Interim Financial Data by Segment

6 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Interim Financial Data by Segment

Interim Financial Data by Segment

Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. The primary components of the “Other” segment are the results of operations of ADP Indemnity (a wholly-owned captive insurance company that provides workers’ compensation and employee’s liability deductible reimbursement insurance protection for PEO Services’ worksite employees), non-recurring gains and losses, miscellaneous processing services, the elimination of intercompany transactions, interest expense, certain charges and expenses that have not been allocated to the reportable segments, and the historical results of the AMD business. Beginning in the first quarter of fiscal 2017, the Company's chief operating decision maker began reviewing the Company's results with stock-based compensation included in the Company's operating segments. This change, as well as changes to the allocation methodology for certain allocations, has been adjusted in both the current period and the prior period in the table below, and did not materially affect reportable segment results.

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.

Segment Results:

	Revenues from Continuing Operations
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2016			2015			2016			2015
Employer Services	$	2,309.3		$	2,212.6		$	4,570.6		$	4,343.4
PEO Services	822.9			737.4			1,617.6			1,438.9
Other	(2.3		)	(2.9		)	(6.0		)	7.8
Reconciling item:
Client fund interest	(142.6		)	(140.1		)	(278.0		)	(269.1		)
	$	2,987.3		$	2,807.0		$	5,904.2		$	5,521.0

	Earnings from Continuing Operations before Income Taxes
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2016			2015			2016			2015
Employer Services	$	681.8		$	619.7		$	1,338.4		$	1,190.0
PEO Services	114.5			93.7			221.5			182.0
Other	132.5			(65.4		)	32.9			(90.0		)
Reconciling item:
Client fund interest	(142.6		)	(140.1		)	(278.0		)	(269.1		)
	$	786.2		$	507.9		$	1,314.8		$	1,012.9