☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 22-1467904 | |||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |||||||
One ADP Boulevard | ||||||||
Roseland, | NJ | 07068 | ||||||
(Address of principal executive offices) | (Zip Code) | |||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.10 Par Value (voting) | ADP | NASDAQ Global Select Market |
Large | ☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | Smaller reporting company | ☐ | ||||||||||
Emerging growth company | ☐ |
Page | |||||||||
Item 6. | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ | 2,561.8 | $ | 2,405.2 | $ | 5,029.6 | $ | 4,674.9 | |||||||||||||||
Interest on funds held for clients | 106.0 | 105.4 | 207.1 | 211.9 | |||||||||||||||||||
PEO revenues (A) | 1,357.6 | 1,185.1 | 2,621.0 | 2,279.7 | |||||||||||||||||||
TOTAL REVENUES | 4,025.4 | 3,695.7 | 7,857.7 | 7,166.5 | |||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Costs of revenues: | |||||||||||||||||||||||
Operating expenses | 2,040.7 | 1,847.8 | 3,971.5 | 3,610.0 | |||||||||||||||||||
Systems development and programming costs | 199.7 | 174.5 | 388.5 | 343.2 | |||||||||||||||||||
Depreciation and amortization | 100.8 | 100.1 | 203.8 | 203.6 | |||||||||||||||||||
TOTAL COSTS OF REVENUES | 2,341.2 | 2,122.4 | 4,563.8 | 4,156.8 | |||||||||||||||||||
Selling, general, and administrative expenses | 782.3 | 755.8 | 1,501.5 | 1,436.9 | |||||||||||||||||||
Interest expense | 18.4 | 13.9 | 36.9 | 29.0 | |||||||||||||||||||
TOTAL EXPENSES | 3,141.9 | 2,892.1 | 6,102.2 | 5,622.7 | |||||||||||||||||||
Other (income)/expense, net | (26.6) | (29.0) | (55.4) | (54.0) | |||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 910.1 | 832.6 | 1,810.9 | 1,597.8 | |||||||||||||||||||
Provision for income taxes | 215.7 | 185.1 | 416.0 | 348.2 | |||||||||||||||||||
NET EARNINGS | $ | 694.4 | $ | 647.5 | $ | 1,394.9 | $ | 1,249.6 | |||||||||||||||
BASIC EARNINGS PER SHARE | $ | 1.65 | $ | 1.51 | $ | 3.32 | $ | 2.92 | |||||||||||||||
DILUTED EARNINGS PER SHARE | $ | 1.65 | $ | 1.51 | $ | 3.30 | $ | 2.91 | |||||||||||||||
Basic weighted average shares outstanding | 419.8 | 427.4 | 420.6 | 428.0 | |||||||||||||||||||
Diluted weighted average shares outstanding | 422.0 | 429.0 | 422.9 | 429.5 | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
REVENUES: | |||||||||||||||
Revenues, other than interest on funds held for clients and PEO revenues | $ | 2,188.8 | $ | 2,077.4 | $ | 4,269.8 | $ | 4,114.8 | |||||||
Interest on funds held for clients | 106.7 | 91.8 | 206.1 | 181.0 | |||||||||||
PEO revenues (A) | 939.9 | 818.1 | 1,838.3 | 1,608.4 | |||||||||||
TOTAL REVENUES | 3,235.4 | 2,987.3 | 6,314.2 | 5,904.2 | |||||||||||
EXPENSES: | |||||||||||||||
Costs of revenues: | |||||||||||||||
Operating expenses | 1,719.3 | 1,560.4 | 3,366.0 | 3,091.9 | |||||||||||
Systems development and programming costs | 158.1 | 152.5 | 315.1 | 307.4 | |||||||||||
Depreciation and amortization | 69.3 | 54.9 | 131.9 | 112.2 | |||||||||||
TOTAL COSTS OF REVENUES | 1,946.7 | 1,767.8 | 3,813.0 | 3,511.5 | |||||||||||
Selling, general, and administrative expenses | 717.2 | 640.8 | 1,379.6 | 1,288.6 | |||||||||||
Interest expense | 27.5 | 20.5 | 55.5 | 40.4 | |||||||||||
TOTAL EXPENSES | 2,691.4 | 2,429.1 | 5,248.1 | 4,840.5 | |||||||||||
Other income, net | (21.7 | ) | (228.0 | ) | (47.8 | ) | (251.1 | ) | |||||||
EARNINGS BEFORE INCOME TAXES | 565.7 | 786.2 | 1,113.9 | 1,314.8 | |||||||||||
Provision for income taxes | 98.2 | 275.3 | 244.9 | 435.2 | |||||||||||
NET EARNINGS | $ | 467.5 | $ | 510.9 | $ | 869.0 | $ | 879.6 | |||||||
BASIC EARNINGS PER SHARE | $ | 1.06 | $ | 1.14 | $ | 1.97 | $ | 1.95 | |||||||
DILUTED EARNINGS PER SHARE | $ | 1.05 | $ | 1.13 | $ | 1.96 | $ | 1.94 | |||||||
Basic weighted average shares outstanding | 441.3 | 447.9 | 441.8 | 450.1 | |||||||||||
Diluted weighted average shares outstanding | 443.7 | 450.3 | 444.4 | 452.7 | |||||||||||
Dividends declared per common share | $ | 0.630 | $ | 0.570 | $ | 1.200 | $ | 1.100 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net earnings | $ | 694.4 | $ | 647.5 | $ | 1,394.9 | $ | 1,249.6 | |||||||||||||||
Other comprehensive (loss)/income: | |||||||||||||||||||||||
Currency translation adjustments | (16.4) | 61.9 | (51.5) | 112.3 | |||||||||||||||||||
Unrealized net (losses)/gains on available-for-sale securities | (247.6) | (44.1) | (377.9) | (68.7) | |||||||||||||||||||
Tax effect | 56.4 | 10.0 | 85.7 | 15.5 | |||||||||||||||||||
Reclassification of net (gains)/losses on available-for-sale securities to net earnings | (0.4) | (7.7) | (0.5) | (8.0) | |||||||||||||||||||
Tax effect | 0.1 | 1.7 | 0.1 | 1.8 | |||||||||||||||||||
Unrealized (losses)/gains on cash flow hedging activities | — | — | — | (3.3) | |||||||||||||||||||
Tax effect | — | — | — | 0.8 | |||||||||||||||||||
Amortization of unrealized losses on cash flow hedging activities | 1.1 | 1.1 | 2.2 | 1.7 | |||||||||||||||||||
Tax effect | (0.3) | (0.4) | (0.6) | (0.4) | |||||||||||||||||||
Reclassification of pension liability adjustment to net earnings | 1.9 | 2.5 | 4.0 | 5.0 | |||||||||||||||||||
Tax effect | (0.3) | (0.6) | (0.5) | (1.6) | |||||||||||||||||||
Other comprehensive (loss)/income, net of tax | (205.5) | 24.4 | (339.0) | 55.1 | |||||||||||||||||||
Comprehensive income | $ | 488.9 | $ | 671.9 | $ | 1,055.9 | $ | 1,304.7 |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net earnings | $ | 467.5 | $ | 510.9 | $ | 869.0 | $ | 879.6 | |||||||
Other comprehensive income/loss: | |||||||||||||||
Currency translation adjustments | 4.1 | (55.0 | ) | 46.6 | (44.2 | ) | |||||||||
Unrealized net losses on available-for-sale securities | (147.3 | ) | (413.3 | ) | (160.2 | ) | (484.7 | ) | |||||||
Tax effect | 53.1 | 145.4 | 56.6 | 171.6 | |||||||||||
Reclassification of net losses/(gains) on available-for-sale securities to net earnings | 1.0 | (1.3 | ) | 1.1 | (1.4 | ) | |||||||||
Tax effect | (0.4 | ) | 0.6 | (0.4 | ) | 0.6 | |||||||||
Reclassification of pension liability adjustment to net earnings | 2.3 | 5.1 | 4.6 | 10.2 | |||||||||||
Tax effect | (0.8 | ) | (1.8 | ) | (1.7 | ) | (3.7 | ) | |||||||
Other comprehensive loss, net of tax | (88.0 | ) | (320.3 | ) | (53.4 | ) | (351.6 | ) | |||||||
Comprehensive income | $ | 379.5 | $ | 190.6 | $ | 815.6 | $ | 528.0 |
December 31, | June 30, | |||||||||||||
2021 | 2021 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 1,745.0 | $ | 2,575.2 | ||||||||||
Accounts receivable, net of allowance for doubtful accounts of $78.2 and $79.6, respectively | 2,736.0 | 2,727.4 | ||||||||||||
Other current assets | 735.9 | 533.4 | ||||||||||||
Total current assets before funds held for clients | 5,216.9 | 5,836.0 | ||||||||||||
Funds held for clients | 45,890.4 | 34,905.8 | ||||||||||||
Total current assets | 51,107.3 | 40,741.8 | ||||||||||||
Long-term receivables, net of allowance for doubtful accounts of $0.2 and $0.3, respectively | 9.4 | 11.5 | ||||||||||||
Property, plant and equipment, net | 644.5 | 684.5 | ||||||||||||
Operating lease right-of-use asset | 472.1 | 462.2 | ||||||||||||
Deferred contract costs | 2,448.1 | 2,498.2 | ||||||||||||
Other assets | 868.0 | 825.8 | ||||||||||||
Goodwill | 2,330.7 | 2,338.4 | ||||||||||||
Intangible assets, net | 1,222.5 | 1,210.1 | ||||||||||||
Total assets | $ | 59,102.6 | $ | 48,772.5 | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 103.5 | $ | 141.1 | ||||||||||
Accrued expenses and other current liabilities | 1,937.0 | 1,963.3 | ||||||||||||
Accrued payroll and payroll-related expenses | 590.1 | 910.2 | ||||||||||||
Dividends payable | 433.6 | 390.8 | ||||||||||||
Short-term deferred revenues | 189.4 | 203.9 | ||||||||||||
Obligations under reverse repurchase agreements (A) | — | 23.5 | ||||||||||||
Income taxes payable | 63.8 | 58.2 | ||||||||||||
Total current liabilities before client funds obligations | 3,317.4 | 3,691.0 | ||||||||||||
Client funds obligations | 45,766.6 | 34,403.8 | ||||||||||||
Total current liabilities | 49,084.0 | 38,094.8 | ||||||||||||
Long-term debt | 2,986.1 | 2,985.0 | ||||||||||||
Operating lease liabilities | 363.5 | 343.2 | ||||||||||||
Other liabilities | 843.6 | 834.1 | ||||||||||||
Deferred income taxes | 434.3 | 482.9 | ||||||||||||
Long-term deferred revenues | 341.5 | 362.4 | ||||||||||||
Total liabilities | 54,053.0 | 43,102.4 | ||||||||||||
Commitments and contingencies (Note 13) | 0 | 0 | ||||||||||||
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 December 31, 2021 and June 30, 2021; outstanding, 420.4 and 423.7 shares at December 31, 2021 and June 30, 2021, respectively | 63.9 | 63.9 | ||||||||||||
Capital in excess of par value | 1,664.7 | 1,531.3 | ||||||||||||
Retained earnings | 20,011.8 | 19,451.1 | ||||||||||||
Treasury stock - at cost: 218.3 and 215.0 shares at December 31, 2021 and June 30, 2021, respectively | (16,362.4) | (15,386.8) | ||||||||||||
Accumulated other comprehensive (loss) income | (328.4) | 10.6 | ||||||||||||
Total stockholders’ equity | 5,049.6 | 5,670.1 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 59,102.6 | $ | 48,772.5 |
December 31, | June 30, | |||||||
2017 | 2017 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,773.4 | $ | 2,780.4 | ||||
Accounts receivable, net of allowance for doubtful accounts of $52.8 and $49.6, respectively | 2,045.5 | 1,703.6 | ||||||
Other current assets | 1,079.8 | 883.2 | ||||||
Total current assets before funds held for clients | 4,898.7 | 5,367.2 | ||||||
Funds held for clients | 34,451.3 | 27,291.5 | ||||||
Total current assets | 39,350.0 | 32,658.7 | ||||||
Long-term receivables, net of allowance for doubtful accounts of $0.7 and $0.8, respectively | 27.4 | 28.0 | ||||||
Property, plant and equipment, net | 799.9 | 779.9 | ||||||
Other assets | 1,371.2 | 1,352.2 | ||||||
Goodwill | 2,164.3 | 1,741.0 | ||||||
Intangible assets, net | 832.7 | 620.2 | ||||||
Total assets | $ | 44,545.5 | $ | 37,180.0 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 136.8 | $ | 149.7 | ||||
Accrued expenses and other current liabilities | 1,583.9 | 1,381.9 | ||||||
Accrued payroll and payroll-related expenses | 496.6 | 562.5 | ||||||
Dividends payable | 275.2 | 250.5 | ||||||
Short-term deferred revenues | 227.5 | 232.9 | ||||||
Income taxes payable | 22.8 | 49.0 | ||||||
Total current liabilities before client funds obligations | 2,742.8 | 2,626.5 | ||||||
Client funds obligations | 34,508.1 | 27,189.4 | ||||||
Total current liabilities | 37,250.9 | 29,815.9 | ||||||
Long-term debt | 2,002.4 | 2,002.4 | ||||||
Other liabilities | 824.8 | 830.2 | ||||||
Deferred income taxes | 148.6 | 163.1 | ||||||
Long-term deferred revenues | 387.6 | 391.4 | ||||||
Total liabilities | 40,614.3 | 33,203.0 | ||||||
Commitments and contingencies (Note 14) | ||||||||
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 December 31, 2017 and June 30, 2017; outstanding, 442.7 and 445.0 shares at December 31, 2017 and June 30, 2017, respectively | 63.9 | 63.9 | ||||||
Capital in excess of par value | 903.5 | 867.8 | ||||||
Retained earnings | 15,060.1 | 14,728.2 | ||||||
Treasury stock - at cost: 196.0 and 193.7 shares at December 31, 2017 and June 30, 2017, respectively | (11,663.7 | ) | (11,303.7 | ) | ||||
Accumulated other comprehensive loss | (432.6 | ) | (379.2 | ) | ||||
Total stockholders’ equity | 3,931.2 | 3,977.0 | ||||||
Total liabilities and stockholders’ equity | $ | 44,545.5 | $ | 37,180.0 |
Six Months Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||
Net earnings | $ | 1,394.9 | $ | 1,249.6 | |||||||||||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 255.6 | 257.8 | |||||||||||||||
Amortization of deferred contract costs | 474.9 | 464.9 | |||||||||||||||
Deferred income taxes | 46.4 | 1.3 | |||||||||||||||
Stock-based compensation expense | 97.9 | 80.9 | |||||||||||||||
Net pension income | (31.6) | (22.0) | |||||||||||||||
Net amortization of premiums and accretion of discounts on available-for-sale securities | 48.5 | 28.7 | |||||||||||||||
Other | 6.8 | 5.6 | |||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Increase in accounts receivable | (26.0) | (86.5) | |||||||||||||||
Increase in other assets | (668.6) | (643.3) | |||||||||||||||
(Decrease)/Increase in accounts payable | (19.9) | 10.2 | |||||||||||||||
Decrease in accrued expenses and other liabilities | (363.3) | (158.9) | |||||||||||||||
Net cash flows provided by operating activities | 1,215.6 | 1,188.3 | |||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||
Purchases of corporate and client funds marketable securities | (5,223.3) | (3,554.8) | |||||||||||||||
Proceeds from the sales and maturities of corporate and client funds marketable securities | 1,996.9 | 2,832.5 | |||||||||||||||
Capital expenditures | (75.8) | (81.0) | |||||||||||||||
Additions to intangibles | (180.7) | (148.1) | |||||||||||||||
Acquisitions of businesses, net of cash acquired | (11.7) | — | |||||||||||||||
Proceeds from sale of property, plant, and equipment and other assets | 26.2 | 1.8 | |||||||||||||||
Net cash flows used in investing activities | (3,468.4) | (949.6) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||
Net increase in client funds obligations | 11,415.8 | 10,036.4 | |||||||||||||||
Payments of debt | (0.5) | (1,001.1) | |||||||||||||||
Proceeds from the issuance of debt | — | 991.1 | |||||||||||||||
Settlement of cash flow hedges | — | (43.6) | |||||||||||||||
Repurchases of common stock | (990.5) | (475.1) | |||||||||||||||
Net proceeds from stock purchase plan and stock-based compensation plans | 50.4 | 39.1 | |||||||||||||||
Dividends paid | (787.0) | (781.7) | |||||||||||||||
Net payments related to reverse repurchase agreements | (23.5) | (13.6) | |||||||||||||||
Net cash flows provided by financing activities | 9,664.7 | 8,751.5 | |||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (20.9) | 84.7 | |||||||||||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | 7,391.0 | 9,074.9 | |||||||||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 13,143.2 | 7,053.6 | |||||||||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ | 20,534.2 | $ | 16,128.5 | |||||||||||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets | |||||||||||||||||
Cash and cash equivalents | $ | 1,745.0 | $ | 1,602.2 | |||||||||||||
Restricted cash and restricted cash equivalents included in funds held for clients (A) | 18,789.2 | 14,526.3 | |||||||||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 20,534.2 | $ | 16,128.5 | |||||||||||||
Supplemental disclosures of cash flow information: | |||||||||||||||||
Cash paid for interest | $ | 33.1 | $ | 28.1 | |||||||||||||
Cash paid for income taxes, net of income tax refunds | $ | 365.7 | $ | 362.7 | |||||||||||||
Six Months Ended | ||||||||
December 31, | ||||||||
2017 | 2016 *As Adjusted | |||||||
Cash Flows from Operating Activities: | ||||||||
Net earnings | $ | 869.0 | $ | 879.6 | ||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | ||||||||
Depreciation and amortization | 182.0 | 156.0 | ||||||
Deferred income taxes | 7.3 | 27.7 | ||||||
Stock-based compensation expense | 77.7 | 66.9 | ||||||
Net pension expense | 5.5 | 12.1 | ||||||
Net amortization of premiums and accretion of discounts on available-for-sale securities | 37.9 | 45.5 | ||||||
Gain on sale of divested businesses, net of tax | — | (121.4 | ) | |||||
Other | 14.8 | 13.6 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses: | ||||||||
Increase in accounts receivable | (337.1 | ) | (119.7 | ) | ||||
Increase in other assets | (244.7 | ) | (144.1 | ) | ||||
Decrease in accounts payable | (2.7 | ) | (16.1 | ) | ||||
Increase in accrued expenses and other liabilities | 65.4 | 41.0 | ||||||
Net cash flows provided by operating activities | 675.1 | 841.1 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of corporate and client funds marketable securities | (2,454.2 | ) | (2,359.5 | ) | ||||
Proceeds from the sales and maturities of corporate and client funds marketable securities | 1,866.0 | 1,878.0 | ||||||
Capital expenditures | (118.3 | ) | (119.7 | ) | ||||
Additions to intangibles | (132.4 | ) | (106.6 | ) | ||||
Acquisitions of businesses, net of cash acquired | (487.4 | ) | (20.0 | ) | ||||
Proceeds from the sale of divested businesses | — | 234.0 | ||||||
Net cash flows used in investing activities | (1,326.3 | ) | (493.8 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Net increase / (decrease) in client funds obligations | 7,207.1 | (2,799.9 | ) | |||||
Payments of debt | (6.3 | ) | (1.0 | ) | ||||
Repurchases of common stock | (408.3 | ) | (765.3 | ) | ||||
Net proceeds from stock purchase plan and stock-based compensation plans | (5.5 | ) | 19.2 | |||||
Dividends paid | (506.7 | ) | (482.3 | ) | ||||
Net cash flows provided by / (used in) financing activities | 6,280.3 | (4,029.3 | ) | |||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 49.1 | (55.1 | ) | |||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | 5,678.2 | (3,737.1 | ) | |||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 8,181.6 | 15,458.6 | ||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ | 13,859.8 | $ | 11,721.5 | ||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets | ||||||||
Cash and cash equivalents | $ | 1,773.4 | $ | 2,705.2 | ||||
Restricted cash and restricted cash equivalents included in funds held for clients (A) | 12,086.4 | 9,016.3 | ||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 13,859.8 | $ | 11,721.5 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 54.3 | $ | 39.2 | ||||
Cash paid for income taxes, net of income tax refunds | $ | 389.2 | $ | 332.6 |
Six Months Ended | |||||||||||
December 31, 2016 (unaudited) | |||||||||||
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 | $ | 3,213.0 | $ | (3,213.0 | ) | $ | — | ||||
Net cash flows provided by / (used in) investing activities | 2,719.2 | (3,213.0 | ) | (493.8 | ) | ||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (16.9 | ) | (38.2 | ) | (55.1 | ) | |||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | (485.9 | ) | (3,251.2 | ) | (3,737.1 | ) | |||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ | 2,705.2 | $ | 9,016.3 | $ | 11,721.5 |
Goodwill | $ | 404.3 | |
Identifiable intangible assets | 132.2 | ||
Other assets | 3.2 | ||
Total assets acquired | $ | 539.7 | |
Total liabilities acquired | $ | 48.7 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
Types of Revenues | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
HCM | $ | 1,743.8 | $ | 1,630.8 | $ | 3,410.4 | $ | 3,167.8 | |||||||||||||||
HRO, excluding PEO zero-margin benefits pass-throughs | 758.7 | 667.8 | 1,438.0 | 1,249.1 | |||||||||||||||||||
PEO zero-margin benefits pass-throughs | 863.9 | 765.9 | 1,703.4 | 1,507.0 | |||||||||||||||||||
Global | 553.0 | 525.8 | 1,098.8 | 1,030.7 | |||||||||||||||||||
Interest on funds held for clients | 106.0 | 105.4 | 207.1 | 211.9 | |||||||||||||||||||
Total Revenues | $ | 4,025.4 | $ | 3,695.7 | $ | 7,857.7 | $ | 7,166.5 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||||||||||
HCM | $ | 1,745.7 | $ | — | $ | (1.9) | $ | 1,743.8 | |||||||||||||||
HRO, excluding PEO zero-margin benefits pass-throughs | 267.8 | 493.7 | (2.8) | 758.7 | |||||||||||||||||||
PEO zero-margin benefits pass-throughs | — | 863.9 | — | 863.9 | |||||||||||||||||||
Global | 553.0 | 0 | — | 553.0 | |||||||||||||||||||
Interest on funds held for clients | 104.8 | 1.2 | — | 106.0 | |||||||||||||||||||
Total Segment Revenues | $ | 2,671.3 | $ | 1,358.8 | $ | (4.7) | $ | 4,025.4 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||||||||||
HCM | $ | 1,631.2 | $ | — | $ | (0.4) | $ | 1,630.8 | |||||||||||||||
HRO, excluding PEO zero-margin benefits pass-throughs | 249.2 | 419.2 | (0.6) | 667.8 | |||||||||||||||||||
PEO zero-margin benefits pass-throughs | — | 765.9 | — | 765.9 | |||||||||||||||||||
Global | 525.8 | — | — | 525.8 | |||||||||||||||||||
Interest on funds held for clients | 104.4 | 1.0 | — | 105.4 | |||||||||||||||||||
Total Segment Revenues | $ | 2,510.6 | $ | 1,186.1 | $ | (1.0) | $ | 3,695.7 |
Three Months Ended | Six Months Ended | Cumulative amount from inception through | |||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | |||||||||||||||
Employee separation benefits (a) | $ | 2.3 | $ | — | $ | (2.9 | ) | $ | 37.3 | $ | 81.2 | ||||||||
Other initiative costs (b) | 1.0 | 1.2 | 2.9 | 3.8 | 8.8 | ||||||||||||||
Total (c) | $ | 3.3 | $ | 1.2 | $ | — | $ | 41.1 | $ | 90.0 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||||||||||
HCM | $ | 3,414.7 | $ | — | $ | (4.3) | $ | 3,410.4 | |||||||||||||||
HRO, excluding PEO zero-margin benefits pass-throughs | 524.1 | 917.6 | (3.7) | 1,438.0 | |||||||||||||||||||
PEO zero-margin benefits pass-throughs | — | 1,703.4 | — | 1,703.4 | |||||||||||||||||||
Global | 1,098.8 | — | — | 1,098.8 | |||||||||||||||||||
Interest on funds held for clients | 205.2 | 1.9 | — | 207.1 | |||||||||||||||||||
Total Segment Revenues | $ | 5,242.8 | $ | 2,622.9 | $ | (8.0) | $ | 7,857.7 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||||||||||
HCM | $ | 3,169.8 | $ | — | $ | (2.0) | $ | 3,167.8 | |||||||||||||||
HRO, excluding PEO zero-margin benefits pass-throughs | 477.3 | 772.7 | (0.9) | 1,249.1 | |||||||||||||||||||
PEO zero-margin benefits pass-throughs | — | 1,507.0 | — | 1,507.0 | |||||||||||||||||||
Global | 1,030.7 | — | — | 1,030.7 | |||||||||||||||||||
Interest on funds held for clients | 209.6 | 2.3 | — | 211.9 | |||||||||||||||||||
Total Segment Revenues | $ | 4,887.4 | $ | 2,282.0 | $ | (2.9) | $ | 7,166.5 |
Contract Liability | |||||
Contract liability, July 1, 2021 | $ | 516.1 | |||
Recognition of revenue included in beginning of year contract liability | (79.1) | ||||
Contract liability, net of revenue recognized on contracts during the period | 61.9 | ||||
Currency translation adjustments | (21.9) | ||||
Contract liability, December 31, 2021 | $ | 477.0 |
Employee separation benefits | Other initiative costs | Total | |||||||||
Balance at June 30, 2017 | $ | 73.9 | $ | 0.5 | $ | 74.4 | |||||
Charged to expense | 7.9 | 2.9 | 10.8 | ||||||||
Reversals | (10.8 | ) | — | (10.8 | ) | ||||||
Cash payments | (18.0 | ) | (2.2 | ) | (20.2 | ) | |||||
Non-cash utilization | — | (0.6 | ) | (0.6 | ) | ||||||
Balance at December 31, 2017 | $ | 53.0 | $ | 0.6 | $ | 53.6 |
Basic | Effect of Employee Stock Option Shares | Effect of Employee Restricted Stock Shares | Diluted | |||||||||||||||||||||||
Three Months Ended December 31, 2021 | ||||||||||||||||||||||||||
Net earnings | $ | 694.4 | $ | 694.4 | ||||||||||||||||||||||
Weighted average shares (in millions) | 419.8 | 1.2 | 1.0 | 422.0 | ||||||||||||||||||||||
EPS | $ | 1.65 | $ | 1.65 | ||||||||||||||||||||||
Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||
Net earnings | $ | 647.5 | $ | 647.5 | ||||||||||||||||||||||
Weighted average shares (in millions) | 427.4 | 0.7 | 0.9 | 429.0 | ||||||||||||||||||||||
EPS | $ | 1.51 | $ | 1.51 | ||||||||||||||||||||||
Six Months Ended December 31, 2021 | ||||||||||||||||||||||||||
Net earnings | $ | 1,394.9 | $ | 1,394.9 | ||||||||||||||||||||||
Weighted average shares (in millions) | 420.6 | 1.2 | 1.1 | 422.9 | ||||||||||||||||||||||
EPS | $ | 3.32 | $ | 3.30 | ||||||||||||||||||||||
Six Months Ended December 31, 2020 | ||||||||||||||||||||||||||
Net earnings | $ | 1,249.6 | $ | 1,249.6 | ||||||||||||||||||||||
Weighted average shares (in millions) | 428.0 | 0.7 | 0.8 | 429.5 | ||||||||||||||||||||||
EPS | $ | 2.92 | $ | 2.91 |
Basic | Effect of Employee Stock Option Shares | Effect of Employee Restricted Stock Shares | Diluted | |||||||||||
Three Months Ended December 31, 2017 | ||||||||||||||
Net earnings | $ | 467.5 | $ | 467.5 | ||||||||||
Weighted average shares (in millions) | 441.3 | 1.2 | 1.2 | 443.7 | ||||||||||
EPS | $ | 1.06 | $ | 1.05 | ||||||||||
Three Months Ended December 31, 2016 | ||||||||||||||
Net earnings | $ | 510.9 | $ | 510.9 | ||||||||||
Weighted average shares (in millions) | 447.9 | 1.1 | 1.3 | 450.3 | ||||||||||
EPS | $ | 1.14 | $ | 1.13 | ||||||||||
Six Months Ended December 31, 2017 | ||||||||||||||
Net earnings | $ | 869.0 | $ | 869.0 | ||||||||||
Weighted average shares (in millions) | 441.8 | 1.1 | 1.5 | 444.4 | ||||||||||
EPS | $ | 1.97 | $ | 1.96 | ||||||||||
Six Months Ended December 31, 2016 | ||||||||||||||
Net earnings | $ | 879.6 | $ | 879.6 | ||||||||||
Weighted average shares (in millions) | 450.1 | 1.1 | 1.5 | 452.7 | ||||||||||
EPS | $ | 1.95 | $ | 1.94 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Interest income on corporate funds | $ | (8.5) | $ | (10.4) | $ | (18.2) | $ | (24.3) | |||||||||||||||
Realized (gains)/losses on available-for-sale securities, net | (0.4) | (7.7) | (0.5) | (8.0) | |||||||||||||||||||
Impairment of assets | — | 2.2 | — | 5.0 | |||||||||||||||||||
Gain on sale of assets | — | (1.6) | (1.3) | (1.8) | |||||||||||||||||||
Non-service components of pension income, net (see Note 11) | (17.7) | (11.5) | (35.4) | (24.9) | |||||||||||||||||||
Other (income)/expense, net | $ | (26.6) | $ | (29.0) | $ | (55.4) | $ | (54.0) |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest income on corporate funds | $ | (22.7 | ) | $ | (21.3 | ) | $ | (48.5 | ) | $ | (44.3 | ) | |||
Realized gains on available-for-sale securities | (0.2 | ) | (2.0 | ) | (0.5 | ) | (2.5 | ) | |||||||
Realized losses on available-for-sale securities | 1.2 | 0.7 | 1.6 | 1.1 | |||||||||||
Gain on sale of assets | — | — | (0.4 | ) | — | ||||||||||
Gain on sale of businesses (see Note 4) | — | (205.4 | ) | — | (205.4 | ) | |||||||||
Other income, net | $ | (21.7 | ) | $ | (228.0 | ) | $ | (47.8 | ) | $ | (251.1 | ) |
December 31, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value (A) | ||||||||||||
Type of issue: | |||||||||||||||
Money market securities, cash and other cash equivalents | $ | 13,859.8 | $ | — | $ | — | $ | 13,859.8 | |||||||
Available-for-sale securities: | |||||||||||||||
Corporate bonds | 9,435.9 | 57.7 | (39.7 | ) | 9,453.9 | ||||||||||
Asset-backed securities | 4,445.0 | 4.7 | (22.0 | ) | 4,427.7 | ||||||||||
U.S. government agency securities | 2,913.6 | 10.6 | (22.8 | ) | 2,901.4 | ||||||||||
U.S. Treasury securities | 2,481.4 | 1.0 | (38.6 | ) | 2,443.8 | ||||||||||
Canadian government obligations and Canadian government agency obligations | 1,148.3 | 0.9 | (20.1 | ) | 1,129.1 | ||||||||||
Canadian provincial bonds | 760.8 | 8.3 | (3.3 | ) | 765.8 | ||||||||||
Municipal bonds | 586.0 | 6.3 | (2.0 | ) | 590.3 | ||||||||||
Other securities | 661.2 | 5.0 | (2.7 | ) | 663.5 | ||||||||||
Total available-for-sale securities | 22,432.2 | 94.5 | (151.2 | ) | 22,375.5 | ||||||||||
Total corporate investments and funds held for clients | $ | 36,292.0 | $ | 94.5 | $ | (151.2 | ) | $ | 36,235.3 |
December 31, 2021 | |||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value (A) | ||||||||||||||||||||||||||
Type of issue: | |||||||||||||||||||||||||||||
Money market securities, cash and other cash equivalents | $ | 20,534.2 | $ | — | $ | — | $ | 20,534.2 | |||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Corporate bonds | 14,339.0 | 200.1 | (129.7) | 14,409.4 | |||||||||||||||||||||||||
U.S. Treasury securities | 4,093.2 | 34.8 | (32.7) | 4,095.3 | |||||||||||||||||||||||||
Asset-backed securities | 2,160.4 | 33.0 | (6.8) | 2,186.6 | |||||||||||||||||||||||||
Canadian government obligations and Canadian government agency obligations | 1,822.0 | 8.5 | (19.5) | 1,811.0 | |||||||||||||||||||||||||
U.S. government agency securities | 1,588.4 | 12.6 | (20.7) | 1,580.3 | |||||||||||||||||||||||||
Canadian provincial bonds | 938.0 | 14.0 | (9.4) | 942.6 | |||||||||||||||||||||||||
Commercial mortgage-backed securities | 817.5 | 26.8 | (1.7) | 842.6 | |||||||||||||||||||||||||
Other securities | 1,238.6 | 23.6 | (9.1) | 1,253.1 | |||||||||||||||||||||||||
Total available-for-sale securities | 26,997.1 | 353.4 | (229.6) | 27,120.9 | |||||||||||||||||||||||||
Total corporate investments and funds held for clients | $ | 47,531.3 | $ | 353.4 | $ | (229.6) | $ | 47,655.1 |
June 30, 2017 | June 30, 2021 | |||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value (B) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value (B) | |||||||||||||||||||||||||||||||
Type of issue: | Type of issue: | |||||||||||||||||||||||||||||||||||||
Money market securities, cash and other cash equivalents | $ | 8,181.6 | $ | — | $ | — | $ | 8,181.6 | Money market securities, cash and other cash equivalents | $ | 13,143.2 | $ | — | $ | — | $ | 13,143.2 | |||||||||||||||||||||
Available-for-sale securities: | Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||
Corporate bonds | 9,325.3 | 98.8 | (22.0 | ) | 9,402.1 | Corporate bonds | 11,732.3 | 321.9 | (38.5) | 12,015.7 | ||||||||||||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | 4,036.9 | 64.8 | (9.3) | 4,092.4 | |||||||||||||||||||||||||||||||||
Asset-backed securities | 4,453.1 | 16.9 | (8.6 | ) | 4,461.4 | Asset-backed securities | 2,279.8 | 60.9 | (0.9) | 2,339.8 | ||||||||||||||||||||||||||||
Canadian government obligations and Canadian government agency obligations | Canadian government obligations and Canadian government agency obligations | 1,542.3 | 15.0 | (9.0) | 1,548.3 | |||||||||||||||||||||||||||||||||
U.S. government agency securities | 3,557.7 | 22.2 | (13.4 | ) | 3,566.5 | U.S. government agency securities | 1,446.3 | 22.5 | (9.4) | 1,459.4 | ||||||||||||||||||||||||||||
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 | Canadian provincial bonds | 956.3 | 22.7 | (5.3) | 973.7 | ||||||||||||||||||||||||||||
Municipal bonds | 582.5 | 11.3 | (1.3 | ) | 592.5 | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | Commercial mortgage-backed securities | 793.4 | 41.2 | — | 834.6 | |||||||||||||||||||||||||||||||||
Other securities | 493.6 | 7.3 | (1.4 | ) | 499.5 | Other securities | 1,082.2 | 30.9 | (5.3) | 1,107.8 | ||||||||||||||||||||||||||||
Total available-for-sale securities | 21,798.6 | 176.3 | (73.8 | ) | 21,901.1 | Total available-for-sale securities | 23,869.5 | 579.9 | (77.7) | 24,371.7 | ||||||||||||||||||||||||||||
Total corporate investments and funds held for clients | $ | 29,980.2 | $ | 176.3 | $ | (73.8 | ) | $ | 30,082.7 | Total corporate investments and funds held for clients | $ | 37,012.7 | $ | 579.9 | $ | (77.7) | $ | 37,514.9 |
December 31, 2021 | |||||||||||||||||||||||||||||||||||
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 | $ | (120.7) | $ | 7,113.9 | $ | (9.0) | $ | 258.6 | $ | (129.7) | $ | 7,372.5 | |||||||||||||||||||||||
U.S. Treasury securities | (32.5) | 1,659.3 | (0.2) | 4.4 | (32.7) | 1,663.7 | |||||||||||||||||||||||||||||
Asset-backed securities | (6.7) | 409.0 | (0.1) | 3.1 | (6.8) | 412.1 | |||||||||||||||||||||||||||||
Canadian government obligations and Canadian government agency obligations | (17.3) | 1,100.3 | (2.2) | 69.5 | (19.5) | 1,169.8 | |||||||||||||||||||||||||||||
U.S. government agency securities | (11.2) | 681.6 | (9.5) | 339.9 | (20.7) | 1,021.5 | |||||||||||||||||||||||||||||
Canadian provincial bonds | (7.9) | 335.2 | (1.5) | 44.2 | (9.4) | 379.4 | |||||||||||||||||||||||||||||
Commercial mortgage-backed securities | (1.7) | 115.8 | — | — | (1.7) | 115.8 | |||||||||||||||||||||||||||||
Other securities | (8.1) | 468.9 | (1.0) | 21.5 | (9.1) | 490.4 | |||||||||||||||||||||||||||||
$ | (206.1) | $ | 11,884.0 | $ | (23.5) | $ | 741.2 | $ | (229.6) | $ | 12,625.2 |
December 31, 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 | $ | (18.3 | ) | $ | 3,437.6 | $ | (21.4 | ) | $ | 1,186.2 | $ | (39.7 | ) | $ | 4,623.8 | ||||||||
Asset-backed securities | (10.8 | ) | 2,463.5 | (11.2 | ) | 1,065.1 | (22.0 | ) | 3,528.6 | ||||||||||||||
U.S. government agency securities | (9.6 | ) | 1,390.0 | (13.2 | ) | 656.1 | (22.8 | ) | 2,046.1 | ||||||||||||||
U.S. Treasury securities | (17.1 | ) | 1,412.9 | (21.5 | ) | 982.1 | (38.6 | ) | 2,395.0 | ||||||||||||||
Canadian government obligations and Canadian government agency obligations | (20.1 | ) | 895.3 | — | — | (20.1 | ) | 895.3 | |||||||||||||||
Canadian provincial bonds | (2.7 | ) | 315.1 | (0.6 | ) | 55.4 | (3.3 | ) | 370.5 | ||||||||||||||
Municipal bonds | (1.4 | ) | 189.2 | (0.6 | ) | 17.8 | (2.0 | ) | 207.0 | ||||||||||||||
Other securities | (1.9 | ) | 269.2 | (0.8 | ) | 41.6 | (2.7 | ) | 310.8 | ||||||||||||||
$ | (81.9 | ) | $ | 10,372.8 | $ | (69.3 | ) | $ | 4,004.3 | $ | (151.2 | ) | $ | 14,377.1 |
June 30, 2021 | |||||||||||||||||||||||||||||||||||
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 | $ | (38.5) | $ | 3,539.6 | $ | — | $ | — | $ | (38.5) | $ | 3,539.6 | |||||||||||||||||||||||
U.S. Treasury securities | (9.3) | 580.9 | — | — | (9.3) | 580.9 | |||||||||||||||||||||||||||||
Asset-backed securities | (0.9) | 160.9 | — | — | (0.9) | 160.9 | |||||||||||||||||||||||||||||
Canadian government obligations and Canadian government agency obligations | (9.0) | 721.3 | — | — | (9.0) | 721.3 | |||||||||||||||||||||||||||||
U.S. government agency securities | (9.4) | 749.7 | — | — | (9.4) | 749.7 | |||||||||||||||||||||||||||||
Canadian provincial bonds | (5.3) | 253.7 | — | — | (5.3) | 253.7 | |||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 16.7 | — | — | — | 16.7 | |||||||||||||||||||||||||||||
Other securities | (5.2) | 308.5 | (0.1) | 1.9 | (5.3) | 310.4 | |||||||||||||||||||||||||||||
$ | (77.6) | $ | 6,331.3 | $ | (0.1) | $ | 1.9 | $ | (77.7) | $ | 6,333.2 |
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 |
December 31, | June 30, | |||||||
2017 | 2017 | |||||||
Corporate investments: | ||||||||
Cash and cash equivalents | $ | 1,773.4 | $ | 2,780.4 | ||||
Short-term marketable securities (a) | 3.2 | 3.2 | ||||||
Long-term marketable securities (b) | 7.4 | 7.6 | ||||||
Total corporate investments | $ | 1,784.0 | $ | 2,791.2 |
December 31, | June 30, | |||||||||||||
2021 | 2021 | |||||||||||||
Corporate investments: | ||||||||||||||
Cash and cash equivalents | $ | 1,745.0 | $ | 2,575.2 | ||||||||||
Short-term marketable securities (a) | 19.7 | 10.4 | ||||||||||||
Long-term marketable securities (b) | — | 23.5 | ||||||||||||
Total corporate investments | $ | 1,764.7 | $ | 2,609.1 |
December 31, | June 30, | |||||||||||||
2021 | 2021 | |||||||||||||
Funds held for clients: | ||||||||||||||
Restricted cash and cash equivalents held to satisfy client funds obligations | $ | 18,789.2 | $ | 10,568.0 | ||||||||||
Restricted short-term marketable securities held to satisfy client funds obligations | 4,349.4 | 3,743.3 | ||||||||||||
Restricted long-term marketable securities held to satisfy client funds obligations | 22,751.8 | 20,594.5 | ||||||||||||
Total funds held for clients | $ | 45,890.4 | $ | 34,905.8 |
December 31, | June 30, | |||||||
2017 | 2017 | |||||||
Funds held for clients: | ||||||||
Restricted cash and cash equivalents held to satisfy client funds obligations | $ | 12,086.4 | $ | 5,401.2 | ||||
Restricted short-term marketable securities held to satisfy client funds obligations | 2,285.3 | 2,918.5 | ||||||
Restricted long-term marketable securities held to satisfy client funds obligations | 20,079.6 | 18,971.8 | ||||||
Total funds held for clients | $ | 34,451.3 | $ | 27,291.5 |
One year or less | $ | 4,369.1 | |||
One year to two years | 3,331.9 | ||||
Two years to three years | 2,834.6 | ||||
Three years to four years | 5,597.8 | ||||
After four years | 10,987.5 | ||||
Total available-for-sale securities | $ | 27,120.9 |
One year or less | $ | 2,288.5 | |
One year to two years | 4,112.2 | ||
Two years to three years | 5,290.8 | ||
Three years to four years | 4,556.3 | ||
After four years | 6,127.7 | ||
Total available-for-sale securities | $ | 22,375.5 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Operating lease cost | $ | 36.7 | $ | 40.0 | $ | 72.5 | $ | 79.1 | |||||||||||||||
Short-term lease cost | 0.2 | 0.3 | 0.5 | 0.7 | |||||||||||||||||||
Variable lease cost | 2.9 | 2.2 | 5.4 | 4.3 | |||||||||||||||||||
Total operating lease cost | $ | 39.8 | $ | 42.5 | $ | 78.4 | $ | 84.1 | |||||||||||||||
Six Months Ended | |||||||||||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash paid for operating lease liabilities | $ | 64.5 | $ | 77.0 | |||||||
Operating lease ROU assets obtained in exchange for new operating lease liabilities | $ | 61.1 | $ | 72.0 | |||||||
December 31, | June 30, | ||||||||||
2021 | 2021 | ||||||||||
Weighted-average remaining lease term (in years) | 6 | 6 | |||||||||
Weighted-average discount rate | 2.1 | % | 2.2 | % | |||||||
Current operating lease liability | $ | 99.6 | $ | 94.7 |
Six months ending June 30, 2022 | $ | 54.3 | |||
Twelve months ending June 30, 2023 | 101.2 | ||||
Twelve months ending June 30, 2024 | 79.7 | ||||
Twelve months ending June 30, 2025 | 64.0 | ||||
Twelve months ending June 30, 2026 | 56.3 | ||||
Thereafter | 137.3 | ||||
Total undiscounted lease obligations | 492.8 | ||||
Less: Imputed interest | (29.7) | ||||
Net lease obligations | $ | 463.1 |
Employer Services | PEO Services | Total | |||||||||||||||||||||
Balance at June 30, 2021 | $ | 2,333.6 | $ | 4.8 | $ | 2,338.4 | |||||||||||||||||
Additions and other adjustments | 11.5 | — | 11.5 | ||||||||||||||||||||
Currency translation adjustments | (19.2) | — | (19.2) | ||||||||||||||||||||
Balance at December 31, 2021 | $ | 2,325.9 | $ | 4.8 | $ | 2,330.7 |
Employer Services | PEO Services | Total | |||||||||
Balance at June 30, 2017 | $ | 1,736.2 | $ | 4.8 | $ | 1,741.0 | |||||
Additions and other adjustments, net | 403.8 | — | 403.8 | ||||||||
Currency translation adjustments | 19.5 | — | 19.5 | ||||||||
Balance at December 31, 2017 | $ | 2,159.5 | $ | 4.8 | $ | 2,164.3 |
December 31, | June 30, | |||||||||||||
2021 | 2021 | |||||||||||||
Intangible assets: | ||||||||||||||
Software and software licenses | $ | 3,075.1 | $ | 2,950.8 | ||||||||||
Customer contracts and lists | 1,090.4 | 1,062.2 | ||||||||||||
Other intangibles | 241.0 | 239.0 | ||||||||||||
4,406.5 | 4,252.0 | |||||||||||||
Less accumulated amortization: | ||||||||||||||
Software and software licenses | (2,185.9) | (2,090.4) | ||||||||||||
Customer contracts and lists | (766.9) | (723.4) | ||||||||||||
Other intangibles | (231.2) | (228.1) | ||||||||||||
(3,184.0) | (3,041.9) | |||||||||||||
Intangible assets, net | $ | 1,222.5 | $ | 1,210.1 |
December 31, | June 30, | |||||||
2017 | 2017 | |||||||
Intangible assets: | ||||||||
Software and software licenses | $ | 2,187.6 | $ | 1,975.2 | ||||
Customer contracts and lists | 703.2 | 614.1 | ||||||
Other intangibles | 234.1 | 228.2 | ||||||
3,124.9 | 2,817.5 | |||||||
Less accumulated amortization: | ||||||||
Software and software licenses | (1,559.9 | ) | (1,483.7 | ) | ||||
Customer contracts and lists | (522.1 | ) | (506.0 | ) | ||||
Other intangibles | (210.2 | ) | (207.6 | ) | ||||
(2,292.2 | ) | (2,197.3 | ) | |||||
Intangible assets, net | $ | 832.7 | $ | 620.2 |
Amount | |||||
Six months ending June 30, 2022 | $ | 168.1 | |||
Twelve months ending June 30, 2023 | $ | 284.0 | |||
Twelve months ending June 30, 2024 | $ | 232.7 | |||
Twelve months ending June 30, 2025 | $ | 164.4 | |||
Twelve months ending June 30, 2026 | $ | 108.9 | |||
Twelve months ending June 30, 2027 | $ | 83.2 |
Amount | |||
Six months ending June 30, 2018 | $ | 98.9 | |
Twelve months ending June 30, 2019 | $ | 206.9 | |
Twelve months ending June 30, 2020 | $ | 178.3 | |
Twelve months ending June 30, 2021 | $ | 130.0 | |
Twelve months ending June 30, 2022 | $ | 96.9 | |
Twelve months ending June 30, 2023 | $ | 58.5 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Average daily borrowings (in billions) | $ | 1.9 | $ | 1.8 | $ | 1.9 | $ | 2.1 | |||||||||||||||
Weighted average interest rates | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||||||||
Weighted average maturity (approximately in days) | 1 day | 1 day | 1 day | 1 day |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Average outstanding balances | $ | 228.4 | $ | 83.2 | $ | 211.7 | $ | 117.8 | |||||||||||||||
Weighted average interest rates | 0.2 | % | 0.3 | % | 0.2 | % | 0.3 | % |
Debt instrument | Effective Interest Rate | December 31, 2021 | June 30, 2021 | |||||||||||||||||
Fixed-rate 3.375% notes due September 15, 2025 | 3.47% | $ | 1,000.0 | $ | 1,000.0 | |||||||||||||||
Fixed-rate 1.250% notes due September 1, 2030 | 1.83% | 1,000.0 | 1,000.0 | |||||||||||||||||
Fixed-rate 1.700% notes due May 15, 2028 | 1.85% | 1,000.0 | 1,000.0 | |||||||||||||||||
Other | 6.4 | 6.9 | ||||||||||||||||||
3,006.4 | 3,006.9 | |||||||||||||||||||
Less: current portion (a) | (1.1) | (1.2) | ||||||||||||||||||
Less: unamortized discount and debt issuance costs | (19.2) | (20.7) | ||||||||||||||||||
Total long-term debt | $ | 2,986.1 | $ | 2,985.0 |
Debt instrument | Effective Interest Rate | December 31, 2017 | 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 | 14.0 | 20.3 | ||||||||
2,014.0 | 2,020.3 | |||||||||
Less: current portion | (2.5 | ) | (7.8 | ) | ||||||
Less: unamortized discount and debt issuance costs | (9.1 | ) | (10.1 | ) | ||||||
Total long-term debt | $ | 2,002.4 | $ | 2,002.4 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Operating expenses | $ | 5.2 | $ | 4.8 | $ | 9.9 | $ | 8.4 | |||||||||||||||
Selling, general and administrative expenses | 42.7 | 35.6 | 74.1 | 60.9 | |||||||||||||||||||
System development and programming costs | 7.7 | 6.7 | 13.9 | 11.6 | |||||||||||||||||||
Total stock-based compensation expense | $ | 55.6 | $ | 47.1 | $ | 97.9 | $ | 80.9 | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating expenses | $ | 5.4 | $ | 6.3 | $ | 10.6 | $ | 11.8 | |||||||
Selling, general and administrative expenses | 27.5 | 24.3 | 56.1 | 45.9 | |||||||||||
System development and programming costs | 5.8 | 5.2 | 11.0 | 9.2 | |||||||||||
Total stock-based compensation expense | $ | 38.7 | $ | 35.8 | $ | 77.7 | $ | 66.9 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
Service cost – benefits earned during the period | $ | 1.4 | $ | 1.2 | $ | 2.8 | $ | 2.4 | |||||||||||||||||||||||||||
Interest cost on projected benefits | 13.1 | 12.8 | 26.2 | 25.5 | |||||||||||||||||||||||||||||||
Expected return on plan assets | (32.0) | (30.4) | (64.0) | (60.7) | |||||||||||||||||||||||||||||||
Net amortization and deferral | 1.7 | 2.5 | 3.4 | 5.0 | |||||||||||||||||||||||||||||||
Settlement charges and special termination benefits | — | 2.9 | — | 5.8 | |||||||||||||||||||||||||||||||
Net pension (income)/expense | $ | (15.8) | $ | (11.0) | $ | (31.6) | $ | (22.0) |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Service cost – benefits earned during the period | $ | 18.6 | $ | 20.2 | $ | 37.3 | $ | 40.4 | ||||||||
Interest cost on projected benefits | 16.3 | 14.9 | 32.6 | 30.0 | ||||||||||||
Expected return on plan assets | (34.3 | ) | (33.9 | ) | (68.6 | ) | (67.9 | ) | ||||||||
Net amortization and deferral | 2.1 | 4.8 | 4.2 | 9.6 | ||||||||||||
Net pension expense | $ | 2.7 | $ | 6.0 | $ | 5.5 | $ | 12.1 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | AOCI | Total | ||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | 63.9 | $ | 1,579.1 | $ | 19,754.8 | $ | (15,924.2) | $ | (122.9) | $ | 5,350.7 | |||||||||||||||||||||||
Net earnings | — | — | 694.4 | — | — | 694.4 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | (205.5) | (205.5) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | 47.6 | — | — | — | 47.6 | |||||||||||||||||||||||||||||
Issuances relating to stock compensation plans | — | 38.0 | — | 20.4 | — | 58.4 | |||||||||||||||||||||||||||||
Treasury stock acquired (2.0 million shares repurchased) | — | — | — | (458.6) | — | (458.6) | |||||||||||||||||||||||||||||
Dividends declared ($1.04 per share) | — | — | (437.4) | — | — | (437.4) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 63.9 | $ | 1,664.7 | $ | 20,011.8 | $ | (16,362.4) | $ | (328.4) | $ | 5,049.6 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | AOCI | Total | ||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 63.9 | $ | 1,348.4 | $ | 18,644.7 | $ | (14,264.0) | $ | 15.9 | $ | 5,808.9 | |||||||||||||||||||||||
Net earnings | — | — | 647.5 | — | — | 647.5 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 24.4 | 24.4 | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | 40.6 | — | — | — | 40.6 | |||||||||||||||||||||||||||||
Issuances relating to stock compensation plans | — | 18.6 | — | 17.7 | — | 36.3 | |||||||||||||||||||||||||||||
Treasury stock acquired (1.6 million shares repurchased) | — | — | — | (259.1) | — | (259.1) | |||||||||||||||||||||||||||||
Dividends declared ($0.93 per share) | — | — | (398.6) | — | — | (398.6) | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 63.9 | $ | 1,407.6 | $ | 18,893.6 | $ | (14,505.4) | $ | 40.3 | $ | 5,900.0 |
Six Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | AOCI | Total | ||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 63.9 | $ | 1,531.3 | $ | 19,451.1 | $ | (15,386.8) | $ | 10.6 | $ | 5,670.1 | |||||||||||||||||||||||
Net earnings | — | — | 1,394.9 | — | — | 1,394.9 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | (339.0) | (339.0) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | 87.0 | — | — | — | 87.0 | |||||||||||||||||||||||||||||
Issuances relating to stock compensation plans | — | 46.4 | — | 80.4 | — | 126.8 | |||||||||||||||||||||||||||||
Treasury stock acquired (4.6 million shares repurchased) | — | — | (1,056.0) | — | (1,056.0) | ||||||||||||||||||||||||||||||
Dividends declared ($1.97 per share) | — | — | (834.2) | — | — | (834.2) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 63.9 | $ | 1,664.7 | $ | 20,011.8 | $ | (16,362.4) | $ | (328.4) | $ | 5,049.6 |
Six Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | AOCI | Total | ||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 63.9 | $ | 1,333.8 | $ | 18,436.3 | $ | (14,067.0) | $ | (14.8) | $ | 5,752.2 | |||||||||||||||||||||||
Net earnings | — | — | 1,249.6 | — | — | 1,249.6 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 55.1 | 55.1 | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | 75.7 | — | — | — | 75.7 | |||||||||||||||||||||||||||||
Issuances relating to stock compensation plans | — | (1.9) | — | 83.0 | — | 81.1 | |||||||||||||||||||||||||||||
Treasury stock acquired (3.2 million shares repurchased) | — | — | — | (521.4) | — | (521.4) | |||||||||||||||||||||||||||||
Dividends declared ($1.84 per share) | — | — | (792.3) | — | — | (792.3) | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 63.9 | $ | 1,407.6 | $ | 18,893.6 | $ | (14,505.4) | $ | 40.3 | $ | 5,900.0 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Cash Flow Hedging Activities | Pension Liability | Accumulated Other Comprehensive (Loss) /Income | |||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | (261.9) | $ | 289.8 | $ | (29.1) | $ | (121.7) | $ | (122.9) | |||||||||||||||||||||||||
Other comprehensive (loss)/income before reclassification adjustments | (16.4) | (247.6) | — | — | (264.0) | ||||||||||||||||||||||||||||||
Tax effect | — | 56.4 | — | — | 56.4 | ||||||||||||||||||||||||||||||
Reclassification adjustments to net earnings | — | (0.4) | (A) | 1.1 | (C) | 1.9 | (B) | 2.6 | |||||||||||||||||||||||||||
Tax effect | — | 0.1 | (0.3) | (0.3) | (0.5) | ||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | (278.3) | $ | 98.3 | $ | (28.3) | $ | (120.1) | $ | (328.4) |
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Cash Flow Hedging Activities | Pension Liability | Accumulated Other Comprehensive (Loss) /Income | |||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | (271.8) | $ | 661.1 | $ | (32.2) | $ | (341.2) | $ | 15.9 | |||||||||||||||||||||||||
Other comprehensive (loss)/income before reclassification adjustments | 61.9 | (44.1) | — | — | 17.8 | ||||||||||||||||||||||||||||||
Tax effect | — | 10.0 | — | — | 10.0 | ||||||||||||||||||||||||||||||
Reclassification adjustments to net earnings | — | (7.7) | (A) | 1.1 | (C) | 2.5 | (B) | (4.1) | |||||||||||||||||||||||||||
Tax effect | — | 1.7 | (0.4) | (0.6) | 0.7 | ||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | (209.9) | $ | 621.0 | $ | (31.5) | $ | (339.3) | $ | 40.3 |
Six Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Cash Flow Hedging Activities | Pension Liability | Accumulated Other Comprehensive (Loss) /Income | |||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | (226.8) | $ | 390.9 | $ | (29.9) | $ | (123.6) | $ | 10.6 | |||||||||||||||||||||||||
Other comprehensive (loss)/income before reclassification adjustments | (51.5) | (377.9) | — | — | (429.4) | ||||||||||||||||||||||||||||||
Tax effect | — | 85.7 | — | — | 85.7 | ||||||||||||||||||||||||||||||
Reclassification adjustments to net earnings | — | (0.5) | (A) | 2.2 | (C) | 4.0 | (B) | 5.7 | |||||||||||||||||||||||||||
Tax effect | — | 0.1 | (0.6) | (0.5) | (1.0) | ||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | (278.3) | $ | 98.3 | $ | (28.3) | $ | (120.1) | $ | (328.4) |
Three Months Ended | |||||||||||||||
December 31, 2017 | |||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Pension Liability | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at September 30, 2017 | $ | (188.3 | ) | $ | 59.0 | $ | (215.3 | ) | $ | (344.6 | ) | ||||
Other comprehensive income/(loss) before reclassification adjustments | 4.1 | (147.3 | ) | — | (143.2 | ) | |||||||||
Tax effect | — | 53.1 | — | 53.1 | |||||||||||
Reclassification adjustments to net earnings | — | 1.0 | (A) | 2.3 | (B) | 3.3 | |||||||||
Tax effect | — | (0.4 | ) | (0.8 | ) | (1.2 | ) | ||||||||
Balance at December 31, 2017 | $ | (184.2 | ) | $ | (34.6 | ) | $ | (213.8 | ) | $ | (432.6 | ) |
Six Months Ended | |||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Cash Flow Hedging Activities | Pension Liability | Accumulated Other Comprehensive (Loss) /Income | |||||||||||||||||||||||||
Balance at June 30, 2020 | $ | (322.2) | $ | 680.4 | $ | (30.3) | $ | (342.7) | $ | (14.8) | |||||||||||||||||||
Other comprehensive (loss)/income before reclassification adjustments | 112.3 | (68.7) | (3.3) | — | 40.3 | ||||||||||||||||||||||||
Tax effect | — | 15.5 | 0.8 | — | 16.3 | ||||||||||||||||||||||||
Reclassification adjustments to net earnings | — | (8.0) | (A) | 1.7 | (C) | 5.0 | (B) | (1.3) | |||||||||||||||||||||
Tax effect | — | 1.8 | (0.4) | (1.6) | (0.2) | ||||||||||||||||||||||||
Balance at December 31, 2020 | $ | (209.9) | $ | 621.0 | $ | (31.5) | $ | (339.3) | $ | 40.3 |
Three Months Ended | |||||||||||||||
December 31, 2016 | |||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Pension Liability | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at September 30, 2016 | $ | (243.0 | ) | $ | 288.5 | $ | (291.9 | ) | $ | (246.4 | ) | ||||
Other comprehensive loss before reclassification adjustments | (55.0 | ) | (413.3 | ) | — | (468.3 | ) | ||||||||
Tax effect | — | 145.4 | — | 145.4 | |||||||||||
Reclassification adjustments to net earnings | — | (1.3 | ) | (A) | 5.1 | (B) | 3.8 | ||||||||
Tax effect | — | 0.6 | (1.8 | ) | (1.2 | ) | |||||||||
Balance at December 31, 2016 | $ | (298.0 | ) | $ | 19.9 | $ | (288.6 | ) | $ | (566.7 | ) |
Six Months Ended | |||||||||||||||
December 31, 2017 | |||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Pension Liability | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at June 30, 2017 | $ | (230.8 | ) | $ | 68.3 | $ | (216.7 | ) | $ | (379.2 | ) | ||||
Other comprehensive income/(loss) before reclassification adjustments | 46.6 | (160.2 | ) | — | (113.6 | ) | |||||||||
Tax effect | — | 56.6 | — | 56.6 | |||||||||||
Reclassification adjustments to net earnings | — | 1.1 | (A) | 4.6 | (B) | 5.7 | |||||||||
Tax effect | — | (0.4 | ) | (1.7 | ) | (2.1 | ) | ||||||||
Balance at December 31, 2017 | $ | (184.2 | ) | $ | (34.6 | ) | $ | (213.8 | ) | $ | (432.6 | ) |
Six Months Ended | |||||||||||||||
December 31, 2016 | |||||||||||||||
Currency Translation Adjustment | Net Gains/Losses on Available-for-sale Securities | Pension Liability | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at June 30, 2016 | $ | (253.8 | ) | $ | 333.8 | $ | (295.1 | ) | $ | (215.1 | ) | ||||
Other comprehensive loss before reclassification adjustments | (44.2 | ) | (484.7 | ) | — | (528.9 | ) | ||||||||
Tax effect | — | 171.6 | — | 171.6 | |||||||||||
Reclassification adjustments to net earnings | — | (1.4 | ) | (A) | 10.2 | (B) | 8.8 | ||||||||
Tax effect | — | 0.6 | (3.7 | ) | (3.1 | ) | |||||||||
Balance at December 31, 2016 | $ | (298.0 | ) | $ | 19.9 | $ | (288.6 | ) | $ | (566.7 | ) |
Revenues | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Employer Services | $ | 2,671.3 | $ | 2,510.6 | $ | 5,242.8 | $ | 4,887.4 | |||||||||||||||
PEO Services | 1,358.8 | 1,186.1 | 2,622.9 | 2,282.0 | |||||||||||||||||||
Other | (4.7) | (1.0) | (8.0) | (2.9) | |||||||||||||||||||
$ | 4,025.4 | $ | 3,695.7 | $ | 7,857.7 | $ | 7,166.5 |
Revenues | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Employer Services | $ | 2,437.6 | $ | 2,309.3 | $ | 4,754.0 | $ | 4,570.6 | |||||||
PEO Services | 945.3 | 822.9 | 1,848.8 | 1,617.6 | |||||||||||
Other | (1.9 | ) | (2.3 | ) | (3.9 | ) | (6.0 | ) | |||||||
Reconciling item: | |||||||||||||||
Client fund interest | (145.6 | ) | (142.6 | ) | (284.7 | ) | (278.0 | ) | |||||||
$ | 3,235.4 | $ | 2,987.3 | $ | 6,314.2 | $ | 5,904.2 |
Earnings before Income Taxes | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Employer Services | $ | 817.3 | $ | 758.6 | $ | 1,601.3 | $ | 1,447.8 | |||||||||||||||
PEO Services | 212.7 | 187.4 | 405.7 | 346.8 | |||||||||||||||||||
Other | (119.9) | (113.4) | (196.1) | (196.8) | |||||||||||||||||||
$ | 910.1 | $ | 832.6 | $ | 1,810.9 | $ | 1,597.8 |
Earnings before Income Taxes | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Employer Services | $ | 706.4 | $ | 681.1 | $ | 1,353.0 | $ | 1,337.1 | |||||||
PEO Services | 128.2 | 114.5 | 245.0 | 221.6 | |||||||||||
Other | (123.3 | ) | 133.2 | (199.4 | ) | 34.1 | |||||||||
Reconciling item: | |||||||||||||||
Client fund interest | (145.6 | ) | (142.6 | ) | (284.7 | ) | (278.0 | ) | |||||||
$ | 565.7 | $ | 786.2 | $ | 1,113.9 | $ | 1,314.8 |
10% | 80 basis points | 13% | ||||||||||||
Revenue Growth | Earnings Before Income Taxes Margin Expansion | Diluted EPS Growth | ||||||||||||
10% | 80 basis points | 13% | ||||||||||||
Organic Constant Currency Revenue Growth | Adjusted EBIT Margin Expansion | Adjusted Diluted EPS Growth |
7% | Employer Services Pays Per Control | 15% | PEO Services Average Worksite Employee Growth | ||||||||||||||
$1.8B | Cash Returned via Shareholder Friendly Actions $0.8B Dividends | $1.0B Share Repurchases | ||||||||||||||||
Total Revenues | Total Revenues | ||||
9% YoY Growth | 10% YoY Growth | ||||
9% YoY Growth, Organic Constant Currency | 10% YoY Growth, Organic Constant Currency |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||||||||||||||||||||||||
Costs of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | $ | 2,040.7 | $ | 1,847.8 | 10 | % | $ | 3,971.5 | $ | 3,610.0 | 10 | % | |||||||||||||||||||||||||||||||||||
Systems development and programming costs | 199.7 | 174.5 | 14 | % | 388.5 | 343.2 | 13 | % | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 100.8 | 100.1 | 1 | % | 203.8 | 203.6 | — | % | |||||||||||||||||||||||||||||||||||||||
Total costs of revenues | 2,341.2 | 2,122.4 | 10 | % | 4,563.8 | 4,156.8 | 10 | % | |||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 782.3 | 755.8 | 4 | % | 1,501.5 | 1,436.9 | 4 | % | |||||||||||||||||||||||||||||||||||||||
Interest expense | 18.4 | 13.9 | 32 | % | 36.9 | 29.0 | 27 | % | |||||||||||||||||||||||||||||||||||||||
Total expenses | $ | 3,141.9 | $ | 2,892.1 | 9 | % | $ | 6,102.2 | $ | 5,622.7 | 9 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | 2021 | 2020 | $ Change | ||||||||||||||||||||||||||||||
Interest income on corporate funds | $ | (8.5) | $ | (10.4) | $ | (1.9) | $ | (18.2) | $ | (24.3) | $ | (6.1) | |||||||||||||||||||||||
Realized (gains)/losses on available-for-sale securities, net | (0.4) | (7.7) | (7.3) | (0.5) | (8.0) | (7.5) | |||||||||||||||||||||||||||||
Impairment of assets | — | 2.2 | 2.2 | — | 5.0 | 5.0 | |||||||||||||||||||||||||||||
Gain on sale of assets | — | (1.6) | (1.6) | (1.3) | (1.8) | (0.5) | |||||||||||||||||||||||||||||
Non-service components of pension income, net | (17.7) | (11.5) | 6.2 | (35.4) | (24.9) | 10.5 | |||||||||||||||||||||||||||||
Other (income)/expense, net | $ | (26.6) | $ | (29.0) | $ | (2.4) | $ | (55.4) | $ | (54.0) | $ | 1.4 |
Earnings Before Income Taxes | Margin | ||||
9% YoY Growth | 10 bps YoY Increase |
Earnings Before Income Taxes | Margin | ||||
13% YoY Growth | 80 bps YoY Increase |
Adjusted EBIT | Adjusted EBIT Margin | ||||
10% YoY Growth | 20 bps YoY Increase |
Adjusted EBIT | Adjusted EBIT Margin | ||||
13% YoY Growth | 80 bps YoY Increase |
Net Earnings | Diluted EPS | ||||
7% YoY Growth | 9% YoY Growth |
Net Earnings | Diluted EPS | ||||
12% YoY Growth | 13% YoY Growth |
Adjusted Net Earnings | Adjusted Diluted EPS | ||||
7% YoY Growth | 9% YoY Growth |
Adjusted Net Earnings | Adjusted Diluted EPS | ||||
11% YoY Growth | 13% YoY Growth |
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | % Change | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | % Change | |||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | As Reported | Organic constant currency | 2021 | 2020 | As Reported | Organic constant currency | ||||||||||||||||||||||||||||||||||||||||
Employer Services | $ | 2,671.3 | $ | 2,510.6 | 6 | % | 7 | % | $ | 5,242.8 | $ | 4,887.4 | 7 | % | 7 | % | |||||||||||||||||||||||||||||||
PEO Services | 1,358.8 | 1,186.1 | 15 | % | 15 | % | 2,622.9 | 2,282.0 | 15 | % | 15 | % | |||||||||||||||||||||||||||||||||||
Other | (4.7) | (1.0) | n/m | n/m | (8.0) | (2.9) | n/m | n/m | |||||||||||||||||||||||||||||||||||||||
$ | 4,025.4 | $ | 3,695.7 | 9 | % | 9 | % | $ | 7,857.7 | $ | 7,166.5 | 10 | % | 10 | % |
Earnings before Income Taxes | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | % Change | Six Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | As Reported | 2021 | 2020 | As Reported | ||||||||||||||||||||||||||||||||||||||||||
Employer Services | $ | 817.3 | $ | 758.6 | 8 | % | $ | 1,601.3 | $ | 1,447.8 | 11 | % | |||||||||||||||||||||||||||||||||||
PEO Services | 212.7 | 187.4 | 14 | % | 405.7 | 346.8 | 17 | % | |||||||||||||||||||||||||||||||||||||||
Other | (119.9) | (113.4) | n/m | (196.1) | (196.8) | n/m | |||||||||||||||||||||||||||||||||||||||||
$ | 910.1 | $ | 832.6 | 9 | % | $ | 1,810.9 | $ | 1,597.8 | 13 | % |
ES Margin | ES Margin | ||||
40 bps YoY Increase | 90 bps YoY Increase |
PEO Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Change | Six Months Ended | Change | ||||||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||||||
PEO Services' revenues | $ | 1,358.8 | $ | 1,186.1 | $ | 172.7 | 15 | % | $ | 2,622.9 | $ | 2,282.0 | $ | 340.9 | 15 | % | |||||||||||||||||||||||||||||||
Less: PEO zero-margin benefits pass-throughs | 863.9 | 765.9 | 98.0 | 13 | % | 1,703.4 | 1,507.0 | 196.4 | 13 | % | |||||||||||||||||||||||||||||||||||||
PEO Services' revenues excluding zero-margin benefits pass-throughs | $ | 494.9 | $ | 420.2 | $ | 74.7 | 18 | % | $ | 919.5 | $ | 775.0 | $ | 144.5 | 19 | % |
PEO Margin | PEO Margin | ||||
10 bps YoY Decrease | 30 bps YoY Increase |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
December 31, | % Change | December 31, | % Change | ||||||||||||||||||||||||
2017 | 2016 | As Reported | Constant Dollar Basis (Note 1) | 2017 | 2016 | As Reported | Constant Dollar Basis (Note 1) | ||||||||||||||||||||
Total revenues | $ | 3,235.4 | $ | 2,987.3 | 8 | % | 7 | % | $ | 6,314.2 | $ | 5,904.2 | 7 | % | 6 | % | |||||||||||
Costs of revenues: | |||||||||||||||||||||||||||
Operating expenses | 1,719.3 | 1,560.4 | 10 | % | 9 | % | 3,366.0 | 3,091.9 | 9 | % | 8 | % | |||||||||||||||
Systems development and programming costs | 158.1 | 152.5 | 4 | % | 2 | % | 315.1 | 307.4 | 3 | % | 1 | % | |||||||||||||||
Depreciation and amortization | 69.3 | 54.9 | 26 | % | 25 | % | 131.9 | 112.2 | 18 | % | 17 | % | |||||||||||||||
Total costs of revenues | 1,946.7 | 1,767.8 | 10 | % | 9 | % | 3,813.0 | 3,511.5 | 9 | % | 8 | % | |||||||||||||||
Selling, general and administrative costs | 717.2 | 640.8 | 12 | % | 11 | % | 1,379.6 | 1,288.6 | 7 | % | 7 | % | |||||||||||||||
Interest expense | 27.5 | 20.5 | n/m | n/m | 55.5 | 40.4 | n/m | n/m | |||||||||||||||||||
Total expenses | 2,691.4 | 2,429.1 | 11 | % | 10 | % | 5,248.1 | 4,840.5 | 8 | % | 8 | % | |||||||||||||||
Other income, net | (21.7 | ) | (228.0 | ) | n/m | n/m | (47.8 | ) | (251.1 | ) | n/m | n/m | |||||||||||||||
Earnings before income taxes | $ | 565.7 | $ | 786.2 | (28 | )% | (29 | )% | $ | 1,113.9 | $ | 1,314.8 | (15 | )% | (16 | )% | |||||||||||
Margin | 17.5 | % | 26.3 | % | 17.6 | % | 22.3 | % | |||||||||||||||||||
Provision for income taxes | $ | 98.2 | $ | 275.3 | (64 | )% | (65 | )% | $ | 244.9 | $ | 435.2 | (44 | )% | (44 | )% | |||||||||||
Effective tax rate | 17.4 | % | 35.0 | % | 22.0 | % | 33.1 | % | |||||||||||||||||||
Net earnings | $ | 467.5 | $ | 510.9 | (8 | )% | (9 | )% | $ | 869.0 | $ | 879.6 | (1 | )% | (2 | )% | |||||||||||
Diluted earnings per share | $ | 1.05 | $ | 1.13 | (7 | )% | (7 | )% | $ | 1.96 | $ | 1.94 | 1 | % | — | % |
Adjusted Financial Measure | U.S. GAAP Measures | |||||||
Adjusted EBIT | Net earnings | |||||||
Adjusted provision for income taxes | Provision for income taxes | |||||||
Adjusted net earnings | Net earnings | |||||||
Adjusted diluted earnings per share | Diluted earnings per share | |||||||
Adjusted effective tax rate | Effective tax rate | |||||||
Organic constant currency | Revenues | |||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
December 31, | % Change | December 31, | % Change | |||||||||||||||||||||||||
2017 | 2016 | As Reported | Constant Dollar Basis (h) | 2017 | 2016 | As Reported | Constant Dollar Basis (h) | |||||||||||||||||||||
Net earnings | $ | 467.5 | $ | 510.9 | (8 | )% | (9 | )% | $ | 869.0 | $ | 879.6 | (1 | )% | (2 | )% | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Provision for income taxes | 98.2 | 275.3 | 244.9 | 435.2 | ||||||||||||||||||||||||
All other interest expense (a) | 15.0 | 14.9 | 30.0 | 29.9 | ||||||||||||||||||||||||
All other interest income (a) | (4.4 | ) | (4.4 | ) | (10.7 | ) | (9.2 | ) | ||||||||||||||||||||
Gain on sale of business | — | (205.4 | ) | — | (205.4 | ) | ||||||||||||||||||||||
Service Alignment Initiative (b) | 3.3 | 1.2 | — | 41.1 | ||||||||||||||||||||||||
Proxy contest matters (f) | 22.9 | — | 33.3 | — | ||||||||||||||||||||||||
Adjusted EBIT | $ | 602.5 | $ | 592.5 | 2 | % | 1 | % | $ | 1,166.5 | $ | 1,171.2 | — | % | (1 | )% | ||||||||||||
Adjusted EBIT Margin | 18.6 | % | 19.8 | % | 18.5 | % | 19.8 | % | ||||||||||||||||||||
Provision for income taxes | $ | 98.2 | $ | 275.3 | (64 | )% | (65 | )% | $ | 244.9 | $ | 435.2 | (44 | )% | (44 | )% | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Gain on sale of business (c) | — | (84.0 | ) | — | (84.0 | ) | ||||||||||||||||||||||
Service Alignment Initiative (d) | 1.3 | 0.4 | — | 15.5 | ||||||||||||||||||||||||
Proxy contest matters (f) | 6.3 | — | 10.3 | — | ||||||||||||||||||||||||
Tax Cuts and Jobs Act (g) | 45.7 | — | 45.7 | — | ||||||||||||||||||||||||
Adjusted provision for income taxes | $ | 151.5 | $ | 191.7 | (21 | )% | (22 | )% | $ | 300.9 | $ | 366.7 | (18 | )% | (19 | )% | ||||||||||||
Adjusted effective tax rate (e) | 25.6 | % | 32.9 | % | 26.2 | % | 31.9 | % | ||||||||||||||||||||
Net earnings | $ | 467.5 | $ | 510.9 | (8 | )% | (9 | )% | $ | 869.0 | $ | 879.6 | (1 | )% | (2 | )% | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Gain on sale of business | — | (205.4 | ) | — | (205.4 | ) | ||||||||||||||||||||||
Provision for income taxes on gain on sale of business (c) | — | 84.0 | — | 84.0 | ||||||||||||||||||||||||
Service Alignment Initiative (b) | 3.3 | 1.2 | — | 41.1 | ||||||||||||||||||||||||
Income tax benefit for Service Alignment Initiative (d) | (1.3 | ) | (0.4 | ) | — | (15.5 | ) | |||||||||||||||||||||
Proxy contest matters (f) | 22.9 | — | 33.3 | — | ||||||||||||||||||||||||
Income tax benefit for proxy contest matters (f) | (6.3 | ) | — | (10.3 | ) | — | ||||||||||||||||||||||
Income tax benefit from Tax Cuts and Jobs Act (g) | (45.7 | ) | — | (45.7 | ) | — | ||||||||||||||||||||||
Adjusted net earnings | $ | 440.4 | $ | 390.3 | 13 | % | 12 | % | $ | 846.3 | $ | 783.8 | 8 | % | 7 | % | ||||||||||||
Diluted EPS | $ | 1.05 | $ | 1.13 | (7 | )% | (7 | )% | $ | 1.96 | $ | 1.94 | 1 | % | — | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Gain on sale of business (c) | — | (0.27 | ) | — | (0.27 | ) | ||||||||||||||||||||||
Service Alignment Initiative (b) | — | — | — | 0.06 | ||||||||||||||||||||||||
Proxy contest matters (f) | 0.04 | — | 0.05 | — | ||||||||||||||||||||||||
Tax Cuts and Jobs Act (g) | (0.10 | ) | — | (0.10 | ) | — | ||||||||||||||||||||||
Adjusted diluted EPS | $ | 0.99 | $ | 0.87 | 14 | % | 13 | % | $ | 1.90 | $ | 1.73 | 10 | % | 9 | % |
Three Months Ended | % Change | Six Months Ended | % Change | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | As Reported | 2021 | 2020 | As Reported | |||||||||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 694.4 | $ | 647.5 | 7 | % | $ | 1,394.9 | $ | 1,249.6 | 12 | % | ||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 215.7 | 185.1 | 416.0 | 348.2 | ||||||||||||||||||||||||||||||||||||||||||||||
All other interest expense (a) | 17.8 | 13.2 | 35.6 | 27.3 | ||||||||||||||||||||||||||||||||||||||||||||||
All other interest income (a) | (1.1) | (1.5) | (2.4) | (3.3) | ||||||||||||||||||||||||||||||||||||||||||||||
Transformation initiatives (b) | 3.0 | 3.3 | 0.9 | 4.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Excess capacity severance charges | — | 0.5 | — | 2.9 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT | $ | 929.8 | $ | 848.1 | 10 | % | $ | 1,845.0 | $ | 1,628.8 | 13 | % | ||||||||||||||||||||||||||||||||||||||
Adjusted EBIT Margin | 23.1 | % | 22.9 | % | 23.5 | % | 22.7 | % | ||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | 215.7 | $ | 185.1 | 17 | % | $ | 416.0 | $ | 348.2 | 19 | % | ||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Transformation initiatives (c) | 0.7 | 0.8 | 0.1 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||||
Excess capacity severance charges (c) | — | 0.1 | — | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted provision for income taxes | $ | 216.4 | $ | 186.0 | 16 | % | $ | 416.1 | $ | 349.9 | 19 | % | ||||||||||||||||||||||||||||||||||||||
Adjusted effective tax rate (d) | 23.7 | % | 22.2 | % | 23.0 | % | 21.8 | % | ||||||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 694.4 | $ | 647.5 | 7 | % | $ | 1,394.9 | $ | 1,249.6 | 12 | % | ||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Transformation initiatives (b) | 3.0 | 3.3 | 0.9 | 4.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision/(benefit) for transformation initiatives (c) | (0.7) | (0.8) | (0.1) | (1.0) | ||||||||||||||||||||||||||||||||||||||||||||||
Excess capacity severance charges | — | 0.5 | — | 2.9 | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit for excess capacity severance charges (c) | — | (0.1) | — | (0.7) | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net earnings | $ | 696.7 | $ | 650.4 | 7 | % | $ | 1,395.7 | $ | 1,254.9 | 11 | % | ||||||||||||||||||||||||||||||||||||||
Diluted EPS | $ | 1.65 | $ | 1.51 | 9 | % | $ | 3.30 | $ | 2.91 | 13 | % | ||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Transformation initiatives (b) (c) | 0.01 | 0.01 | — | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||
Excess capacity severance charges (c) | — | — | — | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted diluted EPS | $ | 1.65 | $ | 1.52 | 9 | % | $ | 3.30 | $ | 2.92 | 13 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2021 | 2021 | |||||||||||||||||||||||||
Consolidated revenue growth as reported | 9 | % | 10 | % | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Impact of acquisitions | — | % | — | % | ||||||||||||||||||||||
Impact of foreign currency | — | % | — | % | ||||||||||||||||||||||
Consolidated revenue growth, organic constant currency | 9 | % | 10 | % | ||||||||||||||||||||||
Employer Services revenue growth as reported | 6 | % | 7 | % | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Impact of acquisitions | — | % | — | % | ||||||||||||||||||||||
Impact of foreign currency | 1 | % | — | % | ||||||||||||||||||||||
Employer Services revenue growth, organic constant currency | 7 | % | 7 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2017 | 2016 | $ Change | 2017 | 2016 | $ Change | ||||||||||||||||||
Interest income on corporate funds | $ | (22.7 | ) | $ | (21.3 | ) | $ | 1.4 | $ | (48.5 | ) | $ | (44.3 | ) | $ | 4.2 | |||||||
Realized gains on available-for-sale securities | (0.2 | ) | (2.0 | ) | (1.8 | ) | (0.5 | ) | (2.5 | ) | (2.0 | ) | |||||||||||
Realized losses on available-for-sale securities | 1.2 | 0.7 | (0.5 | ) | 1.6 | 1.1 | (0.5 | ) | |||||||||||||||
Gain on sale of assets | — | — | — | (0.4 | ) | — | 0.4 | ||||||||||||||||
Gain on sale of business (see Note 4 of the Consolidated Financial Statements) | — | (205.4 | ) | (205.4 | ) | — | (205.4 | ) | (205.4 | ) | |||||||||||||
Other income, net | $ | (21.7 | ) | $ | (228.0 | ) | $ | (206.3 | ) | $ | (47.8 | ) | $ | (251.1 | ) | $ | (203.3 | ) |
Revenues | |||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
December 31, | % Change | December 31, | % Change | ||||||||||||||||||||||||
2017 | 2016 | As Reported | Constant Dollar Basis | 2017 | 2016 | As Reported | Constant Dollar Basis | ||||||||||||||||||||
Employer Services | $ | 2,437.6 | $ | 2,309.3 | 6 | % | 4 | % | $ | 4,754.0 | $ | 4,570.6 | 4 | % | 3 | % | |||||||||||
PEO Services | 945.3 | 822.9 | 15 | % | 15 | % | 1,848.8 | 1,617.6 | 14 | % | 14 | % | |||||||||||||||
Other | (1.9 | ) | (2.3 | ) | n/m | n/m | (3.9 | ) | (6.0 | ) | n/m | n/m | |||||||||||||||
Reconciling item: | |||||||||||||||||||||||||||
Client fund interest | (145.6 | ) | (142.6 | ) | n/m | n/m | (284.7 | ) | (278.0 | ) | n/m | n/m | |||||||||||||||
$ | 3,235.4 | $ | 2,987.3 | 8 | % | 7 | % | $ | 6,314.2 | $ | 5,904.2 | 7 | % | 6 | % |
Earnings before Income Taxes | |||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
December 31, | % Change | December 31, | % Change | ||||||||||||||||||||||||
2017 | 2016 | As Reported | Constant Dollar Basis | 2017 | 2016 | As Reported | Constant Dollar Basis | ||||||||||||||||||||
Employer Services | $ | 706.4 | $ | 681.1 | 4 | % | 3 | % | $ | 1,353.0 | $ | 1,337.1 | 1 | % | 1 | % | |||||||||||
PEO Services | 128.2 | 114.5 | 12 | % | 12 | % | 245.0 | 221.6 | 11 | % | 11 | % | |||||||||||||||
Other | (123.3 | ) | 133.2 | n/m | n/m | (199.4 | ) | 34.1 | n/m | n/m | |||||||||||||||||
Reconciling item: | |||||||||||||||||||||||||||
Client fund interest | (145.6 | ) | (142.6 | ) | n/m | n/m | (284.7 | ) | (278.0 | ) | n/m | n/m | |||||||||||||||
$ | 565.7 | $ | 786.2 | (28 | )% | (29 | )% | $ | 1,113.9 | $ | 1,314.8 | (15 | )% | (16 | )% |
Six Months Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2021 | 2020 | $ Change | ||||||||||||||||||
Cash provided by / (used in): | ||||||||||||||||||||
Operating activities | $ | 1,215.6 | $ | 1,188.3 | $ | 27.3 | ||||||||||||||
Investing activities | (3,468.4) | (949.6) | (2,518.8) | |||||||||||||||||
Financing activities | 9,664.7 | 8,751.5 | 913.2 | |||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (20.9) | 84.7 | (105.6) | |||||||||||||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 7,391.0 | $ | 9,074.9 | $ | (1,683.9) |
Six Months Ended | ||||||||||||
December 31, | ||||||||||||
2017 | 2016 *As Adjusted | $ Change | ||||||||||
Cash provided by (used in): | ||||||||||||
Operating activities | $ | 675.1 | $ | 841.1 | $ | (166.0 | ) | |||||
Investing activities | (1,326.3 | ) | (493.8 | ) | (832.5 | ) | ||||||
Financing activities | 6,280.3 | (4,029.3 | ) | 10,309.6 | ||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 49.1 | (55.1 | ) | 104.2 | ||||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 5,678.2 | $ | (3,737.1 | ) | $ | 9,415.3 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Average daily borrowings (in billions) | $ | 1.9 | $ | 1.8 | $ | 1.9 | $ | 2.1 | |||||||||||||||
Weighted average interest rates | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||||||||
Weighted average maturity (approximately in days) | 1 day | 1 day | 1 day | 1 day |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Average outstanding balances | $ | 228.4 | $ | 83.2 | $ | 211.7 | $ | 117.8 | |||||||||||||||
Weighted average interest rates | 0.2 | % | 0.3 | % | 0.2 | % | 0.3 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Average investment balances at cost: | |||||||||||||||||||||||
Corporate investments | $ | 3,777.6 | $ | 3,504.5 | $ | 4,037.2 | $ | 3,869.5 | |||||||||||||||
Funds held for clients | 32,245.5 | 25,109.5 | 29,550.1 | 23,540.2 | |||||||||||||||||||
Total | $ | 36,023.1 | $ | 28,614.0 | $ | 33,587.3 | $ | 27,409.7 | |||||||||||||||
Average interest rates earned exclusive of realized (gains)/losses on: | |||||||||||||||||||||||
Corporate investments | 0.9 | % | 1.2 | % | 0.9 | % | 1.3 | % | |||||||||||||||
Funds held for clients | 1.3 | % | 1.7 | % | 1.4 | % | 1.8 | % | |||||||||||||||
Total | 1.3 | % | 1.6 | % | 1.3 | % | 1.7 | % | |||||||||||||||
Net realized (gains)/losses on available-for-sale securities | $ | (0.4) | $ | (7.7) | $ | (0.5) | $ | (8.0) |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Average investment balances at cost: | |||||||||||||||
Corporate investments | $ | 5,602.4 | $ | 7,033.4 | $ | 6,110.5 | $ | 7,184.0 | |||||||
Funds held for clients | 22,460.7 | 20,905.9 | 21,836.8 | 20,476.0 | |||||||||||
Total | $ | 28,063.1 | $ | 27,939.3 | $ | 27,947.3 | $ | 27,660.0 | |||||||
Average interest rates earned exclusive of realized (gains)/losses on: | |||||||||||||||
Corporate investments | 1.6 | % | 1.2 | % | 1.6 | % | 1.2 | % | |||||||
Funds held for clients | 1.9 | % | 1.8 | % | 1.9 | % | 1.8 | % | |||||||
Total | 1.8 | % | 1.6 | % | 1.8 | % | 1.6 | % | |||||||
Realized gains on available-for-sale securities | $ | (0.2 | ) | $ | (2.0 | ) | $ | (0.5 | ) | $ | (2.5 | ) | |||
Realized losses on available-for-sale securities | 1.2 | 0.7 | 1.6 | 1.1 | |||||||||||
Net realized losses/(gains) on available-for-sale securities | $ | 1.0 | $ | (1.3 | ) | $ | 1.1 | $ | (1.4 | ) |
December 31, 2021 | June 30, 2021 | ||||||||||
Net unrealized pre-tax gains on available-for-sale securities | $ | 123.8 | $ | 502.2 | |||||||
Total available-for-sale securities at fair value | $ | 27,120.9 | $ | 24,371.7 |
December 31, 2017 | June 30, 2017 | ||||||
Net unrealized pre-tax (losses)/gains on available-for-sale securities | $ | (56.7 | ) | $ | 102.5 | ||
Total available-for-sale securities at fair value | $ | 22,375.5 | $ | 21,901.1 |
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 Approximate Dollar Value of Shares that may yet be Purchased under the Common Stock Repurchase Plan (2) | |||||||||||||||||||||||
Period | ||||||||||||||||||||||||||
October 1 to 31, 2021 | 807,011 | $ | 210.67 | 807,011 | $ | 2,375,063,115 | ||||||||||||||||||||
November 1 to 30, 2021 | 631,095 | $ | 230.56 | 628,923 | $ | 2,230,057,833 | ||||||||||||||||||||
December 1 to 31, 2021 | 601,651 | $ | 235.26 | 601,397 | $ | 2,088,578,302 | ||||||||||||||||||||
Total | 2,039,757 | 2,037,331 |
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) | ||||||||||
Period | |||||||||||||
October 1 to 31, 2017 | 552,197 | $ | 113.85 | 540,293 | 22,162,980 | ||||||||
November 1 to 30, 2017 | 563,653 | $ | 111.81 | 563,549 | 21,599,431 | ||||||||
December 1 to 31, 2017 | 264,706 | $ | 116.04 | 259,427 | 21,340,004 | ||||||||
Total | 1,380,556 | 1,363,269 |
Date of Approval | |||||
Exhibit Number | Exhibit | ||||
Compensation letter for John Ayala, dated December 2021. | |||||
Certification by Carlos A. Rodriguez pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |||||
Certification by | |||||
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 | |||||
101.INS | |||||
101.SCH | Inline XBRL Taxonomy Extension Schema | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | ||||
101.LAB | Inline XBRL Taxonomy Label Linkbase | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | ||||
101.DEF | Inline XBRL | ||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
AUTOMATIC DATA PROCESSING, INC. (Registrant) | ||||||||
Date: | /s/ | |||||||
Chief Financial Officer (Title) |