||
Operating lease cost (ASC Topic 842) | $ 9.1 | $ 12.8 | ||
Operating lease cost (ASC Topic 840) | $ 17.6 | |||
Financing lease cost: | ||||
Depreciation of lease assets | 0.8 | 0.1 | ||
Interest on lease liabilities | [1] | 0.4 | 0 | |
Sublease income (ASC Topic 842) | (4.1) | (4.4) | ||
Sublease income (ASC Topic 840) | (4.9) | |||
Net lease cost (ASC Topic 842) | $ 6.2 | $ 8.5 | ||
Net lease cost (ASC Topic 840) | $ 12.7 | |||
[1] | Interest on lease liabilities was less than $0.1 million for the year ended December 31, 2019. |
Leases - Components of Lease _2
Leases - Components of Lease Expense (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Lease Expense [Line Items] | |||
Interest on lease liabilities | [1] | $ 0.4 | $ 0 |
Maximum [Member] | |||
Lease Expense [Line Items] | |||
Interest on lease liabilities | $ 0.1 | ||
[1] | Interest on lease liabilities was less than $0.1 million for the year ended December 31, 2019. |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1.5 | $ 11.2 |
Operating cash flows from finance leases | 0.4 | |
Financing cash flows from finance leases | 3.3 | 0.4 |
Lease assets obtained in exchange for new lease liabilities: | ||
Operating leases | $ 4.4 | 3.7 |
Financing leases | $ 8.8 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Operating and Financing Leases (Detail) $ in Millions | Dec. 31, 2020USD ($) | |
Operating and Finance Leases | ||
2021 | $ 11.2 | |
2022 | 11.3 | |
2023 | 10 | |
2024 | 8.6 | |
2025 | 6.7 | |
Thereafter | 11.9 | |
Total lease payments | 59.7 | [1] |
Less: Interest | 6.8 | |
Total | $ 52.9 | |
[1] | Future minimum lease payments have not been reduced by minimum sublease rentals of $6.5 million due in the future under noncancellable subleases. |
Leases - Future Minimum Lease_2
Leases - Future Minimum Lease Payments Under Operating and Financing Leases (Parenthetical) (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
Minimum sublease rentals under noncancellable subleases | $ 6.5 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating leases, weighted average remaining lease term | 9 years | 5 years 9 months 18 days |
Financing leases, weighted average remaining lease term | 10 years 7 months 6 days | 11 years 7 months 6 days |
Operating leases, weighted average discount rate | 10.18% | 5.02% |
Financing leases, weighted average discount rate | 3.91% | 3.91% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | Sep. 26, 2019 | |
Commitments And Contingencies [Line Items] | |||
Recognized an undiscounted liability | $ 5 | $ 4.8 | |
Isolated Service Incident [Member] | |||
Commitments And Contingencies [Line Items] | |||
Duplicate payments for payroll customers | $ 18.8 | ||
Loss on unrecovered duplicate payments | 11.2 | ||
Recovery efforts resulting in collection | $ 0.4 | ||
Isolated Service Incident [Member] | Selling, General and Administrative Expense [Member] | |||
Commitments And Contingencies [Line Items] | |||
Loss on unrecovered duplicate payments | $ 11.2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cannae and THLM [Member] | ||||
Number of years for which present value of the management fee to be paid in case of agreement termination | 7 years | |||
Management agreement termination fee | $ 11.3 | |||
Management fee | $ 12 | |||
FNF [Member] | ||||
Interest payments received | 1.3 | |||
FNF [Member] | Payroll-Related Tax Filing Services [Member] | ||||
Revenue from related parties | $ 0.4 | $ 0.4 | 0.4 | |
CompuCom Systems, Inc. [Member] | ||||
Payment to service provider | 1.7 | 1.8 | ||
Fleet Cor Technologies Or Wholly Owned Affiliates [Member] | Dayforce HCM Services and Other Administrative Services [Member] | ||||
Revenue from related parties | 0.9 | 0.8 | 2.3 | |
Dun and Bradstreet [Member] | Service Agreement [Member] | ||||
Payment to service provider | 0.4 | |||
The Stronach Group [Member] | Dayforce [Member] | ||||
Revenue from related parties | 0.1 | 0.2 | 0.3 | |
Verve Senior Living [Member] | Dayforce [Member] | ||||
Revenue from related parties | $ 0.5 | |||
Cannae Holdings, Inc. and Related Entities [Member] | Dayforce [Member] | ||||
Revenue from related parties | $ 0.2 | $ 0.2 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Revenue from Portfolio Companies (Detail) - Dayforce [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
American Blue Ribbon Holdings, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 1.3 | $ 1.6 | $ 1.8 |
Black Knight Sports and Entertainment, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0.2 | ||
Essex Technology Group, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0.5 | 0.5 | 0.5 |
Guaranteed Rate, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0.9 | 0.8 | 0.5 |
Hightower Holding ,LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0.2 | 0.2 | 0.1 |
Philips Feed Services, Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0.3 | 0.3 | 0.3 |
System One Holdings LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 0.3 | ||
Ten-X,LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 0.2 | $ 0.4 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - $ / shares | Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 30, 2016 | Oct. 01, 2013 |
Capital Unit [Line Items] | |||||
Common Stock, authorized shares | 500,000,000 | 500,000,000 | 500,000,000 | 150,000,000 | 100,000,000 |
Common Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred Stock, shares authorized | 10,000,000 | ||||
Common Stock, shares issued | 24,150,000 | 148,571,412 | 144,386,618 | ||
Common Stock, shares outstanding | 148,571,412 | 144,386,618 | |||
IPO [Member] | |||||
Capital Unit [Line Items] | |||||
Shares issued, price per share | $ 22 | ||||
Private Placement [Member] | |||||
Capital Unit [Line Items] | |||||
Shares issued, price per share | $ 22 | ||||
Shares issued | 4,545,455 | ||||
Junior Convertible Participating Preferred Stock [Member] | |||||
Capital Unit [Line Items] | |||||
Preferred Stock, shares authorized | 70,000,000 | ||||
Preferred Stock, par value | $ 0.01 | ||||
Senior Convertible Participating Preferred Stock [Member] | |||||
Capital Unit [Line Items] | |||||
Preferred Stock, shares authorized | 70,000,000 | ||||
Preferred Stock, par value | $ 0.01 |
Net (Loss) Income per Share - S
Net (Loss) Income per Share - Schedule of Computations of Basic and Diluted Net (Loss) Income per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net (loss) income attributable to Ceridian | $ (4) | $ 78.7 | $ (60.6) |
Less: Loss from discontinued operations | (25.8) | ||
Net (loss) income from continuing operations attributable to Ceridian | (4) | 78.7 | (34.8) |
Less: Senior Preferred Stock dividends declared | 7.7 | ||
Net (loss) income from continuing operations attributable to Ceridian available to common stockholders | $ (4) | $ 78.7 | $ (42.5) |
Denominator: | |||
Weighted-average shares outstanding—basic | 146,774,471 | 142,049,112 | 114,049,682 |
Effect of dilutive equity instruments | 6,707,480 | ||
Weighted-average shares outstanding—diluted | 146,774,471 | 148,756,592 | 114,049,682 |
Net (loss) income per share from continuing operations attributable to Ceridian—basic | $ (0.03) | $ 0.55 | $ (0.37) |
Net loss per share from discontinued operations—basic | (0.23) | ||
Net (loss) income per share attributable to Ceridian—basic | (0.03) | 0.55 | (0.60) |
Net (loss) income per share from continuing operations attributable to Ceridian—diluted | (0.03) | 0.53 | (0.37) |
Net loss per share from discontinued operations—diluted | (0.23) | ||
Net (loss) income per share attributable to Ceridian—diluted | $ (0.03) | $ 0.53 | $ (0.60) |
Net (Loss) Income per Share -_2
Net (Loss) Income per Share - Schedule of Potentially Dilutive Shares Excluded from Calculation of Diluted Net (Loss) Income per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 5,523,993 | ||
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 | 19,148,814 | ||
Term Based Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 7,135,159 | 3,307,719 | 14,227,487 |
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 | 745,955 | 18,980 | 587,283 |
Performance Stock Units ("PSUs") [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 229,433 |