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Revenue
9 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three strategic pillars: Human Capital Management (“HCM”), HR Outsourcing (“HRO”), and Global (“Global”) Solutions, with separate disaggregation for PEO zero-margin benefits pass-through revenues and client fund interest revenues.  The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors.

HCM provides a suite of product offerings that assist employers of all types and sizes in all stages of the employment cycle, from recruitment to retirement. Global is generally consistent with the types of services provided within HCM but represents geographies outside of the United States and includes our multinational offerings. HCM and Global revenues are primarily attributable to fees for providing solutions for payroll, benefits, talent, retirement services and HR processing and fees charged to implement the Company's solutions for clients.

HRO provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers’ compensation insurance, and administering state unemployment insurance, among other human resources functions. This revenue is primarily driven by the PEO. Amounts collected from PEO worksite employers include payroll, fees for benefits, and an administrative fee that also includes payroll taxes, fees for workers’ compensation and state unemployment taxes. The payroll and payroll taxes collected from the worksite employers are presented in revenue net, as the Company does not retain risk and acts as an agent with respect to this aspect of the PEO arrangement. With respect to the payroll and payroll taxes, the worksite employer is primarily responsible for providing the service and has discretion in establishing wages. The fees collected from the worksite employers for benefits (i.e., PEO benefits pass-throughs), workers’ compensation and state unemployment taxes are presented in revenues and the associated costs of benefits, workers’ compensation and state unemployment taxes are included in operating expenses, as the Company acts as a principal with respect to this aspect of the arrangement. With respect to these fees, the Company is primarily responsible for fulfilling the service and has discretion in establishing price. The Company has further disaggregated HRO to separate out its PEO zero-margin benefits pass-through revenues.

The Company recognizes client fund interest revenues on collected but not yet remitted funds held for clients in revenues as earned, as the collection, holding and remittance of these funds are critical components of providing these services.

The following tables provide details of revenue by our strategic pillars with disaggregation for PEO zero-margin benefits pass-throughs and client fund interest, and include a reconciliation to the Company’s reportable segments:
Three Months EndedNine Months Ended
March 31,March 31,
Types of Revenues2020201920202019
HCM$1,858.3  $1,771.4  $5,074.8  $4,886.1  
HRO, excluding PEO zero-margin benefits pass-throughs742.4  678.7  1,983.6  1,855.4  
PEO zero-margin benefits pass-throughs747.9  665.3  2,169.4  1,965.5  
Global540.3  545.4  1,554.8  1,508.9  
Interest on funds held for clients158.9  167.4  430.4  415.0  
Total Revenues$4,047.8  $3,828.2  $11,213.0  $10,630.9  

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2020:
Types of RevenuesEmployer ServicesPEOOtherTotal
HCM$1,859.8  $—  $(1.5) $1,858.3  
HRO, excluding PEO zero-margin benefits pass-throughs254.1  489.0  (0.7) 742.4  
PEO zero-margin benefits pass-throughs—  747.9  —  747.9  
Global540.3  —  —  540.3  
Interest on funds held for clients157.5  1.4  —  158.9  
Total Segment Revenues$2,811.7  $1,238.3  $(2.2) $4,047.8  
Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2019:
Types of RevenuesEmployer ServicesPEOOtherTotal
HCM$1,774.7  $—  $(3.3) $1,771.4  
HRO, excluding PEO zero-margin benefits pass-throughs233.2  448.6  (3.1) 678.7  
PEO zero-margin benefits pass-throughs—  665.3  —  665.3  
Global545.4  —  —  545.4  
Interest on funds held for clients165.8  1.6  —  167.4  
Total Segment Revenues$2,719.1  $1,115.5  $(6.4) $3,828.2  

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2020:

Types of RevenuesEmployer ServicesPEOOtherTotal
HCM$5,079.6  $—  $(4.8) $5,074.8  
HRO, excluding PEO zero-margin benefits pass-throughs729.7  1,256.5  (2.6) 1,983.6  
PEO zero-margin benefits pass-throughs—  2,169.4  —  2,169.4  
Global1,554.8  —  —  1,554.8  
Interest on funds held for clients426.5  3.9  —  430.4  
Total Segment Revenues$7,790.6  $3,429.8  $(7.4) $11,213.0  

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2019:

Types of RevenuesEmployer ServicesPEOOtherTotal
HCM$4,891.1  $—  $(5.0) $4,886.1  
HRO, excluding PEO zero-margin benefits pass-throughs696.6  1,165.7  (6.9) 1,855.4  
PEO zero-margin benefits pass-throughs—  1,965.5  —  1,965.5  
Global1,508.9  —  —  1,508.9  
Interest on funds held for clients411.1  3.9  —  415.0  
Total Segment Revenues$7,507.7  $3,135.1  $(11.9) $10,630.9  

Contract Balances

The timing of revenue recognition for HCM, HRO and Global Solutions is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.

Changes in deferred revenue related to set up fees for the nine months ended March 31, 2020 were as follows:
Contract Liability
Contract liability, July 1, 2019$563.4  
Recognition of revenue included in beginning of year contract liability(129.7) 
Contract liability, net of revenue recognized on contracts during the period107.6  
Currency adjustments(6.7) 
Contract liability, March 31, 2020$534.6