Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
Document Document And Entity Information [Abstract] | |||
Entity Registrant Name | BROADRIDGE FINANCIAL SOLUTIONS, INC. | ||
Entity Central Index Key | 1,383,312 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | BR | ||
Entity Common Stock, Shares Outstanding (in shares) | 116,325,160 | ||
Document and Entity Information | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 10,483,964,277 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 4,329.9 | $ 4,142.6 | $ 2,897 |
Cost of revenues | 3,169.6 | 3,109.6 | 1,975.9 |
Selling, general and administrative expenses | 565.4 | 501.4 | 420.9 |
Total operating expenses | 3,735 | 3,611 | 2,396.8 |
Operating income | 594.9 | 531.6 | 500.3 |
Interest expense, net | 38.6 | 42.7 | 25.7 |
Other non-operating (income) expenses, net | (4.7) | 0.8 | 5.6 |
Earnings before income taxes | 561 | 488.1 | 468.9 |
Provision for income taxes | 133.1 | 161.4 | 161.4 |
Net earnings | $ 427.9 | $ 326.8 | $ 307.5 |
Basic earnings per share (in dollars per share) | $ 3.66 | $ 2.77 | $ 2.60 |
Diluted earnings per share (in dollars per share) | $ 3.56 | $ 2.70 | $ 2.53 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 116.8 | 118 | 118.3 |
Diluted (in shares) | 120.4 | 120.8 | 121.6 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 427.9 | $ 326.8 | $ 307.5 |
Other comprehensive income (loss), net: | |||
Foreign currency translation adjustments | 5.7 | (17) | (15.4) |
Net gains (losses) on available-for-sale securities, net of taxes of $1.2, ($0.6) and $0.4 for the years ended June 30, 2018, 2017 and 2016, respectively | (2.6) | 1 | (0.7) |
Pension and post-retirement liability adjustment, net of taxes of ($0.4), $1.0 and $0.8 for the years ended June 30, 2018, 2017 and 2016, respectively | 0.9 | (1.6) | (1.3) |
Total other comprehensive income (loss), net | 3.9 | (17.6) | (17.3) |
Comprehensive income | $ 431.9 | $ 309.2 | $ 290.2 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains (losses) on available-for-sale securities, taxes | $ 1.2 | $ (0.6) | $ 0.4 |
Pension and post-retirement liability adjustment, taxes | $ (0.4) | $ 1 | $ 0.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 263.9 | $ 271.1 |
Accounts receivable, net of allowance for doubtful accounts of $2.7 and $3.7, respectively | 615 | 589.5 |
Other current assets | 112.2 | 129 |
Total current assets | 991.1 | 989.6 |
Property, plant and equipment, net | 204.1 | 198.1 |
Goodwill | 1,254.9 | 1,159.3 |
Intangible assets, net | 494.1 | 486.4 |
Other non-current assets | 360.5 | 316.4 |
Total assets | 3,304.7 | 3,149.8 |
Current liabilities: | ||
Accounts payable | 191.8 | 167.2 |
Accrued expenses and other current liabilities | 479.2 | 495.3 |
Deferred revenues | 106.3 | 82.4 |
Total current liabilities | 777.3 | 744.9 |
Long-term debt | 1,053.4 | 1,102.1 |
Deferred taxes | 57.9 | 82 |
Deferred revenues | 75.2 | 74.3 |
Other non-current liabilities | 246.5 | 142.7 |
Total liabilities | 2,210.4 | 2,146 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock: Authorized, 25.0 shares; issued and outstanding, none | 0 | 0 |
Common stock, $0.01 par value: Authorized, 650.0 shares; issued, 154.5 and 154.5 shares, respectively; outstanding, 116.3 and 116.5 shares, respectively | 1.6 | 1.6 |
Additional paid-in capital | 1,048.5 | 987.6 |
Retained earnings | 1,727 | 1,469.4 |
Treasury stock, at cost: 38.1 and 38.0 shares, respectively | (1,630.8) | (1,398.9) |
Accumulated other comprehensive loss | (51.9) | (55.8) |
Total stockholders’ equity | 1,094.3 | 1,003.8 |
Total liabilities and stockholders’ equity | $ 3,304.7 | $ 3,149.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2.7 | $ 3.7 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 650,000,000 | 650,000,000 |
Common stock, shares issued (in shares) | 154,500,000 | 154,500,000 |
Common stock, shares outstanding (in shares) | 116,300,000 | 116,500,000 |
Treasury stock, shares (in shares) | 38,100,000 | 38,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows From Operating Activities | |||
Net earnings | $ 427.9 | $ 326.8 | $ 307.5 |
Adjustments to reconcile Net earnings to Net cash flows provided by operating activities: | |||
Depreciation and amortization | 82.1 | 68.6 | 52.6 |
Amortization of acquired intangibles and purchased intellectual property | 81.4 | 72.6 | 31.8 |
Amortization of other assets | 48.5 | 41 | 36.6 |
Stock-based compensation expense | 55.1 | 46.1 | 43.1 |
Deferred income taxes | (9.3) | (14.7) | (5.9) |
Excess tax benefits from stock-based compensation awards | 0 | (40.6) | (21.3) |
Other | (21.2) | (8.6) | (14.6) |
Current assets and liabilities: | |||
Increase in Accounts receivable, net | (18.6) | (44.4) | (5.3) |
(Increase) decrease in Other current assets | (7.6) | 5.6 | (12.5) |
Increase in Accounts payable | 43 | 16.2 | 6.2 |
Increase (decrease) in Accrued expenses and other current liabilities | (33.4) | 119.2 | 69.6 |
Increase (decrease) in Deferred revenues | 20.8 | (4.5) | 2.9 |
Non-current assets and liabilities: | |||
Increase in Other non-current assets | (83.5) | (90.7) | (59.5) |
Increase in Other non-current liabilities | 108.3 | 23.2 | 6.5 |
Net cash flows provided by operating activities | 693.6 | 515.9 | 437.7 |
Cash Flows From Investing Activities | |||
Capital expenditures | (76.7) | (85.4) | (57.7) |
Software purchases and capitalized internal use software | (21.2) | (28.3) | (17.8) |
Acquisitions, net of cash acquired | (108.3) | (448.7) | (53) |
Purchase of intellectual property | (40) | (90) | 0 |
Other investing activities | (3.1) | (6.9) | (8.3) |
Net cash flows used in investing activities | (249.3) | (659.3) | (136.9) |
Cash Flows From Financing Activities | |||
Debt proceeds | 340 | 500 | 807.9 |
Debt repayments | (390) | (415) | (475) |
Excess tax benefits from stock-based compensation awards | 0 | 40.6 | 21.3 |
Dividends paid | (165.8) | (152.2) | (138.2) |
Purchases of Treasury stock | (277.1) | (342.8) | (119.8) |
Proceeds from exercise of stock options | 52 | 60.9 | 24.8 |
Other financing activities | (9) | (3.2) | (12.5) |
Net cash flows provided by (used in) financing activities | (449.9) | (311.7) | 108.6 |
Effect of exchange rate changes on Cash and cash equivalents | (1.6) | (1.6) | (5.7) |
Net change in Cash and cash equivalents | (7.2) | (456.7) | 403.7 |
Cash and cash equivalents, beginning of fiscal year | 271.1 | 727.7 | 324.1 |
Cash and cash equivalents, end of fiscal year | 263.9 | 271.1 | 727.7 |
Supplemental disclosure of cash flow information: | |||
Cash payments made for interest | 40.5 | 43.1 | 26.7 |
Cash payments made for income taxes, net of refunds | 177.6 | 113.4 | 122.4 |
Non-cash investing and financing activities: | |||
Accrual of unpaid property, plant, equipment and software | $ 6.2 | $ 17.7 | $ 7 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Balance at Jun. 30, 2015 | $ 927.8 | $ 1.6 | $ 855.5 | $ 1,132 | $ (1,040.4) | $ (20.9) |
Balance (in shares) at Jun. 30, 2015 | 154.5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 290.2 | 307.5 | (17.3) | |||
Stock option exercises and excess tax benefits | 46.2 | 46.2 | ||||
Stock-based compensation | 42.8 | 42.8 | ||||
Treasury stock acquired | (119.8) | (119.8) | ||||
Treasury stock reissued | 0 | (43.3) | 43.3 | |||
Common stock dividends | (141.7) | (141.7) | ||||
Balance at Jun. 30, 2016 | 1,045.5 | $ 1.6 | 901.2 | 1,297.8 | (1,116.9) | (38.2) |
Balance (in shares) at Jun. 30, 2016 | 154.5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 309.2 | 326.8 | (17.6) | |||
Stock option exercises and excess tax benefits | 101.2 | 101.2 | ||||
Stock-based compensation | 45.9 | 45.9 | ||||
Treasury stock acquired | (342.8) | (342.8) | ||||
Treasury stock reissued | 0 | (60.7) | 60.7 | |||
Common stock dividends | (155.2) | (155.2) | ||||
Balance at Jun. 30, 2017 | $ 1,003.8 | $ 1.6 | 987.6 | 1,469.4 | (1,398.9) | (55.8) |
Balance (in shares) at Jun. 30, 2017 | 154.5 | 154.5 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | $ 431.9 | 427.9 | 3.9 | |||
Stock option exercises and excess tax benefits | 51.5 | 51.5 | ||||
Stock-based compensation | 54.7 | 54.7 | ||||
Treasury stock acquired | (277.1) | (277.1) | ||||
Treasury stock reissued | 0 | (45.3) | 45.3 | |||
Common stock dividends | (170.4) | (170.4) | ||||
Balance at Jun. 30, 2018 | $ 1,094.3 | $ 1.6 | $ 1,048.5 | $ 1,727 | $ (1,630.8) | $ (51.9) |
Balance (in shares) at Jun. 30, 2018 | 154.5 | 154.5 |
Consolidated Statements of Sto9
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Treasury stock acquired (in shares) | 2.4 | 4.9 | 2.1 |
Treasury stock reissued (in shares) | 2.3 | 3.1 | 2.2 |
Dividends declared (in dollars per share) | $ 1.46 | $ 1.32 | $ 1.2 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION A. Description of Business. Broadridge Financial Solutions, Inc. (“Broadridge” or the “Company”), a Delaware corporation and a member of the S&P 500, is a global financial technology leader providing investor communications and technology-driven solutions to banks, broker-dealers, asset managers and corporate issuers. Broadridge’s services include investor and customer communications, securities processing, and data and analytics solutions. In short, Broadridge provides important infrastructure that powers the financial services industry. With over 50 years of experience, including over 10 years as an independent public company, Broadridge provides financial services firms with advanced, dependable, scalable and cost-effective integrated systems. Broadridge’s systems help reduce the need for clients to make significant capital investments in operations infrastructure, thereby allowing them to increase their focus on core business activities. Broadridge operates in two reportable segments: Investor Communication Solutions and Global Technology and Operations. Broadridge serves a large and diverse client base across four client groups: capital markets, asset management, wealth management and corporations. Investor Communication Solutions - Broadridge offers Bank/Broker-Dealer Investor Communication Solutions, Customer Communication Solutions, Corporate Issuer Solutions, Advisor Solutions and Mutual Fund and Retirement Solutions in this segment. A large portion of Broadridge’s Investor Communication Solutions business involves the processing and distribution of proxy materials to investors in equity securities and mutual funds, as well as the facilitation of related vote processing. ProxyEdge, Broadridge’s innovative electronic proxy delivery and voting solution for institutional investors and financial advisors, helps ensure the voting participation of the largest stockholders of many companies. In addition, Broadridge provides corporations with registered proxy services as well as registrar, stock transfer and record-keeping services. Broadridge also provides the distribution of regulatory reports and corporate action/reorganization event information, as well as tax reporting solutions that help its clients meet their regulatory compliance needs. Broadridge provides customer communication solutions to companies in the financial services, healthcare, insurance, consumer finance, telecommunications, utilities, retail banking and other service industries. The Broadridge Communications Cloud, launched in 2016, provides multi-channel communications delivery, communications management, information management and control and administration capabilities that enable and enhance its clients’ communications with their customers. Broadridge processes and distributes its clients’ essential communications including transactional (e.g., bills and statements), regulatory (e.g., explanations of benefits, notices, and trade confirmations) and marketing (e.g., direct mail) communications through print and digital channels. Broadridge advisor solutions enable firms, financial advisors, wealth managers, and insurance agents to better engage with customers through cloud-based marketing and customer communication tools. Broadridge’s marketing ecosystem integrates data, content and technology to drive new client acquisition and cross-sell opportunities through the creation of sales and educational content, including seminars as well as customizable advisor websites, search engine marketing and electronic and print newsletters. Broadridge’s advisor solutions also help advisors optimize their practice management through customer and account data aggregation and reporting. Broadridge provides asset managers and retirement service providers with data-driven solutions that help its clients grow revenue, operate efficiently, and maintain compliance. Broadridge’s communications solutions provide an end-to-end platform for content management, composition, and multi-channel distribution of regulatory, marketing, and transactional information. Broadridge’s data and analytics solutions provide investment product distribution data, analytical tools, insights, and research to enable asset managers to optimize product distribution across retail and institutional channels globally. Broadridge also provides mutual fund trade processing services for retirement providers, third party administrators, financial advisors, banks and wealth management professionals through its subsidiary, Matrix Financial Solutions, Inc. (“Matrix”). In October 2017, Broadridge acquired Summit Financial Disclosure, LLC (“Summit”). Summit is a full service financial document management solutions provider, including document composition and regulatory filing services. In March 2018, Broadridge acquired ActivePath Solutions Ltd (“ActivePath”). ActivePath is a digital technology company with technology that enhances the consumer experience associated with consumer statements, bills, and regulatory communications. In May 2018, Broadridge acquired FundAssist Limited (“FundAssist”). FundAssist is a regulatory, marketing and sales solutions service provider to the global investments industry. Global Technology and Operations - Broadridge is a leading global provider of middle- and back-office securities processing solutions for capital markets, wealth management, and asset management firms. Broadridge offers advanced solutions that automate the securities transaction lifecycle, from desktop productivity tools, data aggregation, performance reporting, and portfolio management to order capture and execution, trade confirmation, margin, cash management, clearance and settlement, asset servicing, reference data management, reconciliations, securities financing and collateral optimization, compliance and regulatory reporting, and accounting. Broadridge’s services help financial institutions efficiently and cost-effectively consolidate their books and records, gather and service assets under management and manage risk, thereby enabling them to focus on their core business activities. Provided on a software as a service (“SaaS”) basis within large user communities, Broadridge’s technology is a global solution. Broadridge’s multi-asset, multi-market, multi-entity and multi-currency solutions support real-time global trade processing of equity, fixed income, mutual fund, foreign exchange, and exchange traded derivatives in established and emerging markets. Broadridge also provides business process outsourcing services known as Managed Services that support the operations of its buy- and sell-side clients’ businesses. These services combine Broadridge’s technology with its operations expertise to support the entire trade lifecycle, including securities clearing and settlement, reconciliations, record-keeping, asset servicing, reference data management, regulatory and performance reporting, tax and cost basis services, revenue and trade expense management and portfolio accounting. B. Consolidation and Basis of Presentation . The Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America (“U.S.”). These financial statements present the consolidated position of the Company and include the entities in which the Company directly or indirectly has a controlling financial interest as well as various entities in which the Company has investments recorded under either the cost or equity methods of accounting. Intercompany balances and transactions have been eliminated. Amounts presented may not sum due to rounding. Certain prior period amounts have been reclassified to conform to the current year presentation. In the first quarter of fiscal year 2018, the Company adopted Accounting Standards Update No. 2016-09 “Improvements to Employee Share-Based Payment Accounting” (“ASU No. 2016-09”). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including presenting the excess tax benefits or deficits from the exercise or vesting of share-based payments in the income statement, classifying the excess tax benefits or deficits as an operating activity in the Consolidated Statements of Cash Flows rather than as a financing activity, a revision to the criteria for classifying an award as equity or liability and an option to recognize gross stock-based compensation expense with actual forfeitures recognized as they occur. In addition, ASU No. 2016-09 eliminates the excess tax benefits from the assumed proceeds calculation under the treasury stock method for purposes of calculating diluted shares. As a result of this adoption, the Company recorded excess tax benefits related to stock-based compensation awards of $40.9 million during the twelve months ended June 30, 2018 in the income tax provision on a prospective basis, whereas such benefits would previously have been recognized in equity. The Company also excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share for the twelve months ended June 30, 2018. The Company has not adjusted prior periods presented for the change in accounting for excess tax benefits in the Consolidated Financial Statements. The Company also elected to apply the change in presentation of excess tax benefits in the Consolidated Statement of Cash Flows prospectively, and as a result, excess tax benefits are classified as operating activities when realized through reductions to subsequent tax payments. This adoption resulted in an increase to net cash provided by operating activities and a corresponding decrease to net cash provided by financing activities of $40.9 million for the twelve months ended June 30, 2018. The Company has not adjusted prior periods presented for the change in classification of excess tax benefits on the Consolidated Statement of Cash Flows. The Company also elected to continue our current practice of estimating expected forfeitures as permitted by ASU No. 2016-09. In the first quarter of fiscal year 2018, the Company adopted ASU No. 2015-17 “Balance Sheet Classification of Deferred Taxes” (“ASU No. 2015-17”) on a prospective basis to all deferred tax liabilities and assets. The amendments in ASU No. 2015-17 require entities that present a classified balance sheet to classify all deferred tax liabilities and assets as a noncurrent amount. The Company’s fiscal year 2017 Consolidated Balance Sheet has not been retrospectively adjusted for the adoption of ASU No. 2015-17. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Use of Estimates. The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes thereto. These estimates are based on management’s best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions and judgment that are believed to be reasonable under the circumstances. Accordingly, actual results could differ from those estimates. The use of estimates in specific accounting policies is described further in the notes to the Consolidated Financial Statements, as appropriate. B. Revenue Recognition. The Company’s revenues are primarily generated from fees for providing services. Revenues are recognized for the two reportable segments as follows: • Investor Communication Solutions —Revenues are generated primarily from processing and distributing investor communications as well as vote processing and tabulation. The Company typically enters into agreements with clients to provide services on a fee for service basis. Fees received from the rendering of services are recognized as revenue in the period in which the services have been provided and when collectability is reasonably assured. Revenues for distribution services as well as proxy fulfillment services are recorded in revenue on a gross basis with corresponding costs including amounts remitted to nominees recorded in Cost of revenues. • Global Technology and Operations —Revenues are generated primarily from fees for transaction processing. Client service agreements often include up-front consideration as well as a recurring fee for transaction processing. Up-front implementation fees are deferred and recognized on a straight-line basis over the longer of the respective service term of the contract or the expected customer relationship period, which commences after client acceptance when the processing term begins. Fees received from processing and outsourcing services are recognized as revenue in the period in which the services have been rendered and when collectability is reasonably assured. Revenue arrangements with multiple deliverables are evaluated to determine if the deliverables (items) should be divided into more than one unit of account. An item should generally be considered a separate unit of accounting if both of the following criteria are met: 1) the delivered item(s) has value to the customer on a standalone basis; and 2) if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. Once separate units of accounting are determined, the arrangement consideration is allocated at the inception of the arrangement to all deliverables using the relative selling price method. Relative selling price is obtained from sources such as vendor-specific objective evidence, which is based on the separate selling price for that or a similar item. If such evidence is unavailable, the Company uses the best estimate of the selling price, which includes various internal factors such as pricing strategy and market factors. A significant portion of the Company’s multi-element arrangements is generated from variable transaction, volume based fees and include services that are delivered at the same time. The Company recognizes revenue related to these arrangements as the services are provided. C. Cash and Cash Equivalents. Investment securities with an original maturity of 90 days or less are considered cash equivalents. The fair value of the Company’s Cash and cash equivalents approximates carrying value due to their short term nature. D. Financial Instruments. Substantially all of the financial instruments of the Company other than Long-term debt are carried at fair values, or at carrying amounts that approximate fair values because of the short maturity of the instruments. The carrying value of the Company’s long-term fixed-rate senior notes represent the face value of the long-term fixed-rate senior notes net of the unamortized discount and net of the associated unamortized debt issuance cost. The fair value of the Company’s long-term fixed-rate senior notes is based on quoted market prices. Refer to Note 12, “Borrowings,” for a further description of the Company’s long-term fixed-rate senior notes. E. Property, Plant and Equipment. Property, plant and equipment is initially recorded at cost and depreciated over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. The estimated useful lives of assets are as follows: Equipment 3 to 5 years Buildings and Building Improvements 5 to 20 years Furniture and fixtures 4 to 7 years Refer to Note 8, “Property, Plant and Equipment, Net”, for a further description of the Company’s Property, plant and equipment, net. F. Available-For-Sale Equity Securities. Available-for-sale equity securities are non-derivatives that are reflected in Other non-current assets in the Consolidated Balance Sheets, unless management intends to dispose of the investment within twelve months of the end of the reporting period, in which case they are reflected in Other current assets in the Consolidated Balance Sheets. These investments are in entities over which the Company does not have control, joint control, or significant influence, for which the investments are initially recognized and carried at fair value. Unrealized holding gains and losses, net of tax, on available-for-sale securities are excluded from earnings and are included in Other comprehensive income (loss), net. Realized gains and losses on available-for-sale securities are included in Other non-operating (income) expenses, net, and when applicable, are reported as a reclassification adjustment, net of tax, as a component of Other comprehensive income (loss), net. Declines in the fair value of available-for-sale securities below their cost that are other-than-temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. G. Inventories. Inventories are stated at the lower of cost (determined on a first-in, first-out basis) or market. Inventory balances of $18.5 million and $17.2 million , consisting of forms and envelopes used in the mailing of proxy and other materials to our customers, are reflected in Other current assets in the Consolidated Balance Sheets at June 30, 2018 and 2017 , respectively. H. Deferred Client Conversion and Start-Up Costs. Direct costs that are incurred to set up or convert a client’s systems to function with the Company’s technology are generally deferred and recognized on a straight-line basis which commences after client acceptance when the processing term begins. To the extent deferred costs exceed related implementation fee revenues, such excess costs are amortized over the service term of the contract. Deferred costs up to the amount of the related implementation fees are recognized and capitalized over the longer of the respective service term of the contract or expected customer relationship period. These deferred costs are reflected in Other non-current assets in the Consolidated Balance Sheets at June 30, 2018 and 2017 , respectively. Refer to Note 10, “Other Non-Current Assets” for a further description of the Company’s Deferred client conversion and start-up costs. I. Deferred Data Center Costs. Data center costs relate to conversion costs associated with our principal data center systems and applications. Costs directly related to the activities necessary to make the data center usable for its intended purpose are deferred and amortized over the life of the contract on a straight-line basis commencing on the date the data center has achieved full functionality. These deferred costs are reflected in Other non-current assets in the Consolidated Balance Sheets at June 30, 2018 and 2017 , respectively. Refer to Note 10, “Other Non-Current Assets” for a further description of the Company’s Deferred data center costs. J. Goodwill. The Company does not amortize goodwill but instead tests goodwill for impairment at the reporting unit level at least annually or more frequently if circumstances indicate possible impairment. The Company tests for goodwill impairment annually in the fourth quarter of the fiscal year, using the March 31 financial statement balances. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined. Refer to Note 9, “Goodwill and Intangible Assets, Net” for a further description on the Company’s accounting for goodwill. K. Impairment of Long-Lived Assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the estimated undiscounted future cash flows expected to be generated by the asset (or asset group). If the carrying amount of an asset (or asset group) exceeds its expected estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset (or asset group) exceeds its fair value. Intangible assets with finite lives are amortized primarily on a straight-line basis over their estimated useful lives and are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Refer to Note 8, “Property, Plant and Equipment, Net” for a further description of the Company’s Property, plant and equipment, net. Refer to Note 6, “Acquisitions” and Note 9, “Goodwill and Intangible Assets, Net” for a further discussion of the Company’s Intangible assets, net. L. Equity Method Investments . The Company’s investments resulting in a 20% to 50% ownership interest are accounted for using the equity method of accounting when the ability to exercise significant influence is maintained by the Company. The Company’s share of net income or losses of equity method investments is included in losses/(income) from equity method investments in Other non-operating (income) expenses, net. Equity method investments are included in Other non-current assets. Equity method investments are reviewed for impairment by assessing if a decline in market value of the investment below the carrying value is other than temporary, which considers the intent and ability to retain the investment, the length of time and extent that the market value has been less than cost, and the financial condition of the investee. M. Foreign Currency Translation and Transactions. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars based on exchange rates in effect at the end of each period. Revenues and expenses are translated at average exchange rates during the periods. Currency transaction gains or losses are included in Non-operating expenses, net. Gains or losses from balance sheet translation are included in Accumulated other comprehensive income (loss). N. Distribution Cost of Revenues. Distribution cost of revenues consists primarily of postage related expenses incurred in connection with our Investor Communication Solutions segment, as well as Matrix Financial Solutions, Inc. administrative services expenses. These costs are reflected in Cost of revenues in the Consolidated Statements of Earnings. O. Stock-Based Compensation. The Company accounts for stock-based compensation by recognizing the measurement of stock-based compensation expense in Net earnings based on the fair value of the award on the date of grant. For stock options issued, the fair value of each stock option was estimated on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, dividend yield, risk-free interest rate, and employee exercise behavior. Expected volatilities utilized in the binomial model are based on a combination of implied market volatilities, historical volatility of the Company’s stock price, and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock option grants is derived from the output of the binomial model and represents the period of time that options granted are expected to be outstanding. For restricted stock units, the fair value of the award is based on the current fair value of the Company’s stock on the date of grant less the present value of future expected dividends discounted at the risk-free-rate derived from the U.S. Treasury yield curve in effect at the time of grant. Refer to Note 13, “Stock-Based Compensation” for a further description of the Company’s stock-based compensation. P. Internal Use Software. Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized over a three - to five -year period on a straight-line basis. For software developed or obtained for internal use, the Company’s accounting policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, the Company also capitalizes payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to direct time spent on such projects. Costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. The Company also expenses internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities. Refer to Note 9, “Goodwill and Intangible assets, Net” for a further description of the Company’s capitalized software. Q. Income Taxes. The Company accounts for income taxes under the asset and liability method, which establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s Consolidated Financial Statements or tax returns. Deferred tax assets and liabilities are recognized based on temporary differences between the consolidated financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. Judgment is required in addressing the future tax consequences of events that have been recognized in our Consolidated Financial Statements or tax returns (e.g., realization of deferred tax assets, changes in tax laws or interpretations thereof). Valuation allowances are recognized to reduce deferred tax assets when it is more likely than not that the Company will not be able to utilize the deferred tax assets attributable to net operating and capital loss carryforwards of certain subsidiaries to offset future taxable earnings. The determination as to whether a deferred tax asset will be recognized is made on a jurisdictional basis and is based on the evaluation of historical taxable income or loss, projected future taxable income, carryforward periods, scheduled reversals of deferred tax liabilities and tax planning strategies. Projected future taxable income is based on expected results and assumptions as to the jurisdiction in which the income will be earned. The assumptions used to project future taxable income requires significant judgment and are consistent with the plans and estimates used to manage the underlying businesses. Refer to Note 15, “Income Taxes” for a further description of the Company’s income taxes. R . Advertising Costs. Advertising cos ts are expensed at the time the advertising takes place. Total advertising costs were $6.3 million , $4.2 million and $2.4 million for the fiscal years ended June 30, 2018 , 2017 and 2016 , respectively. S. Concentration of Risk. In fiscal years 2018 , 2017 and 2016 , we derived approximately 21% , 20% and 25% of our consolidated revenues from our five largest clients in that particular fiscal year, respectively, the majority of whom operate in the financial services industry. Our largest single client in each of fiscal year 2018 , 2017 and 2016 accounted for approximately 6% , 6% and 7% of our consolidated revenues, respectively. T. New Accounting Pronouncements. In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU No. 2018-02”), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects of the change in the U.S. federal corporate tax rate resulting from the U.S. Tax Cuts and Jobs Act (“the Tax Act”) enacted in December 2017. ASU 2018-02 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company will early adopt ASU 2018-02 in the first quarter of fiscal year 2019 for which the pending adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Accounting for Goodwill Impairment” (“ASU No. 2017-04”). ASU No. 2017-04 removes Step 2 of the current goodwill impairment test, which currently requires a hypothetical purchase price allocation if the fair value of a reporting unit were to be less than its book value, for purposes of determining the amount of goodwill impaired. Under ASU No. 2017-04, the Company would now recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds the fair value of the reporting unit; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. ASU No. 2017-04 will be effective for the Company beginning in the first quarter of fiscal 2021, to be applied on a prospective basis. The pending adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business” (“ASU No. 2017-01”). ASU No. 2017-01 narrows the definition of a business, in part by concluding that an integrated set of assets and activities (referred to as a “set”) is not a business when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets. ASU No. 2017-01 is effective for the Company beginning in the first quarter of fiscal year 2019, to be applied on a prospective basis. The pending adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU No. 2016-02”), as amended by ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” and ASU No. 2018-11 “Leases (Topic 842): Targeted Improvements” in July 2018 (collectively referred to herein as “ASU No. 2016-02, as amended”). Under ASU No. 2016-02, as amended, all lease arrangements, with certain limited exceptions, exceeding a twelve month term must now be recognized as assets and liabilities on the balance sheet of the lessee by recording a right-of-use asset and corresponding lease obligation generally equal to the present value of the future lease payments over the lease term. Further, the income statement will reflect lease expense for leases classified as operating and amortization/interest expense for leases classified as financing, determined using classification criteria substantially similar to the current lease guidance for distinguishing between an operating and capital lease. ASU No. 2016-02, as amended, also contains certain additional qualitative and quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. ASU No. 2016-02, as amended, is effective for the Company in the first quarter of fiscal year 2020 and can be adopted using either a modified retrospective basis which requires adjustment to all comparative periods presented in the consolidated financial statements, or by recognizing a cumulative-effect adjustment to the opening balance of retained earnings at the date of initial application. The Company is currently evaluating the impact of the pending adoption and associated adoption method of ASU No. 2016-02, as amended, on the Company’s Consolidated Financial Statements. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU No. 2016-01”), which provides guidance for the recognition, measurement, presentation and disclosure of financial assets and liabilities. Under ASU No. 2016-01, changes in the fair value of publicly traded equity securities for which the Company does not have significant influence would be recorded as part of Net earnings rather than as Other comprehensive income (loss), net. In addition, equity investments that do not have a readily determinable fair value will be recorded at cost less impairment as further adjusted for observable price changes in orderly transactions for identical or similar investments of the issuer. ASU No. 2016-01 is effective for the Company beginning in the first quarter of fiscal year 2019. The guidance in ASU No. 2016-01 related to changes in fair value of publicly traded equity securities will be adopted by means of a cumulative-effect adjustment to the balance sheet as of the beginning of fiscal year 2019, while the guidance related to equity securities without readily determinable fair values will be adopted prospectively to equity investments that exist as of the beginning of fiscal year 2019. The pending adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU No. 2015-05”). ASU No. 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU No. 2015-05 does not change the accounting for a customer’s accounting for service contracts. Following adoption of ASU No. 2015-05, all software licenses within its scope are accounted for consistent with other licenses of intangible assets. The Company adopted No. 2015-05 effective in the first quarter of fiscal year 2017 prospectively to all arrangements entered into or materially modified after the effective date. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU No. 2014-09”), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU No. 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU No. 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 also requires certain enhanced disclosures, including disclosures on the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers - Deferral of the Effective Date,” which defers the effective date of ASU No. 2014-09 by one year, with an option that would permit companies to adopt the standard as early as the original effective date. As a result, ASU No. 2014-09 will be effective for the Company as of the first quarter of fiscal year 2019 for which the Company plans to adopt ASU No. 2014-09 using the modified retrospective transition method with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application along with providing certain additional disclosures as defined per ASU No. 2014-09. In March 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU No. 2016-08”), which provides clarifying implementation guidance to the principal versus agent provisions of ASU No. 2014-09. In April 2016, the FASB issued ASU No. 2016-10 “Identifying Performance Obligations and Licensing” (“ASU No. 2016-10”), which provides clarifying implementation guidance for applying ASU No. 2014-09 with respect to identifying performance obligations and the accounting for licensing arrangements. In May 2016, the FASB issued ASU No. 2016-12 “Narrow-Scope Improvements and Practical Expedients” (“ASU No. 2016-12”), which provides certain clarifying guidance for ASU No. 2014-09 relative to treatment of sales taxes, non-cash consideration, collectibility and certain aspects of transitional guidance. In December 2016, the FASB issued ASU No. 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”, which provides certain technical corrections for ASU No. 2014-09 including the impairment testing of capitalized contract costs, disclosure of remaining performance obligations, and certain other matters. Each of ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-12 and ASU No. 2016-20 have the same effective date as ASU No. 2014-09. The Company has identified certain expected impacts of the new standard on its Consolidated Financial Statements. Specifically, the Company expects to capitalize certain sales commissions, as well as capitalize certain additional costs that are part of setting up or converting a client’s systems to function with the Company’s technology, both of which are currently expensed. Additionally, the Company expects to recognize proxy revenue predominantly at the time of proxy distribution to the client’s shareholders rather than on the date of the client’s shareholder meeting, which is typically 30 days after the proxy distribution. Other expected changes to the timing of revenue recognition include deferral of revenue from certain transaction processing platform enhancements as well as acceleration of revenue from certain multi-year software license arrangements that are currently recognized over the term of the software subscription. While the annual impact of ASU No. 2014-09, and related amendments, to the Company’s income statement could vary year to year, the annual income statement impact is estimated to be less than 1% of the Company’s fiscal year 2017 revenues and less than 3% of the Company’s fiscal year 2017 earnings before income taxes. Also, the Company currently estimates the cumulative impact to opening retained earnings of adopting ASU No. 2014-09 and related amendments will be less than $100 million , driven primarily by an increase in capitalized costs. U. Subsequent Events. In preparing the accompanying Consolidated Financial Statements, the Company has reviewed events that have occurred after June 30, 2018 through the date of issuance of the Consolidated Financial Statements. Refer to Note 20, “Subsequent Events” for a description of the Company’s subsequent events. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share (“EPS”) is calculated by dividing the Company’s Net earnings by the basic Weighted-average shares outstanding for the periods presented. The Company calculates diluted EPS using the treasury stock method, which reflects the potential dilution that could occur if outstanding stock options at the presented date are exercised and restricted stock unit awards have vested. As of June 30, 2018 , 2017 and 2016 , the computation of diluted EPS did not include 1.1 million , 0.5 million and 0.7 million options to purchase Broadridge common stock, respectively, as the effect of their inclusion would have been anti-dilutive. The following table sets forth the denominators of the basic and diluted EPS computations: Years ended June 30, 2018 2017 2016 (in millions) Weighted-average shares outstanding: Basic 116.8 118.0 118.3 Common stock equivalents 3.5 2.8 3.4 Diluted 120.4 120.8 121.6 The following table sets forth the computation of basic EPS utilizing Net earnings for the fiscal year and the Company’s basic Weighted-average shares outstanding: Years ended June 30, 2018 2017 2016 (in millions, except per share amounts) Net earnings $ 427.9 $ 326.8 $ 307.5 Basic Weighted-average shares outstanding 116.8 118.0 118.3 Basic EPS $ 3.66 $ 2.77 $ 2.60 The following table sets forth the computation of diluted EPS utilizing Net earnings for the fiscal year and the Company’s diluted Weighted-average shares outstanding: Years ended June 30, 2018 2017 2016 (in millions, except per share amounts) Net earnings $ 427.9 $ 326.8 $ 307.5 Diluted Weighted-average shares outstanding 120.4 120.8 121.6 Diluted EPS $ 3.56 $ 2.70 $ 2.53 |
Interest Expense, Net
Interest Expense, Net | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Interest Expense, Net | INTEREST EXPENSE, NET Interest expense, net consisted of the following: Years ended June 30, 2018 2017 2016 (in millions) Interest expense on borrowings $ 42.4 $ 44.7 $ 28.4 Interest income (3.8 ) (2.0 ) (2.6 ) Interest expense, net $ 38.6 $ 42.7 $ 25.7 |
Other Non-Operating (Income) Ex
Other Non-Operating (Income) Expenses, Net | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Non-Operating (Income) Expenses, Net | OTHER NON-OPERATING (INCOME) EXPENSES, NET Other non-operating (income) expenses, net consisted of the following: Years ended June 30, 2018 2017 2016 (in millions) Losses from equity method investments $ 2.7 $ 5.2 $ 5.1 Foreign currency exchange (gain) loss (2.0 ) 4.8 0.5 Other (gains) losses (5.5 ) (9.3 ) — Other non-operating (income) expenses, net $ (4.7 ) $ 0.8 $ 5.6 |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Assets acquired and liabilities assumed in business combinations are recorded on the Company’s Consolidated Balance Sheets as of the respective acquisition date based upon the estimated fair values at such date. The results of operations of the business acquired by the Company are included in the Company’s Consolidated Statements of Earnings since the respective date of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed is allocated to Goodwill. The Company is providing pro forma supplemental information for the NACC acquisition as the Company deemed this acquisition to be material to the Company’s operating results. Pro forma supplemental financial information for all acquisitions, excluding NACC, is not provided as the impact of these acquisitions on the Company’s operating results, financial position or cash flows was not material for any acquisition individually. Fiscal Year 2018 Acquisitions: BUSINESS COMBINATIONS Summit In October 2017, the Company completed the acquisition of Summit, a full service financial document management solutions provider, including document composition and regulatory filing services. The aggregate purchase price was $30.6 million in cash, consisting of $26.4 million in cash payments net of cash acquired, a $1.4 million note payable to the sellers that will be settled in the future, and a contingent consideration liability with an acquisition date fair value of $2.7 million . The contingent consideration liability is payable over the next three years upon the achievement by the acquired business of certain revenue and earnings targets. The contingent consideration liability has a maximum potential pay-out of $11.0 million upon the achievement in full of the defined financial targets by the acquired business. Net tangible assets acquired in the transaction were $0.2 million . This acquisition resulted in $18.5 million of Goodwill, which is primarily tax deductible. Intangible assets acquired, which totaled $12.0 million , consist primarily of software technology and customer relationships, which are being amortized over a five -year life and seven -year life, respectively. In fiscal year 2018, the Company increased the contingent consideration liability by $1.3 million . The fair value of the remaining contingent consideration liability at June 30, 2018 is $4.0 million . ActivePath In March 2018, the Company completed the acquisition of ActivePath, a digital technology company with technology that enhances the consumer experience associated with consumer statements, bills and regulatory communications. The aggregate purchase price was $24.2 million , consisting of $21.8 million in cash payments net of cash acquired, and a $2.4 million note payable to the sellers that will be settled in the future. Net tangible liabilities assumed in the transaction were $2.3 million . This acquisition resulted in $21.0 million of Goodwill, which is not tax deductible. Intangible assets acquired, which totaled $5.6 million , consist primarily of software technology and customer relationships, which are being amortized over a five -year life and two -year life, respectively. FundAssist In May 2018, the Company completed the acquisition of FundAssist, a regulatory, marketing and sales solutions service provider to the global investments industry. The aggregate purchase price was $47.0 million , consisting of $40.6 million in cash payments net of cash acquired, and a contingent consideration liability with an acquisition date fair value of $6.4 million . The contingent consideration liability contains a revenue component which will be settled in fiscal year 2021, based on the achievement of a defined revenue target by the acquired business. Net tangible liabilities assumed in the transaction were $1.9 million . This acquisition preliminarily resulted in $28.5 million of Goodwill, which is not tax deductible. Intangible assets acquired, which totaled $20.4 million , consist primarily of customer relationships and software technology, which are being amortized over a six -year life and five -year life, respectively. The allocation of the purchase price will be finalized upon completion of the analysis of the fair values of the acquired business’ assets and liabilities, and is still subject to a working capital adjustment. ASSET ACQUISITION Purchase of Intellectual Property In February 2018, the Company paid $40.0 million to an affiliate of Inveshare, Inc. (“Inveshare”) for the delivery of blockchain technology applications, as contemplated as part of the Company’s acquisition of intellectual property assets from Inveshare. Fiscal Year 2017 Acquisitions: BUSINESS COMBINATIONS NACC In July 2016, the Company’s Investor Communication Solutions segment acquired the net assets of the North American Customer Communications (“NACC”) business of DST Systems, Inc., a leading provider of customer communication services including print and digital communication solutions, content management, postal optimization, and fulfillment. The aggregate purchase price was $410.0 million in cash, or $406.2 million net of cash acquired and other closing adjustments. Net tangible assets acquired in the transaction were $52.2 million . This acquisition resulted in $135.7 million of Goodwill, which is primarily tax deductible. Intangible assets acquired, which totaled $218.3 million , consist primarily of customer relationships and software technology, which are being amortized over a ten -year life and seven -year life, respectively. The results of NACC’s operations were included in the Company’s Consolidated Financial Statements in this Annual Report on Form 10-K from the date of acquisition. The following summarizes the allocation of purchase price for the NACC acquisition (in millions): NACC Accounts receivable, net $ 89.1 Other current assets 19.5 Property, plant and equipment 45.0 Intangible assets 218.3 Goodwill 135.7 Other non-current assets 1.6 Accounts payable (14.3 ) Accrued expenses and other current liabilities (62.9 ) Deferred taxes (21.9 ) Deferred revenue (1.1 ) Other long term liabilities (2.9 ) Consideration paid, net of cash acquired $ 406.2 Unaudited Pro Forma Financial Information The unaudited pro forma condensed consolidated results of operations in the table below are provided for illustrative purposes only and summarize the combined results of operations of Broadridge and NACC. For purposes of this pro forma presentation, the acquisition of NACC is assumed to have occurred on July 1, 2015. The pro forma financial information for all periods presented also includes the estimated business combination accounting effects resulting from this acquisition, notably amortization expense from the acquired intangible assets, interest expense from a recent bond offering, the proceeds of which were used to fund the acquisition, and certain integration related expenses. This unaudited pro forma financial information should not be relied upon as being indicative of the historical results that would have been obtained if the acquisition had actually occurred on July 1, 2015, nor of the results of operations that may be obtained in the future. Years ended June 30, 2017 2016 Revenues $ 4,142.6 $ 4,059.3 Net earnings $ 335.6 $ 312.4 Basic earnings per share $ 2.84 $ 2.64 Diluted earnings per share $ 2.78 $ 2.57 M&O In November 2016, the Company’s Global Technology and Operations segment acquired M&O Systems, Inc. (“M&O”). M&O is a provider of SaaS-based compensation management and related solutions for broker-dealers and registered investment advisors, and is now known as Broadridge Advisor Compensation Solutions. The aggregate purchase price was $24.9 million in cash, consisting of $22.4 million of cash payments as well as a $2.5 million note payable to the sellers that was settled in fiscal year 2018. Net tangible liabilities assumed in the transaction were $3.5 million . This acquisition resulted in $17.2 million of Goodwill, which is not tax deductible. Intangible assets acquired, which totaled $11.2 million , consist primarily of customer relationships and acquired software technology, which are being amortized over a seven -year life and six -year life, respectively. MAL In March 2017, the Company’s Global Technology and Operations segment acquired Message Automation Limited (“MAL”), which is a specialist provider of post-trade control solutions for sell-side and buy-side firms. The Company previously owned 25% of MAL through its acquisition of City Networks Ltd in fiscal year 2010, and purchased the remaining 75% of the company for an aggregate purchase price of $24.8 million in cash, consisting of $20.1 million of cash payments net of cash acquired, a $3.2 million note payable to the sellers that will be settled in the future, and a contingent consideration liability with an acquisition date fair value of $1.4 million . The contingent consideration liability is payable over the next four years upon the achievement by the acquired business of certain revenue and earnings targets. The contingent consideration liability has a maximum potential pay-out of $2.8 million upon the achievement in full of the defined financial targets by the acquired business. The fair value of the Company’s 25% pre-existing investment in MAL was determined to be $9.6 million , implied by the aggregate purchase price of the remaining 75% purchased, which resulted in a non-cash, nontaxable gain on investment of $9.3 million (“MAL investment gain”), included as part of Other non-operating (income) expenses, net. Net tangible liabilities assumed in the transaction were $2.9 million . This acquisition resulted in $22.6 million of Goodwill, which is not tax deductible. Intangible assets acquired, which totaled $14.7 million , consist primarily of customer relationships and acquired software technology, which are being amortized over a seven -year life and five -year life, respectively. In fiscal year 2018, the Company increased the contingent consideration liability by $0.7 million . The fair value of the remaining contingent consideration liability at June 30, 2018 is $2.2 million . ASSET ACQUISITION Purchase of Intellectual Property In September 2016, the Company’s Investor Communication Solutions segment acquired intellectual property assets from Inveshare and concurrently entered into a development agreement with an affiliate of Inveshare to use these assets to develop blockchain technology applications for Broadridge’s proxy business. The purchase price was $95.0 million , which consisted of a $90.0 million cash payment upon closing of the acquisition and a $5.0 million obligation payable which the Company paid in September 2017. Fiscal Year 2016 Acquisitions: QED In November 2015, the Company’s Investor Communication Solutions segment acquired QED Financial Systems, Inc. (“QED”), a provider of investment accounting solutions that serves public sector institutional investors. The aggregate purchase price was $15.5 million , consisting of $13.3 million of cash payments, a $1.5 million note payable to the sellers that was settled in fiscal year 2017, as well as a contingent consideration liability with an acquisition date fair value of $0.7 million that is payable over the next three years upon the achievement by the acquired business of certain revenue and earnings targets. The contingent consideration liability has a maximum potential pay-out of $3.5 million upon the achievement in full of the defined financial targets by the acquired business. Net tangible liabilities assumed in the transaction were $0.4 million . This acquisition resulted in $11.1 million of Goodwill, which is tax deductible. Intangible assets acquired, which totaled $4.8 million , consist of customer relationships and software technology, which are being amortized over a ten -year life and seven -year life, respectively. In fiscal year 2017, the Company decreased the contingent consideration liability by $0.2 million . In fiscal year 2018, the Company decreased the contingent consideration liability by $0.5 million . The contingent consideration period is complete at June 30, 2018. 4sight Financial In June 2016, the Company’s Global Technology and Operations segment acquired 4sight Financial Software Limited (“4sight”), a global provider of securities financing and collateral management systems to financial institutions. The aggregate purchase price was $39.6 million , consisting of $36.0 million of cash payments, as well as a contingent consideration liability with an acquisition date fair value of $3.6 million that is payable over the next three years upon the achievement by the acquired business of certain revenue and earnings targets. The contingent consideration liability has a maximum potential pay-out of $14.5 million upon the achievement in full of the defined financial targets by the acquired business. Net tangible liabilities assumed in the transaction were $11.7 million . This acquisition resulted in $24.5 million of Goodwill, which is not tax deductible. Intangible assets acquired, which totaled $26.8 million , consist of customer relationships and software technology, which are being amortized over a ten -year life and six -year life, respectively. During the first quarter of fiscal year 2017, goodwill was reduced by $1.8 million for the settlement of post close working capital adjustments. In fiscal year 2018, the Company decreased the contingent consideration liability by $2.6 million . The fair value of the remaining contingent consideration liability at June 30, 2018 is $0.8 million . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1 Quoted market prices in active markets for identical assets and liabilities. Level 2 Observable market-based inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments where available or based on other observable instruments. These calculations take into consideration the credit risk of both the Company and its counterparties. The Company has not changed its valuation techniques in measuring the fair value of any financial assets and liabilities during the period. The Company holds available-for-sale securities issued by a non-public entity for which the lowest level of significant inputs is unobservable. On a recurring basis, the Company uses pricing models and similar techniques for which the determination of fair value requires significant judgment by management. Accordingly, the Company classifies the available-for-sale securities as Level 3 in the table below. The fair value of the contingent consideration obligations are based on a probability weighted approach derived from the estimates of earn-out criteria and the probability assessment with respect to the likelihood of achieving those criteria. The measurement is based on significant inputs that are not observable in the market, therefore, the Company classifies this liability as Level 3 in the table below. The following tables set forth the Company’s financial assets and liabilities at June 30, 2018 and 2017 , respectively, which are measured at fair value on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 1 Level 2 Level 3 Total (in millions) Assets: Cash and cash equivalents: Money market funds (1) $ 86.8 $ — $ — $ 86.8 Other current assets: Available-for-sale securities 0.1 — — 0.1 Other non-current assets: Available-for-sale securities 66.9 — — 66.9 Total assets as of June 30, 2018 $ 153.8 $ — $ — $ 153.8 Liabilities: Contingent consideration obligations $ — $ — $ 18.6 $ 18.6 Total liabilities as of June 30, 2018 $ — $ — $ 18.6 $ 18.6 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash and cash equivalents: Money market funds (1) $ 37.9 $ — $ — $ 37.9 Other current assets: Available-for-sale securities 0.1 — — 0.1 Other non-current assets: Available-for-sale securities 50.6 — 1.1 51.7 Total assets as of June 30, 2017 $ 88.6 $ — $ 1.1 $ 89.8 Liabilities: Contingent consideration obligations $ — $ — $ 6.7 $ 6.7 Total liabilities as of June 30, 2017 $ — $ — $ 6.7 $ 6.7 (1) Money market funds include money market deposit account balances of $28.4 million and less than $0.1 million as of June 30, 2018 and 2017 , respectively. The following table sets forth an analysis of changes during fiscal years 2018 and 2017 in Level 3 financial liabilities of the Company: June 30, 2018 2017 (in millions) Beginning balance $ 6.7 $ 5.5 Additional contingent consideration incurred 13.5 2.8 Net decrease in contingent consideration liability (1.1 ) (0.6 ) Foreign currency impact on contingent consideration liability 0.2 (0.4 ) Payments (0.7 ) (0.7 ) Ending balance $ 18.6 $ 6.7 The Company incurred Level 3 fair value asset impairments of $1.1 million in fiscal year 2018 , and did not incur any Level 3 fair value asset impairments during fiscal years 2017 and 2016 . Changes in economic conditions or model based valuation techniques may require the transfer of financial instruments between levels. The Company’s policy is to record transfers between levels if any, as of the beginning of the fiscal year. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment at cost and Accumulated depreciation at June 30, 2018 and 2017 are as follows: June 30, 2018 2017 (in millions) Property, plant and equipment: Land and buildings $ 2.6 $ 2.6 Equipment 432.1 425.4 Furniture, leaseholds and other 161.5 139.1 596.3 567.1 Less: Accumulated depreciation (392.2 ) (369.0 ) Property, plant and equipment, net $ 204.1 $ 198.1 In fiscal years 2018 and 2017 , Property, plant and equipment and Accumulated depreciation were each reduced by $40.3 million and $91.7 million , respectively, for asset retirements related to fully depreciated property, plant and equipment no longer in use. Depreciation expense for Property, plant and equipment for the years ended June 30, 2018 , 2017 and 2016 was as follows: Years ended June 30, 2018 2017 2016 (in millions) Depreciation expense for property, plant and equipment $ 63.4 $ 53.5 $ 38.7 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET Changes in Goodwill for the fiscal years ended June 30, 2018 and 2017 are as follows: Investor Communication Solutions Global Technology and Operations Total (in millions) Goodwill, gross, at July 1, 2016 $ 689.7 $ 309.6 $ 999.3 Additions 135.7 39.8 175.5 Fair value adjustments — (0.5 ) (0.5 ) Foreign currency translation and other (4.4 ) (10.5 ) (14.9 ) Accumulated impairment losses — — — Goodwill, net, at June 30, 2017 $ 821.0 $ 338.4 $ 1,159.3 Goodwill, gross, at June 30, 2017 $ 821.0 $ 338.4 $ 1,159.3 Transfers (a) (38.7 ) 38.7 — Additions 88.2 — 88.2 Fair value adjustments — — — Foreign currency translation and other 13.9 (6.5 ) 7.4 Accumulated impairment losses — — — Goodwill, net, at June 30, 2018 $ 884.4 $ 370.5 $ 1,254.9 (a) In connection with an organizational change made in the second quarter of fiscal year 2018, in order to further align and enhance our portfolio of services, certain discrete services that were previously reported in our Investor Communication Solutions reportable segment are now reported within the Global Technology and Operations reportable segment. As a result, $38.7 million of goodwill was reclassified from the ICS segment to the GTO segment based on a relative fair value analysis. Additions for the fiscal year ended June 30, 2018 include $18.5 million , $21.0 million and $28.5 million for the acquisitions of Summit, ActivePath and FundAssist, respectively. Additions for the fiscal year ended June 30, 2017 include $135.7 million , $17.2 million and $22.6 million for the acquisitions of NACC, M&O and MAL, respectively. Fair value adjustments for fiscal year 2017 primarily represent reductions in goodwill of $1.8 million for 4sight related to the settlement of post-closing working capital adjustments, partially offset by a $1.2 million increase in the fair value of the contingent consideration liability for 4sight that resulted from the finalization of the purchase price allocation in fiscal year 2017 (see Note 6 , “Acquisitions”). During fiscal years 2018 , 2017 and 2016 , the Company performed the required impairment tests of Goodwill and determined that there was no impairment. The Company also performs a sensitivity analysis under Step 1 of the goodwill impairment test assuming hypothetical reductions in the fair values of the reporting units. A 10% change in our estimates of projected future operating cash flows, discount rates, or terminal value growth rates, which are the most significant estimates used in our calculations of the fair values of the reporting units, would not result in an impairment of our goodwill. Intangible assets at cost and accumulated amortization at June 30, 2018 and 2017 are as follows: June 30, 2018 2017 Original Accumulated Intangible Original Accumulated Intangible (in millions) Software licenses $ 117.5 $ (87.5 ) $ 30.0 $ 124.6 $ (91.1 ) $ 33.6 Acquired software technology 117.8 (73.0 ) 44.8 106.9 (65.1 ) 41.9 Customer contracts and lists 453.8 (162.1 ) 291.7 435.3 (128.3 ) 307.0 Acquired intellectual property 135.0 (36.9 ) 98.1 95.0 (15.0 ) 80.0 Other intangibles 47.7 (18.2 ) 29.5 38.1 (14.2 ) 24.0 $ 871.8 $ (377.7 ) $ 494.1 $ 800.0 $ (313.6 ) $ 486.4 In fiscal years 2018 and 2017 , intangible assets and accumulated amortization were reduced by $36.7 million and $0.6 million , respectively, for asset retirements related to fully amortized intangibles. Other intangibles consist of capitalized internal use software and the following intangible assets acquired in business acquisitions: intellectual property, covenants, patents, and trademarks. All of the intangible assets have finite lives and, as such, are subject to amortization. The weighted-average remaining useful life of the intangible assets is as follows: Weighted-Average Remaining Useful Life (Years) Acquired software technology 4.2 Software licenses 2.8 Customer contracts and lists 7.1 Acquired intellectual property 3.7 Other intangibles 4.3 Total weighted-average remaining useful life 5.7 Amortization of intangibles for the years ended June 30, 2018 , 2017 and 2016 was as follows: Years ended June 30, 2018 2017 2016 (in millions) Amortization expense for intangible assets $ 100.2 $ 87.7 $ 45.8 Estimated remaining amortization expenses of the Company’s existing intangible assets for the next five fiscal years and thereafter are as follows: Years Ending June 30, (in millions) 2019 $ 104.9 2020 99.0 2021 89.6 2022 66.2 2023 50.7 Thereafter 83.7 |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Non-Current Assets | OTHER NON-CURRENT ASSETS Other non-current assets consisted of the following: June 30, 2018 2017 (in millions) Deferred client conversion and start-up costs $ 186.0 $ 162.4 Deferred data center costs (a) 35.0 40.1 Long-term investments 80.3 63.4 Long-term broker fees 28.7 24.2 Other 30.5 26.4 Total $ 360.5 $ 316.4 (a) Represents deferred data center costs associated with the Company’s information technology services agreements with International Business Machines Corporation (“IBM”). Please refer to Note 16, “Contractual Commitments, Contingencies and Off-Balance Sheet Arrangements” for a further discussion. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses and Other Current Liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: June 30, 2018 2017 (in millions) Employee compensation and benefits $ 233.2 $ 221.2 Accrued broker fees 85.2 79.5 Accrued taxes 25.3 80.2 Accrued dividend payable 42.5 37.9 Customer deposits 39.2 39.5 Other 53.9 37.1 Total $ 479.2 $ 495.3 |
Borrowings
Borrowings | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Outstanding borrowings and available capacity under the Company’s borrowing arrangements were as follows: Expiration Date Principal amount outstanding at June 30, 2018 Carrying value at June 30, 2018 Carrying value at June 30, 2017 Unused Fair Value at June 30, 2018 (in millions) Long-term debt Fiscal 2017 Revolving Credit Facility February 2022 $ 160.0 $ 160.0 $ 210.0 $ 840.0 $ 160.0 Fiscal 2014 Senior Notes September 2020 400.0 398.5 397.9 — 405.8 Fiscal 2016 Senior Notes June 2026 500.0 494.8 494.1 — 474.4 $ 1,060.0 $ 1,053.4 $ 1,102.1 $ 840.0 $ 1,040.2 Total debt $ 1,060.0 $ 1,053.4 $ 1,102.1 $ 840.0 $ 1,040.2 Future principal payments on the Company’s outstanding debt are as follows: Years ending June 30, 2019 2020 2021 2022 2023 Thereafter Total (in millions) $ — $ — $ 400.0 $ 160.0 $ — $ 500.0 $ 1,060.0 Fiscal 2017 Revolving Credit Facility: On February 6, 2017, the Company entered into an amended and restated $1.0 billion five -year revolving credit facility (the “Fiscal 2017 Revolving Credit Facility”), which replaced the $750.0 million five -year revolving credit facility entered into during August 2014 (the “Fiscal 2015 Revolving Credit Facility”) (together the “Revolving Credit Facilities”). The Fiscal 2017 Revolving Credit Facility is comprised of a $900.0 million U.S. dollar tranche and a $100.0 million multicurrency tranche. At June 30, 2018 , the Company had $ 160.0 million in outstanding borrowings and had unused available capacity of $840.0 million under the Fiscal 2017 Revolving Credit Facility. The weighted-average interest rate on the Revolving Credit Facilities was 2.44% , 1.79% and 1.30% for the fiscal years ended June 30, 2018 , 2017 and 2016 , respectively. The fair value of the variable-rate Fiscal 2017 Revolving Credit Facility borrowings at June 30, 2018 approximates carrying value and has been classified as a Level 2 financial liability. Borrowings under the Fiscal 2017 Revolving Credit Facility can be made in tranches up to 360 days and bear interest at LIBOR plus 100 basis points . In addition, the Fiscal 2017 Revolving Credit Facility has an annual facility fee equal to 12.5 basis points on the entire facility, similar to the previous Fiscal 2015 Revolving Credit Facility. The annual facility fees for the Revolving Credit Facilities totaled $1.3 million and $1.1 million for the fiscal years ended June 30, 2018 and June 30, 2017 , respectively. The Company incurred $1.8 million in costs to establish the Fiscal 2017 Revolving Credit Facility. As of June 30, 2018 , $2.1 million of these costs remain to be amortized (including $0.2 million and $0.6 million of issuance costs from the Fiscal 2012 Revolving Credit Facility and Fiscal 2015 Revolving Credit Facility, respectively). Such costs are capitalized in Other non-current assets in the Consolidated Balance Sheets and are being amortized to Interest expense, net on a straight-line basis, which approximates the effective interest method, over the term of this facility. The Company may voluntarily prepay, in whole or in part and without premium or penalty, borrowings under the Fiscal 2017 Revolving Credit Facility at any time. The Fiscal 2017 Revolving Credit Facility is subject to certain covenants, including a leverage ratio. At June 30, 2018 , the Company is in compliance with all covenants of the Fiscal 2017 Revolving Credit Facility. Fiscal 2014 Senior Notes : In August 2013, the Company completed an offering of $400.0 million in aggregate principal amount of senior notes (the “ Fiscal 2014 Senior Notes ”). The Fiscal 2014 Senior Notes will mature on September 1, 2020 and bear interest at a rate of 3.95% per annum. Interest on the Fiscal 2014 Senior Notes is payable semi-annually in arrears on March 1st and September 1st of each year. The Fiscal 2014 Senior Notes were issued at a price of 99.871% (effective yield to maturity of 3.971% ). The indenture governing the Fiscal 2014 Senior Notes contains certain covenants including covenants restricting the Company’s ability to create or incur liens securing indebtedness for borrowed money and to enter into certain sale-leaseback transactions. At June 30, 2018 , the Company is in compliance with the covenants of the indenture governing the Fiscal 2014 Senior Notes. The indenture also contains covenants regarding the purchase of the Fiscal 2014 Senior Notes upon a change of control triggering event. The Company may redeem the Fiscal 2014 Senior Notes in whole or in part at any time before their maturity. The Company incurred $4.3 million in debt issuance costs to establish the Fiscal 2014 Senior Notes. These costs have been capitalized and are being amortized to Interest expense, net on a straight-line basis over the seven -year term. As of June 30, 2018 and June 30, 2017 , $ 1.3 million and $1.9 million , respectively, of debt issuance costs remain to be amortized and have been presented as a direct deduction from the carrying value of the Fiscal 2014 Senior Notes. The fair value of the fixed-rate Fiscal 2014 Senior Notes at June 30, 2018 and 2017 was $405.8 million and $419.1 million , respectively, based on quoted market prices and has been classified as a Level 1 financial liability (as defined in Note 7 , “Fair Value of Financial Instruments”). Fiscal 2016 Senior Notes: In June 2016, the Company completed an offering of $500.0 million in aggregate principal amount of senior notes (the “Fiscal 2016 Senior Notes”). The Fiscal 2016 Senior Notes will mature on June 27, 2026 and bear interest at a rate of 3.40% per annum. Interest on the Fiscal 2016 Senior Notes is payable semi-annually in arrears on June 27 and December 27 of each year. The Fiscal 2016 Senior Notes were issued at a price of 99.589% (effective yield to maturity of 3.449% ). The indenture governing the Fiscal 2016 Senior Notes contains certain covenants including covenants restricting the Company’s ability to create or incur liens securing indebtedness for borrowed money, to enter into certain sale-leaseback transactions, and to engage in mergers or consolidations and transfer or lease all or substantially all of our assets. At June 30, 2018 , the Company is in compliance with the covenants of the indenture governing the Fiscal 2016 Senior Notes. The indenture also contains covenants regarding the purchase of the Fiscal 2016 Senior Notes upon a change of control triggering event. The Company may redeem the Fiscal 2016 Senior Notes in whole or in part at any time before their maturity. The Company incurred $4.5 million in debt issuance costs to establish the Fiscal 2016 Senior Notes. These costs have been capitalized and are being amortized to Interest expense, net on a straight-line basis, which approximates the effective interest method, over the ten -year term. As of June 30, 2018 and June 30, 2017 , $3.5 million and $4.0 million , respectively, of debt issuance costs remain to be amortized and have been presented as a direct deduction from the carrying value of the Fiscal 2016 Senior Notes. The fair value of the fixed-rate Fiscal 2016 Senior Notes at June 30, 2018 and June 30, 2017 was $474.4 million and $494.6 million , respectively, based on quoted market prices and has been classified as a Level 1 financial liability (as defined in Note 7 , “Fair Value of Financial Instruments”). The Fiscal 2017 Revolving Credit Facility, Fiscal 2014 Senior Notes, and Fiscal 2016 Senior Notes are senior unsecured obligations of the Company and are ranked equally in right of payment. In addition, certain of the Company’s subsidiaries established unsecured, uncommitted lines of credit with banks. As of June 30, 2018 and 2017 , respectively, there were no outstanding borrowings under these lines of credit. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Incentive Equity Awards . The Broadridge Financial Solutions, Inc. 2007 Omnibus Award Plan (the “2007 Plan”) provides for the granting of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, phantom stock awards, stock bonuses and performance compensation awards to employees, non-employee directors, and other key individuals who perform services for the Company. The accounting for stock-based compensation requires the measurement of stock-based compensation expense to be recognized in Net earnings based on the fair value of the award on the date of grant. In accordance with the 2007 Plan, the Company’s stock-based compensation consists of the following: Stock Options: Stock options are granted to employees at exercise prices equal to the fair market value of the Company’s common stock on the dates of grant. Stock options are generally issued under a graded vesting schedule, meaning that they vest ratably over four years , and have a term of 10 years . A portion of the stock options granted in fiscal year 2014 and fiscal year 2018 have a cliff vesting schedule meaning that they vest in four years from the grant date and have a term of 10 years. Compensation expense for stock options under a graded vesting schedule is recognized over the requisite service period for each separately vesting portion of the stock option award. Compensation expense for stock options under a cliff vesting schedule is recognized equally over the four year vesting period with 25 percent of the cost recognized over each 12 month period net of estimated forfeitures. Time-based Restricted Stock Units: The Company has a time-based restricted stock unit (“RSU”) program under which RSUs representing the right to receive one share of the Company’s common stock for each vested RSU are granted. Time-based RSUs typically vest two and one-half years from the date of grant. The Company records stock compensation expense for time-based RSUs net of estimated forfeitures on a straight-line basis over the vesting period. Performance-based Restricted Stock Units: The Company has a performance-based RSU program under which RSUs representing the right to receive one share of the Company’s common stock for each vested RSU are granted. RSUs vest upon the achievement by the Company of specific performance metrics. The Company records stock compensation expense for performance-based RSUs net of estimated forfeitures on a straight-line basis over the performance period, plus a subsequent vesting period, which typically totals approximately two and one-half years from the date of grant. The activity related to the Company’s incentive equity awards for the fiscal years ended June 30, 2018 , 2017 and 2016 consisted of the following: Stock Options Time-based RSUs Performance-based RSUs Number of Options Weighted Average Exercise Price Number of Shares Weighted Average Grant-Date Fair Value Number of Shares Weighted Average Grant-Date Fair Value Balances at July 1, 2015 7,673,947 $ 29.00 1,526,460 $ 34.51 547,865 $ 33.94 Granted 679,995 52.51 574,889 52.28 262,292 50.79 Exercised (a) (1,192,266 ) 20.83 — — — — Vesting of RSUs (b) — — (758,964 ) 31.30 (264,868 ) 30.30 Expired/forfeited (102,609 ) 34.32 (139,489 ) 40.45 (76,773 ) 23.43 Balances at June 30, 2016 7,059,067 $ 32.57 1,202,896 $ 44.34 468,516 $ 47.15 Granted 568,465 67.15 531,301 64.38 225,731 64.52 Exercised (a) (2,384,449 ) 25.44 — — — — Vesting of RSUs (b) — — (586,617 ) 40.00 (171,082 ) 38.50 Expired/forfeited (105,442 ) 36.13 (72,987 ) 53.74 (52,303 ) 50.38 Balances at June 30, 2017 5,137,641 $ 39.63 1,074,593 $ 55.98 470,862 $ 58.26 Granted 1,079,442 93.42 456,217 78.86 198,485 76.71 Exercised (a) (1,654,877 ) 31.09 — — — — Vesting of RSUs (b) — — (463,561 ) 52.86 (150,068 ) 52.96 Expired/forfeited (83,918 ) 42.89 (84,850 ) 60.18 (123,590 ) 43.00 Balances at June 30, 2018 (c) 4,478,288 $ 55.69 982,399 $ 67.72 395,689 $ 74.29 (a) Stock options exercised during the fiscal years ended June 30, 2018 , 2017 and 2016 had intrinsic values of $116.3 million , $104.7 million and $41.3 million , respectively. (b) Time-based RSUs that vested during the fiscal years ended June 30, 2018 , 2017 and 2016 had a total fair value of $50.6 million , $39.8 million and $44.9 million , respectively. Performance-based RSUs that vested during the fiscal years ended June 30, 2018 , 2017 and 2016 had a total fair value of $19.1 million , $11.6 million and $15.6 million , respectively. (c) As of June 30, 2018 , the Company’s outstanding stock options using the fiscal year-end share price of $115.10 had an aggregate intrinsic value of $266.1 million . As of June 30, 2018 , the Company’s outstanding “in the money” vested stock options using the fiscal year-end share price of $115.10 had an aggregate intrinsic value of $191.5 million . As of June 30, 2018 , time-based RSUs and performance-based RSUs expected to vest using the fiscal year-end share price of $115.10 (approximately 0.9 million and 0.4 million shares, respectively) had an aggregate intrinsic value of $106.2 million and $44.8 million , respectively. The tables below summarize information regarding the Company’s outstanding and exercisable stock options as of June 30, 2018 : Outstanding Options Options Outstanding Weighted Weighted Aggregate Intrinsic Value (in millions) (a) Range of Exercise Prices $0.01 to $20.00 37,500 0.84 $ 17.26 $20.01 to $35.00 825,657 3.80 $ 23.07 $35.01 to $50.00 734,675 5.63 $ 37.57 $50.01 to $65.00 1,301,084 7.11 $ 52.10 $65.01 to $80.00 506,692 8.62 $ 67.32 $80.01 to $95.00 1,072,680 9.61 $ 93.41 4,478,288 6.97 $ 55.69 $ 266.1 Exercisable Options Range of Exercise Prices Options Exercisable Weighted Weighted Aggregate Intrinsic Value (in millions) (a) $0.01 to $20.00 37,500 0.84 $ 17.26 $20.01 to $35.00 825,657 3.80 $ 23.07 $35.01 to $50.00 734,675 5.63 $ 37.57 $50.01 to $65.00 774,976 7.06 $ 52.42 $65.01 to $80.00 111,435 8.62 $ 67.32 $80.01 to $95.00 38,591 9.39 $ 88.66 2,522,834 5.58 $ 39.18 $ 191.5 (a) Calculated using the closing stock price on the last trading day of fiscal year 2018 of $115.10 , less the option exercise price, multiplied by the number of instruments. Stock-based compensation expense of $55.1 million , $46.1 million , and $43.1 million was recognized in the Consolidated Statements of Earnings for the fiscal years ended June 30, 2018 , 2017 and 2016 , respectively, as well as related tax benefits of $15.7 million , $15.9 million , and $15.4 million , respectively. As of June 30, 2018 , the total remaining unrecognized compensation cost related to non-vested stock options and RSU awards amounted to $18.7 million and $43.1 million , respectively, which will be amortized over the weighted-average remaining requisite service periods of 3.2 years and 1.6 years , respectively. In April 2013, the Company began reissuing treasury stock to satisfy stock option exercises and issuances under the Company’s RSU awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase programs. The Company repurchased 2.2 million shares in fiscal year 2018 under our share repurchase program as compared to 4.6 million shares repurchased in fiscal year 2017 , which excludes shares withheld by the Company to cover payroll taxes on the vesting of RSU awards, which are also accounted for as treasury stock. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions. The following table presents the assumptions used to determine the fair values of the stock option grants using the Binomial options pricing model during the fiscal years ended June 30, 2018 , 2017 and 2016 : Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Graded Vesting Risk-free interest rate 2.7 % 2.1 % 1.4 % Dividend yield 1.6 % 2.0 % 2.3 % Weighted-average volatility factor 23.8 % 23.1 % 26.7 % Weighted-average expected life (in years) 6.5 6.5 6.5 Weighted-average fair value (in dollars) $ 22.16 $ 13.74 $ 10.82 Fiscal Year Ended Cliff Vesting Risk-free interest rate 2.7 % Dividend yield 1.6 % Weighted-average volatility factor 23.8 % Weighted-average expected life (in years) 6.0 Weighted-average fair value (in dollars) $ 21.65 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS A. Defined Contribution Savings Plans. The Company sponsors a 401(k) savings plan covering eligible U.S. employees of the Company. This plan provides a base contribution plus Company matching contributions on a portion of employee contributions. An Executive Retirement and Savings Plan (the “ERSP”) was adopted effective January 1, 2015 for those executives who are not participants in the Broadridge SORP or Broadridge SERP (defined below). The ERSP is a defined contribution plan that allows eligible full-time U.S. employees to defer compensation until a later date and the Company will match a portion of the deferred compensation above the qualified defined contribution compensation and deferral limitations. The costs recorded by the Company for these plans were: Years ended June 30, 2018 2017 2016 (in millions) 401(k) savings plan $ 34.4 $ 35.2 $ 27.3 ERSP 1.9 1.8 1.2 Total $ 36.3 $ 37.0 $ 28.5 B. Defined Benefit Pension Plans. The Company sponsors a Supplemental Officer Retirement Plan (the “Broadridge SORP”). The Broadridge SORP is a defined benefit plan pursuant to which the Company will pay supplemental pension benefits to certain key officers upon retirement based upon the officers’ years of service and compensation. The Broadridge SORP is currently unfunded. The Broadridge SORP was closed to new participants beginning in fiscal year 2015. The Company also sponsors a Supplemental Executive Retirement Plan (the “Broadridge SERP”). The Broadridge SERP is a defined benefit plan pursuant to which the Company will pay supplemental pension benefits to certain key executives upon retirement based upon the executives’ years of service and compensation. The Broadridge SERP is currently unfunded. The Broadridge SERP was closed to new participants beginning in fiscal year 2015. The amounts charged to expense by the Company for these plans were: Years ended June 30, 2018 2017 2016 (in millions) SORP $ 4.3 $ 3.6 $ 3.2 SERP 0.6 0.7 0.6 Total $ 4.9 $ 4.3 $ 3.8 The benefit obligation to the Company under these plans at June 30, 2018 , 2017 and 2016 was: Years ended June 30, 2018 2017 2016 (in millions) SORP $ 38.3 $ 35.4 $ 30.0 SERP 4.5 4.3 3.6 Total $ 42.8 $ 39.7 $ 33.6 C. Other Post-retirement Benefit Plan. The Company sponsors an Executive Retiree Health Insurance Plan. It is a post-retirement benefit plan pursuant to which the Company helps defray the health care costs of certain eligible key executive retirees and qualifying dependents, based upon the retirees’ age and years of service, until they reach the age of 65 . The plan is currently unfunded. The amounts charged to expense by the Company for this plan were: Years ended June 30, 2018 2017 2016 (in millions) Executive Retiree Health Insurance Plan $ 0.4 $ 0.3 $ 0.3 The benefit obligation to the Company under this plan at June 30, 2018 , 2017 and 2016 was: Years ended June 30, 2018 2017 2016 (in millions) Executive Retiree Health Insurance Plan $ 5.3 $ 4.9 $ 4.2 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Earnings before income taxes shown below are based on the geographic location to which such earnings are attributable. Years Ended June 30, 2018 2017 2016 (in millions) Earnings before income taxes: U.S. $ 450.0 $ 398.6 $ 389.2 Foreign 111.1 89.5 79.7 Total $ 561.0 $ 488.1 $ 468.9 The Provision for income taxes consists of the following components: Years Ended June 30, 2018 2017 2016 (in millions) Current: U.S. Domestic $ 89.4 $ 138.2 $ 134.9 Foreign 43.4 24.8 23.9 State 9.6 13.0 8.5 Total current 142.4 176.0 167.3 Deferred: U.S. Domestic (13.6 ) (7.9 ) (7.4 ) Foreign 4.9 (4.2 ) (0.4 ) State (0.6 ) (2.5 ) 1.9 Total deferred (9.3 ) (14.7 ) (5.9 ) Total Provision for income taxes $ 133.1 $ 161.4 $ 161.4 Years Ended June 30, 2018 % 2017 % 2016 % (in millions) Provision for income taxes at U.S. statutory rate $ 157.4 28.1 $ 170.8 35.0 $ 164.1 35.0 Increase (decrease) in Provision for income taxes from: State taxes, net of federal tax 9.4 1.7 6.7 1.4 7.0 1.5 Foreign taxes (2.4 ) (0.4 ) (6.9 ) (1.4 ) (5.6 ) (1.2 ) Valuation allowances (5.0 ) (0.9 ) (0.6 ) (0.1 ) (0.3 ) (0.1 ) Non-taxable investment gain — — (3.3 ) (0.7 ) — — Stock-Based Compensation - Excess Tax Benefits (40.9 ) (7.3 ) — — — — Tax Act Items 15.4 2.7 — — — — Other (0.8 ) (0.1 ) (5.3 ) (1.1 ) (3.8 ) (0.7 ) Total Provision for income taxes $ 133.1 23.7 $ 161.4 33.1 $ 161.4 34.4 The Provision for income taxes and effective tax rates for the fiscal year ended June 30, 2018 were $133.1 million and 23.7% , compared to $161.4 million and 33.1% , for the fiscal year ended June 30, 2017 , respectively. The decrease in the effective tax rate for the fiscal year ended June 30, 2018 compared to the fiscal year ended June 30, 2017 is primarily due to the recognition of $40.9 million of excess tax benefits attributable to stock-based compensation as well as a reduced U.S. federal tax rate, partially offset by the $15.4 million of net tax charges relating to the enactment of the Tax Act. In the fiscal year ending June 30, 2018, the Company’s federal corporate statutory income tax rate was subject to a full year blended tax rate of 28.1% . Notwithstanding the reduction in the federal corporate statutory income tax rate, the Tax Act required companies to pay a transition tax on earnings of certain foreign subsidiaries at December 31, 2017. The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) which provides the Company with up to one year to finalize accounting for the impacts of the Tax Act. Under SAB 118, the Company has estimated the transition tax to be $12.4 million . The Company also accrued $18.4 million of foreign jurisdiction withholding taxes with respect to the earnings deemed repatriated for U.S. tax purposes. Partially offsetting the $30.8 million of aggregate expense related to foreign earnings is a $15.3 million benefit related to the remeasurement of the Company’s net U.S. federal and state deferred tax liabilities. In addition, beginning with fiscal year 2019, the Company will be required under the Tax Act to determine on an annual basis if it has a U.S. taxable income inclusion under the “Global Intangible Low Tax Income (GILTI)” rules with respect to its foreign subsidiaries. To the extent there is a taxable inclusion, the Company has elected to account for the U.S. tax on the GILTI inclusion as a period cost and therefore has not recorded deferred taxes relating to the GILTI inclusion on its foreign subsidiaries for fiscal year 2018. The final impact of the transition tax and the foreign jurisdiction withholding taxes may differ from the estimated amounts due to availability of additional information to more precisely compute the amount of tax, additional regulatory guidance that may be issued, and changes in assumptions. Beginning July 1, 2018, the Company will be subject to a U.S. federal corporate statutory income tax rate of 21.0%. The Provision for income taxes and effective tax rates for the fiscal year ended June 30, 2017 were $161.4 million and 33.1% , compared to $161.4 million and 34.4% , for the fiscal year ended June 30, 2016, respectively. The effective tax for the fiscal year ended June 30, 2017 was impacted by the recognition of the non-cash, nontaxable $9.3 million MAL investment gain. Excluding that investment gain, the effective tax rate for the fiscal year ended June 30, 2017 was 33.7% . In addition to the tax benefit from the MAL investment gain, the effective tax rate also declined as a result of a $2.2 million increase in the current year accrual for the Section 199 domestic production activities deduction relating to prior tax years. The effective tax rate was also positively impacted by approximately 20 basis points due to a more favorable mix of geographical income. As of June 30, 2018 , the Company had approximately $466.4 million of accumulated earnings and profits attributable to foreign subsidiaries. The Company considers $175.8 million of accumulated earnings attributable to foreign subsidiaries to be permanently reinvested outside the U.S. and has not determined the cost to repatriate such earnings since it is not practicable to calculate the amount of income taxes payable in the event all such foreign earnings are repatriated. The Company does not consider the remaining $290.6 million of accumulated earnings to be permanently reinvested outside the U.S. Under SEC Staff Accounting Bulletin 118, the Company has provisionally accrued approximately $10.3 million of foreign withholding taxes and $0.8 million of state income taxes attributable to such earnings. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. Significant components of the Company’s deferred tax assets and liabilities at June 30, 2018 and 2017 were as follows: June 30, 2018 2017 (in millions) Classification: Current deferred tax assets (included in Other current assets) $ — $ 26.1 Long-term deferred tax assets (included in Other non-current assets) 9.2 2.7 Current deferred tax liabilities (included in Accrued expenses and other current liabilities) — (0.8 ) Long-term deferred tax liabilities (57.9 ) (82.0 ) Net deferred tax liabilities $ (48.8 ) $ (54.0 ) Components: Deferred tax assets: Accrued expenses not currently deductible $ 3.5 $ 5.6 Depreciation 2.2 18.8 Compensation and benefits not currently deductible 51.7 70.3 Net operating and capital losses 12.1 20.4 Tax credits 5.2 4.4 Other 6.6 6.8 Total deferred tax assets 81.3 126.3 Less: Valuation allowances (3.8 ) (9.3 ) Deferred tax assets, net 77.6 117.0 Deferred tax liabilities: Goodwill and identifiable intangibles 93.4 141.4 Net deferred expenses 15.5 20.2 Unremitted earnings 11.1 — Other 6.2 9.4 Deferred tax liabilities 126.3 171.0 Net deferred tax liabilities $ (48.8 ) $ (54.0 ) The Company has estimated foreign net operating loss carryforwards of approximately $15.2 million as of June 30, 2018 of which $2.2 million expires in 2019 through 2027 and of which $13.0 million has an indefinite utilization period. In addition, the Company has estimated U.S. federal net operating loss carryforwards of approximately $22.5 million , which expire in 2019 through 2030 . Valuation allowances are recognized to reduce deferred tax assets when it is more likely than not that the Company will not be able to utilize the deferred tax assets attributable to net operating and capital loss carryforwards of certain subsidiaries to offset future taxable earnings. The Company has recorded valuation allowances of $ 3.8 million and $ 9.3 million at June 30, 2018 and 2017 , respectively. The determination as to whether a deferred tax asset will be recognized is made on a jurisdictional basis and is based on the evaluation of historical taxable income or loss, projected future taxable income, carryforward periods, scheduled reversals of deferred tax liabilities and tax planning strategies. Projected future taxable income is based on expected results and assumptions as to the jurisdiction in which the income will be earned. The assumptions used to project future taxable income require significant judgment and are consistent with the plans and estimates used to manage the underlying businesses. In the next twelve months, the Company does not expect a material change to its net reserve balance for unrecognized tax benefits. The following table summarizes the activity related to the Company’s gross unrecognized tax positions: Fiscal Year Ended June 30, 2018 2017 2016 (in millions) Beginning balance $ 18.7 $ 18.2 $ 24.4 Gross increase related to prior period tax positions 3.5 0.6 0.6 Gross increase related to current period tax positions 3.0 2.7 2.6 Gross decrease related to prior period tax positions (2.4 ) (2.8 ) (9.4 ) Ending balance $ 22.8 $ 18.7 $ 18.2 As of June 30, 2018, 2017 and 2016 the net reserve for unrecognized tax positions recorded by the Company that is included in the preceding table of gross unrecognized tax positions, was $19.4 million , $13.4 million , and $12.9 million respectively, and if reversed in full, would favorably affect the effective tax rate by these amounts, respectively. The $2.4 million , $2.8 million and $9.4 million gross decreases in fiscal years 2018 , 2017 and 2016, respectively, for prior period tax positions related to certain tax audit settlements and certain state, federal and foreign statute of limitation expirations. During the fiscal year ended June 30, 2018 , the Company adjusted accrued interest by approximately $0.5 million and recognized a total liability for interest on unrecognized tax positions of $3.7 million ; in the fiscal year ended June 30, 2017, the Company adjusted accrued interest by approximately $(0.2) million and recognized a total liability of $3.2 million for interest on unrecognized tax positions; in the fiscal year ended June 30, 2016 the Company adjusted accrued interest by approximately $(0.3) million and recognized a total liability of $3.4 million for interest on unrecognized tax positions. The Company is regularly subject to examination of its income tax returns by U.S. Federal, state and foreign income tax authorities. The tax years that are currently open and could be subject to income tax audits for U.S. federal and most state and local jurisdictions are fiscal years ending June 30, 2014 through June 30, 2018, and for Canadian operations that could be subject to audit in Canada, fiscal years ending June 30, 2013 through June 30, 2018. A change in the assessment of the outcomes of such matters could materially impact our Consolidated Financial Statements. |
Contractual Commitments, Contin
Contractual Commitments, Contingencies, and Off-Balance Sheet Arrangements | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Commitments, Contingencies, and Off-Balance Sheet Arrangements | CONTRACTUAL COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ARRANGEMENTS Data Center Agreements In March 2010, the Company and International Business Machines Corporation (“IBM”) entered into an Information Technology Services Agreement (the “IT Services Agreement”), under which IBM provides certain aspects of the Company’s information technology infrastructure. Under the IT Services Agreement, IBM provides a broad range of technology services to the Company including supporting its mainframe, midrange, open systems, network and data center operations, as well as providing disaster recovery services. The Company has the option of incorporating additional services into the agreement over time. The migration of the data center processing to IBM was completed in August 2012. The IT Services Agreement would have expired on June 30, 2022. In March 2015, the Company signed a two -year extension to the IT Services Agreement which expires on June 30, 2024 . The Company has the right to renew the term of the IT Services Agreement for up to one additional 12 -month term. Commitments remaining under this agreement at June 30, 2018 are $340.6 million through fiscal year 2024, the final year of the contract. In March 2014, the Company and IBM United Kingdom Limited (“IBM UK”) entered into an Information Technology Services Agreement (the “EU IT Services Agreement”), under which IBM UK provides data center services supporting the Company’s technology outsourcing services for certain clients in Europe and Asia. The EU IT Services Agreement expires in October 2023. The Company has the right to renew the initial term of the EU IT Services Agreement for up to one additional 12 -month term or one additional 24 -month term. Commitments remaining under this agreement at June 30, 2018 are $27.9 million through fiscal year 2024, the final year of the contract. The following table summarizes the total expenses related to these agreements: Years ended June 30, 2018 2017 2016 (in millions) IT Services Agreement $ 101.2 $ 99.3 $ 98.5 EU IT Services Agreement 6.3 5.5 7.5 Total expenses $ 107.5 $ 104.8 $ 106.0 The Company has capitalized $62.3 million , including $0.3 million in fiscal year 2018, related to the build-out of the IBM data center in Other non-current assets, with a net book value of $31.8 million at June 30, 2018 . The Company capitalized $4.9 million related to the build-out of the IBM UK data center in Other non-current assets, with a net book value of $2.9 million at June 30, 2018 . The asset balance increased by $0.1 million due to the impact of foreign exchange during the fiscal year ended June 30, 2018 . The following table summarizes the total amortization expense of capitalized costs related to these agreements: Years ended June 30, 2018 2017 2016 (in millions) IT Services Agreement $ 5.3 $ 4.6 $ 4.3 EU IT Services Agreement 0.5 0.4 0.6 Total expenses $ 5.8 $ 5.0 $ 4.8 Equity Method Investment The Company contributed $5.3 million and $6.0 million to an equity method investment during the fiscal years ended June 30, 2018 and 2017 , respectively, and has a remaining commitment of $1.8 million to fund this investment at June 30, 2018 . Purchase of Intellectual Property As discussed in Note 6, “Acquisitions,” the Company paid $40.0 million to an affiliate of Inveshare in February 2018 upon delivery of certain blockchain technology applications, as contemplated as part of the Company’s acquisition of intellectual property assets from Inveshare in September 2016. Contractual Obligations The Company has obligations under the IT Services Agreement, the EU IT Services Agreement, and related software maintenance agreements, various facilities and equipment leases, software license agreements, and software/hardware maintenance agreements. The following table summarizes the total expenses related to these agreements: Years ended June 30, 2018 2017 2016 (in millions) Data center expenses $ 107.5 $ 104.8 $ 106.0 Facilities and equipment leases 50.4 50.3 38.1 Software license agreements 33.7 32.0 26.5 Software/hardware maintenance agreements 63.5 63.2 53.3 Total expenses $ 255.0 $ 250.3 $ 223.9 The minimum commitments under these obligations at June 30, 2018 are as follows, which includes the aforementioned IT Services Agreement and EU IT Services Agreement: Years Ending June 30, (in millions) 2019 $ 120.5 2020 111.1 2021 101.2 2022 89.7 2023 86.0 Thereafter 211.3 $ 719.8 In addition to fixed rentals, certain leases require payment of maintenance and real estate taxes and contain escalation provisions based on future adjustments in price indices. Other In the normal course of business, the Company is subject to various claims and litigation. While the outcome of any claim or litigation is inherently unpredictable, the Company believes that the ultimate resolution of these matters will not, individually or in the aggregate, result in a material impact on its financial condition, results of operations or cash flows. It is not the Company’s business practice to enter into off-balance sheet arrangements. However, the Company is exposed to market risk from changes in foreign currency exchange rates that could impact its financial position, results of operations, and cash flows. The Company manages its exposure to these market risks through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The Company may use derivative financial instruments as risk management tools and not for trading purposes. The Company was not a party to any derivative financial instruments as of June 30, 2018 and 2017 . In the normal course of business, the Company also enters into contracts in which it makes representations and warranties that relate to the performance of the Company’s products and services. The Company does not expect any material losses related to such representations and warranties, or collateral arrangements. Our business process outsourcing and mutual fund processing services are performed by Broadridge Business Process Outsourcing, LLC (“BBPO”), a wholly-owned indirect subsidiary, which is a broker-dealer registered with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). Although BBPO’s FINRA membership agreement allows it to engage in clearing and the retailing of corporate securities in addition to mutual fund retailing on a wire order basis, BBPO does not clear customer transactions or carry customer accounts. As a registered broker-dealer and member of FINRA, BBPO is subject to the Uniform Net Capital Rule 15c3-1 of the Securities Exchange Act of 1934, as amended (“Rule 15c3-1”), which requires BBPO to maintain a minimum amount of net capital. At June 30, 2018 , BBPO was in compliance with this capital requirement. BBPO, as a “Managing Clearing Member” of the Options Clearing Corporation (the “OCC”), is also subject to OCC Rule 309(b) with respect to the business process outsourcing services that it provides to other OCC “Managed Clearing Member” broker-dealers. OCC Rule 309(b) requires that BBPO maintain a minimum amount of net capital. At June 30, 2018 , BBPO was in compliance with this capital requirement. In addition, Matrix Trust Company, a wholly-owned indirect subsidiary, is a Colorado State non-depository trust company and National Securities Clearing Corporation trust member, whose primary business is to provide cash agent, custodial and directed or non-discretionary trust services to institutional customers. As a result, Matrix Trust Company is subject to various regulatory capital requirements administered by the Colorado Division of Banking and the Arizona Department of Financial Institutions, as well as the National Securities Clearing Corporation. Specific capital requirements that involve quantitative measures of assets, liabilities, and certain off-balance sheet items, when applicable, must be met. At June 30, 2018 , Matrix Trust Company was in compliance with its capital requirements. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) BY COMPONENT The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income/(loss): Foreign Currency Translation Available- for-Sale Securities Pension and Post- Retirement Liabilities Total (in millions) Balances at July 1, 2015 $ (16.6 ) $ 2.0 $ (6.3 ) $ (20.9 ) Other comprehensive income/(loss) before reclassifications (15.4 ) (0.7 ) (1.6 ) (17.7 ) Amounts reclassified from accumulated other comprehensive income/(loss) — — 0.4 0.4 Balances at June 30, 2016 $ (31.9 ) $ 1.3 $ (7.6 ) $ (38.2 ) Other comprehensive income/(loss) before reclassifications (17.0 ) 1.0 (2.2 ) (18.2 ) Amounts reclassified from accumulated other comprehensive income/(loss) — — 0.6 0.6 Balances at June 30, 2017 $ (48.9 ) $ 2.3 $ (9.2 ) $ (55.8 ) Other comprehensive income/(loss) before reclassifications 5.7 1.1 (0.1 ) 6.7 Amounts reclassified from accumulated other comprehensive income/(loss) — (3.7 ) 1.0 (2.7 ) Balances at June 30, 2018 $ (43.2 ) $ (0.4 ) $ (8.3 ) $ (51.9 ) The following table summarizes the reclassifications out of accumulated other comprehensive income/(loss): Years Ended June 30, 2018 2017 2016 (in millions) Available-for-Sale Securities: Realized gains reclassified into non-operating income $ (5.5 ) $ — $ — Tax expense 1.7 — — Amortization of gain, net of tax $ (3.7 ) $ — $ — Pension and Post-retirement liabilities: Amortization of loss reclassified into Selling, general and administrative expenses $ 1.5 $ 1.0 $ 0.6 Tax income (0.5 ) (0.4 ) (0.2 ) Amortization of loss, net of tax $ 1.0 $ 0.6 $ 0.4 |
Financial Data by Segment
Financial Data by Segment | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Financial Data by Segment | FINANCIAL DATA BY SEGMENT The Company operates in two reportable segments: Investor Communication Solutions and Global Technology and Operations. See Note 1, “Basis of Presentation” for a further description of the Company’s reportable segments. The primary components of “Other” are certain gains, losses, corporate overhead expenses and non-operating expenses that have not been allocated to the reportable segments, such as interest expense. Foreign currency exchange is a reconciling item between the actual foreign currency exchange rates and the constant foreign currency exchange rates used for internal management reporting. Certain corporate expenses, as well as certain centrally managed expenses, are allocated based upon budgeted amounts in a reasonable manner. Because the Company compensates the management of its various businesses on, among other factors, segment profit, the Company may elect to record certain segment-related operating and non-operating expense items in Other rather than reflect such items in segment profit. In connection with an organizational change made in the second quarter of fiscal year 2018, in order to further align and enhance our portfolio of services, certain discrete services that were previously reported in our Investor Communication Solutions reportable segment are now reported within the Global Technology and Operations reportable segment. As a result, our prior period segment results have been revised to reflect this change in reporting segments. Investor Communication Solutions Global Technology and Operations Other Foreign Currency Exchange Total (in millions) Year ended June 30, 2018 Revenues $ 3,495.6 $ 911.6 $ — $ (77.3 ) $ 4,329.9 Earnings (loss) before income taxes 494.6 199.3 (151.4 ) 18.6 561.0 Assets 2,089.0 908.3 307.4 — 3,304.7 Capital expenditures 39.2 28.6 8.8 — 76.7 Depreciation and amortization 52.2 10.8 19.1 — 82.1 Amortization of acquired intangibles 67.8 13.6 — — 81.4 Amortization of other assets 12.6 30.6 5.3 — 48.5 Year ended June 30, 2017 Revenues $ 3,398.6 $ 825.5 $ — $ (81.5 ) $ 4,142.6 Earnings (loss) before income taxes 428.2 162.5 (110.5 ) 8.1 488.1 Assets 1,931.2 886.2 332.4 — 3,149.8 Capital expenditures 33.7 11.1 40.5 — 85.4 Depreciation and amortization 47.5 9.9 11.1 — 68.6 Amortization of acquired intangibles 60.8 11.8 — — 72.6 Amortization of other assets 12.4 23.9 4.6 — 41.0 Year ended June 30, 2016 Revenues $ 2,200.0 $ 758.4 $ — $ (61.4 ) $ 2,897.0 Earnings (loss) before income taxes 413.9 130.6 (79.0 ) 3.4 468.9 Assets 1,415.8 771.4 685.5 — 2,872.7 Capital expenditures 38.0 8.5 11.2 — 57.7 Depreciation and amortization 30.1 11.7 10.9 — 52.6 Amortization of acquired intangibles 25.1 6.8 — — 31.8 Amortization of other assets 6.6 25.7 4.3 — 36.6 Revenues and assets by geographic area are as follows: United States Canada United Kingdom Other Total (in millions) Year ended June 30, 2018 Revenues $ 3,907.2 $ 273.6 $ 118.7 $ 30.4 $ 4,329.9 Assets $ 2,661.9 $ 216.7 $ 257.8 $ 168.3 $ 3,304.7 Year ended June 30, 2017 Revenues $ 3,771.9 $ 251.4 $ 92.1 $ 27.3 $ 4,142.6 Assets $ 2,579.1 $ 237.9 $ 238.1 $ 94.7 $ 3,149.8 Year ended June 30, 2016 Revenues $ 2,582.1 $ 213.7 $ 78.3 $ 23.0 $ 2,897.0 Assets $ 2,424.9 $ 171.6 $ 202.5 $ 73.7 $ 2,872.7 |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (Unaudited) | QUARTERLY FINANCIAL RESULTS (UNAUDITED) Summarized quarterly results of operations for the fiscal years ended June 30, 2018 and 2017 are as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Total (in millions, except per share amounts) Year ended June 30, 2018 Revenues $ 924.8 $ 1,012.8 $ 1,071.9 $ 1,320.4 $ 4,329.9 Gross profit 198.2 243.0 268.8 450.3 1,160.3 Operating income 84.4 115.1 130.0 265.4 594.9 Earnings before income taxes 74.3 103.5 125.2 258.0 561.0 Net earnings 49.9 62.1 109.1 206.9 427.9 Basic EPS 0.43 0.53 0.93 1.76 3.66 Diluted EPS 0.42 0.52 0.90 1.72 3.56 Year ended June 30, 2017 Revenues $ 895.3 $ 892.6 $ 1,008.9 $ 1,345.7 $ 4,142.6 Gross profit 177.4 184.9 235.2 435.6 1,033.0 Operating income 66.0 58.8 109.7 297.0 531.6 Earnings before income taxes 51.5 45.7 106.3 284.7 488.1 Net earnings 33.7 30.1 75.9 187.1 326.8 Basic EPS 0.28 0.25 0.64 1.60 2.77 Diluted EPS 0.28 0.25 0.63 1.57 2.70 |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On August 7, 2018, the Company announced that its Board of Directors increased the Company’s quarterly cash dividend by $0.12 per share to $0.485 per share, an increase in the expected annual dividend amount from $1.46 to $1.94 per share. The declaration and payment of future dividends to holders of the Company’s common stock will be at the discretion of the Company’s Board of Directors, and will depend upon many factors, including the Company’s financial condition, earnings, capital requirements of its businesses, legal requirements, regulatory constraints, industry practice, and other factors that the Board of Directors deems relevant. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts ($ in thousands) Column A Column B Column C Column D Column E Balance at beginning of period Additions charged to costs and expenses Deductions Balance at end of period Fiscal year ended June 30, 2018: Allowance for doubtful accounts $ 3,700 $ 1,417 $ (2,392 ) $ 2,724 Deferred tax valuation allowance $ 9,300 $ — $ (5,539 ) $ 3,760 Fiscal year ended June 30, 2017: Allowance for doubtful accounts $ 2,257 $ 2,339 $ (896 ) $ 3,700 Deferred tax valuation allowance $ 9,844 $ — $ (544 ) $ 9,300 Fiscal year ended June 30, 2016: Allowance for doubtful accounts $ 3,843 $ 496 $ (2,082 ) $ 2,257 Deferred tax valuation allowance $ 9,200 $ 644 $ — $ 9,844 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation . The Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America (“U.S.”). These financial statements present the consolidated position of the Company and include the entities in which the Company directly or indirectly has a controlling financial interest as well as various entities in which the Company has investments recorded under either the cost or equity methods of accounting. Intercompany balances and transactions have been eliminated. Amounts presented may not sum due to rounding. Certain prior period amounts have been reclassified to conform to the current year presentation. In the first quarter of fiscal year 2018, the Company adopted Accounting Standards Update No. 2016-09 “Improvements to Employee Share-Based Payment Accounting” (“ASU No. 2016-09”). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including presenting the excess tax benefits or deficits from the exercise or vesting of share-based payments in the income statement, classifying the excess tax benefits or deficits as an operating activity in the Consolidated Statements of Cash Flows rather than as a financing activity, a revision to the criteria for classifying an award as equity or liability and an option to recognize gross stock-based compensation expense with actual forfeitures recognized as they occur. In addition, ASU No. 2016-09 eliminates the excess tax benefits from the assumed proceeds calculation under the treasury stock method for purposes of calculating diluted shares. As a result of this adoption, the Company recorded excess tax benefits related to stock-based compensation awards of $40.9 million during the twelve months ended June 30, 2018 in the income tax provision on a prospective basis, whereas such benefits would previously have been recognized in equity. The Company also excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share for the twelve months ended June 30, 2018. The Company has not adjusted prior periods presented for the change in accounting for excess tax benefits in the Consolidated Financial Statements. The Company also elected to apply the change in presentation of excess tax benefits in the Consolidated Statement of Cash Flows prospectively, and as a result, excess tax benefits are classified as operating activities when realized through reductions to subsequent tax payments. This adoption resulted in an increase to net cash provided by operating activities and a corresponding decrease to net cash provided by financing activities of $40.9 million for the twelve months ended June 30, 2018. The Company has not adjusted prior periods presented for the change in classification of excess tax benefits on the Consolidated Statement of Cash Flows. The Company also elected to continue our current practice of estimating expected forfeitures as permitted by ASU No. 2016-09. In the first quarter of fiscal year 2018, the Company adopted ASU No. 2015-17 “Balance Sheet Classification of Deferred Taxes” (“ASU No. 2015-17”) on a prospective basis to all deferred tax liabilities and assets. The amendments in ASU No. 2015-17 require entities that present a classified balance sheet to classify all deferred tax liabilities and assets as a noncurrent amount. The Company’s fiscal year 2017 Consolidated Balance Sheet has not been retrospectively adjusted for the adoption of ASU No. 2015-17. |
Use of Estimates | Use of Estimates. The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes thereto. These estimates are based on management’s best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions and judgment that are believed to be reasonable under the circumstances. Accordingly, actual results could differ from those estimates. The use of estimates in specific accounting policies is described further in the notes to the Consolidated Financial Statements, as appropriate. |
Revenue Recognition | Revenue Recognition. The Company’s revenues are primarily generated from fees for providing services. Revenues are recognized for the two reportable segments as follows: • Investor Communication Solutions —Revenues are generated primarily from processing and distributing investor communications as well as vote processing and tabulation. The Company typically enters into agreements with clients to provide services on a fee for service basis. Fees received from the rendering of services are recognized as revenue in the period in which the services have been provided and when collectability is reasonably assured. Revenues for distribution services as well as proxy fulfillment services are recorded in revenue on a gross basis with corresponding costs including amounts remitted to nominees recorded in Cost of revenues. • Global Technology and Operations —Revenues are generated primarily from fees for transaction processing. Client service agreements often include up-front consideration as well as a recurring fee for transaction processing. Up-front implementation fees are deferred and recognized on a straight-line basis over the longer of the respective service term of the contract or the expected customer relationship period, which commences after client acceptance when the processing term begins. Fees received from processing and outsourcing services are recognized as revenue in the period in which the services have been rendered and when collectability is reasonably assured. Revenue arrangements with multiple deliverables are evaluated to determine if the deliverables (items) should be divided into more than one unit of account. An item should generally be considered a separate unit of accounting if both of the following criteria are met: 1) the delivered item(s) has value to the customer on a standalone basis; and 2) if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. Once separate units of accounting are determined, the arrangement consideration is allocated at the inception of the arrangement to all deliverables using the relative selling price method. Relative selling price is obtained from sources such as vendor-specific objective evidence, which is based on the separate selling price for that or a similar item. If such evidence is unavailable, the Company uses the best estimate of the selling price, which includes various internal factors such as pricing strategy and market factors. A significant portion of the Company’s multi-element arrangements is generated from variable transaction, volume based fees and include services that are delivered at the same time. The Company recognizes revenue related to these arrangements as the services are provided. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Investment securities with an original maturity of 90 days or less are considered cash equivalents. The fair value of the Company’s Cash and cash equivalents approximates carrying value due to their short term nature. |
Financial Instruments | Financial Instruments. Substantially all of the financial instruments of the Company other than Long-term debt are carried at fair values, or at carrying amounts that approximate fair values because of the short maturity of the instruments. The carrying value of the Company’s long-term fixed-rate senior notes represent the face value of the long-term fixed-rate senior notes net of the unamortized discount and net of the associated unamortized debt issuance cost. The fair value of the Company’s long-term fixed-rate senior notes is based on quoted market prices. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment is initially recorded at cost and depreciated over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. The estimated useful lives of assets are as follows: Equipment 3 to 5 years Buildings and Building Improvements 5 to 20 years Furniture and fixtures 4 to 7 years |
Available-For-Sale Equity Securities | Available-For-Sale Equity Securities. Available-for-sale equity securities are non-derivatives that are reflected in Other non-current assets in the Consolidated Balance Sheets, unless management intends to dispose of the investment within twelve months of the end of the reporting period, in which case they are reflected in Other current assets in the Consolidated Balance Sheets. These investments are in entities over which the Company does not have control, joint control, or significant influence, for which the investments are initially recognized and carried at fair value. Unrealized holding gains and losses, net of tax, on available-for-sale securities are excluded from earnings and are included in Other comprehensive income (loss), net. Realized gains and losses on available-for-sale securities are included in Other non-operating (income) expenses, net, and when applicable, are reported as a reclassification adjustment, net of tax, as a component of Other comprehensive income (loss), net. Declines in the fair value of available-for-sale securities below their cost that are other-than-temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. |
Inventories | Inventories. Inventories are stated at the lower of cost (determined on a first-in, first-out basis) or market. |
Deferred Client Conversion and Start-Up Costs | Deferred Client Conversion and Start-Up Costs. Direct costs that are incurred to set up or convert a client’s systems to function with the Company’s technology are generally deferred and recognized on a straight-line basis which commences after client acceptance when the processing term begins. To the extent deferred costs exceed related implementation fee revenues, such excess costs are amortized over the service term of the contract. Deferred costs up to the amount of the related implementation fees are recognized and capitalized over the longer of the respective service term of the contract or expected customer relationship period. |
Deferred Data Center Costs | Deferred Data Center Costs. Data center costs relate to conversion costs associated with our principal data center systems and applications. Costs directly related to the activities necessary to make the data center usable for its intended purpose are deferred and amortized over the life of the contract on a straight-line basis commencing on the date the data center has achieved full functionality. |
Goodwill | Goodwill. The Company does not amortize goodwill but instead tests goodwill for impairment at the reporting unit level at least annually or more frequently if circumstances indicate possible impairment. The Company tests for goodwill impairment annually in the fourth quarter of the fiscal year, using the March 31 financial statement balances. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the estimated undiscounted future cash flows expected to be generated by the asset (or asset group). If the carrying amount of an asset (or asset group) exceeds its expected estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset (or asset group) exceeds its fair value. Intangible assets with finite lives are amortized primarily on a straight-line basis over their estimated useful lives and are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Equity Method Investments | Equity Method Investments . The Company’s investments resulting in a 20% to 50% ownership interest are accounted for using the equity method of accounting when the ability to exercise significant influence is maintained by the Company. The Company’s share of net income or losses of equity method investments is included in losses/(income) from equity method investments in Other non-operating (income) expenses, net. Equity method investments are included in Other non-current assets. Equity method investments are reviewed for impairment by assessing if a decline in market value of the investment below the carrying value is other than temporary, which considers the intent and ability to retain the investment, the length of time and extent that the market value has been less than cost, and the financial condition of the investee. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars based on exchange rates in effect at the end of each period. Revenues and expenses are translated at average exchange rates during the periods. Currency transaction gains or losses are included in Non-operating expenses, net. Gains or losses from balance sheet translation are included in Accumulated other comprehensive income (loss). |
Distribution Cost of Revenues | Distribution Cost of Revenues. Distribution cost of revenues consists primarily of postage related expenses incurred in connection with our Investor Communication Solutions segment, as well as Matrix Financial Solutions, Inc. administrative services expenses. These costs are reflected in Cost of revenues in the Consolidated Statements of Earnings. |
Stock-Based Compensation | Stock-Based Compensation. The Company accounts for stock-based compensation by recognizing the measurement of stock-based compensation expense in Net earnings based on the fair value of the award on the date of grant. For stock options issued, the fair value of each stock option was estimated on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, dividend yield, risk-free interest rate, and employee exercise behavior. Expected volatilities utilized in the binomial model are based on a combination of implied market volatilities, historical volatility of the Company’s stock price, and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock option grants is derived from the output of the binomial model and represents the period of time that options granted are expected to be outstanding. For restricted stock units, the fair value of the award is based on the current fair value of the Company’s stock on the date of grant less the present value of future expected dividends discounted at the risk-free-rate derived from the U.S. Treasury yield curve in effect at the time of grant. |
Internal Use Software | Internal Use Software. Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized over a three - to five -year period on a straight-line basis. For software developed or obtained for internal use, the Company’s accounting policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, the Company also capitalizes payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to direct time spent on such projects. Costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. The Company also expenses internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities. |
Income Taxes | Income Taxes. The Company accounts for income taxes under the asset and liability method, which establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s Consolidated Financial Statements or tax returns. Deferred tax assets and liabilities are recognized based on temporary differences between the consolidated financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. Judgment is required in addressing the future tax consequences of events that have been recognized in our Consolidated Financial Statements or tax returns (e.g., realization of deferred tax assets, changes in tax laws or interpretations thereof). Valuation allowances are recognized to reduce deferred tax assets when it is more likely than not that the Company will not be able to utilize the deferred tax assets attributable to net operating and capital loss carryforwards of certain subsidiaries to offset future taxable earnings. The determination as to whether a deferred tax asset will be recognized is made on a jurisdictional basis and is based on the evaluation of historical taxable income or loss, projected future taxable income, carryforward periods, scheduled reversals of deferred tax liabilities and tax planning strategies. Projected future taxable income is based on expected results and assumptions as to the jurisdiction in which the income will be earned. The assumptions used to project future taxable income requires significant judgment and are consistent with the plans and estimates used to manage the underlying businesses. |
Advertising Costs | Advertising Costs. Advertising cos ts are expensed at the time the advertising takes place. |
New Accounting Pronouncements | New Accounting Pronouncements. In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU No. 2018-02”), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects of the change in the U.S. federal corporate tax rate resulting from the U.S. Tax Cuts and Jobs Act (“the Tax Act”) enacted in December 2017. ASU 2018-02 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company will early adopt ASU 2018-02 in the first quarter of fiscal year 2019 for which the pending adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Accounting for Goodwill Impairment” (“ASU No. 2017-04”). ASU No. 2017-04 removes Step 2 of the current goodwill impairment test, which currently requires a hypothetical purchase price allocation if the fair value of a reporting unit were to be less than its book value, for purposes of determining the amount of goodwill impaired. Under ASU No. 2017-04, the Company would now recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds the fair value of the reporting unit; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. ASU No. 2017-04 will be effective for the Company beginning in the first quarter of fiscal 2021, to be applied on a prospective basis. The pending adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business” (“ASU No. 2017-01”). ASU No. 2017-01 narrows the definition of a business, in part by concluding that an integrated set of assets and activities (referred to as a “set”) is not a business when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets. ASU No. 2017-01 is effective for the Company beginning in the first quarter of fiscal year 2019, to be applied on a prospective basis. The pending adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU No. 2016-02”), as amended by ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” and ASU No. 2018-11 “Leases (Topic 842): Targeted Improvements” in July 2018 (collectively referred to herein as “ASU No. 2016-02, as amended”). Under ASU No. 2016-02, as amended, all lease arrangements, with certain limited exceptions, exceeding a twelve month term must now be recognized as assets and liabilities on the balance sheet of the lessee by recording a right-of-use asset and corresponding lease obligation generally equal to the present value of the future lease payments over the lease term. Further, the income statement will reflect lease expense for leases classified as operating and amortization/interest expense for leases classified as financing, determined using classification criteria substantially similar to the current lease guidance for distinguishing between an operating and capital lease. ASU No. 2016-02, as amended, also contains certain additional qualitative and quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. ASU No. 2016-02, as amended, is effective for the Company in the first quarter of fiscal year 2020 and can be adopted using either a modified retrospective basis which requires adjustment to all comparative periods presented in the consolidated financial statements, or by recognizing a cumulative-effect adjustment to the opening balance of retained earnings at the date of initial application. The Company is currently evaluating the impact of the pending adoption and associated adoption method of ASU No. 2016-02, as amended, on the Company’s Consolidated Financial Statements. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU No. 2016-01”), which provides guidance for the recognition, measurement, presentation and disclosure of financial assets and liabilities. Under ASU No. 2016-01, changes in the fair value of publicly traded equity securities for which the Company does not have significant influence would be recorded as part of Net earnings rather than as Other comprehensive income (loss), net. In addition, equity investments that do not have a readily determinable fair value will be recorded at cost less impairment as further adjusted for observable price changes in orderly transactions for identical or similar investments of the issuer. ASU No. 2016-01 is effective for the Company beginning in the first quarter of fiscal year 2019. The guidance in ASU No. 2016-01 related to changes in fair value of publicly traded equity securities will be adopted by means of a cumulative-effect adjustment to the balance sheet as of the beginning of fiscal year 2019, while the guidance related to equity securities without readily determinable fair values will be adopted prospectively to equity investments that exist as of the beginning of fiscal year 2019. The pending adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU No. 2015-05”). ASU No. 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU No. 2015-05 does not change the accounting for a customer’s accounting for service contracts. Following adoption of ASU No. 2015-05, all software licenses within its scope are accounted for consistent with other licenses of intangible assets. The Company adopted No. 2015-05 effective in the first quarter of fiscal year 2017 prospectively to all arrangements entered into or materially modified after the effective date. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU No. 2014-09”), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU No. 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU No. 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 also requires certain enhanced disclosures, including disclosures on the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers - Deferral of the Effective Date,” which defers the effective date of ASU No. 2014-09 by one year, with an option that would permit companies to adopt the standard as early as the original effective date. As a result, ASU No. 2014-09 will be effective for the Company as of the first quarter of fiscal year 2019 for which the Company plans to adopt ASU No. 2014-09 using the modified retrospective transition method with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application along with providing certain additional disclosures as defined per ASU No. 2014-09. In March 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU No. 2016-08”), which provides clarifying implementation guidance to the principal versus agent provisions of ASU No. 2014-09. In April 2016, the FASB issued ASU No. 2016-10 “Identifying Performance Obligations and Licensing” (“ASU No. 2016-10”), which provides clarifying implementation guidance for applying ASU No. 2014-09 with respect to identifying performance obligations and the accounting for licensing arrangements. In May 2016, the FASB issued ASU No. 2016-12 “Narrow-Scope Improvements and Practical Expedients” (“ASU No. 2016-12”), which provides certain clarifying guidance for ASU No. 2014-09 relative to treatment of sales taxes, non-cash consideration, collectibility and certain aspects of transitional guidance. In December 2016, the FASB issued ASU No. 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”, which provides certain technical corrections for ASU No. 2014-09 including the impairment testing of capitalized contract costs, disclosure of remaining performance obligations, and certain other matters. Each of ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-12 and ASU No. 2016-20 have the same effective date as ASU No. 2014-09. The Company has identified certain expected impacts of the new standard on its Consolidated Financial Statements. Specifically, the Company expects to capitalize certain sales commissions, as well as capitalize certain additional costs that are part of setting up or converting a client’s systems to function with the Company’s technology, both of which are currently expensed. Additionally, the Company expects to recognize proxy revenue predominantly at the time of proxy distribution to the client’s shareholders rather than on the date of the client’s shareholder meeting, which is typically 30 days after the proxy distribution. Other expected changes to the timing of revenue recognition include deferral of revenue from certain transaction processing platform enhancements as well as acceleration of revenue from certain multi-year software license arrangements that are currently recognized over the term of the software subscription. While the annual impact of ASU No. 2014-09, and related amendments, to the Company’s income statement could vary year to year, the annual income statement impact is estimated to be less than 1% of the Company’s fiscal year 2017 revenues and less than 3% of the Company’s fiscal year 2017 earnings before income taxes. Also, the Company currently estimates the cumulative impact to opening retained earnings of adopting ASU No. 2014-09 and related amendments will be less than $100 million , driven primarily by an increase in capitalized costs. |
Subsequent Events | Subsequent Events. In preparing the accompanying Consolidated Financial Statements, the Company has reviewed events that have occurred after June 30, 2018 through the date of issuance of the Consolidated Financial Statements. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives of Assets | The estimated useful lives of assets are as follows: Equipment 3 to 5 years Buildings and Building Improvements 5 to 20 years Furniture and fixtures 4 to 7 years |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Denominators of Basic and Diluted EPS Computations | The following table sets forth the denominators of the basic and diluted EPS computations: Years ended June 30, 2018 2017 2016 (in millions) Weighted-average shares outstanding: Basic 116.8 118.0 118.3 Common stock equivalents 3.5 2.8 3.4 Diluted 120.4 120.8 121.6 |
Computation of Basic EPS | The following table sets forth the computation of basic EPS utilizing Net earnings for the fiscal year and the Company’s basic Weighted-average shares outstanding: Years ended June 30, 2018 2017 2016 (in millions, except per share amounts) Net earnings $ 427.9 $ 326.8 $ 307.5 Basic Weighted-average shares outstanding 116.8 118.0 118.3 Basic EPS $ 3.66 $ 2.77 $ 2.60 |
Computation of Diluted EPS | The following table sets forth the computation of diluted EPS utilizing Net earnings for the fiscal year and the Company’s diluted Weighted-average shares outstanding: Years ended June 30, 2018 2017 2016 (in millions, except per share amounts) Net earnings $ 427.9 $ 326.8 $ 307.5 Diluted Weighted-average shares outstanding 120.4 120.8 121.6 Diluted EPS $ 3.56 $ 2.70 $ 2.53 |
Interest Expense, Net (Tables)
Interest Expense, Net (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Components of Interest Expense, Net | Interest expense, net consisted of the following: Years ended June 30, 2018 2017 2016 (in millions) Interest expense on borrowings $ 42.4 $ 44.7 $ 28.4 Interest income (3.8 ) (2.0 ) (2.6 ) Interest expense, net $ 38.6 $ 42.7 $ 25.7 |
Other Non-Operating (Income) 35
Other Non-Operating (Income) Expenses, Net (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Components of Other Non-Operating (Income) Expenses, Net | Other non-operating (income) expenses, net consisted of the following: Years ended June 30, 2018 2017 2016 (in millions) Losses from equity method investments $ 2.7 $ 5.2 $ 5.1 Foreign currency exchange (gain) loss (2.0 ) 4.8 0.5 Other (gains) losses (5.5 ) (9.3 ) — Other non-operating (income) expenses, net $ (4.7 ) $ 0.8 $ 5.6 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Allocation of Purchase Price | The following summarizes the allocation of purchase price for the NACC acquisition (in millions): NACC Accounts receivable, net $ 89.1 Other current assets 19.5 Property, plant and equipment 45.0 Intangible assets 218.3 Goodwill 135.7 Other non-current assets 1.6 Accounts payable (14.3 ) Accrued expenses and other current liabilities (62.9 ) Deferred taxes (21.9 ) Deferred revenue (1.1 ) Other long term liabilities (2.9 ) Consideration paid, net of cash acquired $ 406.2 |
Pro Forma Information | This unaudited pro forma financial information should not be relied upon as being indicative of the historical results that would have been obtained if the acquisition had actually occurred on July 1, 2015, nor of the results of operations that may be obtained in the future. Years ended June 30, 2017 2016 Revenues $ 4,142.6 $ 4,059.3 Net earnings $ 335.6 $ 312.4 Basic earnings per share $ 2.84 $ 2.64 Diluted earnings per share $ 2.78 $ 2.57 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables set forth the Company’s financial assets and liabilities at June 30, 2018 and 2017 , respectively, which are measured at fair value on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 1 Level 2 Level 3 Total (in millions) Assets: Cash and cash equivalents: Money market funds (1) $ 86.8 $ — $ — $ 86.8 Other current assets: Available-for-sale securities 0.1 — — 0.1 Other non-current assets: Available-for-sale securities 66.9 — — 66.9 Total assets as of June 30, 2018 $ 153.8 $ — $ — $ 153.8 Liabilities: Contingent consideration obligations $ — $ — $ 18.6 $ 18.6 Total liabilities as of June 30, 2018 $ — $ — $ 18.6 $ 18.6 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash and cash equivalents: Money market funds (1) $ 37.9 $ — $ — $ 37.9 Other current assets: Available-for-sale securities 0.1 — — 0.1 Other non-current assets: Available-for-sale securities 50.6 — 1.1 51.7 Total assets as of June 30, 2017 $ 88.6 $ — $ 1.1 $ 89.8 Liabilities: Contingent consideration obligations $ — $ — $ 6.7 $ 6.7 Total liabilities as of June 30, 2017 $ — $ — $ 6.7 $ 6.7 (1) Money market funds include money market deposit account balances of $28.4 million and less than $0.1 million as of June 30, 2018 and 2017 , respectively. |
Schedule of Changes in Level 3 Financial Liabilities | The following table sets forth an analysis of changes during fiscal years 2018 and 2017 in Level 3 financial liabilities of the Company: June 30, 2018 2017 (in millions) Beginning balance $ 6.7 $ 5.5 Additional contingent consideration incurred 13.5 2.8 Net decrease in contingent consideration liability (1.1 ) (0.6 ) Foreign currency impact on contingent consideration liability 0.2 (0.4 ) Payments (0.7 ) (0.7 ) Ending balance $ 18.6 $ 6.7 |
Property, Plant and Equipment38
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment at Cost and Accumulated Depreciation and Depreciation Expense | Property, plant and equipment at cost and Accumulated depreciation at June 30, 2018 and 2017 are as follows: June 30, 2018 2017 (in millions) Property, plant and equipment: Land and buildings $ 2.6 $ 2.6 Equipment 432.1 425.4 Furniture, leaseholds and other 161.5 139.1 596.3 567.1 Less: Accumulated depreciation (392.2 ) (369.0 ) Property, plant and equipment, net $ 204.1 $ 198.1 Depreciation expense for Property, plant and equipment for the years ended June 30, 2018 , 2017 and 2016 was as follows: Years ended June 30, 2018 2017 2016 (in millions) Depreciation expense for property, plant and equipment $ 63.4 $ 53.5 $ 38.7 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | Changes in Goodwill for the fiscal years ended June 30, 2018 and 2017 are as follows: Investor Communication Solutions Global Technology and Operations Total (in millions) Goodwill, gross, at July 1, 2016 $ 689.7 $ 309.6 $ 999.3 Additions 135.7 39.8 175.5 Fair value adjustments — (0.5 ) (0.5 ) Foreign currency translation and other (4.4 ) (10.5 ) (14.9 ) Accumulated impairment losses — — — Goodwill, net, at June 30, 2017 $ 821.0 $ 338.4 $ 1,159.3 Goodwill, gross, at June 30, 2017 $ 821.0 $ 338.4 $ 1,159.3 Transfers (a) (38.7 ) 38.7 — Additions 88.2 — 88.2 Fair value adjustments — — — Foreign currency translation and other 13.9 (6.5 ) 7.4 Accumulated impairment losses — — — Goodwill, net, at June 30, 2018 $ 884.4 $ 370.5 $ 1,254.9 (a) In connection with an organizational change made in the second quarter of fiscal year 2018, in order to further align and enhance our portfolio of services, certain discrete services that were previously reported in our Investor Communication Solutions reportable segment are now reported within the Global Technology and Operations reportable segment. As a result, $38.7 million of goodwill was reclassified from the ICS segment to the GTO segment based on a relative fair value analysis. |
Schedule of Intangible Assets at Cost and Accumulated Amortization | All of the intangible assets have finite lives and, as such, are subject to amortization. The weighted-average remaining useful life of the intangible assets is as follows: Weighted-Average Remaining Useful Life (Years) Acquired software technology 4.2 Software licenses 2.8 Customer contracts and lists 7.1 Acquired intellectual property 3.7 Other intangibles 4.3 Total weighted-average remaining useful life 5.7 Intangible assets at cost and accumulated amortization at June 30, 2018 and 2017 are as follows: June 30, 2018 2017 Original Accumulated Intangible Original Accumulated Intangible (in millions) Software licenses $ 117.5 $ (87.5 ) $ 30.0 $ 124.6 $ (91.1 ) $ 33.6 Acquired software technology 117.8 (73.0 ) 44.8 106.9 (65.1 ) 41.9 Customer contracts and lists 453.8 (162.1 ) 291.7 435.3 (128.3 ) 307.0 Acquired intellectual property 135.0 (36.9 ) 98.1 95.0 (15.0 ) 80.0 Other intangibles 47.7 (18.2 ) 29.5 38.1 (14.2 ) 24.0 $ 871.8 $ (377.7 ) $ 494.1 $ 800.0 $ (313.6 ) $ 486.4 |
Finite-lived Intangible Assets Amortization Expense | Amortization of intangibles for the years ended June 30, 2018 , 2017 and 2016 was as follows: Years ended June 30, 2018 2017 2016 (in millions) Amortization expense for intangible assets $ 100.2 $ 87.7 $ 45.8 |
Estimated Amortization Expenses of Intangible Assets | Estimated remaining amortization expenses of the Company’s existing intangible assets for the next five fiscal years and thereafter are as follows: Years Ending June 30, (in millions) 2019 $ 104.9 2020 99.0 2021 89.6 2022 66.2 2023 50.7 Thereafter 83.7 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Non-Current Assets | Other non-current assets consisted of the following: June 30, 2018 2017 (in millions) Deferred client conversion and start-up costs $ 186.0 $ 162.4 Deferred data center costs (a) 35.0 40.1 Long-term investments 80.3 63.4 Long-term broker fees 28.7 24.2 Other 30.5 26.4 Total $ 360.5 $ 316.4 (a) Represents deferred data center costs associated with the Company’s information technology services agreements with International Business Machines Corporation (“IBM”). Please refer to Note 16, “Contractual Commitments, Contingencies and Off-Balance Sheet Arrangements” for a further discussion. |
Accrued Expenses and Other Cu41
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: June 30, 2018 2017 (in millions) Employee compensation and benefits $ 233.2 $ 221.2 Accrued broker fees 85.2 79.5 Accrued taxes 25.3 80.2 Accrued dividend payable 42.5 37.9 Customer deposits 39.2 39.5 Other 53.9 37.1 Total $ 479.2 $ 495.3 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Outstanding Borrowings | Outstanding borrowings and available capacity under the Company’s borrowing arrangements were as follows: Expiration Date Principal amount outstanding at June 30, 2018 Carrying value at June 30, 2018 Carrying value at June 30, 2017 Unused Fair Value at June 30, 2018 (in millions) Long-term debt Fiscal 2017 Revolving Credit Facility February 2022 $ 160.0 $ 160.0 $ 210.0 $ 840.0 $ 160.0 Fiscal 2014 Senior Notes September 2020 400.0 398.5 397.9 — 405.8 Fiscal 2016 Senior Notes June 2026 500.0 494.8 494.1 — 474.4 $ 1,060.0 $ 1,053.4 $ 1,102.1 $ 840.0 $ 1,040.2 Total debt $ 1,060.0 $ 1,053.4 $ 1,102.1 $ 840.0 $ 1,040.2 |
Schedule Of Future Principal Payments On Outstanding Debt | Future principal payments on the Company’s outstanding debt are as follows: Years ending June 30, 2019 2020 2021 2022 2023 Thereafter Total (in millions) $ — $ — $ 400.0 $ 160.0 $ — $ 500.0 $ 1,060.0 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Incentive Equity Awards | The activity related to the Company’s incentive equity awards for the fiscal years ended June 30, 2018 , 2017 and 2016 consisted of the following: Stock Options Time-based RSUs Performance-based RSUs Number of Options Weighted Average Exercise Price Number of Shares Weighted Average Grant-Date Fair Value Number of Shares Weighted Average Grant-Date Fair Value Balances at July 1, 2015 7,673,947 $ 29.00 1,526,460 $ 34.51 547,865 $ 33.94 Granted 679,995 52.51 574,889 52.28 262,292 50.79 Exercised (a) (1,192,266 ) 20.83 — — — — Vesting of RSUs (b) — — (758,964 ) 31.30 (264,868 ) 30.30 Expired/forfeited (102,609 ) 34.32 (139,489 ) 40.45 (76,773 ) 23.43 Balances at June 30, 2016 7,059,067 $ 32.57 1,202,896 $ 44.34 468,516 $ 47.15 Granted 568,465 67.15 531,301 64.38 225,731 64.52 Exercised (a) (2,384,449 ) 25.44 — — — — Vesting of RSUs (b) — — (586,617 ) 40.00 (171,082 ) 38.50 Expired/forfeited (105,442 ) 36.13 (72,987 ) 53.74 (52,303 ) 50.38 Balances at June 30, 2017 5,137,641 $ 39.63 1,074,593 $ 55.98 470,862 $ 58.26 Granted 1,079,442 93.42 456,217 78.86 198,485 76.71 Exercised (a) (1,654,877 ) 31.09 — — — — Vesting of RSUs (b) — — (463,561 ) 52.86 (150,068 ) 52.96 Expired/forfeited (83,918 ) 42.89 (84,850 ) 60.18 (123,590 ) 43.00 Balances at June 30, 2018 (c) 4,478,288 $ 55.69 982,399 $ 67.72 395,689 $ 74.29 (a) Stock options exercised during the fiscal years ended June 30, 2018 , 2017 and 2016 had intrinsic values of $116.3 million , $104.7 million and $41.3 million , respectively. (b) Time-based RSUs that vested during the fiscal years ended June 30, 2018 , 2017 and 2016 had a total fair value of $50.6 million , $39.8 million and $44.9 million , respectively. Performance-based RSUs that vested during the fiscal years ended June 30, 2018 , 2017 and 2016 had a total fair value of $19.1 million , $11.6 million and $15.6 million , respectively. (c) As of June 30, 2018 , the Company’s outstanding stock options using the fiscal year-end share price of $115.10 had an aggregate intrinsic value of $266.1 million . As of June 30, 2018 , the Company’s outstanding “in the money” vested stock options using the fiscal year-end share price of $115.10 had an aggregate intrinsic value of $191.5 million . As of June 30, 2018 , time-based RSUs and performance-based RSUs expected to vest using the fiscal year-end share price of $115.10 (approximately 0.9 million and 0.4 million shares, respectively) had an aggregate intrinsic value of $106.2 million and $44.8 million , respectively. |
Summary of Outstanding and Exercisable Stock Options | The tables below summarize information regarding the Company’s outstanding and exercisable stock options as of June 30, 2018 : Outstanding Options Options Outstanding Weighted Weighted Aggregate Intrinsic Value (in millions) (a) Range of Exercise Prices $0.01 to $20.00 37,500 0.84 $ 17.26 $20.01 to $35.00 825,657 3.80 $ 23.07 $35.01 to $50.00 734,675 5.63 $ 37.57 $50.01 to $65.00 1,301,084 7.11 $ 52.10 $65.01 to $80.00 506,692 8.62 $ 67.32 $80.01 to $95.00 1,072,680 9.61 $ 93.41 4,478,288 6.97 $ 55.69 $ 266.1 Exercisable Options Range of Exercise Prices Options Exercisable Weighted Weighted Aggregate Intrinsic Value (in millions) (a) $0.01 to $20.00 37,500 0.84 $ 17.26 $20.01 to $35.00 825,657 3.80 $ 23.07 $35.01 to $50.00 734,675 5.63 $ 37.57 $50.01 to $65.00 774,976 7.06 $ 52.42 $65.01 to $80.00 111,435 8.62 $ 67.32 $80.01 to $95.00 38,591 9.39 $ 88.66 2,522,834 5.58 $ 39.18 $ 191.5 (a) Calculated using the closing stock price on the last trading day of fiscal year 2018 of $115.10 , less the option exercise price, multiplied by the number of instruments. |
Assumptions Used to Determine Fair Values of Stock Option Grants | The following table presents the assumptions used to determine the fair values of the stock option grants using the Binomial options pricing model during the fiscal years ended June 30, 2018 , 2017 and 2016 : Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Graded Vesting Risk-free interest rate 2.7 % 2.1 % 1.4 % Dividend yield 1.6 % 2.0 % 2.3 % Weighted-average volatility factor 23.8 % 23.1 % 26.7 % Weighted-average expected life (in years) 6.5 6.5 6.5 Weighted-average fair value (in dollars) $ 22.16 $ 13.74 $ 10.82 Fiscal Year Ended Cliff Vesting Risk-free interest rate 2.7 % Dividend yield 1.6 % Weighted-average volatility factor 23.8 % Weighted-average expected life (in years) 6.0 Weighted-average fair value (in dollars) $ 21.65 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Summary of Costs Recored for Defined Contribution Savings Plans | The costs recorded by the Company for these plans were: Years ended June 30, 2018 2017 2016 (in millions) 401(k) savings plan $ 34.4 $ 35.2 $ 27.3 ERSP 1.9 1.8 1.2 Total $ 36.3 $ 37.0 $ 28.5 |
Summary of Amounts Charged to Expense | The amounts charged to expense by the Company for this plan were: Years ended June 30, 2018 2017 2016 (in millions) Executive Retiree Health Insurance Plan $ 0.4 $ 0.3 $ 0.3 The amounts charged to expense by the Company for these plans were: Years ended June 30, 2018 2017 2016 (in millions) SORP $ 4.3 $ 3.6 $ 3.2 SERP 0.6 0.7 0.6 Total $ 4.9 $ 4.3 $ 3.8 |
Summary of Benefit Obligation under Plan | The benefit obligation to the Company under this plan at June 30, 2018 , 2017 and 2016 was: Years ended June 30, 2018 2017 2016 (in millions) Executive Retiree Health Insurance Plan $ 5.3 $ 4.9 $ 4.2 The benefit obligation to the Company under these plans at June 30, 2018 , 2017 and 2016 was: Years ended June 30, 2018 2017 2016 (in millions) SORP $ 38.3 $ 35.4 $ 30.0 SERP 4.5 4.3 3.6 Total $ 42.8 $ 39.7 $ 33.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Earnings from Continuing Operations before Income Taxes | Earnings before income taxes shown below are based on the geographic location to which such earnings are attributable. Years Ended June 30, 2018 2017 2016 (in millions) Earnings before income taxes: U.S. $ 450.0 $ 398.6 $ 389.2 Foreign 111.1 89.5 79.7 Total $ 561.0 $ 488.1 $ 468.9 |
Components of Provision for Income Taxes | The Provision for income taxes consists of the following components: Years Ended June 30, 2018 2017 2016 (in millions) Current: U.S. Domestic $ 89.4 $ 138.2 $ 134.9 Foreign 43.4 24.8 23.9 State 9.6 13.0 8.5 Total current 142.4 176.0 167.3 Deferred: U.S. Domestic (13.6 ) (7.9 ) (7.4 ) Foreign 4.9 (4.2 ) (0.4 ) State (0.6 ) (2.5 ) 1.9 Total deferred (9.3 ) (14.7 ) (5.9 ) Total Provision for income taxes $ 133.1 $ 161.4 $ 161.4 |
Effective Income Tax Rate Reconciliation | Years Ended June 30, 2018 % 2017 % 2016 % (in millions) Provision for income taxes at U.S. statutory rate $ 157.4 28.1 $ 170.8 35.0 $ 164.1 35.0 Increase (decrease) in Provision for income taxes from: State taxes, net of federal tax 9.4 1.7 6.7 1.4 7.0 1.5 Foreign taxes (2.4 ) (0.4 ) (6.9 ) (1.4 ) (5.6 ) (1.2 ) Valuation allowances (5.0 ) (0.9 ) (0.6 ) (0.1 ) (0.3 ) (0.1 ) Non-taxable investment gain — — (3.3 ) (0.7 ) — — Stock-Based Compensation - Excess Tax Benefits (40.9 ) (7.3 ) — — — — Tax Act Items 15.4 2.7 — — — — Other (0.8 ) (0.1 ) (5.3 ) (1.1 ) (3.8 ) (0.7 ) Total Provision for income taxes $ 133.1 23.7 $ 161.4 33.1 $ 161.4 34.4 |
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities at June 30, 2018 and 2017 were as follows: June 30, 2018 2017 (in millions) Classification: Current deferred tax assets (included in Other current assets) $ — $ 26.1 Long-term deferred tax assets (included in Other non-current assets) 9.2 2.7 Current deferred tax liabilities (included in Accrued expenses and other current liabilities) — (0.8 ) Long-term deferred tax liabilities (57.9 ) (82.0 ) Net deferred tax liabilities $ (48.8 ) $ (54.0 ) Components: Deferred tax assets: Accrued expenses not currently deductible $ 3.5 $ 5.6 Depreciation 2.2 18.8 Compensation and benefits not currently deductible 51.7 70.3 Net operating and capital losses 12.1 20.4 Tax credits 5.2 4.4 Other 6.6 6.8 Total deferred tax assets 81.3 126.3 Less: Valuation allowances (3.8 ) (9.3 ) Deferred tax assets, net 77.6 117.0 Deferred tax liabilities: Goodwill and identifiable intangibles 93.4 141.4 Net deferred expenses 15.5 20.2 Unremitted earnings 11.1 — Other 6.2 9.4 Deferred tax liabilities 126.3 171.0 Net deferred tax liabilities $ (48.8 ) $ (54.0 ) |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax positions: Fiscal Year Ended June 30, 2018 2017 2016 (in millions) Beginning balance $ 18.7 $ 18.2 $ 24.4 Gross increase related to prior period tax positions 3.5 0.6 0.6 Gross increase related to current period tax positions 3.0 2.7 2.6 Gross decrease related to prior period tax positions (2.4 ) (2.8 ) (9.4 ) Ending balance $ 22.8 $ 18.7 $ 18.2 |
Contractual Commitments, Cont46
Contractual Commitments, Contingencies, and Off-Balance Sheet Arrangements (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Expenses Related to Data Center Agreements | The following table summarizes the total expenses related to these agreements: Years ended June 30, 2018 2017 2016 (in millions) IT Services Agreement $ 101.2 $ 99.3 $ 98.5 EU IT Services Agreement 6.3 5.5 7.5 Total expenses $ 107.5 $ 104.8 $ 106.0 |
Summary of Total Amortization Expense of Capitalized Costs Related to Data Center Agreements | The following table summarizes the total amortization expense of capitalized costs related to these agreements: Years ended June 30, 2018 2017 2016 (in millions) IT Services Agreement $ 5.3 $ 4.6 $ 4.3 EU IT Services Agreement 0.5 0.4 0.6 Total expenses $ 5.8 $ 5.0 $ 4.8 |
Summary of Lease Expenses Related to IT Services Agreement, the EU IT Services Agreement, and related software maintenance agreements, various facilities and equipment leases, software license agreements, and software/hardware maintenance agreements | The following table summarizes the total expenses related to these agreements: Years ended June 30, 2018 2017 2016 (in millions) Data center expenses $ 107.5 $ 104.8 $ 106.0 Facilities and equipment leases 50.4 50.3 38.1 Software license agreements 33.7 32.0 26.5 Software/hardware maintenance agreements 63.5 63.2 53.3 Total expenses $ 255.0 $ 250.3 $ 223.9 |
Schedule of Minimum Commitments Related to Technology Service Agreement | The minimum commitments under these obligations at June 30, 2018 are as follows, which includes the aforementioned IT Services Agreement and EU IT Services Agreement: Years Ending June 30, (in millions) 2019 $ 120.5 2020 111.1 2021 101.2 2022 89.7 2023 86.0 Thereafter 211.3 $ 719.8 |
Changes in Accumulated Other 47
Changes in Accumulated Other Comprehensive Income/(Loss) by Component (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income/(loss): Foreign Currency Translation Available- for-Sale Securities Pension and Post- Retirement Liabilities Total (in millions) Balances at July 1, 2015 $ (16.6 ) $ 2.0 $ (6.3 ) $ (20.9 ) Other comprehensive income/(loss) before reclassifications (15.4 ) (0.7 ) (1.6 ) (17.7 ) Amounts reclassified from accumulated other comprehensive income/(loss) — — 0.4 0.4 Balances at June 30, 2016 $ (31.9 ) $ 1.3 $ (7.6 ) $ (38.2 ) Other comprehensive income/(loss) before reclassifications (17.0 ) 1.0 (2.2 ) (18.2 ) Amounts reclassified from accumulated other comprehensive income/(loss) — — 0.6 0.6 Balances at June 30, 2017 $ (48.9 ) $ 2.3 $ (9.2 ) $ (55.8 ) Other comprehensive income/(loss) before reclassifications 5.7 1.1 (0.1 ) 6.7 Amounts reclassified from accumulated other comprehensive income/(loss) — (3.7 ) 1.0 (2.7 ) Balances at June 30, 2018 $ (43.2 ) $ (0.4 ) $ (8.3 ) $ (51.9 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the reclassifications out of accumulated other comprehensive income/(loss): Years Ended June 30, 2018 2017 2016 (in millions) Available-for-Sale Securities: Realized gains reclassified into non-operating income $ (5.5 ) $ — $ — Tax expense 1.7 — — Amortization of gain, net of tax $ (3.7 ) $ — $ — Pension and Post-retirement liabilities: Amortization of loss reclassified into Selling, general and administrative expenses $ 1.5 $ 1.0 $ 0.6 Tax income (0.5 ) (0.4 ) (0.2 ) Amortization of loss, net of tax $ 1.0 $ 0.6 $ 0.4 |
Financial Data by Segment (Tabl
Financial Data by Segment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data Segment Reporting Information | Investor Communication Solutions Global Technology and Operations Other Foreign Currency Exchange Total (in millions) Year ended June 30, 2018 Revenues $ 3,495.6 $ 911.6 $ — $ (77.3 ) $ 4,329.9 Earnings (loss) before income taxes 494.6 199.3 (151.4 ) 18.6 561.0 Assets 2,089.0 908.3 307.4 — 3,304.7 Capital expenditures 39.2 28.6 8.8 — 76.7 Depreciation and amortization 52.2 10.8 19.1 — 82.1 Amortization of acquired intangibles 67.8 13.6 — — 81.4 Amortization of other assets 12.6 30.6 5.3 — 48.5 Year ended June 30, 2017 Revenues $ 3,398.6 $ 825.5 $ — $ (81.5 ) $ 4,142.6 Earnings (loss) before income taxes 428.2 162.5 (110.5 ) 8.1 488.1 Assets 1,931.2 886.2 332.4 — 3,149.8 Capital expenditures 33.7 11.1 40.5 — 85.4 Depreciation and amortization 47.5 9.9 11.1 — 68.6 Amortization of acquired intangibles 60.8 11.8 — — 72.6 Amortization of other assets 12.4 23.9 4.6 — 41.0 Year ended June 30, 2016 Revenues $ 2,200.0 $ 758.4 $ — $ (61.4 ) $ 2,897.0 Earnings (loss) before income taxes 413.9 130.6 (79.0 ) 3.4 468.9 Assets 1,415.8 771.4 685.5 — 2,872.7 Capital expenditures 38.0 8.5 11.2 — 57.7 Depreciation and amortization 30.1 11.7 10.9 — 52.6 Amortization of acquired intangibles 25.1 6.8 — — 31.8 Amortization of other assets 6.6 25.7 4.3 — 36.6 |
Schedule of Revenues and Assets by Geographic Area | Revenues and assets by geographic area are as follows: United States Canada United Kingdom Other Total (in millions) Year ended June 30, 2018 Revenues $ 3,907.2 $ 273.6 $ 118.7 $ 30.4 $ 4,329.9 Assets $ 2,661.9 $ 216.7 $ 257.8 $ 168.3 $ 3,304.7 Year ended June 30, 2017 Revenues $ 3,771.9 $ 251.4 $ 92.1 $ 27.3 $ 4,142.6 Assets $ 2,579.1 $ 237.9 $ 238.1 $ 94.7 $ 3,149.8 Year ended June 30, 2016 Revenues $ 2,582.1 $ 213.7 $ 78.3 $ 23.0 $ 2,897.0 Assets $ 2,424.9 $ 171.6 $ 202.5 $ 73.7 $ 2,872.7 |
Quarterly Financial Results (49
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | Summarized quarterly results of operations for the fiscal years ended June 30, 2018 and 2017 are as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Total (in millions, except per share amounts) Year ended June 30, 2018 Revenues $ 924.8 $ 1,012.8 $ 1,071.9 $ 1,320.4 $ 4,329.9 Gross profit 198.2 243.0 268.8 450.3 1,160.3 Operating income 84.4 115.1 130.0 265.4 594.9 Earnings before income taxes 74.3 103.5 125.2 258.0 561.0 Net earnings 49.9 62.1 109.1 206.9 427.9 Basic EPS 0.43 0.53 0.93 1.76 3.66 Diluted EPS 0.42 0.52 0.90 1.72 3.56 Year ended June 30, 2017 Revenues $ 895.3 $ 892.6 $ 1,008.9 $ 1,345.7 $ 4,142.6 Gross profit 177.4 184.9 235.2 435.6 1,033.0 Operating income 66.0 58.8 109.7 297.0 531.6 Earnings before income taxes 51.5 45.7 106.3 284.7 488.1 Net earnings 33.7 30.1 75.9 187.1 326.8 Basic EPS 0.28 0.25 0.64 1.60 2.77 Diluted EPS 0.28 0.25 0.63 1.57 2.70 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ in Millions | 12 Months Ended | |||||
Jun. 30, 2018segment | Jun. 30, 2018Segment | Jun. 30, 2018USD ($) | Jun. 30, 2018group | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Number of reportable segments | 2 | 2 | ||||
Number of client groups | group | 4 | |||||
Excess tax benefit related to stock-based compensation awards | $ (40.9) | $ 0 | $ 0 | |||
Increase to cash provided by operating activities | 693.6 | 515.9 | 437.7 | |||
Decrease to cash provided from financing activities | 449.9 | $ 311.7 | $ (108.6) | |||
Accounting Standards Update 2016-09, Statutory Tax Withholding Component | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase to cash provided by operating activities | 40.9 | |||||
Decrease to cash provided from financing activities | $ 40.9 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | |||||
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2018USD ($)Segment | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Number of reportable segments | 2 | 2 | ||||
Investment securities maturity period for consideration as cash equivalents, in days | 90 days | |||||
Inventory | $ 18.5 | $ 18.5 | $ 18.5 | $ 18.5 | $ 17.2 | |
Advertising costs | 6.3 | 4.2 | $ 2.4 | |||
Excess tax benefits from stock-based compensation awards | $ 0 | $ 40.6 | $ 21.3 | |||
Software and Software Development Costs | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful lives of assets | 3 years | |||||
Software and Software Development Costs | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful lives of assets | 5 years |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Building and Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Building and Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 20 years |
Furniture and Fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 4 years |
Furniture and Fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 7 years |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Concentration Risk (Details) - Sales - Customer Concentration Risk | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Five Largest Customers | |||
Concentration Risk [Line Items] | |||
Percentage of consolidated revenues | 21.00% | 20.00% | 25.00% |
Largest Customer | |||
Concentration Risk [Line Items] | |||
Percentage of consolidated revenues | 6.00% | 6.00% | 7.00% |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative impact to open retained earnings | $ 1,469.4 | $ 1,727 |
Pro Forma | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Percent effect change to revenues | 1.00% | |
Percent effect change to earnings before income taxes | 3.00% | |
Cumulative impact to open retained earnings | $ 100 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |||
Anti-diluted options related to the purchase of common stock | 1.1 | 0.5 | 0.7 |
Earnings Per Share - Denominato
Earnings Per Share - Denominators of Basic and Diluted EPS Computations (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Weighted-average shares outstanding: | |||
Basic (in shares) | 116.8 | 118 | 118.3 |
Common stock equivalents (in shares) | 3.5 | 2.8 | 3.4 |
Diluted (in shares) | 120.4 | 120.8 | 121.6 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings | $ 206.9 | $ 109.1 | $ 62.1 | $ 49.9 | $ 187.1 | $ 75.9 | $ 30.1 | $ 33.7 | $ 427.9 | $ 326.8 | $ 307.5 |
Basic Weighted-average shares outstanding (in shares) | 116.8 | 118 | 118.3 | ||||||||
Basic EPS (in dollars per share) | $ 1.76 | $ 0.93 | $ 0.53 | $ 0.43 | $ 1.60 | $ 0.64 | $ 0.25 | $ 0.28 | $ 3.66 | $ 2.77 | $ 2.60 |
Earnings Per Share - Computat58
Earnings Per Share - Computation of Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings | $ 206.9 | $ 109.1 | $ 62.1 | $ 49.9 | $ 187.1 | $ 75.9 | $ 30.1 | $ 33.7 | $ 427.9 | $ 326.8 | $ 307.5 |
Diluted Weighted-average shares outstanding (in shares) | 120.4 | 120.8 | 121.6 | ||||||||
Diluted EPS (in dollars per share) | $ 1.72 | $ 0.90 | $ 0.52 | $ 0.42 | $ 1.57 | $ 0.63 | $ 0.25 | $ 0.28 | $ 3.56 | $ 2.70 | $ 2.53 |
Interest Expense, Net - Compone
Interest Expense, Net - Components of Interest Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |||
Interest expense on borrowings | $ 42.4 | $ 44.7 | $ 28.4 |
Interest income | (3.8) | (2) | (2.6) |
Interest expense, net | $ 38.6 | $ 42.7 | $ 25.7 |
Other Non-Operating (Income) 60
Other Non-Operating (Income) Expenses, Net - Components of Other Expenses, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |||
Losses from equity method investments | $ 2.7 | $ 5.2 | $ 5.1 |
Foreign currency exchange (gain) loss | (2) | 4.8 | 0.5 |
Other (gains) losses | (5.5) | (9.3) | 0 |
Other non-operating (income) expenses, net | $ (4.7) | $ 0.8 | $ 5.6 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
May 31, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Oct. 31, 2017 | Mar. 31, 2017 | Nov. 30, 2016 | Sep. 30, 2016 | Jul. 31, 2016 | Jun. 30, 2016 | Nov. 30, 2015 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||||||||||||||
Goodwill acquired | $ 1,254.9 | $ 1,159.3 | ||||||||||||
Purchase price, net of cash acquired | 108.3 | 448.7 | $ 53 | |||||||||||
Intellectual property purchase price | $ 95 | $ 95 | ||||||||||||
Cash payment to acquire intellectual property | $ 40 | 90 | 40 | 90 | 0 | |||||||||
Obligation payable | $ 5 | 5 | ||||||||||||
Summit | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Aggregate purchase price | $ 30.6 | |||||||||||||
Payment of contingent consideration | 26.4 | |||||||||||||
Note payable | 1.4 | |||||||||||||
Acquisition date fair value of contingent consideration liability | $ 2.7 | 4 | ||||||||||||
Contingent consideration liability payable period | 3 years | |||||||||||||
Contingent consideration maximum potential pay out | $ 11 | |||||||||||||
Net tangible assets acquired in transaction | 0.2 | |||||||||||||
Goodwill acquired | 18.5 | |||||||||||||
Intangible assets | $ 12 | |||||||||||||
Increase (decrease) in fair value of contingent consideration | $ 1.3 | |||||||||||||
Summit | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 7 years | |||||||||||||
Summit | Software Technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 5 years | |||||||||||||
ActivePath | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Aggregate purchase price | $ 24.2 | |||||||||||||
Payment of contingent consideration | 21.8 | |||||||||||||
Note payable | 2.4 | |||||||||||||
Goodwill acquired | 21 | |||||||||||||
Intangible assets | 5.6 | |||||||||||||
Liabilities assumed | $ 2.3 | |||||||||||||
ActivePath | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 2 years | |||||||||||||
ActivePath | Software Technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 5 years | |||||||||||||
FundAssist | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Aggregate purchase price | $ 47 | |||||||||||||
Payment of contingent consideration | 40.6 | |||||||||||||
Acquisition date fair value of contingent consideration liability | 6.4 | |||||||||||||
Goodwill acquired | 28.5 | |||||||||||||
Intangible assets | 20.4 | |||||||||||||
Liabilities assumed | $ 1.9 | |||||||||||||
FundAssist | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 6 years | |||||||||||||
FundAssist | Software Technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 5 years | |||||||||||||
NACC | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payment of contingent consideration | $ 410 | |||||||||||||
Net tangible assets acquired in transaction | 52.2 | |||||||||||||
Goodwill acquired | 135.7 | |||||||||||||
Intangible assets | 218.3 | |||||||||||||
Purchase price, net of cash acquired | $ 406.2 | |||||||||||||
NACC | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 10 years | |||||||||||||
NACC | Software Technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 7 years | |||||||||||||
M&O | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Aggregate purchase price | $ 24.9 | |||||||||||||
Payment of contingent consideration | 22.4 | |||||||||||||
Note payable | 2.5 | |||||||||||||
Goodwill acquired | 17.2 | |||||||||||||
Intangible assets | 11.2 | |||||||||||||
Liabilities assumed | $ 3.5 | |||||||||||||
M&O | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 7 years | |||||||||||||
M&O | Software Technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 6 years | |||||||||||||
MAL | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Aggregate purchase price | $ 24.8 | $ 24.9 | ||||||||||||
Payment of contingent consideration | 20.1 | 22.4 | ||||||||||||
Note payable | 3.2 | $ 2.5 | ||||||||||||
Acquisition date fair value of contingent consideration liability | $ 1.4 | $ 2.2 | ||||||||||||
Contingent consideration liability payable period | 4 years | |||||||||||||
Contingent consideration maximum potential pay out | $ 2.8 | |||||||||||||
Goodwill acquired | 22.6 | |||||||||||||
Intangible assets | 14.7 | |||||||||||||
Increase (decrease) in fair value of contingent consideration | (0.7) | |||||||||||||
Liabilities assumed | $ 2.9 | |||||||||||||
Equity interest in acquiree, percentage | 25.00% | |||||||||||||
Equity interests in acquiree held by others, percentage | 75.00% | |||||||||||||
Fair value of pre-existing investment | $ 9.6 | |||||||||||||
Nontaxable gain on investment | $ 9.3 | |||||||||||||
MAL | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 7 years | |||||||||||||
MAL | Software Technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible asset useful life | 5 years | |||||||||||||
QED | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Aggregate purchase price | $ 15.5 | |||||||||||||
Note payable | 1.5 | |||||||||||||
Contingent consideration maximum potential pay out | 3.5 | |||||||||||||
Goodwill acquired | 11.1 | |||||||||||||
Intangible assets | 4.8 | |||||||||||||
Increase (decrease) in fair value of contingent consideration | (0.5) | (0.2) | ||||||||||||
Liabilities assumed | 0.4 | |||||||||||||
Purchase price, net of cash acquired | 13.3 | |||||||||||||
Contingent consideration obligations | $ 0.7 | |||||||||||||
Contingent consideration payment period | 3 years | |||||||||||||
QED | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization period | 10 years | |||||||||||||
QED | Software Technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization period | 7 years | |||||||||||||
4sight Financial | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Aggregate purchase price | $ 39.6 | |||||||||||||
Contingent consideration maximum potential pay out | 14.5 | 14.5 | ||||||||||||
Goodwill acquired | 24.5 | 24.5 | ||||||||||||
Intangible assets | 26.8 | 26.8 | ||||||||||||
Increase (decrease) in fair value of contingent consideration | (2.6) | $ 1.2 | ||||||||||||
Liabilities assumed | 11.7 | 11.7 | ||||||||||||
Purchase price, net of cash acquired | 36 | |||||||||||||
Contingent consideration obligations | $ 3.6 | $ 0.8 | $ 3.6 | |||||||||||
Contingent consideration payment period | 3 years | |||||||||||||
Increase (decrease) in goodwill | $ (1.8) | |||||||||||||
4sight Financial | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization period | 10 years | |||||||||||||
4sight Financial | Software Technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization period | 6 years |
Acquisitions - Allocation of Pu
Acquisitions - Allocation of Purchase Price (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,254.9 | $ 1,159.3 | |
NACC | |||
Business Acquisition [Line Items] | |||
Accounts receivable, net | $ 89.1 | ||
Other current assets | 19.5 | ||
Property, plant and equipment | 45 | ||
Intangible assets | 218.3 | ||
Goodwill | 135.7 | ||
Other non-current assets | 1.6 | ||
Accounts payable | (14.3) | ||
Accrued expenses and other current liabilities | (62.9) | ||
Deferred taxes | (21.9) | ||
Deferred revenue | (1.1) | ||
Other long term liabilities | (2.9) | ||
Consideration paid, net of cash acquired | $ 406.2 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - NACC - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||
Revenues | $ 4,142.6 | $ 4,059.3 |
Net earnings | $ 335.6 | $ 312.4 |
Basic earnings per share (in dollars per share) | $ 2.84 | $ 2.64 |
Diluted earnings per share (in dollars per share) | $ 2.78 | $ 2.57 |
Fair Value of Financial Instr64
Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Cash and cash equivalents: | ||
Money market funds | $ 86.8 | $ 37.9 |
Other current assets: | ||
Available-for-sale securities | 0.1 | 0.1 |
Other non-current assets: | ||
Available-for-sale securities | 66.9 | 51.7 |
Level 1 | ||
Cash and cash equivalents: | ||
Money market funds | 86.8 | 37.9 |
Other current assets: | ||
Available-for-sale securities | 0.1 | 0.1 |
Other non-current assets: | ||
Available-for-sale securities | 66.9 | 50.6 |
Liabilities: | ||
Contingent consideration obligations | 0 | 0 |
Level 2 | ||
Cash and cash equivalents: | ||
Money market funds | 0 | 0 |
Other current assets: | ||
Available-for-sale securities | 0 | 0 |
Other non-current assets: | ||
Available-for-sale securities | 0 | 0 |
Liabilities: | ||
Contingent consideration obligations | 0 | 0 |
Level 3 | ||
Cash and cash equivalents: | ||
Money market funds | 0 | 0 |
Other current assets: | ||
Available-for-sale securities | 0 | 0 |
Other non-current assets: | ||
Available-for-sale securities | 0 | 1.1 |
Liabilities: | ||
Contingent consideration obligations | 18.6 | 6.7 |
Fair Value, Measurements, Recurring | ||
Other non-current assets: | ||
Total | 153.8 | 89.8 |
Liabilities: | ||
Total | 18.6 | 6.7 |
Fair Value, Measurements, Recurring | Level 1 | ||
Other non-current assets: | ||
Total | 153.8 | 88.6 |
Liabilities: | ||
Total | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Other non-current assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Total | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Other non-current assets: | ||
Total | 0 | 1.1 |
Liabilities: | ||
Total | $ 18.6 | $ 6.7 |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
MMDA account balances (less than in 2017) | $ 86.8 | $ 37.9 |
MMDA Account | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
MMDA account balances (less than in 2017) | $ 28.4 | $ 0.1 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Schedule of Changes in Level 3 Financial Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 6.7 | $ 5.5 |
Additional contingent consideration incurred | 13.5 | 2.8 |
Net decrease in contingent consideration liability | (1.1) | (0.6) |
Foreign currency impact on contingent consideration liability | 0.2 | (0.4) |
Payments | (0.7) | (0.7) |
Ending balance | 18.6 | $ 6.7 |
Estimate of Fair Value Measurement | Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value asset impairment | $ 1.1 |
Property, Plant and Equipment67
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment at Cost and Accumulated Depreciation (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 596.3 | $ 567.1 |
Less: Accumulated depreciation | (392.2) | (369) |
Property, plant and equipment, net | 204.1 | 198.1 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2.6 | 2.6 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 432.1 | 425.4 |
Furniture, leaseholds and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 161.5 | $ 139.1 |
Property, Plant and Equipment68
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Reduction in accumulated depreciation | $ 40.3 | $ 91.7 | |
Depreciation expense for property, plant and equipment | $ 63.4 | $ 53.5 | $ 38.7 |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets, Net - Schedule of Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill, gross | $ 1,159.3 | $ 999.3 | |
Transfers | $ 0 | ||
Additions | 88.2 | 175.5 | |
Fair value adjustments | 0 | (0.5) | |
Foreign currency translation and other | 7.4 | (14.9) | |
Accumulated impairment losses | 0 | 0 | |
Goodwill | 1,254.9 | 1,159.3 | |
Investor Communication Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill, gross | 821 | 689.7 | |
Transfers | (38.7) | ||
Additions | 88.2 | 135.7 | |
Fair value adjustments | 0 | 0 | |
Foreign currency translation and other | 13.9 | (4.4) | |
Accumulated impairment losses | 0 | 0 | |
Goodwill | 884.4 | 821 | |
Global Technology and Operations | |||
Goodwill [Roll Forward] | |||
Goodwill, gross | 338.4 | $ 309.6 | |
Transfers | 38.7 | ||
Additions | 0 | 39.8 | |
Fair value adjustments | 0 | (0.5) | |
Foreign currency translation and other | (6.5) | (10.5) | |
Accumulated impairment losses | 0 | 0 | |
Goodwill | $ 370.5 | $ 338.4 |
Goodwill and Intangible Asset70
Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Line Items] | |||
Goodwill additions | $ 88,200,000 | $ 175,500,000 | |
Reduction in goodwill | 0 | 500,000 | |
Goodwill impairment | $ 0 | 0 | $ 0 |
Change in estimates of projected future variables that has no impact on reported value of goodwill, percentage | 10.00% | ||
Reduction in accumulated amortization | $ 36,700,000 | 600,000 | |
Reduction in intangible assets | 36,700,000 | 600,000 | |
Summit | |||
Goodwill [Line Items] | |||
Goodwill additions | 18,500,000 | ||
Increase in fair value of contingent consideration liability | 1,300,000 | ||
ActivePath | |||
Goodwill [Line Items] | |||
Goodwill additions | 21,000,000 | ||
FundAssist | |||
Goodwill [Line Items] | |||
Goodwill additions | 28,500,000 | ||
NACC | |||
Goodwill [Line Items] | |||
Goodwill additions | 135,700,000 | ||
M&O | |||
Goodwill [Line Items] | |||
Goodwill additions | 17,200,000 | ||
MAL | |||
Goodwill [Line Items] | |||
Goodwill additions | 22,600,000 | ||
Increase in fair value of contingent consideration liability | (700,000) | ||
QED | |||
Goodwill [Line Items] | |||
Increase in fair value of contingent consideration liability | (500,000) | (200,000) | |
4sight Financial | |||
Goodwill [Line Items] | |||
Reduction in goodwill | 1,800,000 | ||
Increase in fair value of contingent consideration liability | $ (2,600,000) | $ 1,200,000 |
Goodwill and Intangible Asset71
Goodwill and Intangible Assets, Net - Schedule of Intangible Assets at Cost and Accumulated Amortization (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | $ 871.8 | $ 800 |
Accumulated Amortization | (377.7) | (313.6) |
Intangible Assets, net | 494.1 | 486.4 |
Software licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 117.5 | 124.6 |
Accumulated Amortization | (87.5) | (91.1) |
Intangible Assets, net | 30 | 33.6 |
Acquired software technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 117.8 | 106.9 |
Accumulated Amortization | (73) | (65.1) |
Intangible Assets, net | 44.8 | 41.9 |
Customer contracts and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 453.8 | 435.3 |
Accumulated Amortization | (162.1) | (128.3) |
Intangible Assets, net | 291.7 | 307 |
Acquired intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 135 | 95 |
Accumulated Amortization | (36.9) | 15 |
Intangible Assets, net | 98.1 | 80 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 47.7 | 38.1 |
Accumulated Amortization | (18.2) | (14.2) |
Intangible Assets, net | $ 29.5 | $ 24 |
Goodwill and Intangible Asset72
Goodwill and Intangible Assets, Net - Useful Lives (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Life (Years) | 5 years 8 months 12 days |
Acquired software technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Life (Years) | 4 years 2 months 12 days |
Software licenses | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Life (Years) | 2 years 9 months 18 days |
Customer contracts and lists | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Life (Years) | 7 years 1 month 6 days |
Acquired intellectual property | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Life (Years) | 3 years 8 months 12 days |
Other intangibles | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Life (Years) | 4 years 3 months 18 days |
Goodwill and Intangible Asset73
Goodwill and Intangible Assets, Net - Amortization of Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for intangible assets | $ 100.2 | $ 87.7 | $ 45.8 |
Goodwill and Intangible Asset74
Goodwill and Intangible Assets, Net - Estimated Amortization Expenses of Intangible Assets (Details) $ in Millions | Jun. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 104.9 |
2,020 | 99 |
2,021 | 89.6 |
2,022 | 66.2 |
2,023 | 50.7 |
Thereafter | $ 83.7 |
Other Non-Current Assets - Sche
Other Non-Current Assets - Schedule of Other Non-Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred client conversion and start-up costs | $ 186 | $ 162.4 |
Deferred data center costs | 35 | 40.1 |
Long-term investments | 80.3 | 63.4 |
Long-term broker fees | 28.7 | 24.2 |
Other | 30.5 | 26.4 |
Total | $ 360.5 | $ 316.4 |
Accrued Expenses and Other Cu76
Accrued Expenses and Other Current Liabilities - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Employee compensation and benefits | $ 233.2 | $ 221.2 |
Accrued broker fees | 85.2 | 79.5 |
Accrued taxes | 25.3 | 80.2 |
Accrued dividend payable | 42.5 | 37.9 |
Customer deposits | 39.2 | 39.5 |
Other | 53.9 | 37.1 |
Total | $ 479.2 | $ 495.3 |
Borrowings - Outstanding Borrow
Borrowings - Outstanding Borrowings (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Line Of Credit Facility Covenant Compliance [Line Items] | ||
Principal amount outstanding at June 30, 2018 | $ 1,060,000,000 | |
Long-term debt | 1,053,400,000 | $ 1,102,100,000 |
Unused Available Capacity | 840,000,000 | |
Fair Value at June 30, 2018 | 1,040,200,000 | |
Revolving Credit Facility | Fiscal 2017 Revolving Credit Facility | Long-term debt | ||
Line Of Credit Facility Covenant Compliance [Line Items] | ||
Principal amount outstanding at June 30, 2018 | 160,000,000 | |
Long-term debt | 160,000,000 | 210,000,000 |
Unused Available Capacity | 840,000,000 | |
Fair Value at June 30, 2018 | 160,000,000 | |
Senior Notes | Fiscal 2014 Senior Notes | Long-term debt | ||
Line Of Credit Facility Covenant Compliance [Line Items] | ||
Principal amount outstanding at June 30, 2018 | 400,000,000 | |
Long-term debt | 398,500,000 | 397,900,000 |
Fair Value at June 30, 2018 | 405,800,000 | |
Senior Notes | Fiscal 2016 Senior Notes | Long-term debt | ||
Line Of Credit Facility Covenant Compliance [Line Items] | ||
Principal amount outstanding at June 30, 2018 | 500,000,000 | |
Long-term debt | 494,800,000 | $ 494,100,000 |
Fair Value at June 30, 2018 | $ 474,400,000 |
Borrowings - Future Principal P
Borrowings - Future Principal Payments on Outstanding Debt (Details) $ in Millions | Jun. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 0 |
2,020 | 0 |
2,021 | 400 |
2,022 | 160 |
2,023 | 0 |
Thereafter | 500 |
Total | $ 1,060 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Feb. 06, 2017 | Jun. 30, 2016 | Aug. 31, 2014 | Aug. 31, 2013 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||||||
Outstanding borrowings | $ 1,053,400,000 | $ 1,102,100,000 | |||||
Unused available capacity | 840,000,000 | ||||||
Fair value of fixed-rate notes | 1,040,200,000 | ||||||
Outstanding borrowings under lines of credit | $ 0 | $ 0 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Weighted-average interest rate | 2.44% | 1.79% | 1.30% | ||||
Line of credit debt issuance costs, net | $ 2,100,000 | ||||||
Fiscal 2017 Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Fiscal 2017 Revolving Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||
Debt instrument, term | 5 years | ||||||
Borrowing tranche period | 360 days | ||||||
Commitment fee percentage | 0.125% | ||||||
Annual facility fees | 1,300,000 | $ 1,100,000 | |||||
Line of credit debt issuance costs, gross | $ 1,800,000 | ||||||
Fiscal 2017 Revolving Credit Facility | Revolving Credit Facility | Long-term debt | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding borrowings | 160,000,000 | 210,000,000 | |||||
Unused available capacity | 840,000,000 | ||||||
Fair value of fixed-rate notes | 160,000,000 | ||||||
Fiscal 2017 Revolving Credit Facility U.S. Dollar Tranche | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 900,000,000 | ||||||
Fiscal 2017 Revolving Credit Facility Multicurrency Tranche | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
Fiscal 2012 Revolving Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit debt issuance costs, net | 200,000 | ||||||
Fiscal 2015 Revolving Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 750,000,000 | ||||||
Debt instrument, term | 5 years | ||||||
Line of credit debt issuance costs, net | 600,000 | ||||||
Fiscal 2014 Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of senior notes | $ 400,000,000 | ||||||
Debt issuance costs, gross | $ 4,300,000 | ||||||
Debt instrument amortization period | 7 years | ||||||
Debt issuance costs, net | 1,300,000 | 1,900,000 | |||||
Stated interest rate | 3.95% | ||||||
Percentage of principal amount at issuance | 99.871% | ||||||
Effective interest rate | 3.971% | ||||||
Fiscal 2014 Senior Notes | Senior Notes | Level 1 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of fixed-rate notes | 405,800,000 | 419,100,000 | |||||
Fiscal 2014 Senior Notes | Senior Notes | Long-term debt | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding borrowings | 398,500,000 | 397,900,000 | |||||
Fair value of fixed-rate notes | 405,800,000 | ||||||
Fiscal 2016 Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of senior notes | 500,000,000 | ||||||
Debt issuance costs, gross | 4,500,000 | ||||||
Debt instrument amortization period | 10 years | ||||||
Debt issuance costs, net | 3,500,000 | $ 4,000,000 | |||||
Stated interest rate | 3.40% | ||||||
Percentage of principal amount at issuance | 99.589% | ||||||
Effective interest rate | 3.449% | ||||||
Fiscal 2016 Senior Notes | Senior Notes | Level 1 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of fixed-rate notes | 474,400,000 | $ 494,600,000 | |||||
Fiscal 2016 Senior Notes | Senior Notes | Long-term debt | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding borrowings | 494,800,000 | $ 494,100,000 | |||||
Fair value of fixed-rate notes | $ 474,400,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to non-vested stock options | $ 18.7 | ||
Unrecognized compensation cost of restricted stock awards | $ 43.1 | ||
Amortization period of unrecognized compensation cost | 3 years 2 months 16 days | ||
Amortization period of unrecognized compensation cost for restricted stock awards | 1 year 7 months 6 days | ||
Repurchase of common stock shares (in shares) | shares | 2.4 | 4.9 | 2.1 |
Segment, Continuing Operations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 55.1 | $ 46.1 | $ 43.1 |
Related tax benefits | $ 15.7 | $ 15.9 | $ 15.4 |
Opportunistic Buy-Backs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Repurchase of common stock shares (in shares) | shares | 2.2 | 4.6 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period of cost recognition | 12 months | ||
Stock Options | Graded Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Stock option term in years | 10 years | ||
Stock Options | Cliff Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Stock option term in years | 10 years | ||
Stock Options | Cliff Vesting - Year One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option award vesting percentage | 25.00% | ||
Stock Options | Cliff Vesting - Year Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option award vesting percentage | 25.00% | ||
Stock Options | Cliff Vesting - Year Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option award vesting percentage | 25.00% | ||
Stock Options | Cliff Vesting - Year Four | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option award vesting percentage | 25.00% | ||
Time-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 2 years 6 months | ||
Stock conversion ratio | 1 | ||
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 2 years 6 months | ||
Stock conversion ratio | 1 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Incentive Equity Awards (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 5,137,641 | 7,059,067 | 7,673,947 |
Granted (in shares) | 1,079,442 | 568,465 | 679,995 |
Exercised (in shares) | (1,654,877) | (2,384,449) | (1,192,266) |
Expired/forfeited (in shares) | (83,918) | (105,442) | (102,609) |
Ending balance (in shares) | 4,478,288 | 5,137,641 | 7,059,067 |
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 39.63 | $ 32.57 | $ 29 |
Granted (in dollars per share) | 93.42 | 67.15 | 52.51 |
Exercised (in dollars per share) | 31.09 | 25.44 | 20.83 |
Expired/forfeited (in dollars per share) | 42.89 | 36.13 | 34.32 |
Ending balance (in dollars per share) | $ 55.69 | $ 39.63 | $ 32.57 |
Time-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 1,074,593 | 1,202,896 | 1,526,460 |
Granted (in shares) | 456,217 | 531,301 | 574,889 |
Vesting of RSUs (in shares) | (463,561) | (586,617) | (758,964) |
Expired/forfeited (in shares) | (84,850) | (72,987) | (139,489) |
Ending balance (in shares) | 982,399 | 1,074,593 | 1,202,896 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Beginning balance (in dollars per share) | $ 55.98 | $ 44.34 | $ 34.51 |
Granted (in dollars per share) | 78.86 | 64.38 | 52.28 |
Vesting of RSUs (in dollars per share) | 52.86 | 40 | 31.30 |
Expired/forfeited (in dollars per share) | 60.18 | 53.74 | 40.45 |
Ending balance (in dollars per share) | $ 67.72 | $ 55.98 | $ 44.34 |
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 470,862 | 468,516 | 547,865 |
Granted (in shares) | 198,485 | 225,731 | 262,292 |
Vesting of RSUs (in shares) | (150,068) | (171,082) | (264,868) |
Expired/forfeited (in shares) | (123,590) | (52,303) | (76,773) |
Ending balance (in shares) | 395,689 | 470,862 | 468,516 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Beginning balance (in dollars per share) | $ 58.26 | $ 47.15 | $ 33.94 |
Granted (in dollars per share) | 76.71 | 64.52 | 50.79 |
Vesting of RSUs (in dollars per share) | 52.96 | 38.50 | 30.30 |
Expired/forfeited (in dollars per share) | 43 | 50.38 | 23.43 |
Ending balance (in dollars per share) | $ 74.29 | $ 58.26 | $ 47.15 |
Stock-Based Compensation - Su82
Stock-Based Compensation - Summary of Incentive Equity Awards (Additional Information) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic values of stock options exercised | $ 116.3 | $ 104.7 | $ 41.3 |
Outstanding (in the money) stock options aggregate intrinsic value | 266.1 | ||
Time-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic values of Time-based restricted stock units | $ 50.6 | 39.8 | 44.9 |
Shares (in shares) | 0.9 | ||
Aggregate intrinsic value | $ 106.2 | ||
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic values of Time-based restricted stock units | $ 19.1 | $ 11.6 | $ 15.6 |
Outstanding (in the money) stock options fiscal year-end share price (in dollars per share) | $ 115.10 | ||
Shares (in shares) | 0.4 | ||
Aggregate intrinsic value | $ 44.8 | ||
Vested Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding (in the money) stock options fiscal year-end share price (in dollars per share) | $ 115.10 | ||
Outstanding (in the money) stock options aggregate intrinsic value | $ 191.5 |
Stock-Based Compensation - Su83
Stock-Based Compensation - Summary of Outstanding Stock Options (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate intrisic value | $ | $ 266.1 |
Outstanding Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding (in shares) | shares | 4,478,288 |
Weighted average remaining contractual life | 6 years 11 months 19 days |
Weighted average exercise price (in dollars per share) | $ 55.69 |
Outstanding Options | $0.01 to $20.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 0.01 |
Exercise price range, maximum | $ 20 |
Options outstanding (in shares) | shares | 37,500 |
Weighted average remaining contractual life | 10 months 2 days |
Weighted average exercise price (in dollars per share) | $ 17.26 |
Outstanding Options | $20.01 to $35.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 20.01 |
Exercise price range, maximum | $ 35 |
Options outstanding (in shares) | shares | 825,657 |
Weighted average remaining contractual life | 3 years 9 months 18 days |
Weighted average exercise price (in dollars per share) | $ 23.07 |
Outstanding Options | $35.01 to $50.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 35.01 |
Exercise price range, maximum | $ 50 |
Options outstanding (in shares) | shares | 734,675 |
Weighted average remaining contractual life | 5 years 7 months 17 days |
Weighted average exercise price (in dollars per share) | $ 37.57 |
Outstanding Options | $50.01 to $65.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 50.01 |
Exercise price range, maximum | $ 65 |
Options outstanding (in shares) | shares | 1,301,084 |
Weighted average remaining contractual life | 7 years 1 month 10 days |
Weighted average exercise price (in dollars per share) | $ 52.10 |
Outstanding Options | $65.01 to $80.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 65.01 |
Exercise price range, maximum | $ 80 |
Options outstanding (in shares) | shares | 506,692 |
Weighted average remaining contractual life | 8 years 7 months 13 days |
Weighted average exercise price (in dollars per share) | $ 67.32 |
Outstanding Options | $80.01 to $95.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 80.01 |
Exercise price range, maximum | $ 95 |
Options outstanding (in shares) | shares | 1,072,680 |
Weighted average remaining contractual life | 9 years 7 months 10 days |
Weighted average exercise price (in dollars per share) | $ 93.41 |
Stock-Based Compensation - Su84
Stock-Based Compensation - Summary of Exercisable Stock Options (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate intrinsic value | $ | $ 191.5 |
Exercisable Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options exercisable (in shares) | shares | 2,522,834 |
Weighted average remaining contractual life | 5 years 6 months 29 days |
Weighted average exercise price (in dollars per share) | $ 39.18 |
Exercisable Options | $0.01 to $20.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 0.01 |
Exercise price range, maximum | $ 20 |
Options exercisable (in shares) | shares | 37,500 |
Weighted average remaining contractual life | 10 months 2 days |
Weighted average exercise price (in dollars per share) | $ 17.26 |
Exercisable Options | $20.01 to $35.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 20.01 |
Exercise price range, maximum | $ 35 |
Options exercisable (in shares) | shares | 825,657 |
Weighted average remaining contractual life | 3 years 9 months 18 days |
Weighted average exercise price (in dollars per share) | $ 23.07 |
Exercisable Options | $35.01 to $50.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 35.01 |
Exercise price range, maximum | $ 50 |
Options exercisable (in shares) | shares | 734,675 |
Weighted average remaining contractual life | 5 years 7 months 17 days |
Weighted average exercise price (in dollars per share) | $ 37.57 |
Exercisable Options | $50.01 to $65.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 50.01 |
Exercise price range, maximum | $ 65 |
Options exercisable (in shares) | shares | 774,976 |
Weighted average remaining contractual life | 7 years 22 days |
Weighted average exercise price (in dollars per share) | $ 52.42 |
Exercisable Options | $65.01 to $80.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 65.01 |
Exercise price range, maximum | $ 80 |
Options exercisable (in shares) | shares | 111,435 |
Weighted average remaining contractual life | 8 years 7 months 13 days |
Weighted average exercise price (in dollars per share) | $ 67.32 |
Exercisable Options | $80.01 to $95.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum | 80.01 |
Exercise price range, maximum | $ 95 |
Options exercisable (in shares) | shares | 38,591 |
Weighted average remaining contractual life | 9 years 4 months 21 days |
Weighted average exercise price (in dollars per share) | $ 88.66 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Determine Fair Values of Stock Option Grants (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Graded Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.70% | 2.10% | 1.40% |
Dividend yield | 1.60% | 2.00% | 2.30% |
Weighted-average volatility factor | 23.80% | 23.10% | 26.70% |
Weighted-average expected life (in years) | 6 years 6 months | 6 years 5 months 19 days | 6 years 6 months |
Weighted-average fair value (in dollars) | $ 22.16 | $ 13.74 | $ 10.82 |
Cliff Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.70% | ||
Dividend yield | 1.60% | ||
Weighted-average volatility factor | 23.80% | ||
Weighted-average expected life (in years) | 6 years | ||
Weighted-average fair value (in dollars) | $ 21.65 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Savings Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Saving Plan costs recorded | $ 36.3 | $ 37 | $ 28.5 |
Domestic Plan | 401(k) savings plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Saving Plan costs recorded | 34.4 | 35.2 | 27.3 |
Domestic Plan | ERSP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Saving Plan costs recorded | $ 1.9 | $ 1.8 | $ 1.2 |
Employee Benefit Plans - Defi87
Employee Benefit Plans - Defined Benefit Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit expense | $ 4.9 | $ 4.3 | $ 3.8 |
Benefit obligation | 42.8 | 39.7 | 33.6 |
SORP | Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit expense | 4.3 | 3.6 | 3.2 |
Benefit obligation | 38.3 | 35.4 | 30 |
SERP | Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit expense | 0.6 | 0.7 | 0.6 |
Benefit obligation | $ 4.5 | $ 4.3 | $ 3.6 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Post-retirement Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit expense | $ 4.9 | $ 4.3 | $ 3.8 |
Benefit obligation | $ 42.8 | 39.7 | 33.6 |
Executive Retiree Health Insurance Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, maximum age eligibility | 65 years | ||
Benefit expense | $ 0.4 | 0.3 | 0.3 |
Benefit obligation | $ 5.3 | $ 4.9 | $ 4.2 |
Income Taxes - Earnings from Co
Income Taxes - Earnings from Continuing Operations before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings before income taxes: | |||||||||||
U.S. | $ 450 | $ 398.6 | $ 389.2 | ||||||||
Foreign | 111.1 | 89.5 | 79.7 | ||||||||
Earnings before income taxes | $ 258 | $ 125.2 | $ 103.5 | $ 74.3 | $ 284.7 | $ 106.3 | $ 45.7 | $ 51.5 | $ 561 | $ 488.1 | $ 468.9 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current: | |||
U.S. Domestic | $ 89.4 | $ 138.2 | $ 134.9 |
Foreign | 43.4 | 24.8 | 23.9 |
State | 9.6 | 13 | 8.5 |
Total current | 142.4 | 176 | 167.3 |
Deferred: | |||
U.S. Domestic | (13.6) | (7.9) | (7.4) |
Foreign | 4.9 | (4.2) | (0.4) |
State | (0.6) | (2.5) | 1.9 |
Total deferred | (9.3) | (14.7) | (5.9) |
Total Provision for income taxes | $ 133.1 | $ 161.4 | $ 161.4 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income tax reconciliation | |||
Provision for income taxes at U.S. statutory rate | $ 157.4 | $ 170.8 | $ 164.1 |
Increase (decrease) in Provision for income taxes from: | |||
State taxes, net of federal tax | 9.4 | 6.7 | 7 |
Foreign taxes | (2.4) | (6.9) | (5.6) |
Valuation allowances | (5) | (0.6) | (0.3) |
Non-taxable investment gain | 0 | (3.3) | 0 |
Stock-Based Compensation - Excess Tax Benefits | (40.9) | 0 | 0 |
Tax Act Items | 15.4 | 0 | 0 |
Other | (0.8) | (5.3) | (3.8) |
Total Provision for income taxes | $ 133.1 | $ 161.4 | $ 161.4 |
Tax rate reconciliation (percent) | |||
Provision for income taxes at U.S. statutory rate | 28.10% | 35.00% | 35.00% |
Increase (decrease) in Provision for income taxes from: | |||
State taxes, net of federal tax | 1.70% | 1.40% | 1.50% |
Foreign taxes | (0.40%) | (1.40%) | (1.20%) |
Valuation allowances | (0.90%) | (0.10%) | (0.10%) |
Non-taxable investment gain | (0.00%) | (0.70%) | (0.00%) |
Stock-Based Compensation - Excess Tax Benefits | (7.30%) | 0.00% | 0.00% |
Tax Act Items | 2.70% | 0.00% | 0.00% |
Other | (0.10%) | (1.10%) | (0.70%) |
Total Provision for income taxes | 23.70% | 33.10% | 34.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Provision for income taxes | $ 133.1 | $ 161.4 | $ 161.4 | |
Effective income tax rate | 23.70% | 33.10% | 34.40% | |
Excess tax benefit related to stock-based compensation awards | $ 40.9 | $ 0 | $ 0 | |
Tax Act Items | $ 15.4 | $ 0 | $ 0 | |
Provision for income taxes at U.S. statutory rate | 28.10% | 35.00% | 35.00% | |
Estimated tax obligation | $ 12.4 | |||
Withholding tax | 18.4 | |||
Transition tax for accumulated foreign earnings | 30.8 | |||
Remeasurement of deferred tax liability | 15.3 | |||
Effective tax rate excluding tax exempt income | 33.70% | |||
Increase in current year tax accrual | $ 2.2 | |||
Accumulated earnings attributable to foreign subsidiaries | 466.4 | |||
Existing undistributed accumulated earnings of foreign subsidiary | 175.8 | |||
Existing undistributed accumulated earnings not permanently reinvested outside the US | 290.6 | |||
Unremitted earnings | 11.1 | 0 | ||
Deferred tax asset valuation allowances | 3.8 | 9.3 | ||
Reserve for unrecognized tad positions | 19.4 | 13.4 | $ 12.9 | |
Gross decrease for prior period tax positions | 2.4 | 2.8 | 9.4 | |
Accrued interest and penalties related to uncertain tax positions | 0.5 | (0.2) | (0.3) | |
Total liability recognized | $ 3.7 | $ 3.2 | $ 3.4 | |
Increase in effective tax rate related to a more favorable mix of geographical income | 0.20% | |||
Decrease in effective tax rate related to Federal research and development credits | (0.34%) | |||
Increase in Cumulative Discrete Tax Benefits | 0.02% | |||
Increase in effective tax rate related to gross tax benefit | 0.36% | |||
Decrease in additional US federal Tax Expense | (0.16%) | |||
Foreign | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unremitted earnings | $ 10.3 | |||
Net operating loss carryforwards | 15.2 | |||
Foreign net operating loss carryforwards subject to expiration | 2.2 | |||
Foreign net operating loss carryforwards not subject to expiration | 13 | |||
State and Local | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unremitted earnings | 0.8 | |||
Domestic | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Net operating loss carryforwards | $ 22.5 | |||
Earliest Tax Year | Foreign | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Expiration year of operating loss carryforwards | Dec. 31, 2018 | |||
Earliest Tax Year | Domestic | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Expiration year of operating loss carryforwards | Dec. 31, 2018 | |||
Latest Tax Year | Foreign | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Expiration year of operating loss carryforwards | Dec. 31, 2027 | |||
Latest Tax Year | Domestic | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Expiration year of operating loss carryforwards | Dec. 31, 2030 | |||
MAL | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Nontaxable gain on investment | $ 9.3 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Classification: | ||
Current deferred tax assets (included in Other current assets) | $ 0 | $ 26.1 |
Long-term deferred tax assets (included in Other non-current assets) | 9.2 | 2.7 |
Current deferred tax liabilities (included in Accrued expenses and other current liabilities) | 0 | (0.8) |
Long-term deferred tax liabilities | (57.9) | (82) |
Deferred tax assets: | ||
Accrued expenses not currently deductible | 3.5 | 5.6 |
Depreciation | 2.2 | 18.8 |
Compensation and benefits not currently deductible | 51.7 | 70.3 |
Net operating and capital losses | 12.1 | 20.4 |
Tax credits | 5.2 | 4.4 |
Other | 6.6 | 6.8 |
Total deferred tax assets | 81.3 | 126.3 |
Less: Valuation allowances | (3.8) | (9.3) |
Deferred tax assets, net | 77.6 | 117 |
Deferred tax liabilities: | ||
Goodwill and identifiable intangibles | 93.4 | 141.4 |
Net deferred expenses | 15.5 | 20.2 |
Unremitted earnings | 11.1 | 0 |
Other | 6.2 | 9.4 |
Deferred tax liabilities | 126.3 | 171 |
Net deferred tax liabilities | $ (48.8) | $ (54) |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 18.7 | $ 18.2 | $ 24.4 |
Gross increase related to prior period tax positions | 3.5 | 0.6 | 0.6 |
Gross increase related to current period tax positions | 3 | 2.7 | 2.6 |
Gross decrease related to prior period tax positions | (2.4) | (2.8) | (9.4) |
Ending balance | $ 22.8 | $ 18.7 | $ 18.2 |
Contractual Commitments, Cont95
Contractual Commitments, Contingencies, and Off-Balance Sheet Arrangements - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2018USD ($)term | Jun. 30, 2017USD ($) | |
Contractual Commitments Contingencies And Off- Balance Sheet Arrangements [Line Items] | |||
Commitments under agreement | $ 27.9 | ||
Capitalized costs related to the build out of the IBM data center | 62.3 | ||
Long-term purchase commitments net book value | 31.8 | ||
Capital commitment | 5.3 | $ 6 | |
Remaining capital commitment | 1.8 | ||
Additional deferred payment | $ 40 | ||
IT Services Agreement | |||
Contractual Commitments Contingencies And Off- Balance Sheet Arrangements [Line Items] | |||
Agreement extension term, period | 2 years | ||
Number of renewal terms option one | term | 1 | ||
Renewal term option one (in months) | 12 months | ||
Commitments under agreement | $ 340.6 | ||
EU IT Services Agreement | |||
Contractual Commitments Contingencies And Off- Balance Sheet Arrangements [Line Items] | |||
Number of renewal terms option one | term | 1 | ||
Renewal term option one (in months) | 12 months | ||
Number of renewal terms option two | term | 1 | ||
Renewal term option two (in months) | 24 months | ||
Capitalized costs related to the build out of the IBM data center | $ 4.9 | ||
Long-term purchase commitments net book value | 2.9 | ||
Decrease in asset balance | 0.1 | ||
Other Noncurrent Assets | |||
Contractual Commitments Contingencies And Off- Balance Sheet Arrangements [Line Items] | |||
Capitalized costs related to the build out of the IBM data center | $ 0.3 |
Contractual Commitments, Cont96
Contractual Commitments, Contingencies, and Off-Balance Sheet Arrangements - Data Center Agreements - Total Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Loss Contingencies [Line Items] | |||
Total expenses | $ 107.5 | $ 104.8 | $ 106 |
IT Services Agreement | |||
Loss Contingencies [Line Items] | |||
Total expenses | 101.2 | 99.3 | 98.5 |
EU IT Services Agreement | |||
Loss Contingencies [Line Items] | |||
Total expenses | $ 6.3 | $ 5.5 | $ 7.5 |
Contractual Commitments, Cont97
Contractual Commitments, Contingencies, and Off-Balance Sheet Arrangements - Data Center Agreements - Amortization Expense of Capitalized Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Loss Contingencies [Line Items] | |||
Amortization of capitalized costs | $ 5.8 | $ 5 | $ 4.8 |
IT Services Agreement | |||
Loss Contingencies [Line Items] | |||
Amortization of capitalized costs | 5.3 | 4.6 | 4.3 |
EU IT Services Agreement | |||
Loss Contingencies [Line Items] | |||
Amortization of capitalized costs | $ 0.5 | $ 0.4 | $ 0.6 |
Contractual Commitments, Cont98
Contractual Commitments, Contingencies, and Off-Balance Sheet Arrangements - Contractual Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Data center expenses | $ 107.5 | $ 104.8 | $ 106 |
Facilities and equipment leases | 50.4 | 50.3 | 38.1 |
Software license agreements | 33.7 | 32 | 26.5 |
Software/hardware maintenance agreements | 63.5 | 63.2 | 53.3 |
Total expenses | $ 255 | $ 250.3 | $ 223.9 |
Contractual Commitments, Cont99
Contractual Commitments, Contingencies, and Off-Balance Sheet Arrangements - Schedule of Minimum Commitments Related to Technology Service Agreement (Details) $ in Millions | Jun. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 120.5 |
2,020 | 111.1 |
2,021 | 101.2 |
2,022 | 89.7 |
2,023 | 86 |
Thereafter | 211.3 |
Total | $ 719.8 |
Changes in Accumulated Other100
Changes in Accumulated Other Comprehensive Income/(Loss) by Component Changes in Accumulated Other Comprehensive Income/(Loss) by Component - Summary of Components of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | $ 1,003.8 | $ 1,045.5 | $ 927.8 |
Other comprehensive income/(loss) before reclassifications | 6.7 | (18.2) | (17.7) |
Amounts reclassified from accumulated other comprehensive income/(loss) | (2.7) | 0.6 | 0.4 |
Balance | 1,094.3 | 1,003.8 | 1,045.5 |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (48.9) | (31.9) | (16.6) |
Other comprehensive income/(loss) before reclassifications | 5.7 | (17) | (15.4) |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 0 | 0 |
Balance | (43.2) | (48.9) | (31.9) |
Available- for-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | 2.3 | 1.3 | 2 |
Other comprehensive income/(loss) before reclassifications | 1.1 | 1 | (0.7) |
Amounts reclassified from accumulated other comprehensive income/(loss) | (3.7) | 0 | 0 |
Balance | (0.4) | 2.3 | 1.3 |
Pension and Post- Retirement Liabilities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (9.2) | (7.6) | (6.3) |
Other comprehensive income/(loss) before reclassifications | (0.1) | (2.2) | (1.6) |
Amounts reclassified from accumulated other comprehensive income/(loss) | 1 | 0.6 | 0.4 |
Balance | (8.3) | (9.2) | (7.6) |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (55.8) | (38.2) | (20.9) |
Balance | $ (51.9) | $ (55.8) | $ (38.2) |
Changes in Accumulated Other101
Changes in Accumulated Other Comprehensive Income/(Loss) by Component- Summary of Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of loss, net of tax | $ 2.7 | $ (0.6) | $ (0.4) |
Available- for-Sale Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of loss, net of tax | 3.7 | 0 | 0 |
Available- for-Sale Securities | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of loss reclassified into Selling, general and administrative expenses | (5.5) | 0 | 0 |
Tax income | 1.7 | 0 | 0 |
Amortization of loss, net of tax | (3.7) | 0 | 0 |
Pension and Post- Retirement Liabilities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of loss, net of tax | (1) | (0.6) | (0.4) |
Pension and Post- Retirement Liabilities | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of loss reclassified into Selling, general and administrative expenses | 1.5 | 1 | 0.6 |
Tax income | (0.5) | (0.4) | (0.2) |
Amortization of loss, net of tax | $ 1 | $ 0.6 | $ 0.4 |
Financial Data by Segment - Sch
Financial Data by Segment - Schedule of Financial Data Segment Reporting Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2018USD ($)Segment | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||||
Number of segments | 2 | 2 | |||||||||||
Revenues | $ 1,320.4 | $ 1,071.9 | $ 1,012.8 | $ 924.8 | $ 1,345.7 | $ 1,008.9 | $ 892.6 | $ 895.3 | $ 4,329.9 | $ 4,142.6 | $ 2,897 | ||
Earnings (loss) before income taxes | 258 | $ 125.2 | $ 103.5 | $ 74.3 | 284.7 | $ 106.3 | $ 45.7 | $ 51.5 | 561 | 488.1 | 468.9 | ||
Assets | 3,304.7 | 3,149.8 | $ 3,304.7 | $ 3,304.7 | 3,304.7 | 3,149.8 | 2,872.7 | ||||||
Capital expenditures | 76.7 | 85.4 | 57.7 | ||||||||||
Depreciation and amortization | 82.1 | 68.6 | 52.6 | ||||||||||
Amortization of acquired intangibles and purchased intellectual property | 81.4 | 72.6 | 31.8 | ||||||||||
Amortization of other assets | 48.5 | 41 | 36.6 | ||||||||||
Operating Segments | Investor Communication Solutions | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 3,495.6 | 3,398.6 | 2,200 | ||||||||||
Earnings (loss) before income taxes | 494.6 | 428.2 | 413.9 | ||||||||||
Assets | 2,089 | 1,931.2 | 2,089 | 2,089 | 2,089 | 1,931.2 | 1,415.8 | ||||||
Capital expenditures | 39.2 | 33.7 | 38 | ||||||||||
Depreciation and amortization | 52.2 | 47.5 | 30.1 | ||||||||||
Amortization of acquired intangibles and purchased intellectual property | 67.8 | 60.8 | 25.1 | ||||||||||
Amortization of other assets | 12.6 | 12.4 | 6.6 | ||||||||||
Operating Segments | Global Technology and Operations | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 911.6 | 825.5 | 758.4 | ||||||||||
Earnings (loss) before income taxes | 199.3 | 162.5 | 130.6 | ||||||||||
Assets | 908.3 | 886.2 | 908.3 | 908.3 | 908.3 | 886.2 | 771.4 | ||||||
Capital expenditures | 28.6 | 11.1 | 8.5 | ||||||||||
Depreciation and amortization | 10.8 | 9.9 | 11.7 | ||||||||||
Amortization of acquired intangibles and purchased intellectual property | 13.6 | 11.8 | 6.8 | ||||||||||
Amortization of other assets | 30.6 | 23.9 | 25.7 | ||||||||||
Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Earnings (loss) before income taxes | (151.4) | (110.5) | (79) | ||||||||||
Assets | 307.4 | 332.4 | 307.4 | 307.4 | 307.4 | 332.4 | 685.5 | ||||||
Capital expenditures | 8.8 | 40.5 | 11.2 | ||||||||||
Depreciation and amortization | 19.1 | 11.1 | 10.9 | ||||||||||
Amortization of acquired intangibles and purchased intellectual property | 0 | 0 | 0 | ||||||||||
Amortization of other assets | 5.3 | 4.6 | 4.3 | ||||||||||
Foreign Currency Exchange | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | (77.3) | (81.5) | (61.4) | ||||||||||
Earnings (loss) before income taxes | 18.6 | 8.1 | 3.4 | ||||||||||
Assets | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||||
Amortization of acquired intangibles and purchased intellectual property | 0 | 0 | 0 | ||||||||||
Amortization of other assets | $ 0 | $ 0 | $ 0 |
Financial Data by Segment - 103
Financial Data by Segment - Schedule of Revenues and Assets by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 1,320.4 | $ 1,071.9 | $ 1,012.8 | $ 924.8 | $ 1,345.7 | $ 1,008.9 | $ 892.6 | $ 895.3 | $ 4,329.9 | $ 4,142.6 | $ 2,897 |
Assets | 3,304.7 | 3,149.8 | 3,304.7 | 3,149.8 | 2,872.7 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 3,907.2 | 3,771.9 | 2,582.1 | ||||||||
Assets | 2,661.9 | 2,579.1 | 2,661.9 | 2,579.1 | 2,424.9 | ||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 273.6 | 251.4 | 213.7 | ||||||||
Assets | 216.7 | 237.9 | 216.7 | 237.9 | 171.6 | ||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 118.7 | 92.1 | 78.3 | ||||||||
Assets | 257.8 | 238.1 | 257.8 | 238.1 | 202.5 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 30.4 | 27.3 | 23 | ||||||||
Assets | $ 168.3 | $ 94.7 | $ 168.3 | $ 94.7 | $ 73.7 |
Quarterly Financial Results 104
Quarterly Financial Results (Unaudited) - Summary of Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 1,320.4 | $ 1,071.9 | $ 1,012.8 | $ 924.8 | $ 1,345.7 | $ 1,008.9 | $ 892.6 | $ 895.3 | $ 4,329.9 | $ 4,142.6 | $ 2,897 |
Gross profit | 450.3 | 268.8 | 243 | 198.2 | 435.6 | 235.2 | 184.9 | 177.4 | 1,160.3 | 1,033 | |
Operating income | 265.4 | 130 | 115.1 | 84.4 | 297 | 109.7 | 58.8 | 66 | 594.9 | 531.6 | |
Earnings before income taxes | 258 | 125.2 | 103.5 | 74.3 | 284.7 | 106.3 | 45.7 | 51.5 | 561 | 488.1 | 468.9 |
Net earnings | $ 206.9 | $ 109.1 | $ 62.1 | $ 49.9 | $ 187.1 | $ 75.9 | $ 30.1 | $ 33.7 | $ 427.9 | $ 326.8 | $ 307.5 |
Basic EPS (in dollars per share) | $ 1.76 | $ 0.93 | $ 0.53 | $ 0.43 | $ 1.60 | $ 0.64 | $ 0.25 | $ 0.28 | $ 3.66 | $ 2.77 | $ 2.60 |
Diluted EPS (in dollars per share) | $ 1.72 | $ 0.90 | $ 0.52 | $ 0.42 | $ 1.57 | $ 0.63 | $ 0.25 | $ 0.28 | $ 3.56 | $ 2.70 | $ 2.53 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - $ / shares | Aug. 07, 2018 | Aug. 06, 2018 |
Quarterly Dividend Declared | ||
Subsequent Event [Line Items] | ||
Increase in dividends payable (per share) | $ 0.12 | |
Dividends payable (per share) | 0.485 | |
Annual Dividend Declared | ||
Subsequent Event [Line Items] | ||
Dividends payable (per share) | $ 1.94 | $ 1.46 |
Schedule II-Valuation and Qu106
Schedule II-Valuation and Qualifying Accounts [Schedule] (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 3,700 | $ 2,257 | $ 3,843 |
Additions charged to costs and expenses | 1,417 | 2,339 | 496 |
Deductions | (2,392) | (896) | (2,082) |
Balance at end of period | 2,724 | 3,700 | 2,257 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 9,300 | 9,844 | 9,200 |
Additions charged to costs and expenses | 0 | 0 | 644 |
Deductions | (5,539) | (544) | 0 |
Balance at end of period | $ 3,760 | $ 9,300 | $ 9,844 |