Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Title of 12(b) Security | Common Stock, $0.10 Par Value(voting) | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-1467904 | |
Entity Address, Address Line One | One ADP Boulevard | |
Entity Address, City or Town | Roseland, | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 1-5397 | |
Entity Registrant Name | AUTOMATIC DATA PROCESSING, INC. | |
City Area Code | 973 | |
Local Phone Number | 974-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Central Index Key | 0000008670 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Common Stock, Shares Outstanding | 432,698,089 | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07068 | |
Trading Symbol | ADP | |
Security Exchange Name | NASDAQ | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Statements of Consolidated Earn
Statements of Consolidated Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
REVENUES: | |||
Interest on funds held for clients | $ 133.9 | $ 118.5 | |
PEO revenues (A) | [1] | 1,055.6 | 973.2 |
TOTAL REVENUES | 3,495.7 | 3,310.3 | |
Revenues, Net | 2,306.2 | 2,218.6 | |
Costs of revenues: | |||
Operating expenses | 1,787.7 | 1,697 | |
Systems development and programming costs | 168.2 | 158 | |
Depreciation and amortization | 88.9 | 72.6 | |
TOTAL COSTS OF REVENUES | 2,044.8 | 1,927.6 | |
Selling, general, and administrative expenses | 726.5 | 713.9 | |
Interest expense | 39.9 | 35.9 | |
TOTAL EXPENSES | 2,811.2 | 2,677.4 | |
Other income, net | (54.6) | (13.9) | |
EARNINGS BEFORE INCOME TAXES | 739.1 | 646.8 | |
Provision for income taxes | 156.7 | 141.4 | |
NET EARNINGS | $ 582.4 | $ 505.4 | |
BASIC EARNINGS PER SHARE (in US$ per share) | $ 1.35 | $ 1.16 | |
DILUTED EARNINGS PER SHARE (in US$ per share) | $ 1.34 | $ 1.15 | |
Basic weighted average shares outstanding (shares) | 432.7 | 436.8 | |
Diluted weighted average shares outstanding (shares) | 435.4 | 439.9 | |
Direct pass-through costs PEO revenues | $ 10,510.6 | $ 9,629.4 | |
[1] | Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $10,510.6 million and $9,629.4 million for the three months ended September 30, 2019 and 2018 |
Statements of Consolidated Ea_2
Statements of Consolidated Earnings (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Direct pass-through costs PEO revenues | $ 10,510.6 | $ 9,629.4 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 582.4 | $ 505.4 |
Other comprehensive income/(loss): | ||
Currency translation adjustments | (48.9) | (22.9) |
Unrealized net gains/(losses) on available-for-sale securities | 96.1 | (50.4) |
Tax effect | (20.8) | 12.3 |
Reclassification of net (gain)/losses on available-for-sale securities to net earnings | (2.3) | 0.9 |
Tax effect | 0.5 | (0.2) |
Reclassification of pension liability adjustment to net earnings | (1.7) | 0.2 |
Tax effect | 0.5 | (0.2) |
Other comprehensive income/(loss), net of tax | 23.4 | (60.3) |
Comprehensive income | $ 605.8 | $ 445.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | ||
Current assets: | ||||
Cash and cash equivalents | $ 1,403,900,000 | $ 1,949,200,000 | ||
Short-term marketable securities (B) | 3,545,100,000 | [1] | 10,500,000 | |
Accounts receivable, net of allowance for doubtful accounts of $59.3 and $54.9, respectively | 2,490,400,000 | 2,439,300,000 | ||
Other current assets | 675,900,000 | 509,100,000 | ||
Total current assets before funds held for clients | 8,115,300,000 | 4,908,100,000 | ||
Funds held for clients | 21,393,200,000 | 29,434,200,000 | ||
Total current assets | 29,508,500,000 | 34,342,300,000 | ||
Long-term receivables, net of allowance for doubtful accounts of $0.6 and $0.4, respectively | 22,100,000 | 23,800,000 | ||
Property, plant and equipment, net | 767,100,000 | 764,200,000 | ||
Operating Lease, Right-of-Use Asset | 504,000,000 | 0 | ||
Deferred contract costs | 2,401,400,000 | 2,428,500,000 | ||
Other assets | 1,129,400,000 | 934,400,000 | ||
Goodwill | 2,303,300,000 | 2,323,000,000 | ||
Intangible assets, net | 1,078,900,000 | 1,071,500,000 | ||
Total assets | 37,714,700,000 | 41,887,700,000 | ||
Current liabilities: | ||||
Accounts payable | 108,800,000 | 125,500,000 | ||
Accrued expenses and other current liabilities | 1,994,600,000 | 1,759,000,000 | ||
Accrued payroll and payroll-related expenses | 443,600,000 | 721,100,000 | ||
Dividends payable | 339,100,000 | 340,100,000 | ||
Short-term deferred revenues | 213,100,000 | 220,700,000 | ||
Obligations under reverse repurchase agreements (A) | [2] | 428,600,000 | 262,000,000 | |
Obligations under reverse repurchase agreements (A) | 3,536,700,000 | [1] | 0 | |
Short-term debt | 1,001,300,000 | 0 | ||
Income taxes payable | 123,700,000 | 54,800,000 | ||
Total current liabilities before client funds obligations | 8,189,500,000 | 3,483,200,000 | ||
Client funds obligations | 21,011,400,000 | 29,144,500,000 | ||
Total current liabilities | 29,200,900,000 | 32,627,700,000 | ||
Long-term debt | 1,003,400,000 | 2,002,200,000 | ||
Operating lease liabilities | 355,400,000 | 0 | ||
Other liabilities | 707,900,000 | 798,700,000 | ||
Deferred income taxes | 708,200,000 | 659,900,000 | ||
Long-term deferred revenues | 378,200,000 | 399,300,000 | ||
Total liabilities | 32,354,000,000 | 36,487,800,000 | ||
Commitments and contingencies (Note 13) | ||||
Stockholders' equity: | ||||
Preferred stock, $1.00 par value: authorized, 0.3 shares; issued, none | 0 | 0 | ||
Common stock, $0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at September 30, 2019 and June 30, 2019; outstanding, 433.4 and 434.2 shares at September 30, 2019 and June 30, 2019, respectively | 63,900,000 | 63,900,000 | ||
Capital in excess of par value | 1,213,700,000 | 1,183,200,000 | ||
Retained earnings | 17,729,600,000 | 17,500,600,000 | ||
Treasury stock - at cost: 205.3 and 204.5 shares at September 30, 2019 and June 30, 2019, respectively | (13,412,600,000) | (13,090,500,000) | ||
Accumulated other comprehensive loss | (233,900,000) | (257,300,000) | ||
Total stockholders’ equity | 5,360,700,000 | 5,399,900,000 | ||
Total liabilities and stockholders’ equity | 37,714,700,000 | 41,887,700,000 | ||
Long-term Marketable Securities Under Reverse Repurchase Agreements | 428,000,000 | 261,400,000 | ||
Cash And Cash Equivalents Under Reverse Repurchase Agreements | 600,000 | $ 600,000 | ||
Short-term Marketable Securities under Commercial Paper borrowings | $ 3,535,500,000 | |||
[1] | (B) The Company reclassified $3,535.5 million | |||
[2] | (A) As of September 30, 2019, $428.0 million of long-term marketable securities and $0.6 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements. As of June 30, 2019, $261.4 million of long-term marketable securities and $0.6 million |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | |
Statement of Financial Position [Abstract] | |||
Commercial Paper | $ 3,536.7 | [1] | $ 0 |
Allowance for doubtful accounts - trade receivables - Current | 59.3 | 54.9 | |
Allowance for doubtful accounts - trade receivables - Long-term | $ 0.6 | $ 0.4 | |
Preferred stock, par value (in US$ per share) | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 300,000 | 300,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Common stock, par value (in US$ per share) | $ 0.1 | $ 0.1 | |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 638,700,000 | 638,700,000 | |
Common stock, shares outstanding (in shares) | 433,400,000 | 434,200,000 | |
Treasury stock, (in shares) | 205,300,000 | 204,500,000 | |
[1] | (B) The Company reclassified $3,535.5 million |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | |||
Cash Flows from Operating Activities: | ||||||||
Net earnings | $ 582.4 | $ 505.4 | $ 2,292.8 | |||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | ||||||||
Depreciation and amortization | 117.3 | 99 | ||||||
Amortization of deferred contract costs | 227.3 | 216.9 | ||||||
Deferred income taxes | 44.4 | 26.4 | ||||||
Stock-based compensation expense | 37.1 | 38.4 | ||||||
Net pension expense | (2.7) | 17.1 | ||||||
Net amortization of premiums and accretion of discounts on available-for-sale securities | 12.2 | 14.3 | ||||||
Impairment of intangible assets | 0 | 12.1 | ||||||
Gain on sale of assets | 1.9 | 0 | ||||||
Other | 11.9 | 10.1 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Increase in accounts receivable | (96.8) | (239.2) | ||||||
Increase in other assets | (391.7) | (471.2) | ||||||
Decrease in accounts payable | (15.1) | (2.3) | ||||||
Decrease in accrued expenses and other liabilities | (91.6) | (77.8) | ||||||
Net cash flows provided by operating activities | 432.8 | 149.2 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of corporate and client funds marketable securities | (1,409.9) | (755.8) | ||||||
Proceeds from the sales and maturities of corporate and client funds marketable securities | 1,653.7 | 539.8 | ||||||
Capital expenditures | (56.8) | (43.2) | ||||||
Additions to intangibles | (88.2) | (73.8) | ||||||
Acquisitions of businesses, net of cash acquired | 0 | (119.7) | ||||||
Proceeds from the sale of property, plant, and equipment | 23.4 | 0 | ||||||
Net cash flows provided by / (used in) investing activities | 122.2 | (452.7) | ||||||
Cash Flows from Financing Activities: | ||||||||
Net decrease in client funds obligations | (8,063.3) | (1,711.5) | ||||||
Payments of debt | (0.5) | (0.5) | ||||||
Repurchases of common stock | (309.7) | (227.1) | ||||||
Net proceeds from stock purchase plan and stock-based compensation plans | (32.1) | (24.4) | ||||||
Dividends paid | (343.3) | (302.6) | ||||||
Net (repayments of)/proceeds from reverse repurchase agreements | 166.3 | 448.4 | ||||||
Net proceeds from commercial paper borrowings | 3,536.7 | 0 | ||||||
Net cash flows (used in) / provided by financing activities | (5,045.9) | (1,817.7) | ||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (33.1) | (12.6) | ||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | (4,524) | (2,133.8) | ||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 6,796.2 | 6,542.1 | 6,542.1 | |||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | 2,272.2 | 4,408.3 | 6,796.2 | |||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets | ||||||||
Cash and cash equivalents | $ 1,403.9 | $ 1,949.2 | $ 1,490.3 | |||||
Restricted cash and cash equivalents held to satisfy client funds obligations | 868.3 | [1] | 4,847 | 2,918 | [1] | |||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 6,796.2 | 6,542.1 | $ 6,796.2 | $ 2,272.2 | $ 6,796.2 | $ 4,408.3 | ||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | 53.6 | 49.4 | ||||||
Cash paid for income taxes, net of income tax refunds | $ 45.6 | $ 39.3 | ||||||
[1] | See Note 6 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Consolidated Financial Statements and footnotes thereto are unaudited. In the opinion of the Company’s management, the Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, that are necessary for a fair presentation of the Company’s interim financial results. The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees. The Company is the sole beneficial owner of the trust. The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”). The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and, therefore, consolidates the trust. Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 6 , “Corporate Investments and Funds Held for Clients.” The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, expenses, and accumulated other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Interim financial results are not necessarily indicative of financial results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 (“fiscal 2019 ”). Revision of Previously Reported Financial Information The Company has historically classified certain fees collected from worksite employers for certain benefits within PEO revenues, and the associated costs of these benefits have historically been classified within operating expenses as PEO zero-margin benefits pass-through costs in the Company's Statements of Consolidated Earnings. During the quarter ended September 30, 2019, management determined that the Company does not retain risk and is acting as the agent, rather than as the primary obligor, for a portion of the fees collected for worksite employee benefits and the worksite employer is primarily responsible for fulfilling certain aspects of the service and has discretion in establishing price. Accordingly, the accompanying Statements of Consolidated Earnings for the three months ended September 30, 2018 has been revised to correct the amounts previously reported on a gross basis to a net basis by reducing PEO revenues and operating expenses for associated costs of an equal amount, as follows: Three Months Ended September 30, 2018 As reported Revision As revised PEO revenues $ 986.1 (12.9 ) $ 973.2 TOTAL REVENUES 3,323.2 (12.9 ) 3,310.3 Operating expenses 1,709.9 (12.9 ) 1,697.0 Total Expenses 2,690.3 (12.9 ) 2,677.4 EARNINGS BEFORE INCOME TAXES 646.8 — 646.8 Provision for income taxes 141.4 — 141.4 NET EARNINGS $ 505.4 — $ 505.4 In addition, the revised amounts for the fiscal year ended June 30, 2019 are as follows: Twelve Months Ended June 30, 2019 As reported Revision As revised PEO revenues $ 4,237.5 (65.0 ) $ 4,172.5 TOTAL REVENUES 14,175.2 (65.0 ) 14,110.2 Operating expenses 7,145.9 (65.0 ) 7,080.9 Total Expenses 11,280.7 (65.0 ) 11,215.7 EARNINGS BEFORE INCOME TAXES 3,005.6 — 3,005.6 Provision for income taxes 712.8 — 712.8 NET EARNINGS $ 2,292.8 — $ 2,292.8 The correction of these previously reported amounts had no impact on the Company's earnings before income taxes, net earnings, consolidated financial condition or cash flows. In addition, corresponding revisions have been made elsewhere in the Company's consolidated footnote disclosures, where applicable, including its Interim Financial Data by Segment disclosure. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements Effective July 1, 2019, the Company adopted accounting standard update (“ASU”) 2016-02, “Leases (ASC 842)” under the optional transition method. As a result, the Company recorded on the Consolidated Balance Sheets total operating lease right-of-use (“ROU”) assets of $573.3 million and total operating lease liabilities of $522.6 million , as of the adoption date. The adoption did not have an impact on our Statements of Consolidated Earnings or Statements of Consolidated Cash Flows. Refer to Note 7 for further details. Recently Issued Accounting Pronouncements The following table summarizes recent ASU's issued by the Financial Accounting Standards Board (“FASB”) which have been assessed: Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-14 Compensation-Retirement Benefits-Defined Benefit Plans This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. July 1, 2021 (Fiscal 2022) The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows. Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-13 Fair Value Measurement This update modifies the disclosure requirements on fair value measurements. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. July 1, 2020 (Fiscal 2021) The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows. ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This update introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. In addition, this update modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. July 1, 2020 (Fiscal 2021) The adoption of this guidance will not have a material impact on its consolidated results of operations, financial condition, or cash flows. |
Revenue
Revenue | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three strategic pillars: HCM (“HCM”), HR Outsourcing (“HRO”), and Global (“Global”) Solutions with separate disaggregation for PEO zero-margin benefits pass-through revenues and client fund interest revenues. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. HCM provides a suite of product offerings that assist employers of all types and sizes in all stages of the employment cycle, from recruitment to retirement. Global is generally consistent with the types of services provided within HCM but represents geographies outside of the United States and includes our multinational offerings. HCM and Global revenues are primarily attributable to fees for providing solutions for payroll, benefits, talent, retirement services and HR processing and fees charged to implement the Company's solutions for clients. HRO provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers’ compensation insurance, and administering state unemployment insurance, among other human resources functions. This revenue is primarily driven by the PEO. Amounts collected from PEO worksite employers include payroll, fees for benefits, and an administrative fee that also includes payroll taxes, fees for workers’ compensation and state unemployment taxes. The payroll and payroll taxes collected from the worksite employers are presented in revenue net, as the Company does not retain risk and acts as an agent with respect to this aspect of the PEO arrangement. With respect to the payroll and payroll taxes, the worksite employer is primarily responsible for providing the service and has discretion in establishing wages. The fees collected from the worksite employers for benefits (i.e., PEO benefits pass-throughs), workers’ compensation and state unemployment taxes are presented in revenues and the associated costs of benefits, workers’ compensation and state unemployment taxes are included in operating expenses, as the Company acts as a principal with respect to this aspect of the arrangement. With respect to these fees, the Company is primarily responsible for fulfilling the service and has discretion in establishing price. The Company has further disaggregated HRO to separate out its PEO zero-margin benefits pass-through revenues. The Company recognizes client fund interest revenues on collected but not yet remitted funds held for clients in revenues as earned, as the collection, holding and remittance of these funds are critical components of providing these services. The following tables provide details of revenue by our strategic pillars with disaggregation for PEO zero-margin benefits pass-throughs and client fund interest, and includes a reconciliation to the Company’s reportable segments: Three Months Ended September 30, Types of Revenues 2019 2018 HCM $ 1,568.5 $ 1,520.3 HRO, excluding PEO zero-margin benefits pass-throughs 591.1 557.5 PEO zero-margin benefits pass-throughs 699.1 640.5 Global 503.1 473.5 Interest on funds held for clients 133.9 118.5 Total Revenues $ 3,495.7 $ 3,310.3 Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2019: Types of Revenues Employer Services PEO Other Total HCM $ 1,570.0 $ — $ (1.5 ) $ 1,568.5 HRO, excluding PEO zero-margin benefits pass-throughs 235.7 356.5 (1.1 ) 591.1 PEO zero-margin benefits pass-throughs — 699.1 — 699.1 Global 503.1 — — 503.1 Interest on funds held for clients 132.6 1.3 — 133.9 Total Segment Revenues $ 2,441.4 $ 1,056.9 $ (2.6 ) $ 3,495.7 Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2018: Types of Revenues Employer Services PEO Other Total HCM $ 1,521.8 $ — $ (1.5 ) $ 1,520.3 HRO, excluding PEO zero-margin benefits pass-throughs 226.1 332.7 (1.3 ) 557.5 PEO zero-margin benefits pass-throughs — 640.5 640.5 Global 473.5 — 473.5 Interest on funds held for clients 116.8 1.7 118.5 Total Segment Revenues $ 2,338.2 $ 974.9 $ (2.8 ) $ 3,310.3 Contract Balances The timing of revenue recognition for our HCM, HRO and Global Solutions is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing. Changes in deferred revenue related to set up fees for the three months ended September 30, 2019 were as follows: Contract Liability Contract liability, July 1, 2019 $ 563.4 Recognition of revenue included in beginning of year contract liability (45.4 ) Contract liability, net of revenue recognized on contracts during the period 31.2 Currency adjustments (4.5 ) Contract liability, September 30, 2019 $ 544.7 |
Earnings per Share (EPS)
Earnings per Share (EPS) | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share (EPS) | Earnings per Share (“EPS”) Basic Effect of Employee Stock Option Shares Effect of Employee Restricted Stock Shares Diluted Three Months Ended September 30, 2019 Net earnings $ 582.4 $ 582.4 Weighted average shares (in millions) 432.7 1.3 1.4 435.4 EPS $ 1.35 $ 1.34 Three Months Ended September 30, 2018 Net earnings $ 505.4 $ 505.4 Weighted average shares (in millions) 436.8 1.4 1.7 439.9 EPS $ 1.16 $ 1.15 Options to purchase 0.7 million and 0.3 million shares of common stock for the three months ended September 30, 2019 and 2018 , respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Other Income, Net
Other Income, Net | 3 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net Three Months Ended September 30, 2019 2018 Interest income on corporate funds $ (32.3 ) $ (28.5 ) Realized gains on available-for-sale securities (2.6 ) (0.4 ) Realized losses on available-for-sale securities 0.3 1.3 Impairment of intangible assets — 12.1 Gain on sale of assets (1.9 ) — Non-service components of pension expense, net (see Note 11) (18.1 ) 1.6 Other income, net $ (54.6 ) $ (13.9 ) In fiscal 2019, the Company wrote down $12.1 million of internally developed software which was determined to have no future use due to redundant software identified as part of an acquisition. |
Corporate Investments and Funds
Corporate Investments and Funds Held For Clients | 3 Months Ended |
Sep. 30, 2019 | |
Corporate Investments And Funds Held For Clients [Abstract] | |
Corporate Investments and Funds Held For Clients | Corporate Investments and Funds Held for Clients Corporate investments and funds held for clients at September 30, 2019 and June 30, 2019 were as follows: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (A) Type of issue: Money market securities, cash and other cash equivalents $ 2,272.2 $ — $ — $ 2,272.2 Available-for-sale securities: Corporate bonds 10,716.8 232.7 (2.2 ) 10,947.3 Asset-backed securities 4,325.9 45.0 (2.8 ) 4,368.1 U.S. Treasury securities 3,474.5 30.9 (5.9 ) 3,499.5 U.S. government agency securities 2,106.7 25.1 (2.2 ) 2,129.6 Canadian government obligations and Canadian government agency obligations 1,155.3 6.2 (5.7 ) 1,155.8 Canadian provincial bonds 793.7 16.0 (0.3 ) 809.4 Municipal bonds 561.3 17.5 (0.1 ) 578.7 Other securities 1,130.5 27.6 (0.5 ) 1,157.6 Total available-for-sale securities 24,264.7 401.0 (19.7 ) 24,646.0 Total corporate investments and funds held for clients $ 26,536.9 $ 401.0 $ (19.7 ) $ 26,918.2 (A) Included within available-for-sale securities are corporate investments with fair values of $4,121.1 million and funds held for clients with fair values of $20,524.9 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (B) Type of issue: Money market securities, cash and other cash equivalents $ 6,796.2 $ — $ — $ 6,796.2 Available-for-sale securities: Corporate bonds 10,691.8 182.8 (6.7 ) 10,867.9 Asset-backed securities 4,658.3 37.8 (5.4 ) 4,690.7 U.S. Treasury securities 2,933.0 23.8 (8.0 ) 2,948.8 US government agency securities 2,612.0 17.7 (5.8 ) 2,623.9 Canadian government obligations and Canadian government agency obligations 1,164.1 7.0 (6.0 ) 1,165.1 Canadian provincial bonds 800.2 14.5 (0.5 ) 814.2 Municipal bonds 596.1 16.4 (0.1 ) 612.4 Other securities 1,116.1 20.6 (0.6 ) 1,136.1 Total available-for-sale securities 24,571.6 320.6 (33.1 ) 24,859.1 Total corporate investments and funds held for clients $ 31,367.8 $ 320.6 $ (33.1 ) $ 31,655.3 (B) Included within available-for-sale securities are corporate investments with fair values of $271.9 million and funds held for clients with fair values of $24,587.2 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2019 . The Company did not transfer any assets between Levels during the three months ended September 30, 2019 or fiscal 2019 . In addition, the Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company had no available-for-sale securities included in Level 1 or Level 3 at September 30, 2019 . The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of September 30, 2019 , are as follows: September 30, 2019 Securities in Unrealized Loss Position Less Than 12 Months Securities in Unrealized Loss Position Greater Than 12 Months Total Gross Fair Market Value Gross Fair Market Value Gross Unrealized Losses Fair Market Value Corporate bonds $ (1.0 ) $ 438.5 $ (1.2 ) $ 615.8 $ (2.2 ) $ 1,054.3 Asset-backed securities (0.9 ) 327.2 (1.9 ) 1,142.8 (2.8 ) 1,470.0 U.S. Treasury securities (0.2 ) 90.8 (5.7 ) 979.7 (5.9 ) 1,070.5 U.S. government agency securities (0.1 ) 61.3 (2.1 ) 945.3 (2.2 ) 1,006.6 Canadian government obligations and Canadian government agency obligations (5.7 ) 794.4 — 1.1 (5.7 ) 795.5 Canadian provincial bonds (0.2 ) 83.9 (0.1 ) 29.8 (0.3 ) 113.7 Municipal bonds (0.1 ) 20.0 — 5.0 (0.1 ) 25.0 Other securities (0.2 ) 22.4 (0.3 ) 67.6 (0.5 ) 90.0 $ (8.4 ) $ 1,838.5 $ (11.3 ) $ 3,787.1 $ (19.7 ) $ 5,625.6 The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2019 , are as follows: June 30, 2019 Securities in Unrealized Loss Position Less Than 12 Months Securities in Unrealized Loss Position Greater Than 12 Months Total Gross Fair Market Value Gross Fair Market Value Gross Unrealized Losses Fair Market Value Corporate bonds $ (0.6 ) $ 151.9 $ (6.1 ) $ 2,055.6 $ (6.7 ) $ 2,207.5 Asset-backed securities (0.2 ) 171.9 (5.2 ) 2,083.5 (5.4 ) 2,255.4 U.S. Treasury securities — 1.8 (8.0 ) 1,159.4 (8.0 ) 1,161.2 U.S. government agency securities — — (5.8 ) 1,671.4 (5.8 ) 1,671.4 Canadian government obligations and Canadian government agency obligations (6.0 ) 662.7 — 1.1 (6.0 ) 663.8 Canadian provincial bonds (0.3 ) 81.5 (0.2 ) 50.1 (0.5 ) 131.6 Municipal bonds — 1.5 (0.1 ) 23.3 (0.1 ) 24.8 Other securities (0.1 ) 36.4 (0.5 ) 148.1 (0.6 ) 184.5 $ (7.2 ) $ 1,107.7 $ (25.9 ) $ 7,192.5 $ (33.1 ) $ 8,300.2 At September 30, 2019 , Corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carry credit ratings of A and above, and have maturities ranging from October 2019 through September 2029 . At September 30, 2019 , asset-backed securities include AAA rated senior tranches of securities with predominantly prime collateral of fixed-rate auto loan, credit card, equipment lease, and rate reduction receivables with fair values of $2,157.9 million , $1,578.7 million , $481.8 million , and $149.7 million , respectively. These securities are collateralized by the cash flows of the underlying pools of receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through September 30, 2019 . At September 30, 2019 , U.S. government agency securities primarily include debt directly issued by Federal Home Loan Banks and Federal Farm Credit Banks with fair values of $1,266.5 million and $661.2 million , respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's, and AA+ by Standard & Poor's, with maturities ranging from November 2019 through January 2029 . At September 30, 2019 , other securities and their fair value primarily include U.S. government agency commercial mortgage-backed securities of $640.3 million issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association, Aa2 rated United Kingdom Gilt securities of $188.1 million , AAA and AA rated supranational bonds of $108.5 million , and AAA and AA rated sovereign bonds of $89.5 million . Classification of corporate investments on the Consolidated Balance Sheets is as follows: September 30, June 30, 2019 2019 Corporate investments: Cash and cash equivalents $ 1,403.9 $ 1,949.2 Short-term marketable securities 3,545.1 10.5 Long-term marketable securities (a) 576.0 261.4 Total corporate investments $ 5,525.0 $ 2,221.1 (a) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets. Funds held for clients have been invested in the following categories: September 30, June 30, 2019 2019 Funds held for clients: Restricted cash and cash equivalents held to satisfy client funds obligations $ 868.3 $ 4,847.0 Restricted short-term marketable securities held to satisfy client funds obligations 1,168.6 5,013.9 Restricted long-term marketable securities held to satisfy client funds obligations 19,356.3 19,573.3 Total funds held for clients $ 21,393.2 $ 29,434.2 Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax, and other payee payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling $21,011.4 million and $29,144.5 million at September 30, 2019 and June 30, 2019 , respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purpose of satisfying the client funds obligations. Of the Company’s funds held for clients at September 30, 2019 and June 30, 2019 , $18,898.2 million and $26,648.0 million , respectively, are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and are eliminated in consolidation. The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows. The Company has reported the cash and cash equivalents related to client funds investments with original maturities of ninety days or less , within the beginning and ending balances of cash, cash equivalents, restricted cash, and restricted cash equivalents. These amounts have been reconciled to the Consolidated Balance Sheets on the Statements of Consolidated Cash Flows. The Company has reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows. Approximately 79% of the available-for-sale securities held a AAA or AA rating at September 30, 2019 , as rated by Moody's, Standard & Poor's, DBRS for Canadian dollar-denominated securities, and Fitch for asset-backed and commercial mortgage-backed securities. All available-for-sale securities were rated as investment grade at September 30, 2019 . Expected maturities of available-for-sale securities at September 30, 2019 are as follows: One year or less $ 4,713.6 One year to two years 6,040.5 Two years to three years 4,743.3 Three years to four years 3,726.7 After four years 5,421.9 Total available-for-sale securities $ 24,646.0 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases During the first quarter of the fiscal year ending June 30, 2020 ("fiscal 2020"), the Company adopted ASC 842 using the optional transition method under which financial results reported in periods prior were not adjusted and continue to be reported in accordance with historic accounting under ASC 840 - Leases. The Company elected the following practical expedients permitted under the lease standard: • The Company did not reassess prior conclusions about lease identification, lease classification or initial direct costs, and did not use hindsight for leases existing at adoption date. • The Company did not record leases with an initial term of 12 months or less on the consolidated balance sheet but continues to expense them on a straight-line basis over the lease term. • The Company elected to combine lease and non-lease components for our facilities leases only. Non-lease components consist primarily of maintenance services. The Company records leases on the consolidated balance sheets as operating lease ROU assets, records the current portion of operating lease liabilities within accrued expenses and other current liabilities and, separately, records long-term operating lease liabilities. The Company has entered into operating lease agreements for facilities and equipment. The Company's leases have remaining lease terms of up to approximately ten years . Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The lease liabilities are measured by discounting future lease payments at the Company’s collateralized incremental borrowing rate for financing instruments of a similar term, unless the implicit rate is readily determinable. ROU assets also include adjustments related to prepaid or deferred lease payments and lease incentives. As of September 30, 2019 , total operating lease ROU assets were $504.0 million , current and long-term operating lease liabilities were approximately $103.3 million and $355.4 million , respectively. The difference between total ROU assets and total lease liabilities are primarily attributable to pre-payments of our obligations and the recognition of various lease incentives. The components of operating lease expense were as follows for the three months ended September 30, 2019 : Operating lease cost $ 44.2 Short-term lease cost 2.7 Variable lease cost 1.3 Total operating lease cost $ 48.2 Information related to our operating lease ROU assets and operating lease liabilities was as follows: September 30, 2019 Cash paid for operating lease liabilities $ 40.2 Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 6.7 Weighted-average remaining lease term (in years) 6 Weighted-average discount rate 2.4 % As of September 30, 2019 , maturities of operating lease liabilities are as follows: Nine months ending June 30, 2020 $ 87.0 Twelve months ending June 30, 2021 97.1 Twelve months ending June 30, 2022 80.8 Twelve months ending June 30, 2023 68.2 Twelve months ending June 30, 2024 47.6 Thereafter 116.0 Total undiscounted lease obligations 496.7 Less: Imputed interest (38.0 ) Net lease obligations $ 458.7 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles Assets, net | Goodwill and Intangible Assets, net Changes in goodwill for the three months ended September 30, 2019 are as follows: Employer Services PEO Services Total Balance at June 30, 2019 $ 2,318.2 $ 4.8 $ 2,323.0 Additions and other adjustments (3.3 ) — (3.3 ) Currency translation adjustments (16.4 ) — (16.4 ) Balance at September 30, 2019 $ 2,298.5 $ 4.8 $ 2,303.3 Components of intangible assets, net, are as follows: September 30, June 30, 2019 2019 Intangible assets: Software and software licenses $ 2,556.5 $ 2,519.3 Customer contracts and lists 867.8 860.7 Other intangibles 238.5 237.9 3,662.8 3,617.9 Less accumulated amortization: Software and software licenses (1,788.0 ) (1,762.3 ) Customer contracts and lists (576.9 ) (566.4 ) Other intangibles (219.0 ) (217.7 ) (2,583.9 ) (2,546.4 ) Intangible assets, net $ 1,078.9 $ 1,071.5 Other intangibles consist primarily of purchased rights, trademarks and trade names (acquired directly or through acquisitions). All intangible assets have finite lives and, as such, are subject to amortization. The weighted average remaining useful life of the intangible assets is 6 years ( 6 years for software and software licenses, 6 years for customer contracts and lists, and 5 years for other intangibles). Amortization of intangible assets was $69.4 million and $53.4 million for the three months ended September 30, 2019 and 2018 , respectively. Estimated future amortization expenses of the Company's existing intangible assets are as follows: Amount Nine months ending June 30, 2020 $ 209.7 Twelve months ending June 30, 2021 $ 223.0 Twelve months ending June 30, 2022 $ 176.6 Twelve months ending June 30, 2023 $ 139.4 Twelve months ending June 30, 2024 $ 108.8 Twelve months ending June 30, 2025 $ 61.4 |
Short-term Financing
Short-term Financing | 3 Months Ended |
Sep. 30, 2019 | |
Short-Term Financing [Abstract] | |
Short-term Financing | Short-term Financing The Company has a $3.8 billion , 364 -day credit agreement that matures in June 2020 with a one year term-out option. The Company also has a $2.75 billion five year credit facility that matures in June 2024 that contains an accordion feature under which the aggregate commitment can be increased by $500 million , subject to the availability of additional commitments. In addition, the Company has a five year $3.75 billion credit facility maturing in June 2023 that also contains an accordion feature under which the aggregate commitment can be increased by $500 million , subject to the availability of additional commitments. The interest rate applicable to committed borrowings is tied to LIBOR, the effective federal funds rate, or the prime rate, depending on the notification provided by the Company to the syndicated financial institutions prior to borrowing. The Company is also required to pay facility fees on the credit agreements. The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary. The Company had no borrowings through September 30, 2019 under the credit agreements. The Company's U.S. short-term funding requirements related to client funds are sometimes obtained on an unsecured basis through the issuance of commercial paper, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. This commercial paper program provides for the issuance of up to $10.3 billion in aggregate maturity value. The Company’s commercial paper program is rated A-1+ by Standard & Poor’s and Prime-1 by Moody’s. These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from overnight to up to 364 days . At September 30, 2019 , the Company had $3,536.7 million of commercial paper outstanding, which was repaid in early October 2019. At June 30, 2019 , the Company had no commercial paper borrowing outstanding. Details of the borrowings under the commercial paper program are as follows: Three Months Ended September 30, 2019 2018 Average daily borrowings (in billions) $ 4.0 $ 3.7 Weighted average interest rates 2.3 % 2.0 % Weighted average maturity (approximately in days) 2 days 2 days The Company’s U.S., Canadian and United Kingdom short-term funding requirements related to client funds obligations are sometimes obtained on a secured basis through the use of reverse repurchase agreements, which are collateralized principally by government and government agency securities, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. These agreements generally have terms ranging from overnight to up to five business days . At September 30, 2019 and June 30, 2019 , the Company had $428.6 million and $262.0 million , respectively, of outstanding obligations related to the reverse repurchase agreements. All outstanding reverse repurchase obligations matured and were fully paid in early October 2019 and early July 2019, respectively. Details of the reverse repurchase agreements are as follows: Three Months Ended September 30, 2019 2018 Average outstanding balances $ 426.6 $ 495.1 Weighted average interest rates 2.0 % 1.7 % |
Long-term Debt
Long-term Debt | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Debt The Company has fixed-rate notes with 5 -year and 10 -year maturities for an aggregate principal amount of $2.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually. The principal amounts and associated effective interest rates of the Notes and other debt as of September 30, 2019 and June 30, 2019 , are as follows: Debt instrument Effective Interest Rate September 30, 2019 June 30, 2019 Fixed-rate 2.25% notes due September 15, 2020 2.37% $ 1,000.0 $ 1,000.0 Fixed-rate 3.375% notes due September 15, 2025 3.47% 1,000.0 1,000.0 Other 9.2 10.9 2,009.2 2,010.9 Less: current portion (1,001.3 ) (2.5 ) Less: unamortized discount and debt issuance costs (4.5 ) (6.2 ) Total long-term debt $ 1,003.4 $ 2,002.2 The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs. As of September 30, 2019 , the fair value of the Notes, based on Level 2 inputs, was $2,074.1 million . For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2019 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plans | Pension Plans The components of net pension expense were as follows: Three Months Ended September 30, 2019 2018 Service cost – benefits earned during the period $ 14.9 $ 14.9 Interest cost on projected benefits 15.4 19.7 Expected return on plan assets (29.5 ) (32.9 ) Net amortization and deferral 1.6 0.1 Settlement charges and special termination benefits (5.1 ) 15.3 Net pension expense $ (2.7 ) $ 17.1 In fiscal 2018, the Company offered a voluntary early retirement program (“VERP”) to certain eligible U.S.-based associates aged 55 or above with at least 10 years of service. During the three months ended September 30, 2018, the Company recorded $15.3 million |
Stock-Based Compensation Plans | Stock-based Compensation Plans. Stock-based compensation consists of the following: • Stock Options. Stock options are granted to employees at exercise prices equal to the fair market value of the Company's common stock on the dates of grant. Stock options generally vest ratably over 4 years and have a term of 10 years . Compensation expense is measured based on the fair value of the stock option on the grant date and recognized on a straight-line basis over the vesting period. Stock options are forfeited if the employee ceases to be employed by the Company prior to vesting. • Restricted Stock. • Time-Based Restricted Stock and Time-Based Restricted Stock Units. Time-based restricted stock and time-based restricted stock units granted September 1, 2018 and after generally vest ratably over 3 years . Time-based restricted stock and time-based restricted stock units granted prior to September 1, 2018 are generally subject to a vesting period of 2 years . Awards are forfeited if the employee ceases to be employed by the Company prior to vesting. Time-based restricted stock cannot be transferred during the vesting period. Compensation expense relating to the issuance of time-based restricted stock is measured based on the fair value of the award on the grant date and recognized on a straight-line basis over the vesting period. Dividends are paid on shares awarded under the time-based restricted stock program. Time-based restricted stock units are settled in cash and cannot be transferred during the vesting period. Compensation expense relating to the issuance of time-based restricted stock units is recorded over the vesting period and is initially based on the fair value of the award on the grant date and is subsequently remeasured at each reporting date during the vesting period based on the change in the ADP stock price. No dividend equivalents are paid on units awarded under the time-based restricted stock unit program. • Performance-Based Restricted Stock and Performance-Based Restricted Stock Units. Performance-based restricted stock and performance-based restricted stock units generally vest over a one to three year performance period and a subsequent service period of up to 38 months . Under these programs, the Company communicates “target awards” at the beginning of the performance period with possible payouts at the end of the performance period ranging from 0% to 150% of the “target awards.” Awards are generally forfeited if the employee ceases to be employed by the Company prior to vesting. Performance-based restricted stock cannot be transferred during the vesting period. Compensation expense relating to the issuance of performance-based restricted stock is recognized over the vesting period based on the fair value of the award on the grant date with subsequent adjustments to the number of shares awarded during the performance period based on probable and actual performance against targets. After the performance period, if the performance targets are achieved, employees are eligible to receive dividends during the remaining vesting period on shares awarded under the performance-based restricted stock program. Performance-based restricted stock units cannot be transferred and are settled in either cash or stock, depending on the employee's home country. Compensation expense relating to the issuance of performance-based restricted stock units settled in cash is recognized over the vesting period initially based on the fair value of the award on the grant date with subsequent adjustments to the number of units awarded during the performance period based on probable and actual performance against targets. In addition, compensation expense is remeasured at each reporting period during the vesting period based on the change in the ADP stock price. Compensation expense relating to the issuance of performance-based restricted stock units settled in stock is recorded over the vesting period based on the fair value of the award on the grant date with subsequent adjustments to the number of units awarded based on the probable and actual performance against targets. Dividend equivalents are paid on awards under the performance-based restricted stock unit program. • Employee Stock Purchase Plan. The Company offers an employee stock purchase plan that allows eligible employees to purchase shares of common stock at a price equal to 95% of the market value for the Company's common stock on the last day of the offering period. This plan has been deemed non-compensatory and, therefore, no compensation expense has been recorded. The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase programs. The Company repurchased 1.9 million and 1.6 million shares in the three months ended September 30, 2019 and 2018 , respectively. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions. The following table represents pre-tax stock-based compensation expense for the three months ended September 30, 2019 and 2018 , respectively: Three Months Ended September 30, 2019 2018 Operating expenses $ 4.0 $ 5.4 Selling, general and administrative expenses 28.3 28.0 System development and programming costs 4.8 5.0 Total stock-based compensation expense $ 37.1 $ 38.4 As of September 30, 2019 , the total remaining unrecognized compensation cost related to non-vested stock options, restricted stock units, and restricted stock awards amounted to $32.9 million , $83.9 million , and $142.7 million , respectively, which will be amortized over the weighted-average remaining requisite service periods of 2.5 years , 1.8 years , and 2.4 years , respectively. During the three months ended September 30, 2019 , the following activity occurred under the Company's existing plans: Stock Options: Number of Options (in thousands) Weighted Average Price (in dollars) Options outstanding at July 1, 2019 3,608 $ 103 Options granted 1,015 $ 170 Options exercised (396 ) $ 87 Options forfeited/canceled (46 ) $ 123 Options outstanding at September 30, 2019 4,181 $ 120 Time-Based Restricted Stock and Time-Based Restricted Stock Units: Number of Shares (in thousands) Number of Units (in thousands) Restricted shares/units outstanding at July 1, 2019 1,272 290 Restricted shares/units granted 504 97 Restricted shares/units vested (806 ) (193 ) Restricted shares/units forfeited (35 ) (8 ) Restricted shares/units outstanding at September 30, 2019 935 186 Performance-Based Restricted Stock and Performance-Based Restricted Stock Units: Number of Shares (in thousands) Number of Units (in thousands) Restricted shares/units outstanding at July 1, 2019 250 867 Restricted shares/units granted 112 369 Restricted shares/units vested (171 ) (361 ) Restricted shares/units forfeited (3 ) (14 ) Restricted shares/units outstanding at September 30, 2019 188 861 The fair value for stock options granted was estimated at the date of grant using the following assumptions: Three Months Ended September 30, 2019 2018 Risk-free interest rate 1.4 % 2.7 % Dividend yield 1.9 % 1.9 % Weighted average volatility factor 19.3 % 20.9 % Weighted average expected life (in years) 5.4 5.4 Weighted average fair value (in dollars) $ 24.40 $ 26.60 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended September 30, 2019 and 2018 was 21.2% and 21.9% , respectively. The decrease in the effective tax rate is due to an increase in tax incentives related to our software development activities and a decrease in reserves for uncertain tax positions in the three months ended September 30, 2019 . This was partially offset by a decrease in the excess tax benefit on stock-based compensation in the three months ended September 30, 2019 and the income tax benefit related to the Tax Cuts and Job Act in the three months ended September 30, 2018 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In June 2018, a potential class action complaint was filed against ADP in the Circuit Court of Cook County, Illinois. The complaint asserts that ADP violated the Illinois Biometric Privacy Act, was negligent and unjustly enriched itself in connection with its collection, use and storage of biometric data of employees of its clients who are residents of Illinois in connection with certain services provided by ADP to clients in Illinois. The complaint seeks statutory and other unspecified monetary damages, injunctive relief and attorney’s fees. In addition, similar potential class action complaints have been filed in Illinois state courts against ADP and/or certain of its clients with respect to the collection, use and storage of biometric data of the employees of these clients. All of these claims are still in their earliest stages and the Company is unable to estimate any reasonably possible loss, or range of loss, with respect to these matters. The Company intends to vigorously defend against these lawsuits. The Company is subject to various claims, litigation and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. Management currently believes that the resolution of these claims, litigation and regulatory compliance matters against us, individually or in the aggregate, will not have a material adverse impact on our consolidated results of operations, financial condition or cash flows. These matters are subject to inherent uncertainties and management's view of these matters may change in the future. It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material losses related to such representations and warranties. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders' Equity Changes in stockholders' equity by component are as follows: Three Months Ended September 30, 2019 Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total Balance at June 30, 2019 $ 63.9 $ 1,183.2 $ 17,500.6 $ (13,090.5 ) $ (257.3 ) $ 5,399.9 Net earnings — — 582.4 — — 582.4 Other comprehensive income — — — — 23.4 23.4 Stock-based compensation expense — 36.0 — — — 36.0 Issuances relating to stock compensation plans — (5.5 ) — 70.5 — 65.0 Treasury stock acquired (1.9 shares) — — — (392.6 ) — (392.6 ) Dividends declared ($0.79 per share) — — (346.6 ) — — (346.6 ) Other — — (6.8 ) — — (6.8 ) Balance at September 30, 2019 $ 63.9 $ 1,213.7 $ 17,729.6 $ (13,412.6 ) $ (233.9 ) $ 5,360.7 Three Months Ended September 30, 2018 Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total Balance at June 30, 2018 $ 63.9 $ 1,014.8 $ 16,546.6 $ (12,209.6 ) $ (679.8 ) $ 4,735.9 Net earnings — — 505.4 — — 505.4 Other comprehensive income — — — — (60.3 ) (60.3 ) Stock-based compensation expense — 34.6 — — — 34.6 Issuances relating to stock compensation plans — (14.3 ) — 70.2 — 55.9 Treasury stock acquired (1.6 shares) — — — (281.8 ) — (281.8 ) Dividends declared ($0.69 per share) — — (310.9 ) — — (310.9 ) Balance at September 30, 2018 $ 63.9 $ 1,035.1 $ 16,741.1 $ (12,421.2 ) $ (740.1 ) $ 4,678.8 |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) | 3 Months Ended |
Sep. 30, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | |
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) | Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”) Changes in AOCI by component are as follows: Three Months Ended September 30, 2019 Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Pension Liability Accumulated Other Comprehensive Loss Balance at June 30, 2019 $ (269.2 ) $ 224.6 $ (212.7 ) $ (257.3 ) Other comprehensive (loss)/income before reclassification adjustments (48.9 ) 96.1 — 47.2 Tax effect — (20.8 ) — (20.8 ) Reclassification adjustments to — (2.3 ) (A) (1.7 ) (B) (4.0 ) Tax effect — 0.5 0.5 1.0 Balance at September 30, 2019 $ (318.1 ) $ 298.1 $ (213.9 ) $ (233.9 ) Three Months Ended September 30, 2018 Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Pension Liability Accumulated Other Comprehensive Loss Balance at June 30, 2018 $ (227.0 ) $ (274.0 ) $ (178.8 ) $ (679.8 ) Other comprehensive loss before reclassification adjustments (22.9 ) (50.4 ) — (73.3 ) Tax effect — 12.3 — 12.3 Reclassification adjustments to net earnings — 0.9 (A) 0.2 (B) 1.1 Tax effect — (0.2 ) (0.2 ) (0.4 ) Balance at September 30, 2018 $ (249.9 ) $ (311.4 ) $ (178.8 ) $ (740.1 ) (A) Reclassification adjustments out of AOCI are included within Other income, net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension expense (see Note 11 ). |
Interim Financial Data by Segme
Interim Financial Data by Segment | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Interim Financial Data by Segment | Interim Financial Data by Segment Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. The primary components of the “Other” segment are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, non-recurring gains and losses, the elimination of intercompany transactions, and interest expense. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility. Beginning in the first quarter of fiscal 2020, the Company made changes to the allocation methodology for certain corporate allocations, in both the current period and the prior period in the table below, which did not materially affect reportable segment results. In addition, the segment results in the table below reflect the impact of the revision to PEO revenues for comparability. Refer to Note 1 to our consolidated financial statements for more information on this revision. Segment Results: Revenues Three Months Ended September 30, 2019 2018 Employer Services $ 2,441.4 $ 2,338.2 PEO Services 1,056.9 974.9 Other (2.6 ) (2.8 ) $ 3,495.7 $ 3,310.3 Earnings before Income Taxes Three Months Ended September 30, 2019 2018 Employer Services $ 681.0 $ 639.8 PEO Services 148.4 143.7 Other (90.3 ) (136.7 ) $ 739.1 $ 646.8 |
Basis of Presentation PEO Reven
Basis of Presentation PEO Revenues (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Income Statement [Abstract] | |
Schedule of Revision to Previously Reported Financial Information | the accompanying Statements of Consolidated Earnings for the three months ended September 30, 2018 has been revised to correct the amounts previously reported on a gross basis to a net basis by reducing PEO revenues and operating expenses for associated costs of an equal amount, as follows: Three Months Ended September 30, 2018 As reported Revision As revised PEO revenues $ 986.1 (12.9 ) $ 973.2 TOTAL REVENUES 3,323.2 (12.9 ) 3,310.3 Operating expenses 1,709.9 (12.9 ) 1,697.0 Total Expenses 2,690.3 (12.9 ) 2,677.4 EARNINGS BEFORE INCOME TAXES 646.8 — 646.8 Provision for income taxes 141.4 — 141.4 NET EARNINGS $ 505.4 — $ 505.4 In addition, the revised amounts for the fiscal year ended June 30, 2019 are as follows: Twelve Months Ended June 30, 2019 As reported Revision As revised PEO revenues $ 4,237.5 (65.0 ) $ 4,172.5 TOTAL REVENUES 14,175.2 (65.0 ) 14,110.2 Operating expenses 7,145.9 (65.0 ) 7,080.9 Total Expenses 11,280.7 (65.0 ) 11,215.7 EARNINGS BEFORE INCOME TAXES 3,005.6 — 3,005.6 Provision for income taxes 712.8 — 712.8 NET EARNINGS $ 2,292.8 — $ 2,292.8 |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Recently Issued Accounting Pronouncements The following table summarizes recent ASU's issued by the Financial Accounting Standards Board (“FASB”) which have been assessed: Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-14 Compensation-Retirement Benefits-Defined Benefit Plans This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. July 1, 2021 (Fiscal 2022) The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows. Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-13 Fair Value Measurement This update modifies the disclosure requirements on fair value measurements. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. July 1, 2020 (Fiscal 2021) The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows. ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This update introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. In addition, this update modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. July 1, 2020 (Fiscal 2021) The adoption of this guidance will not have a material impact on its consolidated results of operations, financial condition, or cash flows. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2019: Types of Revenues Employer Services PEO Other Total HCM $ 1,570.0 $ — $ (1.5 ) $ 1,568.5 HRO, excluding PEO zero-margin benefits pass-throughs 235.7 356.5 (1.1 ) 591.1 PEO zero-margin benefits pass-throughs — 699.1 — 699.1 Global 503.1 — — 503.1 Interest on funds held for clients 132.6 1.3 — 133.9 Total Segment Revenues $ 2,441.4 $ 1,056.9 $ (2.6 ) $ 3,495.7 Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2018: Types of Revenues Employer Services PEO Other Total HCM $ 1,521.8 $ — $ (1.5 ) $ 1,520.3 HRO, excluding PEO zero-margin benefits pass-throughs 226.1 332.7 (1.3 ) 557.5 PEO zero-margin benefits pass-throughs — 640.5 640.5 Global 473.5 — 473.5 Interest on funds held for clients 116.8 1.7 118.5 Total Segment Revenues $ 2,338.2 $ 974.9 $ (2.8 ) $ 3,310.3 The following tables provide details of revenue by our strategic pillars with disaggregation for PEO zero-margin benefits pass-throughs and client fund interest, and includes a reconciliation to the Company’s reportable segments: Three Months Ended September 30, Types of Revenues 2019 2018 HCM $ 1,568.5 $ 1,520.3 HRO, excluding PEO zero-margin benefits pass-throughs 591.1 557.5 PEO zero-margin benefits pass-throughs 699.1 640.5 Global 503.1 473.5 Interest on funds held for clients 133.9 118.5 Total Revenues $ 3,495.7 $ 3,310.3 |
Contract with Customer, Liability | Changes in deferred revenue related to set up fees for the three months ended September 30, 2019 were as follows: Contract Liability Contract liability, July 1, 2019 $ 563.4 Recognition of revenue included in beginning of year contract liability (45.4 ) Contract liability, net of revenue recognized on contracts during the period 31.2 Currency adjustments (4.5 ) Contract liability, September 30, 2019 $ 544.7 |
Earnings per Share (EPS) (Table
Earnings per Share (EPS) (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic Effect of Employee Stock Option Shares Effect of Employee Restricted Stock Shares Diluted Three Months Ended September 30, 2019 Net earnings $ 582.4 $ 582.4 Weighted average shares (in millions) 432.7 1.3 1.4 435.4 EPS $ 1.35 $ 1.34 Three Months Ended September 30, 2018 Net earnings $ 505.4 $ 505.4 Weighted average shares (in millions) 436.8 1.4 1.7 439.9 EPS $ 1.16 $ 1.15 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income, net | Three Months Ended September 30, 2019 2018 Interest income on corporate funds $ (32.3 ) $ (28.5 ) Realized gains on available-for-sale securities (2.6 ) (0.4 ) Realized losses on available-for-sale securities 0.3 1.3 Impairment of intangible assets — 12.1 Gain on sale of assets (1.9 ) — Non-service components of pension expense, net (see Note 11) (18.1 ) 1.6 Other income, net $ (54.6 ) $ (13.9 ) |
Corporate Investments and Fun_2
Corporate Investments and Funds Held For Clients (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Corporate Investments And Funds Held For Clients [Abstract] | |
Available-for-sale Securities | Corporate investments and funds held for clients at September 30, 2019 and June 30, 2019 were as follows: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (A) Type of issue: Money market securities, cash and other cash equivalents $ 2,272.2 $ — $ — $ 2,272.2 Available-for-sale securities: Corporate bonds 10,716.8 232.7 (2.2 ) 10,947.3 Asset-backed securities 4,325.9 45.0 (2.8 ) 4,368.1 U.S. Treasury securities 3,474.5 30.9 (5.9 ) 3,499.5 U.S. government agency securities 2,106.7 25.1 (2.2 ) 2,129.6 Canadian government obligations and Canadian government agency obligations 1,155.3 6.2 (5.7 ) 1,155.8 Canadian provincial bonds 793.7 16.0 (0.3 ) 809.4 Municipal bonds 561.3 17.5 (0.1 ) 578.7 Other securities 1,130.5 27.6 (0.5 ) 1,157.6 Total available-for-sale securities 24,264.7 401.0 (19.7 ) 24,646.0 Total corporate investments and funds held for clients $ 26,536.9 $ 401.0 $ (19.7 ) $ 26,918.2 (A) Included within available-for-sale securities are corporate investments with fair values of $4,121.1 million and funds held for clients with fair values of $20,524.9 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (B) Type of issue: Money market securities, cash and other cash equivalents $ 6,796.2 $ — $ — $ 6,796.2 Available-for-sale securities: Corporate bonds 10,691.8 182.8 (6.7 ) 10,867.9 Asset-backed securities 4,658.3 37.8 (5.4 ) 4,690.7 U.S. Treasury securities 2,933.0 23.8 (8.0 ) 2,948.8 US government agency securities 2,612.0 17.7 (5.8 ) 2,623.9 Canadian government obligations and Canadian government agency obligations 1,164.1 7.0 (6.0 ) 1,165.1 Canadian provincial bonds 800.2 14.5 (0.5 ) 814.2 Municipal bonds 596.1 16.4 (0.1 ) 612.4 Other securities 1,116.1 20.6 (0.6 ) 1,136.1 Total available-for-sale securities 24,571.6 320.6 (33.1 ) 24,859.1 Total corporate investments and funds held for clients $ 31,367.8 $ 320.6 $ (33.1 ) $ 31,655.3 (B) Included within available-for-sale securities are corporate investments with fair values of $271.9 million and funds held for clients with fair values of $24,587.2 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of September 30, 2019 , are as follows: September 30, 2019 Securities in Unrealized Loss Position Less Than 12 Months Securities in Unrealized Loss Position Greater Than 12 Months Total Gross Fair Market Value Gross Fair Market Value Gross Unrealized Losses Fair Market Value Corporate bonds $ (1.0 ) $ 438.5 $ (1.2 ) $ 615.8 $ (2.2 ) $ 1,054.3 Asset-backed securities (0.9 ) 327.2 (1.9 ) 1,142.8 (2.8 ) 1,470.0 U.S. Treasury securities (0.2 ) 90.8 (5.7 ) 979.7 (5.9 ) 1,070.5 U.S. government agency securities (0.1 ) 61.3 (2.1 ) 945.3 (2.2 ) 1,006.6 Canadian government obligations and Canadian government agency obligations (5.7 ) 794.4 — 1.1 (5.7 ) 795.5 Canadian provincial bonds (0.2 ) 83.9 (0.1 ) 29.8 (0.3 ) 113.7 Municipal bonds (0.1 ) 20.0 — 5.0 (0.1 ) 25.0 Other securities (0.2 ) 22.4 (0.3 ) 67.6 (0.5 ) 90.0 $ (8.4 ) $ 1,838.5 $ (11.3 ) $ 3,787.1 $ (19.7 ) $ 5,625.6 The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2019 , are as follows: June 30, 2019 Securities in Unrealized Loss Position Less Than 12 Months Securities in Unrealized Loss Position Greater Than 12 Months Total Gross Fair Market Value Gross Fair Market Value Gross Unrealized Losses Fair Market Value Corporate bonds $ (0.6 ) $ 151.9 $ (6.1 ) $ 2,055.6 $ (6.7 ) $ 2,207.5 Asset-backed securities (0.2 ) 171.9 (5.2 ) 2,083.5 (5.4 ) 2,255.4 U.S. Treasury securities — 1.8 (8.0 ) 1,159.4 (8.0 ) 1,161.2 U.S. government agency securities — — (5.8 ) 1,671.4 (5.8 ) 1,671.4 Canadian government obligations and Canadian government agency obligations (6.0 ) 662.7 — 1.1 (6.0 ) 663.8 Canadian provincial bonds (0.3 ) 81.5 (0.2 ) 50.1 (0.5 ) 131.6 Municipal bonds — 1.5 (0.1 ) 23.3 (0.1 ) 24.8 Other securities (0.1 ) 36.4 (0.5 ) 148.1 (0.6 ) 184.5 $ (7.2 ) $ 1,107.7 $ (25.9 ) $ 7,192.5 $ (33.1 ) $ 8,300.2 |
Classification Of Corporate Investments On The Consolidated Balance Sheets | Classification of corporate investments on the Consolidated Balance Sheets is as follows: September 30, June 30, 2019 2019 Corporate investments: Cash and cash equivalents $ 1,403.9 $ 1,949.2 Short-term marketable securities 3,545.1 10.5 Long-term marketable securities (a) 576.0 261.4 Total corporate investments $ 5,525.0 $ 2,221.1 (a) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. |
Schedule Of Investment Of Funds Held For Clients | Funds held for clients have been invested in the following categories: September 30, June 30, 2019 2019 Funds held for clients: Restricted cash and cash equivalents held to satisfy client funds obligations $ 868.3 $ 4,847.0 Restricted short-term marketable securities held to satisfy client funds obligations 1,168.6 5,013.9 Restricted long-term marketable securities held to satisfy client funds obligations 19,356.3 19,573.3 Total funds held for clients $ 21,393.2 $ 29,434.2 |
Expected Maturities Of Available-For-Sale Securities | Expected maturities of available-for-sale securities at September 30, 2019 are as follows: One year or less $ 4,713.6 One year to two years 6,040.5 Two years to three years 4,743.3 Three years to four years 3,726.7 After four years 5,421.9 Total available-for-sale securities $ 24,646.0 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of operating lease expense were as follows for the three months ended September 30, 2019 : Operating lease cost $ 44.2 Short-term lease cost 2.7 Variable lease cost 1.3 Total operating lease cost $ 48.2 |
Operating lease ROU assets and liabilities [Table Text Block] | Information related to our operating lease ROU assets and operating lease liabilities was as follows: September 30, 2019 Cash paid for operating lease liabilities $ 40.2 Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 6.7 Weighted-average remaining lease term (in years) 6 Weighted-average discount rate 2.4 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of September 30, 2019 , maturities of operating lease liabilities are as follows: Nine months ending June 30, 2020 $ 87.0 Twelve months ending June 30, 2021 97.1 Twelve months ending June 30, 2022 80.8 Twelve months ending June 30, 2023 68.2 Twelve months ending June 30, 2024 47.6 Thereafter 116.0 Total undiscounted lease obligations 496.7 Less: Imputed interest (38.0 ) Net lease obligations $ 458.7 |
Goodwill and Intangibles Assets
Goodwill and Intangibles Assets, net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In Goodwill | Changes in goodwill for the three months ended September 30, 2019 are as follows: Employer Services PEO Services Total Balance at June 30, 2019 $ 2,318.2 $ 4.8 $ 2,323.0 Additions and other adjustments (3.3 ) — (3.3 ) Currency translation adjustments (16.4 ) — (16.4 ) Balance at September 30, 2019 $ 2,298.5 $ 4.8 $ 2,303.3 |
Components Of Finite-Lived Intangible Assets | Components of intangible assets, net, are as follows: September 30, June 30, 2019 2019 Intangible assets: Software and software licenses $ 2,556.5 $ 2,519.3 Customer contracts and lists 867.8 860.7 Other intangibles 238.5 237.9 3,662.8 3,617.9 Less accumulated amortization: Software and software licenses (1,788.0 ) (1,762.3 ) Customer contracts and lists (576.9 ) (566.4 ) Other intangibles (219.0 ) (217.7 ) (2,583.9 ) (2,546.4 ) Intangible assets, net $ 1,078.9 $ 1,071.5 |
Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expenses of the Company's existing intangible assets are as follows: Amount Nine months ending June 30, 2020 $ 209.7 Twelve months ending June 30, 2021 $ 223.0 Twelve months ending June 30, 2022 $ 176.6 Twelve months ending June 30, 2023 $ 139.4 Twelve months ending June 30, 2024 $ 108.8 Twelve months ending June 30, 2025 $ 61.4 |
Short-term Financing Short-term
Short-term Financing Short-term Financing - Commercial Paper program (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Commercial paper program [Abstract] | |
Commercial Paper Program [Table Text Block] | Details of the borrowings under the commercial paper program are as follows: Three Months Ended September 30, 2019 2018 Average daily borrowings (in billions) $ 4.0 $ 3.7 Weighted average interest rates 2.3 % 2.0 % Weighted average maturity (approximately in days) 2 days 2 days |
Short-term Financing Short-te_2
Short-term Financing Short-term Financing - Reverse purchase agreement (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Commercial paper program [Abstract] | |
Reverse Repurchase Agreement [Table Text Block] | Details of the reverse repurchase agreements are as follows: Three Months Ended September 30, 2019 2018 Average outstanding balances $ 426.6 $ 495.1 Weighted average interest rates 2.0 % 1.7 % |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | The principal amounts and associated effective interest rates of the Notes and other debt as of September 30, 2019 and June 30, 2019 , are as follows: Debt instrument Effective Interest Rate September 30, 2019 June 30, 2019 Fixed-rate 2.25% notes due September 15, 2020 2.37% $ 1,000.0 $ 1,000.0 Fixed-rate 3.375% notes due September 15, 2025 3.47% 1,000.0 1,000.0 Other 9.2 10.9 2,009.2 2,010.9 Less: current portion (1,001.3 ) (2.5 ) Less: unamortized discount and debt issuance costs (4.5 ) (6.2 ) Total long-term debt $ 1,003.4 $ 2,002.2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components Of Stock-Based Compensation Expense | The following table represents pre-tax stock-based compensation expense for the three months ended September 30, 2019 and 2018 , respectively: Three Months Ended September 30, 2019 2018 Operating expenses $ 4.0 $ 5.4 Selling, general and administrative expenses 28.3 28.0 System development and programming costs 4.8 5.0 Total stock-based compensation expense $ 37.1 $ 38.4 |
Schedule of Net Benefit Costs | The components of net pension expense were as follows: Three Months Ended September 30, 2019 2018 Service cost – benefits earned during the period $ 14.9 $ 14.9 Interest cost on projected benefits 15.4 19.7 Expected return on plan assets (29.5 ) (32.9 ) Net amortization and deferral 1.6 0.1 Settlement charges and special termination benefits (5.1 ) 15.3 Net pension expense $ (2.7 ) $ 17.1 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Components of Stockholders' Equity | Changes in stockholders' equity by component are as follows: Three Months Ended September 30, 2019 Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total Balance at June 30, 2019 $ 63.9 $ 1,183.2 $ 17,500.6 $ (13,090.5 ) $ (257.3 ) $ 5,399.9 Net earnings — — 582.4 — — 582.4 Other comprehensive income — — — — 23.4 23.4 Stock-based compensation expense — 36.0 — — — 36.0 Issuances relating to stock compensation plans — (5.5 ) — 70.5 — 65.0 Treasury stock acquired (1.9 shares) — — — (392.6 ) — (392.6 ) Dividends declared ($0.79 per share) — — (346.6 ) — — (346.6 ) Other — — (6.8 ) — — (6.8 ) Balance at September 30, 2019 $ 63.9 $ 1,213.7 $ 17,729.6 $ (13,412.6 ) $ (233.9 ) $ 5,360.7 Three Months Ended September 30, 2018 Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total Balance at June 30, 2018 $ 63.9 $ 1,014.8 $ 16,546.6 $ (12,209.6 ) $ (679.8 ) $ 4,735.9 Net earnings — — 505.4 — — 505.4 Other comprehensive income — — — — (60.3 ) (60.3 ) Stock-based compensation expense — 34.6 — — — 34.6 Issuances relating to stock compensation plans — (14.3 ) — 70.2 — 55.9 Treasury stock acquired (1.6 shares) — — — (281.8 ) — (281.8 ) Dividends declared ($0.69 per share) — — (310.9 ) — — (310.9 ) Balance at September 30, 2018 $ 63.9 $ 1,035.1 $ 16,741.1 $ (12,421.2 ) $ (740.1 ) $ 4,678.8 |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | Changes in AOCI by component are as follows: Three Months Ended September 30, 2019 Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Pension Liability Accumulated Other Comprehensive Loss Balance at June 30, 2019 $ (269.2 ) $ 224.6 $ (212.7 ) $ (257.3 ) Other comprehensive (loss)/income before reclassification adjustments (48.9 ) 96.1 — 47.2 Tax effect — (20.8 ) — (20.8 ) Reclassification adjustments to — (2.3 ) (A) (1.7 ) (B) (4.0 ) Tax effect — 0.5 0.5 1.0 Balance at September 30, 2019 $ (318.1 ) $ 298.1 $ (213.9 ) $ (233.9 ) Three Months Ended September 30, 2018 Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Pension Liability Accumulated Other Comprehensive Loss Balance at June 30, 2018 $ (227.0 ) $ (274.0 ) $ (178.8 ) $ (679.8 ) Other comprehensive loss before reclassification adjustments (22.9 ) (50.4 ) — (73.3 ) Tax effect — 12.3 — 12.3 Reclassification adjustments to net earnings — 0.9 (A) 0.2 (B) 1.1 Tax effect — (0.2 ) (0.2 ) (0.4 ) Balance at September 30, 2018 $ (249.9 ) $ (311.4 ) $ (178.8 ) $ (740.1 ) (A) Reclassification adjustments out of AOCI are included within Other income, net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension expense (see Note 11 ). |
Interim Financial Data by Seg_2
Interim Financial Data by Segment (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment Results: Revenues Three Months Ended September 30, 2019 2018 Employer Services $ 2,441.4 $ 2,338.2 PEO Services 1,056.9 974.9 Other (2.6 ) (2.8 ) $ 3,495.7 $ 3,310.3 Earnings before Income Taxes Three Months Ended September 30, 2019 2018 Employer Services $ 681.0 $ 639.8 PEO Services 148.4 143.7 Other (90.3 ) (136.7 ) $ 739.1 $ 646.8 |
Basis of Presentation PEO Rev_2
Basis of Presentation PEO Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenues, Net | $ 2,306.2 | $ 2,218.6 | ||
Interest On Funds Held Clients | 133.9 | 118.5 | ||
P E O Revenues | [1] | 1,055.6 | 973.2 | $ 4,172.5 |
Revenues | 3,495.7 | 3,310.3 | 14,110.2 | |
Operating Costs and Expenses | 1,787.7 | 1,697 | 7,080.9 | |
Systems development programming costs | 168.2 | 158 | ||
Cost, Depreciation and Amortization | 88.9 | 72.6 | ||
Selling, General and Administrative Expense | 726.5 | 713.9 | ||
Interest Expense | 39.9 | 35.9 | ||
Costs and Expenses | 2,811.2 | 2,677.4 | 11,215.7 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 739.1 | 646.8 | 3,005.6 | |
Income Tax Expense (Benefit) | 156.7 | 141.4 | 712.8 | |
Net Income (Loss) Attributable to Parent | $ 582.4 | 505.4 | 2,292.8 | |
Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
P E O Revenues | [1] | (12.9) | (65) | |
Revenues | (12.9) | (65) | ||
Operating Costs and Expenses | (12.9) | (65) | ||
Costs and Expenses | (12.9) | (65) | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 0 | 0 | ||
Income Tax Expense (Benefit) | 0 | 0 | ||
Net Income (Loss) Attributable to Parent | 0 | 0 | ||
Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
P E O Revenues | [1] | 986.1 | 4,237.5 | |
Revenues | 3,323.2 | 14,175.2 | ||
Operating Costs and Expenses | 1,709.9 | 7,145.9 | ||
Costs and Expenses | 2,690.3 | 11,280.7 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 646.8 | 3,005.6 | ||
Income Tax Expense (Benefit) | 141.4 | 712.8 | ||
Net Income (Loss) Attributable to Parent | $ 505.4 | $ 2,292.8 | ||
[1] | Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $10,510.6 million and $9,629.4 million for the three months ended September 30, 2019 and 2018 |
New Accounting Pronouncements_2
New Accounting Pronouncements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jul. 01, 2019 | Jun. 30, 2019 |
Adoption of Lease Standard | |||
Operating Lease, Right-of-Use Asset | $ 504 | $ 573.3 | $ 0 |
Operating Lease, Liability, Noncurrent | $ 355.4 | $ 522.6 | $ 0 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3,495.7 | $ 3,310.3 |
Employer Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,441.4 | 2,338.2 |
PEO | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,056.9 | 974.9 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (2.6) | (2.8) |
HCM | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,568.5 | 1,520.3 |
HCM | Employer Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,570 | 1,521.8 |
HCM | PEO | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
HCM | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (1.5) | (1.5) |
HRO [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 591.1 | 557.5 |
HRO [Member] | Employer Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 235.7 | 226.1 |
HRO [Member] | PEO | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 356.5 | 332.7 |
HRO [Member] | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (1.1) | (1.3) |
PEO Benefits Pass-throughs | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 699.1 | 640.5 |
PEO Benefits Pass-throughs | Employer Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
PEO Benefits Pass-throughs | PEO | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 699.1 | 640.5 |
PEO Benefits Pass-throughs | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | |
Global | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 503.1 | 473.5 |
Global | Employer Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 503.1 | 473.5 |
Global | PEO | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Global | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | |
Client Fund Interest | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 133.9 | 118.5 |
Client Fund Interest | Employer Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 132.6 | 116.8 |
Client Fund Interest | PEO | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1.3 | 1.7 |
Client Fund Interest | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 |
Revenue (Contract Liability) (D
Revenue (Contract Liability) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Change In Contract With Customer, Liability [Roll Forward] | |
Contract liability, July 1, 2019 | $ 563.4 |
Recognition of revenue included in beginning of year contract liability | (45.4) |
Contract liability, net of revenue recognized on contracts during the period | 31.2 |
Currency adjustments | (4.5) |
Contract liability, September 30, 2019 | $ 544.7 |
Earnings per Share (EPS) (Detai
Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |||
Basic weighted average shares outstanding (shares) | 432.7 | 436.8 | |
Effect of Employee Stock Option Shares (shares) | 1.3 | 1.4 | |
Effect of Employee Restricted Stock Shares (shares) | 1.4 | 1.7 | |
Diluted weighted average shares outstanding (shares) | 435.4 | 439.9 | |
Basic EPS from continuing operations (in US$ per share) | $ 1.35 | $ 1.16 | |
Diluted EPS from continuing operations (in US$ per share) | $ 1.34 | $ 1.15 | |
Net earnings | $ 582.4 | $ 505.4 | $ 2,292.8 |
Options excluded from the calculation of diluted earnings per share (shares) | 0.7 | 0.3 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||
Interest income on corporate funds | $ (32.3) | $ (28.5) |
Realized gains on available-for-sale securities | (2.6) | (0.4) |
Realized losses on available-for-sale securities | 0.3 | 1.3 |
Impairment of intangible assets | 0 | 12.1 |
Gain on sale of assets | (1.9) | 0 |
Non-service components of pension expense, net (see Note 11) | (18.1) | 1.6 |
Other income, net | $ (54.6) | $ (13.9) |
Other Income, Net (Narrative) (
Other Income, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule Of Non-Service Component [Line Items] | ||
Impairment of intangible assets | $ 0 | $ 12.1 |
Corporate Investments and Fun_3
Corporate Investments and Funds Held For Clients (Corporate Investments And Funds Held For Clients) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Money market securities and other cash equivalents - Amortized Cost | $ 2,272.2 | $ 6,796.2 | ||
Money market securities and other cash equivalents - Gross Unrealized Gains | 0 | 0 | ||
Money market securities and other cash equivalents - Gross Unrealized Losses | 0 | 0 | ||
Money market securities and other cash equivalents - Fair Market Value | 2,272.2 | 6,796.2 | ||
Available-for-sale securities - Amortized Cost | 24,264.7 | 24,571.6 | ||
Available-for-sale securities - Gross Unrealized Gains | 401 | 320.6 | ||
Available-for-sale securities - Gross Unrealized Losses | (19.7) | (33.1) | ||
Available-for-sale securities - Fair Market Value | 24,646 | [1] | 24,859.1 | [2] |
Total corporate investments and funds held for clients - Amortized Cost | 26,536.9 | 31,367.8 | ||
Total corporate investments and funds held for clients - Gross Unrealized Gains | 401 | 320.6 | ||
Total corporate investments and funds held for clients - Gross Unrealized Losses | (19.7) | (33.1) | ||
Total corporate investments and funds held for clients - Fair Market Value | 26,918.2 | 31,655.3 | ||
Corporate Investments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 4,121.1 | 271.9 | ||
Funds Held For Clients | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 20,524.9 | 24,587.2 | ||
Corporate bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Amortized Cost | 10,716.8 | 10,691.8 | ||
Available-for-sale securities - Gross Unrealized Gains | 232.7 | 182.8 | ||
Available-for-sale securities - Gross Unrealized Losses | (2.2) | (6.7) | ||
Available-for-sale securities - Fair Market Value | 10,947.3 | 10,867.9 | ||
Asset-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Amortized Cost | 4,325.9 | 4,658.3 | ||
Available-for-sale securities - Gross Unrealized Gains | 45 | 37.8 | ||
Available-for-sale securities - Gross Unrealized Losses | (2.8) | (5.4) | ||
Available-for-sale securities - Fair Market Value | 4,368.1 | 4,690.7 | ||
U.S. Treasury securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Amortized Cost | 2,106.7 | 2,612 | ||
Available-for-sale securities - Gross Unrealized Gains | 25.1 | 17.7 | ||
Available-for-sale securities - Gross Unrealized Losses | (2.2) | (5.8) | ||
Available-for-sale securities - Fair Market Value | 2,129.6 | 2,623.9 | ||
U.S. government agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Amortized Cost | 3,474.5 | 2,933 | ||
Available-for-sale securities - Gross Unrealized Gains | 30.9 | 23.8 | ||
Available-for-sale securities - Gross Unrealized Losses | (5.9) | (8) | ||
Available-for-sale securities - Fair Market Value | 3,499.5 | 2,948.8 | ||
Canadian government obligations and Canadian government agency obligations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Amortized Cost | 1,155.3 | 1,164.1 | ||
Available-for-sale securities - Gross Unrealized Gains | 6.2 | 7 | ||
Available-for-sale securities - Gross Unrealized Losses | (5.7) | (6) | ||
Available-for-sale securities - Fair Market Value | 1,155.8 | 1,165.1 | ||
Canadian provincial bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Amortized Cost | 793.7 | 800.2 | ||
Available-for-sale securities - Gross Unrealized Gains | 16 | 14.5 | ||
Available-for-sale securities - Gross Unrealized Losses | (0.3) | (0.5) | ||
Available-for-sale securities - Fair Market Value | 809.4 | 814.2 | ||
Municipal bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Amortized Cost | 561.3 | 596.1 | ||
Available-for-sale securities - Gross Unrealized Gains | 17.5 | 16.4 | ||
Available-for-sale securities - Gross Unrealized Losses | (0.1) | (0.1) | ||
Available-for-sale securities - Fair Market Value | 578.7 | 612.4 | ||
Other securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Amortized Cost | 1,130.5 | 1,116.1 | ||
Available-for-sale securities - Gross Unrealized Gains | 27.6 | 20.6 | ||
Available-for-sale securities - Gross Unrealized Losses | (0.5) | (0.6) | ||
Available-for-sale securities - Fair Market Value | $ 1,157.6 | $ 1,136.1 | ||
[1] | Included within available-for-sale securities are corporate investments with fair values of $4,121.1 million and funds held for clients with fair values of $20,524.9 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. | |||
[2] | Included within available-for-sale securities are corporate investments with fair values of $271.9 million and funds held for clients with fair values of $24,587.2 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
Corporate Investments and Fun_4
Corporate Investments and Funds Held For Clients (Available-For-Sale Securities That Have Been In An Unrealized Loss Position) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | $ 24,646 | [1] | $ 24,859.1 | [2] |
Unrealized losses less than 12 months | (8.4) | (7.2) | ||
Fair market value of securities in unrealized loss position less than 12 months | 1,838.5 | 1,107.7 | ||
Unrealized losses greater than 12 months | (11.3) | (25.9) | ||
Fair market value of securities in unrealized loss positions greater than 12 months | 3,787.1 | 7,192.5 | ||
Total gross unrealized losses | (19.7) | (33.1) | ||
Total fair market value | 5,625.6 | 8,300.2 | ||
Corporate bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | 10,947.3 | 10,867.9 | ||
Unrealized losses less than 12 months | (1) | (0.6) | ||
Fair market value of securities in unrealized loss position less than 12 months | 438.5 | 151.9 | ||
Unrealized losses greater than 12 months | (1.2) | (6.1) | ||
Fair market value of securities in unrealized loss positions greater than 12 months | 615.8 | 2,055.6 | ||
Total gross unrealized losses | (2.2) | (6.7) | ||
Total fair market value | 1,054.3 | 2,207.5 | ||
Asset-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | 4,368.1 | 4,690.7 | ||
Unrealized losses less than 12 months | (0.9) | (0.2) | ||
Fair market value of securities in unrealized loss position less than 12 months | 327.2 | 171.9 | ||
Unrealized losses greater than 12 months | (1.9) | (5.2) | ||
Fair market value of securities in unrealized loss positions greater than 12 months | 1,142.8 | 2,083.5 | ||
Total gross unrealized losses | (2.8) | (5.4) | ||
Total fair market value | 1,470 | 2,255.4 | ||
U.S. Treasury securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | 2,129.6 | 2,623.9 | ||
Unrealized losses less than 12 months | (0.1) | 0 | ||
Fair market value of securities in unrealized loss position less than 12 months | 61.3 | 0 | ||
Unrealized losses greater than 12 months | (2.1) | (5.8) | ||
Fair market value of securities in unrealized loss positions greater than 12 months | 945.3 | 1,671.4 | ||
Total gross unrealized losses | (2.2) | (5.8) | ||
Total fair market value | 1,006.6 | 1,671.4 | ||
U.S. government agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | 3,499.5 | 2,948.8 | ||
Unrealized losses less than 12 months | (0.2) | 0 | ||
Fair market value of securities in unrealized loss position less than 12 months | 90.8 | 1.8 | ||
Unrealized losses greater than 12 months | (5.7) | (8) | ||
Fair market value of securities in unrealized loss positions greater than 12 months | 979.7 | 1,159.4 | ||
Total gross unrealized losses | (5.9) | (8) | ||
Total fair market value | 1,070.5 | 1,161.2 | ||
Canadian government obligations and Canadian government agency obligations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | 1,155.8 | 1,165.1 | ||
Unrealized losses less than 12 months | (5.7) | (6) | ||
Fair market value of securities in unrealized loss position less than 12 months | 794.4 | 662.7 | ||
Unrealized losses greater than 12 months | 0 | 0 | ||
Fair market value of securities in unrealized loss positions greater than 12 months | 1.1 | 1.1 | ||
Total gross unrealized losses | (5.7) | (6) | ||
Total fair market value | 795.5 | 663.8 | ||
Canadian provincial bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | 809.4 | 814.2 | ||
Unrealized losses less than 12 months | (0.2) | (0.3) | ||
Fair market value of securities in unrealized loss position less than 12 months | 83.9 | 81.5 | ||
Unrealized losses greater than 12 months | (0.1) | (0.2) | ||
Fair market value of securities in unrealized loss positions greater than 12 months | 29.8 | 50.1 | ||
Total gross unrealized losses | (0.3) | (0.5) | ||
Total fair market value | 113.7 | 131.6 | ||
Municipal bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | 578.7 | 612.4 | ||
Unrealized losses less than 12 months | (0.1) | 0 | ||
Fair market value of securities in unrealized loss position less than 12 months | 20 | 1.5 | ||
Unrealized losses greater than 12 months | 0 | (0.1) | ||
Fair market value of securities in unrealized loss positions greater than 12 months | 5 | 23.3 | ||
Total gross unrealized losses | (0.1) | (0.1) | ||
Total fair market value | 25 | 24.8 | ||
Other securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | 1,157.6 | 1,136.1 | ||
Unrealized losses less than 12 months | (0.2) | (0.1) | ||
Fair market value of securities in unrealized loss position less than 12 months | 22.4 | 36.4 | ||
Unrealized losses greater than 12 months | (0.3) | (0.5) | ||
Fair market value of securities in unrealized loss positions greater than 12 months | 67.6 | 148.1 | ||
Total gross unrealized losses | (0.5) | (0.6) | ||
Total fair market value | 90 | 184.5 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities | $ 0 | $ 0 | ||
[1] | Included within available-for-sale securities are corporate investments with fair values of $4,121.1 million and funds held for clients with fair values of $20,524.9 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. | |||
[2] | Included within available-for-sale securities are corporate investments with fair values of $271.9 million and funds held for clients with fair values of $24,587.2 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
Corporate Investments and Fun_5
Corporate Investments and Funds Held For Clients (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Jun. 30, 2019 | |||
Debt Securities, Available-for-sale [Line Items] | ||||
Earliest Corporate bond debt maturity date | October 2019 | |||
Latest corporate debt maturity date | September 2029 | |||
Available-for-sale securities - Fair Market Value | $ 24,646 | [1] | $ 24,859.1 | [2] |
Earliest U.S. Treasury maturity date | November 2019 | |||
Latest U.S Treasury maturity date | January 2029 | |||
Client Fund obligation repayment period | 1 year | |||
Client funds obligations | $ 21,011.4 | 29,144.5 | ||
Client funds held in grantor trust | $ 18,898.2 | 26,648 | ||
Client funds investments with original maturities | ninety days or less | |||
Percentage of the available-for-sale securities were rated AAA Or AA | 79.00% | |||
Federal Home Loan Banks | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | $ 1,266.5 | |||
Federal Farm Credit Banks | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 661.2 | |||
U.S. government agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 108.5 | |||
Fixed Rate Credit Card | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 1,578.7 | |||
Asset-Backed Auto Loan Receivables | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 2,157.9 | |||
Asset-Backed Equipment Lease Receivable | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 481.8 | |||
Rate Reduction | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 149.7 | |||
Supranational Bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 188.1 | |||
Commercial Mortgage Backed Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 640.3 | |||
Sovereign Bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 89.5 | |||
Fair Value, Inputs, Level 1 [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities - Fair Market Value | 0 | 0 | ||
Current [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Restricted | 1,168.6 | 5,013.9 | ||
Non-current [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Restricted | $ 19,356.3 | $ 19,573.3 | ||
[1] | Included within available-for-sale securities are corporate investments with fair values of $4,121.1 million and funds held for clients with fair values of $20,524.9 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. | |||
[2] | Included within available-for-sale securities are corporate investments with fair values of $271.9 million and funds held for clients with fair values of $24,587.2 million . All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
Corporate Investments and Fun_6
Corporate Investments and Funds Held For Clients (Classification Of Corporate Investments On The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | ||
Corporate Investments And Funds Held For Clients [Abstract] | |||||
Cash and cash equivalents | $ 1,403.9 | $ 1,949.2 | $ 1,490.3 | ||
Short-term marketable securities | 3,545.1 | [1] | 10.5 | ||
Long-term marketable securities | [2] | 576 | 261.4 | ||
Total corporate investments | $ 5,525 | $ 2,221.1 | |||
[1] | (B) The Company reclassified $3,535.5 million | ||||
[2] | (a) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. |
Corporate Investments and Fun_7
Corporate Investments and Funds Held For Clients (Schedule Of Investment Of Funds Held For Clients) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | [1] | |
Corporate Investments And Funds Held For Clients [Abstract] | |||||
Restricted cash and cash equivalents held to satisfy client funds obligations | $ 868.3 | [1] | $ 4,847 | $ 2,918 | |
Total funds held for clients | $ 21,393.2 | $ 29,434.2 | |||
[1] | See Note 6 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets. |
Corporate Investments and Fun_8
Corporate Investments and Funds Held For Clients (Expected Maturities Of Available-For-Sale Securities) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Corporate Investments And Funds Held For Clients [Abstract] | |
One year or less | $ 4,713.6 |
One year to two years | 6,040.5 |
Two years to three years | 4,743.3 |
Three years to four years | 3,726.7 |
After four years | 5,421.9 |
Total available-for-sale securities | $ 24,646 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Jul. 01, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | |||
Lease, Cost | $ 44.2 | ||
Short-term Lease, Cost | 2.7 | ||
Operating Lease, Payments | 40.2 | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 87 | ||
Lessee, Operating Lease, Term of Contract | 10 years | ||
Operating Lease, Right-of-Use Asset | $ 504 | $ 573.3 | $ 0 |
Operating Lease, Liability, Current | 103.3 | ||
Operating Lease, Liability, Noncurrent | 355.4 | $ 522.6 | $ 0 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 97.1 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 80.8 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 68.2 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 47.6 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 116 | ||
Lessee, Operating Lease, Liability, Payments, Due | 496.7 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (38) | ||
Operating Lease, Liability | 458.7 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 6.7 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 2.40% | ||
Variable Lease, Cost | $ 1.3 | ||
Operating Lease, Cost | $ 48.2 |
Goodwill and Intangibles Asse_2
Goodwill and Intangibles Assets, net (Changes In Goodwill) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance at June 30, 2019 | $ 2,323 |
Additions and other adjustments | (3.3) |
Currency translation adjustments | (16.4) |
Balance at September 30, 2019 | 2,303.3 |
Employer Services | |
Goodwill [Roll Forward] | |
Balance at June 30, 2019 | 2,318.2 |
Additions and other adjustments | (3.3) |
Currency translation adjustments | (16.4) |
Balance at September 30, 2019 | 2,298.5 |
PEO Services | |
Goodwill [Roll Forward] | |
Balance at June 30, 2019 | 4.8 |
Additions and other adjustments | 0 |
Currency translation adjustments | 0 |
Balance at September 30, 2019 | $ 4.8 |
Goodwill and Intangibles Asse_3
Goodwill and Intangibles Assets, net (Components Of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Total - gross | $ 3,662.8 | $ 3,617.9 |
Total - accumulated amortization | (2,583.9) | (2,546.4) |
Intangible assets, net | $ 1,078.9 | 1,071.5 |
Software and software licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Total - gross | $ 2,556.5 | 2,519.3 |
Total - accumulated amortization | $ (1,788) | (1,762.3) |
Customer contracts and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Total - gross | $ 867.8 | 860.7 |
Total - accumulated amortization | $ (576.9) | (566.4) |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Total - gross | $ 238.5 | 237.9 |
Total - accumulated amortization | $ (219) | $ (217.7) |
Goodwill and Intangibles Asse_4
Goodwill and Intangibles Assets, net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Amortization of intangible assets | $ 69.4 | $ 53.4 |
Software and software licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Customer contracts and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Goodwill and Intangibles Asse_5
Goodwill and Intangibles Assets, net (Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Nine months ending June 30, 2020 | $ 209.7 |
Twelve months ending June 30, 2021 | 223 |
Twelve months ending June 30, 2022 | 176.6 |
Twelve months ending June 30, 2023 | 139.4 |
Twelve months ending June 30, 2024 | 108.8 |
Twelve months ending June 30, 2025 | $ 61.4 |
Short-term Financing (Details)
Short-term Financing (Details) - USD ($) | 3 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |||
Short-term Debt [Line Items] | |||||
Short-term debt | $ 0 | ||||
Commercial paper | 3,536,700,000 | [1] | $ 0 | ||
Obligations under reverse repurchase agreements | [2] | $ 428,600,000 | $ 262,000,000 | ||
Maturities of short-term funding agreements | overnight to up to five business days | ||||
364-day credit agreement | |||||
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity under credit facilities | $ 3,800,000,000 | ||||
Term of credit agreement | 364 days | ||||
Expiration date of credit facilities | Jun. 30, 2020 | ||||
Extension option term | 1 year | ||||
Credit Facility Expiring In June Two Thousand Twenty Four [Member] | |||||
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity under credit facilities | $ 2,750,000,000 | ||||
Term of credit agreement | 5 years | ||||
Expiration date of credit facilities | Jun. 30, 2024 | ||||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | ||||
Credit Facility Expiring In June Two Thousand Twenty Three [Member] | |||||
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity under credit facilities | $ 3,750,000,000 | ||||
Term of credit agreement | 5 years | ||||
Expiration date of credit facilities | Jun. 30, 2023 | ||||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | ||||
Commercial paper program | |||||
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity under credit facilities | $ 10,300,000,000 | ||||
Maturities of commercial paper range | overnight to up to 364 days | ||||
Short-term debt, average outstanding amount | $ 4,000,000,000 | $ 3,700,000,000 | |||
Debt instrument, interest rate during period | 2.30% | 2.00% | |||
Short Term Commercial Paper Program | |||||
Short-term Debt [Line Items] | |||||
Commercial paper weighted average maturity | 2 days | 2 days | |||
Reverse repurchase agreements | |||||
Short-term Debt [Line Items] | |||||
Short-term debt, average outstanding amount | $ 426,600,000 | $ 495,100,000 | |||
Debt instrument, interest rate during period | 2.00% | 1.70% | |||
[1] | (B) The Company reclassified $3,535.5 million | ||||
[2] | (A) As of September 30, 2019, $428.0 million of long-term marketable securities and $0.6 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements. As of June 30, 2019, $261.4 million of long-term marketable securities and $0.6 million |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 2,000,000,000 | |
Notes payable | 2,009,200,000 | $ 2,010,900,000 |
Less: current portion | (1,001,300,000) | (2,500,000) |
Less: unamortized discount and debt issuance costs | (4,500,000) | (6,200,000) |
Total long-term debt | 1,003,400,000 | 2,002,200,000 |
Fair value of notes issued | $ 2,074,100,000 | |
Fixed-rate 2.25% notes due September 15, 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 5 years | |
Debt instrument effective rate (percent) | 2.37% | |
Notes payable | $ 1,000,000,000 | 1,000,000,000 |
Interest Rate | 2.25% | |
Due Date | Sep. 15, 2020 | |
Fixed-rate 3.375% notes due September 15, 2025 | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 10 years | |
Debt instrument effective rate (percent) | 3.47% | |
Notes payable | $ 1,000,000,000 | 1,000,000,000 |
Interest Rate | 3.375% | |
Due Date | Sep. 15, 2025 | |
Other | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 9,200,000 | $ 10,900,000 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | $ 5.1 | $ (15.3) |
Stock Repurchased During Period in Treasury, Shares | 1.9 | 1.6 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
Share Based Compensation Arrangement By Share Based Payment Award Options Granted Contractual Term 1 | 10 years | |
Time Based Restriced Stock granted during or after Fiscal 2019 [Domain] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Time Based Restricted Stock granted during Fiscal 2013 [Domain] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |
Performance Based Restricted Stock and Units [Domain] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Minimum percentage that will ultimately vest under performance-based restricted stock awards based on performance target | 0.00% | |
Maximum percentage that will ultimately vest under performance-based restricted stock awards based on performance target | 150.00% | |
Employee Stock [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Percentage of Market Value paid for Company Stock | 95.00% | |
Nonvested Stock Options [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 32.9 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 6 months | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 83.9 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | |
Nonvested Restricted Stock [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 142.7 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 4 months 24 days | |
Minimum | Performance Based Restricted Stock and Units [Domain] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Performance Period | 1 year | |
Maximum | Performance Based Restricted Stock and Units [Domain] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 38 months | |
Share Based Compensation Arrangement By Share Based Payment Award Performance Period | 3 years |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components Of Stock-Based Compensation Expense) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.40% | 2.70% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,181 | 3,608 | |
Total pre-tax stock-based compensation expense | $ 37.1 | $ 38.4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 120 | $ 103 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 1,015 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 170 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 396 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 87 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 46 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 123 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.90% | 1.90% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 19.30% | 20.90% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 4 months 24 days | 5 years 4 months 24 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 24.40 | $ 26.60 | |
Operating expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pre-tax stock-based compensation expense | $ 4 | $ 5.4 | |
Selling, general and administrative expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pre-tax stock-based compensation expense | 28.3 | 28 | |
System development and programming costs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pre-tax stock-based compensation expense | $ 4.8 | $ 5 | |
Performance Based Restricted Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 188 | 250 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 112 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 171 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 3 | ||
Performance Based Restricted Stock Unit [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 861 | 867 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 369 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 361 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 14 | ||
Time Based Restricted Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 935 | 1,272 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 504 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 806 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 35 | ||
Time-Based Restricted Stock Units [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 186 | 290 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 97 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 193 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 8 |
Employee Benefit Plans (Compo_2
Employee Benefit Plans (Components Of Net Pension Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost – benefits earned during the period | $ 14.9 | $ 14.9 |
Interest cost on projected benefits | 15.4 | 19.7 |
Expected return on plan assets | (29.5) | (32.9) |
Net amortization and deferral | 1.6 | 0.1 |
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | (5.1) | 15.3 |
Net pension expense | $ (2.7) | $ 17.1 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 21.20% | 21.90% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 5,399.9 | $ 4,735.9 | $ 4,735.9 |
Net earnings | 582.4 | 505.4 | 2,292.8 |
Other comprehensive income | 23.4 | (60.3) | |
Stock-based compensation expense | 36 | 34.6 | |
Issuances relating to stock compensation plans | (65) | (55.9) | |
Treasury stock acquired | (392.6) | (281.8) | |
Ending balance | $ 5,360.7 | $ 4,678.8 | 5,399.9 |
Treasury stock acquired (shares) | 1.9 | 1.6 | |
Dividends declared (in US$ per share) | $ 0.79 | $ 0.69 | |
Dividends declared | $ (346.6) | $ (310.9) | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 6.8 | ||
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 63.9 | 63.9 | 63.9 |
Net earnings | 0 | 0 | |
Other comprehensive income | 0 | 0 | |
Stock-based compensation expense | 0 | 0 | |
Issuances relating to stock compensation plans | 0 | 0 | |
Treasury stock acquired | 0 | 0 | |
Ending balance | 63.9 | 63.9 | 63.9 |
Dividends declared | 0 | 0 | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||
Capital in Excess of Par Value | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 1,183.2 | 1,014.8 | 1,014.8 |
Net earnings | 0 | 0 | |
Other comprehensive income | 0 | 0 | |
Stock-based compensation expense | 36 | 34.6 | |
Issuances relating to stock compensation plans | (5.5) | (14.3) | |
Treasury stock acquired | 0 | 0 | |
Ending balance | 1,213.7 | 1,035.1 | 1,183.2 |
Dividends declared | 0 | 0 | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 17,500.6 | 16,546.6 | 16,546.6 |
Net earnings | 582.4 | 505.4 | |
Other comprehensive income | 0 | 0 | |
Stock-based compensation expense | 0 | 0 | |
Issuances relating to stock compensation plans | 0 | 0 | |
Treasury stock acquired | 0 | 0 | |
Ending balance | 17,729.6 | 16,741.1 | 17,500.6 |
Dividends declared | (346.6) | (310.9) | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 6.8 | ||
Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (13,090.5) | (12,209.6) | (12,209.6) |
Net earnings | 0 | 0 | |
Other comprehensive income | 0 | 0 | |
Stock-based compensation expense | 0 | 0 | |
Issuances relating to stock compensation plans | (70.5) | (70.2) | |
Treasury stock acquired | (392.6) | (281.8) | |
Ending balance | (13,412.6) | (12,421.2) | (13,090.5) |
Dividends declared | 0 | 0 | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||
AOCI | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (257.3) | (679.8) | (679.8) |
Net earnings | 0 | 0 | |
Other comprehensive income | 23.4 | (60.3) | |
Stock-based compensation expense | 0 | 0 | |
Issuances relating to stock compensation plans | 0 | 0 | |
Treasury stock acquired | 0 | 0 | |
Ending balance | (233.9) | (740.1) | $ (257.3) |
Dividends declared | 0 | $ 0 | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 6.8 | ||
AOCI Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income, beginning balance | (257.3) | $ (679.8) | |
Other comprehensive (loss)/income before reclassification adjustments | 47.2 | (73.3) | |
Tax effect | (20.8) | 12.3 | |
Reclassification adjustments to net earnings | (4) | 1.1 | |
Tax effect | 1 | (0.4) | |
Accumulated other comprehensive income, ending balance | (233.9) | (740.1) | |
Common Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||
Currency Translation Adjustment | |||
AOCI Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income, beginning balance | (269.2) | (227) | |
Other comprehensive (loss)/income before reclassification adjustments | (48.9) | (22.9) | |
Tax effect | 0 | 0 | |
Reclassification adjustments to net earnings | 0 | 0 | |
Tax effect | 0 | 0 | |
Accumulated other comprehensive income, ending balance | (318.1) | (249.9) | |
Net Gains/Losses on Available-for-sale Securities | |||
AOCI Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income, beginning balance | 224.6 | (274) | |
Other comprehensive (loss)/income before reclassification adjustments | 96.1 | (50.4) | |
Tax effect | (20.8) | 12.3 | |
Reclassification adjustments to net earnings | [1] | (2.3) | 0.9 |
Tax effect | 0.5 | (0.2) | |
Accumulated other comprehensive income, ending balance | 298.1 | (311.4) | |
Pension Liability | |||
AOCI Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income, beginning balance | (212.7) | (178.8) | |
Other comprehensive (loss)/income before reclassification adjustments | 0 | 0 | |
Tax effect | 0 | 0 | |
Reclassification adjustments to net earnings | [2] | (1.7) | 0.2 |
Tax effect | 0.5 | (0.2) | |
Accumulated other comprehensive income, ending balance | (213.9) | $ (178.8) | |
Additional Paid-in Capital [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||
Retained Earnings [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 6.8 | ||
Treasury Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||
AOCI Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0 | ||
[1] | (A) Reclassification adjustments out of AOCI are included within Other income, net, on the Statements of Consolidated Earnings. | ||
[2] | (B) Reclassification adjustments out of AOCI are included in net pension expense (see Note 11 ). |
Interim Financial Data by Seg_3
Interim Financial Data by Segment (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Interim Financial Data by Seg_4
Interim Financial Data by Segment (Financial Data By Strategic Business Unit Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ (3,495.7) | $ (3,310.3) | $ (14,110.2) |
Earnings before Income Taxes | 739.1 | 646.8 | $ 3,005.6 |
Employer Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | (2,441.4) | (2,338.2) | |
Earnings before Income Taxes | 681 | 639.8 | |
PEO Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | (1,056.9) | (974.9) | |
Earnings before Income Taxes | 148.4 | 143.7 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | (2.6) | (2.8) | |
Earnings before Income Taxes | $ (90.3) | $ (136.7) |