Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Jul. 31, 2020 | Dec. 31, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Entity Public Float | $ 73,532,680,590 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2020 | ||
Entity Registrant Name | AUTOMATIC DATA PROCESSING, INC. | ||
Entity Central Index Key | 0000008670 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 429,965,405 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-5397 | ||
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, | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07068 | ||
City Area Code | 973 | ||
Local Phone Number | 974-5000 | ||
Title of 12(b) Security | Common Stock, $0.10 Par Value(voting) | ||
Trading Symbol | ADP | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Statements Of Consolidated Earn
Statements Of Consolidated Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
REVENUES: | ||||
Revenues, Net | $ 9,538.1 | $ 9,375.8 | $ 8,983.4 | |
Interest on funds held for clients | 545.2 | 561.9 | 466.5 | |
PEO revenues | [1] | 4,506.5 | 4,172.5 | 3,824.3 |
TOTAL REVENUES | 14,589.8 | 14,110.2 | 13,274.2 | |
EXPENSES: | ||||
Operating expenses | 7,404.1 | 7,080.9 | 6,847.5 | |
Systems development and programming costs | 674.1 | 636.3 | 635.4 | |
Cost, Depreciation and Amortization | 366.9 | 304.4 | 274.5 | |
Cost of Goods and Services Sold | 8,445.1 | 8,021.6 | 7,757.4 | |
Selling, general, and administrative expenses | 3,003 | 3,064.2 | 2,959.4 | |
Interest expense | 107.1 | 129.9 | 102.7 | |
TOTAL EXPENSES | 11,555.2 | 11,215.7 | 10,819.5 | |
Other (income)/expense, net | (148) | (111.1) | 172.1 | |
EARNINGS BEFORE INCOME TAXES | 3,182.6 | 3,005.6 | 2,282.6 | |
Provision for income taxes | 716.1 | 712.8 | 397.7 | |
NET EARNINGS | $ 2,466.5 | $ 2,292.8 | $ 1,884.9 | |
Basic earnings per share (in dollars per share) | $ 5.73 | $ 5.27 | $ 4.28 | |
BASIC EARNINGS PER SHARE (in dollars per share) | 5.73 | 5.27 | 4.28 | |
Diluted earnings per share (in dollars per share) | 5.70 | 5.24 | 4.25 | |
DILUTED EARNINGS PER SHARE (in dollars per share) | $ 5.70 | $ 5.24 | $ 4.25 | |
Basic weighted average shares outstanding (in shares) | 430.8 | 435 | 440.6 | |
Diluted weighted average shares outstanding (in shares) | 432.7 | 437.6 | 443.3 | |
[1] | For the years ended June 30, 2020 (“fiscal 2020”), June 30, 2019 (“fiscal 2019”), and June 30, 2018 (“fiscal 2018”), Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes, of $45,826.1 million , $42,688.8 million, and $39,140.9 million, respectively. |
Statements Of Consolidated Ea_2
Statements Of Consolidated Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | |||
Direct pass-through costs, Professional Employer Organization revenues | $ 45,826.1 | $ 42,688.8 | $ 39,140.9 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
NET EARNINGS | $ 2,466.5 | $ 2,292.8 | $ 1,884.9 |
Other comprensive income: | |||
Currency translation adjustments | (53) | (42.2) | 7.8 |
Unrealized net gains/(losses) on available-for-sale securities | 602.2 | 642.4 | (460.7) |
Tax effect | (136.4) | (144.4) | 123.4 |
Reclassification of net losses/(gains) on available-for-sale securities to net earnings | (12.9) | 0.9 | 2.7 |
Tax effect | 2.9 | (0.3) | (0.6) |
Unrealized loss on cash flow hedging activities | (40.3) | 0 | 0 |
Tax effect | 10 | 0 | 0 |
Pension net (losses)/gains arising during the year | (160.8) | (84.7) | 87 |
Tax effect | 39.5 | 20 | (18.7) |
Reclassification of pension liability adjustment to net earnings | (11.8) | 40.3 | 9.3 |
Tax effect | 3.1 | (9.5) | (4.5) |
Other comprehensive income/(loss), net of tax | 242.5 | 422.5 | (254.3) |
Comprehensive income | $ 2,709 | $ 2,715.3 | $ 1,630.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | ||
Statement of Financial Position [Abstract] | ||||
Long-term Marketable Securities Under Reverse Repurchase Agreements | $ 13.6 | $ 261.4 | ||
Current assets: | ||||
Cash and cash equivalents | 1,908.5 | 1,949.2 | ||
Short-term marketable securities | 0 | 10.5 | ||
Accounts receivable, net of allowance for doubtful accounts of $92.5 and $54.9, respectively | 2,441.3 | 2,439.3 | ||
Other current assets | 506.2 | 509.1 | ||
Total current assets before funds held for clients | 4,856 | 4,908.1 | ||
Funds held for clients | 26,708.1 | 29,434.2 | ||
Total current assets | 31,564.1 | 34,342.3 | ||
Long-term receivables, net of allowance for doubtful accounts of $0.5 and $0.4, respectively | 18.6 | 23.8 | ||
Property, plant and equipment, net | 703.9 | 764.2 | ||
Operating lease right-of-use asset | 493.7 | 0 | ||
Deferred contract costs | [1] | 2,401.6 | 2,428.5 | |
Other assets | 458.4 | 934.4 | ||
Goodwill | 2,309.4 | 2,323 | ||
Intangible assets, net | 1,215.8 | 1,071.5 | ||
Total assets | 39,165.5 | 41,887.7 | ||
Liabilities | ||||
Accounts payable | 102 | 125.5 | ||
Accrued expenses and other current liabilities | 1,980.7 | 1,759 | ||
Accrued payroll and payroll-related expenses | 557 | 721.1 | ||
Dividends payable | 387.3 | 340.1 | ||
Short-term deferred revenues | 212.5 | 220.7 | ||
Obligations under reverse repurchase agreements (A) | 13.6 | [2] | 262 | |
Short-term debt | 1,001.8 | 0 | ||
Income taxes payable | 40.1 | 54.8 | ||
Total current liabilities before client funds obligations | 4,295 | 3,483.2 | ||
Client funds obligations | 25,831.6 | 29,144.5 | ||
Total current liabilities | 30,126.6 | 32,627.7 | ||
Long-term debt | 1,002.8 | 2,002.2 | ||
Operating lease liabilities | 0 | |||
Other liabilities | 837 | 798.7 | ||
Deferred income taxes | 731.9 | 659.9 | ||
Long-term deferred revenues | 370.6 | 399.3 | ||
Total liabilities | 33,413.3 | 36,487.8 | ||
Stockholders' equity: | ||||
Preferred stock, $1.00 par value: Authorized, 0.3 shares; issued, none | 0 | 0 | ||
Common Stock, Value, Issued | 63.9 | 63.9 | ||
Capital in excess of par value | 1,333.8 | 1,183.2 | ||
Retained earnings | 18,436.3 | 17,500.6 | ||
Treasury Stock, Value | 14,067 | 13,090.5 | ||
Accumulated other comprehensive loss | (14.8) | (257.3) | ||
Total stockholders’ equity | 5,752.2 | 5,399.9 | ||
Total liabilities and stockholders’ equity | $ 39,165.5 | 41,887.7 | ||
Cash And Cash Equivalents Under Reverse Repurchase Agreements | $ 0.6 | |||
[1] | (1) The amount of total deferred costs amortized during the twelve months ended June 30, 2020, June 30, 2019, and June 30, 2018 were $915.0 million , $874.0 million, and $837.4 million, respectively. | |||
[2] | (A) As of June 30, 2020, $13.6 million of long-term marketable securities 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 $0.6 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements (see Note 8). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, current | $ 92.5 | $ 54.9 |
Preferred stock, par value (in dollars per share) | $ 1 | |
Preferred stock, shares authorized | 300,000 | |
Preferred stock, shares issued | 0 | |
Common stock, par value (in dollars per share) | $ 0.10 | |
Common stock, shares authorized | 1,000,000,000 | |
Common stock, shares issued | 638,700,000 | |
Common stock, shares outstanding | 429,900,000 | 434,200,000 |
Treasury stock, shares | 208,900,000 | 204,500,000 |
Allowance for doubtful accounts, long-term | $ 0.5 | $ 0.4 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (383.2) | ||||||
Common stock, shares issued, beginning of period at Jun. 30, 2017 | 638.7 | ||||||
Stockholders' Equity, balance, beginning of period at Jun. 30, 2017 | $ 63.9 | $ 867.8 | $ 15,739.4 | $ (11,303.7) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | $ 1,884.9 | 0 | 0 | 0 | |||
Other comprehensive income (loss) | 0 | 0 | 0 | (254.3) | |||
Stock-based compensation expense | 145.3 | 0 | 0 | 0 | |||
Issuances relating to stock compensation plans | 1.7 | 0 | 144.5 | 0 | |||
Treasury stock | 0 | 0 | (1,050.4) | 0 | |||
Dividends, Stock | 0 | (1,120) | 0 | 0 | |||
Common stock, shares issued, end of period at Jun. 30, 2018 | 638.7 | ||||||
Stockholders' Equity, balance, end of period at Jun. 30, 2018 | $ 63.9 | 1,014.8 | 16,546.6 | (12,209.6) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stockholders' Equity, Other | 0 | (42.3) | [1] | 0 | 42.3 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (679.8) | ||||||
Net earnings | 2,292.8 | 0 | 0 | 0 | |||
Other comprehensive income (loss) | 0 | 0 | 0 | 422.5 | |||
Stock-based compensation expense | 144.2 | 0 | 0 | 0 | |||
Issuances relating to stock compensation plans | 24.2 | 0 | 124.1 | 0 | |||
Treasury stock | 0 | 0 | (1,005) | 0 | |||
Dividends, Stock | 0 | (1,338.8) | 0 | 0 | |||
Common stock, shares issued, end of period at Jun. 30, 2019 | 638.7 | ||||||
Stockholders' Equity, balance, end of period at Jun. 30, 2019 | $ 63.9 | 1,183.2 | 17,500.6 | (13,090.5) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (257.3) | (257.3) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | $ 2,466.5 | 0 | 2,466.5 | 0 | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 | 242.5 | |||
Stock-based compensation expense | 117.8 | 0 | 0 | 0 | |||
Issuances relating to stock compensation plans | 32.8 | 0 | 112.9 | 0 | |||
Treasury stock | 0 | 0 | (1,089.4) | 0 | |||
Dividends, Stock | 0 | (1,523.9) | 0 | 0 | |||
Common stock, shares issued, end of period at Jun. 30, 2020 | 638.7 | 638.7 | |||||
Stockholders' Equity, balance, end of period at Jun. 30, 2020 | $ 63.9 | 1,333.8 | 18,436.3 | (14,067) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0 | $ 6.9 | $ 0 | 0 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (14.8) | $ (14.8) | |||||
[1] | During fiscal 2018, the Company adopted ASU 2018-02 and reclassified stranded tax effects attributable to the Act from AOCI to retained earnings. The fiscal 2018 Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive (loss)/income into retained earnings. |
Statements of Stockholders' E_2
Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Treasury Stock, Shares, Acquired | 6,200,000 | 6,500,000 | 8.5 |
Common Stock, Dividends, Per Share, Declared | $ 3.52 | $ 3.06 | $ 2.52 |
Statements Of Consolidated Cash
Statements Of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities: | |||
NET EARNINGS | $ 2,466.5 | $ 2,292.8 | $ 1,884.9 |
Adjustments to reconcile net earnings to cash flows provided by operating activities: | |||
Depreciation and amortization | 480 | 409 | 377.6 |
Capitalized Contract Cost, Amortization | 915 | 874 | 837.4 |
Deferred income taxes | 26 | 9.3 | (152) |
Stock-based compensation expense | 130.8 | 167.3 | 175.4 |
Net pension (income)/expense | (11.6) | 55.4 | 330.4 |
Net amortization of premiums and accretion of discounts on available-for-sale securities | 50.2 | 50.1 | 71.5 |
Asset Impairment Charges | 29.9 | 12.1 | 0 |
Gain on sale of assets | (6) | (19.8) | (0.7) |
Other | 65.4 | 43.9 | 32.2 |
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses: | |||
Increase in accounts receivable | (113.8) | (473.9) | (291.8) |
Increase in other assets | (910.4) | (987.2) | (858.3) |
Decrease in accounts payable | (18.3) | (10.7) | (1.9) |
(Decrease)/Increase in accrued expenses and other liabilities | (77.5) | 266 | 110.5 |
Net cash flows provided by operating activities | 3,026.2 | 2,688.3 | 2,515.2 |
Cash Flows from Investing Activities: | |||
Purchases of corporate and client funds marketable securities | (3,905.1) | (4,422.6) | (4,876.8) |
Proceeds from the sales and maturities of corporate and client funds marketable securities | 7,648.4 | 2,909 | 3,455 |
Capital expenditures | (172.7) | (162) | (206.1) |
Additions to intangibles | (443.7) | (404.5) | (264.7) |
Acquisitions of businesses, net of cash acquired | 0 | (125.5) | (612.4) |
Proceeds from the sale of property, plant, and equipment and other assets | 29.4 | 7.9 | 0.4 |
Net cash flows provided by/(used in) investing activities | 3,156.3 | (2,197.7) | (2,504.6) |
Cash Flows from Financing Activities: | |||
Net (decrease)/increase in client funds obligations | (3,213.2) | 1,696 | 340.4 |
Payments of debt | (2.2) | (2.1) | (7.3) |
Repurchases of common stock | (1,006.3) | (937.7) | (989.3) |
Net proceeds from stock purchase plan and stock-based compensation plans | 50 | 72.9 | 69.3 |
Dividends paid | (1,470.5) | (1,293) | (1,063.7) |
Other | 0 | (5.8) | (5.3) |
Net cash flows used in financing activities | (5,890.6) | (207.7) | (1,655.9) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (34.5) | (28.8) | 5.8 |
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | 257.4 | 254.1 | (1,639.5) |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year | 6,796.2 | 6,542.1 | 8,181.6 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | 7,053.6 | 6,796.2 | 6,542.1 |
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 6,796.2 | 6,796.2 | 6,542.1 |
Net proceeds from reverse repurchase agreements | (248.4) | 262 | 0 |
Cash paid for income taxes, net of income tax refunds | 677.1 | 633.8 | 529.7 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 104.8 | $ 127.5 | $ 100.5 |
Statement of Financial Position
Statement of Financial Position, Classified | 12 Months Ended |
Jun. 30, 2020 | |
Statement of Financial Position [Abstract] | |
Documents Incorporated by Reference | Portions of the Registrant's Proxy Statement for its 2020 Annual Meeting of Stockholders. Part III |
Summary of Significant Accounti
Summary of Significant Accounting Policies Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of Preparation. 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”). Intercompany balances and transactions have been eliminated in consolidation. 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 4, “Corporate Investments and Funds Held for Clients.” 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 fiscal 2020, 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 fiscal 2019 and fiscal 2018 have 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: Year 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 Year Ended June 30, 2018 As reported Revision As revised PEO revenues $ 3,877.8 (53.5) $ 3,824.3 TOTAL REVENUES 13,327.7 (53.5) 13,274.2 Operating expenses 6,901.0 (53.5) 6,847.5 Total Expenses 10,873.0 (53.5) 10,819.5 EARNINGS BEFORE INCOME TAXES 2,282.6 — 2,282.6 Provision for income taxes 397.7 — 397.7 NET EARNINGS $ 1,884.9 — $ 1,884.9 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 Financial Data by Segment and Geographic Area disclosure. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenues, expenses, and other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's presentation. B. Description of Business. The Company is a provider of cloud-based Human Capital Management (“HCM”) solutions. The Company classifies its operations into the following two reportable segments: Employer Services and Professional Employer Organization (“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. C. Revenue Recognition. Revenues are primarily attributable to fees for providing services ( e.g., Employer Services' payroll processing fees), investment income on payroll funds, payroll tax filing funds, other Employer Services' client-related funds, and fees charged to implement clients on the Company's solutions. The Company enters into agreements for a fixed fee per transaction ( e.g., number of payees or number of payrolls processed). The Company enters into service agreements with clients that include anywhere from one service to a full suite of services. The Company’s agreements vary in duration having a legally enforceable term of 30 days to 5 years. The performance obligations in the agreements are generally combined into one performance obligation, as they are considered a series of distinct services, and are satisfied over time because the client simultaneously receives and consumes the benefits provided as the Company performs the services. The Company uses the output method based on a fixed fee per employee serviced to recognize revenue, as the value to the client of the goods or services transferred to date (e.g. number of payees or number of payrolls processed) appropriately depicts our performance towards complete satisfaction of the performance obligation. The fees are typically billed in the period in which services are performed. PEO, a component of the HR Outsourcing (“HRO”) strategic pillar, provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers’ compensation insurance, and administering state unemployment insurance, among other human resources functions. 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 zero-margin 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 does retain risk and 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. We recognize client fund interest income 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. Set up fees received from certain clients to implement the Company's solutions are considered a material right. Therefore, the Company defers revenue associated with these set up fees and records them over the period in which such clients are expected to benefit from the material right, which is approximately five to seven years. Collection of consideration the Company expects to receive typically occurs within 30 to 60 days of billing. We assess the collectability of revenues based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history and their intention to pay the consideration. D. Deferred Costs. Incremental Costs of Obtaining a Contract Incremental costs of obtaining a contract (e.g., sales commissions) that are expected to be recovered are capitalized and amortized on a straight-line basis over a period of three to eight years, depending on the Company's business unit. Incremental costs of obtaining a contract include only those costs the Company incurs to obtain a contract that it would not have incurred if the contract had not been obtained. These costs are included in selling, general and administrative expenses. Costs to fulfill a Contract The Company capitalizes costs incurred to fulfill its contracts that i) relate directly to the contract ii) are expected to generate resources that will be used to satisfy the Company's performance obligations under the contract and iii) are expected to be recovered through revenue generated under the contract. Costs incurred to implement clients on our solutions (e.g. direct labor) are capitalized and amortized on a straight-line basis over the expected client relationship period if the Company expects to recover those costs. The expected client relationship period ranges from three to eight years. These costs are included in operating expenses. The Company has estimated the amortization periods for the deferred costs by using its historical retention by business units to estimate the pattern during which the service transfers. E. Cash and Cash Equivalents. Highly liquid investment securities with a maturity of ninety days or less at the time of purchase are considered cash equivalents. The fair value of our cash and cash equivalents approximates carrying value. F. Corporate Investments and Funds Held for Clients. All of the Company's marketable securities are considered to be “available-for-sale” and, accordingly, are carried on the Consolidated Balance Sheets at fair value. Unrealized gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) on the Consolidated Balance Sheets until realized. Realized gains and losses from the sale of available-for-sale securities are determined on an aggregate approach basis and are included in other (income)/expense, net on the Statements of Consolidated Earnings. If the fair value of an available-for-sale debt security is below its amortized cost, the Company assesses whether it intends to sell the security or if it is more likely than not the Company will be required to sell the security before recovery. If either of those two conditions is met, the Company would recognize a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security or it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in accumulated other comprehensive income (loss). Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Dividend and interest income are recognized when earned. G. Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date and is based upon the Company’s principal, or most advantageous, market for a specific asset or liability. U.S. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1 Fair value is determined based upon quoted prices for identical assets or liabilities that are traded in active markets. Level 2 Fair value is determined based upon inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: · quoted prices for similar assets or liabilities in active markets; · quoted prices for identical or similar assets or liabilities in markets that are not active; · inputs other than quoted prices that are observable for the asset or liability; or · inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Fair value is determined based upon inputs that are unobservable and reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based upon the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company's corporate investments and funds held for clients (see Note 4) are measured at fair value on a recurring basis as described below. Over 99% of the Company's available-for-sale securities included in Level 2 are valued based on prices obtained from an independent pricing service. To determine the fair value of the Company's Level 2 investments, the independent pricing service uses pricing models for each asset class that are consistent with what other market participants would use, including the market approach. Inputs and assumptions to the pricing model of the independent pricing service are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market-related data. Since many fixed income securities do not trade on a daily basis, the independent pricing service applies available information, as applicable, through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. For the purposes of valuing the Company’s asset-backed securities and mortgage-backed securities that are included within Other securities in Note 4, the independent pricing service includes additional inputs to the model such as monthly payment information, new issue data, and collateral performance. For the purposes of valuing the Company’s Municipal bonds, the independent pricing service includes Municipal Market Data benchmark yield curves as additional inputs to the model. While the Company is not provided access to the proprietary models of the third party pricing service, each quarterly reporting period, the Company reviews the inputs utilized by the independent pricing service and compares the valuations received from the independent pricing service to valuations from at least one other observable source for reasonableness. The Company has not adjusted the prices obtained from the independent pricing service and the Company believes the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). The Company has no available-for-sale securities included in Level 1 and Level 3. In fiscal 2016, the Company issued fixed-rate notes with 5-year and 10-year maturities for an aggregate principal amount of $2.0 billion (collectively the "Notes"). The fair value of the Notes are estimated in Note 9 utilizing a variety of inputs obtained from an independent pricing service, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. The Company reviews the values generated by the independent pricing service for reasonableness by comparing the valuations received from the independent pricing service to valuations from at least one other observable source. The Company has not adjusted the prices obtained from the independent pricing service. In fiscal 2020, the Company entered into a series of treasury rate lock transactions to hedge its exposure to changes in interest rates. The treasury rate lock derivatives are classified as Level 2 in the fair value hierarchy as their value is determined using observable inputs such as forward treasury rates. See Note 9 for additional details. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy. In certain instances, the inputs used to measure fair value may meet the definition of more than one level of the fair value hierarchy. The significant input with the lowest level priority is used to determine the applicable level in the fair value hierarchy. H. Property, Plant and Equipment. Property, plant and equipment is stated at cost less accumulated depreciation on the Consolidated Balance Sheets. Depreciation is recognized over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. The estimated useful lives of assets are primarily as follows: Data processing equipment 5 to 10 years Buildings 20 to 40 years Furniture and fixtures 4 to 7 years . I. Leases. 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. Lease ROU assets are amortized over the life of the lease and tested for impairment in the same manner as long-lived assets as described below. J. Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is tested annually for impairment or more frequently when an event or circumstance indicates that goodwill might be impaired. The Company’s annual goodwill impairment assessment as of June 30, 2020 was performed for all reporting units using a quantitative approach by comparing the fair value of each reporting unit to its carrying value. We estimated the fair value of each reporting unit using, as appropriate, the income approach, which is derived using the present value of future cash flows discounted at a risk-adjusted weighted-average cost of capital, and the market approach, which is based upon using market multiples of companies in similar lines of business. Significant assumptions used in determining the fair value of our reporting units include projected revenue growth rates, profitability projections, working capital assumptions, the weighted average cost of capital, the determination of appropriate market comparison companies, and terminal growth rates. Several of these assumptions including projected revenue growth rates and profitability projections are dependent on our ability to upgrade, enhance, and expand our technology and services to meet client needs and preferences. As such, the determination of fair value requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margins. Based upon the quantitative assessment, the Company has concluded that goodwill is not impaired. K. Impairment of Long-Lived Assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. L. Foreign Currency. The net assets of the Company's foreign subsidiaries are translated into U.S. dollars based on exchange rates in effect for each period, and revenues and expenses are translated at average exchange rates in the periods. Gains or losses from balance sheet translation are included in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. Currency transaction gains or losses, which are included in the results of operations, are not significant for all periods presented. M. Foreign Currency Risk Management Programs and Derivative Financial Instruments. The Company transacts business in various foreign jurisdictions and is therefore exposed to market risk from changes in foreign currency exchange rates that could impact its consolidated results of operations, financial position, or cash flows. The Company manages its exposure to these market risks through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The Company does not use derivative financial instruments for trading purposes. In fiscal 2020, the Company entered into a series of treasury rate lock transactions to hedge its exposure to changes in interest rates. See Note 9 for additional details. N. Earnings per Share (“EPS”). The Company computes EPS in accordance with ASC 260. The calculations of basic and diluted EPS are as follows: Years ended June 30, Basic Effect of Employee Stock Option Shares Effect of Diluted 2020 Net earnings $ 2,466.5 $ 2,466.5 Weighted average shares (in millions) 430.8 0.9 1.0 432.7 EPS $ 5.73 $ 5.70 2019 Net earnings $ 2,292.8 $ 2,292.8 Weighted average shares (in millions) 435.0 1.0 1.6 437.6 EPS $ 5.27 $ 5.24 2018 Net earnings $ 1,884.9 $ 1,884.9 Weighted average shares (in millions) 440.6 1.1 1.6 443.3 EPS $ 4.28 $ 4.25 Options to purchase 1.2 million, 0.7 million, and 0.9 million shares of common stock for fiscal 2020, 2019, and 2018, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. O. Stock-Based Compensation. The Company recognizes stock-based compensation expense in net earnings based on the fair value of the award on the date of the grant, and in the case of international units settled in cash, adjusts this fair value based on changes in the Company's stock price during the vesting peri od. Restricted stock units and restricted stock awards are valued based on the closing price of the Company's common stock on the date of the grant and, in the case of performance based restricted stock units and restricted stock, are adjusted for changes to probabilities of achieving performance targets. International restricted stock units are settled in cash and are marked-to-market based on changes in the Company's stock price. S ee Note 10 for additional information on the Company's stock-based compensation programs. P. Internal Use Software. Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized generally over a three to five-year period on a straight-line basis. Software developed as part of the Company's next-generation platforms are depreciated over ten years. The Company begins to capitalize costs incurred for computer software developed for internal use when the preliminary development efforts are successfully completed, management has authorized and committed to funding the project, and it is probable that the project will be completed and the software will be used as intended. Capitalization ceases when a computer software project is substantially complete and ready for its intended use. The Company's policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. The Company also expenses internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities. Fees related to cloud-based subscriptions for which the Company has the right to take possession of the software at any time during the hosting period (without significant penalty) and can run the software on internal hardware, or through contract with a third party vendor to host the software, is recognized as an intangible asset and capitalized following the Internal Use Software guidance under ASC 350-40. Subscriptions where the Company accesses the software through the cloud but cannot take possession of the software during the hosting period is treated as a service contract, and as such hosting fees are treated as expense. Q. Acquisitions. Assets acquired and liabilities assumed in business combinations are recorded on the Company’s Consolidated Balance Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the Company are included in the Statements of Consolidated Earnings since their respective dates of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed is allocated to goodwill. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analysis. Accordingly, the measurement period for such purchase price allocations will end when the information, or the facts and circumstances, becomes available, but will not exceed twelve months. R. Income Taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. Judgment is required in addressing the future tax consequences of events that have been recognized in our Consolidated Financial Statements or tax returns (e.g., realization of deferred tax assets, changes in tax laws or interpretations thereof). The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service (“IRS”) and other tax authorities. A change in the assessment of the outcomes of such matters could materially impact our Consolidated Financial Statements. There is a financial statement recognition threshold and measurement attribute for tax positions taken or expected to be taken in a tax return. Specifically, the likelihood of an entity's tax benefits being sustained must be “more likely than not,” assuming that these positions will be examined by taxing authorities with full knowledge of all relevant information prior to recording the related tax benefit in the financial statements. If a tax position drops below the “more likely than not” standard, the benefit can no longer be recognized. Assumptions, judgment, and the use of estimates are required in determining if the “more likely than not” standard has been met when developing the provision for income taxes. As of June 30, 2020 and 2019, the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $62.3 million and $54.2 million, respectively. If certain pending tax matters settle within the next twelve months, the total amount of unrecognized tax benefits may increase or decrease for all open tax years and jurisdictions. See Note 11 for additional details. S. Workers' Compensation Costs. The Company employs a third-party actuary to assist in determining the estimated claim liability related to workers' compensation and employer's liability coverage for PEO Services worksite employees. In estimating ultimate loss rates, we utilize historical loss experience, exposure data, and actuarial judgment, together with a range of inputs which are primarily based upon the worksite employee's job responsibilities, their location, the historical frequency and severity of workers' compensation claims, and an estimate of future cost trends. For each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers' compensation claims cost estimates. PEO Services has secured a workers’ compensation and employer’s liability insurance policy that has a $1 million per occurrence retention and, in fiscal years 2012 and prior, aggregate stop loss insurance that covers any aggregate losses within the $1 million retention that collectively exceed a certain level, from an admitted and licensed insurance company of AIG. The Company has obtained approximately $242 million of irrevocable standby letters of credit in favor of licensed insurance companies of AIG to secure TotalSource workers’ compensation obligations if ADP were to fail to reimburse AIG for workers’ compensation payments. The Company had no drawdowns during June 30, 2020 and 2019 under the letters of credit. Beginning in fiscal year 2013, ADP Indemnity paid premiums to enter into reinsurance arrangements with ACE American Insurance Company, a wholly-owned subsidiary of Chubb Limited ("Chubb"), to cover substantially all losses incurred by ADP Indemnity during these policy years. Each of these reinsurance arrangements limit our overall exposure incurred up to a certain limit. The Company believes the likelihood of ultimate losses exceeding this limit is remote. ADP Indemnity paid a premium of $240 million in July 2020 to enter into a reinsurance arrangement to cover substantially all losses for the fiscal 2021 policy year on terms substantially similar to the fiscal 2020 policy. T. Contingencies. In the normal course of business, the Company is subject to loss contingencies, such as claims and assessments arising from litigation and other legal proceedings, contractual indemnities, and tax matters. Accruals for loss contingencies are recorded when the Company determines that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the estimate of the amount of the loss is a range and some amount within the range appears to be a better estimate than any other amount within the range, that amount is accrued as a liability. If no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued as a liability. These accruals are adjusted periodically as assessments change or additional information becomes available. The loss contingencies are included in Selling, general and administrative expenses. If no accrual is made for a loss contingency because the amount of loss cannot be reasonably estimated, the Company will disclose contingent liabilities when there is at least a reasonable possibility that a loss or an additional loss may have been incurred. Legal fees and other costs related to litigation and other legal proceedings or services are expensed as incurred and are included in Selling, general and administrative expenses. Any claim for insurance recovery is recognized only when realization becomes probable. U. Recently Issued 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 ROU assets of $573.3 million and total operating lease liabilities of $522.6 million, as of the adoption date. The adoption did not ha |
Contingencies Disclosure | Contingencies. In the normal course of business, the Company is subject to loss contingencies, such as claims and assessments arising from litigation and other legal proceedings, contractual indemnities, and tax matters. Accruals for loss contingencies are recorded when the Company determines that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the estimate of the amount of the loss is a range and some amount within the range appears to be a better estimate than any other amount within the range, that amount is accrued as a liability. If no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued as a liability. These accruals are adjusted periodically as assessments change or additional information becomes available. The loss contingencies are included in Selling, general and administrative expenses. If no accrual is made for a loss contingency because the amount of loss cannot be reasonably estimated, the Company will disclose contingent liabilities when there is at least a reasonable possibility that a loss or an additional loss may have been incurred. Legal fees and other costs related to litigation and other legal proceedings or services are expensed as incurred and are included in Selling, general and administrative expenses. Any claim for insurance recovery is recognized only when realization becomes probable. |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Jun. 30, 2020 | |
Revenues [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 2. REVENUE Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three strategic pillars: Human Capital Management (“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 represent 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 PEO. 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: Years Ended June 30, Types of Revenues 2020 2019 2018 HCM $ 6,540.9 $ 6,441.8 $ 6,204.9 HRO, excluding PEO zero-margin benefits pass-throughs 2,543.2 2,444.4 2,261.9 PEO zero-margin benefits pass-throughs 2,907.7 2,647.5 2,409.6 Global 2,052.8 2,014.6 1,931.3 Interest on funds held for clients 545.2 561.9 466.5 Total Revenues $ 14,589.8 $ 14,110.2 $ 13,274.2 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2020: Types of Revenues Employer Services PEO Other Total HCM $ 6,546.4 $ — $ (5.5) $ 6,540.9 HRO, excluding PEO zero-margin benefits pass-throughs 947.2 1,598.8 (2.8) 2,543.2 PEO zero-margin benefits pass-throughs — 2,907.7 — 2,907.7 Global 2,052.8 — — 2,052.8 Interest on funds held for clients 540.2 5.0 — 545.2 Total Segment Revenues $ 10,086.6 $ 4,511.5 $ (8.3) $ 14,589.8 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2019: Types of Revenues Employer Services PEO Other Total HCM $ 6,447.5 $ — $ (5.7) $ 6,441.8 HRO, excluding PEO zero-margin benefits pass-throughs 924.0 1,525.0 (4.6) 2,444.4 PEO zero-margin benefits pass-throughs — 2,647.5 — 2,647.5 Global 2,014.6 — — 2,014.6 Interest on funds held for clients 556.7 5.2 — 561.9 Total Segment Revenues $ 9,942.8 $ 4,177.7 $ (10.3) $ 14,110.2 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2018: Types of Revenues Employer Services PEO Other Total HCM $ 6,210.2 $ — $ (5.3) $ 6,204.9 HRO, excluding PEO zero-margin benefits pass-throughs 851.3 1,414.7 (4.1) 2,261.9 PEO zero-margin benefits pass-throughs — 2,409.6 — 2,409.6 Global 1,931.3 — — 1,931.3 Interest on funds held for clients 462.0 4.5 — 466.5 Total Segment Revenues $ 9,454.8 $ 3,828.8 $ (9.4) $ 13,274.2 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 twelve months ended June 30, 2020 were as follows: Contract Liability Contract liability, July 1, 2019 $ 563.4 Recognition of revenue included in beginning of year contract liability (168.5) Contract liability, net of revenue recognized on contracts during the period 134.2 Currency adjustments (6.4) Contract liability, June 30, 2020 $ 522.7 Deferred costs Deferred costs are periodically reviewed for impairment. There were no impairment losses incurred during the period. The balance is as follows: June 30, 2020 2019 Deferred costs to obtain a contract $ 977.8 $ 992.3 Deferred costs to fulfill a contract 1,423.8 1,436.2 Total deferred contract costs (1) $ 2,401.6 $ 2,428.5 (1) The amount of total deferred costs amortized during the twelve months ended June 30, 2020, June 30, 2019, and June 30, 2018 were $915.0 million , $874.0 million, and $837.4 million, respectively. |
Other Expense_(Income), Net
Other Expense/(Income), Net | 12 Months Ended |
Jun. 30, 2020 | |
Other Income, Net [Abstract] | |
Other Expense/(Income), Net | NOTE 3. OTHER (INCOME)/EXPENSE, NET Other (income)/expense, net consists of the following: Years ended June 30, 2020 2019 2018 Interest income on corporate funds $ (84.5) $ (97.6) $ (83.5) Realized (gains) / losses on available-for-sale securities, net (12.9) 0.9 2.5 Impairment of assets 29.9 12.1 — Gain on sale of assets (5.8) (4.1) (0.7) Gain on sale of investment (0.2) (15.7) — Non-service components of pension (income)/expense, net (see Note 10) (74.5) (6.7) 253.8 Other (income)/expense, net $ (148.0) $ (111.1) $ 172.1 In fiscal 2020, the Company recorded impairment charges of $25.3 million as a r esult of recognizing certain owned facilities at fair value given intent to sell and accordingly classified as held for sale. In addition, the Company vacated certain leased locations early and recorded total impairment charges of $4.6 million to operating right-of-use assets and certain related fixed assets associated with the vacated locations. 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 a recent acquisition. In fiscal 2019, the Company recognized a gain of $15.7 million in relation to the sale of an investment held at cost acquired in prior years and subsequently sold during fiscal 2019. |
Corporate Investments And Funds
Corporate Investments And Funds Held For Clients | 12 Months Ended |
Jun. 30, 2020 | |
Corporate Investments And Funds Held For Clients [Abstract] | |
Corporate Investments And Funds Held For Clients | NOTE 4. CORPORATE INVESTMENTS AND FUNDS HELD FOR CLIENTS Corporate investments and funds held for clients at June 30, 2020 and 2019 were as follows: June 30, 2020 Amortized Gross Gross Fair Value (A) Type of issue: Money market securities, cash and other cash equivalents $ 7,053.6 $ — $ — $ 7,053.6 Available-for-sale securities: Corporate bonds 9,188.7 473.4 — 9,662.1 Asset-backed securities 3,274.6 96.0 (0.5) 3,370.1 U.S. Treasury securities 3,580.6 120.8 — 3,701.4 U.S. government agency securities 1,128.2 35.6 — 1,163.8 Canadian government obligations and Canadian government agency obligations 1,018.7 23.1 — 1,041.8 Commercial Mortgage-Backed Securities 814.3 53.9 — 868.2 Canadian provincial bonds 676.6 33.6 — 710.2 Other securities 1,018.1 41.1 (0.2) 1,059.0 Total available-for-sale securities 20,699.8 877.5 (0.7) 21,576.6 Total corporate investments and funds held for clients $ 27,753.4 $ 877.5 $ (0.7) $ 28,630.2 (A) Included within available-for-sale securities are corporate investments with fair values of $13.6 million and funds held for clients with fair values of $21,563.0 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy. June 30, 2019 Amortized Gross Gross Fair 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 U.S. 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.” The Company did not transfer any assets between Levels during fiscal 2020 or 2019. In addition, the Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company has no available-for-sale securities included in Level 1 or Level 3 as of June 30, 2020. 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, 2020, are as follows: June 30, 2020 Securities in unrealized loss position less than Securities in unrealized loss position greater than 12 months Total Gross Unrealized Fair Market Gross Unrealized Fair Market Gross Fair Corporate bonds $ — $ — $ — $ — $ — $ — Asset-backed securities (0.5) 43.9 — — (0.5) 43.9 U.S. Treasury securities — 2.0 — — — 2.0 U.S. government agency securities — — — — — — Canadian government obligations and Canadian government agency obligations — — — — — — Commercial Mortgage-Backed Securities — — — 1.5 — 1.5 Canadian provincial bonds — — — — — — Other securities (0.2) 17.1 — — (0.2) 17.1 $ (0.7) $ 63.0 $ — $ 1.5 $ (0.7) $ 64.5 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 Securities in unrealized loss position greater than 12 months Total Gross Unrealized Fair Market Gross Unrealized Fair Market Gross Fair 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 June 30, 2020, 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 July 2020 through March 2030. At June 30, 2020, asset-backed securities primarily include AAA-rated senior tranches of securities with predominately prime collateral of fixed-rate auto loan, credit card, equipment lease and rate reduction receivables with fair values of $1,666.6 million, $1,256.0 million, $344.4 million, and $102.4 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 June 30, 2020. At June 30, 2020, U.S. government agency securities primarily include debt directly issued by Federal Home Loan Banks and Federal Farm Credit Banks with fair values of $561.1 million and $432.0 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 fro m July 2020 through December 2029. At June 30, 2020, U.S. government agency commercial mortgage-backed securities of $868.2 million include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association. At June 30, 2020, other securities and their fair value primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above, with fair values of $592.7 million, AA-rated United Kingdom Gilt securities of $189.9 million, and AAA-rated and AA-rated supranational bonds of $91.4 million. Classification of corporate investments on the Consolidated Balance Sheets is as follows: June 30, 2020 2019 Corporate investments: Cash and cash equivalents $ 1,908.5 $ 1,949.2 Short-term marketable securities — 10.5 Long-term marketable securities (a) 13.6 261.4 Total corporate investments $ 1,922.1 $ 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: June 30, 2020 2019 Funds held for clients: Restricted cash and cash equivalents held to satisfy client funds obligations $ 5,145.1 $ 4,847.0 Restricted short-term marketable securities held to satisfy client funds obligations 5,541.2 5,013.9 Restricted long-term marketable securities held to satisfy client funds obligations 16,021.8 19,573.3 Total funds held for clients $ 26,708.1 $ 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 $25,831.6 million and $29,144.5 million as of June 30, 2020 and 2019, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client funds obligations. Of the Company’s funds held for clients at June 30, 2020, $23,740.0 million are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and eliminate 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-rating or AA-rating at June 30, 2020, 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 June 30, 2020. Expected maturities of available-for-sale securities at June 30, 2020 are as follows: One year or less $ 5,541.2 One year to two years 3,962.2 Two years to three years 4,761.5 Three years to four years 3,005.6 After four years 4,306.1 Total available-for-sale securities $ 21,576.6 |
Property, Plant, and Equipment
Property, Plant, and Equipment Property, Plant, and Equipment | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 5. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at cost and accumulated depreciation at June 30, 2020 and 2019 are as follows: June 30, 2020 2019 Property, plant and equipment: Land and buildings $ 737.2 $ 781.2 Data processing equipment 847.9 749.0 Furniture, leaseholds and other 643.6 651.6 2,228.7 2,181.8 Less: accumulated depreciation (1,524.8) (1,417.6) Property, plant and equipment, net $ 703.9 $ 764.2 Depreciation of property, plant and equipment was $192.8 million, $180.6 million, and $173.1 million for fiscal 2020, 2019 and 2018, respectively. The Company recorded impairment charges of $25.3 million as a result of recognizing certain owned facilities at fair value given intent to sell and accordingly classified as held for sale. The fair value of these owned buildings subsequent to the write down is approximately $6.7 million and is not material for reclassification separately on the Consolidated Balance Sheet s |
Goodwill And Intangible Assets,
Goodwill And Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets, Net | NOTE 7. GOODWILL AND INTANGIBLE ASSETS, NET Changes in goodwill for the fiscal years ended June 30, 2020 and 2019 are as follows: Employer PEO Total Balance at June 30, 2018 $ 2,238.7 $ 4.8 $ 2,243.5 Additions and other adjustments 94.3 — 94.3 Currency translation adjustments (14.8) — (14.8) Balance at June 30, 2019 $ 2,318.2 $ 4.8 $ 2,323.0 Additions and other adjustments (2.5) — (2.5) Currency translation adjustments (11.1) — (11.1) Balance at June 30, 2020 $ 2,304.6 $ 4.8 $ 2,309.4 Components of intangible assets, net, are as follows: June 30, 2020 2019 Intangible assets: Software and software licenses $ 2,719.1 $ 2,519.3 Customer contracts and lists 1,021.2 860.7 Other intangibles 239.2 237.9 3,979.5 3,617.9 Less accumulated amortization: Software and software licenses (1,912.0) (1,762.3) Customer contracts and lists (628.3) (566.4) Other intangibles (223.4) (217.7) (2,763.7) (2,546.4) Intangible assets, net $ 1,215.8 $ 1,071.5 Other intangibles consist primarily of purchased rights, purchased content, 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, 5 years for customer contracts and lists, and 4 years for other intangibles). Amortization of intangible assets was $287.2 million, $228.4 million, and $204.5 million for fiscal 2020, 2019, and 2018, respectively. Estimated future amortization expenses of the Company's existing intangible assets are as follows: Amount Twelve months ending June 30, 2021 $ 285.3 Twelve months ending June 30, 2022 $ 243.7 Twelve months ending June 30, 2023 $ 203.8 Twelve months ending June 30, 2024 $ 161.5 Twelve months ending June 30, 2025 $ 108.7 |
Short-Term Financing
Short-Term Financing | 12 Months Ended |
Jun. 30, 2020 | |
Short-Term Financing [Abstract] | |
Short-Term Financing | NOTE 8. SHORT TERM FINANCING The Company has a $3.2 billion, 364-day credit agreement that matures in June 2021 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 also 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 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 June 30, 2020 and 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. In June 2020, the Company decreased its U.S short-term commercial paper program to provide for the issuance of up to $9.7 billion from $10.3 billion in aggregate maturity value. The Company’s commercial paper program is rated A-1+ by Standard & Poor’s and Prime-1 (“P-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 June 30, 2020 and June 30, 2019, the Company had no commercial paper borrowing outstanding. Details of the borrowings under the commercial paper program are as follows: Years ended June 30, 2020 2019 Average daily borrowings (in billions) $ 2.7 $ 2.8 Weighted average interest rates 1.6 % 2.2 % 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 June 30, 2020 and 2019, the Company had $13.6 million and $262.0 million, respectively, of outstanding obligations related to the reverse repurchase agreements. Details of the reverse repurchase agreements are as follows: Years ended June 30, 2020 2019 Average outstanding balances $ 263.4 $ 316.7 Weighted average interest rates 1.6 % 1.9 % |
Long Term Debt Long Term Debt
Long Term Debt Long Term Debt | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 9. 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 June 30, 2020 and 2019 are as follows: Debt instrument Effective Interest Rate June 30, 2020 June 30, 2019 Fixed-rate 2.250% 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 8.4 10.9 2,008.4 2,010.9 Less: current portion (1,001.8) (2.5) Less: unamortized discount and debt issuance costs (3.8) (6.2) Total long-term debt $ 1,002.8 $ 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 June 30, 2020, the fair value of the Notes, based on Level 2 inputs, was $2,124.7 million. 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 anticipation of the refinancing of our fixed-rate 2.25% notes due September 15, 2020, from December 3, 2019 through March 4, 2020, the Company entered into a series of treasury rate lock transactions, with an aggregate notional amount totaling $400.0 million, to hedge its exposure to changes in interest rates through the completion of the refinancing. The derivative contracts entered into during fiscal 2020 have been designated as cash-flow hedges and will be terminated upon completion of the refinancing. Changes in the derivative’s fair value are recorded each period in other comprehensive income with a corresponding current asset or liability and, upon settlement, the aggregate amount in accumulated other comprehensive income will be amortized into net income over the term of the future debt instrument. Refer to Note 13 for the impact to accumulated other comprehensive income. There are no cash flows associated with the derivative until settlement occurs with the counter-parties. On July 15, 2020, the Company gave notice to the current holders of our intention to redeem the $1.0 billion 2.25% Senior Notes due September 15, 2020 on the call date of August 15, 2020. It is the Company's intent to issue new long-term notes to fund this redemption and which also may be used for general corporate purposes. If necessary in the interim, the Company intends to issue commercial paper to fund the Notes’ redemption until such time as the new Notes are issued. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE 10. EMPLOYEE BENEFIT PLANS A. 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. The Company determines the fair value of stock options issued using a binomial option-pricing model. The binomial option-pricing model considers a range of assumptions related to volatility, dividend yield, risk-free interest rate, and employee exercise behavior. Expected volatilities utilized in the binomial option-pricing model are based on a combination of implied market volatilities, historical volatility of the Company's stock price, and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The binomial option-pricing model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of a stock option grant is derived from the output of the binomial model and represents the period of time that options granted are expected to be outstanding. • 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 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. During fiscal 2020, the Board of Directors authorized the repurchase of $5 billion of our common stock, replacing in its entirety the previous 2015 authorization to purchase up to 25 million shares of our common stock. The Company repurchased 6.2 million shares in fiscal 2020 as compared to 6.5 million shares repurchased in fiscal 2019. 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. Cash payments related to the settlement of vested time-based restricted stock units and performance-based restricted stock units were approximately $34.6 million, $26.6 million, and $27.1 million during fiscal years 2020, 2019, and 2018, respectively. The following table represents stock-based compensation expense and related income tax benefits in each of fiscal 2020, 2019, and 2018, respectively: Years ended June 30, 2020 2019 2018 Operating expenses $ 13.7 $ 16.9 $ 22.9 Selling, general and administrative expenses 99.1 131.2 128.7 System development and programming costs 18.0 19.2 23.8 Total pretax stock-based compensation expense $ 130.8 $ 167.3 $ 175.4 Income tax benefit $ 32.2 $ 41.6 $ 44.1 As of June 30, 2020, the total remaining unrecognized compensation cost related to non-vested stock options, restricted stock units, and restricted stock awards amounted to $18.2 million, $30.8 million, and $102.1 million, respectively, which will be amortized over the weighted-average remaining requisite service periods of 2.3 years, 1.5 years, and 1.9 years, respectively. In fiscal 2020, the following activity occurred under the Company’s existing plans. Stock Options: Number Weighted Options outstanding at July 1, 2019 3,608 $ 103 Options granted 1,015 $ 170 Options exercised (968) $ 86 Options forfeited/cancelled (145) $ 136 Options outstanding at June 30, 2020 3,510 $ 126 Options exercisable at June 30, 2020 1,273 $ 96 Shares available for future grants, end of year 24,853 Shares reserved for issuance under stock option plans, end of year 28,363 Time-Based Restricted Stock and Time-Based Restricted Stock Units: Number of Shares Number of Units Restricted shares/units outstanding at July 1, 2019 1,272 290 Restricted shares/units granted 572 101 Restricted shares/units vested (856) (194) Restricted shares/units forfeited (83) (17) Restricted shares/units outstanding at June 30, 2020 905 180 Performance-Based Restricted Stock and Performance-Based Restricted Stock Units: Number of Shares Number of Units Restricted shares/units outstanding at July 1, 2019 250 867 Restricted shares/units granted 112 391 Restricted shares/units vested (171) (376) Restricted shares/units forfeited (12) (31) Restricted shares/units outstanding at June 30, 2020 179 851 The aggregate intrinsic value of outstanding stock options and exercisable stock options as of June 30, 2020 was $102.1 million and $66.8 million, respectively, which have a remaining life of 7 years and 6 years, respectively. The aggregate intrinsic value for stock options exercised in fiscal 2020, 2019, and 2018 was $78.0 million, $78.2 million, and $60.0 million, respectively. The fair value for stock options granted was estimated at the date of grant using the following assumptions: 2020 2019 2018 Risk-free interest rate 1.4 % 2.7 % 1.8 % Dividend yield 1.9 % 1.9 % 2.1 % Weighted average volatility factor 19.3 % 20.9 % 21.7 % Weighted average expected life (in years) 5.4 5.4 5.4 Weighted average fair value (in dollars) $ 24.40 $ 26.60 $ 17.50 The weighted average fair values of shares granted were as follows: Year ended June 30, 2020 2019 2018 Performance-based restricted stock $ 169.84 $ 146.93 $ 107.43 Time-based restricted stock $ 167.16 $ 146.80 $ 108.10 B. Pension Plans The Company has a defined benefit cash balance pension plan under which employees are credited with a percentage of base pay plus interest. The U.S. pension plan, which is currently closed to new entrants, was frozen effective July 1, 2020. As of July 1, 2020 and onward, participants will retain their accrued benefits and will not accrue any future benefits due to pay and/or service. The plan interest credit rate varies from year-to-year based on the ten-year U.S. Treasury rate. Employees are fully vested upon completion of three years of service. The Company's policy is to make contributions within the range determined by generally accepted actuarial principles. 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. In fiscal 2019 and 2018, the Company recorded $48.2 million and $319.6 million of non-cash settlement charges and special termination benefits, respectively. The Company also has various retirement plans for its non-U.S. employees and maintains a Supplemental Officers Retirement Plan (“SORP”). The SORP is a defined benefit plan pursuant to which the Company pays supplemental pension benefits to certain corporate officers upon retirement based upon the officers' years of service and compensation. The SORP, which is currently closed to new entrants, was frozen effective July 1, 2019, with no future accruals due to pay and/or service. A June 30 measurement date was used in determining the Company's benefit obligations and fair value of plan assets. The Company is required to (a) recognize in its Consolidated Balance Sheets an asset for a plan's net overfunded status or a liability for a plan's net underfunded status, (b) measure a plan's assets and its obligations that determine its funded status as of the end of the employer's fiscal year, and (c) recognize changes in the funded status of a defined benefit plan in the year in which the changes occur in accumulated other comprehensive (loss)/income. The Company's pension plans' funded status as of June 30, 2020 and 2019 is as follows: June 30, 2020 2019 Change in plan assets: Fair value of plan assets at beginning of year $ 1,910.5 $ 2,178.1 Actual return on plan assets 172.1 142.0 Employer contributions 9.8 10.0 Currency translation adjustments (3.5) (7.0) Benefits paid (100.1) (412.6) Fair value of plan assets at end of year $ 1,988.8 $ 1,910.5 Change in benefit obligation: Benefit obligation at beginning of year $ 1,951.2 $ 2,135.3 Service cost 59.7 59.8 Interest cost 61.8 78.6 Actuarial loss 210.7 95.8 Currency translation adjustments (3.6) (8.7) Plan changes 0.4 0.8 Curtailments and special termination benefits — 2.2 Benefits paid (100.1) (412.6) Projected benefit obligation at end of year $ 2,180.1 $ 1,951.2 Funded status - plan assets less benefit obligations $ (191.3) $ (40.7) The amounts recognized on the Consolidated Balance Sheets as of June 30, 2020 and 2019 consisted of: June 30, 2020 2019 Noncurrent assets $ 19.8 $ 108.0 Current liabilities (5.4) (5.9) Noncurrent liabilities (205.7) (142.8) Net amount recognized $ (191.3) $ (40.7) The accumulated benefit obligation for all defined benefit pension plans was $2,167.5 million and $1,938.0 million at June 30, 2020 and 2019, respectively. The Company's pension plans with accumulated benefit obligations in excess of plan assets as of June 30, 2020 and 2019 had the following projected benefit obligation, accumulated benefit obligation, and fair value of plan assets: June 30, 2020 2019 Projected benefit obligation $ 2,046.5 $ 162.4 Accumulated benefit obligation $ 2,034.4 $ 149.9 Fair value of plan assets $ 1,835.4 $ 13.8 The components of net pension expense were as follows: 2020 2019 2018 Service cost – benefits earned during the period $ 59.7 $ 59.8 $ 74.6 Interest cost on projected benefits 61.8 78.6 65.4 Expected return on plan assets (117.9) (131.8) (137.5) Net amortization and deferral 6.8 0.1 8.4 Special termination benefits and plan curtailments (22.0) 48.7 319.5 Net pension (income)/expense $ (11.6) $ 55.4 $ 330.4 As a result of the freeze of the U.S. pension plan, described above, the Company recognized $17.0 million of prior service credits during fiscal 2020 within Other Income, net, which were previously recognized within accumulated other comprehensive income (see Note 13). The net actuarial loss and prior service cost for the defined benefit pension plans that are included in accumulated other comprehensive income (loss) that have not yet been recognized as components of net periodic benefit cost are $429.6 million and $2.5 million, respectively, at June 30, 2020. There is no remaining transition obligation for the defined benefit pension plans included in accumulated other comprehensive income. The estimated net actuarial loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic pension cost in fiscal 2021 are $9.0 million and $0.2 million, respectively. Assumptions used to determine the actuarial present value of benefit obligations were: Years ended June 30, 2020 2019 Discount rate 2.45 % 3.40 % Increase in compensation levels 4.00 % 4.00 % Assumptions used to determine the net pension expense generally were: Years ended June 30, 2020 2019 2018 Discount rate 3.40 % 4.10 % 3.70 % Expected long-term rate of return on assets 6.75 % 6.75 % 6.75 % Increase in compensation levels 4.00 % 4.00 % 4.00 % The discount rate is based upon published rates for high-quality fixed-income investments that produce cash flows that approximate the timing and amount of expected future benefit payments. The expected long-term rate of return on assets is determined based on historical and expected future rates of return on plan assets considering the target asset mix and the long-term investment strategy. Plan Assets The Company's pension plans' asset allocations at June 30, 2020 and 2019 by asset category were as follows: 2020 2019 Cash and cash equivalents 1 % 1 % Fixed income securities 44 % 44 % U.S. equity securities 17 % 17 % International equity securities 13 % 13 % Global equity securities 25 % 25 % 100 % 100 % The Company's pension plans' asset investment strategy is designed to ensure prudent management of assets, consistent with long-term return objectives and the prompt fulfillment of all pension plan obligations. The investment strategy and asset mix were developed in coordination with an asset liability study conducted by external consultants to maximize the funded ratio with the least amount of volatility. The pension plans' assets are currently invested in various asset classes with differing expected rates of return, correlations, and volatilities, including large capitalization and small capitalization U.S. equities, international equities, U.S. fixed income securities, and cash. The target asset allocation ranges for the U.S. plan are generally as follows: U.S. fixed income securities 35% - 45% U.S. equity securities 14% - 24% International equity securities 11% - 21% Global equity securities 20% - 30% As of June 30, 2020 and June 30, 2019, the U.S. pension plan asset allocation is within the target ranges. The pension plans' fixed income portfolio is designed to match the duration and liquidity characteristics of the pension plans' liabilities. In addition, the pension plans invest only in investment-grade debt securities to ensure preservation of capital. The pension plans' equity portfolios are subject to diversification guidelines to reduce the impact of losses in single investments. Investment managers are prohibited from buying or selling commodities and from the short selling of securities. None of the pension plans' assets are directly invested in the Company's stock, although the pension plans may hold a minimal amount of Company stock to the extent of the Company's participation in equity indices. The pension plans' investments included in Level 1 are valued using closing prices for identical instruments that are traded on active exchanges. The pension plans' investments included in Level 2 are valued utilizing inputs obtained from an independent pricing service, which are reviewed by the Company for reasonableness. To determine the fair value of our Level 2 plan assets, a variety of inputs are utilized, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, new issue data, and monthly payment information. The pension plans have no Level 3 investments at June 30, 2020. The following table presents the investments of the pension plans measured at fair value at June 30, 2020: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 798.6 $ — $ 798.6 Government securities — 414.7 — 414.7 Mutual funds 7.3 274.8 — 282.1 Corporate and municipal bonds — 434.8 — 434.8 Mortgage-backed security bonds — 38.5 — 38.5 Total pension asset investments $ 7.3 $ 1,961.4 $ — $ 1,968.7 In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $20.1 million as of June 30, 2020, which have been classified as Level 1 in the fair value hierarchy. The following table presents the investments of the pension plans measured at fair value at June 30, 2019: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 1,046.6 $ — $ 1,046.6 U.S. government securities — 417.9 — 417.9 Mutual funds 6.5 — — 6.5 Corporate and municipal bonds — 394.3 — 394.3 Mortgage-backed security bonds — 30.2 — 30.2 Total pension asset investments $ 6.5 $ 1,889.0 $ — $ 1,895.5 In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $15.0 million as of June 30, 2019, which have been classified as Level 1 in the fair value hierarchy. Contributions During fiscal 2020, the Company contributed $9.8 million to the pension plans. The Company expects to contribute $9.3 million to the pension plans during fiscal 2021. Estimated Future Benefit Payments The benefits expected to be paid in each year from fiscal 2021 to the year ended June 30, 2025 are $99.5 million, $117.8 million, $99.3 million, $106.3 million, and $119.4 million, respectively. The aggregate benefits expected to be paid in the five fiscal years from the year ended June 30, 2026 to the year ended June 30, 2030 are $639.4 million. The expected benefits to be paid are based on the same assumptions used to measure the Company's pension plans' benefit obligations at June 30, 2020 and includes estimated future employee service. C. Retirement and Savings Plan. The Company has a 401(k) retirement and savings plan, which allows eligible employees to contribute up to 50% of their compensation annually and allows highly compensated employees to contribute up to 12% of their compensation annually. The Company matches a portion of employee contributions, which amounted to approximately $112.7 million , $110.9 million, and $100.6 million for the calendar years ended December 31, 2019, 2018, and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11. INCOME TAXES Earnings before income taxes shown below are based on the geographic location to which such earnings are attributable. Years ended June 30, 2020 2019 2018 Earnings before income taxes: United States $ 2,815.4 $ 2,584.6 $ 1,937.2 Foreign 367.2 421.0 345.4 $ 3,182.6 $ 3,005.6 $ 2,282.6 The provision (benefit) for income taxes consists of the following components: Years ended June 30, 2020 2019 2018 Current: Federal $ 468.3 $ 464.3 $ 366.6 Foreign 119.5 129.1 105.5 State 102.3 110.1 77.6 Total current 690.1 703.5 549.7 Deferred: Federal 23.7 7.9 (193.0) Foreign (5.4) 12.8 26.1 State 7.7 (11.4) 14.9 Total deferred 26.0 9.3 (152.0) Total provision for income taxes $ 716.1 $ 712.8 $ 397.7 A reconciliation between the Company's effective tax rate and the U.S. federal statutory rate is as follows: Years ended June 30, 2020 % 2019 % 2018 % Provision for taxes at U.S. statutory rate $ 668.4 21.0 $ 631.2 21.0 $ 640.5 28.1 Increase/(decrease) in provision from: State taxes, net of federal tax benefit 85.6 2.7 80.7 2.7 58.1 2.5 Valuation Allowance Release on Foreign tax credits (20.3) (0.6) — — — — U.S. tax on foreign income — — — — 12.0 0.5 Utilization of foreign tax credits — — — — (19.6) (0.9) Tax settlements — — — — (31.9) (1.4) Re-measurement of deferred tax balances — — — — (253.3) (11.1) Resolution of tax matters - Section 199 Qualified production activities and research tax credit refund claim — — — — (33.3) (1.5) Foreign rate differential 44.9 1.4 46.9 1.6 — — Excess tax benefit - Stock-based compensation (26.9) (0.8) (29.8) (1.0) (26.7) (1.2) Other (35.6) (1.2) (16.2) (0.6) 51.9 2.4 $ 716.1 22.5 $ 712.8 23.7 $ 397.7 17.4 The effective tax rate for fiscal 2020 and 2019 was 22.5% and 23.7%, respectively. The decrease in the effective tax rate is primarily due to the release of a valuation allowance related to foreign tax credit carryforwards, a reduction in the operating tax rate due to the mix between domestic and foreign earnings, the benefit of a foreign tax law change and lower reserves for uncertain tax positions during fiscal 2020 partially offset by favorable adjustments to prior year tax liabilities during fiscal 2019. The effective tax rate for fiscal 2019 and 2018 was 23.7% and 17.4%, respectively. The increase in the effective tax rate is primarily due to the one-time benefit recognized on the re-measurement of deferred tax balances, primarily as a result of ASC 606, using the lower tax rates enacted under the Act, the release of reserves for uncertain tax positions during fiscal 2018 and the loss of the qualified production activities tax deduction as a result of the Act during fiscal 2019. This is partially offset by the reduction in the federal corporate statutory tax rate to 21% from our blended rate for fiscal 2018 of 28.1% as a result of the Act. The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows: Years ended June 30, 2020 2019 Deferred tax assets: Accrued expenses not currently deductible $ 203.0 $ 228.9 Stock-based compensation expense 33.8 45.3 Foreign tax credits 20.1 25.1 Net operating losses 52.0 54.0 Retirement Benefits 46.0 5.6 Other 25.9 20.2 380.8 379.1 Less: valuation allowances (12.0) (31.6) Deferred tax assets, net $ 368.8 $ 347.5 Deferred tax liabilities: Deferred revenue $ 475.0 $ 475.9 Fixed and intangible assets 288.2 279.5 Prepaid expenses 82.3 86.2 Unrealized investment gains, net 187.9 63.0 Tax on unrepatriated earnings 22.2 31.6 Other 6.4 7.2 Deferred tax liabilities 1,062.0 943.4 Net deferred tax liabilities $ 693.2 $ 595.9 There are $38.8 million and $64.0 million of long-term deferred tax assets included in other assets on the Consolidated Balance Sheets at June 30, 2020 and 2019, respectively. Income taxes have not been provided on undistributed earnings of certain foreign subsidiaries in an aggregate amount of approximately $274.1 million as the Company considers such earnings to be permanently reinvested outside of the United States. As of June 30, 2020, it is not practicable to estimate the unrecognized tax liability that would occur upon distribution. The Company has estimated foreign net operating loss carry-forwards of approximately $55.3 million as of June 30, 2020, of which $0.9 million expire through June 2025 and $54.4 million have an indefinite utilization period. As of June 30, 2020, the Company has approximately $58.7 million of federal net operating loss carry-forwards from acquired companies. The net operating losses have an annual utilization limitation pursuant to section 382 of the Internal Revenue Code and expire through June 2036. The Company has state net operating loss carry-forwards of approximately $374.8 million as of June 30, 2020, which expire through June 2039. The Company has recorded valuation allowances of $12.0 million and $31.6 million at June 30, 2020 and 2019, respectively, to reflect the estimated amount of domestic and foreign deferred tax assets that may not be realized. Income tax payments were approximately $677.1 million, $633.8 million, and $529.7 million for fiscal 2020, 2019, and 2018, respectively. As of June 30, 2020, 2019, and 2018 the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $62.3 million, $54.2 million, and $45.2 million respectively. The amount that, if recognized, would impact the effective tax rate is $49.9 million, $43.3 million, and $36.1 million, respectively. The remainder, if recognized, would principally impact deferred taxes. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2020 2019 2018 Unrecognized tax benefits at beginning of the year $ 54.2 $ 45.2 $ 74.6 Additions for tax positions 13.2 9.5 4.0 Additions for tax positions of prior periods 6.3 18.3 19.8 Reductions for tax positions of prior periods (4.3) (7.7) (40.5) Settlement with tax authorities (4.0) (10.3) (11.7) Expiration of the statute of limitations (2.8) (0.6) (1.0) Impact of foreign exchange rate fluctuations (0.3) (0.2) — Unrecognized tax benefit at end of year $ 62.3 $ 54.2 $ 45.2 Interest expense and penalties associated with uncertain tax positions have been recorded in the provision for income taxes on the Statements of Consolidated Earnings. During the fiscal years 2020, 2019, and 2018, the Company recorded interest expense of $1.6 million, $1.9 million, and $3.2 million, respectively. During fiscal year 2020, the Company recorded a benefit for penalties of $0.3 million, penalties incurred during fiscal years 2019, and 2018 were not significant. At June 30, 2020, the Company had accrued interest of $8.8 million recorded on the Consolidated Balance Sheets, of which $1.0 million was recorded within income taxes payable, and the remainder was recorded within other liabilities. At June 30, 2019, the Company had accrued interest of $9.3 million recorded on the Consolidated Balance Sheets, of which $4.3 million was recorded within income taxes payable, and the remainder was recorded within other liabilities. At June 30, 2020, the Company’s accrued penalties recorded on the Consolidated Balance Sheets within other liabilities were not material. At June 30, 2019, the Company had accrued penalties of $0.3 million recorded on the Consolidated Balance Sheets within other liabilities. The Company is routinely examined by the IRS and tax authorities in foreign countries in which it conducts business, as well as tax authorities in states in which it has significant business operations. The tax years currently under examination vary by jurisdiction. Examinations in progress in which the Company has significant business operations are as follows: Taxing Jurisdiction Fiscal Years under Examination U.S. (IRS) 2019 - 2020 Wisconsin 2015 - 2018 Michigan 2012 - 2014, 2015 - 2018 New York State 2016 - 2018 New York City 2016 - 2017 Florida 2016 - 2018 India 2003 - 2007, 2008 - 2010, 2013 - 2016 The Company regularly considers the likelihood of assessments resulting from examinations in each of the jurisdictions. The resolution of tax matters is not expected to have a material effect on the consolidated financial condition of the Company, although a resolution could have a material impact on the Company's Statements of Consolidated Earnings for a particular future period and on the Company's effective tax rate. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 12. COMMITMENTS AND CONTINGENCIES As of June 30, 2020 , the Company has purchase commitments of appro ximately $613.2 million, including a reinsurance premium with Chubb for the fiscal 2021 policy year, as well as obligations related to software license agreements and purchase and maintenance agreements on our software, equipment, and other assets, of which $415.6 million relates to fiscal 2021, $165.3 million relates to the fiscal year ending June 30, 2022, and the remaining relates to fiscal years ending June 30, 2023 through fiscal 2025. In June 2018, a potential class action complaint was filed against the Company in the Circuit Court of Cook County, Illinois asserting that ADP violated the Illinois Biometric Privacy Act in connection with its collection, use and storage of biometric data of employees of its clients who are residents of Illinois. 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. In June 2020, the Company reached a settlement of all outstanding claims against ADP for $25.0 million, subject to the court's preliminary approval. The Company does not expect that any of the remaining cases against ADP's clients will result in any material liabilities to the Company. In May 2020, two potential class action complaints were filed against ADP, TotalSource and related defendants in the U.S. District Court, District of New Jersey. The complaints assert violations of the Employee Retirement Income Security Act of 1974 (“ERISA”) in connection with the ADP TotalSource Retirement Savings Plan’s fiduciary administrative and investment decision-making. The complaints seek statutory and other unspecified monetary damages, injunctive relief and attorney’s fees. 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. |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income | 12 Months Ended |
Jun. 30, 2020 | |
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | NOTE 13. RECLASSIFICATION OUT OF ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME Comprehensive income is a measure of income that includes both net earnings and other comprehensive income (loss). Other comprehensive income/(loss) results from items deferred on the Consolidated Balance Sheets in stockholders' equity. Other comprehensive income/(loss) was $242.5 million, $422.5 million, and ($254.3) million in fiscal 2020, 2019, and 2018, respectively. Changes in Accumulated Other Comprehensive (Loss)/Income (“AOCI”) by component are as follows: Currency Translation Adjustment Net Gains on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss) /Income Balance at June 30, 2017 $ (234.8) $ 68.3 $ — $ (216.7) $ (383.2) Other comprehensive income/(loss) before reclassification adjustments 7.8 (460.7) — 87.0 (365.9) Tax effect — 123.4 — (18.7) 104.7 Reclassification adjustments to net earnings — 2.7 (A) — 9.3 (B) 12.0 Tax effect — (0.6) — (4.5) (5.1) Reclassification to retained earnings (C) — (7.1) (C) — (35.2) (C) (42.3) Balance at June 30, 2018 $ (227.0) $ (274.0) $ — $ (178.8) $ (679.8) Other comprehensive income/(loss) before reclassification adjustments (42.2) 642.4 — (84.7) 515.5 Tax effect — (144.4) — 20.0 (124.4) Reclassification adjustments to net earnings — 0.9 (A) — 40.3 (B) 41.2 Tax effect — (0.3) — (9.5) (9.8) Balance at June 30, 2019 $ (269.2) $ 224.6 $ — $ (212.7) $ (257.3) Other comprehensive income/(loss) before reclassification adjustments (53.0) 602.2 (40.3) (160.8) 348.1 Tax effect — (136.4) 10.0 39.5 (86.9) Reclassification adjustments to net earnings — (12.9) (A) — (11.8) (B) (24.7) Tax effect — 2.9 — 3.1 6.0 Balance at June 30, 2020 $ (322.2) $ 680.4 $ (30.3) $ (342.7) $ (14.8) (A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension (income)/expense (see Note 10). In fiscal 2020, reclassification includes $17.0 million of prior service credits which were recognized as a component of net pension (income)/expense as a result of the US pension plan freeze. (C) During fiscal 2018, the Company adopted ASU 2018-02 and reclassified stranded tax effects attributable to the Act from AOCI to retained earnings. The fiscal 2018 Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive (loss)/income into retained earnings. |
Financial Data By Segment
Financial Data By Segment | 12 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Financial Data By Segment | NOTE 14. FINANCIAL DATA BY SEGMENT AND GEOGRAPHIC AREA 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. In 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 reflects 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. Employer Services PEO Services Other Total Year ended June 30, 2020 Revenues $ 10,086.6 $ 4,511.5 $ (8.3) $ 14,589.8 Earnings before income taxes 3,063.0 605.5 (485.9) 3,182.6 Assets 37,071.7 1,443.2 650.6 39,165.5 Capital expenditures 115.7 — 52.6 168.3 Depreciation and amortization 388.0 3.4 88.6 480.0 Year ended June 30, 2019 Revenues $ 9,942.8 $ 4,177.7 $ (10.3) $ 14,110.2 Earnings before income taxes 2,960.9 616.2 (571.5) 3,005.6 Assets 34,606.3 1,584.1 5,697.3 41,887.7 Capital expenditures 98.2 — 64.5 162.7 Depreciation and amortization 321.0 3.5 84.5 409.0 Year ended June 30, 2018 Revenues $ 9,454.8 $ 3,828.8 $ (9.4) $ 13,274.2 Earnings before income taxes 2,601.1 541.6 (860.1) 2,282.6 Assets 31,984.2 1,329.8 5,535.1 38,849.1 Capital expenditures 113.9 — 78.0 191.9 Depreciation and amortization 291.9 3.0 82.7 377.6 United States Europe Canada Other Total Year ended June 30, 2020 Revenues $ 12,740.1 $ 1,236.3 $ 329.8 $ 283.6 $ 14,589.8 Assets $ 33,891.0 $ 2,162.7 $ 2,435.3 $ 676.5 $ 39,165.5 Year ended June 30, 2019 Revenues $ 12,262.6 $ 1,236.8 $ 326.6 $ 284.2 $ 14,110.2 Assets $ 36,508.3 $ 2,807.9 $ 1,950.5 $ 621.0 $ 41,887.7 Year ended June 30, 2018 Revenues $ 11,439.8 $ 1,242.2 $ 321.6 $ 270.6 $ 13,274.2 Assets $ 33,586.6 $ 2,608.6 $ 2,073.1 $ 580.8 $ 38,849.1 |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) Quarterly Financial Results (Unaudited) | 12 Months Ended |
Jun. 30, 2020 | |
Summarized Quarterly Results of Continuing Operations [Abstract] | |
Quarterly Financial Results (Unaudited) | NOTE 15. QUARTERLY FINANCIAL RESULTS (UNAUDITED) Summarized quarterly results of our operations for the fiscal years ended June 30, 2020 and June 30, 2019 are as follows: Year ended June 30, 2020 First Second Quarter Third Fourth Revenues $ 3,495.7 $ 3,669.5 $ 4,047.8 $ 3,376.8 Costs of revenues $ 2,044.8 $ 2,094.1 $ 2,239.1 $ 2,067.2 Gross profit $ 1,450.9 $ 1,575.4 $ 1,808.7 $ 1,309.6 Earnings before income taxes $ 739.1 $ 835.5 $ 1,076.7 $ 531.3 Net earnings $ 582.4 $ 651.6 $ 820.9 $ 411.5 Basic per common share amounts: Basic earnings per share $ 1.35 $ 1.51 $ 1.91 $ 0.96 Diluted per common share amounts: Diluted earnings per share $ 1.34 $ 1.50 $ 1.90 $ 0.96 Year ended June 30, 2019 First Second Quarter Third Fourth Revenues (A) $ 3,310.3 $ 3,492.4 $ 3,828.2 $ 3,479.3 Costs of revenues (A) $ 1,927.6 $ 2,000.2 $ 2,092.6 $ 2,001.1 Gross profit $ 1,382.7 $ 1,492.2 $ 1,735.6 $ 1,478.2 Earnings before income taxes $ 646.8 $ 741.0 $ 984.5 $ 633.3 Net earnings $ 505.4 $ 558.2 $ 753.7 $ 475.5 Basic per common share amounts: Basic earnings per share $ 1.16 $ 1.28 $ 1.74 $ 1.10 Diluted per common share amounts: Diluted earnings per share $ 1.15 $ 1.27 $ 1.73 $ 1.09 |
Leases, Codification Topic 842
Leases, Codification Topic 842 | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases | NOTE 6. LEASES In 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 sheets 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 eleven years. As of June 30, 2020, total operating lease ROU assets were $493.7 million, current and long-term operating lease liabilities were approximately $95.5 million and $344.4 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: Year ended June 30, 2020 Operating lease cost $ 163.7 Short-term lease cost 6.1 Variable lease cost 6.7 Total operating lease cost $ 176.5 Information related to our operating lease ROU assets and operating lease liabilities was as follows: Year ended June 30, 2020 Cash paid for operating lease liabilities $ 224.7 Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 160.4 Weighted-average remaining lease term (in years) 6 Weighted-average discount rate 2.3 % As of June 30, 2020, maturities of operating lease liabilities are as follows: Twelve months ending June 30, 2021 $ 105.6 Twelve months ending June 30, 2022 90.8 Twelve months ending June 30, 2023 78.0 Twelve months ending June 30, 2024 57.9 Twelve months ending June 30, 2025 42.6 Thereafter 96.7 Total undiscounted lease obligations 471.6 Less: Imputed interest (31.7) Net lease obligations $ 439.9 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16. SUBSEQUENT EVENTS On July 15, 2020, the Company gave notice to the current holders of its intention to redeem the $1.0 billion 2.25% Senior Notes due September 15, 2020 on the call date of August 15, 2020, discussed in Note 9. There are no other subsequent events for disclosure. |
Valuation and Qualiying Account
Valuation and Qualiying Accounts Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (In thousands) Column A Column B Column C Column D Column E Additions (1) (2) Balance at beginning of period Charged to costs and expenses Charged to other accounts (A) Deductions Balance at end of period Year ended June 30, 2020: Allowance for doubtful accounts: Current $ 54,850 $ 65,069 $ (4,536) $ (22,911) (B) $ 92,472 Long-term $ 505 $ — $ 44 $ — (B) $ 549 Deferred tax valuation allowance $ 31,627 $ (18,953) $ (204) $ (479) $ 11,992 Year ended June 30, 2019: Allowance for doubtful accounts: Current $ 51,342 $ 28,177 $ 5,165 $ (29,834) (B) $ 54,850 Long-term $ 510 $ — $ (5) $ — (B) $ 505 Deferred tax valuation allowance $ 46,006 $ 7,171 $ (20,685) $ (865) $ 31,627 Year ended June 30, 2018: Allowance for doubtful accounts: Current $ 49,561 $ 21,443 $ 5,546 $ (25,208) (B) $ 51,342 Long-term $ 803 $ — $ (293) $ — (B) $ 510 Deferred tax valuation allowance $ 9,406 $ 38,937 $ (325) $ (2,013) $ 46,006 (A) Includes amounts related to foreign exchange fluctuation. (B) Doubtful accounts written off, less recoveries on accounts previously written off. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | A. Basis of Preparation. 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”). Intercompany balances and transactions have been eliminated in consolidation. 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 4, “Corporate Investments and Funds Held for Clients.” 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 fiscal 2020, 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 fiscal 2019 and fiscal 2018 have 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: Year 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 Year Ended June 30, 2018 As reported Revision As revised PEO revenues $ 3,877.8 (53.5) $ 3,824.3 TOTAL REVENUES 13,327.7 (53.5) 13,274.2 Operating expenses 6,901.0 (53.5) 6,847.5 Total Expenses 10,873.0 (53.5) 10,819.5 EARNINGS BEFORE INCOME TAXES 2,282.6 — 2,282.6 Provision for income taxes 397.7 — 397.7 NET EARNINGS $ 1,884.9 — $ 1,884.9 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 Financial Data by Segment and Geographic Area disclosure. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenues, expenses, and other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's presentation. |
Description of Business | B. Description of Business. The Company is a provider of cloud-based Human Capital Management (“HCM”) solutions. The Company classifies its operations into the following two reportable segments: Employer Services and Professional Employer Organization (“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. |
Revenue Recognition | C. Revenue Recognition. Revenues are primarily attributable to fees for providing services ( e.g., Employer Services' payroll processing fees), investment income on payroll funds, payroll tax filing funds, other Employer Services' client-related funds, and fees charged to implement clients on the Company's solutions. The Company enters into agreements for a fixed fee per transaction ( e.g., number of payees or number of payrolls processed). The Company enters into service agreements with clients that include anywhere from one service to a full suite of services. The Company’s agreements vary in duration having a legally enforceable term of 30 days to 5 years. The performance obligations in the agreements are generally combined into one performance obligation, as they are considered a series of distinct services, and are satisfied over time because the client simultaneously receives and consumes the benefits provided as the Company performs the services. The Company uses the output method based on a fixed fee per employee serviced to recognize revenue, as the value to the client of the goods or services transferred to date (e.g. number of payees or number of payrolls processed) appropriately depicts our performance towards complete satisfaction of the performance obligation. The fees are typically billed in the period in which services are performed. PEO, a component of the HR Outsourcing (“HRO”) strategic pillar, provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers’ compensation insurance, and administering state unemployment insurance, among other human resources functions. 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 zero-margin 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 does retain risk and 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. We recognize client fund interest income 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. Set up fees received from certain clients to implement the Company's solutions are considered a material right. Therefore, the Company defers revenue associated with these set up fees and records them over the period in which such clients are expected to benefit from the material right, which is approximately five to seven years. Collection of consideration the Company expects to receive typically occurs within 30 to 60 days of billing. We assess the collectability of revenues based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history and their intention to pay the consideration. D. Deferred Costs. Incremental Costs of Obtaining a Contract Incremental costs of obtaining a contract (e.g., sales commissions) that are expected to be recovered are capitalized and amortized on a straight-line basis over a period of three to eight years, depending on the Company's business unit. Incremental costs of obtaining a contract include only those costs the Company incurs to obtain a contract that it would not have incurred if the contract had not been obtained. These costs are included in selling, general and administrative expenses. Costs to fulfill a Contract The Company capitalizes costs incurred to fulfill its contracts that i) relate directly to the contract ii) are expected to generate resources that will be used to satisfy the Company's performance obligations under the contract and iii) are expected to be recovered through revenue generated under the contract. Costs incurred to implement clients on our solutions (e.g. direct labor) are capitalized and amortized on a straight-line basis over the expected client relationship period if the Company expects to recover those costs. The expected client relationship period ranges from three to eight years. These costs are included in operating expenses. The Company has estimated the amortization periods for the deferred costs by using its historical retention by business units to estimate the pattern during which the service transfers. |
Cash and Cash Equivalents, Policy | E. Cash and Cash Equivalents. Highly liquid investment securities with a maturity of ninety days or less at the time of purchase are considered cash equivalents. The fair value of our cash and cash equivalents approximates carrying value. |
Corporate Investments and Funds held for Clients | F. Corporate Investments and Funds Held for Clients. All of the Company's marketable securities are considered to be “available-for-sale” and, accordingly, are carried on the Consolidated Balance Sheets at fair value. Unrealized gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) on the Consolidated Balance Sheets until realized. Realized gains and losses from the sale of available-for-sale securities are determined on an aggregate approach basis and are included in other (income)/expense, net on the Statements of Consolidated Earnings. If the fair value of an available-for-sale debt security is below its amortized cost, the Company assesses whether it intends to sell the security or if it is more likely than not the Company will be required to sell the security before recovery. If either of those two conditions is met, the Company would recognize a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security or it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in accumulated other comprehensive income (loss). |
Fair Value of Financial Instruments, Policy | G. Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date and is based upon the Company’s principal, or most advantageous, market for a specific asset or liability. U.S. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1 Fair value is determined based upon quoted prices for identical assets or liabilities that are traded in active markets. Level 2 Fair value is determined based upon inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: · quoted prices for similar assets or liabilities in active markets; · quoted prices for identical or similar assets or liabilities in markets that are not active; · inputs other than quoted prices that are observable for the asset or liability; or · inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Fair value is determined based upon inputs that are unobservable and reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based upon the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company's corporate investments and funds held for clients (see Note 4) are measured at fair value on a recurring basis as described below. Over 99% of the Company's available-for-sale securities included in Level 2 are valued based on prices obtained from an independent pricing service. To determine the fair value of the Company's Level 2 investments, the independent pricing service uses pricing models for each asset class that are consistent with what other market participants would use, including the market approach. Inputs and assumptions to the pricing model of the independent pricing service are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market-related data. Since many fixed income securities do not trade on a daily basis, the independent pricing service applies available information, as applicable, through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. For the purposes of valuing the Company’s asset-backed securities and mortgage-backed securities that are included within Other securities in Note 4, the independent pricing service includes additional inputs to the model such as monthly payment information, new issue data, and collateral performance. For the purposes of valuing the Company’s Municipal bonds, the independent pricing service includes Municipal Market Data benchmark yield curves as additional inputs to the model. While the Company is not provided access to the proprietary models of the third party pricing service, each quarterly reporting period, the Company reviews the inputs utilized by the independent pricing service and compares the valuations received from the independent pricing service to valuations from at least one other observable source for reasonableness. The Company has not adjusted the prices obtained from the independent pricing service and the Company believes the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). The Company has no available-for-sale securities included in Level 1 and Level 3. In fiscal 2016, the Company issued fixed-rate notes with 5-year and 10-year maturities for an aggregate principal amount of $2.0 billion (collectively the "Notes"). The fair value of the Notes are estimated in Note 9 utilizing a variety of inputs obtained from an independent pricing service, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. The Company reviews the values generated by the independent pricing service for reasonableness by comparing the valuations received from the independent pricing service to valuations from at least one other observable source. The Company has not adjusted the prices obtained from the independent pricing service. In fiscal 2020, the Company entered into a series of treasury rate lock transactions to hedge its exposure to changes in interest rates. The treasury rate lock derivatives are classified as Level 2 in the fair value hierarchy as their value is determined using observable inputs such as forward treasury rates. See Note 9 for additional details. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy. In certain instances, the inputs used to measure fair value may meet the definition of more than one level of the fair value hierarchy. The significant input with the lowest level priority is used to determine the applicable level in the fair value hierarchy. |
Property, Plant and Equipment | H. Property, Plant and Equipment. Property, plant and equipment is stated at cost less accumulated depreciation on the Consolidated Balance Sheets. Depreciation is recognized over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. The estimated useful lives of assets are primarily as follows: Data processing equipment 5 to 10 years Buildings 20 to 40 years Furniture and fixtures 4 to 7 years . |
Goodwill and Other Intangible Assets | . Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is tested annually for impairment or more frequently when an event or circumstance indicates that goodwill might be impaired.The Company’s annual goodwill impairment assessment as of June 30, 2020 was performed for all reporting units using a quantitative approach by comparing the fair value of each reporting unit to its carrying value. We estimated the fair value of each reporting unit using, as appropriate, the income approach, which is derived using the present value of future cash flows discounted at a risk-adjusted weighted-average cost of capital, and the market approach, which is based upon using market multiples of companies in similar lines of business. Significant assumptions used in determining the fair value of our reporting units include projected revenue growth rates, profitability projections, working capital assumptions, the weighted average cost of capital, the determination of appropriate market comparison companies, and terminal growth rates. Several of these assumptions including projected revenue growth rates and profitability projections are dependent on our ability to upgrade, enhance, and expand our technology and services to meet client needs and preferences. As such, the determination of fair value requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margins. Based upon the quantitative assessment, the Company has concluded that goodwill is not impaired. |
Impairment of Long-Lived Assets | . Impairment of Long-Lived Assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Foreign Currency Translations | . Foreign Currency. The net assets of the Company's foreign subsidiaries are translated into U.S. dollars based on exchange rates in effect for each period, and revenues and expenses are translated at average exchange rates in the periods. Gains or losses from balance sheet translation are included in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. Currency transaction gains or losses, which are included in the results of operations, are not significant for all periods presented. |
Derivative Financial Instruments | . Foreign Currency Risk Management Programs and Derivative Financial Instruments. The Company transacts business in various foreign jurisdictions and is therefore exposed to market risk from changes in foreign currency exchange rates that could impact its consolidated results of operations, financial position, or cash flows. The Company manages its exposure to these market risks through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The Company does not use derivative financial instruments for trading purposes.In fiscal 2020, the Company entered into a series of treasury rate lock transactions to hedge its exposure to changes in interest rates. See Note 9 for additional details. |
Earnings Per Share (EPS) | . Earnings per Share (“EPS”). The Company computes EPS in accordance with ASC 260. The calculations of basic and diluted EPS are as follows: Years ended June 30, Basic Effect of Employee Stock Option Shares Effect of Diluted 2020 Net earnings $ 2,466.5 $ 2,466.5 Weighted average shares (in millions) 430.8 0.9 1.0 432.7 EPS $ 5.73 $ 5.70 2019 Net earnings $ 2,292.8 $ 2,292.8 Weighted average shares (in millions) 435.0 1.0 1.6 437.6 EPS $ 5.27 $ 5.24 2018 Net earnings $ 1,884.9 $ 1,884.9 Weighted average shares (in millions) 440.6 1.1 1.6 443.3 EPS $ 4.28 $ 4.25 |
Stock-Based Compensation | . Stock-Based Compensation. The Company recognizes stock-based compensation expense in net earnings based on the fair value of the award on the date of the grant, and in the case of international units settled in cash, adjusts this fair value based on changes in the Company's stock price during the vesting peri od. Restricted stock units and restricted stock awards are valued based on the closing price of the Company's common stock on the date of the grant and, in the case of performance based restricted stock units and restricted stock, are adjusted for changes to probabilities of achieving performance targets. International restricted stock units are settled in cash and are marked-to-market based on changes in the Company's stock price. S ee Note 10 for additional information on the Company's stock-based compensation programs. |
Internal Use Software | . Internal Use Software. Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized generally over a three to five-year period on a straight-line basis. Software developed as part of the Company's next-generation platforms are depreciated over ten years. The Company begins to capitalize costs incurred for computer software developed for internal use when the preliminary development efforts are successfully completed, management has authorized and committed to funding the project, and it is probable that the project will be completed and the software will be used as intended. Capitalization ceases when a computer software project is substantially complete and ready for its intended use. The Company's policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. The Company also expenses internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities. Fees related to cloud-based subscriptions for which the Company has the right to take possession of the software at any time during the hosting period (without significant penalty) and can run the software on internal hardware, or through contract with a third party vendor to host the software, is recognized as an intangible asset and capitalized following the Internal Use Software guidance under ASC 350-40. Subscriptions where the Company accesses the software through the cloud but cannot take |
Acquisition | . Acquisitions. Assets acquired and liabilities assumed in business combinations are recorded on the Company’s Consolidated Balance Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the Company are included in the Statements of Consolidated Earnings since their respective dates of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed is allocated to goodwill. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analysis. Accordingly, the measurement period for such purchase price allocations will end when the information, or the facts and circumstances, becomes available, but will not exceed twelve months. |
Income Taxes | . Income Taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. Judgment is required in addressing the future tax consequences of events that have been recognized in our Consolidated Financial Statements or tax returns (e.g., realization of deferred tax assets, changes in tax laws or interpretations thereof). The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service (“IRS”) and other tax authorities. A change in the assessment of the outcomes of such matters could materially impact our Consolidated Financial Statements. There is a financial statement recognition threshold and measurement attribute for tax positions taken or expected to be taken in a tax return. Specifically, the likelihood of an entity's tax benefits being sustained must be “more likely than not,” assuming that these positions will be examined by taxing authorities with full knowledge of all relevant information prior to recording the related tax benefit in the financial statements. If a tax position drops below the “more likely than not” standard, the benefit can no longer be recognized. Assumptions, judgment, and the use of estimates are required in determining if the “more likely than not” standard has been met when developing the provision for income taxes. As of June 30, 2020 and 2019, the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $62.3 million and $54.2 million, respectively. If certain pending tax matters settle within the next twelve months, the total amount of unrecognized tax benefits may increase or decrease for all open tax years and jurisdictions. See Note 11 for additional details. |
Workers' Compensation Costs | . Workers' Compensation Costs. The Company employs a third-party actuary to assist in determining the estimated claim liability related to workers' compensation and employer's liability coverage for PEO Services worksite employees. In estimating ultimate loss rates, we utilize historical loss experience, exposure data, and actuarial judgment, together with a range of inputs which are primarily based upon the worksite employee's job responsibilities, their location, the historical frequency and severity of workers' compensation claims, and an estimate of future cost trends. For each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers' compensation claims cost estimates. PEO Services has secured a workers’ compensation and employer’s liability insurance policy that has a $1 million per occurrence retention and, in fiscal years 2012 and prior, aggregate stop loss insurance that covers any aggregate losses within the $1 million retention that collectively exceed a certain level, from an admitted and licensed insurance company of AIG. The Company has obtained approximately $242 million of irrevocable standby letters of credit in favor of licensed insurance companies of AIG to secure TotalSource workers’ compensation obligations if ADP were to fail to reimburse AIG for workers’ compensation payments. The Company had no drawdowns during June 30, 2020 and 2019 under the letters of credit. Beginning in fiscal year 2013, ADP Indemnity paid premiums to enter into reinsurance arrangements with ACE American Insurance Company, a wholly-owned subsidiary of Chubb Limited ("Chubb"), to cover substantially all losses incurred by ADP Indemnity during these policy years. Each of these reinsurance arrangements limit our overall exposure incurred up to a certain limit. The Company believes the likelihood of ultimate losses exceeding this limit is remote. ADP Indemnity paid a premium of $240 million in July 2020 to enter into a reinsurance arrangement to cover substantially all losses for the fiscal 2021 policy year on terms substantially similar to the fiscal 2020 policy. |
Recently Issued Accounting Pronouncements | Recently Issued 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 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 6 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 2020-04 Reference Rate Reform This update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate (LIBOR) reform on financial reporting. March 12, 2020 The Company is assessing the effects of the Reference Rate Reform. The Company has not yet determined the impact of this ASU on its consolidated results of operations, financial condition, or cash flows. 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 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 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 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. In November 2019, the FASB issued Accounting Standard Update 2019-11 Codification Improvements to Topic 326, Financial-Credit Losses which provides clarification and eliminates inconsistencies to amendments included in Update 2016-13. July 1, 2020 Upon adoption of the CECL standard, in fiscal 2021, the Company intends to book an immaterial cumulative-effect adjustment to retained earnings. The most notable impact relates to the newly implemented processes around the assessment of the adequacy of our allowance for doubtful accounts on accounts receivable. The adoption of this guidance will not have a material impact on the Company's consolidated results of operations, financial condition, or cash flows. |
Lessee, Leases | I. Leases. 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. Lease ROU assets are amortized over the life of the lease and tested for impairment in the same manner as long-lived assets as described below. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||
Estimated Useful Lives | Data processing equipment 5 to 10 years Buildings 20 to 40 years Furniture and fixtures 4 to 7 years | |
Schedule of Earnings Per Share, Basic and Diluted | Years ended June 30, Basic Effect of Employee Stock Option Shares Effect of Diluted 2020 Net earnings $ 2,466.5 $ 2,466.5 Weighted average shares (in millions) 430.8 0.9 1.0 432.7 EPS $ 5.73 $ 5.70 2019 Net earnings $ 2,292.8 $ 2,292.8 Weighted average shares (in millions) 435.0 1.0 1.6 437.6 EPS $ 5.27 $ 5.24 2018 Net earnings $ 1,884.9 $ 1,884.9 Weighted average shares (in millions) 440.6 1.1 1.6 443.3 EPS $ 4.28 $ 4.25 | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | 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 2020-04 Reference Rate Reform This update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate (LIBOR) reform on financial reporting. March 12, 2020 The Company is assessing the effects of the Reference Rate Reform. The Company has not yet determined the impact of this ASU on its consolidated results of operations, financial condition, or cash flows. 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 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 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 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. In November 2019, the FASB issued Accounting Standard Update 2019-11 Codification Improvements to Topic 326, Financial-Credit Losses which provides clarification and eliminates inconsistencies to amendments included in Update 2016-13. July 1, 2020 Upon adoption of the CECL standard, in fiscal 2021, the Company intends to book an immaterial cumulative-effect adjustment to retained earnings. The most notable impact relates to the newly implemented processes around the assessment of the adequacy of our allowance for doubtful accounts on accounts receivable. The adoption of this guidance will not have a material impact on the Company's consolidated results of operations, financial condition, or cash flows. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Revenues [Abstract] | |
Disaggregation of Revenue [Table Text Block] | 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: Years Ended June 30, Types of Revenues 2020 2019 2018 HCM $ 6,540.9 $ 6,441.8 $ 6,204.9 HRO, excluding PEO zero-margin benefits pass-throughs 2,543.2 2,444.4 2,261.9 PEO zero-margin benefits pass-throughs 2,907.7 2,647.5 2,409.6 Global 2,052.8 2,014.6 1,931.3 Interest on funds held for clients 545.2 561.9 466.5 Total Revenues $ 14,589.8 $ 14,110.2 $ 13,274.2 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2020: Types of Revenues Employer Services PEO Other Total HCM $ 6,546.4 $ — $ (5.5) $ 6,540.9 HRO, excluding PEO zero-margin benefits pass-throughs 947.2 1,598.8 (2.8) 2,543.2 PEO zero-margin benefits pass-throughs — 2,907.7 — 2,907.7 Global 2,052.8 — — 2,052.8 Interest on funds held for clients 540.2 5.0 — 545.2 Total Segment Revenues $ 10,086.6 $ 4,511.5 $ (8.3) $ 14,589.8 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2019: Types of Revenues Employer Services PEO Other Total HCM $ 6,447.5 $ — $ (5.7) $ 6,441.8 HRO, excluding PEO zero-margin benefits pass-throughs 924.0 1,525.0 (4.6) 2,444.4 PEO zero-margin benefits pass-throughs — 2,647.5 — 2,647.5 Global 2,014.6 — — 2,014.6 Interest on funds held for clients 556.7 5.2 — 561.9 Total Segment Revenues $ 9,942.8 $ 4,177.7 $ (10.3) $ 14,110.2 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2018: Types of Revenues Employer Services PEO Other Total HCM $ 6,210.2 $ — $ (5.3) $ 6,204.9 HRO, excluding PEO zero-margin benefits pass-throughs 851.3 1,414.7 (4.1) 2,261.9 PEO zero-margin benefits pass-throughs — 2,409.6 — 2,409.6 Global 1,931.3 — — 1,931.3 Interest on funds held for clients 462.0 4.5 — 466.5 Total Segment Revenues $ 9,454.8 $ 3,828.8 $ (9.4) $ 13,274.2 |
Contract with Customer, Asset and Liability [Table Text Block] | Changes in deferred revenue related to set up fees for the twelve months ended June 30, 2020 were as follows: Contract Liability Contract liability, July 1, 2019 $ 563.4 Recognition of revenue included in beginning of year contract liability (168.5) Contract liability, net of revenue recognized on contracts during the period 134.2 Currency adjustments (6.4) Contract liability, June 30, 2020 $ 522.7 |
Capitalized Contract Cost [Table Text Block] | Deferred costs Deferred costs are periodically reviewed for impairment. There were no impairment losses incurred during the period. The balance is as follows: June 30, 2020 2019 Deferred costs to obtain a contract $ 977.8 $ 992.3 Deferred costs to fulfill a contract 1,423.8 1,436.2 Total deferred contract costs (1) $ 2,401.6 $ 2,428.5 |
Other Expense_(Income), Net (Ta
Other Expense/(Income), Net (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Other Income, Net [Abstract] | |
Other expense/(income), net | Other (income)/expense, net consists of the following: Years ended June 30, 2020 2019 2018 Interest income on corporate funds $ (84.5) $ (97.6) $ (83.5) Realized (gains) / losses on available-for-sale securities, net (12.9) 0.9 2.5 Impairment of assets 29.9 12.1 — Gain on sale of assets (5.8) (4.1) (0.7) Gain on sale of investment (0.2) (15.7) — Non-service components of pension (income)/expense, net (see Note 10) (74.5) (6.7) 253.8 Other (income)/expense, net $ (148.0) $ (111.1) $ 172.1 |
Corporate Investments And Fun_2
Corporate Investments And Funds Held For Clients (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2020 | |
Corporate Investments And Funds Held For Clients [Abstract] | ||
Available-for-sale Securities | Corporate investments and funds held for clients at June 30, 2020 and 2019 were as follows: June 30, 2020 Amortized Gross Gross Fair Value (A) Type of issue: Money market securities, cash and other cash equivalents $ 7,053.6 $ — $ — $ 7,053.6 Available-for-sale securities: Corporate bonds 9,188.7 473.4 — 9,662.1 Asset-backed securities 3,274.6 96.0 (0.5) 3,370.1 U.S. Treasury securities 3,580.6 120.8 — 3,701.4 U.S. government agency securities 1,128.2 35.6 — 1,163.8 Canadian government obligations and Canadian government agency obligations 1,018.7 23.1 — 1,041.8 Commercial Mortgage-Backed Securities 814.3 53.9 — 868.2 Canadian provincial bonds 676.6 33.6 — 710.2 Other securities 1,018.1 41.1 (0.2) 1,059.0 Total available-for-sale securities 20,699.8 877.5 (0.7) 21,576.6 Total corporate investments and funds held for clients $ 27,753.4 $ 877.5 $ (0.7) $ 28,630.2 (A) Included within available-for-sale securities are corporate investments with fair values of $13.6 million and funds held for clients with fair values of $21,563.0 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy. June 30, 2019 Amortized Gross Gross Fair 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 U.S. 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 | |
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 June 30, 2020, are as follows: June 30, 2020 Securities in unrealized loss position less than Securities in unrealized loss position greater than 12 months Total Gross Unrealized Fair Market Gross Unrealized Fair Market Gross Fair Corporate bonds $ — $ — $ — $ — $ — $ — Asset-backed securities (0.5) 43.9 — — (0.5) 43.9 U.S. Treasury securities — 2.0 — — — 2.0 U.S. government agency securities — — — — — — Canadian government obligations and Canadian government agency obligations — — — — — — Commercial Mortgage-Backed Securities — — — 1.5 — 1.5 Canadian provincial bonds — — — — — — Other securities (0.2) 17.1 — — (0.2) 17.1 $ (0.7) $ 63.0 $ — $ 1.5 $ (0.7) $ 64.5 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 Securities in unrealized loss position greater than 12 months Total Gross Unrealized Fair Market Gross Unrealized Fair Market Gross Fair 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: June 30, 2020 2019 Corporate investments: Cash and cash equivalents $ 1,908.5 $ 1,949.2 Short-term marketable securities — 10.5 Long-term marketable securities (a) 13.6 261.4 Total corporate investments $ 1,922.1 $ 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: June 30, 2020 2019 Funds held for clients: Restricted cash and cash equivalents held to satisfy client funds obligations $ 5,145.1 $ 4,847.0 Restricted short-term marketable securities held to satisfy client funds obligations 5,541.2 5,013.9 Restricted long-term marketable securities held to satisfy client funds obligations 16,021.8 19,573.3 Total funds held for clients $ 26,708.1 $ 29,434.2 | |
Expected Maturities Of Available-For-Sale Securities | Expected maturities of available-for-sale securities at June 30, 2020 are as follows: One year or less $ 5,541.2 One year to two years 3,962.2 Two years to three years 4,761.5 Three years to four years 3,005.6 After four years 4,306.1 Total available-for-sale securities $ 21,576.6 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment Property, Plant, and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment at cost and accumulated depreciation at June 30, 2020 and 2019 are as follows: June 30, 2020 2019 Property, plant and equipment: Land and buildings $ 737.2 $ 781.2 Data processing equipment 847.9 749.0 Furniture, leaseholds and other 643.6 651.6 2,228.7 2,181.8 Less: accumulated depreciation (1,524.8) (1,417.6) Property, plant and equipment, net $ 703.9 $ 764.2 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In Goodwill | Changes in goodwill for the fiscal years ended June 30, 2020 and 2019 are as follows: Employer PEO Total Balance at June 30, 2018 $ 2,238.7 $ 4.8 $ 2,243.5 Additions and other adjustments 94.3 — 94.3 Currency translation adjustments (14.8) — (14.8) Balance at June 30, 2019 $ 2,318.2 $ 4.8 $ 2,323.0 Additions and other adjustments (2.5) — (2.5) Currency translation adjustments (11.1) — (11.1) Balance at June 30, 2020 $ 2,304.6 $ 4.8 $ 2,309.4 |
Components Of Finite-Lived Intangible Assets | Components of intangible assets, net, are as follows: June 30, 2020 2019 Intangible assets: Software and software licenses $ 2,719.1 $ 2,519.3 Customer contracts and lists 1,021.2 860.7 Other intangibles 239.2 237.9 3,979.5 3,617.9 Less accumulated amortization: Software and software licenses (1,912.0) (1,762.3) Customer contracts and lists (628.3) (566.4) Other intangibles (223.4) (217.7) (2,763.7) (2,546.4) Intangible assets, net $ 1,215.8 $ 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 Twelve months ending June 30, 2021 $ 285.3 Twelve months ending June 30, 2022 $ 243.7 Twelve months ending June 30, 2023 $ 203.8 Twelve months ending June 30, 2024 $ 161.5 Twelve months ending June 30, 2025 $ 108.7 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The principal amounts and associated effective interest rates of the Notes and other debt as of June 30, 2020 and 2019 are as follows: Debt instrument Effective Interest Rate June 30, 2020 June 30, 2019 Fixed-rate 2.250% 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 8.4 10.9 2,008.4 2,010.9 Less: current portion (1,001.8) (2.5) Less: unamortized discount and debt issuance costs (3.8) (6.2) Total long-term debt $ 1,002.8 $ 2,002.2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components Of Stock-Based Compensation Expense | The following table represents stock-based compensation expense and related income tax benefits in each of fiscal 2020, 2019, and 2018, respectively: Years ended June 30, 2020 2019 2018 Operating expenses $ 13.7 $ 16.9 $ 22.9 Selling, general and administrative expenses 99.1 131.2 128.7 System development and programming costs 18.0 19.2 23.8 Total pretax stock-based compensation expense $ 130.8 $ 167.3 $ 175.4 Income tax benefit $ 32.2 $ 41.6 $ 44.1 |
Changes In Stock Options Outstanding | Stock Options: Number Weighted Options outstanding at July 1, 2019 3,608 $ 103 Options granted 1,015 $ 170 Options exercised (968) $ 86 Options forfeited/cancelled (145) $ 136 Options outstanding at June 30, 2020 3,510 $ 126 Options exercisable at June 30, 2020 1,273 $ 96 Shares available for future grants, end of year 24,853 Shares reserved for issuance under stock option plans, end of year 28,363 |
Time Based Restricted Shares and Units | Time-Based Restricted Stock and Time-Based Restricted Stock Units: Number of Shares Number of Units Restricted shares/units outstanding at July 1, 2019 1,272 290 Restricted shares/units granted 572 101 Restricted shares/units vested (856) (194) Restricted shares/units forfeited (83) (17) Restricted shares/units outstanding at June 30, 2020 905 180 |
Performance Based Restricted shares and units | Performance-Based Restricted Stock and Performance-Based Restricted Stock Units: Number of Shares Number of Units Restricted shares/units outstanding at July 1, 2019 250 867 Restricted shares/units granted 112 391 Restricted shares/units vested (171) (376) Restricted shares/units forfeited (12) (31) Restricted shares/units outstanding at June 30, 2020 179 851 |
Assumptions Used To Estimate Fair Value For Stock Options Granted | The fair value for stock options granted was estimated at the date of grant using the following assumptions: 2020 2019 2018 Risk-free interest rate 1.4 % 2.7 % 1.8 % Dividend yield 1.9 % 1.9 % 2.1 % Weighted average volatility factor 19.3 % 20.9 % 21.7 % Weighted average expected life (in years) 5.4 5.4 5.4 Weighted average fair value (in dollars) $ 24.40 $ 26.60 $ 17.50 |
Weighted average fair value of restricted stock granted | The weighted average fair values of shares granted were as follows: Year ended June 30, 2020 2019 2018 Performance-based restricted stock $ 169.84 $ 146.93 $ 107.43 Time-based restricted stock $ 167.16 $ 146.80 $ 108.10 |
Schedule of Net Funded Status | The Company's pension plans' funded status as of June 30, 2020 and 2019 is as follows: June 30, 2020 2019 Change in plan assets: Fair value of plan assets at beginning of year $ 1,910.5 $ 2,178.1 Actual return on plan assets 172.1 142.0 Employer contributions 9.8 10.0 Currency translation adjustments (3.5) (7.0) Benefits paid (100.1) (412.6) Fair value of plan assets at end of year $ 1,988.8 $ 1,910.5 Change in benefit obligation: Benefit obligation at beginning of year $ 1,951.2 $ 2,135.3 Service cost 59.7 59.8 Interest cost 61.8 78.6 Actuarial loss 210.7 95.8 Currency translation adjustments (3.6) (8.7) Plan changes 0.4 0.8 Curtailments and special termination benefits — 2.2 Benefits paid (100.1) (412.6) Projected benefit obligation at end of year $ 2,180.1 $ 1,951.2 Funded status - plan assets less benefit obligations $ (191.3) $ (40.7) |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized on the Consolidated Balance Sheets as of June 30, 2020 and 2019 consisted of: June 30, 2020 2019 Noncurrent assets $ 19.8 $ 108.0 Current liabilities (5.4) (5.9) Noncurrent liabilities (205.7) (142.8) Net amount recognized $ (191.3) $ (40.7) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The Company's pension plans with accumulated benefit obligations in excess of plan assets as of June 30, 2020 and 2019 had the following projected benefit obligation, accumulated benefit obligation, and fair value of plan assets: June 30, 2020 2019 Projected benefit obligation $ 2,046.5 $ 162.4 Accumulated benefit obligation $ 2,034.4 $ 149.9 Fair value of plan assets $ 1,835.4 $ 13.8 |
Components Of Net Pension Expense | The components of net pension expense were as follows: 2020 2019 2018 Service cost – benefits earned during the period $ 59.7 $ 59.8 $ 74.6 Interest cost on projected benefits 61.8 78.6 65.4 Expected return on plan assets (117.9) (131.8) (137.5) Net amortization and deferral 6.8 0.1 8.4 Special termination benefits and plan curtailments (22.0) 48.7 319.5 Net pension (income)/expense $ (11.6) $ 55.4 $ 330.4 |
Schedule of Assumptions Used | Assumptions used to determine the actuarial present value of benefit obligations were: Years ended June 30, 2020 2019 Discount rate 2.45 % 3.40 % Increase in compensation levels 4.00 % 4.00 % |
Defined Benefit Plan Assumptions Used Calculating Net Pension Expense | Assumptions used to determine the net pension expense generally were: Years ended June 30, 2020 2019 2018 Discount rate 3.40 % 4.10 % 3.70 % Expected long-term rate of return on assets 6.75 % 6.75 % 6.75 % Increase in compensation levels 4.00 % 4.00 % 4.00 % |
Schedule of Allocation of Plan Assets | The Company's pension plans' asset allocations at June 30, 2020 and 2019 by asset category were as follows: 2020 2019 Cash and cash equivalents 1 % 1 % Fixed income securities 44 % 44 % U.S. equity securities 17 % 17 % International equity securities 13 % 13 % Global equity securities 25 % 25 % 100 % 100 % |
Defined Benefit Plan Target Allocation Percentage | The target asset allocation ranges for the U.S. plan are generally as follows: U.S. fixed income securities 35% - 45% U.S. equity securities 14% - 24% International equity securities 11% - 21% Global equity securities 20% - 30% |
Fair Value, Measurement Inputs, Disclosure | The following table presents the investments of the pension plans measured at fair value at June 30, 2020: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 798.6 $ — $ 798.6 Government securities — 414.7 — 414.7 Mutual funds 7.3 274.8 — 282.1 Corporate and municipal bonds — 434.8 — 434.8 Mortgage-backed security bonds — 38.5 — 38.5 Total pension asset investments $ 7.3 $ 1,961.4 $ — $ 1,968.7 In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $20.1 million as of June 30, 2020, which have been classified as Level 1 in the fair value hierarchy. The following table presents the investments of the pension plans measured at fair value at June 30, 2019: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 1,046.6 $ — $ 1,046.6 U.S. government securities — 417.9 — 417.9 Mutual funds 6.5 — — 6.5 Corporate and municipal bonds — 394.3 — 394.3 Mortgage-backed security bonds — 30.2 — 30.2 Total pension asset investments $ 6.5 $ 1,889.0 $ — $ 1,895.5 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax From Continuing Operations Provision For Income Tax Components Disclosure | Earnings before income taxes shown below are based on the geographic location to which such earnings are attributable. Years ended June 30, 2020 2019 2018 Earnings before income taxes: United States $ 2,815.4 $ 2,584.6 $ 1,937.2 Foreign 367.2 421.0 345.4 $ 3,182.6 $ 3,005.6 $ 2,282.6 |
Schedule Of Components Of Provision (Benefit) For Income Taxes | The provision (benefit) for income taxes consists of the following components: Years ended June 30, 2020 2019 2018 Current: Federal $ 468.3 $ 464.3 $ 366.6 Foreign 119.5 129.1 105.5 State 102.3 110.1 77.6 Total current 690.1 703.5 549.7 Deferred: Federal 23.7 7.9 (193.0) Foreign (5.4) 12.8 26.1 State 7.7 (11.4) 14.9 Total deferred 26.0 9.3 (152.0) Total provision for income taxes $ 716.1 $ 712.8 $ 397.7 |
Reconciliation Between Federal Statutory Tax And Effective Tax Rate | A reconciliation between the Company's effective tax rate and the U.S. federal statutory rate is as follows: Years ended June 30, 2020 % 2019 % 2018 % Provision for taxes at U.S. statutory rate $ 668.4 21.0 $ 631.2 21.0 $ 640.5 28.1 Increase/(decrease) in provision from: State taxes, net of federal tax benefit 85.6 2.7 80.7 2.7 58.1 2.5 Valuation Allowance Release on Foreign tax credits (20.3) (0.6) — — — — U.S. tax on foreign income — — — — 12.0 0.5 Utilization of foreign tax credits — — — — (19.6) (0.9) Tax settlements — — — — (31.9) (1.4) Re-measurement of deferred tax balances — — — — (253.3) (11.1) Resolution of tax matters - Section 199 Qualified production activities and research tax credit refund claim — — — — (33.3) (1.5) Foreign rate differential 44.9 1.4 46.9 1.6 — — Excess tax benefit - Stock-based compensation (26.9) (0.8) (29.8) (1.0) (26.7) (1.2) Other (35.6) (1.2) (16.2) (0.6) 51.9 2.4 $ 716.1 22.5 $ 712.8 23.7 $ 397.7 17.4 |
Components Of Deferred Tax Assets And Liabilities | The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows: Years ended June 30, 2020 2019 Deferred tax assets: Accrued expenses not currently deductible $ 203.0 $ 228.9 Stock-based compensation expense 33.8 45.3 Foreign tax credits 20.1 25.1 Net operating losses 52.0 54.0 Retirement Benefits 46.0 5.6 Other 25.9 20.2 380.8 379.1 Less: valuation allowances (12.0) (31.6) Deferred tax assets, net $ 368.8 $ 347.5 Deferred tax liabilities: Deferred revenue $ 475.0 $ 475.9 Fixed and intangible assets 288.2 279.5 Prepaid expenses 82.3 86.2 Unrealized investment gains, net 187.9 63.0 Tax on unrepatriated earnings 22.2 31.6 Other 6.4 7.2 Deferred tax liabilities 1,062.0 943.4 Net deferred tax liabilities $ 693.2 $ 595.9 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2020 2019 2018 Unrecognized tax benefits at beginning of the year $ 54.2 $ 45.2 $ 74.6 Additions for tax positions 13.2 9.5 4.0 Additions for tax positions of prior periods 6.3 18.3 19.8 Reductions for tax positions of prior periods (4.3) (7.7) (40.5) Settlement with tax authorities (4.0) (10.3) (11.7) Expiration of the statute of limitations (2.8) (0.6) (1.0) Impact of foreign exchange rate fluctuations (0.3) (0.2) — Unrecognized tax benefit at end of year $ 62.3 $ 54.2 $ 45.2 |
Summary of Income Tax Examinations | Examinations in progress in which the Company has significant business operations are as follows: Taxing Jurisdiction Fiscal Years under Examination U.S. (IRS) 2019 - 2020 Wisconsin 2015 - 2018 Michigan 2012 - 2014, 2015 - 2018 New York State 2016 - 2018 New York City 2016 - 2017 Florida 2016 - 2018 India 2003 - 2007, 2008 - 2010, 2013 - 2016 |
Reclassification out of Accum_2
Reclassification out of Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | Changes in Accumulated Other Comprehensive (Loss)/Income (“AOCI”) by component are as follows: Currency Translation Adjustment Net Gains on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss) /Income Balance at June 30, 2017 $ (234.8) $ 68.3 $ — $ (216.7) $ (383.2) Other comprehensive income/(loss) before reclassification adjustments 7.8 (460.7) — 87.0 (365.9) Tax effect — 123.4 — (18.7) 104.7 Reclassification adjustments to net earnings — 2.7 (A) — 9.3 (B) 12.0 Tax effect — (0.6) — (4.5) (5.1) Reclassification to retained earnings (C) — (7.1) (C) — (35.2) (C) (42.3) Balance at June 30, 2018 $ (227.0) $ (274.0) $ — $ (178.8) $ (679.8) Other comprehensive income/(loss) before reclassification adjustments (42.2) 642.4 — (84.7) 515.5 Tax effect — (144.4) — 20.0 (124.4) Reclassification adjustments to net earnings — 0.9 (A) — 40.3 (B) 41.2 Tax effect — (0.3) — (9.5) (9.8) Balance at June 30, 2019 $ (269.2) $ 224.6 $ — $ (212.7) $ (257.3) Other comprehensive income/(loss) before reclassification adjustments (53.0) 602.2 (40.3) (160.8) 348.1 Tax effect — (136.4) 10.0 39.5 (86.9) Reclassification adjustments to net earnings — (12.9) (A) — (11.8) (B) (24.7) Tax effect — 2.9 — 3.1 6.0 Balance at June 30, 2020 $ (322.2) $ 680.4 $ (30.3) $ (342.7) $ (14.8) (A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension (income)/expense (see Note 10). In fiscal 2020, reclassification includes $17.0 million of prior service credits which were recognized as a component of net pension (income)/expense as a result of the US pension plan freeze. (C) During fiscal 2018, the Company adopted ASU 2018-02 and reclassified stranded tax effects attributable to the Act from AOCI to retained earnings. The fiscal 2018 Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive (loss)/income into retained earnings. |
Financial Data By Segment (Tabl
Financial Data By Segment (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Employer Services PEO Services Other Total Year ended June 30, 2020 Revenues $ 10,086.6 $ 4,511.5 $ (8.3) $ 14,589.8 Earnings before income taxes 3,063.0 605.5 (485.9) 3,182.6 Assets 37,071.7 1,443.2 650.6 39,165.5 Capital expenditures 115.7 — 52.6 168.3 Depreciation and amortization 388.0 3.4 88.6 480.0 Year ended June 30, 2019 Revenues $ 9,942.8 $ 4,177.7 $ (10.3) $ 14,110.2 Earnings before income taxes 2,960.9 616.2 (571.5) 3,005.6 Assets 34,606.3 1,584.1 5,697.3 41,887.7 Capital expenditures 98.2 — 64.5 162.7 Depreciation and amortization 321.0 3.5 84.5 409.0 Year ended June 30, 2018 Revenues $ 9,454.8 $ 3,828.8 $ (9.4) $ 13,274.2 Earnings before income taxes 2,601.1 541.6 (860.1) 2,282.6 Assets 31,984.2 1,329.8 5,535.1 38,849.1 Capital expenditures 113.9 — 78.0 191.9 Depreciation and amortization 291.9 3.0 82.7 377.6 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | United States Europe Canada Other Total Year ended June 30, 2020 Revenues $ 12,740.1 $ 1,236.3 $ 329.8 $ 283.6 $ 14,589.8 Assets $ 33,891.0 $ 2,162.7 $ 2,435.3 $ 676.5 $ 39,165.5 Year ended June 30, 2019 Revenues $ 12,262.6 $ 1,236.8 $ 326.6 $ 284.2 $ 14,110.2 Assets $ 36,508.3 $ 2,807.9 $ 1,950.5 $ 621.0 $ 41,887.7 Year ended June 30, 2018 Revenues $ 11,439.8 $ 1,242.2 $ 321.6 $ 270.6 $ 13,274.2 Assets $ 33,586.6 $ 2,608.6 $ 2,073.1 $ 580.8 $ 38,849.1 |
Quarterly Financial Results (_2
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Summarized Quarterly Results of Continuing Operations [Abstract] | |
Schedule of Quarterly Financial Information | Year ended June 30, 2020 First Second Quarter Third Fourth Revenues $ 3,495.7 $ 3,669.5 $ 4,047.8 $ 3,376.8 Costs of revenues $ 2,044.8 $ 2,094.1 $ 2,239.1 $ 2,067.2 Gross profit $ 1,450.9 $ 1,575.4 $ 1,808.7 $ 1,309.6 Earnings before income taxes $ 739.1 $ 835.5 $ 1,076.7 $ 531.3 Net earnings $ 582.4 $ 651.6 $ 820.9 $ 411.5 Basic per common share amounts: Basic earnings per share $ 1.35 $ 1.51 $ 1.91 $ 0.96 Diluted per common share amounts: Diluted earnings per share $ 1.34 $ 1.50 $ 1.90 $ 0.96 Year ended June 30, 2019 First Second Quarter Third Fourth Revenues (A) $ 3,310.3 $ 3,492.4 $ 3,828.2 $ 3,479.3 Costs of revenues (A) $ 1,927.6 $ 2,000.2 $ 2,092.6 $ 2,001.1 Gross profit $ 1,382.7 $ 1,492.2 $ 1,735.6 $ 1,478.2 Earnings before income taxes $ 646.8 $ 741.0 $ 984.5 $ 633.3 Net earnings $ 505.4 $ 558.2 $ 753.7 $ 475.5 Basic per common share amounts: Basic earnings per share $ 1.16 $ 1.28 $ 1.74 $ 1.10 Diluted per common share amounts: Diluted earnings per share $ 1.15 $ 1.27 $ 1.73 $ 1.09 |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | The components of operating lease expense were as follows: Year ended June 30, 2020 Operating lease cost $ 163.7 Short-term lease cost 6.1 Variable lease cost 6.7 Total operating lease cost $ 176.5 |
Operating lease ROU assets and liabilities | Information related to our operating lease ROU assets and operating lease liabilities was as follows: Year ended June 30, 2020 Cash paid for operating lease liabilities $ 224.7 Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 160.4 Weighted-average remaining lease term (in years) 6 Weighted-average discount rate 2.3 % |
Lessee, Operating Lease, Liability, Maturity | As of June 30, 2020, maturities of operating lease liabilities are as follows: Twelve months ending June 30, 2021 $ 105.6 Twelve months ending June 30, 2022 90.8 Twelve months ending June 30, 2023 78.0 Twelve months ending June 30, 2024 57.9 Twelve months ending June 30, 2025 42.6 Thereafter 96.7 Total undiscounted lease obligations 471.6 Less: Imputed interest (31.7) Net lease obligations $ 439.9 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 01, 2019 | Jun. 30, 2017 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||||
Net Income (Loss) Attributable to Parent | $ 411,500,000 | $ 820,900,000 | $ 651,600,000 | $ 582,400,000 | $ 475,500,000 | $ 753,700,000 | $ 558,200,000 | $ 505,400,000 | $ 2,466,500,000 | $ 2,292,800,000 | $ 1,884,900,000 | |||||||
Provision for income taxes | $ 716,100,000 | $ 712,800,000 | $ 397,700,000 | |||||||||||||||
Percent of Level Two Investment Pricing Inputs Provided by Independent Pricing Service | 99.00% | 99.00% | ||||||||||||||||
Basic weighted average shares outstanding (in shares) | 430.8 | 435 | 440.6 | |||||||||||||||
Effect of Employee Stock Option Shares | 0.9 | 1 | 1.1 | |||||||||||||||
Effect of Employee Restricted Stock Shares | 1 | 1.6 | 1.6 | |||||||||||||||
Diluted weighted average shares outstanding (in shares) | 432.7 | 437.6 | 443.3 | |||||||||||||||
EPS from continuing operations, Basic (in dollars per share) | $ 0.96 | $ 1.91 | $ 1.51 | $ 1.35 | $ 1.10 | $ 1.74 | $ 1.28 | $ 1.16 | $ 5.73 | $ 5.27 | $ 4.28 | |||||||
EPS from continuing operations, Diluted (in dollars per share) | $ 0.96 | $ 1.90 | $ 1.50 | $ 1.34 | $ 1.09 | $ 1.73 | $ 1.27 | $ 1.15 | $ 5.70 | $ 5.24 | $ 4.25 | |||||||
Options excluded from the calculation of diluted earnings per share because their exercise prices exceeded the average market price (in shares) | 1.2 | 0.7 | 0.9 | |||||||||||||||
Unrecognized Tax Benefits | $ 62,300,000 | $ 54,200,000 | $ 62,300,000 | $ 54,200,000 | $ 45,200,000 | $ 74,600,000 | ||||||||||||
Threshold of coverage for all losses per occurrence covered by reinsurance arrangement, next fiscal year | 1,000,000 | |||||||||||||||||
Concentration Risk, Credit Risk, Financial Instruments, Off-balance Sheet Risk | 242,000,000 | |||||||||||||||||
Payments for Reinsurance | 240,000,000 | |||||||||||||||||
Tax Settlements Future Impact Potential On Earnings Maximum | 4,000,000 | |||||||||||||||||
Debt Instrument, Face Amount | 2,000,000,000 | 2,000,000,000 | ||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | 3,026,200,000 | 2,688,300,000 | 2,515,200,000 | |||||||||||||||
Max Expected Cash Payment On Tax Settlements | 4,000,000 | |||||||||||||||||
Total assets | 39,165,500,000 | 41,887,700,000 | 39,165,500,000 | 41,887,700,000 | 38,849,100,000 | |||||||||||||
Letters of Credit Outstanding, Amount | 0 | 0 | ||||||||||||||||
Operating lease right-of-use asset | 493,700,000 | 0 | 493,700,000 | 0 | $ 573,300,000 | |||||||||||||
Operating Lease, Liability | 439,900,000 | $ 439,900,000 | ||||||||||||||||
Revenue, Capitalized Costs Fulfillment Period, Description of Timing | The expected client relationship period ranges from three to eight years. | |||||||||||||||||
PEO revenues | [1] | $ 4,506,500,000 | 4,172,500,000 | 3,824,300,000 | ||||||||||||||
TOTAL REVENUES | 3,376,800,000 | $ 4,047,800,000 | $ 3,669,500,000 | $ 3,495,700,000 | 3,479,300,000 | [2] | $ 3,828,200,000 | [2] | $ 3,492,400,000 | [2] | $ 3,310,300,000 | [2] | 14,589,800,000 | 14,110,200,000 | 13,274,200,000 | |||
Operating expenses | 7,404,100,000 | 7,080,900,000 | 6,847,500,000 | |||||||||||||||
Total Expenses | 11,555,200,000 | 11,215,700,000 | 10,819,500,000 | |||||||||||||||
Earnings before income taxes | $ 531,300,000 | $ 1,076,700,000 | $ 835,500,000 | $ 739,100,000 | 633,300,000 | $ 984,500,000 | $ 741,000,000 | $ 646,800,000 | $ 3,182,600,000 | 3,005,600,000 | 2,282,600,000 | |||||||
Operating lease liabilities | $ 0 | 0 | $ 522,600,000 | |||||||||||||||
Previously Reported [Member] | ||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||||
Net Income (Loss) Attributable to Parent | 2,292,800,000 | 1,884,900,000 | ||||||||||||||||
Provision for income taxes | 712,800,000 | 397,700,000 | ||||||||||||||||
PEO revenues | 4,237,500,000 | 3,877,800,000 | ||||||||||||||||
TOTAL REVENUES | 14,175,200,000 | 13,327,700,000 | ||||||||||||||||
Operating expenses | 7,145,900,000 | 6,901,000,000 | ||||||||||||||||
Total Expenses | 11,280,700,000 | 10,873,000,000 | ||||||||||||||||
Earnings before income taxes | 3,005,600,000 | 2,282,600,000 | ||||||||||||||||
Restatement Adjustment [Member] | ||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||||
Net Income (Loss) Attributable to Parent | 0 | 0 | ||||||||||||||||
Provision for income taxes | 0 | 0 | ||||||||||||||||
PEO revenues | (65,000,000) | (53,500,000) | ||||||||||||||||
TOTAL REVENUES | (65,000,000) | (53,500,000) | ||||||||||||||||
Operating expenses | (65,000,000) | (53,500,000) | ||||||||||||||||
Total Expenses | (65,000,000) | (53,500,000) | ||||||||||||||||
Earnings before income taxes | $ 0 | $ 0 | ||||||||||||||||
Minimum [Member] | ||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||||
Revenue, Service Agreements, Term | 30 days | |||||||||||||||||
Internal Use Software Life of Asset | three | |||||||||||||||||
Minimum [Member] | Nex-Gen Platform [Member] | ||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||||
Internal Use Software Life of Asset | ten years | |||||||||||||||||
Maximum [Member] | ||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||||
Revenue, Service Agreements, Term | 5 years | |||||||||||||||||
Internal Use Software Life of Asset | five-year | |||||||||||||||||
Notes due on 2020 [Member] | ||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||||
Debt Instrument, Term | 5 years | |||||||||||||||||
Notes due on 2025 [Member] | ||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||||
Debt Instrument, Term | 10 years | |||||||||||||||||
Retained Earnings [Member] | ||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||||
Net Income (Loss) Attributable to Parent | $ 2,466,500,000 | |||||||||||||||||
[1] | For the years ended June 30, 2020 (“fiscal 2020”), June 30, 2019 (“fiscal 2019”), and June 30, 2018 (“fiscal 2018”), Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes, of $45,826.1 million , $42,688.8 million, and $39,140.9 million, respectively. | |||||||||||||||||
[2] | (A) The prior period amounts presented have 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 of $12.9 million, $13.5 million, $19.2 million and $19.4 million for the first quarter, second quarter, third quarter and fourth quarter, respectively. Refer to Note 1 to our consolidated financial statements for more information on this revision. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Revenue Recognition Restatement (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Revenue Recognition Restatement | ||||||||||||||||
Other Assets, Current | $ 506.2 | $ 509.1 | $ 506.2 | $ 509.1 | ||||||||||||
Interest on funds held for clients | 545.2 | 561.9 | $ 466.5 | |||||||||||||
PEO revenues | [1] | 4,506.5 | 4,172.5 | 3,824.3 | ||||||||||||
TOTAL REVENUES | 3,376.8 | $ 4,047.8 | $ 3,669.5 | $ 3,495.7 | 3,479.3 | [2] | $ 3,828.2 | [2] | $ 3,492.4 | [2] | $ 3,310.3 | [2] | 14,589.8 | 14,110.2 | 13,274.2 | |
Revenues, Net | 9,538.1 | 9,375.8 | 8,983.4 | |||||||||||||
Operating expenses | 7,404.1 | 7,080.9 | 6,847.5 | |||||||||||||
Systems development and programming costs | 674.1 | 636.3 | 635.4 | |||||||||||||
Cost, Depreciation and Amortization | 366.9 | 304.4 | 274.5 | |||||||||||||
Selling, general, and administrative expenses | 3,003 | 3,064.2 | 2,959.4 | |||||||||||||
Interest Expense | 107.1 | 129.9 | 102.7 | |||||||||||||
Total Expenses | 11,555.2 | 11,215.7 | 10,819.5 | |||||||||||||
Other expense/(income), net | (148) | (111.1) | 172.1 | |||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 531.3 | 1,076.7 | 835.5 | 739.1 | 633.3 | 984.5 | 741 | 646.8 | 3,182.6 | 3,005.6 | 2,282.6 | |||||
Provision for income taxes | 716.1 | 712.8 | 397.7 | |||||||||||||
NET EARNINGS | 411.5 | $ 820.9 | $ 651.6 | $ 582.4 | 475.5 | $ 753.7 | $ 558.2 | $ 505.4 | 2,466.5 | 2,292.8 | 1,884.9 | |||||
Assets, Current | 31,564.1 | 34,342.3 | 31,564.1 | 34,342.3 | ||||||||||||
Deferred contract costs | [3] | 2,401.6 | 2,428.5 | 2,401.6 | 2,428.5 | |||||||||||
Other Assets, Noncurrent | 458.4 | 934.4 | 458.4 | 934.4 | ||||||||||||
Total assets | 39,165.5 | 41,887.7 | 39,165.5 | 41,887.7 | 38,849.1 | |||||||||||
Liabilities, Current | 30,126.6 | 32,627.7 | 30,126.6 | 32,627.7 | ||||||||||||
Deferred Revenue, Noncurrent | 370.6 | 399.3 | 370.6 | 399.3 | ||||||||||||
Liabilities | 33,413.3 | 36,487.8 | 33,413.3 | 36,487.8 | ||||||||||||
Retained Earnings (Accumulated Deficit) | 18,436.3 | 17,500.6 | 18,436.3 | 17,500.6 | ||||||||||||
Stockholders' Equity Attributable to Parent | 5,752.2 | 5,399.9 | 5,752.2 | 5,399.9 | ||||||||||||
Liabilities and Equity | $ 39,165.5 | $ 41,887.7 | 39,165.5 | 41,887.7 | ||||||||||||
Capitalized Contract Cost, Amortization | 915 | 874 | 837.4 | |||||||||||||
Deferred Income Tax Expense (Benefit), Net of Disposals | 26 | 9.3 | (152) | |||||||||||||
Increase (Decrease) in Other Operating Assets | 910.4 | 987.2 | 858.3 | |||||||||||||
Increase (Decrease) in Accrued Liabilities | (77.5) | 266 | 110.5 | |||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ 3,026.2 | 2,688.3 | 2,515.2 | |||||||||||||
Previously Reported [Member] | ||||||||||||||||
Revenue Recognition Restatement | ||||||||||||||||
PEO revenues | 4,237.5 | 3,877.8 | ||||||||||||||
TOTAL REVENUES | 14,175.2 | 13,327.7 | ||||||||||||||
Operating expenses | 7,145.9 | 6,901 | ||||||||||||||
Total Expenses | 11,280.7 | 10,873 | ||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 3,005.6 | 2,282.6 | ||||||||||||||
Provision for income taxes | 712.8 | 397.7 | ||||||||||||||
NET EARNINGS | 2,292.8 | 1,884.9 | ||||||||||||||
Restatement Adjustment [Member] | ||||||||||||||||
Revenue Recognition Restatement | ||||||||||||||||
PEO revenues | (65) | (53.5) | ||||||||||||||
TOTAL REVENUES | (65) | (53.5) | ||||||||||||||
Operating expenses | (65) | (53.5) | ||||||||||||||
Total Expenses | (65) | (53.5) | ||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 0 | 0 | ||||||||||||||
Provision for income taxes | 0 | 0 | ||||||||||||||
NET EARNINGS | $ 0 | $ 0 | ||||||||||||||
Minimum [Member] | ||||||||||||||||
Revenue Recognition Restatement | ||||||||||||||||
Revenue, Service Agreements, Term | 30 days | |||||||||||||||
[1] | For the years ended June 30, 2020 (“fiscal 2020”), June 30, 2019 (“fiscal 2019”), and June 30, 2018 (“fiscal 2018”), Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes, of $45,826.1 million , $42,688.8 million, and $39,140.9 million, respectively. | |||||||||||||||
[2] | (A) The prior period amounts presented have 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 of $12.9 million, $13.5 million, $19.2 million and $19.4 million for the first quarter, second quarter, third quarter and fourth quarter, respectively. Refer to Note 1 to our consolidated financial statements for more information on this revision. | |||||||||||||||
[3] | (1) The amount of total deferred costs amortized during the twelve months ended June 30, 2020, June 30, 2019, and June 30, 2018 were $915.0 million , $874.0 million, and $837.4 million, respectively. |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | ||||
Capitalized Contract Cost, Amortization | $ 915 | $ 874 | $ 837.4 | |
Deferred contract costs | [1] | 2,401.6 | 2,428.5 | |
Contract with Customer, Liability | 522.7 | 563.4 | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 14,589.8 | 14,110.2 | 13,274.2 | |
Contract with Customer, Liability, Revenue Recognized | 168.5 | |||
Contract With Customer, Liability, Deferral Net Of Revenue Recognized And Foreign Currency Translation | 134.2 | |||
Contract With Customer, Liability, Increase (Decrease) From Foreign Currency Translation | (6.4) | |||
Capitalized Contract Cost [Line Items] | ||||
Deferred contract costs | [1] | 2,401.6 | 2,428.5 | |
HCM [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,540.9 | 6,441.8 | 6,204.9 | |
HRO [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,543.2 | 2,444.4 | 2,261.9 | |
PEO [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,907.7 | 2,647.5 | 2,409.6 | |
Global [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,052.8 | 2,014.6 | 1,931.3 | |
client fund interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 545.2 | 561.9 | 466.5 | |
Employer Services Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,086.6 | 9,942.8 | 9,454.8 | |
Employer Services Segment [Member] | HCM [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,546.4 | 6,447.5 | 6,210.2 | |
Employer Services Segment [Member] | HRO [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 947.2 | 924 | 851.3 | |
Employer Services Segment [Member] | PEO [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Employer Services Segment [Member] | Global [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,052.8 | 2,014.6 | 1,931.3 | |
Employer Services Segment [Member] | client fund interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 540.2 | 556.7 | 462 | |
Professional Employee Organization Services Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,511.5 | 4,177.7 | 3,828.8 | |
Professional Employee Organization Services Segment [Member] | HCM [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Professional Employee Organization Services Segment [Member] | HRO [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,598.8 | 1,525 | 1,414.7 | |
Professional Employee Organization Services Segment [Member] | PEO [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,907.7 | 2,647.5 | 2,409.6 | |
Professional Employee Organization Services Segment [Member] | Global [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Professional Employee Organization Services Segment [Member] | client fund interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5 | 5.2 | 4.5 | |
Other Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | (8.3) | (10.3) | (9.4) | |
Other Segments [Member] | HCM [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | (5.5) | (5.7) | (5.3) | |
Other Segments [Member] | HRO [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | (2.8) | (4.6) | (4.1) | |
Other Segments [Member] | PEO [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Other Segments [Member] | Global [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Other Segments [Member] | client fund interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | $ 0 | |
Deferred costs to obtain a contract [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred contract costs | 977.8 | 992.3 | ||
Capitalized Contract Cost [Line Items] | ||||
Deferred contract costs | 977.8 | 992.3 | ||
Deferred costs to fulfill a contract [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred contract costs | 1,423.8 | 1,436.2 | ||
Capitalized Contract Cost [Line Items] | ||||
Deferred contract costs | $ 1,423.8 | $ 1,436.2 | ||
[1] | (1) The amount of total deferred costs amortized during the twelve months ended June 30, 2020, June 30, 2019, and June 30, 2018 were $915.0 million , $874.0 million, and $837.4 million, respectively. |
Other Expense_(Income), Net (De
Other Expense/(Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income on corporate funds | $ (84.5) | $ (97.6) | $ (83.5) |
Gain on sale of business | (5.8) | (4.1) | (0.7) |
Gain on Sale of Investments | (0.2) | (15.7) | 0 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (74.5) | (6.7) | 253.8 |
Available-for-sale Securities, Gross Realized Gain (Loss) | (12.9) | 0.9 | 2.5 |
Other (income)/expense, net | (148) | (111.1) | 172.1 |
Asset Impairment Charges | 29.9 | $ 12.1 | $ 0 |
United States [Domain] | |||
Operating Lease, Impairment Loss | 4.6 | ||
Property, Plant and Equipment [Member] | |||
Asset Impairment Charges | $ 25.3 |
Corporate Investments And Fun_3
Corporate Investments And Funds Held For Clients (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | $ 21,576.6 | [1] | $ 21,576.6 | [1] | $ 24,859.1 | [2] | |
Earliest corporate bond maturity date | July 2020 | ||||||
Latest corporate bond maturity date | March 2030 | ||||||
Earliest non-callable debt maturity date | July 2020 | ||||||
Latest non-callable debt maturity date | December 2029 | ||||||
Client Fund Obligation repayment period | 1 year | ||||||
Client funds obligations | 25,831.6 | $ 25,831.6 | 29,144.5 | ||||
Funds held for Clients Held-in Grantor Trust | $ 23,740 | ||||||
Client funds investments with original maturities | ninety days or less | ||||||
Percentage of the available-for-sale securities were rated AAA or AA | 79.00% | ||||||
Proceeds from the sales and maturities of corporate and client funds marketable securities | 1,600 | $ 7,648.4 | 2,909 | $ 3,455 | |||
Current [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale Securities, Restricted | 5,541.2 | 5,541.2 | 5,013.9 | ||||
Non-current [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale Securities, Restricted | 16,021.8 | 16,021.8 | 19,573.3 | ||||
Federal Home Loan Banks [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 561.1 | 561.1 | |||||
Federal Farm Credit Banks [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 432 | 432 | |||||
Commercial Mortgage Backed Securities [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 868.2 | 868.2 | |||||
Debt Security, Corporate, Non-US [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 189.9 | 189.9 | |||||
Supranational Bonds [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 91.4 | 91.4 | |||||
Fixed Rate Credit Card [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 1,256 | 1,256 | |||||
Asset-Backed Auto Loan Receivables [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 1,666.6 | 1,666.6 | |||||
Asset-Backed Equipment Lease Receivable [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 344.4 | 344.4 | |||||
Rate Reduction Receivable [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 102.4 | 102.4 | |||||
Municipal Bonds [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 592.7 | 592.7 | 612.4 | ||||
Funds Held For Clients [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | 21,563 | 21,563 | 24,587.2 | ||||
Corporate Investments [Member] | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities - fair value | $ 13.6 | $ 13.6 | $ 271.9 | ||||
[1] | Included within available-for-sale securities are corporate investments with fair values of $13.6 million and funds held for clients with fair values of $21,563.0 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy. | ||||||
[2] | (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 $24,587.2 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
Corporate Investments And Fun_4
Corporate Investments And Funds Held For Clients (Corporate Investments And Funds Held For Clients) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Money market securities and other cash equivalents - Amortized Cost | $ 7,053.6 | $ 6,796.2 | ||
Cash Equivalents At Gross Unrealized Gains | 0 | 0 | ||
Cash Equivalents At Gross Unrealized Losses | 0 | 0 | ||
Money market securities and other cash equivalents - Fair Value | 7,053.6 | 6,796.2 | ||
Total available-for-sale securities - Amortized Cost | 20,699.8 | 24,571.6 | ||
Available for Sale Securities - Unrealized Gains | 877.5 | 320.6 | ||
Available for sale securities - Unrealized Loss | (0.7) | (33.1) | ||
Total available-for-sale securities - Fair Value | 21,576.6 | [1] | 24,859.1 | [2] |
Total corporate investments and funds held for clients - Amortized Cost | 27,753.4 | 31,367.8 | ||
Total corporate investments and funds held for clients - Gross Unrealized Gains | 877.5 | 320.6 | ||
Total corporate investments and funds held for clients - Gross Unrealized Losses | (0.7) | (33.1) | ||
Total corporate investments and funds held for clients - Fair Value | 28,630.2 | 31,655.3 | ||
Corporate Bonds [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Amortized Cost | 9,188.7 | 10,691.8 | ||
Available for Sale Securities - Unrealized Gains | 473.4 | 182.8 | ||
Available for sale securities - Unrealized Loss | 0 | (6.7) | ||
Total available-for-sale securities - Fair Value | 9,662.1 | 10,867.9 | ||
Asset-Backed Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Amortized Cost | 3,274.6 | 4,658.3 | ||
Available for Sale Securities - Unrealized Gains | 96 | 37.8 | ||
Available for sale securities - Unrealized Loss | (0.5) | (5.4) | ||
Total available-for-sale securities - Fair Value | 3,370.1 | 4,690.7 | ||
U.S. Treasury And Direct Obligations Of U.S. Government Agencies [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Amortized Cost | 1,128.2 | 2,612 | ||
Available for Sale Securities - Unrealized Gains | 35.6 | 17.7 | ||
Available for sale securities - Unrealized Loss | 0 | (5.8) | ||
Total available-for-sale securities - Fair Value | 1,163.8 | 2,623.9 | ||
US Treasury and Government [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Amortized Cost | 3,580.6 | 2,933 | ||
Available for Sale Securities - Unrealized Gains | 120.8 | 23.8 | ||
Available for sale securities - Unrealized Loss | 0 | (8) | ||
Total available-for-sale securities - Fair Value | 3,701.4 | 2,948.8 | ||
Canadian Government Obligations And Canadian Government Agency Obligations [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Amortized Cost | 1,018.7 | 1,164.1 | ||
Available for Sale Securities - Unrealized Gains | 23.1 | 7 | ||
Available for sale securities - Unrealized Loss | 0 | (6) | ||
Total available-for-sale securities - Fair Value | 1,041.8 | 1,165.1 | ||
Canadian Provincial Bonds [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Amortized Cost | 676.6 | 800.2 | ||
Available for Sale Securities - Unrealized Gains | 33.6 | 14.5 | ||
Available for sale securities - Unrealized Loss | 0 | (0.5) | ||
Total available-for-sale securities - Fair Value | 710.2 | 814.2 | ||
Municipal Bonds [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Amortized Cost | 596.1 | |||
Available for Sale Securities - Unrealized Gains | 16.4 | |||
Available for sale securities - Unrealized Loss | (0.1) | |||
Total available-for-sale securities - Fair Value | 592.7 | 612.4 | ||
Other Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Amortized Cost | 1,018.1 | 1,116.1 | ||
Available for Sale Securities - Unrealized Gains | 41.1 | 20.6 | ||
Available for sale securities - Unrealized Loss | (0.2) | (0.6) | ||
Total available-for-sale securities - Fair Value | 1,059 | 1,136.1 | ||
Commercial Mortgage Backed Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Amortized Cost | 814.3 | |||
Available for Sale Securities - Unrealized Gains | 53.9 | |||
Available for sale securities - Unrealized Loss | 0 | |||
Total available-for-sale securities - Fair Value | 868.2 | |||
Corporate Investments [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Fair Value | 13.6 | 271.9 | ||
Funds Held For Clients [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total available-for-sale securities - Fair Value | $ 21,563 | $ 24,587.2 | ||
[1] | Included within available-for-sale securities are corporate investments with fair values of $13.6 million and funds held for clients with fair values of $21,563.0 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy. | |||
[2] | (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 $24,587.2 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
Corporate Investments And Fun_5
Corporate Investments And Funds Held For Clients (Available-For-Sale Securities That Have Been In An Unrealized Loss Position) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (0.7) | $ (7.2) |
Fair market value of securities in unrealized loss position less than 12 months | 63 | 1,107.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (25.9) |
Fair market value of securities in unrealized loss positions greater than 12 months | 1.5 | 7,192.5 |
Total Gross Unrealized Losses | (0.7) | (33.1) |
Total fair market value of securities in unrealized loss position | 64.5 | 8,300.2 |
Corporate Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (0.6) |
Fair market value of securities in unrealized loss position less than 12 months | 0 | 151.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (6.1) |
Fair market value of securities in unrealized loss positions greater than 12 months | 0 | 2,055.6 |
Total Gross Unrealized Losses | 0 | (6.7) |
Total fair market value of securities in unrealized loss position | 0 | 2,207.5 |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (0.5) | (0.2) |
Fair market value of securities in unrealized loss position less than 12 months | 43.9 | 171.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (5.2) |
Fair market value of securities in unrealized loss positions greater than 12 months | 0 | 2,083.5 |
Total Gross Unrealized Losses | (0.5) | (5.4) |
Total fair market value of securities in unrealized loss position | 43.9 | 2,255.4 |
U.S. Treasury And Direct Obligations Of U.S. Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Fair market value of securities in unrealized loss position less than 12 months | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (5.8) |
Fair market value of securities in unrealized loss positions greater than 12 months | 0 | 1,671.4 |
Total Gross Unrealized Losses | 0 | (5.8) |
Total fair market value of securities in unrealized loss position | 0 | 1,671.4 |
US Treasury and Government [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Fair market value of securities in unrealized loss position less than 12 months | 2 | 1.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (8) |
Fair market value of securities in unrealized loss positions greater than 12 months | 0 | 1,159.4 |
Total Gross Unrealized Losses | 0 | (8) |
Total fair market value of securities in unrealized loss position | 2 | 1,161.2 |
Canadian Government Obligations And Canadian Government Agency Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (6) |
Fair market value of securities in unrealized loss position less than 12 months | 0 | 662.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Fair market value of securities in unrealized loss positions greater than 12 months | 0 | 1.1 |
Total Gross Unrealized Losses | 0 | (6) |
Total fair market value of securities in unrealized loss position | 0 | 663.8 |
Canadian Provincial Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (0.3) |
Fair market value of securities in unrealized loss position less than 12 months | 0 | 81.5 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (0.2) |
Fair market value of securities in unrealized loss positions greater than 12 months | 0 | 50.1 |
Total Gross Unrealized Losses | 0 | (0.5) |
Total fair market value of securities in unrealized loss position | 0 | 131.6 |
Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Fair market value of securities in unrealized loss position less than 12 months | 1.5 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (0.1) | |
Fair market value of securities in unrealized loss positions greater than 12 months | 23.3 | |
Total Gross Unrealized Losses | (0.1) | |
Total fair market value of securities in unrealized loss position | 24.8 | |
Other Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (0.2) | (0.1) |
Fair market value of securities in unrealized loss position less than 12 months | 17.1 | 36.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (0.5) |
Fair market value of securities in unrealized loss positions greater than 12 months | 0 | 148.1 |
Total Gross Unrealized Losses | (0.2) | (0.6) |
Total fair market value of securities in unrealized loss position | 17.1 | $ 184.5 |
Commercial Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Fair market value of securities in unrealized loss position less than 12 months | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Fair market value of securities in unrealized loss positions greater than 12 months | 1.5 | |
Total Gross Unrealized Losses | 0 | |
Total fair market value of securities in unrealized loss position | $ 1.5 |
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 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Corporate Investments And Funds Held For Clients [Abstract] | ||||
Cash and cash equivalents | $ 1,908.5 | $ 1,949.2 | $ 2,170 | |
Marketable Securities, Current | 0 | 10.5 | ||
Long-term marketable securities | [1] | 13.6 | 261.4 | |
Total corporate investments | $ 1,922.1 | $ 2,221.1 | ||
[1] | 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 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Marketable Securities [Line Items] | ||||
Restricted cash and cash equivalents held to satisfy client funds obligations | [1] | $ 5,145.1 | $ 4,847 | $ 4,372.1 |
Total funds held for clients | 26,708.1 | 29,434.2 | ||
Current [Member] | ||||
Marketable Securities [Line Items] | ||||
Available-for-sale Securities, Restricted | 5,541.2 | 5,013.9 | ||
Non-current [Member] | ||||
Marketable Securities [Line Items] | ||||
Available-for-sale Securities, Restricted | $ 16,021.8 | $ 19,573.3 | ||
[1] | See Note 4 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 | Jun. 30, 2020USD ($) |
Corporate Investments And Funds Held For Clients [Abstract] | |
Due in one year or less | $ 5,541.2 |
Due after one year to two years | 3,962.2 |
Due after two years to three years | 4,761.5 |
Due after three years to four years | 3,005.6 |
Due after four years | 4,306.1 |
Total available-for-sale securities | $ 21,576.6 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation Expense | $ 192.8 | $ 180.6 | $ 173.1 |
Property, Plant and Equipment, Gross | 2,228.7 | 2,181.8 | |
Accumulated Depreciation | (1,524.8) | (1,417.6) | |
Property, Plant and Equipment, Net | 703.9 | 764.2 | |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 6.7 | ||
Land and Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 737.2 | 781.2 | |
Data Processing Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 847.9 | 749 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 643.6 | $ 651.6 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 287.2 | $ 228.4 | $ 204.5 |
Weighted average remaining useful life | 6 years | ||
Software And Software Licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 6 years | ||
Customer Contracts And Lists [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 5 years | ||
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 4 years |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets, Net (Changes In Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 2,323 | $ 2,243.5 |
Additions and other adjustments | (2.5) | 94.3 |
Currency translation adjustments | (11.1) | (14.8) |
Ending balance | 2,309.4 | 2,323 |
Employer Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,318.2 | 2,238.7 |
Additions and other adjustments | (2.5) | 94.3 |
Currency translation adjustments | (11.1) | (14.8) |
Ending balance | 2,304.6 | 2,318.2 |
PEO Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4.8 | 4.8 |
Additions and other adjustments | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Ending balance | $ 4.8 | $ 4.8 |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets, Net (Components Of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | $ 3,979.5 | $ 3,617.9 |
Total - accumulated amortization | (2,763.7) | (2,546.4) |
Intangible assets, net | 1,215.8 | 1,071.5 |
Software And Software Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | 2,719.1 | 2,519.3 |
Total - accumulated amortization | (1,912) | (1,762.3) |
Customer Contracts And Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | 1,021.2 | 860.7 |
Total - accumulated amortization | (628.3) | (566.4) |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | 239.2 | 237.9 |
Total - accumulated amortization | $ (223.4) | $ (217.7) |
Goodwill And Intangible Asset_6
Goodwill And Intangible Assets, Net (Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Twelve months ending June 30, 2022 | $ 243.7 |
Twelve months ending June 30, 2023 | 203.8 |
Twelve months ending June 30, 2024 | 161.5 |
Twelve months ending June 30, 2025 | 108.7 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 285.3 |
Short-Term Financing (Details)
Short-Term Financing (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Short-term Debt [Line Items] | |||
Credit borrowings | $ 1,001,800,000 | $ 0 | |
Commercial Paper | $ 0 | ||
Maturities of short-term funding agreements | overnight to up to five business days | ||
Obligations under reverse repurchase agreements | $ 13,600,000 | [1] | 262,000,000 |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||
364-Day Credit Agreement [Member] | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity under credit facilities | $ 3,200,000,000 | ||
Term of credit | 364 days | ||
Debt Instrument, 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 | 5 years | ||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | ||
Reverse Repurchase Agreements [Member] | |||
Short-term Debt [Line Items] | |||
Short-term Debt, Average Outstanding Amount | $ 263,400,000 | $ 316,700,000 | |
Debt Instrument, Interest Rate During Period | 1.60% | 1.90% | |
Credit Facility Expiring In June Two Thousand Twenty One [Member] | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity under credit facilities | $ 3,750,000,000 | ||
Term of credit | 5 years | ||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | ||
Commercial Paper [Member] | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity under credit facilities | $ 9,700,000,000 | $ 10,300,000,000 | |
Maturities of commercial paper range | overnight to up to 364 days | ||
Weighted average maturity of borrowings under the short-term commercial paper program | 2 days | 2 days | |
Short-term Debt, Average Outstanding Amount | $ 2,700,000,000 | $ 2,800,000,000 | |
Debt Instrument, Interest Rate During Period | 1.60% | 2.20% | |
[1] | (A) As of June 30, 2020, $13.6 million of long-term marketable securities 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 $0.6 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements (see Note 8). |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||
Notes Payable | $ 2,008,400,000 | $ 2,010,900,000 |
Debt Instrument, Face Amount | 2,000,000,000 | |
Long-term Debt, Fair Value | 2,124,700,000 | |
Debt, Current | (1,001,800,000) | (2,500,000) |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | (3,800,000) | (6,200,000) |
Other | 1,002,800,000 | 2,002,200,000 |
Derivative, Notional Amount | $ 400,000,000 | |
Notes due on 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 1,000,000,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 2.37% | |
Debt Instrument, Term | 5 years | |
Notes due on 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.375% | |
Notes Payable | $ 1,000,000,000 | 1,000,000,000 |
Debt Instrument, Interest Rate, Effective Percentage | 3.47% | |
Debt Instrument, Term | 10 years | |
Other Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | $ 8,400,000 | $ 10,900,000 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | Jul. 01, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Nov. 12, 2019 | Aug. 28, 2015 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Stock options - term for stock options granted, in years | 10 years | ||||||||
Vesting term options granted | 4 years | ||||||||
Cash payments for Restricted Stock Units | $ 34.6 | $ 26.6 | $ 27.1 | ||||||
Aggregate intrinsic value of stock options outstanding and exercisable | 102.1 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 66.8 | ||||||||
Weighted average remaining life of stock options outstanding and exercisable | 7 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years | ||||||||
Aggregate intrinsic value for options exercised | $ 78 | 78.2 | 60 | ||||||
Award requisite service period | 3 years | ||||||||
Supplemental Officers Retirement Plan Freeze Date | Jul. 1, 2019 | ||||||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 2,167.5 | 1,938 | |||||||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | (429.6) | ||||||||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | (2.5) | ||||||||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | 9 | ||||||||
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | 0.2 | ||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 9.8 | 10 | |||||||
Expected future plan benefit payment - 2019 | 99.5 | ||||||||
Expected future plan benefit payment - 2020 | 117.8 | ||||||||
Expected future plan benefit payment - 2021 | 99.3 | ||||||||
Expected future plan benefit payment - 2022 | 106.3 | ||||||||
Expected future plan benefit payment - 2023 | 119.4 | ||||||||
Expected future plan benefit payment - 2024 to 2028 | 639.4 | ||||||||
Fair Value of Plan Assets | 1,988.8 | $ 1,910.5 | $ 2,178.1 | ||||||
Additional estimated future contribution | $ 9.3 | ||||||||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent | 50.00% | ||||||||
Highly Compensated Employee Contribution Percentage To Retirement And Saving Plan | 12.00% | ||||||||
Defined Contribution Plan, Cost | $ 112.7 | $ 110.9 | $ 100.6 | ||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | ||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 25 | ||||||||
Time Based Restriced Stock granted during or after Fiscal 2019 [Domain] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Vesting term options granted | 3 years | ||||||||
Time Based Restricted Stock granted during Fiscal 2013 [Domain] [Domain] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Vesting term options granted | 2 years | ||||||||
Performance Based Restricted Stock and Units [Domain] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [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] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Purchase price of common stock as percentage of market value | 95.00% | ||||||||
Non-Vested Stock Options [Member] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Total remaining unrecognized compensation cost | $ 18.2 | ||||||||
Weighted-average remaining requisite vesting period | 2 years 3 months 18 days | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Total remaining unrecognized compensation cost | $ 30.8 | ||||||||
Weighted-average remaining requisite vesting period | 1 year 6 months | ||||||||
Non-Vested Restricted Stock [Member] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Total remaining unrecognized compensation cost | $ 102.1 | ||||||||
Weighted-average remaining requisite vesting period | 1 year 10 months 24 days | ||||||||
Minimum [Member] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award Performance Period | 1 year | ||||||||
Maximum [Member] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award Performance Period | 3 years | ||||||||
Maximum [Member] | Performance Based Restricted Stock and Units [Domain] | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Vesting term options granted | 38 months |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Stock-based compensation expense | $ 130.8 | $ 167.3 | $ 175.4 |
Income Tax Benefit | 32.2 | 41.6 | 44.1 |
Operating Expenses [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Stock-based compensation expense | 13.7 | 16.9 | 22.9 |
Selling, General and Administrative Expenses [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Stock-based compensation expense | 99.1 | 131.2 | 128.7 |
System Development And Programming Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Stock-based compensation expense | $ 18 | $ 19.2 | $ 23.8 |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes In Stock Options Outstanding) (Details) shares in Thousands | 12 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Options outstanding at July 1, 2017 (in shares) | 3,608 |
Options granted (in shares) | 1,015 |
Options exercised (in shares) | (968) |
Options canceled (in shares) | (145) |
Options outstanding at June 30, 2018 (in shares) | 3,510 |
Options exercisable at June 30, 2018 (in shares) | 1,273 |
Shares available for future grants, end of year | 24,853 |
Shares reserved for issuance under stock option plans, end of year | 28,363 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Price [Roll Forward] | |
Weighted Average Price, beginning of year (in dollars per share) | $ / shares | $ 103 |
Weighted Average Price, granted (in dollars per share) | $ / shares | 170 |
Weighted Average Price, exercised (in dollars per share) | $ / shares | 86 |
Weighted Average Price, cancelled (in dollars per share) | $ / shares | 136 |
Weighted Average Price, outstanding at June 30, 2016 (in dollars per share) | $ / shares | 126 |
Weighted Average Price, Option exercisable at June 30, 2016 (in dollars per share) | $ / shares | $ 96 |
Employee Benefit Plans (Time-Ba
Employee Benefit Plans (Time-Based Restricted shares and units) (Details) shares in Thousands | 12 Months Ended |
Jun. 30, 2020shares | |
Time-Based Restricted Stock [Member] | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Restricted shares/units outstanding at July 1, 2015 | 1,272 |
Restricted shares/units granted | 572 |
Restricted shares/units vested | (856) |
Restricted shares/units forfeited | (83) |
Restricted shares/units outstanding at June 30, 2016 | 905 |
Time-Based Restricted Stock Units [Member] | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Restricted shares/units outstanding at July 1, 2015 | 290 |
Restricted shares/units granted | 101 |
Restricted shares/units vested | (194) |
Restricted shares/units forfeited | (17) |
Restricted shares/units outstanding at June 30, 2016 | 180 |
Employee Benefit Plans (Perform
Employee Benefit Plans (Performance based restricted shares and units) (Details) shares in Thousands | 12 Months Ended |
Jun. 30, 2020shares | |
Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Restricted shares/units outstanding at July 1, 2015 | 250 |
Restricted shares/units granted | 112 |
Restricted shares/units vested | (171) |
Restricted shares/units forfeited | (12) |
Restricted shares/units outstanding at June 30, 2016 | 179 |
Performance Based Restricted Stock Unit [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Restricted shares/units outstanding at July 1, 2015 | 867 |
Restricted shares/units granted | 391 |
Restricted shares/units vested | (376) |
Restricted shares/units forfeited | (31) |
Restricted shares/units outstanding at June 30, 2016 | 851 |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions Used To Estimate Fair Value For Stock Options Granted) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |||
Risk-free interest rate | 1.40% | 2.70% | 1.80% |
Dividend yield | 1.90% | 1.90% | 2.10% |
Weighted average volatility factor | 19.30% | 20.90% | 21.70% |
Weighted average expected life (in years) | 5 years 4 months 24 days | 5 years 4 months 24 days | 5 years 4 months 24 days |
Weighted average fair value (in dollars per share) | $ 24.40 | $ 26.60 | $ 17.50 |
Employee Benefit Plans Weighted
Employee Benefit Plans Weighted average fair value of restricted stock plan issuances (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in dollars per share) | $ 24.40 | $ 26.60 | $ 17.50 |
Performance-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in dollars per share) | 169.84 | 146.93 | 107.43 |
Time-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in dollars per share) | $ 167.16 | $ 146.80 | $ 108.10 |
Employee Benefit Plans (Funded
Employee Benefit Plans (Funded Status of Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair Value of Plan Assets, beginning of year | $ 1,910.5 | $ 2,178.1 | ||||
Actual return on plan assets | 172.1 | 142 | ||||
Employer contributions | 9.8 | 10 | ||||
Currency translation adjustments | (3.5) | (7) | ||||
Benefits Paid | 100.1 | 412.6 | ||||
Fair Value of Plan Assets, end of year | 1,988.8 | 1,910.5 | $ 2,178.1 | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Benefit obligation at beginning of year | 1,951.2 | 2,135.3 | ||||
Service cost | 59.7 | 59.8 | 74.6 | |||
Interest cost | 61.8 | 78.6 | 65.4 | |||
Actuarial (gains)/losses | 210.7 | 95.8 | ||||
Currency translation adjustments | (3.6) | (8.7) | ||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0.4 | 0.8 | ||||
Curtailments and special termination benefits | 22 | (48.7) | (319.5) | |||
Benefits Paid | (100.1) | (412.6) | ||||
Projected benefit obligation at end of year | 2,180.1 | 1,951.2 | 2,135.3 | |||
Funded status - plan assets less benefit obligations | (191.3) | (40.7) | ||||
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | (48.2) | $ (319.6) | ||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0 | $ 2.2 | ||||
Defined Contribution Plan, Cost | $ 112.7 | $ 110.9 | $ 100.6 |
Employee Benefit Plans (Balance
Employee Benefit Plans (Balance Sheet Impact - After Adoption Of SFAS158) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Retirement Benefits [Abstract] | ||
Noncurrent assets | $ 19.8 | $ 108 |
Current liabilities | (5.4) | (5.9) |
Noncurrent liabilities | (205.7) | (142.8) |
Net amount recognized | $ (191.3) | $ (40.7) |
Employee Benefit Plan (Pension
Employee Benefit Plan (Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 2,046.5 | $ 162.4 |
Accumulated benefit obligation | 2,034.4 | 149.9 |
Fair value of plan assets | $ 1,835.4 | $ 13.8 |
Employee Benefit Plans (Compo_2
Employee Benefit Plans (Components Of Net Pension Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |||
Service cost - benefits earned during the period | $ 59.7 | $ 59.8 | $ 74.6 |
Interest cost on projected benefits | 61.8 | 78.6 | 65.4 |
Expected return on plan assets | (117.9) | (131.8) | (137.5) |
Net amortization and deferral | 6.8 | 0.1 | 8.4 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (22) | 48.7 | 319.5 |
Net pension expense | (11.6) | $ 55.4 | $ 330.4 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | $ 17 |
Employee Benefit Plan (Defined
Employee Benefit Plan (Defined Benefit Plan Assumtpions Used in Calculating Benefit Obligations) (Details) | Jun. 30, 2020 | Jun. 30, 2019 |
Retirement Benefits [Abstract] | ||
Discount Rate | 2.45% | 3.40% |
Increase in compensation levels | 4.00% | 4.00% |
Employee Benefit Plan (Assumpti
Employee Benefit Plan (Assumptions Used in Calculating Net Pension Expense) (Details) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |||
Discount rate | 3.40% | 4.10% | 3.70% |
Expected long-term rate of return on assets | 6.75% | 6.75% | 6.75% |
Increase in compensation levels | 4.00% | 4.00% | 4.00% |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plan Asset Allocation by Asset Category) (Details) | Jun. 30, 2020 | Jun. 30, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 100.00% | 100.00% |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 1.00% | 1.00% |
United States Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 44.00% | 44.00% |
United States Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 17.00% | 17.00% |
International Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 13.00% | 13.00% |
Global Equity Securities [Domain] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 25.00% | 25.00% |
Employee Benefit Plans (Pensi_2
Employee Benefit Plans (Pension Plans' Target Asset Allocation Ranges) (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Minimum [Member] | United States Fixed Income Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 35 |
Minimum [Member] | United States Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 14 |
Minimum [Member] | International Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 11 |
Minimum [Member] | Global Equity Securities [Domain] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 20 |
Maximum [Member] | United States Fixed Income Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 45 |
Maximum [Member] | United States Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 24 |
Maximum [Member] | International Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 21 |
Maximum [Member] | Global Equity Securities [Domain] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 30 |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans (Investments of the Plan Measured at Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 1,988.8 | $ 1,910.5 | $ 2,178.1 |
Comingled Trusts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 798.6 | 1,046.6 | |
Comingled Trusts [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Comingled Trusts [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 798.6 | 1,046.6 | |
Comingled Trusts [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
US Treasury and Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 414.7 | 417.9 | |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 414.7 | 417.9 | |
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 282.1 | 6.5 | |
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 7.3 | 6.5 | |
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 274.8 | 0 | |
Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Corporate And Municipal Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 434.8 | 394.3 | |
Corporate And Municipal Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Corporate And Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 434.8 | 394.3 | |
Corporate And Municipal Bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 38.5 | 30.2 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 38.5 | 30.2 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Total Pension Assets Excluding Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,968.7 | 1,895.5 | |
Total Pension Assets Excluding Cash [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 7.3 | 6.5 | |
Total Pension Assets Excluding Cash [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,961.4 | 1,889 | |
Total Pension Assets Excluding Cash [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 20.1 | $ 15 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Percent | 22.50% | 23.70% | 17.40% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 28.10% | |
Undistributed Earnings of Foreign Subsidiaries | $ 274.1 | |||
Deferred Tax Assets, Operating Loss Carryforwards | 52 | $ 54 | ||
Valuation Allowance | 12 | 31.6 | ||
Income Taxes Paid | 677.1 | 633.8 | $ 529.7 | |
Unrecognized Tax Benefits | 62.3 | 54.2 | 45.2 | $ 74.6 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 49.9 | 43.3 | 36.1 | |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 1.6 | 1.9 | $ 3.2 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 8.8 | 9.3 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 0.3 | |||
Tax Settlements Future Impact Potential On Earnings Maximum | 4 | |||
Unrecognized Tax Benefits, Income Tax Penalties Expense | 0.3 | |||
Deferred Tax Assets, Net of Valuation Allowance | 368.8 | 347.5 | ||
Other Assets [Member] | ||||
Long-term Deferred Tax Assets | 38.8 | 64 | ||
Foreign Tax Authority [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | 55.3 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 0.9 | |||
Operating loss carry forwards not subject to expiration | 54.4 | |||
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards | 58.7 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards | 374.8 | |||
Income Taxes Payable [Member] | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 1 | $ 4.3 |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components of Provision for Income Taxes from Continuing Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 2,815.4 | $ 2,584.6 | $ 1,937.2 | ||||||||
Foreign | 367.2 | 421 | 345.4 | ||||||||
EARNINGS BEFORE INCOME TAXES | $ 531.3 | $ 1,076.7 | $ 835.5 | $ 739.1 | $ 633.3 | $ 984.5 | $ 741 | $ 646.8 | $ 3,182.6 | $ 3,005.6 | $ 2,282.6 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision (Benefit) For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 468.3 | $ 464.3 | $ 366.6 |
Current Foreign Tax Expense (Benefit) | 119.5 | 129.1 | 105.5 |
Current State and Local Tax Expense (Benefit) | 102.3 | 110.1 | 77.6 |
Current Income Tax Expense (Benefit) | 690.1 | 703.5 | 549.7 |
Deferred Federal Income Tax Expense (Benefit) | 23.7 | 7.9 | (193) |
Deferred Foreign Income Tax Expense (Benefit) | (5.4) | 12.8 | 26.1 |
Deferred State and Local Income Tax Expense (Benefit) | 7.7 | (11.4) | 14.9 |
Deferred Income Tax Expense (Benefit) | 26 | 9.3 | (152) |
Provision for income taxes from continuing operations | $ 716.1 | $ 712.8 | $ 397.7 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S. Federal Statutory Rate To Effective Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Provision for taxes at U.S. statutory rate | $ 668.4 | $ 631.2 | $ 640.5 |
Provision for taxes at U.S. statutory rate, percent | 21.00% | 21.00% | 28.10% |
State taxes, net of federal tax benefit | $ 85.6 | $ 80.7 | $ 58.1 |
State taxes, net of federal tax benefit, percent | 2.70% | 2.70% | 2.50% |
U.S. tax on foreign income | $ 0 | $ 0 | $ 12 |
U.S. tax on foreign income, percent | 0.00% | 0.00% | 0.50% |
Utilization of foreign tax credits | $ 0 | $ 0 | $ (19.6) |
Utilization of foreign tax credits, percent | 0.00% | 0.00% | (0.90%) |
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount | $ 0 | $ 0 | $ (31.9) |
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent | 0.00% | 0.00% | (1.40%) |
Income Tax Reconciliation Resolution Of Tax Matters | $ 0 | $ 0 | $ (33.3) |
Effective Income Tax Rate Reconciliation Resolution Of Tax Matters | 0.00% | 0.00% | (1.50%) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 0 | $ 0 | $ (253.3) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 0.00% | 0.00% | (11.10%) |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | $ 44.9 | $ 46.9 | $ 0 |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 1.40% | 1.60% | 0.00% |
Excess tax benefit - Stock-based compensation | $ (26.9) | $ (29.8) | $ (26.7) |
Excess tax benefit - Stock-based compensation, percent | (0.80%) | (1.00%) | (1.20%) |
Other | $ (35.6) | $ (16.2) | $ 51.9 |
Other, percent | (1.20%) | (0.60%) | 2.40% |
Provision for income taxes from continuing operations | $ 716.1 | $ 712.8 | $ 397.7 |
Effective Income Tax Rate Reconciliation, Percent | 22.50% | 23.70% | 17.40% |
Effective Income Tax Rate Reconciliation, Valuation Allowance Release on Foreign Tax Credits, Amount | $ (20.3) | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation, Valuation Allowance Release on Foreign Tax Credits, Percent | (0.60%) | 0.00% | 0.00% |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Income Tax Disclosure [Abstract] | ||
Accrued expenses not currently deductible | $ 203 | $ 228.9 |
Stock-based compensation expense | 33.8 | 45.3 |
Foreign Tax Credits | 20.1 | 25.1 |
Net operating losses | 52 | 54 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 46 | 5.6 |
Other | 25.9 | 20.2 |
Deferred Tax Assets, Gross | 380.8 | 379.1 |
Valuation Allowance | (12) | (31.6) |
Deferred Tax Assets, Net of Valuation Allowance | 368.8 | 347.5 |
Deferred Revenue | 475 | 475.9 |
Fixed and intangible assets | 288.2 | 279.5 |
Prepaid expenses | 82.3 | 86.2 |
Tax on unrepatriated earnings | 22.2 | 31.6 |
Other | 6.4 | 7.2 |
Deferred Tax Liabilities | 693.2 | 595.9 |
Deferred Tax Liabilities, Gross | 1,062 | 943.4 |
Deferred Tax Liabilities, Other Comprehensive Income | $ 187.9 | $ 63 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of Beginning and Ending balance of Unrecognized Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized Tax Benefits, beginning balance | $ 54.2 | $ 45.2 | $ 74.6 | |
Additions for tax positions | 13.2 | 9.5 | 4 | |
Additions for tax positions of periods | 6.3 | 18.3 | 19.8 | |
Reductions for tax positions of periods | (4.3) | (7.7) | (40.5) | |
Settlement with tax authorities | (4) | (10.3) | (11.7) | |
Expiration of the statute of limitations | (2.8) | (0.6) | (1) | |
Impact of foreign exchange rate fluctuations | (0.3) | (0.2) | $ 0 | |
Unrecognized Tax Benefits, ending balance | $ 62.3 | $ 54.2 | $ 45.2 |
Income Taxes Income Tax (Taxing
Income Taxes Income Tax (Taxing Jurisdictions) (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Earliest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2019 |
Earliest Tax Year [Member] | INDIA | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2003 |
Earliest Tax Year [Member] | WISCONSIN | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2015 |
Earliest Tax Year [Member] | MICHIGAN | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2012 |
Earliest Tax Year [Member] | NEW YORK | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2016 |
Earliest Tax Year [Member] | FLORIDA | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2016 |
Earliest Tax Year [Member] | New York City [Domain] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2016 |
Latest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2020 |
Latest Tax Year [Member] | INDIA | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2016 |
Latest Tax Year [Member] | WISCONSIN | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Latest Tax Year [Member] | MICHIGAN | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Latest Tax Year [Member] | NEW YORK | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Latest Tax Year [Member] | FLORIDA | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Latest Tax Year [Member] | New York City [Domain] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2017 |
Contractual Commitments Conting
Contractual Commitments Contingencies and Off-Balance Sheet Arrangements (Narrative) (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitments relating to June 30, 2018 | $ 613.2 |
Purchase commitments relating to June 30, 2019 | 415.6 |
Purchase commitments relating to June 30, 2020 | 165.3 |
Litigation Settlement, Amount Awarded to Other Party | $ 25 |
Reclassification out of Accum_3
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Net of Tax | $ 242.5 | $ 422.5 | $ (254.3) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive, beginning balance | (257.3) | |||
Other comprehensive income/(loss) before reclassification adjustments | 348.1 | 515.5 | (365.9) | |
Tax effect | 86.9 | (124.4) | 104.7 | |
Reclassification adjustments to net earnings | (24.7) | 41.2 | 12 | |
Tax effect | 6 | (9.8) | (5.1) | |
Accumulated Other Comprehensive, ending balance | (14.8) | (257.3) | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (42.3) | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (22) | 48.7 | 319.5 | |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive, beginning balance | (269.2) | (227) | (234.8) | |
Other comprehensive income/(loss) before reclassification adjustments | (53) | (42.2) | 7.8 | |
Tax effect | 0 | 0 | 0 | |
Reclassification adjustments to net earnings | 0 | 0 | 0 | |
Tax effect | 0 | 0 | 0 | |
Accumulated Other Comprehensive, ending balance | (322.2) | (269.2) | (227) | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | 0 | |||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive, beginning balance | 224.6 | (274) | 68.3 | |
Other comprehensive income/(loss) before reclassification adjustments | 602.2 | 642.4 | (460.7) | |
Tax effect | 136.4 | (144.4) | 123.4 | |
Reclassification adjustments to net earnings | [1] | (12.9) | 0.9 | 2.7 |
Tax effect | 2.9 | (0.3) | (0.6) | |
Accumulated Other Comprehensive, ending balance | 680.4 | 224.6 | (274) | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (7.1) | |||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive, beginning balance | (212.7) | (178.8) | (216.7) | |
Other comprehensive income/(loss) before reclassification adjustments | (160.8) | (84.7) | 87 | |
Tax effect | (39.5) | 20 | (18.7) | |
Reclassification adjustments to net earnings | [2] | (11.8) | 40.3 | 9.3 |
Tax effect | 3.1 | (9.5) | (4.5) | |
Accumulated Other Comprehensive, ending balance | (342.7) | (212.7) | (178.8) | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (35.2) | |||
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive, beginning balance | (257.3) | (679.8) | (383.2) | |
Accumulated Other Comprehensive, ending balance | (14.8) | (257.3) | (679.8) | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive, beginning balance | 0 | 0 | 0 | |
Other comprehensive income/(loss) before reclassification adjustments | (40.3) | 0 | 0 | |
Tax effect | 10 | 0 | 0 | |
Reclassification adjustments to net earnings | 0 | 0 | 0 | |
Tax effect | 0 | 0 | 0 | |
Accumulated Other Comprehensive, ending balance | $ (30.3) | $ 0 | 0 | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 0 | |||
[1] | Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings. | |||
[2] | Reclassification adjustments out of AOCI are included in net pension (income)/expense (see Note 10). In fiscal 2020, reclassification includes $17.0 million of prior service credits which were recognized as a component of net pension (income)/expense as a result of the US pension plan freeze. |
Financial Data By Segment (Fina
Financial Data By Segment (Financial Data By Strategic Business Unit Segment) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | $ 3,376.8 | $ 4,047.8 | $ 3,669.5 | $ 3,495.7 | $ 3,479.3 | [1] | $ 3,828.2 | [1] | $ 3,492.4 | [1] | $ 3,310.3 | [1] | $ 14,589.8 | $ 14,110.2 | $ 13,274.2 |
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 531.3 | $ 1,076.7 | $ 835.5 | $ 739.1 | 633.3 | $ 984.5 | $ 741 | $ 646.8 | 3,182.6 | 3,005.6 | 2,282.6 | ||||
Total assets | 39,165.5 | 41,887.7 | 39,165.5 | 41,887.7 | 38,849.1 | ||||||||||
Capital Expenditures from continuing operations | 168.3 | 162.7 | 191.9 | ||||||||||||
Depreciation, Depletion and Amortization | $ 480 | 409 | 377.6 | ||||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||||||
Employer Services [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | $ 10,086.6 | 9,942.8 | 9,454.8 | ||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 3,063 | 2,960.9 | 2,601.1 | ||||||||||||
Total assets | 37,071.7 | 34,606.3 | 37,071.7 | 34,606.3 | 31,984.2 | ||||||||||
Capital Expenditures from continuing operations | 115.7 | 98.2 | 113.9 | ||||||||||||
Depreciation, Depletion and Amortization | 388 | 321 | 291.9 | ||||||||||||
PEO Services [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | 4,511.5 | 4,177.7 | 3,828.8 | ||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 605.5 | 616.2 | 541.6 | ||||||||||||
Total assets | 1,443.2 | 1,584.1 | 1,443.2 | 1,584.1 | 1,329.8 | ||||||||||
Capital Expenditures from continuing operations | 0 | 0 | 0 | ||||||||||||
Depreciation, Depletion and Amortization | 3.4 | 3.5 | 3 | ||||||||||||
Other [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | 8.3 | (10.3) | (9.4) | ||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (485.9) | (571.5) | (860.1) | ||||||||||||
Total assets | $ 650.6 | $ 5,697.3 | 650.6 | 5,697.3 | 5,535.1 | ||||||||||
Capital Expenditures from continuing operations | 52.6 | 64.5 | 78 | ||||||||||||
Depreciation, Depletion and Amortization | $ 88.6 | $ 84.5 | $ 82.7 | ||||||||||||
[1] | (A) The prior period amounts presented have 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 of $12.9 million, $13.5 million, $19.2 million and $19.4 million for the first quarter, second quarter, third quarter and fourth quarter, respectively. Refer to Note 1 to our consolidated financial statements for more information on this revision. |
Financial Data By Segment Finan
Financial Data By Segment Financial Data By Geographic Area Segment Table (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | $ 3,376.8 | $ 4,047.8 | $ 3,669.5 | $ 3,495.7 | $ 3,479.3 | [1] | $ 3,828.2 | $ 3,492.4 | $ 3,310.3 | $ 14,589.8 | $ 14,110.2 | $ 13,274.2 | |||
Total assets | 39,165.5 | 41,887.7 | 39,165.5 | 41,887.7 | 38,849.1 | ||||||||||
United States [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | 12,740.1 | 12,262.6 | 11,439.8 | ||||||||||||
Total assets | 33,891 | 36,508.3 | 33,891 | 36,508.3 | 33,586.6 | ||||||||||
Europe [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | 1,236.3 | 1,236.8 | 1,242.2 | ||||||||||||
Total assets | 2,162.7 | 2,807.9 | 2,162.7 | 2,807.9 | 2,608.6 | ||||||||||
CANADA [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | 329.8 | 326.6 | 321.6 | ||||||||||||
Total assets | 2,435.3 | 1,950.5 | 2,435.3 | 1,950.5 | 2,073.1 | ||||||||||
Other [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | 283.6 | 284.2 | 270.6 | ||||||||||||
Total assets | $ 676.5 | $ 621 | $ 676.5 | $ 621 | $ 580.8 | ||||||||||
[1] | (A) The prior period amounts presented have 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 of $12.9 million, $13.5 million, $19.2 million and $19.4 million for the first quarter, second quarter, third quarter and fourth quarter, respectively. Refer to Note 1 to our consolidated financial statements for more information on this revision. |
Financial Data By Segment - Nar
Financial Data By Segment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | $ 3,376.8 | $ 4,047.8 | $ 3,669.5 | $ 3,495.7 | $ 3,479.3 | $ 3,828.2 | $ 3,492.4 | $ 3,310.3 | $ 14,589.8 | $ 14,110.2 | $ 13,274.2 | ||||
Restatement Adjustment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | (65) | (53.5) | |||||||||||||
United States [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | $ 12,740.1 | $ 12,262.6 | $ 11,439.8 | ||||||||||||
[1] | (A) The prior period amounts presented have 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 of $12.9 million, $13.5 million, $19.2 million and $19.4 million for the first quarter, second quarter, third quarter and fourth quarter, respectively. Refer to Note 1 to our consolidated financial statements for more information on this revision. |
Quarterly Financial Results (_3
Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |||||
Summarized Quarterly Results of Continuing Operations [Abstract] | |||||||||||||||
Cost of Goods and Services Sold | $ 2,067.2 | $ 2,239.1 | $ 2,094.1 | $ 2,044.8 | $ 2,001.1 | [1] | $ 2,092.6 | [1] | $ 2,000.2 | [1] | $ 1,927.6 | [1] | $ 8,445.1 | $ 8,021.6 | $ 7,757.4 |
Revenues | 3,376.8 | 4,047.8 | 3,669.5 | 3,495.7 | 3,479.3 | [1] | 3,828.2 | [1] | 3,492.4 | [1] | 3,310.3 | [1] | 14,589.8 | 14,110.2 | 13,274.2 |
Gross profit | 1,309.6 | 1,808.7 | 1,575.4 | 1,450.9 | 1,478.2 | 1,735.6 | 1,492.2 | 1,382.7 | |||||||
Earnings before income taxes | 531.3 | 1,076.7 | 835.5 | 739.1 | 633.3 | 984.5 | 741 | 646.8 | 3,182.6 | 3,005.6 | 2,282.6 | ||||
Net earnings | $ 411.5 | $ 820.9 | $ 651.6 | $ 582.4 | $ 475.5 | $ 753.7 | $ 558.2 | $ 505.4 | $ 2,466.5 | $ 2,292.8 | $ 1,884.9 | ||||
Basic earnings per share (in dollars per share) | $ 0.96 | $ 1.91 | $ 1.51 | $ 1.35 | $ 1.10 | $ 1.74 | $ 1.28 | $ 1.16 | $ 5.73 | $ 5.27 | $ 4.28 | ||||
Diluted earnings per share (in dollars per share) | $ 0.96 | $ 1.90 | $ 1.50 | $ 1.34 | $ 1.09 | $ 1.73 | $ 1.27 | $ 1.15 | $ 5.70 | $ 5.24 | $ 4.25 | ||||
PEO Revision Adjustment | $ 19.4 | $ 19.2 | $ 13.5 | $ 12.9 | |||||||||||
[1] | (A) The prior period amounts presented have 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 of $12.9 million, $13.5 million, $19.2 million and $19.4 million for the first quarter, second quarter, third quarter and fourth quarter, respectively. Refer to Note 1 to our consolidated financial statements for more information on this revision. |
Leases, Codification Topic 84_2
Leases, Codification Topic 842 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jul. 01, 2019 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 11 years | ||
Operating Lease, Cost | $ 163.7 | ||
Short-term Lease, Cost | 6.1 | ||
Variable Lease, Cost | 6.7 | ||
Lease, Cost | 176.5 | ||
Operating Lease, Payments | 224.7 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 160.4 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 2.30% | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | $ 90.8 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 78 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 57.9 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 42.6 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 96.7 | ||
Lessee, Operating Lease, Liability, Payments, Due | 471.6 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (31.7) | ||
Operating Lease, Liability | 439.9 | ||
Operating lease liabilities | $ 522.6 | $ 0 | |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 105.6 | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 105.6 | ||
Accrued Expenses And Other Current Liabilities [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Liability, Current | 95.5 | ||
Other Liabilities [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities | 344.4 | ||
International [Domain] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Impairment Loss | $ 2.2 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jul. 15, 2020 | Jun. 30, 2020 | Jun. 30, 2019 |
Subsequent Event [Line Items] | |||
Notes Payable | $ 2,008.4 | $ 2,010.9 | |
Notes due on 2020 [Member] | |||
Subsequent Event [Line Items] | |||
Notes Payable | $ 1,000 | ||
Subsequent Event [Member] | Notes due on 2020 [Member] | |||
Subsequent Event [Line Items] | |||
Notes Payable | $ 1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% |
Valuation and Qualiying Accou_2
Valuation and Qualiying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 31,627 | $ 46,006 | $ 9,406 | |
Charged to costs and expenses | (18,953) | 7,171 | 38,937 | |
Charged to other accounts | [1] | (204) | (20,685) | (325) |
Deductions | (479) | (865) | (2,013) | |
Balance at end of period | 11,992 | 31,627 | 46,006 | |
Current [Member] | SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | 54,850 | 51,342 | 49,561 | |
Charged to costs and expenses | 65,069 | 28,177 | 21,443 | |
Charged to other accounts | [1] | (4,536) | 5,165 | 5,546 |
Deductions | [2] | (22,911) | (29,834) | (25,208) |
Balance at end of period | 92,472 | 54,850 | 51,342 | |
Non-current [Member] | SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | 505 | 510 | 803 | |
Charged to costs and expenses | 0 | 0 | 0 | |
Charged to other accounts | [1] | 44 | (5) | (293) |
Deductions | [2] | 0 | 0 | 0 |
Balance at end of period | $ 549 | $ 505 | $ 510 | |
[1] | Includes amounts related to foreign exchange fluctuation. | |||
[2] | Doubtful accounts written off, less recoveries on accounts previously written off |