[X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE | |
SECURITIES EXCHANGE ACT OF 1934 | ||
For the fiscal year ended June 30, 2018 | ||
OR | ||
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE | |
SECURITIES EXCHANGE ACT OF 1934 | ||
Commission File Number 1-5397 |
Delaware | 22-1467904 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
One ADP Boulevard, Roseland, New Jersey | 07068 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: 973-974-5000 | |
Securities registered pursuant to Section 12(b) of the Act: | |
Title of each class | Name of each exchange on which registered |
Common Stock, $0.10 Par Value (voting) | NASDAQ Global Select Market |
Large accelerated filer [x] | Accelerated filer [ ] | |
Non-accelerated filer [ ] | (Do not check if a smaller reporting company) | Smaller reporting company [ ] |
Emerging growth company [ ] |
Portions of the Registrant's Proxy Statement for its 2018 Annual Meeting of Stockholders. | Part III |
Page | ||
Part I | ||
Item 1. | Business | |
Item 1A. | Risk Factors | |
Item 1B. | Unresolved Staff Comments | |
Item 2. | Properties | |
Item 3. | Legal Proceedings | |
Item 4. | Mine Safety Disclosures | |
Part II | ||
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities | |
Item 6. | Selected Financial Data | |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 8. | Financial Statements and Supplementary Data | |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
Item 9A. | Controls and Procedures | |
Item 9B. | Other Information | |
Part III | ||
Item 10. | Directors, Executive Officers and Corporate Governance | |
Item 11. | Executive Compensation | |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |
Item 14. | Principal Accounting Fees and Services | |
Part IV. | ||
Item 15. | Exhibits, Financial Statement Schedules | |
Signatures | ||
• | Grow a complete suite of cloud-based HCM solutions; |
• | Grow and scale our market-leading HR Outsourcing (“HRO”) solutions by leveraging our platforms and processes; and |
• | Leverage our global presence to offer clients HCM solutions where ever they do business. |
• | Payroll Services |
• | Benefits Administration |
• | Talent Management |
• | HR Management |
• | Time and Attendance Management |
• | Insurance Services |
• | Retirement Services |
• | Compliance Services |
• | RUN Powered by ADP® is used by more than 570,000 small businesses in the United States. It combines a software platform for managing small business payroll, HR management and tax compliance administration, with 24/7 service and support from our team of small business experts. RUN Powered by ADP also integrates with other ADP solutions, such as time and attendance management, workers’ compensation insurance premium payment plans, and retirement plan administration systems. |
• | ADP Workforce Now® is a flexible HCM solution used by more than 60,000 mid-sized and large businesses in North America to manage their employees. More businesses use ADP Workforce Now than any other HCM solution designed for both mid-sized and large businesses. |
• | ADP Vantage HCM® is a solution for large enterprises in the United States. It offers a comprehensive set of HCM capabilities within a single solution that unifies the five major areas of HCM: HR management, benefits administration, payroll services, time and attendance management, and talent management. |
• | ADP GlobalView® HCM is a solution for multinational organizations of all sizes. As an integrated and flexible infrastructure supported by a team of experts, ADP GlobalView HCM allows companies of all sizes – from those with small and mid-sized operations to the largest multinational corporations – to standardize their HCM strategies globally (including payroll, HR, talent, time and labor, and benefits management) and adapt to changing local needs, while helping to drive overall organizational agility and engagement. |
• | Outside the United States, ADP offers comprehensive HCM solutions on local, country-specific platforms. These suites of services offer various combinations of payroll services, HR management, time and attendance management, talent management and benefits management, depending on the country in which the solution is provided. |
• | Tax Credits. ADP helps clients in the United States take advantage of tax credit and incentive opportunities as they hire new employees. |
• | Health Compliance. ADP helps businesses manage crucial employer-related elements of the U.S. Patient Protection and Affordable Care Act (the "Affordable Care Act"). |
• | Wage Garnishments. ADP offers an integrated solution to help our clients manage the wage garnishment process through integration with their payroll systems. |
• | Employment Verification. ADP offers an automated solution to securely verify employment and income. |
• | Unemployment Claims. ADP offers a single-source solution to help manage the entire unemployment claims process in the United States. |
• | employee recruitment |
• | payroll and tax administration |
• | time and attendance management |
• | benefits administration |
• | employee training and development |
• | online HR management tools |
• | employee leave administration |
• | group health, dental and vision coverage |
• | a 401(k) retirement savings plan |
• | health savings accounts |
• | flexible spending accounts |
• | group term life and disability coverage |
• | an employee assistance program |
• | a workers’ compensation program |
• | unemployment claims management |
• | safety compliance guidance and access to safety training |
• | access to employment practices liability insurance |
• | guidance on compliance with U.S. federal, state and local employment laws and regulations |
Price Per Share | Dividends | ||||
High | Low | Per Share | |||
Fiscal 2018 quarter ended | |||||
June 30 | $141.52 | $111.78 | $0.690 | ||
March 31 | $125.24 | $107.61 | $0.630 | ||
December 31 | $119.39 | $108.53 | $0.630 | ||
September 30 | $121.77 | $100.51 | $0.570 | ||
Fiscal 2017 quarter ended | |||||
June 30 | $105.68 | $95.50 | $0.570 | ||
March 31 | $104.61 | $93.07 | $0.570 | ||
December 31 | $102.73 | $84.03 | $0.570 | ||
September 30 | $93.82 | $84.75 | $0.530 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of the Publicly Announced Common Stock Repurchase Plan (2) | Maximum Number of Shares that may yet be Purchased under the Common Stock Repurchase Plan (2) |
April 1, 2018 to April 30, 2018 | 1,263,686 | $116.50 | 1,262,037 | 18,346,131 |
May 1, 2018 to May 31, 2018 | 1,048,326 | $126.92 | 1,048,045 | 17,298,086 |
June 1, 2018 to June 30, 2018 | 828,868 | $135.98 | 816,211 | 16,481,875 |
Total | 3,140,880 | 3,126,293 |
(1) | Pursuant to the terms of the Company’s restricted stock program, the Company purchased 14,587 shares at the then market value of the shares in connection with the exercise by employees of their option under such program to satisfy certain tax withholding requirements through the delivery of shares to the Company instead of cash. | |
(2) | The Company received the Board of Directors' approval to repurchase shares of the Company's common stock as follows: |
Date of Approval | Shares | |
August 2015 | 25 million |
(a) | On September 30, 2014, the Company completed the spinoff of its former Dealer Services business into an independent publicly traded company called CDK Global, Inc. The cumulative returns of the Company’s common stock have been adjusted to reflect the spinoff. |
(b) | We use the S&P 500 Information Technology Index as our Peer Group Index. The S&P 500 Information Technology Index is a broad index that includes the Company and several competitors. |
(Dollars and shares in millions, except per share amounts) | ||||||||||||||||||||
Years ended June 30, | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Total revenues | $ | 13,325.8 | $ | 12,379.8 | $ | 11,667.8 | $ | 10,938.5 | $ | 10,226.4 | ||||||||||
Total costs of revenues | $ | 7,842.6 | $ | 7,269.8 | $ | 6,840.3 | $ | 6,427.6 | $ | 6,041.0 | ||||||||||
Earnings from continuing operations before income taxes | $ | 2,171.1 | $ | 2,531.1 | $ | 2,234.7 | $ | 2,070.7 | $ | 1,879.2 | ||||||||||
Net earnings from continuing operations | $ | 1,620.8 | $ | 1,733.4 | $ | 1,493.4 | $ | 1,376.5 | $ | 1,242.6 | ||||||||||
Adjusted earnings from continuing operations before interest and income taxes (A) | $ | 2,643.1 | $ | 2,447.6 | $ | 2,274.2 | $ | 2,061.5 | $ | 1,870.3 | ||||||||||
Adjusted net earnings from continuing operations (A) | $ | 1,928.1 | $ | 1,665.0 | $ | 1,494.8 | $ | 1,376.5 | $ | 1,242.6 | ||||||||||
Basic earnings per share from continuing operations | $ | 3.68 | $ | 3.87 | $ | 3.27 | $ | 2.91 | $ | 2.59 | ||||||||||
Diluted earnings per share from continuing operations | $ | 3.66 | $ | 3.85 | $ | 3.25 | $ | 2.89 | $ | 2.57 | ||||||||||
Adjusted diluted earnings per share from continuing operations (A) | $ | 4.35 | $ | 3.70 | $ | 3.26 | $ | 2.89 | $ | 2.57 | ||||||||||
Basic weighted average shares outstanding | 440.6 | 447.8 | 457.0 | 472.6 | 478.9 | |||||||||||||||
Diluted weighted average shares outstanding | 443.3 | 450.3 | 459.1 | 475.8 | 483.1 | |||||||||||||||
Cash dividends declared per share | $ | 2.52 | $ | 2.24 | $ | 2.08 | $ | 1.95 | $ | 1.88 | ||||||||||
At year end: | ||||||||||||||||||||
Cash, cash equivalents and marketable securities of continuing operations | $ | 2,180.5 | $ | 2,791.2 | $ | 3,222.4 | $ | 1,694.8 | $ | 3,670.3 | ||||||||||
Total assets of continuing operations | $ | 37,088.7 | $ | 37,180.0 | $ | 43,670.0 | $ | 33,110.5 | $ | 29,629.6 | ||||||||||
Total assets | $ | 37,088.7 | $ | 37,180.0 | $ | 43,670.0 | $ | 33,110.5 | $ | 32,059.8 | ||||||||||
Obligations under commercial paper borrowings | $ | — | $ | — | $ | — | $ | — | $ | 2,173.0 | ||||||||||
Long-term debt | $ | 2,002.4 | $ | 2,002.4 | $ | 2,007.7 | $ | 9.2 | $ | 11.5 | ||||||||||
Stockholders’ equity | $ | 3,459.6 | $ | 3,977.0 | $ | 4,481.6 | $ | 4,808.5 | $ | 6,670.2 |
Adjusted Financial Measure | U.S. GAAP Measures | Adjustments/Explanation - as applicable in the periods |
Adjusted EBIT from continuing operations | Net earnings from continuing operations | - Provision for income taxes - Gains/losses on sales of businesses and assets - All other interest expense and income - Transformation initiatives - Non-operational costs related to proxy contest matters See footnotes (a), (b), and (c) |
Adjusted net earnings from continuing operations | Net earnings from continuing operations | Pre-tax and tax impacts of: - Gains/losses on sales of businesses and assets - Transformation initiatives - Non-operational costs related to proxy contest matters - Tax Cuts and Jobs Act See footnotes (b), (c), (d), (e) and (f) |
Adjusted provision for income taxes | Provision for income taxes | Tax impacts of: - Gains/losses on sales of businesses and assets - Transformation initiatives - Non-operational costs related to proxy contest matters - Tax Cuts and Jobs Act See footnotes (c), (d), (e), and (f) |
Adjusted diluted earnings per share from continuing operations | Diluted earnings per share | EPS impacts of: - Gains/losses on sales of businesses and assets - Transformation initiatives - Non-operational costs related to proxy contest matters - Tax Cuts and Jobs Act See footnotes (b), (c), and (f) |
Adjusted effective tax rate | Effective tax rate | See footnote (g) |
Constant Currency Basis | U.S. GAAP P&L line items | See footnote (h) |
(Dollars and shares in millions, except per share amounts) | ||||||||||||||||||||
Years ended June 30, | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Net earnings from continuing operations | $ | 1,620.8 | $ | 1,733.4 | $ | 1,493.4 | $ | 1,376.5 | $ | 1,242.6 | ||||||||||
Adjustments: | ||||||||||||||||||||
Provision for income taxes | 550.3 | 797.7 | 741.3 | 694.2 | 636.6 | |||||||||||||||
All other interest expense (a) | 59.4 | 59.3 | 47.9 | 1.5 | 1.6 | |||||||||||||||
All other interest income (a) | (25.5 | ) | (22.4 | ) | (13.6 | ) | (10.7 | ) | (10.5 | ) | ||||||||||
Gain on sale of businesses | — | (205.4 | ) | (29.1 | ) | — | — | |||||||||||||
Gain on sale of assets | — | — | (13.9 | ) | — | — | ||||||||||||||
Transformation initiatives (b) | 404.8 | 85.0 | 48.2 | — | — | |||||||||||||||
Proxy contest matters (c) | 33.3 | — | — | — | — | |||||||||||||||
Adjusted EBIT from continuing operations | $ | 2,643.1 | $ | 2,447.6 | $ | 2,274.2 | $ | 2,061.5 | $ | 1,870.3 | ||||||||||
Net earnings from continuing operations | $ | 1,620.8 | $ | 1,733.4 | $ | 1,493.4 | $ | 1,376.5 | $ | 1,242.6 | ||||||||||
Adjustments: | ||||||||||||||||||||
Gain on sale of businesses | — | (205.4 | ) | (29.1 | ) | — | — | |||||||||||||
Provision for income taxes on gain on sale of business (d) | — | 84.0 | 7.3 | — | — | |||||||||||||||
Gain on sale of assets | — | — | (13.9 | ) | — | — | ||||||||||||||
Provision for income taxes on gain on sale of assets (e) | — | — | 5.3 | — | — | |||||||||||||||
Transformation initiatives (b) | 404.8 | 85.0 | 48.2 | — | — | |||||||||||||||
Income tax benefit for transformation initiatives (e) | (122.1 | ) | (32.0 | ) | (16.4 | ) | — | — | ||||||||||||
Proxy contest matters (c) | 33.3 | — | — | — | — | |||||||||||||||
Income tax benefit for proxy contest matters (e) | (10.4 | ) | — | — | — | — | ||||||||||||||
Tax Cuts and Jobs Act (f) | 1.7 | — | — | — | — | |||||||||||||||
Adjusted net earnings from continuing operations | $ | 1,928.1 | $ | 1,665.0 | $ | 1,494.8 | $ | 1,376.5 | $ | 1,242.6 | ||||||||||
Diluted earnings per share from continuing operations | $ | 3.66 | $ | 3.85 | $ | 3.25 | $ | 2.89 | $ | 2.57 | ||||||||||
Adjustments: | ||||||||||||||||||||
Gain on sale of businesses | — | (0.27 | ) | (0.05 | ) | — | — | |||||||||||||
Gain on sale of assets | — | — | (0.02 | ) | — | — | ||||||||||||||
Transformation initiatives (b) | 0.64 | 0.12 | 0.07 | — | — | |||||||||||||||
Proxy contest matters (c) | 0.05 | — | — | — | — | |||||||||||||||
Tax Cuts and Jobs Act (f) | — | — | — | — | — | |||||||||||||||
Adjusted diluted earnings per share from continuing operations | $ | 4.35 | $ | 3.70 | $ | 3.26 | $ | 2.89 | $ | 2.57 |
• | Worldwide new business bookings increased 8% to $1.8 billion |
• | Revenue grew 8% in fiscal 2018; Diluted earnings per share ("EPS") decreased 5% to $3.66, while adjusted diluted EPS increased 18% to $4.35 |
• | Our shareholder friendly actions continued as we raised our quarterly declared cash dividend by 21% and returned approximately $2.1 billion to shareholders via dividends and share repurchases |
• | Completed migrations of our mid-market clients to latest version of Workforce Now |
• | Executed on a VERP and created a Transformation Office to continue driving broad-based transformation initiatives |
Years Ended | % Change | |||||||||||||||||||||||
June 30, | As Reported | Constant Currency Basis | ||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Total revenues | $ | 13,325.8 | $ | 12,379.8 | $ | 11,667.8 | 8 | % | 6 | % | 7 | % | 6 | % | ||||||||||
Costs of revenues: | ||||||||||||||||||||||||
Operating expenses | 6,937.9 | 6,416.1 | 6,025.0 | 8 | % | 6 | % | 7 | % | 7 | % | |||||||||||||
Systems development and programming costs | 630.2 | 627.5 | 603.7 | — | % | 4 | % | (1 | )% | 4 | % | |||||||||||||
Depreciation and amortization | 274.5 | 226.2 | 211.6 | 21 | % | 7 | % | 20 | % | 7 | % | |||||||||||||
Total costs of revenues | 7,842.6 | 7,269.8 | 6,840.3 | 8 | % | 6 | % | 7 | % | 7 | % | |||||||||||||
Selling, general and administrative costs | 2,971.5 | 2,783.2 | 2,637.0 | 7 | % | 6 | % | 6 | % | 6 | % | |||||||||||||
Interest expense | 102.7 | 80.0 | 56.2 | n/m | n/m | n/m | n/m | |||||||||||||||||
Total expenses | 10,916.8 | 10,133.0 | 9,533.5 | 8 | % | 6 | % | 7 | % | 7 | % | |||||||||||||
Other expense/(income), net | 237.9 | (284.3 | ) | (100.4 | ) | n/m | n/m | n/m | n/m | |||||||||||||||
Earnings from continuing operations before income taxes | $ | 2,171.1 | $ | 2,531.1 | $ | 2,234.7 | (14 | )% | 13 | % | (15 | )% | 13 | % | ||||||||||
Margin | 16.3 | % | 20.4 | % | 19.2 | % | ||||||||||||||||||
Provision for income taxes | $ | 550.3 | $ | 797.7 | $ | 741.3 | (31 | )% | 8 | % | (32 | )% | 7 | % | ||||||||||
Effective tax rate | 25.3 | % | 31.5 | % | 33.2 | % | ||||||||||||||||||
Net earnings from continuing operations | $ | 1,620.8 | $ | 1,733.4 | $ | 1,493.4 | (6 | )% | 16 | % | (8 | )% | 16 | % | ||||||||||
Diluted earnings per share from continuing operations | $ | 3.66 | $ | 3.85 | $ | 3.25 | (5 | )% | 18 | % | (6 | )% | 18 | % |
Adjusted Financial Measure | U.S. GAAP Measures | Adjustments/Explanation - as applicable in the periods |
Adjusted EBIT from continuing operations | Net earnings from continuing operations | - Provision for income taxes - Gains/losses on sales of businesses and assets - All other interest expense and income - Transformation initiatives - Non-operational costs related to proxy contest matters See footnotes (a), (b), and (c) |
Adjusted net earnings from continuing operations | Net earnings from continuing operations | Pre-tax and tax impacts of: - Gains/losses on sales of businesses and assets - Transformation initiatives - Non-operational costs related to proxy contest matters - Tax Cuts and Jobs Act See footnotes (b), (c), (d), (e) and (f) |
Adjusted provision for income taxes | Provision for income taxes | Tax impacts of: - Gains/losses on sales of businesses and assets - Transformation initiatives - Non-operational costs related to proxy contest matters - Tax Cuts and Jobs Act See footnotes (c), (d), (e), and (f) |
Adjusted diluted earnings per share from continuing operations | Diluted earnings per share | EPS impacts of: - Gains/losses on sales of businesses and assets - Transformation initiatives - Non-operational costs related to proxy contest matters - Tax Cuts and Jobs Act See footnotes (b), (c), and (f) |
Adjusted effective tax rate | Effective tax rate | See footnote (g) |
Constant Currency Basis | U.S. GAAP P&L line items | See footnote (h) |
Years Ended | % Change | |||||||||||||||||||||||
June 30, | As Reported | Constant Currency Basis (h) | ||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Net earnings from continuing operations | $ | 1,620.8 | $ | 1,733.4 | $ | 1,493.4 | (6 | )% | 16 | % | (8 | )% | 16 | % | ||||||||||
Adjustments: | ||||||||||||||||||||||||
Provision for income taxes | 550.3 | 797.7 | 741.3 | |||||||||||||||||||||
All other interest expense (a) | 59.4 | 59.3 | 47.9 | |||||||||||||||||||||
All other interest income (a) | (25.5 | ) | (22.4 | ) | (13.6 | ) | ||||||||||||||||||
Gain on sale of businesses | — | (205.4 | ) | (29.1 | ) | |||||||||||||||||||
Gain on sale of assets | — | — | (13.9 | ) | ||||||||||||||||||||
Transformation initiatives (b) | 404.8 | 85.0 | 48.2 | |||||||||||||||||||||
Proxy contest matters (c) | 33.3 | — | — | |||||||||||||||||||||
Adjusted EBIT from continuing operations | $ | 2,643.1 | $ | 2,447.6 | $ | 2,274.2 | 8 | % | 8 | % | 7 | % | 7 | % | ||||||||||
Adjusted EBIT Margin | 19.8 | % | 19.8 | % | 19.5 | % | ||||||||||||||||||
Provision for income taxes | $ | 550.3 | $ | 797.7 | $ | 741.3 | (31 | )% | 8 | % | (32 | )% | 7 | % | ||||||||||
Adjustments: | ||||||||||||||||||||||||
Gain on sale of businesses (d) | — | (84.0 | ) | (7.3 | ) | |||||||||||||||||||
Gain on sale of assets (e) | — | — | (5.3 | ) | ||||||||||||||||||||
Transformation initiatives (e) | 122.1 | 32.0 | 16.4 | |||||||||||||||||||||
Proxy contest matters (c) | 10.4 | — | — | |||||||||||||||||||||
Tax Cuts and Jobs Act (f) | (1.7 | ) | — | — | ||||||||||||||||||||
Adjusted provision for income taxes | $ | 681.1 | $ | 745.7 | $ | 745.1 | (9 | )% | — | % | (10 | )% | — | % | ||||||||||
Adjusted effective tax rate (g) | 26.1 | % | 30.9 | % | 33.3 | % | ||||||||||||||||||
Net earnings from continuing operations | $ | 1,620.8 | $ | 1,733.4 | $ | 1,493.4 | (6 | )% | 16 | % | (8 | )% | 16 | % | ||||||||||
Adjustments: | ||||||||||||||||||||||||
Gain on sale of businesses | — | (205.4 | ) | (29.1 | ) | |||||||||||||||||||
Provision for income taxes on gain on sale of business (d) | — | 84.0 | 7.3 | |||||||||||||||||||||
Gain on sale of assets | — | — | (13.9 | ) | ||||||||||||||||||||
Provision for income taxes on gain on sale of assets (e) | — | — | 5.3 | |||||||||||||||||||||
Transformation initiatives (b) | 404.8 | 85.0 | 48.2 | |||||||||||||||||||||
Income tax benefit for transformation initiatives (e) | (122.1 | ) | (32.0 | ) | (16.4 | ) | ||||||||||||||||||
Proxy contest matters (c) | 33.3 | — | — | |||||||||||||||||||||
Income tax benefit for proxy contest matters (e) | (10.4 | ) | — | — | ||||||||||||||||||||
Tax Cuts and Jobs Act (f) | 1.7 | — | — | |||||||||||||||||||||
Adjusted net earnings from continuing operations | $ | 1,928.1 | $ | 1,665.0 | $ | 1,494.8 | 16 | % | 11 | % | 15 | % | 11 | % | ||||||||||
Diluted earnings per share from continuing operations | $ | 3.66 | $ | 3.85 | $ | 3.25 | (5 | )% | 18 | % | (6 | )% | 18 | % | ||||||||||
Adjustments: | ||||||||||||||||||||||||
Gain on sale of businesses | — | (0.27 | ) | (0.05 | ) | |||||||||||||||||||
Gain on sale of assets | — | — | (0.02 | ) | ||||||||||||||||||||
Transformation initiatives (b) | 0.64 | 0.12 | 0.07 | |||||||||||||||||||||
Proxy contest matters (c) | 0.05 | — | — | |||||||||||||||||||||
Tax Cuts and Jobs Act (f) | — | — | — | |||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations | $ | 4.35 | $ | 3.70 | $ | 3.26 | 18 | % | 13 | % | 16 | % | 13 | % |
(In millions) | ||||||||||||
Years ended June 30, | 2018 | 2017 | $ Change | |||||||||
Interest income on corporate funds | $ | (83.5 | ) | $ | (76.7 | ) | $ | 6.8 | ||||
Realized gains on available-for-sale securities | (2.0 | ) | (5.3 | ) | (3.3 | ) | ||||||
Realized losses on available-for-sale securities | 4.5 | 3.1 | (1.4 | ) | ||||||||
Gain on sale of businesses (see Note 3 of the Consolidated Financial Statements) | — | (205.4 | ) | (205.4 | ) | |||||||
Gain on sale of assets | (0.7 | ) | — | 0.7 | ||||||||
Voluntary Early Retirement Program (see Note 11 of the Consolidated Financial Statements) | 319.6 | — | (319.6 | ) | ||||||||
Other expense/(income), net | $ | 237.9 | $ | (284.3 | ) | $ | (522.2 | ) |
(In millions) | ||||||||||||
Years ended June 30, | 2017 | 2016 | $ Change | |||||||||
Interest income on corporate funds | $ | (76.7 | ) | $ | (62.4 | ) | $ | 14.3 | ||||
Realized gains on available-for-sale securities | (5.3 | ) | (5.1 | ) | 0.2 | |||||||
Realized losses on available-for-sale securities | 3.1 | 10.1 | 7.0 | |||||||||
Gain on sale of businesses (see Note 3 of the Consolidated Financial Statements) | (205.4 | ) | (29.1 | ) | 176.3 | |||||||
Gain on sale of assets | — | (13.9 | ) | (13.9 | ) | |||||||
Other income, net | $ | (284.3 | ) | $ | (100.4 | ) | $ | 183.9 |
Years Ended | % Change | |||||||||||||||||||||||
June 30, | As Reported | Constant Currency Basis | ||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Employer Services | $ | 10,057.8 | $ | 9,535.2 | $ | 9,211.9 | 5 | % | 4 | % | 4 | % | 4 | % | ||||||||||
PEO Services | 3,896.6 | 3,483.6 | 3,073.1 | 12 | % | 13 | % | 12 | % | 13 | % | |||||||||||||
Other | (9.4 | ) | (10.6 | ) | 1.9 | n/m | n/m | n/m | n/m | |||||||||||||||
Reconciling item: | ||||||||||||||||||||||||
Client fund interest | (619.2 | ) | (628.4 | ) | (619.1 | ) | n/m | n/m | n/m | n/m | ||||||||||||||
$ | 13,325.8 | $ | 12,379.8 | $ | 11,667.8 | 8 | % | 6 | % | 7 | % | 6 | % |
Years Ended | % Change | |||||||||||||||||||||||
June 30, | As Reported | Constant Currency Basis | ||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Employer Services | $ | 3,087.4 | $ | 2,918.5 | $ | 2,798.4 | 6 | % | 4 | % | 5 | % | 4 | % | ||||||||||
PEO Services | 504.2 | 448.6 | 371.2 | 12 | % | 21 | % | 12 | % | 21 | % | |||||||||||||
Other | (801.3 | ) | (207.6 | ) | (315.8 | ) | n/m | n/m | n/m | n/m | ||||||||||||||
Reconciling item: | ||||||||||||||||||||||||
Client fund interest | (619.2 | ) | (628.4 | ) | (619.1 | ) | n/m | n/m | n/m | n/m | ||||||||||||||
$ | 2,171.1 | $ | 2,531.1 | $ | 2,234.7 | (14 | )% | 13 | % | (15 | )% | 13 | % |
(In millions) | Years ended June 30, | $ Change | ||||||||||||||||||
2018 | 2017 *As Adjusted | 2016 *As Adjusted | 2018 | 2017 | ||||||||||||||||
Cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 2,515.2 | $ | 2,125.9 | $ | 1,897.3 | $ | 389.3 | $ | 228.6 | ||||||||||
Investing activities | (2,504.6 | ) | (1,113.2 | ) | (869.0 | ) | (1,391.4 | ) | (244.2 | ) | ||||||||||
Financing activities | (1,655.9 | ) | (8,281.7 | ) | 8,752.7 | 6,625.8 | (17,034.4 | ) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 5.8 | (8.0 | ) | (8.7 | ) | 13.8 | 0.7 | |||||||||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | (1,639.5 | ) | $ | (7,277.0 | ) | $ | 9,772.3 | $ | 5,637.5 | $ | (17,049.3 | ) |
(In millions) | Payments due by period | |||||||||||||||||||||||
Contractual Obligations | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Unknown | Total | ||||||||||||||||||
Debt Obligations (1) | $ | 58.4 | $ | 1,105.2 | $ | 69.4 | $ | 1,089.4 | $ | — | $ | 2,322.4 | ||||||||||||
Operating Lease Obligations (2) | $ | 107.1 | $ | 179.2 | $ | 106.5 | $ | 146.7 | $ | — | $ | 539.5 | ||||||||||||
Purchase Obligations (3) | $ | 363.0 | $ | 194.8 | $ | 18.4 | $ | 0.1 | $ | — | $ | 576.3 | ||||||||||||
Obligations Related to Unrecognized Tax Benefits (4) | $ | 23.4 | $ | — | $ | — | $ | — | $ | 21.8 | $ | 45.2 | ||||||||||||
Other Long-Term Liabilities Reflected on our Consolidated Balance Sheets: | ||||||||||||||||||||||||
Compensation and Benefits (5) | $ | 18.5 | $ | 250.5 | $ | 112.7 | $ | 223.8 | $ | 95.0 | $ | 700.5 | ||||||||||||
Acquisition-related obligations (6) | $ | 2.7 | $ | 2.7 | $ | — | $ | — | $ | — | $ | 5.4 | ||||||||||||
Total | $ | 573.1 | $ | 1,732.4 | $ | 307.0 | $ | 1,460.0 | $ | 116.8 | $ | 4,189.3 |
(1) | These amounts represent the principal and interest payments of our debt. |
(2) | Included in these amounts are various facilities and equipment leases. We enter into operating leases in the normal course of business relating to facilities and equipment. The majority of our lease agreements have fixed payment terms based on the passage of time. Certain facility and equipment leases require payment of maintenance and real estate taxes and contain escalation provisions based on future adjustments in price indices. Our future operating lease obligations could change if we exit certain contracts or if we enter into additional operating lease agreements. |
(3) | Purchase obligations are comprised of a $218.0 million reinsurance premium with Chubb for the fiscal 2019 policy year, as well as obligations related to software subscription licenses and purchase and maintenance agreements on our software, equipment, and other assets. |
(4) | Based on current estimates, we expect to make cash payments up to $23.4 million in the next twelve months for obligations related to unrecognized tax benefits across various jurisdictions and tax periods. For $21.8 million of obligations related to unrecognized tax benefits we are unable to make reasonably reliable estimates as to the period in which cash payments are expected to be paid. |
(5) | Compensation and benefits primarily relates to amounts associated with our employee benefit plans and other compensation arrangements. These amounts exclude the estimated contributions to our defined benefit plans, which are expected to be $8.3 million in fiscal 2019. |
(6) | Acquisition-related obligations relate to contingent consideration for a business acquisition for which the amount of contingent consideration was determinable at the date of acquisition and therefore included on the Consolidated Balance Sheet as a liability. |
(In millions) | ||||||||||||
Years ended June 30, | 2018 | 2017 | 2016 | |||||||||
Average investment balances at cost: | ||||||||||||
Corporate investments | $ | 5,112.4 | $ | 6,143.3 | $ | 5,610.1 | ||||||
Funds held for clients | 24,332.6 | 23,023.5 | 22,418.7 | |||||||||
Total | $ | 29,445.0 | $ | 29,166.8 | $ | 28,028.8 | ||||||
Average interest rates earned exclusive of realized (gains)/losses on: | ||||||||||||
Corporate investments | 1.6 | % | 1.2 | % | 1.1 | % | ||||||
Funds held for clients | 1.9 | % | 1.7 | % | 1.7 | % | ||||||
Total | 1.9 | % | 1.6 | % | 1.6 | % | ||||||
Realized gains on available-for-sale securities | $ | (2.0 | ) | $ | (5.3 | ) | $ | (5.1 | ) | |||
Realized losses on available-for-sale securities | 4.5 | 3.1 | 10.1 | |||||||||
Net realized losses/(gains) on available-for-sale securities | $ | 2.5 | $ | (2.2 | ) | $ | 5.0 |
As of June 30: | ||||||||||||
Net unrealized pre-tax (losses)/gains on available-for-sale securities | $ | (355.7 | ) | $ | 102.5 | $ | 510.2 | |||||
Total available-for-sale securities at fair value | $ | 22,776.2 | $ | 21,901.1 | $ | 21,605.0 |
/s/ Deloitte & Touche LLP |
Years ended June 30, | 2018 | 2017 | 2016 | |||||||||
REVENUES: | ||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ | 8,985.2 | $ | 8,518.1 | $ | 8,234.0 | ||||||
Interest on funds held for clients | 466.5 | 397.4 | 377.3 | |||||||||
PEO revenues (A) | 3,874.1 | 3,464.3 | 3,056.5 | |||||||||
TOTAL REVENUES | 13,325.8 | 12,379.8 | 11,667.8 | |||||||||
EXPENSES: | ||||||||||||
Costs of revenues: | ||||||||||||
Operating expenses | 6,937.9 | 6,416.1 | 6,025.0 | |||||||||
Systems development and programming costs | 630.2 | 627.5 | 603.7 | |||||||||
Depreciation and amortization | 274.5 | 226.2 | 211.6 | |||||||||
TOTAL COSTS OF REVENUES | 7,842.6 | 7,269.8 | 6,840.3 | |||||||||
Selling, general, and administrative expenses | 2,971.5 | 2,783.2 | 2,637.0 | |||||||||
Interest expense | 102.7 | 80.0 | 56.2 | |||||||||
TOTAL EXPENSES | 10,916.8 | 10,133.0 | 9,533.5 | |||||||||
Other expense/(income), net | 237.9 | (284.3 | ) | (100.4 | ) | |||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 2,171.1 | 2,531.1 | 2,234.7 | |||||||||
Provision for income taxes | 550.3 | 797.7 | 741.3 | |||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | $ | 1,620.8 | $ | 1,733.4 | $ | 1,493.4 | ||||||
LOSSES FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES | — | — | (1.4 | ) | ||||||||
Provision for income taxes | — | — | (0.5 | ) | ||||||||
NET LOSS FROM DISCONTINUED OPERATIONS | $ | — | $ | — | $ | (0.9 | ) | |||||
NET EARNINGS | $ | 1,620.8 | $ | 1,733.4 | $ | 1,492.5 | ||||||
Basic Earnings Per Share from Continuing Operations | $ | 3.68 | $ | 3.87 | $ | 3.27 | ||||||
Basic Earnings Per Share from Discontinued Operations | — | — | — | |||||||||
BASIC EARNINGS PER SHARE | $ | 3.68 | $ | 3.87 | $ | 3.27 | ||||||
Diluted Earnings Per Share from Continuing Operations | $ | 3.66 | $ | 3.85 | $ | 3.25 | ||||||
Diluted Earnings Per Share from Discontinued Operations | — | — | — | |||||||||
DILUTED EARNINGS PER SHARE | $ | 3.66 | $ | 3.85 | $ | 3.25 | ||||||
Basic weighted average shares outstanding | 440.6 | 447.8 | 457.0 | |||||||||
Diluted weighted average shares outstanding | 443.3 | 450.3 | 459.1 |
Years ended June 30, | 2018 | 2017 | 2016 | |||||||||
Net earnings | $ | 1,620.8 | $ | 1,733.4 | $ | 1,492.5 | ||||||
Other comprehensive income/loss: | ||||||||||||
Currency translation adjustments | 2.8 | 23.0 | (25.5 | ) | ||||||||
Unrealized net (losses)/gains on available-for-sale securities | (460.7 | ) | (405.7 | ) | 288.8 | |||||||
Tax effect | 123.4 | 141.6 | (102.2 | ) | ||||||||
Reclassification of net losses/(gains) on available-for-sale securities to net earnings | 2.7 | (2.2 | ) | 5.0 | ||||||||
Tax effect | (0.6 | ) | 0.8 | (1.7 | ) | |||||||
Pension net gains/(losses) arising during the year | 87.0 | 109.6 | (199.4 | ) | ||||||||
Tax effect | (18.7 | ) | (43.6 | ) | 72.9 | |||||||
Reclassification of pension liability adjustment to net earnings | 9.3 | 20.6 | 12.0 | |||||||||
Tax effect | (4.5 | ) | (8.2 | ) | (4.4 | ) | ||||||
Other comprehensive (loss)/income, net of tax | (259.3 | ) | (164.1 | ) | 45.5 | |||||||
Comprehensive income | $ | 1,361.5 | $ | 1,569.3 | $ | 1,538.0 |
June 30, | 2018 | 2017 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,170.0 | $ | 2,780.4 | ||||
Accounts receivable, net of allowance for doubtful accounts of $51.3 and $49.6, respectively | 1,984.2 | 1,703.6 | ||||||
Other current assets | 758.0 | 883.2 | ||||||
Total current assets before funds held for clients | 4,912.2 | 5,367.2 | ||||||
Funds held for clients | 27,137.8 | 27,291.5 | ||||||
Total current assets | 32,050.0 | 32,658.7 | ||||||
Long-term receivables, net of allowance for doubtful accounts of $0.5 and $0.8, respectively | 25.5 | 28.0 | ||||||
Property, plant and equipment, net | 793.7 | 779.9 | ||||||
Other assets | 1,089.6 | 1,352.2 | ||||||
Goodwill | 2,243.5 | 1,741.0 | ||||||
Intangible assets, net | 886.4 | 620.2 | ||||||
Total assets | $ | 37,088.7 | $ | 37,180.0 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 135.4 | $ | 149.7 | ||||
Accrued expenses and other current liabilities | 1,547.7 | 1,381.9 | ||||||
Accrued payroll and payroll-related expenses | 667.7 | 562.5 | ||||||
Dividends payable | 298.9 | 250.5 | ||||||
Short-term deferred revenues | 226.5 | 232.9 | ||||||
Income taxes payable | 43.9 | 49.0 | ||||||
Total current liabilities before client funds obligations | 2,920.1 | 2,626.5 | ||||||
Client funds obligations | 27,493.5 | 27,189.4 | ||||||
Total current liabilities | 30,413.6 | 29,815.9 | ||||||
Long-term debt | 2,002.4 | 2,002.4 | ||||||
Other liabilities | 728.0 | 830.2 | ||||||
Deferred income taxes | 107.3 | 163.1 | ||||||
Long-term deferred revenues | 377.8 | 391.4 | ||||||
Total liabilities | 33,629.1 | 33,203.0 | ||||||
Commitments and Contingencies (Note 13) | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, $1.00 par value: Authorized, 0.3 shares; issued, none | — | — | ||||||
Common stock, $0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at June 30, 2018 and June 30, 2017; outstanding, 438.8 and 445.0 shares at June 30, 2018 and June 30, 2017, respectively | 63.9 | 63.9 | ||||||
Capital in excess of par value | 1,014.8 | 867.8 | ||||||
Retained earnings | 15,271.3 | 14,728.2 | ||||||
Treasury stock - at cost: 199.9 and 193.7 shares at June 30, 2018 and June 30, 2017, respectively | (12,209.6 | ) | (11,303.7 | ) | ||||
Accumulated other comprehensive loss | (680.8 | ) | (379.2 | ) | ||||
Total stockholders’ equity | 3,459.6 | 3,977.0 | ||||||
Total liabilities and stockholders’ equity | $ | 37,088.7 | $ | 37,180.0 |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income/(Loss) | |||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||
Balance at June 30, 2015 | 638.7 | $ | 63.9 | $ | 663.3 | $ | 13,460.3 | $ | (9,118.4 | ) | $ | (260.6 | ) | ||||||||||
Net earnings | — | — | — | 1,492.5 | — | — | |||||||||||||||||
Other comprehensive income | — | — | — | — | — | 45.5 | |||||||||||||||||
Stock-based compensation expense | — | — | 117.2 | — | — | — | |||||||||||||||||
Issuances relating to stock compensation plans | — | — | (47.5 | ) | — | 182.5 | — | ||||||||||||||||
Tax benefits from stock compensation plans | — | — | 35.1 | — | — | — | |||||||||||||||||
Treasury stock acquired (13.8 shares) | — | — | — | — | (1,202.7 | ) | — | ||||||||||||||||
Other | — | — | — | 6.2 | — | — | |||||||||||||||||
Dividends ($2.08 per share) | — | — | — | (955.7 | ) | — | — | ||||||||||||||||
Balance at June 30, 2016 | 638.7 | $ | 63.9 | $ | 768.1 | $ | 14,003.3 | $ | (10,138.6 | ) | $ | (215.1 | ) | ||||||||||
Net earnings | — | — | — | 1,733.4 | — | — | |||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (164.1 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 115.5 | — | — | — | |||||||||||||||||
Issuances relating to stock compensation plans | — | — | (15.8 | ) | — | 169.2 | — | ||||||||||||||||
Treasury stock acquired (13.5 shares) | — | — | — | — | (1,334.3 | ) | — | ||||||||||||||||
Dividends ($2.24 per share) | — | — | — | (1,008.5 | ) | — | — | ||||||||||||||||
Balance at June 30, 2017 | 638.7 | $ | 63.9 | $ | 867.8 | $ | 14,728.2 | $ | (11,303.7 | ) | $ | (379.2 | ) | ||||||||||
Net earnings | — | — | — | 1,620.8 | — | — | |||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (259.3 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 145.3 | — | — | — | |||||||||||||||||
Issuances relating to stock compensation plans | — | — | 1.7 | — | 144.5 | — | |||||||||||||||||
Treasury stock acquired (8.5 shares) | — | — | — | — | (1,050.4 | ) | — | ||||||||||||||||
Other (see Note 1) | — | — | — | 42.3 | — | (42.3 | ) | ||||||||||||||||
Dividends ($2.52 per share) | — | — | — | (1,120.0 | ) | — | — | ||||||||||||||||
Balance at June 30, 2018 | 638.7 | $ | 63.9 | $ | 1,014.8 | $ | 15,271.3 | $ | (12,209.6 | ) | $ | (680.8 | ) |
Years ended June 30, | 2018 | 2017 *As Adjusted | 2016 *As Adjusted | |||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net earnings | $ | 1,620.8 | $ | 1,733.4 | $ | 1,492.5 | ||||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | ||||||||||||
Depreciation and amortization | 377.6 | 316.1 | 288.6 | |||||||||
Deferred income taxes | 0.5 | 10.0 | 0.7 | |||||||||
Stock-based compensation expense | 175.4 | 138.9 | 137.6 | |||||||||
Net pension expense | 330.4 | 24.2 | 17.7 | |||||||||
Net amortization of premiums and accretion of discounts on available-for-sale securities | 71.5 | 85.9 | 94.1 | |||||||||
Gain on sale of assets | (0.4 | ) | — | (13.9 | ) | |||||||
Gain on sale of divested businesses, net of tax | — | (121.4 | ) | (21.8 | ) | |||||||
Other | 31.9 | 37.1 | 30.7 | |||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses: | ||||||||||||
(Increase)/decrease in accounts receivable | (291.8 | ) | 23.4 | (224.6 | ) | |||||||
Decrease/(increase) in other assets | 93.5 | (269.1 | ) | (108.9 | ) | |||||||
Decrease in accounts payable | (1.9 | ) | (11.6 | ) | (15.9 | ) | ||||||
Increase in accrued expenses and other liabilities | 107.7 | 159.0 | 220.5 | |||||||||
Net cash flows provided by operating activities | 2,515.2 | 2,125.9 | 1,897.3 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Purchases of corporate and client funds marketable securities | (4,876.8 | ) | (4,382.8 | ) | (5,876.3 | ) | ||||||
Proceeds from the sales and maturities of corporate and client funds marketable securities | 3,455.0 | 3,593.6 | 5,215.4 | |||||||||
Capital expenditures | (206.1 | ) | (240.2 | ) | (168.5 | ) | ||||||
Additions to intangibles | (264.7 | ) | (230.4 | ) | (217.5 | ) | ||||||
Acquisitions of businesses, net of cash acquired | (612.4 | ) | (87.4 | ) | — | |||||||
Proceeds from the sale of property, plant, and equipment and other assets | 0.4 | — | 15.7 | |||||||||
Proceeds from the sale of divested businesses | — | 234.0 | 162.2 | |||||||||
Net cash flows used in investing activities | (2,504.6 | ) | (1,113.2 | ) | (869.0 | ) | ||||||
Cash Flows from Financing Activities: | ||||||||||||
Net increase/(decrease) in client funds obligations | 340.4 | (6,120.6 | ) | 8,803.3 | ||||||||
Proceeds from debt issuance | — | — | 1,998.3 | |||||||||
Payments of debt | (7.3 | ) | (2.0 | ) | (1.5 | ) | ||||||
Repurchases of common stock | (989.3 | ) | (1,259.6 | ) | (1,155.7 | ) | ||||||
Net proceeds from stock purchase plan and stock-based compensation plans | 69.3 | 95.7 | 75.3 | |||||||||
Dividends paid | (1,063.7 | ) | (995.2 | ) | (943.6 | ) | ||||||
Other | (5.3 | ) | — | (23.4 | ) | |||||||
Net cash flows (used in)/provided by financing activities | (1,655.9 | ) | (8,281.7 | ) | 8,752.7 | |||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 5.8 | (8.0 | ) | (8.7 | ) | |||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | (1,639.5 | ) | (7,277.0 | ) | 9,772.3 | |||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year | 8,181.6 | 15,458.6 | 5,686.3 | |||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | $ | 6,542.1 | $ | 8,181.6 | $ | 15,458.6 | ||||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets | ||||||||||||
Cash and cash equivalents | $ | 2,170.0 | $ | 2,780.4 | $ | 3,191.1 | ||||||
Restricted cash and restricted cash equivalents included in funds held for clients (A) | 4,372.1 | 5,401.2 | 12,267.5 | |||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 6,542.1 | $ | 8,181.6 | $ | 15,458.6 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 100.5 | $ | 78.1 | $ | 37.5 | ||||||
Cash paid for income taxes, net of income tax refunds | $ | 529.7 | $ | 817.1 | $ | 651.6 |
Data processing equipment | 2 to 5 years |
Buildings | 20 to 40 years |
Furniture and fixtures | 4 to 7 years |
Years ended June 30, | Basic | Effect of Employee Stock Option Shares | Effect of Employee Restricted Stock Shares | Diluted | ||||||||||
2018 | ||||||||||||||
Net earnings from continuing operations | $ | 1,620.8 | $ | 1,620.8 | ||||||||||
Weighted average shares (in millions) | 440.6 | 1.1 | 1.6 | 443.3 | ||||||||||
EPS from continuing operations | $ | 3.68 | $ | 3.66 | ||||||||||
2017 | ||||||||||||||
Net earnings from continuing operations | $ | 1,733.4 | $ | 1,733.4 | ||||||||||
Weighted average shares (in millions) | 447.8 | 0.9 | 1.6 | 450.3 | ||||||||||
EPS from continuing operations | $ | 3.87 | $ | 3.85 | ||||||||||
2016 | ||||||||||||||
Net earnings from continuing operations | $ | 1,493.4 | $ | 1,493.4 | ||||||||||
Weighted average shares (in millions) | 457.0 | 0.8 | 1.3 | 459.1 | ||||||||||
EPS from continuing operations | $ | 3.27 | $ | 3.25 |
Year Ended | |||||||||||
June 30, 2017 | |||||||||||
As previously reported | Adjustments | As adjusted | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Net decrease / (increase) in restricted cash and cash equivalents held to satisfy client funds obligations | $ | 6,843.6 | $ | (6,843.6 | ) | $ | — | ||||
Net cash flows provided by/ (used in) investing activities | 5,730.4 | (6,843.6 | ) | (1,113.2 | ) | ||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 14.7 | (22.7 | ) | (8.0 | ) | ||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | (410.7 | ) | (6,866.3 | ) | (7,277.0 | ) | |||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | $ | 2,780.4 | $ | 5,401.2 | $ | 8,181.6 | |||||
Year Ended | |||||||||||
June 30, 2016 | |||||||||||
As previously reported | Adjustments | As adjusted | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Net (increase) / decrease in restricted cash and cash equivalents held to satisfy client funds obligations | $ | (8,218.2 | ) | $ | 8,218.2 | $ | — | ||||
Net cash flows (used in)/ provided by investing activities | (9,087.2 | ) | 8,218.2 | (869.0 | ) | ||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (11.0 | ) | 2.3 | (8.7 | ) | ||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | 1,551.8 | 8,220.5 | 9,772.3 | ||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | $ | 3,191.1 | $ | 12,267.5 | $ | 15,458.6 |
Standard | Description | Effective Date | Effect on Financial Statements or Other Significant Matters |
ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost | This standard requires reporting the service cost component in the same line item or items as other compensation costs arising during the period in the Statements of Consolidated Earnings. The other components of net periodic pension cost are required to be presented in the Statements of Consolidated Earnings separately from the service cost component. Such changes are to be applied retrospectively from the date of adoption. The ASU also allows only the service cost component to be eligible for capitalization, when applicable, prospectively from the date of adoption. | For fiscal years beginning after December 15, 2017. Early adoption is permitted. | The Company will adopt ASU 2017-07 beginning on July 1, 2018. This ASU will be applied retrospectively and will require the reclassification of the non-service cost components of the net periodic benefit cost from within the respective line items of our Statements of Consolidated Earnings to Other expense/(income), net. Also, the requirement set forth under this ASU only allows the service cost component of net periodic benefit cost to be capitalized. Refer to the table below for a summary of the reclassification required, as a result of this change, on the Company's consolidated results of operations for the years ended June 30, 2018 and 2017. The adoption of the new accounting rules only impacts the classification of expenses on the Statements of Consolidated Earnings with no impact to consolidated income, the Company’s statements of financial condition, or cash flows. |
ASU 2016-02 Leases (Topic 842) | This update amends the existing accounting standards for lease accounting, and requires lessees to recognize most lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. This ASU requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application. | For fiscal years beginning after December 15, 2018. Early adoption is permitted. | The Company will adopt ASU 2016-02 beginning on July 1, 2019. The Company has not yet determined the impact of this ASU on its consolidated results of operations, financial condition, or cash flows. |
Standard | Description | Effective Date | Effect on Financial Statements or Other Significant Matters |
ASU 2014-09 Revenue from Contracts with Customers (Topic 606) | This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance, and has since issued additional amendments to ASU 2014-09. These new standards require an entity to recognize revenue depicting the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standards will also result in enhanced revenue related disclosures. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Statements of Consolidated Financial Position. | For fiscal years beginning after December 15, 2017. Early adoption is permitted. | The Company has been assessing the impact of the new revenue recognition standard on its relationships with its clients. In fiscal 2017, the Company determined it will not early adopt the standard, and instead will adopt the new standard in its fiscal year beginning on July 1, 2018 and will apply the guidance under the full retrospective approach. The Company is complete with its comprehensive diagnostic of the measurement and recognition provisions of the new standard. The provisions of the new standard will primarily impact the manner in which the Company treats certain costs to fulfill contracts (i.e., implementation costs) and costs to acquire new contracts (i.e., selling costs). The provisions of the new standard will require the Company to capitalize and amortize additional implementation costs than those capitalized and amortized under current U.S. GAAP. Further, under current U.S. GAAP, the Company immediately expenses all selling expenses. The provisions of the new standard will require that the Company capitalize incremental selling expenses such as commissions and bonuses paid to the sales force for obtaining contracts with new clients and/or selling additional business to current clients. These capitalized expenses will be amortized over the expected client life and will result in a significant increase to our total assets of approximately $1.7 billion. While the Company grows, the impact of deferring and amortizing additional costs creates higher overall pre-tax income, net earnings, and earnings per share, when compared to current U.S. GAAP. The provisions of the new standard will not materially impact the timing or amount of revenue the Company recognizes. The Company is substantially complete in determining the impacts of all the disclosure requirements. The Company expects to disaggregate its revenue by its three strategic pillars (U.S. Integrated HCM Solutions, U.S. HRBPO Solutions and Global Solutions) with separate disaggregation for PEO pass-through revenues and Client Fund Interest revenues. Additionally, while the Company is in the process of assessing its accounting and forecasting processes to ensure its ability to record, report, forecast, and analyze results under the new standard, it is not expecting significant changes to its business processes or systems. As a result of this change, within the tables below, the Company preliminarily estimates the following impact to its consolidated results of operations for the years ended June 30, 2018 and 2017: |
Year Ended | |||||||||||||||
June 30, 2018 | |||||||||||||||
As reported | Adjustments ASC 606 | Adjustments ASU 2017-07 | As adjusted | ||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ | 8,985.2 | $ | (1.8 | ) | $ | — | $ | 8,983.4 | ||||||
Interest on funds held for clients | $ | 466.5 | $ | 466.5 | |||||||||||
PEO revenues | 3,874.1 | 3.5 | — | 3,877.6 | |||||||||||
TOTAL REVENUES | 13,325.8 | 1.7 | — | 13,327.5 | |||||||||||
Operating expenses | 6,937.9 | (74.0 | ) | 37.2 | 6,901.1 | ||||||||||
Systems development and programming costs | 630.2 | — | 7.6 | 637.8 | |||||||||||
Selling, general, and administrative expenses | 2,971.5 | (35.8 | ) | 21.2 | 2,956.9 | ||||||||||
Total Expenses | 10,916.8 | (109.8 | ) | 66.0 | 10,873.0 | ||||||||||
Other expense/(income), net | 237.9 | (66.0 | ) | 171.9 | |||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 2,171.1 | 111.5 | — | 2,282.6 | |||||||||||
Provision for income taxes | 550.3 | (165.6 | ) | * | — | 384.7 | |||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | $ | 1,620.8 | $ | 277.1 | $ | — | $ | 1,897.9 |
Year Ended | |||||||||||||||
June 30, 2017 | |||||||||||||||
As reported | Adjustments ASC 606 | Adjustments ASU 2017-07 | As adjusted | ||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ | 8,518.1 | $ | (8.0 | ) | $ | — | $ | 8,510.1 | ||||||
Interest on funds held for clients | $ | 397.4 | $ | 397.4 | |||||||||||
PEO revenues | 3,464.3 | 0.3 | — | 3,464.6 | |||||||||||
TOTAL REVENUES | 12,379.8 | (7.7 | ) | — | 12,372.1 | ||||||||||
Operating expenses | 6,416.1 | (63.5 | ) | 33.8 | 6,386.4 | ||||||||||
Systems development and programming costs | 627.5 | — | 6.6 | 634.1 | |||||||||||
Selling, general, and administrative expenses | 2,783.2 | (30.0 | ) | 18.7 | 2,771.9 | ||||||||||
Total Expenses | 10,133.0 | (93.5 | ) | 59.1 | 10,098.6 | ||||||||||
Other expense/(income), net | (284.3 | ) | — | (59.1 | ) | (343.4 | ) | ||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 2,531.1 | 85.8 | — | 2,616.9 | |||||||||||
Provision for income taxes | 797.7 | 31.4 | — | 829.1 | |||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | $ | 1,733.4 | $ | 54.4 | $ | — | $ | 1,787.8 |
Goodwill | $ | 406.1 | |
Identifiable intangible assets | 132.5 | ||
Other assets | 0.8 | ||
Total assets acquired | $ | 539.4 | |
Total liabilities assumed | $ | 48.4 |
Year Ended | Cumulative amount from inception through | |||||||||||
June 30, | June 30, | |||||||||||
2018 | 2017 | 2018 | ||||||||||
Employee separation benefits (a) | $ | 15.4 | $ | 84.1 | $ | 99.5 | ||||||
Other initiative costs (b) | 5.1 | 5.9 | 11.0 | |||||||||
Total (c) | $ | 20.5 | $ | 90.0 | $ | 110.5 |
Employee separation benefits | Other initiative costs | Total | ||||||||||
Balance at June 30, 2016 | $ | — | $ | — | $ | — | ||||||
Charged to expense | 85.6 | 5.9 | 91.5 | |||||||||
Reversals | (1.5 | ) | — | (1.5 | ) | |||||||
Cash payments | (10.2 | ) | (3.4 | ) | (13.6 | ) | ||||||
Non-cash utilization | — | (2.0 | ) | (2.0 | ) | |||||||
Balance at June 30, 2017 | $ | 73.9 | $ | 0.5 | $ | 74.4 | ||||||
Charged to expense | 38.8 | 5.1 | 43.9 | |||||||||
Reversals | (23.4 | ) | — | (23.4 | ) | |||||||
Cash payments | (35.3 | ) | (4.4 | ) | (39.7 | ) | ||||||
Non-cash utilization | — | (0.7 | ) | (0.7 | ) | |||||||
Balance at June 30, 2018 | $ | 54.0 | $ | 0.5 | $ | 54.5 |
Years ended June 30, | 2018 | 2017 | 2016 | |||||||||
Interest income on corporate funds | $ | (83.5 | ) | $ | (76.7 | ) | $ | (62.4 | ) | |||
Realized gains on available-for-sale securities | (2.0 | ) | (5.3 | ) | (5.1 | ) | ||||||
Realized losses on available-for-sale securities | 4.5 | 3.1 | 10.1 | |||||||||
Gain on sale of businesses (see Note 3) | — | (205.4 | ) | (29.1 | ) | |||||||
Gains on sale of assets | (0.7 | ) | — | (13.9 | ) | |||||||
Voluntary Early Retirement Program (see Note 11) | 319.6 | — | — | |||||||||
Other expense/(income), net | $ | 237.9 | $ | (284.3 | ) | $ | (100.4 | ) |
June 30, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value (A) | ||||||||||||
Type of issue: | |||||||||||||||
Money market securities, cash and other cash equivalents | $ | 6,542.1 | $ | — | $ | — | $ | 6,542.1 | |||||||
Available-for-sale securities: | |||||||||||||||
Corporate bonds | 9,819.4 | 20.3 | (160.9 | ) | 9,678.8 | ||||||||||
Asset-backed securities | 4,555.5 | 0.3 | (64.1 | ) | 4,491.7 | ||||||||||
U.S. government agency securities | 2,787.0 | 4.0 | (47.7 | ) | 2,743.3 | ||||||||||
U.S. Treasury securities | 2,678.9 | 0.4 | (76.9 | ) | 2,602.4 | ||||||||||
Canadian government obligations and Canadian government agency obligations | 1,109.0 | 0.4 | (20.6 | ) | 1,088.8 | ||||||||||
Canadian provincial bonds | 724.5 | 5.1 | (7.4 | ) | 722.2 | ||||||||||
Municipal bonds | 584.6 | 3.2 | (4.3 | ) | 583.5 | ||||||||||
Other securities | 873.0 | 3.0 | (10.5 | ) | 865.5 | ||||||||||
Total available-for-sale securities | 23,131.9 | 36.7 | (392.4 | ) | 22,776.2 | ||||||||||
Total corporate investments and funds held for clients | $ | 29,674.0 | $ | 36.7 | $ | (392.4 | ) | $ | 29,318.3 |
June 30, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value (B) | ||||||||||||
Type of issue: | |||||||||||||||
Money market securities, cash and other cash equivalents | $ | 8,181.6 | $ | — | $ | — | $ | 8,181.6 | |||||||
Available-for-sale securities: | |||||||||||||||
Corporate bonds | 9,325.3 | 98.8 | (22.0 | ) | 9,402.1 | ||||||||||
Asset-backed securities | 4,453.1 | 16.9 | (8.6 | ) | 4,461.4 | ||||||||||
U.S. government agency securities | 3,557.7 | 22.2 | (13.4 | ) | 3,566.5 | ||||||||||
U.S. Treasury securities | 1,585.9 | 2.6 | (14.3 | ) | 1,574.2 | ||||||||||
Canadian government obligations and Canadian government agency obligations | 1,053.6 | 2.9 | (11.4 | ) | 1,045.1 | ||||||||||
Canadian provincial bonds | 746.9 | 14.3 | (1.4 | ) | 759.8 | ||||||||||
Municipal bonds | 582.5 | 11.3 | (1.3 | ) | 592.5 | ||||||||||
Other securities | 493.6 | 7.3 | (1.4 | ) | 499.5 | ||||||||||
Total available-for-sale securities | 21,798.6 | 176.3 | (73.8 | ) | 21,901.1 | ||||||||||
Total corporate investments and funds held for clients | $ | 29,980.2 | $ | 176.3 | $ | (73.8 | ) | $ | 30,082.7 |
June 30, 2018 | |||||||||||||||||||||||
Securities in unrealized loss position less than 12 months | Securities in unrealized loss position greater than 12 months | Total | |||||||||||||||||||||
Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | Fair Market Value | ||||||||||||||||||
Corporate bonds | $ | (118.2 | ) | $ | 7,132.9 | $ | (42.7 | ) | $ | 994.2 | $ | (160.9 | ) | $ | 8,127.1 | ||||||||
Asset-backed securities | (47.4 | ) | 3,515.9 | (16.7 | ) | 867.7 | (64.1 | ) | 4,383.6 | ||||||||||||||
U.S. government agency securities | (31.2 | ) | 2,013.8 | (16.5 | ) | 431.1 | (47.7 | ) | 2,444.9 | ||||||||||||||
U.S. Treasury securities | (46.9 | ) | 1,676.8 | (30.0 | ) | 864.0 | (76.9 | ) | 2,540.8 | ||||||||||||||
Canadian government obligations and Canadian government agency obligations | (20.6 | ) | 1,020.3 | — | — | (20.6 | ) | 1,020.3 | |||||||||||||||
Canadian provincial bonds | (6.3 | ) | 387.7 | (1.1 | ) | 50.4 | (7.4 | ) | 438.1 | ||||||||||||||
Municipal bonds | (3.6 | ) | 285.8 | (0.7 | ) | 16.0 | (4.3 | ) | 301.8 | ||||||||||||||
Other securities | (9.2 | ) | 573.3 | (1.3 | ) | 33.4 | (10.5 | ) | 606.7 | ||||||||||||||
$ | (283.4 | ) | $ | 16,606.5 | $ | (109.0 | ) | $ | 3,256.8 | $ | (392.4 | ) | $ | 19,863.3 |
June 30, 2017 | |||||||||||||||||||||||
Securities in unrealized loss position less than 12 months | Securities in unrealized loss position greater than 12 months | Total | |||||||||||||||||||||
Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | Fair Market Value | ||||||||||||||||||
Corporate bonds | $ | (22.0 | ) | $ | 2,619.9 | $ | — | $ | 7.4 | $ | (22.0 | ) | $ | 2,627.3 | |||||||||
Asset-backed securities | (8.5 | ) | 1,916.1 | (0.1 | ) | 11.3 | (8.6 | ) | 1,927.4 | ||||||||||||||
U.S. government agency securities | (13.4 | ) | 1,935.3 | — | — | (13.4 | ) | 1,935.3 | |||||||||||||||
U.S. Treasury securities | (14.3 | ) | 1,317.8 | — | 1.0 | (14.3 | ) | 1,318.8 | |||||||||||||||
Canadian government obligations and Canadian government agency obligations | (11.4 | ) | 699.6 | — | — | (11.4 | ) | 699.6 | |||||||||||||||
Canadian provincial bonds | (1.4 | ) | 179.8 | — | — | (1.4 | ) | 179.8 | |||||||||||||||
Municipal bonds | (1.2 | ) | 98.8 | (0.1 | ) | 1.2 | (1.3 | ) | 100.0 | ||||||||||||||
Other securities | (1.3 | ) | 148.0 | (0.1 | ) | 8.9 | (1.4 | ) | 156.9 | ||||||||||||||
$ | (73.5 | ) | $ | 8,915.3 | $ | (0.3 | ) | $ | 29.8 | $ | (73.8 | ) | $ | 8,945.1 |
June 30, | 2018 | 2017 | ||||||
Corporate investments: | ||||||||
Cash and cash equivalents | $ | 2,170.0 | $ | 2,780.4 | ||||
Short-term marketable securities (a) | 3.3 | 3.2 | ||||||
Long-term marketable securities (b) | 7.2 | 7.6 | ||||||
Total corporate investments | $ | 2,180.5 | $ | 2,791.2 |
June 30, | 2018 | 2017 | ||||||
Funds held for clients: | ||||||||
Restricted cash and cash equivalents held to satisfy client funds obligations | $ | 4,372.1 | $ | 5,401.2 | ||||
Restricted short-term marketable securities held to satisfy client funds obligations | 2,521.4 | 2,918.5 | ||||||
Restricted long-term marketable securities held to satisfy client funds obligations | 20,244.3 | 18,971.8 | ||||||
Total funds held for clients | $ | 27,137.8 | $ | 27,291.5 |
One year or less | $ | 2,524.7 | |
One year to two years | 5,110.2 | ||
Two years to three years | 5,533.9 | ||
Three years to four years | 3,798.0 | ||
After four years | 5,809.4 | ||
Total available-for-sale securities | $ | 22,776.2 |
June 30, | 2018 | 2017 | ||||||
Property, plant and equipment: | ||||||||
Land and buildings | $ | 791.8 | $ | 778.1 | ||||
Data processing equipment | 707.4 | 653.7 | ||||||
Furniture, leaseholds and other | 637.1 | 599.6 | ||||||
2,136.3 | 2,031.4 | |||||||
Less: accumulated depreciation | (1,342.6 | ) | (1,251.5 | ) | ||||
Property, plant and equipment, net | $ | 793.7 | $ | 779.9 |
Employer Services | PEO Services | Total | |||||||||
Balance at June 30, 2016 | $ | 1,677.2 | $ | 4.8 | $ | 1,682.0 | |||||
Additions and other adjustments | 73.4 | — | 73.4 | ||||||||
Currency translation adjustments | 7.0 | — | 7.0 | ||||||||
Disposition of CHSA and COBRA businesses | (21.4 | ) | — | (21.4 | ) | ||||||
Balance at June 30, 2017 | $ | 1,736.2 | $ | 4.8 | $ | 1,741.0 | |||||
Additions and other adjustments | 494.9 | — | 494.9 | ||||||||
Currency translation adjustments | 7.6 | — | 7.6 | ||||||||
Balance at June 30, 2018 | $ | 2,238.7 | $ | 4.8 | $ | 2,243.5 |
June 30, | 2018 | 2017 | ||||||
Intangible assets: | ||||||||
Software and software licenses | $ | 2,292.9 | $ | 1,975.2 | ||||
Customer contracts and lists | 708.6 | 614.1 | ||||||
Other intangibles | 236.5 | 228.2 | ||||||
3,238.0 | 2,817.5 | |||||||
Less accumulated amortization: | ||||||||
Software and software licenses | (1,606.6 | ) | (1,483.7 | ) | ||||
Customer contracts and lists | (533.4 | ) | (506.0 | ) | ||||
Other intangibles | (211.6 | ) | (207.6 | ) | ||||
(2,351.6 | ) | (2,197.3 | ) | |||||
Intangible assets, net | $ | 886.4 | $ | 620.2 |
Amount | |||
Twelve months ending June 30, 2019 | $ | 244.4 | |
Twelve months ending June 30, 2020 | $ | 209.6 | |
Twelve months ending June 30, 2021 | $ | 162.4 | |
Twelve months ending June 30, 2022 | $ | 120.0 | |
Twelve months ending June 30, 2023 | $ | 80.8 |
Debt instrument | Effective Interest Rate | June 30, 2018 | June 30, 2017 | |||||||
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 | 13.0 | 20.3 | ||||||||
2,013.0 | 2,020.3 | |||||||||
Less: current portion | (2.5 | ) | (7.8 | ) | ||||||
Less: unamortized discount and debt issuance costs | (8.1 | ) | (10.1 | ) | ||||||
Total long-term debt | $ | 2,002.4 | $ | 2,002.4 |
• | 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 are issued under a graded vesting schedule and have a term of 10 years. Options granted after July 1, 2008 generally vest ratably over four years. Compensation expense is measured based on the fair value of the stock option on the grant date and recognized over the requisite service period for each separately vesting portion of the stock option award. Stock options are forfeited if the employee ceases to be employed by the Company prior to vesting. |
• | Restricted Stock. |
• | Time-Based Restricted Stock and Time-Based Restricted Stock Units. Time-based restricted stock and time-based restricted stock units granted are generally subject to a vesting period of two years. Awards are forfeited if the employee ceases to be employed by the Company prior to vesting. |
• | Performance-Based Restricted Stock and Performance-Based Restricted Stock Units. Performance-based restricted stock and performance-based restricted stock units generally vest over a one to three year performance period and a subsequent service period of up to 26 months. Under these programs, the Company communicates "target awards" at the beginning of the performance period with possible payouts at the end of the performance period ranging from 0% to 150% of the "target awards." Awards are generally forfeited if the employee ceases to be employed by the Company prior to vesting. |
• | 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. |
Years ended June 30, | 2018 | 2017 | 2016 | |||||||||
Operating expenses | $ | 22.9 | $ | 21.5 | $ | 23.1 | ||||||
Selling, general and administrative expenses | 128.7 | 99.2 | 97.4 | |||||||||
System development and programming costs | 23.8 | 18.2 | 17.1 | |||||||||
Total pretax stock-based compensation expense | $ | 175.4 | $ | 138.9 | $ | 137.6 | ||||||
Income tax benefit | $ | 44.1 | $ | 49.9 | $ | 49.6 |
Number of Options (in thousands) | Weighted Average Price (in dollars) | ||||||
Options outstanding at July 1, 2017 | 4,172 | $ | 75 | ||||
Options granted | 1,137 | $ | 107 | ||||
Options exercised | (1,190 | ) | $ | 67 | |||
Options canceled | (136 | ) | $ | 84 | |||
Options outstanding at June 30, 2018 | 3,983 | $ | 87 | ||||
Options exercisable at June 30, 2018 | 1,333 | $ | 71 | ||||
Shares available for future grants, end of year | 15,912 | ||||||
Shares reserved for issuance under stock option plans, end of year | 19,895 |
Number of Shares (in thousands) | Number of Units (in thousands) | |||||
Restricted shares/units outstanding at July 1, 2017 | 1,761 | 386 | ||||
Restricted shares/units granted | 877 | 182 | ||||
Restricted shares/units vested | (919 | ) | (196 | ) | ||
Restricted shares/units forfeited | (121 | ) | (27 | ) | ||
Restricted shares/units outstanding at June 30, 2018 | 1,598 | 345 |
Number of Shares (in thousands) | Number of Units (in thousands) | |||||
Restricted shares/units outstanding at July 1, 2017 | 404 | 769 | ||||
Restricted shares/units granted | 157 | 352 | ||||
Restricted shares/units vested | (238 | ) | (286 | ) | ||
Restricted shares/units forfeited | (21 | ) | (46 | ) | ||
Restricted shares/units outstanding at June 30, 2018 | 302 | 789 |
2018 | 2017 | 2016 | |||||||||
Risk-free interest rate | 1.8 | % | 1.2 | % | 1.6 | % | |||||
Dividend yield | 2.1 | % | 2.3 | % | 2.6 | % | |||||
Weighted average volatility factor | 21.7 | % | 23.2 | % | 25.6 | % | |||||
Weighted average expected life (in years) | 5.4 | 5.4 | 5.4 | ||||||||
Weighted average fair value (in dollars) | $ | 17.50 | $ | 14.36 | $ | 13.16 |
Year ended June 30, | 2018 | 2017 | 2016 | |||||||||
Performance-based restricted stock | $ | 107.43 | $ | 90.63 | $ | 75.95 | ||||||
Time-based restricted stock | $ | 108.10 | $ | 90.99 | $ | 76.09 |
June 30, | 2018 | 2017 | ||||||
Change in plan assets: | ||||||||
Fair value of plan assets at beginning of year | $ | 2,138.4 | $ | 2,006.3 | ||||
Actual return on plan assets | 148.5 | 195.2 | ||||||
Employer contributions | 10.9 | 11.9 | ||||||
Currency translation adjustments | 5.0 | (3.2 | ) | |||||
Benefits paid | (124.7 | ) | (71.8 | ) | ||||
Fair value of plan assets at end of year | $ | 2,178.1 | $ | 2,138.4 | ||||
Change in benefit obligation: | ||||||||
Benefit obligation at beginning of year | $ | 1,866.7 | $ | 1,843.9 | ||||
Service cost | 74.6 | 80.8 | ||||||
Interest cost | 65.4 | 60.0 | ||||||
Actuarial gain | (73.7 | ) | (44.5 | ) | ||||
Currency translation adjustments | 7.5 | 2.7 | ||||||
Curtailments and special termination benefits | 319.5 | (4.4 | ) | |||||
Benefits paid | (124.7 | ) | (71.8 | ) | ||||
Projected benefit obligation at end of year | $ | 2,135.3 | $ | 1,866.7 | ||||
Funded status - plan assets less benefit obligations | $ | 42.8 | $ | 271.7 |
June 30, | 2018 | 2017 | ||||||
Noncurrent assets | $ | 180.8 | $ | 413.8 | ||||
Current liabilities | (5.3 | ) | (5.0 | ) | ||||
Noncurrent liabilities | (132.7 | ) | (137.1 | ) | ||||
Net amount recognized | $ | 42.8 | $ | 271.7 |
June 30, | 2018 | 2017 | ||||||
Projected benefit obligation | $ | 151.3 | $ | 241.0 | ||||
Accumulated benefit obligation | $ | 138.1 | $ | 227.9 | ||||
Fair value of plan assets | $ | 13.3 | $ | 98.9 |
2018 | 2017 | 2016 | ||||||||||
Service cost – benefits earned during the period | $ | 74.6 | $ | 80.8 | $ | 70.4 | ||||||
Interest cost on projected benefits | 65.4 | 60.0 | 67.4 | |||||||||
Expected return on plan assets | (137.5 | ) | (135.8 | ) | (131.2 | ) | ||||||
Net amortization and deferral | 8.4 | 19.1 | 11.0 | |||||||||
Special termination benefits and plan curtailments | 319.5 | 0.1 | 0.1 | |||||||||
Net pension expense | $ | 330.4 | $ | 24.2 | $ | 17.7 |
Years ended June 30, | 2018 | 2017 | ||||
Discount rate | 4.10 | % | 3.70 | % | ||
Increase in compensation levels | 4.00 | % | 4.00 | % |
Years ended June 30, | 2018 | 2017 | 2016 | ||||||
Discount rate | 3.70 | % | 3.40 | % | 4.25 | % | |||
Expected long-term rate of return on assets | 6.75 | % | 7.00 | % | 7.00 | % | |||
Increase in compensation levels | 4.00 | % | 4.00 | % | 4.00 | % |
2018 | 2017 | |||||
Cash and cash equivalents | 1 | % | 1 | % | ||
Fixed income securities | 52 | % | 36 | % | ||
U.S. equity securities | 14 | % | 19 | % | ||
International equity securities | 12 | % | 16 | % | ||
Global equity securities | 22 | % | 28 | % | ||
100 | % | 100 | % |
U.S. fixed income securities | 35% - 45% |
U.S. equity securities | 14% - 24% |
International equity securities | 11% - 21% |
Global equity securities | 20% - 30% |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Commingled trusts | $ | — | $ | 1,036.7 | $ | — | $ | 1,036.7 | ||||||||
Government securities | — | 507.7 | — | 507.7 | ||||||||||||
Mutual funds | 5.5 | — | — | 5.5 | ||||||||||||
Corporate and municipal bonds | — | 586.8 | — | 586.8 | ||||||||||||
Mortgage-backed security bonds | — | 28.2 | — | 28.2 | ||||||||||||
Total pension asset investments | $ | 5.5 | $ | 2,159.4 | $ | — | $ | 2,164.9 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Commingled trusts | $ | — | $ | 1,338.5 | $ | — | $ | 1,338.5 | ||||||||
U.S. government securities | — | 337.7 | — | 337.7 | ||||||||||||
Mutual funds | 4.8 | — | — | 4.8 | ||||||||||||
Corporate and municipal bonds | — | 409.3 | — | 409.3 | ||||||||||||
Mortgage-backed security bonds | — | 32.9 | — | 32.9 | ||||||||||||
Total pension asset investments | $ | 4.8 | $ | 2,118.4 | $ | — | $ | 2,123.2 |
Years ended June 30, | 2018 | 2017 | 2016 | |||||||||
Earnings from continuing operations before income taxes: | ||||||||||||
United States | $ | 1,849.8 | $ | 2,232.8 | $ | 2,028.5 | ||||||
Foreign | 321.3 | 298.3 | 206.2 | |||||||||
$ | 2,171.1 | $ | 2,531.1 | $ | 2,234.7 |
Years ended June 30, | 2018 | 2017 | 2016 | |||||||||
Current: | ||||||||||||
Federal | $ | 366.7 | $ | 615.3 | $ | 579.0 | ||||||
Foreign | 105.5 | 91.6 | 85.0 | |||||||||
State | 77.6 | 82.7 | 76.6 | |||||||||
Total current | 549.8 | 789.6 | 740.6 | |||||||||
Deferred: | ||||||||||||
Federal | (24.8 | ) | 6.2 | 17.7 | ||||||||
Foreign | 19.7 | 7.2 | (15.7 | ) | ||||||||
State | 5.6 | (5.3 | ) | (1.3 | ) | |||||||
Total deferred | 0.5 | 8.1 | 0.7 | |||||||||
Total provision for income taxes | $ | 550.3 | $ | 797.7 | $ | 741.3 |
Years ended June 30, | 2018 | % | 2017 | % | 2016 | % | |||||||||||||||
Provision for taxes at U.S. statutory rate | $ | 609.2 | 28.1 | $ | 885.9 | 35.0 | $ | 782.1 | 35.0 | ||||||||||||
Increase (decrease) in provision from: | |||||||||||||||||||||
State taxes, net of federal tax benefit | 51.0 | 2.4 | 52.2 | 2.1 | 47.2 | 2.1 | |||||||||||||||
U.S. tax on foreign income | 12.0 | 0.5 | 66.1 | 2.6 | 122.6 | 5.5 | |||||||||||||||
Utilization of foreign tax credits | (19.6 | ) | (0.9 | ) | (76.0 | ) | (3.0 | ) | (155.4 | ) | (7.0 | ) | |||||||||
Section 199 - Qualified production activities | (31.9 | ) | (1.5 | ) | (33.2 | ) | (1.3 | ) | (31.9 | ) | (1.4 | ) | |||||||||
Section 199 - Qualified production activities and research tax credit refund claim - net of reserves | — | — | (51.8 | ) | (2.1 | ) | — | — | |||||||||||||
Resolution of tax matters - Section 199 Qualified production activities and research tax credit refund claim | (33.3 | ) | (1.6 | ) | — | — | — | — | |||||||||||||
Excess tax benefit - Stock-based compensation | (26.7 | ) | (1.2 | ) | (32.1 | ) | (1.3 | ) | — | — | |||||||||||
Other | (10.4 | ) | (0.5 | ) | (13.4 | ) | (0.5 | ) | (23.3 | ) | (1.0 | ) | |||||||||
$ | 550.3 | 25.3 | $ | 797.7 | 31.5 | $ | 741.3 | 33.2 |
Years ended June 30, | 2018 | 2017 | ||||||
Deferred tax assets: | ||||||||
Accrued expenses not currently deductible | $ | 178.3 | $ | 294.5 | ||||
Stock-based compensation expense | 49.6 | 75.5 | ||||||
Foreign tax credits | 40.0 | 49.5 | ||||||
Net operating losses | 44.6 | 49.5 | ||||||
Unrealized investment losses, net | 83.6 | — | ||||||
Other | 20.4 | 18.7 | ||||||
416.5 | 487.7 | |||||||
Less: valuation allowances | (46.0 | ) | (9.4 | ) | ||||
Deferred tax assets, net | $ | 370.5 | $ | 478.3 | ||||
Deferred tax liabilities: | ||||||||
Prepaid retirement benefits | $ | 19.3 | $ | 125.1 | ||||
Deferred revenue | 16.5 | 35.5 | ||||||
Fixed and intangible assets | 242.4 | 226.3 | ||||||
Prepaid expenses | 71.8 | 122.5 | ||||||
Unrealized investment gains, net | — | 33.4 | ||||||
Tax on unrepatriated earnings | 28.3 | — | ||||||
Other | 9.4 | 5.2 | ||||||
Deferred tax liabilities | $ | 387.7 | $ | 548.0 | ||||
Net deferred tax liabilities | $ | 17.2 | $ | 69.7 |
2018 | 2017 | 2016 | ||||||||||
Unrecognized tax benefits at beginning of the year | $ | 74.6 | $ | 27.4 | $ | 27.1 | ||||||
Additions for tax positions | 4.0 | 7.5 | 3.8 | |||||||||
Additions for tax positions of prior periods | 19.8 | 41.9 | 3.5 | |||||||||
Reductions for tax positions of prior periods | (40.5 | ) | (0.5 | ) | (0.1 | ) | ||||||
Settlement with tax authorities | (11.7 | ) | (0.9 | ) | (1.7 | ) | ||||||
Expiration of the statute of limitations | (1.0 | ) | (0.9 | ) | (4.9 | ) | ||||||
Impact of foreign exchange rate fluctuations | — | 0.1 | (0.3 | ) | ||||||||
Unrecognized tax benefit at end of year | $ | 45.2 | $ | 74.6 | $ | 27.4 |
Taxing Jurisdiction | Fiscal Years under Examination | |
U.S. (IRS) | 2018 | |
Illinois | 2004-2016 | |
Canada | 2014 | |
India | 2004-2011, 2013-2015 | |
Germany | 2010-2014 |
Years ending June 30, | |||
2019 | $ | 107.1 | |
2020 | 102.1 | ||
2021 | 77.1 | ||
2022 | 58.7 | ||
2023 | 47.8 | ||
Thereafter | 146.7 | ||
$ | 539.5 |
Currency Translation Adjustment | Net Gains on Available-for-sale Securities | Pension Liability | Accumulated Other Comprehensive (Loss) / Income | |||||||||||||||
Balance at June 30, 2015 | $ | (228.3 | ) | $ | 143.9 | $ | (176.2 | ) | $ | (260.6 | ) | |||||||
Other comprehensive (loss)/income before reclassification adjustments | (25.5 | ) | 288.8 | (199.4 | ) | 63.9 | ||||||||||||
Tax effect | — | (102.2 | ) | 72.9 | (29.3 | ) | ||||||||||||
Reclassification adjustments to net earnings | — | 5.0 | (A) | 12.0 | (B) | 17.0 | ||||||||||||
Tax effect | — | (1.7 | ) | (4.4 | ) | (6.1 | ) | |||||||||||
Balance at June 30, 2016 | $ | (253.8 | ) | $ | 333.8 | $ | (295.1 | ) | $ | (215.1 | ) | |||||||
Other comprehensive income/(loss) before reclassification adjustments | 23.0 | (405.7 | ) | 109.6 | (273.1 | ) | ||||||||||||
Tax effect | — | 141.6 | (43.6 | ) | 98.0 | |||||||||||||
Reclassification adjustments to net earnings | — | (2.2 | ) | (A) | 20.6 | (B) | 18.4 | |||||||||||
Tax effect | — | 0.8 | (8.2 | ) | (7.4 | ) | ||||||||||||
Balance at June 30, 2017 | $ | (230.8 | ) | $ | 68.3 | $ | (216.7 | ) | $ | (379.2 | ) | |||||||
Other comprehensive income/(loss) before reclassification adjustments | 2.8 | (460.7 | ) | 87.0 | (370.9 | ) | ||||||||||||
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 | ) | (35.2 | ) | (42.3 | ) | |||||||||||
Balance at June 30, 2018 | $ | (228.0 | ) | $ | (274.0 | ) | $ | (178.8 | ) | $ | (680.8 | ) |
Employer Services | PEO Services | Other | Client Fund Interest | Total | ||||||||||||||||
Year ended June 30, 2018 | ||||||||||||||||||||
Revenues from continuing operations | $ | 10,057.8 | $ | 3,896.6 | $ | (9.4 | ) | $ | (619.2 | ) | $ | 13,325.8 | ||||||||
Earnings from continuing operations before income taxes | 3,087.4 | 504.2 | (801.3 | ) | (619.2 | ) | 2,171.1 | |||||||||||||
Assets from continuing operations | 30,250.8 | 760.1 | 6,077.8 | — | 37,088.7 | |||||||||||||||
Capital expenditures from continuing operations | 113.9 | — | 78.0 | — | 191.9 | |||||||||||||||
Depreciation and amortization | 291.9 | 3.0 | 82.7 | — | 377.6 | |||||||||||||||
Year ended June 30, 2017 | ||||||||||||||||||||
Revenues from continuing operations | $ | 9,535.2 | $ | 3,483.6 | $ | (10.6 | ) | $ | (628.4 | ) | $ | 12,379.8 | ||||||||
Earnings from continuing operations before income taxes | 2,918.5 | 448.6 | (207.6 | ) | (628.4 | ) | 2,531.1 | |||||||||||||
Assets from continuing operations | 30,107.7 | 586.8 | 6,485.5 | — | 37,180.0 | |||||||||||||||
Capital expenditures from continuing operations | 83.0 | 0.2 | 165.8 | — | 249.0 | |||||||||||||||
Depreciation and amortization | 247.3 | 1.3 | 67.5 | — | 316.1 | |||||||||||||||
Year ended June 30, 2016 | ||||||||||||||||||||
Revenues from continuing operations | $ | 9,211.9 | $ | 3,073.1 | $ | 1.9 | $ | (619.1 | ) | $ | 11,667.8 | |||||||||
Earnings from continuing operations before income taxes | 2,798.4 | 371.2 | (315.8 | ) | (619.1 | ) | 2,234.7 | |||||||||||||
Assets from continuing operations | 36,637.5 | 534.6 | 6,497.9 | — | 43,670.0 | |||||||||||||||
Capital expenditures from continuing operations | 71.1 | 1.0 | 93.6 | — | 165.7 | |||||||||||||||
Depreciation and amortization | 230.7 | 1.5 | 56.4 | — | 288.6 |
United States | Europe | Canada | Other | Total | ||||||||||||||||
Year ended June 30, 2018 | ||||||||||||||||||||
Revenues from continuing operations | $ | 11,486.4 | $ | 1,245.9 | $ | 322.1 | $ | 271.4 | $ | 13,325.8 | ||||||||||
Assets from continuing operations | $ | 32,221.0 | $ | 2,325.0 | $ | 2,009.9 | $ | 532.8 | $ | 37,088.7 | ||||||||||
Year ended June 30, 2017 | ||||||||||||||||||||
Revenues from continuing operations | $ | 10,760.4 | $ | 1,086.0 | $ | 291.1 | $ | 242.3 | $ | 12,379.8 | ||||||||||
Assets from continuing operations | $ | 32,401.0 | $ | 2,252.3 | $ | 2,018.1 | $ | 508.6 | $ | 37,180.0 | ||||||||||
Year ended June 30, 2016 | ||||||||||||||||||||
Revenues from continuing operations | $ | 10,110.9 | $ | 1,063.7 | $ | 284.1 | $ | 209.1 | $ | 11,667.8 | ||||||||||
Assets from continuing operations | $ | 39,194.2 | $ | 2,064.3 | $ | 1,949.4 | $ | 462.1 | $ | 43,670.0 |
Year ended June 30, 2018 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenues | $ | 3,078.8 | $ | 3,235.4 | $ | 3,693.0 | $ | 3,318.6 | ||||||||
Gross profit | $ | 1,212.4 | $ | 1,288.7 | $ | 1,615.6 | $ | 1,366.4 | ||||||||
Earnings before income taxes | $ | 548.2 | $ | 565.7 | $ | 852.6 | $ | 204.5 | ||||||||
Net earnings | $ | 401.5 | $ | 467.5 | $ | 643.1 | $ | 108.7 | ||||||||
Basic per common share amounts: | ||||||||||||||||
Basic earnings per share | $ | 0.91 | $ | 1.06 | $ | 1.46 | $ | 0.25 | ||||||||
Diluted per common share amounts: | ||||||||||||||||
Diluted earnings per share | $ | 0.90 | $ | 1.05 | $ | 1.45 | $ | 0.25 |
Year ended June 30, 2017 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenues | $ | 2,916.9 | $ | 2,987.3 | $ | 3,410.8 | $ | 3,064.8 | ||||||||
Gross profit | $ | 1,173.3 | $ | 1,219.5 | $ | 1,499.8 | $ | 1,217.6 | ||||||||
Earnings before income taxes | $ | 528.7 | $ | 786.2 | $ | 827.9 | $ | 388.4 | ||||||||
Net earnings | $ | 368.7 | $ | 510.9 | $ | 587.9 | $ | 265.8 | ||||||||
Basic per common share amounts: | ||||||||||||||||
Basic earnings per share | $ | 0.82 | $ | 1.14 | $ | 1.32 | $ | 0.60 | ||||||||
Diluted per common share amounts: | ||||||||||||||||
Diluted earnings per share | $ | 0.81 | $ | 1.13 | $ | 1.31 | $ | 0.59 |
/s/ Carlos A. Rodriguez |
Carlos A. Rodriguez |
President and Chief Executive Officer |
/s/ Jan Siegmund |
Jan Siegmund |
Chief Financial Officer |
/s/ Deloitte & Touche LLP |
Parsippany, New Jersey |
Employed by | ||||||
Name | Age | Position | ADP Since | |||
Brock Albinson | 43 | Corporate Controller and Principal Accounting Officer | 2007 | |||
John Ayala | 51 | President, Major Account Services and ADP Canada | 2002 | |||
Maria Black | 44 | President, Small Business Solutions and Human Resources | 1996 | |||
Outsourcing | ||||||
Michael A. Bonarti | 52 | Corporate Vice President, General Counsel and Secretary | 1997 | |||
Deborah L. Dyson | 52 | President, National Accounts Services | 1988 | |||
Michael C. Eberhard | 56 | Vice President and Treasurer | 1998 | |||
Sreeni Kutam | 48 | Chief Human Resources Officer | 2014 | |||
Don McGuire | 58 | President, Employer Services International | 1998 | |||
Dermot J. O'Brien | 52 | Chief Transformation Officer | 2012 | |||
Thomas Perrotti | 49 | President, Worldwide Sales and Marketing | 1993 | |||
Douglas Politi | 56 | President, Compliance Solutions | 1992 | |||
Carlos A. Rodriguez | 54 | President and Chief Executive Officer | 1999 | |||
Stuart Sackman | 57 | Corporate Vice President, Global Shared Services | 1992 | |||
Jan Siegmund | 54 | Chief Financial Officer | 1999 | |||
Donald Weinstein | 49 | Corporate Vice President, Global Product and Technology | 2006 |
Page in Form 10-K | |||
Schedule II - Valuation and Qualifying Accounts |
Amended and Restated Certificate of Incorporation dated November 11, 1998 - incorporated by reference to Exhibit 3.1 to the Company's Registration Statement No. 333-72023 on Form S-4 filed with the Commission on February 9, 1999 | |
Amended and Restated By-laws of the Company - incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K dated August 3, 2016 | |
Form of Indenture between the Company and Wells Fargo Bank, National Association, as trustee - incorporated by reference to Exhibit 4.3 to the Company's Registration Statement on Form S-3 (No. 333-206631), filed on August 28, 2015 | |
Form of First Supplemental Indenture between Automatic Data Processing, Inc. and Wells Fargo Bank, National Association, as trustee - incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated September 15, 2015 | |
Form of 2.250% Senior Note due 2020 - incorporated by reference to Exhibit A to Exhibit 4.1 to the Company's Current Report on Form 8-K dated September 15, 2015 | |
Form of 3.375% Senior Note due 2025 - incorporated by reference to Exhibit B to Exhibit 4.1 to the Company's Current Report on Form 8-K dated September 15, 2015 | |
364-Day Credit Agreement, dated as of June 13, 2018, among Automatic Data Processing, Inc., the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A., Citibank, N.A. and MUFG Bank, Ltd., as Syndication Agents, and Deutsche Bank Securities Inc. and Barclays Bank PLC, as Documentation Agents - incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 13, 2018 | |
Five-Year Credit Agreement, dated as of June 14, 2017, among Automatic Data Processing, Inc., the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A., Citibank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Syndication Agents, and Deutsche Bank Securities Inc. and Barclays Bank PLC, as Documentation Agents - incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated June 14, 2017 | |
Five-Year Credit Agreement, dated as of June 13, 2018, among Automatic Data Processing, Inc., the Lenders Party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A., Citibank, N.A. and MUFG Bank, Ltd., as Syndication Agents, and Deutsche Bank Securities Inc. and Barclays Bank PLC, as Documentation Agents - incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated June 13, 2018 | |
Separation and Distribution Agreement, dated September 29, 2014, by and between Automatic Data Processing, Inc. and CDK Global Holdings, LLC - incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated October 1, 2014 | |
Amended and Restated Supplemental Officers Retirement Plan - incorporated by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (Management Compensatory Plan) | |
Automatic Data Processing, Inc. Deferred Compensation Plan, as Amended and Restated Effective September 15, 2016 - incorporated by reference to Exhibit 10.10 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016 (Management Compensatory Plan) | |
Automatic Data Processing, Inc. Change in Control Severance Plan for Corporate Officers, as amended - incorporated by reference to Exhibit 10.8 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (Management Compensatory Plan) |
Automatic Data Processing, Inc. Amended and Restated Employees’ Savings-Stock Purchase Plan - incorporated by reference to Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (Management Compensatory Plan) | |
Automatic Data Processing, Inc. Executive Retirement Plan - incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |
Automatic Data Processing, Inc. Retirement and Savings Restoration Plan - incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |
Automatic Data Processing, Inc. Corporate Officer Severance Plan - incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |
Automatic Data Processing, Inc. Amended and Restated 2008 Omnibus Award Plan (the "2008 Omnibus Award Plan") - incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018 (Management Compensatory Plan) | |
French Sub Plan under the 2008 Omnibus Award Plan effective as of January 26, 2012 - incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2012 (Management Compensatory Plan) | |
Amended French Sub Plan under the 2008 Omnibus Award Plan effective as of April 6, 2016 (Management Compensatory Plan) - incorporated by reference to Exhibit 10.22 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016 (Management Compensatory Plan) | |
Form of Stock Option Grant Agreement under the 2008 Omnibus Award Plan (Form for Non- Employee Directors) for grants prior to November 12, 2008 - incorporated by reference to Exhibit 10.27 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2008 (Management Compensatory Plan) | |
Form of Deferred Stock Unit Award Agreement under the 2008 Omnibus Award Plan - incorporated by reference to Exhibit 10.33 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012 (Management Compensatory Plan) | |
Form of Stock Option Grant Agreement under the 2008 Omnibus Award Plan (Form for Non- Employee Directors) for grants beginning November 12, 2008 - incorporated by reference to Exhibit 10.28 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (Management Compensatory Plan) | |
Form of Stock Option Grant Agreement under the 2008 Omnibus Award Plan (Form for Employees) - incorporated by reference to Exhibit 10.29 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (Management Compensatory Plan) | |
Form of Performance Stock Unit Award Agreement under the 2008 Omnibus Award Plan - incorporated by reference to Exhibit 10.30 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2013 (Management Compensatory Plan) | |
Form of Performance Stock Unit Award Agreement under the 2008 Omnibus Award Plan (Form for Corporate Officers) - incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |
Form of Restricted Stock Award Agreement under the 2008 Omnibus Award Plan (Form for Corporate Officers) - incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |
Form of Stock Option Grant under the 2008 Omnibus Award Plan (Form for Corporate Officers) - incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |
Form of Performance-Based Restricted Stock Unit Award Agreement under the 2008 Omnibus Award Plan - incorporated by reference to Exhibit 10.32 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2015 (Management Compensatory Plan) | |
Form of Performance Stock Unit Award Agreement under the 2008 Omnibus Award Plan (Form for Corporate Officers) - incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016 (Management Compensatory Plan) | |
Form of Stock Option Grant Agreement under the 2008 Omnibus Award Plan (Form for Corporate Officers) - incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016 (Management Compensatory Plan) | |
Form of Performance-Based Restricted Stock Unit Award Agreement under the 2008 Omnibus Award Plan - incorporated by reference to Exhibit 10.35 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016 (Management Compensatory Plan) |
Form of Performance Stock Unit Award Agreement under the 2008 Omnibus Award Plan for grants beginning September 1, 2017 (Management Compensatory Plan) - incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (Management Compensatory Plan) | |
Form of Stock Option Grant Agreement under the 2008 Omnibus Award Plan for grants beginning September 1, 2017 (Management Compensatory Plan) - incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (Management Compensatory Plan) | |
Form of Restricted Stock and Restricted Stock Unit Award Agreement under the 2008 Omnibus Award Plan for grants beginning September 1, 2017 (Management Compensatory Plan) - incorporated by reference to Exhibit 10.35 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (Management Compensatory Plan) | |
Form of Restricted Stock and Restricted Stock Unit Award Agreement under the 2008 Omnibus Award Plan for grants beginning September 1, 2018 (Management Compensatory Plan) | |
Separation Agreement and Release, dated June 13, 2018, by and between Ed Flynn and Automatic Data Processing, Inc. | |
Subsidiaries of the Company | |
Consent of Independent Registered Public Accounting Firm | |
Certification by Carlos A. Rodriguez pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |
Certification by Jan Siegmund pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |
Certification by Carlos A. Rodriguez pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
Certification by Jan Siegmund pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | XBRL instance document |
101.SCH | XBRL taxonomy extension schema document |
101.CAL | XBRL taxonomy extension calculation linkbase document |
101.LAB | XBRL taxonomy label linkbase document |
101.PRE | XBRL taxonomy extension presentation linkbase document |
101.DEF | XBRL taxonomy extension definition linkbase document |
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, 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 | |||||||||
Year ended June 30, 2017: | |||||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||
Current | $ | 38,111 | $ | 27,660 | $ | 1,692 | $ | (17,901 | ) | (B) | $ | 49,561 | |||||||||
Long-term | $ | 547 | $ | 260 | $ | 89 | $ | (93 | ) | (B) | $ | 803 | |||||||||
Deferred tax valuation allowance | $ | 15,369 | $ | 892 | $ | (1,754 | ) | $ | (5,101 | ) | $ | 9,406 | |||||||||
Year ended June 30, 2016: | |||||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||
Current | $ | 35,493 | $ | 18,626 | $ | (265 | ) | $ | (15,743 | ) | (B) | $ | 38,111 | ||||||||
Long-term | $ | 634 | $ | 216 | $ | 93 | $ | (395 | ) | (B) | $ | 547 | |||||||||
Deferred tax valuation allowance | $ | 23,707 | $ | 1,364 | $ | (1,022 | ) | $ | (8,680 | ) | $ | 15,369 |
AUTOMATIC DATA PROCESSING, INC. | |||
(Registrant) | |||
August 3, 2018 | By | /s/ Carlos A. Rodriguez | |
Carlos A. Rodriguez | |||
President and Chief Executive Officer |
Signature | Title | Date | ||
/s/ Carlos A. Rodriguez | President and Chief Executive | August 3, 2018 | ||
(Carlos A. Rodriguez) | Officer, Director | |||
(Principal Executive Officer) | ||||
/s/ Jan Siegmund | Chief Financial Officer | August 3, 2018 | ||
(Jan Siegmund) | (Principal Financial Officer) | |||
/s/ Brock Albinson | Corporate Controller | August 3, 2018 | ||
(Brock Albinson) | (Principal Accounting Officer) | |||
/s/ Peter Bisson | Director | August 3, 2018 | ||
(Peter Bisson) | ||||
/s/ Richard T. Clark | Director | August 3, 2018 | ||
(Richard T. Clark) | ||||
/s/ Eric C. Fast | Director | August 3, 2018 | ||
(Eric C. Fast) | ||||
/s/ Linda R. Gooden | Director | August 3, 2018 | ||
(Linda R. Gooden) | ||||
/s/ Michael P. Gregoire | Director | August 3, 2018 | ||
(Michael P. Gregoire) |
/s/ R. Glenn Hubbard | Director | August 3, 2018 | ||
(R. Glenn Hubbard) | ||||
/s/ John P. Jones | Director | August 3, 2018 | ||
(John P. Jones) | ||||
/s/ Thomas J. Lynch | Director | August 3, 2018 | ||
(Thomas J. Lynch) | ||||
/s/ Scott F. Powers | Director | August 3, 2018 | ||
(Scott F. Powers) | ||||
/s/ William J. Ready | Director | August 3, 2018 | ||
(William J. Ready) | ||||
/s/ Sandra S. Wijnberg | Director | August 3, 2018 | ||
(Sandra S. Wijnberg) |
1. | Terms and Conditions. |
(i) | Book Entry. For Participants whose home country is the United States, upon the grant of Restricted Stock, the Committee shall cause share(s) of Common Stock to be registered in the name of the Participant and held in book-entry form subject to the Company’s directions. |
(ii) | Payment. For Participants whose home country is not the United States, (x) the Company shall settle as soon as administratively possible after the applicable vesting date, any vested portion of the Restricted Unit Award by the payment to the Participant in cash (without interest) of an amount equal to the Participant’s vested portion of the Restricted Unit Award, subject to applicable Tax-Related Items (as defined in Appendix B to this Agreement) and (y) at no time shall the Participant be deemed for any purpose to be the owner of shares of Common Stock in connection with a Restricted Unit Award and the Participant shall have no right to dividends or dividend equivalent payments in respect of the Restricted Unit Award. |
2. | Restrictive Covenant Agreement; Clawback; Incorporation by Reference. |
5. | Miscellaneous. |
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2 | ||
3 | ||
4 | ||
5 | ||
6 | ||
7 | ||
8 | ||
9 | ||
10 | ||
11 | ||
12 | ||
EXECUTIVE By: /s/ Ed Flynn | |
AUTOMATIC DATA PROCESSING, INC. By: /s/ Michael A. Bonarti Michael A. Bonarti, VP | |
13 | ||
14 | ||
15 | ||
16 | ||
17 | ||
18 | ||
19 | ||
20 | ||
Signed: /s/ Ed Flynn Printed Name: Ed Flynn Date: 6.13.2018 | |
21 | ||
22 | ||
23 | ||
24 | ||
Signed: /s/ Ed Flynn Printed Name: Ed Flynn Date: June 13, 2018 |
25 | ||
Jurisdiction of | |||
Name of Subsidiary | Incorporation | ||
ADP Atlantic, LLC | Delaware | ||
ADP Benefit Services KY, Inc. | Kentucky | ||
ADP Brasil Ltda | Brazil | ||
ADP Broker-Dealer, Inc. | New Jersey | ||
ADP Canada Co. | Canada | ||
ADP Employer Services GmbH | Germany | ||
ADP Europe, S.A.S | France | ||
ADP France SAS | France | ||
ADP GlobalView B.V. | Netherlands | ||
ADP GSI France SAS | France | ||
ADP Indemnity, Inc. | Vermont | ||
ADP International Services B.V. | Netherlands | ||
ADP, LLC | Delaware | ||
ADP MasterTax, Inc. | Arizona | ||
ADP Pacific, Inc. | Delaware | ||
ADP Payroll Services, Inc. | Delaware | ||
ADP Screening and Selection Services, Inc. | Colorado | ||
ADP Tax Services, Inc. | Delaware | ||
ADP Technology Services, Inc. | Delaware | ||
ADP TotalSource I, Inc. | Florida | ||
ADP TotalSource CO XXI, Inc. | Colorado | ||
ADP TotalSource CO XXII, Inc. | Colorado | ||
ADP TotalSource of CO XXIII, Inc. | Colorado | ||
ADP TotalSource DE IV, Inc. | Delaware | ||
ADP TotalSource FL XVI, Inc. | Florida | ||
ADP TotalSource FL XVII, Inc. | Florida | ||
ADP TotalSource FL XIX, Inc. | Florida | ||
ADP TotalSource FL XXIX, Inc. | Florida | ||
ADP TotalSource Group, Inc. | Florida | ||
ADP TotalSource NH XXVIII, Inc. | New Hampshire | ||
Automatic Data Processing Insurance Agency, Inc. | New Jersey | ||
Automatic Data Processing Limited | Australia | ||
Automatic Data Processing Limited | United Kingdom |
/s/ Deloitte & Touche LLP |
1. | I have reviewed this Annual Report on Form 10-K of Automatic Data Processing, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 3, 2018 | /s/ Carlos A. Rodriguez |
Carlos A. Rodriguez | ||
President and Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K of Automatic Data Processing, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 3, 2018 | /s/ Jan Siegmund |
Jan Siegmund | ||
Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Date: | August 3, 2018 | /s/ Carlos A. Rodriguez |
Carlos A. Rodriguez | ||
President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Date: | August 3, 2018 | /s/ Jan Siegmund |
Jan Siegmund | ||
Chief Financial Officer |
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Document And Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jul. 31, 2018 |
Dec. 31, 2017 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Entity Public Float | $ 51,688,560,196 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2018 | ||
Entity Registrant Name | AUTOMATIC DATA PROCESSING INC | ||
Entity Central Index Key | 0000008670 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 438,082,756 |
Statements Of Consolidated Earnings (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Statement [Abstract] | |||
Direct pass-through costs, Professional Employer Organization revenues | $ 39,140.9 | $ 34,567.4 | $ 30,928.6 |
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
NET EARNINGS | $ 1,620.8 | $ 1,733.4 | $ 1,492.5 |
Other comprensive income: | |||
Currency translation adjustments | 2.8 | 23.0 | (25.5) |
Unrealized net (losses)/gains on available-for-sale securities | (460.7) | (405.7) | 288.8 |
Tax effect | 123.4 | 141.6 | (102.2) |
Reclassification of net losses/(gains) on available-for-sale securities to net earnings | 2.7 | (2.2) | 5.0 |
Tax effect | (0.6) | 0.8 | (1.7) |
Pension net gains/(losses) arising during the year | 87.0 | 109.6 | (199.4) |
Tax effect | (18.7) | (43.6) | 72.9 |
Reclassification of pension liability adjustment to net earnings | 9.3 | 20.6 | 12.0 |
Tax effect | (4.5) | (8.2) | (4.4) |
Other comprehensive (loss)/income, net of tax | (259.3) | (164.1) | 45.5 |
Comprehensive income | $ 1,361.5 | $ 1,569.3 | $ 1,538.0 |
Consolidated Balance Sheets - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||
---|---|---|---|---|---|
Current assets: | |||||
Cash and cash equivalents | $ 2,170.0 | $ 2,780.4 | [1] | ||
Accounts receivable, net of allowance for doubtful accounts of $51.3 and $49.6, respectively | 1,984.2 | 1,703.6 | |||
Other current assets | 758.0 | 883.2 | |||
Total current assets before funds held for clients | 4,912.2 | 5,367.2 | |||
Funds held for clients | 27,137.8 | 27,291.5 | |||
Total current assets | 32,050.0 | 32,658.7 | |||
Long-term receivables, net of allowance for doubtful accounts of $0.5 and $0.8, respectively | 25.5 | 28.0 | |||
Property, plant and equipment, net | 793.7 | 779.9 | |||
Other assets | 1,089.6 | 1,352.2 | |||
Goodwill | 2,243.5 | 1,741.0 | |||
Intangible assets, net | 886.4 | 620.2 | |||
Total assets | 37,088.7 | 37,180.0 | |||
Liabilities | |||||
Accounts payable | 135.4 | 149.7 | |||
Accrued expenses and other current liabilities | 1,547.7 | 1,381.9 | |||
Accrued payroll and payroll-related expenses | 667.7 | 562.5 | |||
Dividends payable | 298.9 | 250.5 | |||
Short-term deferred revenues | 226.5 | 232.9 | |||
Income taxes payable | 43.9 | 49.0 | |||
Total current liabilities before client funds obligations | 2,920.1 | 2,626.5 | |||
Client funds obligations | 27,493.5 | 27,189.4 | |||
Total current liabilities | 30,413.6 | 29,815.9 | |||
Long-term debt | 2,002.4 | 2,002.4 | |||
Other liabilities | 728.0 | 830.2 | |||
Deferred income taxes | 107.3 | 163.1 | |||
Long-term deferred revenues | 377.8 | 391.4 | |||
Total liabilities | 33,629.1 | 33,203.0 | |||
Stockholders' equity: | |||||
Preferred stock, $1.00 par value: Authorized, 0.3 shares; issued, none | 0.0 | 0.0 | |||
Common stock, $0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at June 30, 2018 and June 30, 2017; outstanding, 438.8 and 445.0 shares at June 30, 2018 and June 30, 2017, respectively | 63.9 | 63.9 | |||
Capital in excess of par value | 1,014.8 | 867.8 | |||
Retained earnings | 15,271.3 | 14,728.2 | |||
Treasury stock - at cost: 199.9 and 193.7 shares at June 30, 2018 and June 30, 2017, respectively | (12,209.6) | (11,303.7) | |||
Accumulated other comprehensive loss | (680.8) | (379.2) | |||
Total stockholders’ equity | 3,459.6 | 3,977.0 | |||
Total liabilities and stockholders’ equity | $ 37,088.7 | $ 37,180.0 | |||
|
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, current | $ 51.3 | $ 49.6 |
Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized | 300,000.0 | 300,000.0 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 638,700,000 | 638,700,000 |
Common stock, shares outstanding | 438,800,000 | 445,000,000 |
Treasury stock, shares | 199,900,000 | 193,700,000 |
Allowance for doubtful accounts, long-term | $ 0.5 | $ 0.8 |
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] |
---|---|---|---|---|---|---|
Common stock, shares issued, beginning of period at Jun. 30, 2015 | 638.7 | |||||
Stockholders' Equity, balance, beginning of period at Jun. 30, 2015 | $ 63.9 | $ 663.3 | $ 13,460.3 | $ (9,118.4) | $ (260.6) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | $ 1,492.5 | 0.0 | 0.0 | 0.0 | ||
Other comprehensive income (loss) | 0.0 | 0.0 | 0.0 | 45.5 | ||
Stock-based compensation expense | 117.2 | 0.0 | 0.0 | 0.0 | ||
Issuances relating to stock compensation plans | (47.5) | 0.0 | 182.5 | 0.0 | ||
Tax benefit from stock compensation plans | 35.1 | 0.0 | 0.0 | 0.0 | ||
Treasury stock | 0.0 | 0.0 | (1,202.7) | 0.0 | ||
Dividends, Stock | 0.0 | (955.7) | 0.0 | 0.0 | ||
Common stock, shares issued, end of period at Jun. 30, 2016 | 638.7 | |||||
Stockholders' Equity, balance, end of period at Jun. 30, 2016 | $ 63.9 | 768.1 | 14,003.3 | (10,138.6) | (215.1) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other | 0.0 | 6.2 | 0.0 | 0.0 | ||
Net earnings | $ 1,733.4 | 0.0 | 0.0 | 0.0 | ||
Other comprehensive income (loss) | 0.0 | 0.0 | 0.0 | (164.1) | ||
Stock-based compensation expense | 115.5 | 0.0 | 0.0 | 0.0 | ||
Issuances relating to stock compensation plans | (15.8) | 0.0 | 169.2 | 0.0 | ||
Treasury stock | 0.0 | 0.0 | (1,334.3) | 0.0 | ||
Dividends, Stock | 0.0 | (1,008.5) | 0.0 | 0.0 | ||
Common stock, shares issued, end of period at Jun. 30, 2017 | 638.7 | 638.7 | ||||
Stockholders' Equity, balance, end of period at Jun. 30, 2017 | $ 63.9 | 867.8 | 14,728.2 | (11,303.7) | (379.2) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | $ 1,620.8 | 0.0 | 0.0 | 0.0 | ||
Other comprehensive income (loss) | 0.0 | 0.0 | 0.0 | (259.3) | ||
Stock-based compensation expense | 145.3 | 0.0 | 0.0 | 0.0 | ||
Issuances relating to stock compensation plans | 1.7 | 0.0 | 144.5 | 0.0 | ||
Treasury stock | 0.0 | 0.0 | (1,050.4) | 0.0 | ||
Other (see Note 1) | (42.3) | 42.3 | ||||
Dividends, Stock | 0.0 | (1,120.0) | 0.0 | 0.0 | ||
Common stock, shares issued, end of period at Jun. 30, 2018 | 638.7 | 638.7 | ||||
Stockholders' Equity, balance, end of period at Jun. 30, 2018 | $ 63.9 | $ 1,014.8 | $ 15,271.3 | $ (12,209.6) | $ (680.8) |
Statements of Stockholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Stockholders' Equity [Abstract] | |||
Treasury Stock, Shares, Acquired | 8.5 | 13.5 | 13.8 |
Common Stock, Dividends, Per Share, Declared | $ 2.52 | $ 2.24 | $ 2.08 |
Statements Of Consolidated Cash Flows - USD ($) $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||||
Cash Flows from Operating Activities: | ||||||||
NET EARNINGS | $ 1,620.8 | $ 1,733.4 | $ 1,492.5 | |||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | ||||||||
Depreciation and amortization | 377.6 | 316.1 | [1] | 288.6 | [1] | |||
Deferred income taxes | 0.5 | 10.0 | [1] | 0.7 | [1] | |||
Stock-based compensation expense | 175.4 | 138.9 | [1] | 137.6 | [1] | |||
Net pension expense | 330.4 | 24.2 | [1] | 17.7 | [1] | |||
Net amortization of premiums and accretion of discounts on available-for-sale securities | 71.5 | 85.9 | [1] | 94.1 | [1] | |||
Gain on sale of assets | (0.4) | 0.0 | [1] | (13.9) | [1] | |||
Gain on sale of divested businesses, net of tax | 0.0 | (121.4) | [1] | (21.8) | [1] | |||
Other | 31.9 | 37.1 | [1] | 30.7 | [1] | |||
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses: | ||||||||
(Increase)/decrease in accounts receivable | (291.8) | 23.4 | [1] | (224.6) | [1] | |||
Decrease/(increase) in other assets | 93.5 | (269.1) | [1] | (108.9) | [1] | |||
Decrease in accounts payable | (1.9) | (11.6) | [1] | (15.9) | [1] | |||
Increase in accrued expenses and other liabilities | 107.7 | 159.0 | [1] | 220.5 | [1] | |||
Net cash flows provided by operating activities | 2,515.2 | 2,125.9 | [1] | 1,897.3 | [1] | |||
Cash Flows from Investing Activities: | ||||||||
Purchases of corporate and client funds marketable securities | (4,876.8) | (4,382.8) | [1] | (5,876.3) | [1] | |||
Proceeds from the sales and maturities of corporate and client funds marketable securities | 3,455.0 | 3,593.6 | [1] | 5,215.4 | [1] | |||
Net decrease/(increase) in restricted cash and cash equivalents held to satisfy client funds obligations | 0.0 | 0.0 | ||||||
Capital expenditures | (206.1) | (240.2) | [1] | (168.5) | [1] | |||
Additions to intangibles | (264.7) | (230.4) | [1] | (217.5) | [1] | |||
Acquisitions of businesses, net of cash acquired | (612.4) | (87.4) | [1] | 0.0 | [1] | |||
Proceeds from the sale of property, plant, and equipment and other assets | 0.4 | 0.0 | [1] | 15.7 | [1] | |||
Proceeds from the sale of divested businesses | 0.0 | 234.0 | [1] | 162.2 | [1] | |||
Net cash flows used in investing activities | (2,504.6) | (1,113.2) | [1] | (869.0) | [1] | |||
Cash Flows from Financing Activities: | ||||||||
Net increase/(decrease) in client funds obligations | 340.4 | (6,120.6) | [1] | 8,803.3 | [1] | |||
Proceeds from debt issuance | 0.0 | 0.0 | [1] | 1,998.3 | [1] | |||
Payments of debt | (7.3) | (2.0) | [1] | (1.5) | [1] | |||
Repurchases of common stock | (989.3) | (1,259.6) | [1] | (1,155.7) | [1] | |||
Net proceeds from stock purchase plan and stock-based compensation plans | 69.3 | 95.7 | [1] | 75.3 | [1] | |||
Dividends paid | (1,063.7) | (995.2) | [1] | (943.6) | [1] | |||
Other | (5.3) | 0.0 | [1] | (23.4) | [1] | |||
Net cash flows (used in)/provided by financing activities | (1,655.9) | (8,281.7) | [1] | 8,752.7 | [1] | |||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 5.8 | (8.0) | [1] | (8.7) | [1] | |||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | (1,639.5) | (7,277.0) | [1] | 9,772.3 | [1] | |||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year | [1] | 8,181.6 | 15,458.6 | 5,686.3 | ||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | 6,542.1 | 8,181.6 | [1] | 15,458.6 | [1] | |||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | [1] | 8,181.6 | 15,458.6 | 5,686.3 | ||||
Cash paid for interest | 100.5 | 78.1 | [1] | 37.5 | [1] | |||
Cash paid for income taxes, net of income tax refunds | $ 529.7 | $ 817.1 | [1] | $ 651.6 | [1] | |||
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Summary of Significant Accounting Policies Summary of Significant Accounting Policies |
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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. In fiscal 2018, the Company created a grantor trust, which now holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees. The Company is the sole beneficial owner of the trust. The trust meets the criteria in Accounting Standards Codification ("ASC") 810 “Consolidation” to be characterized as a variable interest entity (“VIE”). The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and therefore, consolidates the trust. Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 6, “Corporate Investments and Funds Held for Clients.” The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenues, expenses, and accumulated other comprehensive (loss)/income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. The Consolidated Financial Statements and all relevant footnotes have been adjusted for the Procure-to-Pay business that qualified as a discontinued operation. 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 non-recurring gains and losses, miscellaneous processing services, the elimination of intercompany transactions, interest expense, 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), and certain charges and expenses that have not been allocated to the reportable segments. Changes to the allocation methodology for certain allocations have been adjusted in both the current period and the prior period and did not materially affect reportable segment results. 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). Fees associated with services are recognized in the period services are rendered and earned under service arrangements with clients where service fees are fixed or determinable and collectability is reasonably assured. PEO 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 is not the primary obligor with respect to this aspect of the PEO arrangement. With respect to the payroll and payroll taxes, the worksite employer is the primary obligor, has latitude in establishing price, selects suppliers, and determines the service specifications. The fees collected from the worksite employers for benefits, workers’ compensation and state unemployment taxes are presented in revenues and the associated costs of benefits, workers’ compensation and state unemployment taxes are included in operating expenses, as the Company acts as a principal with respect to this aspect of the arrangement. With respect to the fees for benefits, workers’ compensation and state unemployment taxes, the Company is the primary obligor, has latitude in establishing price, selects suppliers, determines the service specifications and is liable for credit risk. Interest income on collected but not yet remitted funds held for clients is recognized in revenues as earned, as the collection, holding and remittance of these funds are critical components of providing these services. Client implementation fees are charged to set clients up on the Company's platform and are deferred until the client has gone live on the Company's solutions and services have begun. These fees are amortized to revenue over the longer of the contractual term or the expected client life, including estimated renewals of client contracts. Additionally, certain implementation costs are deferred until the client has gone live on the Company's solution and services have begun and are then amortized over the longer of the contractual term or the expected client life, including estimated renewals of client contracts. The Company assesses 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. D. 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. E. 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 a specific-identification basis and are included in other expense/(income), 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. F. 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 6) and its long term debt 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 various 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, as well as the mortgage-backed securities that are included within Other securities in Note 6, 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 Notes are valued 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. 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. G. 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:
The Company has obligations under various facilities and equipment leases. The Company assesses whether these arrangements meet the criteria for capital leases by determining whether the agreement transfers ownership of the asset, whether the lease includes a bargain purchase option, whether the lease term is for greater than 75% of the asset's useful life, or whether the minimum lease payments exceed 90% of the leased equipment's fair market value. All of the Company's leases are classified as operating leases. Total expense under these operating lease agreements was approximately $234.9 million, $234.5 million, and $201.7 million in fiscal 2018, 2017, and 2016, respectively. H. 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, 2018 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. I. 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. J. 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. K. 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. L. Earnings per Share (“EPS”). The Company computes EPS in accordance with ASC 260. The calculations of basic and diluted EPS are as follows:
Options to purchase 0.9 million, 1.0 million, and 1.8 million shares of common stock for fiscal 2018, 2017, and 2016, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. M. 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 period. 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 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. See Note 11 for additional information on the Company's stock-based compensation programs. N. Internal Use Software. Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized over a three to five-year period on a straight-line basis. 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. O. 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. P. 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. The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service (“IRS”) and other tax authorities. 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, 2018 and 2017, the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $45.2 million and $74.6 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. Based on current estimates, favorable settlements related to various jurisdictions and tax periods could increase earnings by up to $2 million and expected cash payments could be up to $25 million in the next twelve months. The liability related to cash payments expected to be paid within the next 12 months has been reclassified from other liabilities to current liabilities on the Consolidated Balance Sheets. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability, and deferred taxes in the period in which the facts that give rise to a revision become known. Q. 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. For the fiscal years 2013 to 2017, as well as in July 2017 for the year ended June 30, 2018 ("fiscal 2018") policy year, 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 $218.0 million in July 2018 to enter into a reinsurance arrangement to cover substantially all losses for the fiscal 2019 policy year on terms substantially similar to the fiscal 2018 policy. R. Recently Issued Accounting Pronouncements. Recently Adopted Accounting Pronouncements In March 2018, the Company adopted ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Act”) from accumulated other comprehensive (loss)/income to retained earnings. The June 30, 2018 Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive income and into retained earnings of $42.3 million. The Company's policy for releasing disproportionate income tax effects from AOCI utilizes the aggregate approach. Refer to Note 14 for additional detail regarding the components of the reclassification. The adoption of ASU 2018-02 did not have an impact on the Company's consolidated results of operations or cash flows. Effective July 1, 2017, the Company adopted Accounting Standards Update ("ASU") 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash. The Company retrospectively adopted the new standard, and as a result included restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the Statements of Consolidated Cash Flows. Accordingly, the statement of cash flows has been revised to include restricted cash and restricted cash equivalents associated with funds held to satisfy client obligations, as a component of cash, cash equivalents, restricted cash and restricted cash equivalents. As a result of this adoption, the Company adjusted the Statements of Consolidated Cash Flows from previously reported amounts as follows:
Effective July 1, 2017, the Company adopted ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairments.” ASU 2017-04 establishes a one-step process for testing goodwill for a decrease in value, requiring a goodwill impairment loss to be measured as the excess of the reporting unit’s carrying amount over its fair value. The guidance eliminates the second step of the current two-step process that requires the impairment to be measured as the difference between the implied value of a reporting unit’s goodwill with the goodwill’s carrying amount. The adoption of ASU 2017-04 did not have an impact on the Company’s consolidated results of operations, financial condition, or cash flows. In July 2017, the Company adopted ASU 2017-01, "Business Combinations (Topic 805) - Clarifying the Definition of a Business." ASU 2017-01 clarifies the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The adoption of ASU 2017-01 did not have a material impact on the Company's consolidated results of operations, financial condition, or cash flows. Recently Issued Accounting Pronouncements The following table summarizes recent ASU's issued by the Financial Accounting Standards Board ("FASB") that could have a material impact on the Company's consolidated results of operations, financial condition, or cash flows.
Estimated impact of adoption of ASU 2014-09 and ASU 2017-07 on the Statements of Consolidated Earnings:
*Includes the impact of the remeasurement, as required by the Act, of deferred tax liabilities associated with the capitalized selling and implementation expenses created as a result of the adoption of ASC 606.
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Acquisitions Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||
Acquisitions | NOTE 2. ACQUISITIONS In October 2017, the Company acquired 100% of the outstanding shares of Global Cash Card, Inc. ("GCC"), a leader in digital payments, including paycards and other electronic accounts, for approximately $490 million in cash, net of cash acquired. The acquisition of GCC makes ADP the only human capital management provider with a proprietary digital payments processing platform. The results of GCC are reported within the Company’s Employer Services segment. Pro forma information has not been presented because the effect of the acquisition is not material to the Company's consolidated financial results. The preliminary purchase price allocation for GCC is as follows:
The Company determined the purchase price allocations for this acquisition based on estimates of the fair value of tangible and intangible assets acquired and liabilities assumed, utilizing recognized valuation techniques, including the income and market approaches. The goodwill recorded as a result of the GCC transaction represents future economic benefits we expect to achieve as a result of the acquisition and expected cost synergies. None of the goodwill resulting from the acquisition is tax deductible. Intangible assets for GCC, which totaled $132.5 million, included technology and software, and customer contracts and lists which are being amortized over a weighted average life of approximately 8 years. In January 2018, the Company acquired 100% of the outstanding shares of WorkMarket, Inc. ("WorkMarket"), a leading provider of cloud-based freelance management solutions, for approximately $125 million in cash. The results of WorkMarket are reported within the Company’s Employer Services segment. The Company acquired two businesses during fiscal 2017 for total upfront cash consideration of approximately $90 million and with remaining value of contingent consideration of up to $12 million, which is payable over the next two years, subject to the achievement of specified financial metrics and/or other conditions. The Company determined the fair value of the contingent consideration on the acquisition date using various estimates that are not observable in the market and represent a Level 3 measurement within the fair value hierarchy. The acquisitions, individually or in aggregate, were not material to the Company's results of operations, financial position, or cash flows and, therefore, the pro forma impact of these acquisitions is not presented. The results of the acquisitions are reported within the Company’s Employer Services segment. The preliminary allocation of the purchase price is based upon estimates and assumptions that are subject to change within the purchase price allocation period, which is generally one year from the acquisition date. The primary areas of the purchase price allocation that are not yet finalized relate to the measurement of certain assets and liabilities, certain tax matters, and residual goodwill. Accordingly, the measurement period for such purchase price allocations will end when the information becomes available but will not exceed twelve months from the date of acquisition. |
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Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | NOTE 3. DIVESTITURES On November 28, 2016, the Company completed the sale of its Consumer Health Spending Account ("CHSA") and Consolidated Omnibus Reconciliation Act ("COBRA") businesses for a pre-tax gain of $205.4 million, and recorded such gain within Other expense/(income), net on the Statements of Consolidated Earnings. The historical results of operations of these businesses are included in the Employer Services segment. On September 1, 2015, the Company completed the sale of its AdvancedMD ("AMD") business for a pre-tax gain of $29.1 million, less costs to sell, and recorded such gain within Other expense/(income), net on the Statements of Consolidated Earnings. The historical results of operations of this business are included in the Other segment. The Company determined that the CHSA, COBRA and AMD divestitures did not meet the criteria for reporting discontinued operations under ASU 2014-08 as the disposition of these businesses does not represent a strategic shift that has a major effect on the Company's operations or financial results. |
Service Alignment Initiative Service Alignment Initiative |
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Service Alignment Initiative | NOTE 4. SERVICE ALIGNMENT INITIATIVE On July 28, 2016, the Company announced a Service Alignment Initiative that simplified the Company's service organization by aligning the Company's service operations to its strategic platforms and locations. In fiscal 2016, the Company entered into leases in Norfolk, Virginia and Maitland, Florida, and in fiscal 2017, the Company entered into a lease in Tempe, Arizona as part of this effort. The Company began incurring charges during the first quarter of fiscal 2017. The charges primarily relate to employee separation benefits recognized under Accounting Standards Codification ("ASC") 712, and also include charges for the relocation of certain current Company employees, lease termination costs, and accelerated depreciation of fixed assets. The Company expects to recognize pre-tax restructuring charges of about $10 million in fiscal 2019, consisting primarily of cash expenditures for employee separation benefits. The table below summarizes the composition of the Company's Service Alignment Initiative charges for fiscal year 2018 and 2017, respectively:
(a) Charges are recorded in selling, general and administrative expenses on the Statements of Consolidated Earnings. (b) Other initiative costs include costs to relocate certain current Company employees to new locations, lease termination charges (both included within selling, general and administrative expenses on the Statements of Consolidated Earnings), and accelerated depreciation on fixed assets (included within depreciation and amortization on the Statements of Consolidated Earnings). (c) All charges are included within the Other segment. Activity for the Service Alignment Initiative liability for fiscal 2018 and fiscal 2017 was as follows:
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Other Expense/(Income), Net | NOTE 5. OTHER EXPENSE/(INCOME), NET Other expense/(income), net consists of the following:
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Corporate Investments And Funds Held For Clients |
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Corporate Investments And Funds Held For Clients [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments And Funds Held For Clients | NOTE 6. CORPORATE INVESTMENTS AND FUNDS HELD FOR CLIENTS Corporate investments and funds held for clients at June 30, 2018 and 2017 were as follows:
(A) Included within available-for-sale securities are corporate investments with fair values of $10.5 million and funds held for clients with fair values of $22,765.7 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy.
(B) Included within available-for-sale securities are corporate investments with fair values of $10.8 million and funds held for clients with fair values of $21,890.3 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 2018 or 2017. 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, 2018. 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, 2018, are as follows:
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, 2017 are as follows:
At June 30, 2018, 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 2018 through May 2026. At June 30, 2018, asset-backed securities include AAA rated senior tranches of securities with predominately prime collateral of fixed-rate credit card, auto loan, equipment lease and rate reduction receivables with fair values of $2,033.6 million, $1,784.4 million, $472.0 million, and $201.7 million, respectively. These securities are collateralized by the cash flows of the underlying pools of receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through June 30, 2018. At June 30, 2018, U.S. government agency securities primarily include debt directly issued by Federal Home Loan Banks and Federal Farm Credit Banks with fair values of $1,889.5 million and $628.0 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 from September 2018 through March 2026. At June 30, 2018, other securities and their fair value primarily represent: U.S. government agency commercial mortgage-backed securities of $298.2 million issued by Federal National Mortgage Association ("Fannie Mae") and Federal Home Loan Mortgage Corporation ("Freddie Mac"), Aa2 rated United Kingdom Gilt securities of $198.8 million, AAA and AA rated supranational bonds of $141.3 million, and AAA and AA rated sovereign bonds of $110.3 million. Classification of corporate investments on the Consolidated Balance Sheets is as follows:
(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets. (b) - 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:
Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax and other payee payment obligations 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 $27,493.5 million and $27,189.4 million as of June 30, 2018 and 2017, 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, 2018, $24,242.9 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. Beginning September 30, 2017, as a result of the adoption of ASU 2016-18 (see Note 1), 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. Refer to Note 1 for a summary of the change in presentation as a result of the adoption of ASU 2016-18. 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 80% of the available-for-sale securities held a AAA or AA rating at June 30, 2018, as rated by Moody's, Standard & Poor's, DBRS for Canadian 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, 2018. Expected maturities of available-for-sale securities at June 30, 2018 are as follows:
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Property, Plant, and Equipment Property, Plant, and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | NOTE 7. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at cost and accumulated depreciation at June 30, 2018 and 2017 are as follows:
Depreciation of property, plant and equipment was $173.1 million, $147.3 million, and $135.6 million for fiscal 2018, 2017 and 2016, respectively. |
Goodwill And Intangible Assets, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets, Net | NOTE 8. GOODWILL AND INTANGIBLE ASSETS, NET Changes in goodwill for the fiscal years ended June 30, 2018 and 2017 are as follows:
Components of intangible assets, net, are as follows:
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 5 years (4 years for software and software licenses, 8 years for customer contracts and lists, and 5 years for other intangibles). Amortization of intangible assets was $204.5 million, $168.8 million, and $153.0 million for fiscal 2018, 2017, and 2016, respectively. Estimated future amortization expenses of the Company's existing intangible assets are as follows:
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Short-Term Financing |
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Jun. 30, 2018 | |
Short-Term Financing [Abstract] | |
Short-Term Financing | NOTE 9. SHORT TERM FINANCING The Company has a $3.8 billion, 364-day credit agreement that matures in June 2019 with a one year term-out option. The Company also has a $2.25 billion five-year credit facility that matures in June 2022 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, 2018 and 2017 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. The company increased its U.S. short-term commercial paper program to provide for the issuance of up to $9.8 billion from $9.5 billion in aggregate maturity value in June 2018. The Company’s commercial paper program is rated A-1+ by Standard & Poor’s and Prime-1 by Moody’s. These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from overnight to up to 364 days. At June 30, 2018 and 2017, the Company had no commercial paper outstanding. In fiscal 2018 and 2017, the Company's average daily borrowings were $2.8 billion and $3.1 billion, respectively, at a weighted average interest rate of 1.4% and 0.6%, respectively. The weighted average maturity of the Company’s commercial paper in fiscal 2018 and 2017 was approximately two 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, 2018 and 2017, there were no outstanding obligations related to the reverse repurchase agreements. In fiscal 2018 and 2017, the Company had average outstanding balances under reverse repurchase agreements of $374.4 million and $274.8 million, respectively, at weighted average interest rates of 1.3% and 0.6%, respectively. |
Long Term Debt Long Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] | NOTE 10. LONG TERM 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, 2018 and 2017 are as follows:
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, 2018, the fair value of the Notes, based on level 2 inputs, was $1,976.0 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." |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | NOTE 11. EMPLOYEE BENEFIT PLANS A. Stock-based Compensation Plans. Stock-based compensation consists of the following:
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 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.
The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase programs. The Company repurchased 8.5 million shares in fiscal 2018 as compared to 13.5 million shares repurchased in fiscal 2017. 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 $27.1 million, $24.5 million, and $25.2 million during fiscal years 2018, 2017, and 2016, respectively. The following table represents stock-based compensation expense and related income tax benefits in each of fiscal 2018, 2017, and 2016, respectively:
As of June 30, 2018, the total remaining unrecognized compensation cost related to non-vested stock options, restricted stock units, and restricted stock awards amounted to $13.3 million, $54.4 million, and $65.6 million, respectively, which will be amortized over the weighted-average remaining requisite service periods of 2.2 years, 1.5 years, and 1.1 years, respectively. In fiscal 2018, the following activity occurred under the Company’s existing plans. Stock Options:
Time-Based Restricted Stock and Time-Based Restricted Stock Units:
Performance-Based Restricted Stock and Performance-Based Restricted Stock Units:
The aggregate intrinsic value of outstanding stock options and exercisable stock options as of June 30, 2018 was $188.8 million and $83.8 million, respectively, which have a remaining life of 7 years and 6 years, respectively. The aggregate intrinsic value for stock options exercised in fiscal 2018, 2017, and 2016 was $60.0 million, $70.9 million, and $85.4 million, respectively. The fair value for stock options granted was estimated at the date of grant using the following assumptions:
The weighted average fair values of shares granted were as follows:
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. Effective January 1, 2015, associates hired on or after this date are not eligible to participate in this pension plan. In addition, associates rehired on or after January 1, 2015 will no longer be eligible to earn additional contributions but will continue to earn interest on any balance that remains in the pension plan. 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. On March 1, 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. The early retirement offer was extended to about 3,500 eligible associates, or approximately 6 percent of the Company’s workforce. The window for elections closed on May 1, 2018, with approximately 2,200 ADP associates opting to participate. ADP will fund a significant majority of the program costs from the existing surplus in ADP’s U.S. defined benefit plan, which resulted in a special termination charge from the U.S. pension plan of $319.6 million, which has been included within Other expense/(income), net, on the Statements of Consolidated Earnings in the fourth quarter of fiscal 2018. The Company also extended to all employees participating in the VERP the opportunity to continue health care coverage at active employee contribution rates for up to 24 months following retirement. The Company recorded $13.4 million of expenses within selling, general, and administrative expenses related to the continuing health coverage for VERP participants who have exited the Company as of June 30, 2018. The Company anticipates recording a charge in fiscal 2019 for the remaining participants who will exit and continue health coverage during fiscal 2019, which may total up to $35 million, but is based on the number of associates electing this benefit and the health care option selected by each associate. Additionally, as a result of the VERP in fiscal 2018, the Company recorded stock-based compensation expenses of $3.8 million related to the modification of awards previously granted to the VERP participants. The Company anticipates recording a non-cash settlement charge in fiscal 2019, within Other expense/(income), net, on the Statements of Consolidated Earnings, which is contingent on the number of participants electing the lump sum payment option and other actuarial assumptions, including the discount rate and long-term rate of return on assets. 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, will be frozen effective July 1, 2019. Benefits under the plan will continue to accrue through June 30, 2019, and as of July 1, 2019 and onward, participants will retain their accrued benefits 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 income (loss). The Company's pension plans' funded status as of June 30, 2018 and 2017 is as follows:
The amounts recognized on the Consolidated Balance Sheets as of June 30, 2018 and 2017 consisted of:
The accumulated benefit obligation for all defined benefit pension plans was $2,121.1 million and $1,852.5 million at June 30, 2018 and 2017, respectively. The Company's pension plans with accumulated benefit obligations in excess of plan assets as of June 30, 2018 and 2017 had the following projected benefit obligation, accumulated benefit obligation, and fair value of plan assets:
The components of net pension expense were as follows:
The net actuarial loss and prior service credit for the defined benefit pension plans that are included in accumulated other comprehensive (loss)/income that have not yet been recognized as components of net periodic benefit cost are $238.1 million and $19.0 million, respectively, at June 30, 2018. 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 credit for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic pension cost in fiscal 2019 are $1.8 million and $2.2 million, respectively. Assumptions used to determine the actuarial present value of benefit obligations were:
Assumptions used to determine the net pension expense generally were:
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, 2018 and 2017 by asset category were as follows:
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:
The U.S. pension plan's fixed income asset allocation for fiscal 2018 was outside of the target range due to the previously mentioned VERP in order to meet anticipated lump sum payments to participants. The Company expects the asset allocation will continue to be outside of the target range through fiscal 2019. 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, 2018. The following table presents the investments of the pension plans measured at fair value at June 30, 2018:
In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $13.2 million as of June 30, 2018, 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, 2017:
In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $15.2 million as of June 30, 2017, which have been classified as Level 1 in the fair value hierarchy. Contributions During fiscal 2018, the Company contributed $10.9 million to the pension plans. The Company expects to contribute $8.3 million to the pension plans during fiscal 2019. Estimated Future Benefit Payments The benefits expected to be paid in each year from fiscal 2019 to the year ended June 30, 2023 are $308.0 million, $148.8 million, $160.2 million, $100.3 million, and $107.7 million, respectively. The aggregate benefits expected to be paid in the five fiscal years from the year ended June 30, 2024 to the year ended June 30, 2028 are $669.4 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, 2018 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 $100.6 million, $87.9 million, and $81.9 million for the calendar years ended December 31, 2017, 2016, and 2015, respectively. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | NOTE 12. INCOME TAXES Earnings from continuing operations before income taxes shown below are based on the geographic location to which such earnings are attributable.
The provision (benefit) for income taxes consists of the following components:
A reconciliation between the Company's effective tax rate and the U.S. federal statutory rate is as follows:
The effective tax rate for fiscal 2018 and 2017 was 25.3% and 31.5%, respectively. The decrease in the effective tax rate is primarily due to the impacts of the Tax Cuts and Jobs Act ("the Act") and the release of reserves for uncertain tax positions in fiscal 2018, partially offset by prior period impacts of the sale of the CHSA and COBRA businesses and the impact of a benefit due to tax incentives associated with the domestic production activity deduction and research tax credit in fiscal 2017. The Act reduces the U.S. federal corporate income tax rate from 35% to 21%. In accordance with ASC 740 companies are required to re-measure deferred tax balances using the new enacted tax rates. The Act requires companies to pay a one-time transition tax on earnings of the Company's foreign subsidiaries that were previously tax deferred for U.S. income taxes and creates new taxes on the Company's foreign sourced earnings. The rate change is administratively effective at the beginning of the Company's fiscal year resulting in a blended corporate statutory tax rate for fiscal 2018 of 28.1%. Income tax expense reported for fiscal 2018 reflects the effects of the Act and includes a one-time net charge of $1.6 million. The $1.6 million is comprised of foreign withholding taxes on future distributions, the one-time transition tax and the recording of a valuation allowance against the Company's foreign tax credits which may not be realized, partially offset by the application of the newly enacted rates to the Company's U.S. deferred tax balances. The Act’s foreign tax credit provisions may limit the Company’s ability to utilize existing foreign tax credits in future periods, accordingly we have estimated that approximately $34.5 million could expire unutilized. The Company has also accrued $28.3 million related to foreign withholding taxes on future distributions of earnings and profits ("E&P") that may not be utilizable as foreign tax credits. In response to the Tax Act, the Securities and Exchange Commission (“SEC”) staff issued a Staff Accounting Bulletin No. 118 (“SAB 118”) that provides guidance on accounting for the impact of the Tax Act. SAB 118 allows companies to record provisional amounts while the accounting impact of the Tax Act is still under analysis, not to extend beyond the measurement period of one year from the enactment of the Tax Act. The accounting for the effects of the rate change on deferred tax balances is not complete and provisional amounts were recorded for these items. The Company re-measured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. The benefit recorded relating to the re-measurement of the Company's deferred tax balances was $68.0 million. The Company is still analyzing certain aspects of the Act and refining calculations, which could potentially affect the re-measurement of these balances or potentially give rise to new deferred tax amounts. The one-time transition tax is based on the total post-1986 E&P that was previously deferred from US income taxes. The Company recorded a provisional amount for the one-time transition tax liability of $22.9 million for the Company's foreign subsidiaries. The Company has not yet completed the calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when the Company finalizes the calculation of post-1986 foreign E&P previously deferred from US federal taxation and finalizes the amounts held in cash or other specified assets. The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:
There are $90.1 million and $93.4 million of long-term deferred tax assets included in other assets on the Consolidated Balance Sheets at June 30, 2018 and 2017, respectively. Income taxes have not been provided on undistributed earnings of certain foreign subsidiaries in an aggregate amount of approximately $300.9 million as of June 30, 2018, as the Company considers such earnings to be permanently reinvested outside of the United States. The additional U.S. income tax that would arise on repatriation of the remaining undistributed earnings could be offset, in part, by foreign tax credits on such repatriation. However, it is impracticable to estimate the amount of net income tax that might be payable. The Company has estimated foreign net operating loss carry-forwards of approximately $62.7 million as of June 30, 2018, of which $4.8 million expire through 2026 and $57.9 million have an indefinite utilization period. As of June 30, 2018, the Company has approximately $61.7 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 2037. The Company has state net operating loss carry-forwards of approximately $255.4 million as of June 30, 2018, which expire through 2037. The Company has recorded valuation allowances of $46.0 million and $9.4 million at June 30, 2018 and 2017, respectively, to reflect the estimated amount of domestic and foreign deferred tax assets that may not be realized. Income tax payments were approximately $529.7 million, $817.1 million, and $651.6 million for fiscal 2018, 2017, and 2016, respectively. As of June 30, 2018, 2017, and 2016 the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $45.2 million, $74.6 million, and $27.4 million respectively. The amount that, if recognized, would impact the effective tax rate is $36.1 million, $61.0 million, and $18.7 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:
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 2018, 2017, and 2016, the Company recorded interest expense (benefit) of $3.2 million, $3.0 million, and $1.1 million, respectively. Penalties incurred during fiscal years 2018, 2017, and 2016 were not significant. At June 30, 2018, the Company had accrued interest of $7.9 million recorded on the Consolidated Balance Sheets, of which $4.8 million was recorded within income taxes payable, and the remainder was recorded within other liabilities. At June 30, 2017, the Company had accrued interest of $6.9 million recorded on the Consolidated Balance Sheets, of which $0.1 million was recorded within income taxes payable, and the remainder was recorded within other liabilities. At June 30, 2018, the Company had accrued penalties of $0.3 million recorded on the Consolidated Balance Sheets within other liabilities. At June 30, 2017, the Company had accrued penalties of $0.2 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:
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. 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. Based on current estimates, settlements related to various jurisdictions and tax periods could increase earnings up to $2 million and expected cash payments could be up to $25 million in the next twelve months. The liability related to cash payments expected to be paid within the next 12 months has been reclassified from other liabilities to current liabilities on the Consolidated Balance Sheets. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a revision become known. In fiscal 2018, the IRS completed its review of the examination of the Company's tax return for the years ended June 30, 2017 and 2016, which did not have a material impact to the Consolidated Financial Statements of the Company. |
Commitments And Contingencies |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingencies | NOTE 13. COMMITMENTS AND CONTINGENCIES The Company has obligations under various facilities and equipment leases. Minimum commitments under these obligations with a future life of greater than one year at June 30, 2018 are as follows:
In addition to fixed rentals, certain leases require payment of maintenance and real estate taxes and contain escalation provisions based on future adjustments in price indices. As of June 30, 2018, the Company has purchase commitments of approximately $576.3 million, including a reinsurance premium with Chubb for the fiscal 2019 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 $363.0 million relates to fiscal 2019, $113.6 million relates to the fiscal year ending June 30, 2020, and the remaining relates to fiscal years ending June 30, 2021 through fiscal 2023. In June 2018, a potential class action complaint was filed against ADP in the Circuit Court of Cook County, Illinois. The complaint asserts that ADP violated the Illinois Biometric Privacy Act, was negligent and unjustly enriched itself in connection with its collection, use and storage of biometric data of employees of its clients who are residents of Illinois in connection with certain services provided by ADP to clients in Illinois. The complaint seeks statutory and other unspecified monetary damages, injunctive relief and attorney’s fees. In addition, similar potential class action complaints have been filed in Illinois state courts against ADP and certain of its clients with respect to the collection, use and storage of biometric data of the employees of these clients. All of these claims are still in their earliest stages and the Company is unable to estimate any reasonably possible loss, or range of loss, with respect to these matters. The Company intends to vigorously defend against these lawsuits. In July 2016, Uniloc USA, Inc. and Uniloc Luxembourg, S.A. (“Uniloc”) filed a lawsuit against the Company in the United States District Court for the Eastern District of Texas (the "Court") alleging that Company products and services infringe four patents. Uniloc alleged infringement of its patents concerning centralized management of application programs on a network, distribution of application programs to a target station on a network, management of configurable application programs on a network, and license use management on a network. The complaint sought unspecified monetary damages, costs, and injunctive relief. On September 28, 2017, the Court granted ADP’s motion to dismiss the complaint on the grounds that all asserted claims of the four patents are invalid and dismissed the case with prejudice. The Company has acquired a license to the four patents and a release for any potential past infringement liability. Despite the Company being licensed and released, Uniloc appealed the Court's invalidity determination to the U.S. Court of Appeals for the Federal Circuit (the “Appeals Court”). The Company moved to dismiss Uniloc's appeal; on August 2, 2018, the Appeals Court granted ADP’s motion, ending the lawsuit against ADP. 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 Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income |
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Reclassification out of Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | NOTE 14. 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 (loss)/income results from items deferred on the Consolidated Balance Sheets in stockholders' equity. Other comprehensive (loss)/income was $(259.3) million, $(164.1) million, and $45.5 million in fiscal 2018, 2017, and 2016, respectively. Changes in Accumulated Other Comprehensive (Loss)/Income ("AOCI") by component are as follows:
(A) Reclassification adjustments out of AOCI are included within Other expense/(income), net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension expense (see Note 11). (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 (see Note 1). |
Financial Data By Segment |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Data By Segment | NOTE 15. 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 “Other” are non-recurring gains and losses, miscellaneous processing services, the elimination of intercompany transactions, interest expense, 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), certain charges and expenses that have not been allocated to the reportable segments, and the historical results of the AMD business. 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. The Company also adjusted the segment results to reflect the historical results of AMD in Other, which also did not materially affect reportable segment results. Beginning in the first quarter of fiscal 2019, the Company's chief operating decision maker ("CODM") will begin reviewing segment results reported at actual interest rates and the results of the PEO segment inclusive of the results of ADP Indemnity. Additionally, the CODM will begin reviewing results with changes to certain corporate allocations. These changes represent a change in the measure of segment performance. The Company will reflect these new segment measures beginning in the first quarter of fiscal 2019 and prior period segment results will be restated for comparability. 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.
The Company has reclassified $223.0 million and $240.9 million of revenues previously reported within Other for fiscal years 2017 and 2016, respectively, to United States to properly reflect revenues by geography. This revision did not impact segment profit or consolidated revenue results. Management has concluded that the impact was not material to any period presented. |
Quarterly Financial Results (Unaudited) Quarterly Financial Results (Unaudited) |
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Quarterly Financial Results (Unaudited) | NOTE 16. QUARTERLY FINANCIAL RESULTS (UNAUDITED) Summarized quarterly results of our operations for the fiscal years ended June 30, 2018 and June 30, 2017 are as follows:
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Subsequent Events Subsequent Events |
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Subsequent Events [Abstract] | |
Subsequent Events | NOTE 17. SUBSEQUENT EVENTS In July 2018, the Company acquired 100% of outstanding shares of Celergo Holdings, Inc. ("Celergo"), a leading provider of international payroll management services. The results of Celergo will be reported within the Company's Employer Services segment. The acquisition will be accounted for using the acquisition method of business combination under ASC 805, Business Combinations. With the exception of the change in segment measures discussed in Note 15, resolution of the Uniloc matter discussed in Note 13 and the item listed above, there are no other subsequent events for disclosure. |
Valuation and Qualiying Accounts Valuation and Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (In thousands)
(A) Includes amounts related to foreign exchange fluctuation. (B) Doubtful accounts written off, less recoveries on accounts previously written off. |
Summary of Significant Accounting Policies (Policies) |
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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. In fiscal 2018, the Company created a grantor trust, which now holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees. The Company is the sole beneficial owner of the trust. The trust meets the criteria in Accounting Standards Codification ("ASC") 810 “Consolidation” to be characterized as a variable interest entity (“VIE”). The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and therefore, consolidates the trust. Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 6, “Corporate Investments and Funds Held for Clients.” The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenues, expenses, and accumulated other comprehensive (loss)/income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. The Consolidated Financial Statements and all relevant footnotes have been adjusted for the Procure-to-Pay business that qualified as a discontinued operation. Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's presentation. |
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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 non-recurring gains and losses, miscellaneous processing services, the elimination of intercompany transactions, interest expense, 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), and certain charges and expenses that have not been allocated to the reportable segments. Changes to the allocation methodology for certain allocations have been adjusted in both the current period and the prior period and did not materially affect reportable segment results. |
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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). Fees associated with services are recognized in the period services are rendered and earned under service arrangements with clients where service fees are fixed or determinable and collectability is reasonably assured. PEO 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 is not the primary obligor with respect to this aspect of the PEO arrangement. With respect to the payroll and payroll taxes, the worksite employer is the primary obligor, has latitude in establishing price, selects suppliers, and determines the service specifications. The fees collected from the worksite employers for benefits, workers’ compensation and state unemployment taxes are presented in revenues and the associated costs of benefits, workers’ compensation and state unemployment taxes are included in operating expenses, as the Company acts as a principal with respect to this aspect of the arrangement. With respect to the fees for benefits, workers’ compensation and state unemployment taxes, the Company is the primary obligor, has latitude in establishing price, selects suppliers, determines the service specifications and is liable for credit risk. Interest income on collected but not yet remitted funds held for clients is recognized in revenues as earned, as the collection, holding and remittance of these funds are critical components of providing these services. Client implementation fees are charged to set clients up on the Company's platform and are deferred until the client has gone live on the Company's solutions and services have begun. These fees are amortized to revenue over the longer of the contractual term or the expected client life, including estimated renewals of client contracts. Additionally, certain implementation costs are deferred until the client has gone live on the Company's solution and services have begun and are then amortized over the longer of the contractual term or the expected client life, including estimated renewals of client contracts. The Company assesses 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. |
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Cash and Cash Equivalents, Policy | D. 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. |
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Corporate Investments and Funds held for Clients | E. 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 a specific-identification basis and are included in other expense/(income), 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. |
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Fair Value of Financial Instruments, Policy | F. 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 6) and its long term debt 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 various 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, as well as the mortgage-backed securities that are included within Other securities in Note 6, 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 Notes are valued 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. 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. |
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Property, Plant and Equipment | G. 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:
The Company has obligations under various facilities and equipment leases. The Company assesses whether these arrangements meet the criteria for capital leases by determining whether the agreement transfers ownership of the asset, whether the lease includes a bargain purchase option, whether the lease term is for greater than 75% of the asset's useful life, or whether the minimum lease payments exceed 90% of the leased equipment's fair market value. All of the Company's leases are classified as operating leases. Total expense under these operating lease agreements was approximately $234.9 million, $234.5 million, and $201.7 million in fiscal 2018, 2017, and 2016, respectively. |
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Goodwill and Other Intangible Assets | H. 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, 2018 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. |
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Impairment of Long-Lived Assets | I. 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. |
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Foreign Currency Translations | J. 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. |
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Derivative Financial Instruments | K. 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. |
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Earnings Per Share (EPS) | L. Earnings per Share (“EPS”). The Company computes EPS in accordance with ASC 260. The calculations of basic and diluted EPS are as follows:
Options to purchase 0.9 million, 1.0 million, and 1.8 million shares of common stock for fiscal 2018, 2017, and 2016, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
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Stock-Based Compensation | M. 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 period. 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 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. See Note 11 for additional information on the Company's stock-based compensation programs. |
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Internal Use Software | N. Internal Use Software. Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized over a three to five-year period on a straight-line basis. 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. |
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Acquisition | O. 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. |
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Income Taxes | P. 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. The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service (“IRS”) and other tax authorities. 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, 2018 and 2017, the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $45.2 million and $74.6 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. Based on current estimates, favorable settlements related to various jurisdictions and tax periods could increase earnings by up to $2 million and expected cash payments could be up to $25 million in the next twelve months. The liability related to cash payments expected to be paid within the next 12 months has been reclassified from other liabilities to current liabilities on the Consolidated Balance Sheets. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability, and deferred taxes in the period in which the facts that give rise to a revision become known. |
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Workers' Compensation Costs | Q. 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. For the fiscal years 2013 to 2017, as well as in July 2017 for the year ended June 30, 2018 ("fiscal 2018") policy year, 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 $218.0 million in July 2018 to enter into a reinsurance arrangement to cover substantially all losses for the fiscal 2019 policy year on terms substantially similar to the fiscal 2018 policy. |
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Recently Issued Accounting Pronouncements | R. Recently Issued Accounting Pronouncements. Recently Adopted Accounting Pronouncements In March 2018, the Company adopted ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Act”) from accumulated other comprehensive (loss)/income to retained earnings. The June 30, 2018 Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive income and into retained earnings of $42.3 million. The Company's policy for releasing disproportionate income tax effects from AOCI utilizes the aggregate approach. Refer to Note 14 for additional detail regarding the components of the reclassification. The adoption of ASU 2018-02 did not have an impact on the Company's consolidated results of operations or cash flows. Effective July 1, 2017, the Company adopted Accounting Standards Update ("ASU") 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash. The Company retrospectively adopted the new standard, and as a result included restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the Statements of Consolidated Cash Flows. Accordingly, the statement of cash flows has been revised to include restricted cash and restricted cash equivalents associated with funds held to satisfy client obligations, as a component of cash, cash equivalents, restricted cash and restricted cash equivalents. As a result of this adoption, the Company adjusted the Statements of Consolidated Cash Flows from previously reported amounts as follows:
Effective July 1, 2017, the Company adopted ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairments.” ASU 2017-04 establishes a one-step process for testing goodwill for a decrease in value, requiring a goodwill impairment loss to be measured as the excess of the reporting unit’s carrying amount over its fair value. The guidance eliminates the second step of the current two-step process that requires the impairment to be measured as the difference between the implied value of a reporting unit’s goodwill with the goodwill’s carrying amount. The adoption of ASU 2017-04 did not have an impact on the Company’s consolidated results of operations, financial condition, or cash flows. In July 2017, the Company adopted ASU 2017-01, "Business Combinations (Topic 805) - Clarifying the Definition of a Business." ASU 2017-01 clarifies the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The adoption of ASU 2017-01 did not have a material impact on the Company's consolidated results of operations, financial condition, or cash flows. Recently Issued Accounting Pronouncements The following table summarizes recent ASU's issued by the Financial Accounting Standards Board ("FASB") that could have a material impact on the Company's consolidated results of operations, financial condition, or cash flows.
Estimated impact of adoption of ASU 2014-09 and ASU 2017-07 on the Statements of Consolidated Earnings:
*Includes the impact of the remeasurement, as required by the Act, of deferred tax liabilities associated with the capitalized selling and implementation expenses created as a result of the adoption of ASC 606.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] |
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Estimated Useful Lives |
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Schedule of Earnings Per Share, Basic and Diluted |
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | R. Recently Issued Accounting Pronouncements. Recently Adopted Accounting Pronouncements In March 2018, the Company adopted ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Act”) from accumulated other comprehensive (loss)/income to retained earnings. The June 30, 2018 Consolidated Balance Sheets reflect the reclassification out of accumulated other comprehensive income and into retained earnings of $42.3 million. The Company's policy for releasing disproportionate income tax effects from AOCI utilizes the aggregate approach. Refer to Note 14 for additional detail regarding the components of the reclassification. The adoption of ASU 2018-02 did not have an impact on the Company's consolidated results of operations or cash flows. Effective July 1, 2017, the Company adopted Accounting Standards Update ("ASU") 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash. The Company retrospectively adopted the new standard, and as a result included restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the Statements of Consolidated Cash Flows. Accordingly, the statement of cash flows has been revised to include restricted cash and restricted cash equivalents associated with funds held to satisfy client obligations, as a component of cash, cash equivalents, restricted cash and restricted cash equivalents. As a result of this adoption, the Company adjusted the Statements of Consolidated Cash Flows from previously reported amounts as follows:
Effective July 1, 2017, the Company adopted ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairments.” ASU 2017-04 establishes a one-step process for testing goodwill for a decrease in value, requiring a goodwill impairment loss to be measured as the excess of the reporting unit’s carrying amount over its fair value. The guidance eliminates the second step of the current two-step process that requires the impairment to be measured as the difference between the implied value of a reporting unit’s goodwill with the goodwill’s carrying amount. The adoption of ASU 2017-04 did not have an impact on the Company’s consolidated results of operations, financial condition, or cash flows. In July 2017, the Company adopted ASU 2017-01, "Business Combinations (Topic 805) - Clarifying the Definition of a Business." ASU 2017-01 clarifies the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The adoption of ASU 2017-01 did not have a material impact on the Company's consolidated results of operations, financial condition, or cash flows. Recently Issued Accounting Pronouncements The following table summarizes recent ASU's issued by the Financial Accounting Standards Board ("FASB") that could have a material impact on the Company's consolidated results of operations, financial condition, or cash flows.
Estimated impact of adoption of ASU 2014-09 and ASU 2017-07 on the Statements of Consolidated Earnings:
*Includes the impact of the remeasurement, as required by the Act, of deferred tax liabilities associated with the capitalized selling and implementation expenses created as a result of the adoption of ASC 606.
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Acquisitions Acquisition(Tables) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Business Combination | The preliminary purchase price allocation for GCC is as follows:
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Service Alignment Initiative (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The table below summarizes the composition of the Company's Service Alignment Initiative charges for fiscal year 2018 and 2017, respectively:
(a) Charges are recorded in selling, general and administrative expenses on the Statements of Consolidated Earnings. (b) Other initiative costs include costs to relocate certain current Company employees to new locations, lease termination charges (both included within selling, general and administrative expenses on the Statements of Consolidated Earnings), and accelerated depreciation on fixed assets (included within depreciation and amortization on the Statements of Consolidated Earnings). (c) All charges are included within the Other segment. Activity for the Service Alignment Initiative liability for fiscal 2018 and fiscal 2017 was as follows:
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Other Expense/(Income), Net (Tables) |
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Other expense/(income), net | Other expense/(income), net consists of the following:
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Corporate Investments And Funds Held For Clients (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments And Funds Held For Clients [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | Corporate investments and funds held for clients at June 30, 2018 and 2017 were as follows:
(A) Included within available-for-sale securities are corporate investments with fair values of $10.5 million and funds held for clients with fair values of $22,765.7 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy.
(B) Included within available-for-sale securities are corporate investments with fair values of $10.8 million and funds held for clients with fair values of $21,890.3 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
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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, 2018, are as follows:
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, 2017 are as follows:
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Classification Of Corporate Investments On The Consolidated Balance Sheets | Classification of corporate investments on the Consolidated Balance Sheets is as follows:
(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets. (b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. |
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Schedule Of Investment Of Funds Held For Clients | Funds held for clients have been invested in the following categories:
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Expected Maturities Of Available-For-Sale Securities | Expected maturities of available-for-sale securities at June 30, 2018 are as follows:
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Property, Plant, and Equipment Property, Plant, and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment at cost and accumulated depreciation at June 30, 2018 and 2017 are as follows:
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Goodwill And Intangible Assets, Net (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes In Goodwill | Changes in goodwill for the fiscal years ended June 30, 2018 and 2017 are as follows:
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Components Of Finite-Lived Intangible Assets | Components of intangible assets, net, are as follows:
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Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expenses of the Company's existing intangible assets are as follows:
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Long Term Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2018 and 2017 are as follows:
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Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2018, 2017, and 2016, respectively:
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Changes In Stock Options Outstanding | Stock Options:
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Time Based Restricted Shares and Units | Time-Based Restricted Stock and Time-Based Restricted Stock Units:
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Performance Based Restricted shares and units | Performance-Based Restricted Stock and Performance-Based Restricted Stock Units:
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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:
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Weighted average fair value of restricted stock granted | The weighted average fair values of shares granted were as follows:
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Schedule of Net Funded Status | The Company's pension plans' funded status as of June 30, 2018 and 2017 is as follows:
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Schedule of Amounts Recognized in Balance Sheet | The amounts recognized on the Consolidated Balance Sheets as of June 30, 2018 and 2017 consisted of:
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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, 2018 and 2017 had the following projected benefit obligation, accumulated benefit obligation, and fair value of plan assets:
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Components Of Net Pension Expense | The components of net pension expense were as follows:
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Schedule of Assumptions Used | Assumptions used to determine the actuarial present value of benefit obligations were:
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Defined Benefit Plan Assumptions Used Calculating Net Pension Expense | Assumptions used to determine the net pension expense generally were:
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Schedule of Allocation of Plan Assets | The Company's pension plans' asset allocations at June 30, 2018 and 2017 by asset category were as follows:
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Defined Benefit Plan Target Allocation Percentage | The target asset allocation ranges for the U.S. plan are generally as follows:
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Fair Value, Measurement Inputs, Disclosure | The following table presents the investments of the pension plans measured at fair value at June 30, 2018:
In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $13.2 million as of June 30, 2018, 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, 2017:
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Income Taxes Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax From Continuing Operations Provision For Income Tax Components Disclosure | Earnings from continuing operations before income taxes shown below are based on the geographic location to which such earnings are attributable.
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Schedule Of Components Of Provision (Benefit) For Income Taxes | The provision (benefit) for income taxes consists of the following components:
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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:
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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:
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Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
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Summary of Income Tax Examinations | Examinations in progress in which the Company has significant business operations are as follows:
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Contractual Commitments Contingencies and Off-Balance Sheet Arrangements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Operating Leases Future Minimum Payments Due | The Company has obligations under various facilities and equipment leases. Minimum commitments under these obligations with a future life of greater than one year at June 30, 2018 are as follows:
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Reclassification out of Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(A) Reclassification adjustments out of AOCI are included within Other expense/(income), net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension expense (see Note 11). (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 (see Note 1). |
Financial Data By Segment (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] |
The Company has reclassified $223.0 million and $240.9 million of revenues previously reported within Other for fiscal years 2017 and 2016, respectively, to United States to properly reflect revenues by geography. This revision did not impact segment profit or consolidated revenue results. Management has concluded that the impact was not material to any period presented. |
Quarterly Financial Results (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Quarterly Results of Continuing Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
|
Summary of Significant Accounting Policies (Details) $ / shares in Units, shares in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
$ / shares
|
Mar. 31, 2018
$ / shares
|
Dec. 31, 2017
$ / shares
|
Sep. 30, 2017
$ / shares
|
Jun. 30, 2017
USD ($)
$ / shares
|
Mar. 31, 2017
$ / shares
|
Dec. 31, 2016
$ / shares
|
Sep. 30, 2016
$ / shares
|
Jun. 30, 2018
USD ($)
$ / shares
shares
|
Jun. 30, 2017
USD ($)
$ / shares
shares
|
Jun. 30, 2016
USD ($)
$ / shares
shares
|
Jul. 01, 2018
USD ($)
|
Jun. 30, 2015
USD ($)
|
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Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Provision for income taxes | $ 550,300,000 | $ 797,700,000 | $ 741,300,000 | ||||||||||||||||
Operating Leases, Rent Expense | $ 234,900,000 | $ 234,500,000 | 201,700,000 | ||||||||||||||||
Number of Businesses Acquired | 2 | ||||||||||||||||||
Percent of Level Two Investment Pricing Inputs Provided by Independent Pricing Service | 99.00% | 99.00% | |||||||||||||||||
Goodwill | $ 2,243,500,000 | $ 1,741,000,000 | $ 2,243,500,000 | $ 1,741,000,000 | 1,682,000,000 | ||||||||||||||
Net earnings from continuing operations | $ 1,620,800,000 | $ 1,733,400,000 | $ 1,493,400,000 | ||||||||||||||||
Basic weighted average shares outstanding (in shares) | shares | 440.6 | 447.8 | 457.0 | ||||||||||||||||
Effect of Employee Stock Option Shares | shares | 1.1 | 0.9 | 0.8 | ||||||||||||||||
Effect of Employee Restricted Stock Shares | shares | 1.6 | 1.6 | 1.3 | ||||||||||||||||
Diluted weighted average shares outstanding (in shares) | shares | 443.3 | 450.3 | 459.1 | ||||||||||||||||
EPS from continuing operations, Basic (in dollars per share) | $ / shares | $ 0.25 | $ 1.46 | $ 1.06 | $ 0.91 | $ 0.60 | $ 1.32 | $ 1.14 | $ 0.82 | $ 3.68 | $ 3.87 | $ 3.27 | ||||||||
EPS from continuing operations, Diluted (in dollars per share) | $ / shares | $ 0.25 | $ 1.45 | $ 1.05 | $ 0.90 | $ 0.59 | $ 1.31 | $ 1.13 | $ 0.81 | $ 3.66 | $ 3.85 | $ 3.25 | ||||||||
Options excluded from the calculation of diluted earnings per share because their exercise prices exceeded the average market price (in shares) | shares | 0.9 | 1.0 | 1.8 | ||||||||||||||||
Unrecognized Tax Benefits | $ 45,200,000 | $ 74,600,000 | $ 45,200,000 | $ 74,600,000 | $ 27,400,000 | $ 27,100,000 | |||||||||||||
Threshold of coverage for all losses per occurrence covered by reinsurance arrangement, next fiscal year | 1,000,000 | ||||||||||||||||||
Payments for Reinsurance | 218,000,000 | ||||||||||||||||||
Tax Cuts and Jobs Act of 2017, Reclassfication from AOCI to Retained Earnings, Tax Effect | [1] | 42,300,000 | |||||||||||||||||
Tax Settlements Future Impact Potential On Earnings Maximum | 2,000,000 | ||||||||||||||||||
Debt Instrument, Face Amount | 2,000,000,000 | 2,000,000,000 | |||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | 2,515,200,000 | 2,125,900,000 | [2] | $ 1,897,300,000 | [2] | ||||||||||||||
Max Expected Cash Payment On Tax Settlements | 25,000,000 | ||||||||||||||||||
Impact of Adoption of ASC606 | $ 37,088,700,000 | $ 37,180,000,000 | $ 37,088,700,000 | 37,180,000,000 | |||||||||||||||
Minimum [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Internal Use Software Life of Asset | 3 years | ||||||||||||||||||
Minimum [Member] | Data Processing Equipment [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Property, Plant, and Equipment Useful Life | 2 years | ||||||||||||||||||
Minimum [Member] | Building [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Property, Plant, and Equipment Useful Life | 20 years | ||||||||||||||||||
Minimum [Member] | Furniture and Fixtures [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Property, Plant, and Equipment Useful Life | 4 years | ||||||||||||||||||
Maximum [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Internal Use Software Life of Asset | 5 years | ||||||||||||||||||
Maximum [Member] | Data Processing Equipment [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Property, Plant, and Equipment Useful Life | 5 years | ||||||||||||||||||
Maximum [Member] | Building [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Property, Plant, and Equipment Useful Life | 40 years | ||||||||||||||||||
Maximum [Member] | Furniture and Fixtures [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Property, Plant, and Equipment Useful Life | 7 years | ||||||||||||||||||
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 | ||||||||||||||||||
Restatement Adjustment [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Provision for income taxes | $ 384,700,000 | 829,100,000 | |||||||||||||||||
Net earnings from continuing operations | $ 1,897,900,000 | $ 1,787,800,000 | |||||||||||||||||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Impact of Adoption of ASC606 | $ 1,700,000,000 | ||||||||||||||||||
|
Summary of Significant Accounting Policies Restricted Cash Restatement (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||
Restricted Cash Restatement | |||||||
Net decrease/(increase) in restricted cash and cash equivalents held to satisfy client funds obligations | $ 0.0 | $ 0.0 | |||||
Net Cash Provided by (Used in) Investing Activities | $ (2,504.6) | (1,113.2) | [1] | (869.0) | [1] | ||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 5.8 | (8.0) | [1] | (8.7) | [1] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (1,639.5) | (7,277.0) | [1] | 9,772.3 | [1] | ||
Cash and Cash Equivalents, Period Increase (Decrease) | 9,772.3 | ||||||
Cash Equivalents, at Carrying Value | $ 6,542.1 | 8,181.6 | 15,458.6 | ||||
Scenario, Previously Reported [Member] | |||||||
Restricted Cash Restatement | |||||||
Net decrease/(increase) in restricted cash and cash equivalents held to satisfy client funds obligations | 6,843.6 | (8,218.2) | |||||
Net Cash Provided by (Used in) Investing Activities | 5,730.4 | (9,087.2) | |||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 14.7 | (11.0) | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (410.7) | ||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 1,551.8 | ||||||
Cash Equivalents, at Carrying Value | 2,780.4 | 3,191.1 | |||||
Restatement Adjustment [Member] | |||||||
Restricted Cash Restatement | |||||||
Net decrease/(increase) in restricted cash and cash equivalents held to satisfy client funds obligations | (6,843.6) | 8,218.2 | |||||
Net Cash Provided by (Used in) Investing Activities | (6,843.6) | 8,218.2 | |||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (22.7) | 2.3 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (6,866.3) | ||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 8,220.5 | ||||||
Cash Equivalents, at Carrying Value | $ 5,401.2 | $ 12,267.5 | |||||
|
Summary of Significant Accounting Policies Revenue Recognition Restatement (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||
Revenue Recognition Restatement | |||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ 8,985.2 | $ 8,518.1 | $ 8,234.0 | ||||||||||
Interest on funds held for clients | 466.5 | 397.4 | 377.3 | ||||||||||
PEO revenues | [1] | 3,874.1 | 3,464.3 | 3,056.5 | |||||||||
TOTAL REVENUES | $ 3,318.6 | $ 3,693.0 | $ 3,235.4 | $ 3,078.8 | $ 3,064.8 | $ 3,410.8 | $ 2,987.3 | $ 2,916.9 | 13,325.8 | 12,379.8 | 11,667.8 | ||
Operating expenses | 6,937.9 | 6,416.1 | 6,025.0 | ||||||||||
Systems development and programming costs | 630.2 | 627.5 | 603.7 | ||||||||||
Selling, general, and administrative expenses | 2,971.5 | 2,783.2 | 2,637.0 | ||||||||||
Total Expenses | 10,916.8 | 10,133.0 | 9,533.5 | ||||||||||
Other expense/(income), net | 237.9 | (284.3) | (100.4) | ||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ 204.5 | $ 852.6 | $ 565.7 | $ 548.2 | $ 388.4 | $ 827.9 | $ 786.2 | $ 528.7 | 2,171.1 | 2,531.1 | 2,234.7 | ||
Provision for income taxes | 550.3 | 797.7 | 741.3 | ||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 1,620.8 | 1,733.4 | $ 1,493.4 | ||||||||||
Restatement Adjustment [Member] | |||||||||||||
Revenue Recognition Restatement | |||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | 8,983.4 | 8,510.1 | |||||||||||
Interest on funds held for clients | 466.5 | 397.4 | |||||||||||
PEO revenues | 3,877.6 | 3,464.6 | |||||||||||
TOTAL REVENUES | 13,327.5 | 12,372.1 | |||||||||||
Operating expenses | 6,901.1 | 6,386.4 | |||||||||||
Systems development and programming costs | 637.8 | 634.1 | |||||||||||
Selling, general, and administrative expenses | 2,956.9 | 2,771.9 | |||||||||||
Total Expenses | 10,873.0 | 10,098.6 | |||||||||||
Other expense/(income), net | 171.9 | (343.4) | |||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 2,282.6 | 2,616.9 | |||||||||||
Provision for income taxes | 384.7 | 829.1 | |||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 1,897.9 | 1,787.8 | |||||||||||
ASU 2017-07 [Member] | |||||||||||||
Revenue Recognition Restatement | |||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | 0.0 | 0.0 | |||||||||||
PEO revenues | 0.0 | 0.0 | |||||||||||
TOTAL REVENUES | 0.0 | 0.0 | |||||||||||
Operating expenses | 37.2 | 33.8 | |||||||||||
Systems development and programming costs | 7.6 | 6.6 | |||||||||||
Selling, general, and administrative expenses | 21.2 | 18.7 | |||||||||||
Total Expenses | 66.0 | 59.1 | |||||||||||
Other expense/(income), net | (66.0) | (59.1) | |||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 0.0 | 0.0 | |||||||||||
Provision for income taxes | 0.0 | 0.0 | |||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 0.0 | 0.0 | |||||||||||
ASC 606 Adjustments [Member] | |||||||||||||
Revenue Recognition Restatement | |||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | (1.8) | (8.0) | |||||||||||
PEO revenues | 3.5 | 0.3 | |||||||||||
TOTAL REVENUES | 1.7 | (7.7) | |||||||||||
Operating expenses | (74.0) | (63.5) | |||||||||||
Systems development and programming costs | 0.0 | 0.0 | |||||||||||
Selling, general, and administrative expenses | (35.8) | (30.0) | |||||||||||
Total Expenses | (109.8) | (93.5) | |||||||||||
Other expense/(income), net | 0.0 | ||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 111.5 | 85.8 | |||||||||||
Provision for income taxes | (165.6) | 31.4 | |||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | $ 277.1 | $ 54.4 | |||||||||||
|
Acquisitions (Details) $ in Millions |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 31, 2018
USD ($)
|
Oct. 31, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2016
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Acquisition Price | $ 90.0 | ||||
Number of Businesses Acquired | 2 | ||||
Contingent Consideration, Liability | $ 12.0 | ||||
Contingent Consideration, Term of Payments | 2 years | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Goodwill | $ 1,741.0 | $ 2,243.5 | $ 1,682.0 | ||
Global Cash Card, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Date of Acquisition Agreement | Oct. 05, 2017 | ||||
Percentage of shares acquired | 100.00% | ||||
Acquisition Price | $ 490.0 | ||||
Weighted Average Useful Life | 8 years | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Goodwill | $ 406.1 | ||||
Identifiable intangible assets | 132.5 | ||||
Other assets | 0.8 | ||||
Total assets acquired | 539.4 | ||||
Total liabilities assumed | $ 48.4 | ||||
Word Market, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Date of Acquisition Agreement | Jan. 19, 2018 | ||||
Percentage of shares acquired | 100.00% | ||||
Acquisition Price | $ 125.0 |
Divestitures (Details) - USD ($) $ in Millions |
Nov. 28, 2016 |
Sep. 01, 2015 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 29.1 | |
AdvancedMD [Domain] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Date | Sep. 01, 2015 | |
CHSA and COBRA [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 205.4 | |
Disposal Date | Nov. 28, 2016 |
Service Alignment Initiative (Details) - USD ($) $ in Millions |
12 Months Ended | 23 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2019 |
||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges, Net of Reversals | [1] | $ 20.5 | $ 90.0 | ||||||||
Cumulative amount from inception | [1] | $ 110.5 | |||||||||
Beginning balance | 74.4 | 0.0 | |||||||||
Charged to expense | 43.9 | 91.5 | |||||||||
Reversals | (23.4) | (1.5) | |||||||||
Cash payments | (39.7) | (13.6) | |||||||||
Non-cash utilization | (0.7) | (2.0) | |||||||||
Ending balance | 54.5 | 74.4 | 54.5 | ||||||||
Employee separation benefits [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges, Net of Reversals | [2] | 15.4 | 84.1 | ||||||||
Cumulative amount from inception | [2] | 99.5 | |||||||||
Beginning balance | 73.9 | 0.0 | |||||||||
Charged to expense | 38.8 | 85.6 | |||||||||
Reversals | (23.4) | (1.5) | |||||||||
Cash payments | (35.3) | (10.2) | |||||||||
Non-cash utilization | 0.0 | 0.0 | |||||||||
Ending balance | 54.0 | 73.9 | 54.0 | ||||||||
Other initiative costs [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges, Net of Reversals | [3] | 5.1 | 5.9 | ||||||||
Cumulative amount from inception | [3] | 11.0 | |||||||||
Beginning balance | 0.5 | 0.0 | |||||||||
Charged to expense | 5.1 | 5.9 | |||||||||
Reversals | 0.0 | 0.0 | |||||||||
Cash payments | (4.4) | (3.4) | |||||||||
Non-cash utilization | (0.7) | (2.0) | |||||||||
Ending balance | $ 0.5 | $ 0.5 | $ 0.5 | ||||||||
Scenario, Forecast [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Expected restructuring costs | $ 10.0 | ||||||||||
|
Other Expense/(Income), Net (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Other Income, Net [Abstract] | |||
Interest income on corporate funds | $ (83.5) | $ (76.7) | $ (62.4) |
Realized gains on available-for-sale securities | (2.0) | (5.3) | (5.1) |
Realized losses on available-for-sale securities | 4.5 | 3.1 | 10.1 |
Gain on sale of businesses (see Note 3) | 0.0 | (205.4) | (29.1) |
Gains on sale of assets | 0.7 | 0.0 | 13.9 |
Voluntary Early Retirement Program (see Note 11) | 319.6 | 0.0 | 0.0 |
Other expense/(income), net | $ 237.9 | $ (284.3) | $ (100.4) |
Corporate Investments And Funds Held For Clients (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | $ 22,776.2 | [1] | $ 21,901.1 | ||
Earliest corporate bond maturity date | July 2018 | ||||
Latest corporate bond maturity date | May 2026 | ||||
Earliest non-callable debt maturity date | September 2018 | ||||
Latest non-callable debt maturity date | March 2026 | ||||
Client Fund Obligation repayment period | 1 year | ||||
Client funds obligations | $ 27,493.5 | 27,189.4 | |||
Funds held for Clients Held-in Grantor Trust | $ 24,242.9 | ||||
Client funds investments with original maturities | ninety days or less | ||||
Percentage of the available-for-sale securities were rated AAA or AA | 80.00% | ||||
Federal Home Loan Banks [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | $ 1,889.5 | ||||
Federal Farm Credit Banks [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 628.0 | ||||
Commercial Mortgage Backed Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 298.2 | ||||
Foreign Corporate Debt Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 198.8 | ||||
Supranational Bonds [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 141.3 | ||||
Fixed Rate Credit Card [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 2,033.6 | ||||
Asset-Backed Auto Loan Receivables [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 1,784.4 | ||||
Asset-Backed Equipment Lease Receivable [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 472.0 | ||||
Rate Reduction Receivable [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 201.7 | ||||
Sovereign Bonds [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 110.3 | ||||
Funds Held For Clients [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | 22,765.7 | 21,890.3 | |||
Corporate Investments [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities - fair value | $ 10.5 | $ 10.8 | |||
|
Corporate Investments And Funds Held For Clients (Corporate Investments And Funds Held For Clients) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||
---|---|---|---|---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||||||
Money market securities and other cash equivalents - Amortized Cost | $ 6,542.1 | $ 8,181.6 | ||||
Cash Equivalents At Gross Unrealized Gains | 0.0 | 0.0 | ||||
Cash Equivalents At Gross Unrealized Losses | 0.0 | 0.0 | ||||
Money market securities and other cash equivalents - Fair Value | 6,542.1 | 8,181.6 | $ 15,458.6 | |||
Total available-for-sale securities - Amortized Cost | 23,131.9 | 21,798.6 | ||||
Available for Sale Securities - Unrealized Gains | 36.7 | 176.3 | ||||
Available for sale securities - Unrealized Loss | (392.4) | (73.8) | ||||
Total available-for-sale securities - Fair Value | 22,776.2 | [1] | 21,901.1 | |||
Total corporate investments and funds held for clients - Amortized Cost | 29,674.0 | 29,980.2 | ||||
Total corporate investments and funds held for clients - Gross Unrealized Gains | 36.7 | 176.3 | ||||
Total corporate investments and funds held for clients - Gross Unrealized Losses | (392.4) | (73.8) | ||||
Total corporate investments and funds held for clients - Fair Value | 29,318.3 | 30,082.7 | ||||
Corporate Bonds [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Amortized Cost | 9,819.4 | 9,325.3 | ||||
Available for Sale Securities - Unrealized Gains | 20.3 | 98.8 | ||||
Available for sale securities - Unrealized Loss | (160.9) | (22.0) | ||||
Total available-for-sale securities - Fair Value | 9,678.8 | 9,402.1 | ||||
Asset-Backed Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Amortized Cost | 4,555.5 | 4,453.1 | ||||
Available for Sale Securities - Unrealized Gains | 0.3 | 16.9 | ||||
Available for sale securities - Unrealized Loss | (64.1) | (8.6) | ||||
Total available-for-sale securities - Fair Value | 4,491.7 | 4,461.4 | ||||
U.S. Treasury And Direct Obligations Of U.S. Government Agencies [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Amortized Cost | 2,787.0 | 3,557.7 | ||||
Available for Sale Securities - Unrealized Gains | 4.0 | 22.2 | ||||
Available for sale securities - Unrealized Loss | (47.7) | (13.4) | ||||
Total available-for-sale securities - Fair Value | 2,743.3 | 3,566.5 | ||||
US Treasury and Government [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Amortized Cost | 2,678.9 | 1,585.9 | ||||
Available for Sale Securities - Unrealized Gains | 0.4 | 2.6 | ||||
Available for sale securities - Unrealized Loss | (76.9) | (14.3) | ||||
Total available-for-sale securities - Fair Value | 2,602.4 | 1,574.2 | ||||
Canadian Government Obligations And Canadian Government Agency Obligations [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Amortized Cost | 1,109.0 | 1,053.6 | ||||
Available for Sale Securities - Unrealized Gains | 0.4 | 2.9 | ||||
Available for sale securities - Unrealized Loss | (20.6) | (11.4) | ||||
Total available-for-sale securities - Fair Value | 1,088.8 | 1,045.1 | ||||
Canadian Provincial Bonds [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Amortized Cost | 724.5 | 746.9 | ||||
Available for Sale Securities - Unrealized Gains | 5.1 | 14.3 | ||||
Available for sale securities - Unrealized Loss | (7.4) | (1.4) | ||||
Total available-for-sale securities - Fair Value | 722.2 | 759.8 | ||||
Municipal Bonds [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Amortized Cost | 584.6 | 582.5 | ||||
Available for Sale Securities - Unrealized Gains | 3.2 | 11.3 | ||||
Available for sale securities - Unrealized Loss | (4.3) | (1.3) | ||||
Total available-for-sale securities - Fair Value | 583.5 | 592.5 | ||||
Other Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Amortized Cost | 873.0 | 493.6 | ||||
Available for Sale Securities - Unrealized Gains | 3.0 | 7.3 | ||||
Available for sale securities - Unrealized Loss | (10.5) | (1.4) | ||||
Total available-for-sale securities - Fair Value | 865.5 | 499.5 | ||||
Corporate Investments [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Fair Value | 10.5 | 10.8 | ||||
Funds Held For Clients [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Total available-for-sale securities - Fair Value | $ 22,765.7 | $ 21,890.3 | ||||
|
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, 2018 |
Jun. 30, 2017 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (283.4) | $ (73.5) |
Fair market value of securities in unrealized loss position less than 12 months | 16,606.5 | 8,915.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (109.0) | (0.3) |
Fair market value of securities in unrealized loss positions greater than 12 months | 3,256.8 | 29.8 |
Total Gross Unrealized Losses | (392.4) | (73.8) |
Total fair market value of securities in unrealized loss position | 19,863.3 | 8,945.1 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (118.2) | (22.0) |
Fair market value of securities in unrealized loss position less than 12 months | 7,132.9 | 2,619.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (42.7) | 0.0 |
Fair market value of securities in unrealized loss positions greater than 12 months | 994.2 | 7.4 |
Total Gross Unrealized Losses | (160.9) | (22.0) |
Total fair market value of securities in unrealized loss position | 8,127.1 | 2,627.3 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (47.4) | (8.5) |
Fair market value of securities in unrealized loss position less than 12 months | 3,515.9 | 1,916.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (16.7) | (0.1) |
Fair market value of securities in unrealized loss positions greater than 12 months | 867.7 | 11.3 |
Total Gross Unrealized Losses | (64.1) | (8.6) |
Total fair market value of securities in unrealized loss position | 4,383.6 | 1,927.4 |
U.S. Treasury And Direct Obligations Of U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (31.2) | (13.4) |
Fair market value of securities in unrealized loss position less than 12 months | 2,013.8 | 1,935.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (16.5) | 0.0 |
Fair market value of securities in unrealized loss positions greater than 12 months | 431.1 | 0.0 |
Total Gross Unrealized Losses | (47.7) | (13.4) |
Total fair market value of securities in unrealized loss position | 2,444.9 | 1,935.3 |
US Treasury and Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (46.9) | (14.3) |
Fair market value of securities in unrealized loss position less than 12 months | 1,676.8 | 1,317.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (30.0) | 0.0 |
Fair market value of securities in unrealized loss positions greater than 12 months | 864.0 | 1.0 |
Total Gross Unrealized Losses | (76.9) | (14.3) |
Total fair market value of securities in unrealized loss position | 2,540.8 | 1,318.8 |
Canadian Government Obligations And Canadian Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (20.6) | (11.4) |
Fair market value of securities in unrealized loss position less than 12 months | 1,020.3 | 699.6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.0 | 0.0 |
Fair market value of securities in unrealized loss positions greater than 12 months | 0.0 | 0.0 |
Total Gross Unrealized Losses | (20.6) | (11.4) |
Total fair market value of securities in unrealized loss position | 1,020.3 | 699.6 |
Canadian Provincial Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (6.3) | (1.4) |
Fair market value of securities in unrealized loss position less than 12 months | 387.7 | 179.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1.1) | 0.0 |
Fair market value of securities in unrealized loss positions greater than 12 months | 50.4 | 0.0 |
Total Gross Unrealized Losses | (7.4) | (1.4) |
Total fair market value of securities in unrealized loss position | 438.1 | 179.8 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3.6) | (1.2) |
Fair market value of securities in unrealized loss position less than 12 months | 285.8 | 98.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (0.7) | (0.1) |
Fair market value of securities in unrealized loss positions greater than 12 months | 16.0 | 1.2 |
Total Gross Unrealized Losses | (4.3) | (1.3) |
Total fair market value of securities in unrealized loss position | 301.8 | 100.0 |
Other Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (9.2) | (1.3) |
Fair market value of securities in unrealized loss position less than 12 months | 573.3 | 148.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1.3) | (0.1) |
Fair market value of securities in unrealized loss positions greater than 12 months | 33.4 | 8.9 |
Total Gross Unrealized Losses | (10.5) | (1.4) |
Total fair market value of securities in unrealized loss position | $ 606.7 | $ 156.9 |
Corporate Investments And Funds Held For Clients (Classification Of Corporate Investments On The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
[1] | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Corporate Investments And Funds Held For Clients [Abstract] | ||||||||||||
Cash and cash equivalents | $ 2,170.0 | $ 2,780.4 | [1] | $ 3,191.1 | ||||||||
Marketable Securities, Current | [2] | 3.3 | 3.2 | |||||||||
Long-term marketable securities | [3] | 7.2 | 7.6 | |||||||||
Total corporate investments | $ 2,180.5 | $ 2,791.2 | ||||||||||
|
Corporate Investments And Funds Held For Clients (Schedule Of Investment Of Funds Held For Clients) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
[2] | |||||
---|---|---|---|---|---|---|---|---|---|
Corporate Investments And Funds Held For Clients [Abstract] | |||||||||
Restricted cash and cash equivalents held to satisfy client funds obligations | [1] | $ 4,372.1 | $ 5,401.2 | [2] | $ 12,267.5 | ||||
Restricted short-term marketable securities held to satisfy client funds obligations | 2,521.4 | 2,918.5 | |||||||
Restricted long-term marketable securities held to satisfy client funds obligations | 20,244.3 | 18,971.8 | |||||||
Total funds held for clients | $ 27,137.8 | $ 27,291.5 | |||||||
|
Corporate Investments And Funds Held For Clients (Expected Maturities Of Available-For-Sale Securities) (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Corporate Investments And Funds Held For Clients [Abstract] | |
Due in one year or less | $ 2,524.7 |
Due after one year to two years | 5,110.2 |
Due after two years to three years | 5,533.9 |
Due after three years to four years | 3,798.0 |
Due after four years | 5,809.4 |
Total available-for-sale securities | $ 22,776.2 |
Property, Plant, and Equipment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation Expense | $ 173.1 | $ 147.3 | $ 135.6 |
Property, Plant and Equipment, Gross | 2,136.3 | 2,031.4 | |
Accumulated Depreciation | (1,342.6) | (1,251.5) | |
Property, Plant and Equipment, Net | 793.7 | 779.9 | |
Land and Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 791.8 | 778.1 | |
Data Processing Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 707.4 | 653.7 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 637.1 | $ 599.6 |
Goodwill And Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 204.5 | $ 168.8 | $ 153.0 |
Weighted average remaining useful life | 5 years | ||
Software And Software Licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 4 years | ||
Customer Contracts And Lists [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 8 years | ||
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 5 years |
Goodwill And Intangible Assets, Net (Changes In Goodwill) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,741.0 | $ 1,682.0 |
Additions and other adjustments | 494.9 | 73.4 |
Currency translation adjustments | 7.6 | 7.0 |
Disposition of business | (21.4) | |
Ending balance | 2,243.5 | 1,741.0 |
Employer Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,736.2 | 1,677.2 |
Additions and other adjustments | 494.9 | 73.4 |
Currency translation adjustments | 7.6 | 7.0 |
Disposition of business | (21.4) | |
Ending balance | 2,238.7 | 1,736.2 |
PEO Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4.8 | 4.8 |
Additions and other adjustments | 0.0 | 0.0 |
Currency translation adjustments | 0.0 | 0.0 |
Disposition of business | 0.0 | |
Ending balance | $ 4.8 | $ 4.8 |
Goodwill And Intangible Assets, Net (Components Of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | $ 3,238.0 | $ 2,817.5 |
Total - accumulated amortization | (2,351.6) | (2,197.3) |
Intangible assets, net | 886.4 | 620.2 |
Software And Software Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | 2,292.9 | 1,975.2 |
Total - accumulated amortization | (1,606.6) | (1,483.7) |
Customer Contracts And Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | 708.6 | 614.1 |
Total - accumulated amortization | (533.4) | (506.0) |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | 236.5 | 228.2 |
Total - accumulated amortization | $ (211.6) | $ (207.6) |
Goodwill And Intangible Assets, Net (Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Twelve months ending June 30, 2019 | $ 244.4 |
Twelve months ending June 30, 2020 | 209.6 |
Twelve months ending June 30, 2021 | 162.4 |
Twelve months ending June 30, 2022 | 120.0 |
Twelve months ending June 30, 2023 | $ 80.8 |
Short-Term Financing (Details) - USD ($) |
1 Months Ended | 11 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Jun. 30, 2018 |
May 31, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Short-term Debt [Line Items] | ||||
Credit borrowings | $ 0 | $ 0 | $ 0 | |
Commercial Paper | 0 | $ 0 | 0 | |
Maturities of short-term funding agreements | overnight to up to five business days | |||
Obligations under reverse repurchase agreements | 0 | $ 0 | $ 0 | |
364-Day Credit Agreement [Member] | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity under credit facilities | 3,800,000,000 | $ 3,800,000,000 | ||
Term of credit | 364 days | |||
Expiration date of credit facilities | Jun. 16, 2019 | |||
Debt Instrument, Extension Option Term | 1 year | |||
Short-Term Commercial Paper Program [Member] | ||||
Short-term Debt [Line Items] | ||||
Weighted average maturity of borrowings under the short-term commercial paper program | 2 days | 2 days | ||
Reverse Repurchase Agreements [Member] | ||||
Short-term Debt [Line Items] | ||||
Short-term Debt, Average Outstanding Amount | $ 374,400,000 | $ 274,800,000 | ||
Debt Instrument, Interest Rate During Period | 1.30% | 0.60% | ||
Credit Facility Expiring In June Two Thousand Twenty Two [Member] | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity under credit facilities | 2,250,000,000 | $ 2,250,000,000 | ||
Term of credit | 5 years | |||
Expiration date of credit facilities | Jun. 17, 2022 | |||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | |||
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 | $ 3,750,000,000 | ||
Term of credit | 5 years | |||
Expiration date of credit facilities | Jun. 13, 2023 | |||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | |||
Commercial Paper [Member] | ||||
Short-term Debt [Line Items] | ||||
Aggregate amount of commercial paper issuable under the short-term commercial paper program | $ 9,800,000,000 | $ 9,500,000,000 | ||
Maturities of commercial paper range | overnight to up to 364 days | |||
Short-term Debt, Average Outstanding Amount | $ 2,800,000,000 | $ 3,100,000,000 | ||
Debt Instrument, Interest Rate During Period | 1.40% | 0.60% |
Long Term Debt (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Debt Instrument [Line Items] | ||
Notes Payable | $ 2,013,000,000 | $ 2,020,300,000 |
Debt Instrument, Face Amount | 2,000,000,000 | |
Long-term Debt, Fair Value | 1,976,000,000 | |
Debt, Current | (2,500,000) | (7,800,000) |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | (8,100,000) | (10,100,000) |
Other | $ 2,002,400,000 | 2,002,400,000 |
Notes due on 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | |
Debt Instrument, Maturity Date | Sep. 15, 2020 | |
Notes Payable | $ 1,000,000,000 | 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% | |
Debt Instrument, Maturity Date | Sep. 15, 2025 | |
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 | $ 13,000,000 | $ 20,300,000 |
Employee Benefit Plans (Narrative) (Details) shares in Millions |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2019 |
Jun. 30, 2019
USD ($)
|
May 01, 2018 |
Mar. 01, 2018 |
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
shares
|
Dec. 31, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
shares
|
Dec. 31, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock options - term for stock options granted, in years | 10 years | ||||||||||
Stock repurchased during period (in shares) | shares | 8.5 | 13.5 | |||||||||
Cash payments for Restricted Stock Units | $ 27,100,000 | $ 24,500,000 | $ 25,200,000 | ||||||||
Aggregate intrinsic value of stock options outstanding and exercisable | 188,800,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 83,800,000 | ||||||||||
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 | $ 60,000,000 | 70,900,000 | 85,400,000 | ||||||||
Award requisite service period | 3 years | ||||||||||
VERP announcement date | Mar. 01, 2018 | ||||||||||
VERP Minimum Age Requirement | 55 years | ||||||||||
VERP Minimum Period | 10 years | ||||||||||
VERP Number of Eligible Associates | 3,500 | ||||||||||
VERP Percent of Eligible Associates from Total | 6.00% | ||||||||||
VERP Election Expiration Date | May 01, 2018 | ||||||||||
Associates Opting to Participate in VERP | 2,200 | ||||||||||
VERP Expenses | $ 319,600,000 | 0 | 0 | ||||||||
VERP Period of Health Care Coverage Following Retirement | 24 months | ||||||||||
VERP Expenses in SG&A | $ 13,400,000.0 | ||||||||||
VERP Charge Under Stock Based Comp Exp | 3,800,000 | ||||||||||
Defined Benefit Plan, Accumulated Benefit Obligation | 2,121,100,000 | 1,852,500,000 | |||||||||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | (238,100,000) | ||||||||||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 19,000,000 | ||||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 10,900,000 | 11,900,000 | |||||||||
Expected future plan benefit payment - 2019 | 308,000,000 | ||||||||||
Expected future plan benefit payment - 2020 | 148,800,000 | ||||||||||
Expected future plan benefit payment - 2021 | 160,200,000 | ||||||||||
Expected future plan benefit payment - 2022 | 100,300,000 | ||||||||||
Expected future plan benefit payment - 2023 | 107,700,000 | ||||||||||
Expected future plan benefit payment - 2024 to 2028 | 669,400,000 | ||||||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 319,500,000 | 100,000 | 100,000 | ||||||||
Fair Value of Plan Assets | 2,178,100,000 | 2,138,400,000 | $ 2,006,300,000 | ||||||||
Additional estimated future contribution | $ 8,300,000 | ||||||||||
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 | $ 100,600,000 | $ 87,900,000 | $ 81,900,000 | ||||||||
Stock Options Granted After July 2008 [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Vesting term options granted | 4 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 | $ 13,300,000 | ||||||||||
Weighted-average remaining requisite vesting period | 2 years 2 months | ||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Total remaining unrecognized compensation cost | $ 54,400,000 | ||||||||||
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 | $ 65,600,000 | ||||||||||
Weighted-average remaining requisite vesting period | 1 year 1 month | ||||||||||
Minimum [Member] | Performance Based Restricted Stock and Units [Domain] | |||||||||||
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] | Performance Based Restricted Stock and Units [Domain] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Vesting term options granted | 26 months | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Performance Period | 3 years | ||||||||||
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Fair Value of Plan Assets | $ 13,200,000 | $ 15,200,000 | |||||||||
Subsequent Event [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
VERP Anticipated Future Charge | $ 35,000,000 | ||||||||||
Supplemental Officers Retirement Plan Freeze Date | Jul. 01, 2019 | ||||||||||
Date to Accrue Benefit for SORP | Jun. 30, 2019 | ||||||||||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $ 1,800,000 | 1,800,000 | |||||||||
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | $ 2,200,000 | $ 2,200,000 |
Employee Benefit Plans (Components Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Stock-based compensation expense | $ 175.4 | $ 138.9 | $ 137.6 |
Income Tax Benefit | 44.1 | 49.9 | 49.6 |
Operating Expenses [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Stock-based compensation expense | 22.9 | 21.5 | 23.1 |
Selling, General and Administrative Expenses [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Stock-based compensation expense | 128.7 | 99.2 | 97.4 |
System Development And Programming Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Stock-based compensation expense | $ 23.8 | $ 18.2 | $ 17.1 |
Employee Benefit Plans (Changes In Stock Options Outstanding) (Details) shares in Thousands |
12 Months Ended |
---|---|
Jun. 30, 2018
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Options outstanding at July 1, 2017 (in shares) | 4,172 |
Options granted (in shares) | 1,137 |
Options exercised (in shares) | (1,190) |
Options canceled (in shares) | (136) |
Options outstanding at June 30, 2018 (in shares) | 3,983 |
Options exercisable at June 30, 2018 (in shares) | 1,333 |
Shares available for future grants, end of year | 15,912 |
Shares reserved for issuance under stock option plans, end of year | 19,895 |
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 | $ 75 |
Weighted Average Price, granted (in dollars per share) | $ / shares | 107 |
Weighted Average Price, exercised (in dollars per share) | $ / shares | 67 |
Weighted Average Price, cancelled (in dollars per share) | $ / shares | 84 |
Weighted Average Price, outstanding at June 30, 2016 (in dollars per share) | $ / shares | 87 |
Weighted Average Price, Option exercisable at June 30, 2016 (in dollars per share) | $ / shares | $ 71 |
Employee Benefit Plans (Time-Based Restricted shares and units) (Details) shares in Thousands |
12 Months Ended |
---|---|
Jun. 30, 2018
shares
| |
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 | 1,761 |
Restricted shares/units granted | 877 |
Restricted shares/units vested | (919) |
Restricted shares/units forfeited | (121) |
Restricted shares/units outstanding at June 30, 2016 | 1,598 |
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 | 386 |
Restricted shares/units granted | 182 |
Restricted shares/units vested | (196) |
Restricted shares/units forfeited | (27) |
Restricted shares/units outstanding at June 30, 2016 | 345 |
Employee Benefit Plans (Performance based restricted shares and units) (Details) shares in Thousands |
12 Months Ended |
---|---|
Jun. 30, 2018
shares
| |
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 | 404 |
Restricted shares/units granted | 157 |
Restricted shares/units vested | (238) |
Restricted shares/units forfeited | (21) |
Restricted shares/units outstanding at June 30, 2016 | 302 |
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 | 769 |
Restricted shares/units granted | 352 |
Restricted shares/units vested | (286) |
Restricted shares/units forfeited | (46) |
Restricted shares/units outstanding at June 30, 2016 | 789 |
Employee Benefit Plans (Assumptions Used To Estimate Fair Value For Stock Options Granted) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Retirement Benefits [Abstract] | |||
Risk-free interest rate | 1.80% | 1.20% | 1.60% |
Dividend yield | 2.10% | 2.30% | 2.60% |
Weighted average volatility factor | 21.70% | 23.20% | 25.60% |
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) | $ 17.50 | $ 14.36 | $ 13.16 |
Employee Benefit Plans Weighted average fair value of restricted stock plan issuances (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in dollars per share) | $ 17.50 | $ 14.36 | $ 13.16 |
Performance-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in dollars per share) | 107.43 | 90.63 | 75.95 |
Time-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in dollars per share) | $ 108.10 | $ 90.99 | $ 76.09 |
Employee Benefit Plans (Funded Status of Pension Plans) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets, beginning of year | $ 2,138.4 | $ 2,006.3 | |
Actual return on plan assets | 148.5 | 195.2 | |
Employer contributions | 10.9 | 11.9 | |
Currency translation adjustments | 5.0 | (3.2) | |
Benefits Paid | 124.7 | 71.8 | |
Fair Value of Plan Assets, end of year | 2,178.1 | 2,138.4 | $ 2,006.3 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 1,866.7 | 1,843.9 | |
Service cost | 74.6 | 80.8 | 70.4 |
Interest cost | 65.4 | 60.0 | 67.4 |
Actuarial (gains)/losses | (73.7) | (44.5) | |
Currency translation adjustments | 7.5 | 2.7 | |
Curtailments and special termination benefits | 319.5 | (4.4) | |
Benefits Paid | (124.7) | (71.8) | |
Projected benefit obligation at end of year | 2,135.3 | 1,866.7 | $ 1,843.9 |
Funded status - plan assets less benefit obligations | $ 42.8 | $ 271.7 |
Employee Benefit Plans (Balance Sheet Impact - After Adoption Of SFAS158) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Retirement Benefits [Abstract] | ||
Noncurrent assets | $ 180.8 | $ 413.8 |
Current liabilities | (5.3) | (5.0) |
Noncurrent liabilities | (132.7) | (137.1) |
Net amount recognized | $ 42.8 | $ 271.7 |
Employee Benefit Plan (Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 151.3 | $ 241.0 |
Accumulated benefit obligation | 138.1 | 227.9 |
Fair value of plan assets | $ 13.3 | $ 98.9 |
Employee Benefit Plans (Components Of Net Pension Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Retirement Benefits [Abstract] | |||
Service cost - benefits earned during the period | $ 74.6 | $ 80.8 | $ 70.4 |
Interest cost on projected benefits | 65.4 | 60.0 | 67.4 |
Expected return on plan assets | (137.5) | (135.8) | (131.2) |
Net amortization and deferral | 8.4 | 19.1 | 11.0 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 319.5 | 0.1 | 0.1 |
Net pension expense | $ 330.4 | $ 24.2 | $ 17.7 |
Employee Benefit Plan (Defined Benefit Plan Assumtpions Used in Calculating Benefit Obligations) (Details) |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Retirement Benefits [Abstract] | ||
Discount Rate | 4.10% | 3.70% |
Increase in compensation levels | 4.00% | 4.00% |
Employee Benefit Plan (Assumptions Used in Calculating Net Pension Expense) (Details) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Retirement Benefits [Abstract] | |||
Discount rate | 3.70% | 3.40% | 4.25% |
Expected long-term rate of return on assets | 6.75% | 7.00% | 7.00% |
Increase in compensation levels | 4.00% | 4.00% | 4.00% |
Employee Benefit Plans (Pension Plan Asset Allocation by Asset Category) (Details) |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
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 | 52.00% | 36.00% |
United States Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 14.00% | 19.00% |
International Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 12.00% | 16.00% |
Global Equity Securities [Domain] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 22.00% | 28.00% |
Employee Benefit Plans (Pension Plans' Target Asset Allocation Ranges) (Details) |
12 Months Ended |
---|---|
Jun. 30, 2018 | |
Minimum [Member] | United States Fixed Income Securities | |
Investment [Line Items] | |
Defined Benefit Plan, Target Allocation Percentage | 0.35 |
Minimum [Member] | United States Equity Securities [Member] | |
Investment [Line Items] | |
Defined Benefit Plan, Target Allocation Percentage | 0.14 |
Minimum [Member] | International Securities [Member] | |
Investment [Line Items] | |
Defined Benefit Plan, Target Allocation Percentage | 0.11 |
Minimum [Member] | Global Equity Securities [Domain] | |
Investment [Line Items] | |
Defined Benefit Plan, Target Allocation Percentage | 0.2 |
Maximum [Member] | United States Fixed Income Securities | |
Investment [Line Items] | |
Defined Benefit Plan, Target Allocation Percentage | 0.45 |
Maximum [Member] | United States Equity Securities [Member] | |
Investment [Line Items] | |
Defined Benefit Plan, Target Allocation Percentage | 0.24 |
Maximum [Member] | International Securities [Member] | |
Investment [Line Items] | |
Defined Benefit Plan, Target Allocation Percentage | 0.21 |
Maximum [Member] | Global Equity Securities [Domain] | |
Investment [Line Items] | |
Defined Benefit Plan, Target Allocation Percentage | 0.3 |
Employee Benefit Plans Employee Benefit Plans (Investments of the Plan Measured at Fair Value) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
---|---|---|---|
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 2,178.1 | $ 2,138.4 | $ 2,006.3 |
Comingled Trusts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,036.7 | 1,338.5 | |
Comingled Trusts [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.0 | 0.0 | |
Comingled Trusts [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,036.7 | 1,338.5 | |
Comingled Trusts [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.0 | 0.0 | |
US Treasury and Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 507.7 | 337.7 | |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.0 | 0.0 | |
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 507.7 | 337.7 | |
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.0 | 0.0 | |
Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 5.5 | 4.8 | |
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 5.5 | 4.8 | |
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.0 | 0.0 | |
Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.0 | 0.0 | |
Corporate And Municipal Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 586.8 | 409.3 | |
Corporate And Municipal Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.0 | 0.0 | |
Corporate And Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 586.8 | 409.3 | |
Corporate And Municipal Bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.0 | 0.0 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 28.2 | 32.9 | |
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 | 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 | 28.2 | 32.9 | |
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 | 0.0 | |
Total Pension Assets Excluding Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,164.9 | 2,123.2 | |
Total Pension Assets Excluding Cash [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 5.5 | 4.8 | |
Total Pension Assets Excluding Cash [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,159.4 | 2,118.4 | |
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 | $ 0.0 |
Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Effective Income Tax Rate Reconciliation, Percent | 25.30% | 31.50% | 33.20% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.10% | 35.00% | 35.00% | |
Tax Cuts and Jobs Act of 2017 Incomplete Accounting Provisional Income Tax One Time Benefit, Net | $ 1.6 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Undistributed Accumulated earnings of Foreign Subsidiary, Provisional Unrecognized Deferred Tax Liability | 34.5 | |||
Accrual On Foreign Withholding Taxes | 28.3 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax (Expense) Benefit | 68.0 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | 22.9 | |||
Long-Term deferred tax assets | 90.1 | $ 93.4 | ||
Undistributed Earnings of Foreign Subsidiaries | 300.9 | |||
Deferred Tax Assets, Operating Loss Carryforwards | 44.6 | 49.5 | ||
Valuation Allowance | 46.0 | 9.4 | ||
Income Taxes Paid | 529.7 | 817.1 | $ 651.6 | |
Unrecognized Tax Benefits | 45.2 | 74.6 | 27.4 | $ 27.1 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 36.1 | 61.0 | 18.7 | |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 3.2 | 3.0 | $ 1.1 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 7.9 | 6.9 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 0.3 | 0.2 | ||
Tax Settlements Future Impact Potential On Earnings Maximum | 2.0 | |||
Max Expected Cash Payment On Tax Settlements | 25.0 | |||
Foreign Tax Authority [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | 62.7 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 4.8 | |||
Operating Loss Carryforwards, Expiration Date | Jun. 30, 2026 | |||
Operating loss carry forwards not subject to expiration | $ 57.9 | |||
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards | $ 61.7 | |||
Internal Revenue Service (IRS) [Member] | ||||
Operating Loss Carryforwards, Expiration Date | Jun. 30, 2037 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards, Expiration Date | Jun. 30, 2037 | |||
Operating Loss Carryforwards | $ 255.4 | |||
Income Taxes Payable [Member] | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 4.8 | $ 0.1 |
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, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 1,849.8 | $ 2,232.8 | $ 2,028.5 | ||||||||
Foreign | 321.3 | 298.3 | 206.2 | ||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ 204.5 | $ 852.6 | $ 565.7 | $ 548.2 | $ 388.4 | $ 827.9 | $ 786.2 | $ 528.7 | $ 2,171.1 | $ 2,531.1 | $ 2,234.7 |
Income Taxes (Components of Provision (Benefit) For Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 366.7 | $ 615.3 | $ 579.0 |
Current Foreign Tax Expense (Benefit) | 105.5 | 91.6 | 85.0 |
Current State and Local Tax Expense (Benefit) | 77.6 | 82.7 | 76.6 |
Current Income Tax Expense (Benefit) | 549.8 | 789.6 | 740.6 |
Deferred Federal Income Tax Expense (Benefit) | (24.8) | 6.2 | 17.7 |
Deferred Foreign Income Tax Expense (Benefit) | 19.7 | 7.2 | (15.7) |
Deferred State and Local Income Tax Expense (Benefit) | 5.6 | (5.3) | (1.3) |
Deferred Income Tax Expense (Benefit) | 0.5 | 8.1 | 0.7 |
Provision for income taxes from continuing operations | $ 550.3 | $ 797.7 | $ 741.3 |
Income Taxes (Reconciliation of U.S. Federal Statutory Rate To Effective Tax Rate) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Provision for taxes at U.S. statutory rate | $ 609.2 | $ 885.9 | $ 782.1 |
Provision for taxes at U.S. statutory rate, percent | 28.10% | 35.00% | 35.00% |
State taxes, net of federal tax benefit | $ 51.0 | $ 52.2 | $ 47.2 |
State taxes, net of federal tax benefit, percent | 2.40% | 2.10% | 2.10% |
U.S. tax on foreign income | $ 12.0 | $ 66.1 | $ 122.6 |
U.S. tax on foreign income, percent | 0.50% | 2.60% | 5.50% |
Utilization of foreign tax credits | $ (19.6) | $ (76.0) | $ (155.4) |
Utilization of foreign tax credits, percent | (0.90%) | (3.00%) | (7.00%) |
Section 199 - Qualified production activities | $ (31.9) | $ (33.2) | $ (31.9) |
Section 199 - Qualified production activities, percent | (1.50%) | (1.30%) | (1.40%) |
Section 199 - Qualified production activities and research tax credit refund claim - net of reserves | $ 0.0 | $ (51.8) | $ 0.0 |
Section 199 - Qualified production activities and research tax credit refund claim - net of reserves, percent | (0.00%) | (2.10%) | (0.00%) |
Income Tax Reconciliation Resolution Of Tax Matters | $ (33.3) | $ 0.0 | $ 0.0 |
Effective Income Tax Rate Reconciliation Resolution Of Tax Matters | (1.60%) | 0.00% | 0.00% |
Excess tax benefit - Stock-based compensation | $ (26.7) | $ (32.1) | $ 0.0 |
Excess tax benefit - Stock-based compensation, percent | (1.20%) | (1.30%) | (0.00%) |
Other | $ (10.4) | $ (13.4) | $ (23.3) |
Other, percent | (0.50%) | (0.50%) | (1.00%) |
Provision for income taxes from continuing operations | $ 550.3 | $ 797.7 | $ 741.3 |
Effective Income Tax Rate, Continuing Operations | 25.30% | 31.50% | 33.20% |
Income Taxes (Components of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Accrued expenses not currently deductible | $ 178.3 | $ 294.5 |
Stock-based compensation expense | 49.6 | 75.5 |
Foreign Tax Credits | 40.0 | 49.5 |
Net operating losses | 44.6 | 49.5 |
Deferred Tax Assets, Unrealized Losses on Trading Securities | 83.6 | 0.0 |
Other | 20.4 | 18.7 |
Deferred Tax Assets, Gross | 416.5 | 487.7 |
Valuation Allowance | (46.0) | (9.4) |
Deferred Tax Assets, Net of Valuation Allowance | 370.5 | 478.3 |
Prepaid retirement benefits | 19.3 | 125.1 |
Deferred Revenue | 16.5 | 35.5 |
Fixed and intangible assets | 242.4 | 226.3 |
Prepaid expenses | 71.8 | 122.5 |
Unrealized investment gains, net | 0.0 | 33.4 |
Tax on unrepatriated earnings | 28.3 | 0.0 |
Other | 9.4 | 5.2 |
Deferred Tax Liabilities | 387.7 | 548.0 |
Deferred Tax Liabilities, Net | $ 17.2 | $ 69.7 |
Income Taxes (Reconciliation of Beginning and Ending balance of Unrecognized Tax) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, beginning balance | $ 74.6 | $ 27.4 | $ 27.1 |
Additions for tax positions | 4.0 | 7.5 | 3.8 |
Additions for tax positions of periods | 19.8 | 41.9 | 3.5 |
Reductions for tax positions of periods | (40.5) | (0.5) | (0.1) |
Settlement with tax authorities | (11.7) | (0.9) | (1.7) |
Expiration of the statute of limitations | (1.0) | (0.9) | (4.9) |
Impact of foreign exchange rate fluctuations | 0.0 | 0.1 | (0.3) |
Unrecognized Tax Benefits, ending balance | $ 45.2 | $ 74.6 | $ 27.4 |
Income Taxes Income Tax (Taxing Jurisdictions) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income Tax Examination [Line Items] | ||
Deferred Tax Assets, Net of Valuation Allowance, Current | $ 0.0 | |
Deferred Tax Liabilities, Net, Current | $ 0.0 | |
Earliest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2018 | |
Earliest Tax Year [Member] | ILLINOIS | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2004 | |
Earliest Tax Year [Member] | CANADA [Member] | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2014 | |
Earliest Tax Year [Member] | INDIA | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2004 | |
Earliest Tax Year [Member] | GERMANY | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2010 | |
Latest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2018 | |
Latest Tax Year [Member] | ILLINOIS | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2016 | |
Latest Tax Year [Member] | CANADA [Member] | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2014 | |
Latest Tax Year [Member] | INDIA | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2015 | |
Latest Tax Year [Member] | GERMANY | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2014 |
Contractual Commitments Contingencies and Off-Balance Sheet Arrangements (Narrative) (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitments relating to June 30, 2018 | $ 576.3 |
Purchase commitments relating to June 30, 2019 | 363.0 |
Purchase commitments relating to June 30, 2020 | $ 113.6 |
Contractual Commitments Contingencies and Off-Balance Sheet Arrangements (Minimum Commitments Under Obligation From Various Facilities And Equipment Leases and Software License Agreements) (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2018 | $ 107.1 |
2019 | 102.1 |
2020 | 77.1 |
2021 | 58.7 |
2022 | 47.8 |
Thereafter | 146.7 |
Future Minimum Payments Due | $ 539.5 |
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | $ (259.3) | $ (164.1) | $ 45.5 | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Accumulated Other Comprehensive, beginning balance | (379.2) | (215.1) | (260.6) | |||||||
Other comprehensive income/(loss) before reclassification adjustments | (370.9) | (273.1) | 63.9 | |||||||
Tax effect | 104.7 | 98.0 | (29.3) | |||||||
Reclassification adjustments to net earnings | 12.0 | 18.4 | 17.0 | |||||||
Tax effect | (5.1) | (7.4) | (6.1) | |||||||
Tax Cuts and Jobs Act of 2017, Reclassfication from AOCI to Retained Earnings, Tax Effect | [1] | (42.3) | ||||||||
Accumulated Other Comprehensive, ending balance | (680.8) | (379.2) | (215.1) | |||||||
Accumulated Translation Adjustment [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Accumulated Other Comprehensive, beginning balance | (230.8) | (253.8) | (228.3) | |||||||
Other comprehensive income/(loss) before reclassification adjustments | 2.8 | 23.0 | (25.5) | |||||||
Tax effect | 0.0 | 0.0 | 0.0 | |||||||
Reclassification adjustments to net earnings | 0.0 | 0.0 | 0.0 | |||||||
Tax effect | 0.0 | 0.0 | 0.0 | |||||||
Tax Cuts and Jobs Act of 2017, Reclassfication from AOCI to Retained Earnings, Tax Effect | [1] | 0.0 | ||||||||
Accumulated Other Comprehensive, ending balance | (228.0) | (230.8) | (253.8) | |||||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Accumulated Other Comprehensive, beginning balance | 68.3 | 333.8 | 143.9 | |||||||
Other comprehensive income/(loss) before reclassification adjustments | (460.7) | (405.7) | 288.8 | |||||||
Tax effect | 123.4 | 141.6 | (102.2) | |||||||
Reclassification adjustments to net earnings | [2] | 2.7 | (2.2) | 5.0 | ||||||
Tax effect | (0.6) | 0.8 | (1.7) | |||||||
Tax Cuts and Jobs Act of 2017, Reclassfication from AOCI to Retained Earnings, Tax Effect | [1] | (7.1) | ||||||||
Accumulated Other Comprehensive, ending balance | (274.0) | 68.3 | 333.8 | |||||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Accumulated Other Comprehensive, beginning balance | (216.7) | (295.1) | (176.2) | |||||||
Other comprehensive income/(loss) before reclassification adjustments | 87.0 | 109.6 | (199.4) | |||||||
Tax effect | (18.7) | (43.6) | 72.9 | |||||||
Reclassification adjustments to net earnings | [3] | 9.3 | 20.6 | 12.0 | ||||||
Tax effect | (4.5) | (8.2) | (4.4) | |||||||
Tax Cuts and Jobs Act of 2017, Reclassfication from AOCI to Retained Earnings, Tax Effect | [1] | (35.2) | ||||||||
Accumulated Other Comprehensive, ending balance | $ (178.8) | $ (216.7) | $ (295.1) | |||||||
|
Financial Data By Segment (Financial Data By Strategic Business Unit Segment) (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2018
USD ($)
segment
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
|||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | $ 3,318.6 | $ 3,693.0 | $ 3,235.4 | $ 3,078.8 | $ 3,064.8 | $ 3,410.8 | $ 2,987.3 | $ 2,916.9 | $ 13,325.8 | $ 12,379.8 | $ 11,667.8 | ||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 204.5 | $ 852.6 | $ 565.7 | $ 548.2 | 388.4 | $ 827.9 | $ 786.2 | $ 528.7 | 2,171.1 | 2,531.1 | 2,234.7 | ||||
Assets from Continuing Operations | 37,088.7 | 37,180.0 | 37,088.7 | 37,180.0 | 43,670.0 | ||||||||||
Capital Expenditures from continuing operations | 191.9 | 249.0 | 165.7 | ||||||||||||
Depreciation, Depletion and Amortization | $ 377.6 | 316.1 | [1] | 288.6 | [1] | ||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||||||
Standard Reconciling Rate Between Actual Interest Income Earned And Interest Credited | 4.50% | ||||||||||||||
Employer Services [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | $ 10,057.8 | 9,535.2 | 9,211.9 | ||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 3,087.4 | 2,918.5 | 2,798.4 | ||||||||||||
Assets from Continuing Operations | 30,250.8 | 30,107.7 | 30,250.8 | 30,107.7 | 36,637.5 | ||||||||||
Capital Expenditures from continuing operations | 113.9 | 83.0 | 71.1 | ||||||||||||
Depreciation, Depletion and Amortization | 291.9 | 247.3 | 230.7 | ||||||||||||
PEO Services [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | 3,896.6 | 3,483.6 | 3,073.1 | ||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 504.2 | 448.6 | 371.2 | ||||||||||||
Assets from Continuing Operations | 760.1 | 586.8 | 760.1 | 586.8 | 534.6 | ||||||||||
Capital Expenditures from continuing operations | 0.0 | 0.2 | 1.0 | ||||||||||||
Depreciation, Depletion and Amortization | 3.0 | 1.3 | 1.5 | ||||||||||||
Other [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | (9.4) | (10.6) | 1.9 | ||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (801.3) | (207.6) | (315.8) | ||||||||||||
Assets from Continuing Operations | 6,077.8 | 6,485.5 | 6,077.8 | 6,485.5 | 6,497.9 | ||||||||||
Capital Expenditures from continuing operations | 78.0 | 165.8 | 93.6 | ||||||||||||
Depreciation, Depletion and Amortization | 82.7 | 67.5 | 56.4 | ||||||||||||
Client Fund Interest [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
TOTAL REVENUES | (619.2) | (628.4) | (619.1) | ||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (619.2) | (628.4) | (619.1) | ||||||||||||
Assets from Continuing Operations | $ 0.0 | $ 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||
Capital Expenditures from continuing operations | 0.0 | 0.0 | 0.0 | ||||||||||||
Depreciation, Depletion and Amortization | $ 0.0 | $ 0.0 | $ 0.0 | ||||||||||||
|
Financial Data By Segment Financial Data By Geographic Area Segment Table (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Reporting Information [Line Items] | |||||||||||
TOTAL REVENUES | $ 3,318.6 | $ 3,693.0 | $ 3,235.4 | $ 3,078.8 | $ 3,064.8 | $ 3,410.8 | $ 2,987.3 | $ 2,916.9 | $ 13,325.8 | $ 12,379.8 | $ 11,667.8 |
Assets from Continuing Operations | 37,088.7 | 37,180.0 | 37,088.7 | 37,180.0 | 43,670.0 | ||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
TOTAL REVENUES | 11,486.4 | 10,760.4 | 10,110.9 | ||||||||
Assets from Continuing Operations | 32,221.0 | 32,401.0 | 32,221.0 | 32,401.0 | 39,194.2 | ||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
TOTAL REVENUES | 1,245.9 | 1,086.0 | 1,063.7 | ||||||||
Assets from Continuing Operations | 2,325.0 | 2,252.3 | 2,325.0 | 2,252.3 | 2,064.3 | ||||||
CANADA [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
TOTAL REVENUES | 322.1 | 291.1 | 284.1 | ||||||||
Assets from Continuing Operations | 2,009.9 | 2,018.1 | 2,009.9 | 2,018.1 | 1,949.4 | ||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
TOTAL REVENUES | 271.4 | 242.3 | 209.1 | ||||||||
Assets from Continuing Operations | $ 532.8 | $ 508.6 | $ 532.8 | $ 508.6 | $ 462.1 |
Financial Data By Segment - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Reporting Information [Line Items] | |||||||||||
TOTAL REVENUES | $ 3,318.6 | $ 3,693.0 | $ 3,235.4 | $ 3,078.8 | $ 3,064.8 | $ 3,410.8 | $ 2,987.3 | $ 2,916.9 | $ 13,325.8 | $ 12,379.8 | $ 11,667.8 |
Restatement Adjustment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
TOTAL REVENUES | 13,327.5 | 12,372.1 | |||||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
TOTAL REVENUES | $ 11,486.4 | 10,760.4 | 10,110.9 | ||||||||
United States [Member] | Restatement Adjustment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
TOTAL REVENUES | $ 223.0 | $ 240.9 |
Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Summarized Quarterly Results of Continuing Operations [Abstract] | |||||||||||
Revenues | $ 3,318.6 | $ 3,693.0 | $ 3,235.4 | $ 3,078.8 | $ 3,064.8 | $ 3,410.8 | $ 2,987.3 | $ 2,916.9 | $ 13,325.8 | $ 12,379.8 | $ 11,667.8 |
Gross profit | 1,366.4 | 1,615.6 | 1,288.7 | 1,212.4 | 1,217.6 | 1,499.8 | 1,219.5 | 1,173.3 | |||
Earnings before income taxes | 204.5 | 852.6 | 565.7 | 548.2 | 388.4 | 827.9 | 786.2 | 528.7 | 2,171.1 | 2,531.1 | 2,234.7 |
Net earnings | $ 108.7 | $ 643.1 | $ 467.5 | $ 401.5 | $ 265.8 | $ 587.9 | $ 510.9 | $ 368.7 | $ 1,620.8 | $ 1,733.4 | $ 1,492.5 |
Basic earnings per share (in dollars per share) | $ 0.25 | $ 1.46 | $ 1.06 | $ 0.91 | $ 0.60 | $ 1.32 | $ 1.14 | $ 0.82 | $ 3.68 | $ 3.87 | $ 3.27 |
Diluted earnings per share (in dollars per share) | $ 0.25 | $ 1.45 | $ 1.05 | $ 0.90 | $ 0.59 | $ 1.31 | $ 1.13 | $ 0.81 | $ 3.66 | $ 3.85 | $ 3.25 |
Subsequent Events (Details) |
Jul. 30, 2018 |
---|---|
Celergo Holdings, Inc. [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Valuation and Qualiying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||||
Allowance for Doubtful Accounts, Current [Member] | ||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||
Balance at beginning of period | $ 49,561 | $ 38,111 | $ 35,493 | |||||
Charged to costs and expenses | 21,443 | 27,660 | 18,626 | |||||
Charged to other accounts | [1] | 5,546 | 1,692 | (265) | ||||
Deductions | [2] | (25,208) | (17,901) | (15,743) | ||||
Balance at end of period | 51,342 | 49,561 | 38,111 | |||||
Allowance for Doubtful Accounts, Noncurrent [Member] | ||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||
Balance at beginning of period | 803 | 547 | 634 | |||||
Charged to costs and expenses | 0 | 260 | 216 | |||||
Charged to other accounts | [1] | (293) | 89 | 93 | ||||
Deductions | [2] | 0 | (93) | (395) | ||||
Balance at end of period | 510 | 803 | 547 | |||||
Valuation Allowance of Deferred Tax Assets [Member] | ||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||
Balance at beginning of period | 9,406 | 15,369 | 23,707 | |||||
Charged to costs and expenses | 38,937 | 892 | 1,364 | |||||
Charged to other accounts | [1] | (325) | (1,754) | (1,022) | ||||
Deductions | (2,013) | (5,101) | (8,680) | |||||
Balance at end of period | $ 46,006 | $ 9,406 | $ 15,369 | |||||
|
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