XML 59 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Financial Data By Segment
 6 Months Ended
Dec. 31, 2013
Interim Financial Data By Segment [Abstract]  
Interim Financial Data By Segment
Note 16. Interim Financial Data by Segment

Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following three reportable segments: Employer Services, PEO Services, and Dealer Services.  The primary components of the “Other” segment are the results of operations of ADP Indemnity (a wholly-owned captive insurance company that provides workers’ compensation and employer’s liability deductible reimbursement insurance protection for PEO Services worksite employees), non-recurring gains and losses, miscellaneous processing services, such as customer financing transactions, and certain charges and expenses that have not been allocated to the reportable segments, such as stock-based compensation 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.  There is a reconciling item for the difference between actual interest income earned on invested funds held for clients and interest credited to Employer Services and PEO Services at a standard rate of 4.5%. This allocation is made for management reasons so that the reportable segments' results are presented on a consistent basis without the impact of fluctuations in interest rates. This reconciling adjustment to the reportable segments' revenues and earnings from continuing operations before income taxes is eliminated in consolidation.

To align financial reporting with the manner in which the Company's chief operating decision maker assesses performance and makes decisions about resources to be allocated to the reportable segments, effective July 1, 2013, the Company no longer allocates a cost of capital charge to its reportable segments and no longer adjusts the operating results of its reportable segments on a constant exchange rate basis.  As a result of these changes, all prior period amounts have been reclassified to conform to the current period presentation.  These changes did not significantly affect reportable segment results.


Segment Results:
 
Revenues from Continuing Operations
 
Three Months Ended
 
Six Months Ended
 
December 31,
 
December 31,
 
2013
 
2012
 
2013
 
2012
Employer Services
$
2,087.0

 
$
1,918.2

 
$
4,055.0

 
$
3,737.1

PEO Services
531.1

 
465.7

 
1,036.1

 
917.6

Dealer Services
484.2

 
452.5

 
957.0

 
892.6

Other
(0.2
)
 
0.5

 
0.1

 
1.2

Reconciling item:
 
 
 
 
 
 
 
Client fund interest
(119.3
)
 
(89.1
)
 
(225.7
)
 
(163.2
)
 
$
2,982.8

 
$
2,747.8

 
$
5,822.5

 
$
5,385.3

  
 
Earnings from Continuing Operations before Income Taxes
 
Three Months Ended
 
Six Months Ended
 
December 31,
 
December 31,
 
2013
 
2012
 
2013
 
2012
Employer Services
$
595.8

 
$
514.6

 
$
1,118.4

 
$
969.7

PEO Services
59.5

 
49.9

 
111.3

 
96.2

Dealer Services
104.7

 
96.2

 
201.5

 
182.1

Other
(79.6
)
 
(42.8
)
 
(147.1
)
 
(90.4
)
Reconciling item:
 
 
 
 
 
 
 

Client fund interest
(119.3
)
 
(89.1
)
 
(225.7
)
 
(163.2
)
 
$
561.1

 
$
528.8

 
$
1,058.4

 
$
994.4



During the three months ended December 31, 2013 and 2012, Dealer Services earned 13% and 12%, respectively, of its segment revenues from one client and earned 12% of its segment revenues from one client during the six months ended December 31, 2013 and 2012. The Company did not have any customers that individually accounted for more than 10% of the Company's consolidated revenue from continuing operations.