Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Aug. 02, 2024 | Dec. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2024 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Transition Report | false | ||
Entity File Number | 1-5397 | ||
Entity Registrant Name | AUTOMATIC DATA PROCESSING, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-1467904 | ||
Entity Address, Address Line One | One ADP Boulevard | ||
Entity Address, City or Town | Roseland, | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07068 | ||
City Area Code | 973 | ||
Local Phone Number | 974-5000 | ||
Title of 12(b) Security | Common Stock, $0.10 Par Value(voting) | ||
Trading Symbol | ADP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 95,597,065,890 | ||
Entity Common Stock, Shares Outstanding | 407,795,203 | ||
Documents Incorporated by Reference | Portions of the Registrant's Proxy Statement for its 2024 Annual Meeting of Stockholders. Part III | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000008670 | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2024 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Morristown, New Jersey |
Auditor Firm ID | 34 |
Statements of Consolidated Earn
Statements of Consolidated Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | ||
REVENUES: | ||||
Revenues | $ 19,202.6 | $ 18,012.2 | $ 16,498.3 | |
Costs of revenues: | ||||
Operating expenses | 9,050.1 | 8,657.4 | 8,252.6 | |
Research and development | 955.7 | 844.8 | 798.6 | |
Depreciation and amortization | 470.9 | 451.2 | 410.7 | |
TOTAL COSTS OF REVENUES | 10,476.7 | 9,953.4 | 9,461.9 | |
Selling, general, and administrative expenses | 3,778.9 | 3,551.4 | 3,233.2 | |
Interest expense | 361.4 | 253.3 | 81.9 | |
TOTAL EXPENSES | 14,617 | 13,758.1 | 12,777 | |
Other (income)/expense, net | (286.7) | (183.5) | (82.8) | |
EARNINGS BEFORE INCOME TAXES | 4,872.3 | 4,437.6 | 3,804.1 | |
Provision for income taxes | 1,120.3 | 1,025.6 | 855.2 | |
NET EARNINGS | $ 3,752 | $ 3,412 | $ 2,948.9 | |
BASIC EARNINGS PER SHARE (in dollars per share) | $ 9.14 | $ 8.25 | $ 7.04 | |
DILUTED EARNINGS PER SHARE (in dollars per share) | $ 9.10 | $ 8.21 | $ 7 | |
Basic weighted average shares outstanding (in shares) | 410.6 | 413.7 | 418.8 | |
Diluted weighted average shares outstanding (in shares) | 412.2 | 415.7 | 421.1 | |
Revenues, other than interest on funds held for clients and PEO revenues | ||||
REVENUES: | ||||
Revenues | $ 11,953.6 | $ 11,222 | $ 10,505 | |
Interest on funds held for clients | ||||
REVENUES: | ||||
Revenues | 1,024.7 | 813.4 | 451.8 | |
PEO Revenues | ||||
REVENUES: | ||||
Revenues | [1] | $ 6,224.3 | $ 5,976.8 | $ 5,541.5 |
[1]For the years ended June 30, 2024 (“fiscal 2024”), June 30, 2023 (“fiscal 2023”), and June 30, 2022 (“fiscal 2022”), Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes, of $69,874.1 million, $66,731.7 million, and $62,619.2 million, respectively. |
Statements Of Consolidated Ea_2
Statements Of Consolidated Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | |||
Direct pass-through costs, Professional Employer Organization revenues | $ 69,874.1 | $ 66,731.7 | $ 62,619.2 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 3,752 | $ 3,412 | $ 2,948.9 |
Other comprehensive (loss)/income: | |||
Currency translation adjustments | (38) | 13.4 | (127.4) |
Unrealized net gains/(losses) on available-for-sale securities | 685.2 | (500.3) | (2,228) |
Tax effect | (162.2) | 113.3 | 503.7 |
Reclassification of net losses on available-for-sale securities to net earnings | 5.9 | 14.7 | 4.4 |
Tax effect | (1.3) | (3.3) | (1) |
Amortization of unrealized losses on cash flow hedging activities | 4.4 | 4.4 | 4.4 |
Tax effect | (1.1) | (1.1) | (1.1) |
Pension net gains/(losses) arising during the year | 5.6 | 60.3 | (229.8) |
Tax effect | (1.1) | (13.3) | 57.3 |
Reclassification of pension liability adjustment to net earnings | 0.1 | (0.4) | 18.1 |
Tax effect | 0 | 0.2 | (4.9) |
Other comprehensive income/(loss), net of tax | 497.5 | (312.1) | (2,004.3) |
Comprehensive income | $ 4,249.5 | $ 3,099.9 | $ 944.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 2,913.4 | $ 2,083.5 | |
Accounts receivable, net of allowance for doubtful accounts of $52.2 and $53.0, respectively | 3,428.2 | 3,009.6 | |
Other current assets | 1,204.8 | 743.9 | |
Total current assets before funds held for clients | 7,546.4 | 5,837 | |
Funds held for clients | 37,996.1 | 36,333.6 | |
Total current assets | 45,542.5 | 42,170.6 | |
Long-term receivables, net of allowance for doubtful accounts of $0.1 and $0.1, respectively | 7.3 | 8.5 | |
Property, plant and equipment, net | 685.6 | 681.4 | |
Operating lease right-of-use asset | 370.6 | 402.4 | |
Deferred contract costs | 2,965 | 2,769.7 | |
Other assets | 1,102.1 | 1,255.4 | |
Goodwill | 2,353.6 | 2,339.4 | |
Intangible assets, net | 1,336 | 1,343.6 | |
Total assets | 54,362.7 | 50,971 | |
Current liabilities: | |||
Accounts payable | 100.6 | 96.8 | |
Accrued expenses and other current liabilities | 3,350.1 | 2,342.6 | |
Accrued payroll and payroll-related expenses | 958.7 | 941.4 | |
Dividends payable | 566.4 | 510 | |
Short-term deferred revenues | 199.8 | 188.6 | |
Obligations under reverse repurchase agreements | [1] | 385.4 | 105.4 |
Income taxes payable | 15.1 | 44.2 | |
Total current liabilities before client funds obligations | 5,576.1 | 4,229 | |
Client funds obligations | 39,503.9 | 38,538.6 | |
Total current liabilities | 45,080 | 42,767.6 | |
Long-term debt | 2,991.3 | 2,989 | |
Operating lease liabilities | 328.6 | 349.9 | |
Other liabilities | 990.8 | 933.7 | |
Deferred income taxes | 64.3 | 73.6 | |
Long-term deferred revenues | 360.1 | 348.1 | |
Total liabilities | 49,815.1 | 47,461.9 | |
Commitments and Contingencies (Note 12) | |||
Stockholders' equity: | |||
Preferred stock, $1.00 par value: Authorized, 0.3 shares; issued, none | 0 | 0 | |
Common stock, $0.10 par value: authorized,1,000.0 shares; issued, 638.7 shares at June 30, 2024 and June 30, 2023; outstanding, 408.1 and 412.1 shares at June 30, 2024 and June 30, 2023, respectively | 63.9 | 63.9 | |
Capital in excess of par value | 2,406.9 | 2,102.3 | |
Retained earnings | 23,622.2 | 22,118 | |
Treasury stock - at cost: 230.6 and 226.6 shares at June 30, 2024 and June 30, 2023, respectively | (19,737.1) | (18,469.3) | |
Accumulated other comprehensive (loss)/income | (1,808.3) | (2,305.8) | |
Total stockholders’ equity | 4,547.6 | 3,509.1 | |
Total liabilities and stockholders’ equity | $ 54,362.7 | $ 50,971 | |
[1]As of June 30, 2024, $384.0 million of short-term marketable securities and $1.4 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements. As of June 30, 2023, $104.6 million of long-term marketable securities and $0.8 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements (see Note 8). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, current | $ 52.2 | $ 53 |
Allowance for doubtful accounts, long-term | $ 0.1 | $ 0.1 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 300,000 | 300,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 638,700,000 | 638,700,000 |
Common stock, shares outstanding | 408,100,000 | 412,100,000 |
Treasury stock, shares | 230,600,000 | 226,600,000 |
Marketable securities under reverse repurchase agreements | $ 384 | $ 104.6 |
Cash and cash equivalents under reverse repurchase agreements | $ 1.4 | $ 0.8 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) /Income |
Common stock, shares issued, beginning of period at Jun. 30, 2021 | 638.7 | |||||
Stockholders' Equity, balance, beginning of period at Jun. 30, 2021 | $ 63.9 | $ 1,531.3 | $ 19,451.1 | $ (15,386.8) | $ 10.6 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | $ 2,948.9 | 2,948.9 | ||||
Other comprehensive income | (2,004.3) | |||||
Stock-based compensation expense | 180.4 | |||||
Issuances relating to stock compensation plans | 82.5 | 95 | ||||
Treasury stock acquired | (2,043.6) | |||||
Dividends | (1,703.7) | |||||
Common stock, shares issued, end of period at Jun. 30, 2022 | 638.7 | |||||
Stockholders' Equity, balance, end of period at Jun. 30, 2022 | $ 63.9 | 1,794.2 | 20,696.3 | (17,335.4) | (1,993.7) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | $ 3,412 | 3,412 | ||||
Other comprehensive income | (312.1) | |||||
Stock-based compensation expense | 196.3 | |||||
Issuances relating to stock compensation plans | 111.8 | 63.3 | ||||
Treasury stock acquired | (1,197.2) | |||||
Dividends | (1,990.3) | |||||
Common stock, shares issued, end of period at Jun. 30, 2023 | 638.7 | 638.7 | ||||
Stockholders' Equity, balance, end of period at Jun. 30, 2023 | $ 63.9 | 2,102.3 | 22,118 | (18,469.3) | (2,305.8) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | $ 3,752 | 3,752 | ||||
Other comprehensive income | 497.5 | |||||
Stock-based compensation expense | 219.3 | |||||
Issuances relating to stock compensation plans | 85.3 | 63.1 | ||||
Treasury stock acquired | (1,330.9) | |||||
Dividends | (2,247.8) | |||||
Common stock, shares issued, end of period at Jun. 30, 2024 | 638.7 | 638.7 | ||||
Stockholders' Equity, balance, end of period at Jun. 30, 2024 | $ 63.9 | $ 2,406.9 | $ 23,622.2 | $ (19,737.1) | $ (1,808.3) |
Statements of Stockholders' E_2
Statements of Stockholders' Equity (Parenthetical) - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Treasury stock, shares repurchased | 5.1 | 4.9 | 9.2 |
Dividends (in dollars per share) | $ 5.45 | $ 4.79 | $ 4.05 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Cash Flows from Operating Activities: | ||||
Net earnings | $ 3,752 | $ 3,412 | $ 2,948.9 | |
Adjustments to reconcile net earnings to cash flows provided by operating activities: | ||||
Depreciation and amortization | 561.9 | 549.3 | 515.1 | |
Amortization of deferred contract costs | 1,067.6 | 992.9 | 955.2 | |
Deferred income taxes | (37.4) | (80.1) | 36.6 | |
Stock-based compensation expense | 243.5 | 220.4 | 201.7 | |
Bad debt expense | 54.6 | 44 | 2.8 | |
Net pension income | (22.9) | (42.6) | (53.4) | |
Net accretion of discounts and amortization of premiums on available-for-sale securities | (42.6) | 23 | 101 | |
Other | (1.7) | 27.4 | 29.9 | |
Changes in operating assets and liabilities: | ||||
(Increase)/Decrease in accounts receivable | (483.7) | 129.2 | (486.5) | |
Increase in deferred contract costs | (1,271.2) | (1,189.2) | (1,101.1) | |
Increase in other assets | (157.2) | (168.2) | (157.3) | |
Increase/(Decrease) in accounts payable | 1.8 | (11.8) | (16.4) | |
Increase in accrued expenses and other liabilities | 492.9 | 301.3 | 123 | |
Net cash flows provided by operating activities | 4,157.6 | 4,207.6 | 3,099.5 | |
Cash Flows from Investing Activities: | ||||
Purchases of corporate and client funds marketable securities | (6,835.3) | (6,618.8) | (10,733.2) | |
Proceeds from the sales and maturities of corporate and client funds marketable securities | 6,039.5 | 4,705.5 | 4,249.7 | |
Capital expenditures | (208.4) | (206.3) | (174.4) | |
Additions to intangibles | (355) | (365.3) | (379) | |
Acquisitions of businesses, net of cash acquired | (33.6) | (32.4) | (11.7) | |
Proceeds from the sale of property, plant, and equipment and other assets | 28.3 | 0 | 34.2 | |
Other | (24.5) | 0 | 0 | |
Net cash flows used in investing activities | (1,389) | (2,517.3) | (7,014.4) | |
Cash Flows from Financing Activities: | ||||
Net increase/(decrease) in client funds obligations | 1,014.1 | (12,701.6) | 17,057.9 | |
Net cash received from the Internal Revenue Service | 602.7 | 0 | 0 | |
Payments of debt | (0.9) | (1) | (0.9) | |
Repurchases of common stock | (1,231.7) | (1,121.4) | (1,969.4) | |
Net proceeds from stock purchase plan and stock-based compensation plans | 47.2 | 91.6 | 96.5 | |
Dividends paid | (2,183.1) | (1,903.6) | (1,659) | |
Net proceeds/(payments) related to reverse repurchase agreements | 320 | (44.7) | 128.3 | |
Net cash flows provided by/(used in) financing activities | (1,431.7) | (15,680.7) | 13,653.4 | |
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (22.4) | (21.1) | (98.7) | |
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | 1,314.5 | (14,011.5) | 9,639.8 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year | 8,771.5 | 22,783 | 13,143.2 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | 10,086 | 8,771.5 | 22,783 | |
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets | ||||
Cash and cash equivalents | 2,913.4 | 2,083.5 | 1,436.3 | |
Restricted cash and restricted cash equivalents included in funds held for clients (A) | [1] | 7,172.6 | 6,688 | 21,346.7 |
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 10,086 | 8,771.5 | 22,783 | |
Supplemental disclosures of cash flow information: | ||||
Cash paid for interest | 353.9 | 246.5 | 74.8 | |
Cash paid for income taxes, net of income tax refunds | $ 1,185.2 | $ 1,080.7 | $ 856.8 | |
[1]See Note 4 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of Preparation. The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Intercompany balances and transactions have been eliminated in consolidation. The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees. The Company is the sole beneficial owner of the trust. The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”). The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and therefore, consolidates the trust. Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 4, “Corporate Investments and Funds Held for Clients.” The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenues, expenses, and other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's presentation. We also updated the description of "Systems development and programming costs" to "Research and development" within the Statement of Consolidated Earnings, this change did not result in changes to current or previously reported amounts. B. Description of Business. The Company is a provider of cloud-based Human Capital Management (“HCM”) solutions. The Company classifies its operations into the following two reportable segments: Employer Services and Professional Employer Organization (“PEO”) Services. The primary components of the “Other” segment are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, legal settlements, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and interest expense. C. Revenue Recognition. Revenues are primarily attributable to fees for providing services ( e.g., Employer Services' payroll processing fees), investment income on payroll funds, payroll tax filing funds, other Employer Services' client-related funds, and fees charged to implement clients on the Company's solutions. The Company enters into agreements for a fixed fee per transaction ( e.g., number of payees or number of payrolls processed). The Company enters into service agreements with clients that include anywhere from one service to a full suite of services. The Company’s agreements vary in duration having a legally enforceable term of 30 days to 5 years. The performance obligations in the agreements are generally combined into one performance obligation, as they are considered a series of distinct services, and are satisfied over time because the client simultaneously receives and consumes the benefits provided as the Company performs the services. The Company uses the output method based on a fixed fee per employee serviced to recognize revenue, as the value to the client of the goods or services transferred to date (e.g. number of payees or number of payrolls processed) appropriately depicts our performance towards complete satisfaction of the performance obligation. The fees are typically billed in the period in which services are performed. PEO, a component of the HR Outsourcing (“HRO”) business pillar, provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers’ compensation insurance, and administering state unemployment insurance, among other human resources functions. Amounts collected from PEO worksite employers include payroll, fees for benefits, and an administrative fee that also includes payroll taxes, fees for workers’ compensation and state unemployment taxes. The payroll and payroll taxes collected from the worksite employers are presented in revenue net, as the Company does not retain risk and acts as an agent with respect to this aspect of the PEO arrangement. With respect to the payroll and payroll taxes, the worksite employer is primarily responsible for providing the service and has discretion in establishing wages. The fees collected from the worksite employers for benefits (i.e., PEO zero-margin benefits pass-throughs), workers’ compensation and state unemployment taxes are presented in revenues and the associated costs of benefits, workers’ compensation and state unemployment taxes are included in operating expenses, as the Company does retain risk and acts as a principal with respect to this aspect of the arrangement. With respect to these fees, the Company is primarily responsible for fulfilling the service and has discretion in establishing price. We recognize client fund interest income on collected but not yet remitted funds held for clients in revenues as earned, as the collection, holding and remittance of these funds are critical components of providing these services. Set up fees received from certain clients to implement the Company's solutions are considered a material right. Therefore, the Company defers revenue associated with these set up fees and records them over the period in which such clients are expected to benefit from the material right, which is approximately five Collection of consideration the Company expects to receive to perform it services typically occurs within 30 to 60 days of billing. We assess the collectability of revenues based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history and their intention to pay the consideration. D. Deferred Costs. Incremental Costs of Obtaining a Contract Incremental costs of obtaining a contract (e.g., sales commissions) that are expected to be recovered are capitalized and amortized on a straight-line basis over a period of three Costs to fulfill a Contract The Company capitalizes costs incurred to fulfill its contracts that i) relate directly to the contract ii) are expected to generate resources that will be used to satisfy the Company's performance obligations under the contract and iii) are expected to be recovered through revenue generated under the contract. Costs incurred to implement clients on our solutions (e.g., direct labor) are capitalized and amortized on a straight-line basis over the expected client relationship period if the Company expects to recover those costs. The expected client relationship period ranges from three The Company has estimated the amortization periods for the deferred costs by using its historical client retention by business units to estimate the pattern during which the service transfers. E. Cash and Cash Equivalents. Highly liquid investment securities with a maturity of ninety days or less at the time of purchase are considered cash equivalents. The fair value of our cash and cash equivalents approximates carrying value. F. Corporate Investments and Funds Held for Clients. All of the Company's marketable securities are considered to be “available-for-sale” and, accordingly, are carried on the Consolidated Balance Sheets at fair value. Unrealized gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) on the Consolidated Balance Sheets until realized. Realized gains and losses from the sale of available-for-sale securities are determined on an aggregate approach basis and are included in other (income)/expense, net on the Statements of Consolidated Earnings. If the fair value of an available-for-sale debt security is below its amortized cost, the Company assesses whether it intends to sell the security or if it is more likely than not the Company will be required to sell the security before recovery. If either of those two conditions is met, the Company would recognize a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security or it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in accumulated other comprehensive income (loss). Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Dividend and interest income are recognized when earned. G. Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date and is based upon the Company’s principal, or most advantageous, market for a specific asset or liability. U.S. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1 Fair value is determined based upon quoted prices for identical assets or liabilities that are traded in active markets. Level 2 Fair value is determined based upon inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: · quoted prices for similar assets or liabilities in active markets; · quoted prices for identical or similar assets or liabilities in markets that are not active; · inputs other than quoted prices that are observable for the asset or liability; or · inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Fair value is determined based upon inputs that are unobservable and reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based upon the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company's corporate investments and funds held for clients (see Note 4) are measured at fair value on a recurring basis as described below. Over 99% of the Company's available-for-sale securities included in Level 2 are valued based on prices obtained from an independent pricing service. To determine the fair value of the Company's Level 2 investments, the independent pricing service uses pricing models for each asset class that are consistent with what other market participants would use, including the market approach. Inputs and assumptions to the pricing model used by the independent pricing service are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market-related data. Since many fixed income securities do not trade on a daily basis, the independent pricing service applies available information, as applicable, through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. For the purposes of valuing the Company’s asset-backed securities and mortgage-backed securities (that are included within Other securities in Note 4), the independent pricing service includes additional inputs to the model such as monthly payment information, new issue data, and collateral performance. For the purposes of valuing the Company’s Municipal bonds, the independent pricing service includes quoted prices for similar assets, benchmark yield curves, and market corroborated inputs. While the Company is not provided access to the proprietary models of the third party pricing service, each quarterly reporting period, the Company reviews the inputs utilized by the independent pricing service and compares the valuations received from the independent pricing service to valuations from at least one other observable source for reasonableness. The Company has not adjusted the prices obtained from the independent pricing service and the Company believes the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). The Company had no available-for-sale securities included in Level 1 and Level 3 at June 30, 2024. The Company issued three series of fixed-rate notes with staggered maturitie s of 7 and 10-years totaling $3.0 billion (collectively the “Notes”). The fair value of the Notes are estimated in Note 9 utilizing a variety of inputs obtained from an independent pricing service, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually. The Company reviews the values generated by the independent pricing service for reasonableness by comparing the valuations received from the independent pricing service to valuations from at least one other observable source. The Company has not adjusted the prices obtained from the independent pricing service. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy. In certain instances, the inputs used to measure fair value may meet the definition of more than one level of the fair value hierarchy. The significant input with the lowest level priority is used to determine the applicable level in the fair value hierarchy. H. Property, Plant and Equipment. Property, plant and equipment is stated at cost less accumulated depreciation on the Consolidated Balance Sheets. Depreciation is recognized over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. The estimated useful lives of assets are primarily as follows: Data processing equipment 5 to 10 years Buildings 20 to 40 years Furniture and fixtures 4 to 7 years I. Leases. Operating lease right-of-use ( “ ROU ” ) assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The lease liabilities are measured by discounting future lease payments at the Company’s collateralized incremental borrowing rate for financing instruments of a similar term, unless the implicit rate is readily determinable. ROU assets also include adjustments related to prepaid or deferred lease payments and lease incentives. Lease ROU assets are amortized over the life of the lease and assessed for impairment in the event there is a modification or an early termination . J. Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is tested annually for impairment or more frequently when an event or circumstance indicates that goodwill might be impaired. The Company's annual goodwill impairment assessment as of June 30, 2024 was performed for all reporting units using a quantitative approach by comparing the fair value of each reporting unit to its carrying value. We estimated the fair value of each reporting unit using, as appropriate, the income approach, which is derived using the present value of future cash flows discounted at a risk-adjusted weighted-average cost of capital, and the market approach, which is based upon using market multiples of companies in similar lines of business. Significant assumptions used in determining the fair value of our reporting units include projected revenue growth rates, profitability projections, working capital assumptions, the weighted average cost of capital, the determination of appropriate market comparison companies, and terminal growth rates. Several of these assumptions, including projected revenue growth rates and profitability projections are dependent on our ability to upgrade, enhance, and expand our technology and services to meet client needs and preferences. As such, the determination of fair value requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margins. Based upon the quantitative assessment, the Company has concluded that goodwill is not impaired. 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 may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. L. Foreign Currency. The net assets of the Company's foreign subsidiaries are translated into U.S. dollars based on exchange rates in effect for each period, and revenues and expenses are translated at average exchange rates in the periods. Gains or losses from balance sheet translation are included in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. Currency transaction gains or losses, which are included in the results of operations, are not significant for all periods presented. M. Foreign Currency Risk Management Programs and Derivative Financial Instruments. The Company transacts business in various foreign jurisdictions and is therefore exposed to market risk from changes in foreign currency exchange rates that could impact its consolidated results of operations, financial position, or cash flows. The Company manages its exposure to these market risks through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The Company does not use derivative financial instruments for trading purposes. N. Earnings per Share (“EPS”). The Company computes EPS in accordance with ASC 260. The calculations of basic and diluted EPS are as follows: Years ended June 30, Basic Effect of Employee Stock Option Shares Effect of Diluted 2024 Net earnings $ 3,752.0 $ 3,752.0 Weighted average shares (in millions) 410.6 0.7 0.9 412.2 EPS $ 9.14 $ 9.10 2023 Net earnings $ 3,412.0 $ 3,412.0 Weighted average shares (in millions) 413.7 0.9 1.1 415.7 EPS $ 8.25 $ 8.21 2022 Net earnings $ 2,948.9 $ 2,948.9 Weighted average shares (in millions) 418.8 1.1 1.2 421.1 EPS $ 7.04 $ 7.00 There were no stock options excluded from the calculation of diluted earnings per share due to anti-dilution. Options to purchase 0.2 million and 0.6 million shares of common stock for fiscal 2023 and 2022, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. O. Stock-Based Compensation. The Company recognizes stock-based compensation expense in net earnings based on the fair value of the award on the date of the grant, and in the case of international units settled in cash, adjusts this fair value based on changes in the Company's stock price during the vesting peri od. Time-based restricted stock units are valued based on the closing price of the Company's common stock on the date of the grant and, in the case of performance based restricted stock units, are valued based on the grant date fair value of such awards and are adjusted for changes to probabilities of achieving performance targets. S ee Note 10 for additional information on the Company's stock-based compensation programs. P. Internal Use Software. Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized generally over a three The Company begins to capitalize costs incurred for computer software developed for internal use when the preliminary development efforts are successfully completed, management has authorized and committed to funding the project, and it is probable that the project will be completed and the software will be used as intended. Capitalization ceases when a computer software project is substantially complete and ready for its intended use. The Company's policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. The Company also expenses internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities. Fees related to cloud-based subscriptions for which the Company has the right to take possession of the software at any time during the hosting period (without significant penalty) and can run the software on internal hardware, or through contract with a third party vendor to host the software, is recognized as an intangible asset and capitalized following the Internal Use Software guidance under ASC 350-40. Subscriptions where the Company accesses the software through the cloud but cannot take possession of the software during the hosting period is treated as a service contract, and as such hosting fees are treated as expense. Q. Acquisitions. Assets acquired and liabilities assumed in business combinations are recorded on the Company’s Consolidated Balance Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the Company are included in the Statements of Consolidated Earnings since their respective dates of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed is allocated to goodwill. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analysis. Accordingly, the measurement period for such purchase price allocations will end when the information, or the facts and circumstances, becomes available, but will not exceed twelve months. R. Income Taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. 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). A change in the assessment of the outcomes of such matters could materially impact our Consolidated Financial Statements. There is a financial statement recognition threshold and measurement attribute for tax positions taken or expected to be taken in a tax return. Specifically, the likelihood of an entity's tax benefits being sustained must be “more likely than not,” assuming that these positions will be examined by tax authorities with full knowledge of all relevant information prior to recording the related tax benefit in the financial statements. If a tax position drops below the “more likely than not” standard, the benefit can no longer be recognized. Assumptions, judgment, and the use of estimates are required in determining if the “more likely than not” standard has been met when developing the provision for income taxes. As of June 30, 2024 and 2023, the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $126.9 million and $116.9 million, respectively. S. Workers’ Compensation Costs. The Company employs a third-party actuary to assist in determining the estimated claim liability related to workers’ compensation and employer's liability coverage for PEO Services worksite employees. In estimating ultimate loss rates, we utilize historical loss experience, exposure data, and actuarial judgment, together with a range of inputs which are primarily based upon the worksite employee's job responsibilities, their location, the historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. For each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates. PEO Services has secured a workers’ compensation and employer’s liability insurance policy that caps the exposure for each claim at $1 million per occurrence and has also secured aggregate stop loss insurance that caps aggregate losses at a certain level in fiscal years 2012 and prior from an admitted and licensed insurance company of AIG. The Company has obtained approximately $351 million of irrevocable standby letters of credit in favor of licensed insurance companies of AIG to secure TotalSource workers’ compensation obligations if ADP were to fail to reimburse AIG for workers’ compensation payments. The Company had no drawdowns during June 30, 2024 and 2023 under the letters of credit. Additionally, starting in fiscal 2013, ADP Indemnity paid premiums to enter into reinsurance arrangements with ACE American Insurance Company, a wholly-owned subsidiary of Chubb Limited, to cover substantially all losses incurred by the Company up to the $1 million per occurrence related to workers’ compensation and employer's liability deductible reimbursement insurance protection for PEO services worksite employees. Each of these reinsurance arrangements limit our overall exposure incurred up to a certain limit. The Company believes the likelihood of ultimate losses exceeding this limit is remote . ADP Indemnity paid a premium of $269 million to enter into a reinsurance arrangement with Chubb Limited to cover substantially all losses incurred by ADP Indemnity for the fiscal 2024 policy year up to $1 million per occurrence. ADP Indemnity paid a premium of $276 million in July 2024 to enter into a reinsurance arrangement to cover substantially all losses for the fiscal 2025 policy year on terms substantially similar to the fiscal 2024 policy. T. Contingencies. In the normal course of business, the Company is subject to loss contingencies, such as claims and assessments arising from litigation and other legal proceedings, contractual indemnities, and tax matters. Accruals for loss contingencies are recorded when the Company determines that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the estimate of the amount of the loss is a range and some amount within the range appears to be a better estimate than any other amount within the range, that amount is accrued as a liability. If no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued as a liability. These accruals are adjusted periodically as assessments change or additional information becomes available. The loss contingencies are included in selling, general and administrative expenses. If no accrual is made for a loss contingency because the amount of loss cannot be reasonably estimated, the Company will disclose material contingent liabilities when there is at least a reasonable possibility that a loss or an additional loss may have been incurred. Legal fees and other costs related to litigation and other legal proceedings or services are expensed as incurred and are included in selling, general and administrative expenses. Any claim for insurance recovery is recognized only when realization becomes probable. U. Recently Issued Accounting Pronouncements. Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures This update enhances the transparency and decision usefulness of income tax disclosures to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. June 30, 2026 The Company is assessing this guidance. The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows. ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This update improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and certain quantitative disclosures. June 30, 2025 The Company is assessing this guidance. The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows. |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three business pillars as follows: Human Capital Management (“HCM”), HR Outsourcing (“HRO”), and Global (“Global”) Solutions, with separate disaggregation for PEO zero-margin benefits pass-through revenues and client fund interest revenues. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. HCM provides a suite of product offerings that assist employers of all types and sizes in all stages of the employment cycle, from recruitment to retirement. Global is generally consistent with the types of services provided within HCM but represent geographies outside of the United States and includes our multinational offerings. HCM and Global revenues are primarily attributable to fees for providing solutions for payroll, benefits, talent, retirement services and HR processing and fees charged to implement the Company's solutions for clients. HRO provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers’ compensation insurance, and administering state unemployment insurance, among other human resources functions. This revenue is primarily driven by PEO. The Company has further disaggregated HRO to separate out its PEO zero-margin benefits pass-through revenues. The Company recognizes client fund interest revenues on collected but not yet remitted funds held for clients in revenues as earned, as the collection, holding and remittance of these funds are critical components of providing these services. The following tables provide details of revenue by our business pillars and includes a reconciliation to the Company’s reportable segments. Years Ended June 30, Types of Revenues 2024 2023 2022 HCM $ 8,155.7 $ 7,716.1 $ 7,174.9 HRO, excluding PEO zero-margin benefits pass-throughs 3,544.2 3,386.0 3,116.3 PEO zero-margin benefits pass-throughs 3,975.9 3,800.9 3,514.4 Global 2,502.1 2,295.8 2,240.9 Interest on funds held for clients 1,024.7 813.4 451.8 Total Revenues $ 19,202.6 $ 18,012.2 $ 16,498.3 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2024: Types of Revenues Employer Services PEO Other Total HCM $ 8,164.2 $ — $ (8.5) $ 8,155.7 HRO, excluding PEO zero-margin benefits pass-throughs 1,299.1 2,248.4 (3.3) 3,544.2 PEO zero-margin benefits pass-throughs — 3,975.9 — 3,975.9 Global 2,502.1 — — 2,502.1 Interest on funds held for clients 1,015.4 9.3 — 1,024.7 Total Segment Revenues $ 12,980.8 $ 6,233.6 $ (11.8) $ 19,202.6 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2023: Types of Revenues Employer Services PEO Other Total HCM $ 7,724.7 $ — $ (8.6) $ 7,716.1 HRO, excluding PEO zero-margin benefits pass-throughs 1,216.1 2,175.9 (6.0) 3,386.0 PEO zero-margin benefits pass-throughs — 3,800.9 — 3,800.9 Global 2,295.8 — — 2,295.8 Interest on funds held for clients 806.0 7.4 — 813.4 Total Segment Revenues $ 12,042.6 $ 5,984.2 $ (14.6) $ 18,012.2 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2022: Types of Revenues Employer Services PEO Other Total HCM $ 7,183.1 $ — $ (8.2) $ 7,174.9 HRO, excluding PEO zero-margin benefits pass-throughs 1,096.1 2,027.1 (6.9) 3,116.3 PEO zero-margin benefits pass-throughs — 3,514.4 — 3,514.4 Global 2,240.9 — — 2,240.9 Interest on funds held for clients 447.6 4.2 — 451.8 Total Segment Revenues $ 10,967.7 $ 5,545.7 $ (15.1) $ 16,498.3 Contract Balances The timing of revenue recognition for our HCM, HRO and Global Solutions is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing. Changes in deferred revenue related to set up fees for the fiscal year ended June 30, 2024 were as follows: Contract Liability Contract liability, July 1, 2023 $ 464.8 Recognition of revenue included in beginning of year contract liability (132.7) Contract liability, net of revenue recognized on contracts during the year 148.1 Currency translation adjustments 11.4 Contract liability, June 30, 2024 $ 491.6 Deferred costs The balance is as follows: June 30, 2024 2023 Deferred costs to obtain a contract $ 1,353.0 $ 1,251.6 Deferred costs to fulfill a contract 1,612.0 1,518.1 Total deferred contract costs (1) $ 2,965.0 $ 2,769.7 (1) The amount of total deferred costs amortized during the fiscal years ended June 30, 2024, June 30, 2023, and June 30, 2022 were $1,067.6 million, $992.9 million, and $955.2 million, respectively. |
Other (Income)_Expense, Net
Other (Income)/Expense, Net | 12 Months Ended |
Jun. 30, 2024 | |
Other Income, Net [Abstract] | |
Other (Income)/Expense, Net | OTHER (INCOME)/EXPENSE, NET Other (income)/expense, net consists of the following: Years ended June 30, 2024 2023 2022 Interest income on corporate funds $ (241.3) $ (149.5) $ (41.0) Realized losses on available-for-sale securities, net 5.9 14.7 4.4 Impairment of assets — 2.1 23.0 Gain on sale of assets (17.1) — (7.5) Non-service components of pension income, net (34.2) (50.8) (61.7) Other (income)/expense, net $ (286.7) $ (183.5) $ (82.8) In fiscal 2024, interest income on corporate funds increased as compared to fiscal 2023, due to higher average interest rates of 3.3% for the year ended June 30, 2024, as compared to 2.4% for the year ended June 30, 2023, coupled with higher average investment balances for the year ended June 30, 2024 as compared to the year ended June 30, 2023. In fiscal 2024, the Company recognized a gain of $17.1 million, in relation to the sale of buildings and land. In fiscal 2022, the Company recorded impairment charges See Note 10 of our Consolidated Financial Statements for further details on non-service components of pension income, net. |
Corporate Investments And Funds
Corporate Investments And Funds Held For Clients | 12 Months Ended |
Jun. 30, 2024 | |
Corporate Investments And Funds Held For Clients [Abstract] | |
Corporate Investments And Funds Held For Clients | CORPORATE INVESTMENTS AND FUNDS HELD FOR CLIENTS Corporate investments and funds held for clients at June 30, 2024 and 2023 were as follows: June 30, 2024 Amortized Gross Gross Fair Value (A) Type of issue: Money market securities, cash and other cash equivalents $ 10,086.0 $ — $ — $ 10,086.0 Available-for-sale securities: Corporate bonds 16,833.3 11.5 (944.8) 15,900.0 U.S. Treasury securities 7,701.2 9.0 (164.5) 7,545.7 Canadian government obligations and Canadian government agency obligations 2,130.7 1.7 (86.6) 2,045.8 U.S. government agency securities 1,645.0 0.5 (140.6) 1,504.9 Asset-backed securities 1,394.9 3.9 (43.0) 1,355.8 Canadian provincial bonds 1,116.3 2.3 (56.2) 1,062.4 Commercial mortgage-backed securities 535.9 — (35.1) 500.8 Other securities 1,366.0 2.0 (75.9) 1,292.1 Total available-for-sale securities 32,723.3 30.9 (1,546.7) 31,207.5 Total corporate investments and funds held for clients $ 42,809.3 $ 30.9 $ (1,546.7) $ 41,293.5 (A) Included within available-for-sale securities are corporate investments with fair values of $384.0 million and funds held for clients with fair values of $30,823.5 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy. June 30, 2023 Amortized Gross Gross Fair Value (B) Type of issue: Money market securities, cash and other cash equivalents $ 8,771.5 $ — $ — $ 8,771.5 Available-for-sale securities: Corporate bonds 15,870.7 4.7 (1,308.3) 14,567.1 U.S. Treasury securities 8,054.7 0.7 (290.4) 7,765.0 Canadian government obligations and 2,070.4 — (145.0) 1,925.4 U.S. government agency securities 1,670.0 0.2 (179.8) 1,490.4 Asset-backed securities 1,234.7 — (69.7) 1,165.0 Canadian provincial bonds 1,000.5 0.2 (78.1) 922.6 Commercial mortgage-backed securities 679.2 — (46.7) 632.5 Other securities 1,391.6 1.7 (96.4) 1,296.9 Total available-for-sale securities 31,971.8 7.5 (2,214.4) 29,764.9 Total corporate investments and funds held for clients $ 40,743.3 $ 7.5 $ (2,214.4) $ 38,536.4 (B) Included within available-for-sale securities are corporate investments with fair values of $119.3 million and funds held for clients with fair values of $29,645.6 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies.” The Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company had no available-for-sale securities included in Level 1 or Level 3 at June 30, 2024. The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2024, are as follows: June 30, 2024 Securities in unrealized loss position less than Securities in unrealized loss position greater than 12 months Total Gross Unrealized Fair Market Gross Unrealized Fair Market Gross Fair Corporate bonds $ (25.8) $ 2,173.6 $ (919.0) $ 12,413.4 $ (944.8) $ 14,587.0 U.S. Treasury securities (23.1) 2,186.2 (141.4) 4,076.9 (164.5) 6,263.1 Canadian government obligations and Canadian government agency obligations (0.9) 304.6 (85.7) 1,591.6 (86.6) 1,896.2 U.S. government agency securities (0.7) 51.5 (139.9) 1,428.2 (140.6) 1,479.7 Asset-backed securities (2.3) 351.4 (40.7) 668.0 (43.0) 1,019.4 Canadian provincial bonds (1.3) 193.0 (54.9) 717.4 (56.2) 910.4 Commercial mortgage-backed securities (0.5) 11.2 (34.6) 489.6 (35.1) 500.8 Other securities (12.2) 288.5 (63.7) 864.8 (75.9) 1,153.3 $ (66.8) $ 5,560.0 $ (1,479.9) $ 22,249.9 $ (1,546.7) $ 27,809.9 The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2023 are as follows: June 30, 2023 Securities in unrealized loss position less than Securities in unrealized loss position greater than 12 months Total Gross Unrealized Fair Market Gross Unrealized Fair Market Gross Fair Corporate bonds $ (62.0) $ 2,255.9 $ (1,246.3) $ 12,050.5 $ (1,308.3) $ 14,306.4 U.S. Treasury securities (85.5) 4,629.4 (204.9) 2,876.3 (290.4) 7,505.7 Canadian government obligations and Canadian government agency obligations (5.8) 333.9 (139.2) 1,588.0 (145.0) 1,921.9 U.S. government agency securities (0.6) 28.2 (179.2) 1,432.2 (179.8) 1,460.4 Asset-backed securities (2.0) 159.7 (67.7) 975.6 (69.7) 1,135.3 Canadian provincial bonds (2.7) 127.0 (75.4) 757.3 (78.1) 884.3 Commercial mortgage-backed securities (6.7) 126.9 (40.0) 505.6 (46.7) 632.5 Other securities (14.5) 574.0 (81.9) 629.0 (96.4) 1,203.0 $ (179.8) $ 8,235.0 $ (2,034.6) $ 20,814.5 $ (2,214.4) $ 29,049.5 At June 30, 2024, Corporate bonds include investment-grade debt securities, with a wide variety of issuers, industries, and sectors, primarily carry credit ratings of A and above, and have maturities ranging from July 2024 through June 2034. At June 30, 2024, asset-backed securities include AAA-rated senior tranches of securities with predominately prime collateral of fixed-rate auto loan, credit card, and equipment lease receivables with fair values of $686.8 million, $413.3 million, and $168.9 million, respectively. These securities are collateralized by the cash flows of the underlying pools of receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through June 30, 2024. At June 30, 2024, U.S. government agency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $951.8 million and $473.6 million, respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's and AA+ by Standard & Poor's, with maturities ranging from July 2024 through March 2034. At June 30, 2024, U.S. government agency commercial mortgage-backed securities of $500.8 million include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association. At June 30, 2024, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above, with fair values of $529.3 million, AA-rated United Kingdom Gilt securities of $400.3 million and AAA-rated supranational bonds of $209.8 million. Classification of corporate investments on the Consolidated Balance Sheets is as follows: June 30, 2024 2023 Corporate investments: Cash and cash equivalents $ 2,913.4 $ 2,083.5 Short-term marketable securities (a) 384.0 14.7 Long-term marketable securities (b) — 104.6 Total corporate investments $ 3,297.4 $ 2,202.8 (a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets. (b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets. Funds held for clients have been invested in the following categories: June 30, 2024 2023 Funds held for clients: Restricted cash and cash equivalents held to satisfy client funds obligations $ 7,172.6 $ 6,688.0 Restricted short-term marketable securities held to satisfy client funds obligations 5,538.1 5,601.9 Restricted long-term marketable securities held to satisfy client funds obligations 25,285.4 24,043.7 Total funds held for clients $ 37,996.1 $ 36,333.6 Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax and other payee payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling $39,503.9 million and $38,538.6 million as of June 30, 2024 and 2023, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client funds obligations. Of the Company’s funds held for clients at June 30, 2024, $34,940.0 million are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and eliminate in consolidation. The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows. The Company has reported the cash and cash equivalents related to client funds investments with original maturities of ninety days or less, within the beginning and ending balances of cash, cash equivalents, restricted cash, and restricted cash equivalents. The Company has reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows. All available-for-sale securities were rated as investment grade at June 30, 2024. Expected maturities of available-for-sale securities at June 30, 2024 are as follows: One year or less $ 5,922.2 One year to two years 7,465.5 Two years to three years 5,190.2 Three years to four years 3,857.9 After four years 8,771.7 Total available-for-sale securities $ 31,207.5 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at cost and accumulated depreciation at June 30, 2024 and 2023 are as follows: June 30, 2024 2023 Property, plant and equipment: Land and buildings $ 648.1 $ 682.2 Data processing equipment 1,185.2 1,087.5 Furniture, leaseholds and other 670.0 669.3 2,503.3 2,439.0 Less: accumulated depreciation (1,817.7) (1,757.6) Property, plant and equipment, net $ 685.6 $ 681.4 Depreciation of property, plant and equipment was $190.3 million, $176.5 million, and $171.0 million for fiscal 2024, 2023 and 2022, respectively. The Company has certain assets classified as held for sale given intent to sell. The fair value of these assets was approximately $5.0 million and $17.3 million as of June 30, 2024 and 2023, respectively, and is not material for reclassification separately on the Consolidated Balance Sheets. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | LEASES The Company records leases on the Consolidated Balance Sheets as operating lease ROU assets, records the current portion of operating lease liabilities within accrued expenses and other current liabilities The Company has entered into operating lease agreements for facilities and equipment. The Company's leases have remaining lease terms of up to approximately eleven years. The components of operating lease expense were as follows: Year ended June 30, 2024 2023 2022 Operating lease cost $ 125.0 $ 135.2 $ 144.7 Short-term lease cost 1.4 2.0 1.1 Variable lease cost 18.3 16.1 11.5 Total operating lease cost $ 144.7 $ 153.3 $ 157.3 The following table provides supplemental cash flow information related to the Company's leases: Year ended June 30, 2024 2023 2022 Cash paid for operating lease liabilities $ 125.5 $ 129.2 $ 127.6 Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 97.4 $ 90.5 $ 127.4 Other information related to our operating lease liabilities is as follows: June 30, June 30, 2024 2023 Weighted-average remaining lease term (in years) 5 6 Weighted-average discount rate 3.3 % 2.7 % Current operating lease liability $ 92.2 $ 95.5 As of June 30, 2024, maturities of operating lease liabilities are as follows: Twelve months ending June 30, 2025 $ 105.9 Twelve months ending June 30, 2026 94.8 Twelve months ending June 30, 2027 82.6 Twelve months ending June 30, 2028 62.9 Twelve months ending June 30, 2029 40.2 Thereafter 74.0 Total undiscounted lease obligations 460.4 Less: Imputed interest (39.6) Net lease obligations $ 420.8 |
Goodwill And Intangible Assets,
Goodwill And Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2024 | |
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, 2024 and 2023 are as follows: Employer PEO Total Balance at June 30, 2022 $ 2,295.7 $ 4.8 $ 2,300.5 Additions and other adjustments 26.2 — 26.2 Currency translation adjustments 12.7 — 12.7 Balance at June 30, 2023 $ 2,334.6 $ 4.8 $ 2,339.4 Additions and other adjustments 24.4 — 24.4 Currency translation adjustments (10.2) — (10.2) Balance at June 30, 2024 $ 2,348.8 $ 4.8 $ 2,353.6 Components of intangible assets, net, are as follows: June 30, 2024 2023 Intangible assets: Software and software licenses $ 3,803.7 $ 3,548.9 Customer contracts and lists 1,181.6 1,140.6 Other intangibles 242.0 241.9 5,227.3 4,931.4 Less accumulated amortization: Software and software licenses (2,642.6) (2,442.6) Customer contracts and lists (1,007.6) (907.5) Other intangibles (241.1) (237.7) (3,891.3) (3,587.8) Intangible assets, net $ 1,336.0 $ 1,343.6 Other intangibles consist primarily of purchased rights, purchased content, trademarks and trade names (acquired directly or through acquisitions). All intangible assets have finite lives and, as such, are subject to amortization. The weighted average remaining useful life of the intangible assets is 5 years (6 years for software and software licenses, 3 years for customer contracts and lists, and 1 year for other intangibles). Amortization of intangible assets was $371.6 million, $372.8 million, and $344.1 million for fiscal 2024, 2023, and 2022, respectively. Estimated future amortization expenses of the Company's existing intangible assets are as follows: Amount Twelve months ending June 30, 2025 $ 419.2 Twelve months ending June 30, 2026 $ 228.7 Twelve months ending June 30, 2027 $ 183.8 Twelve months ending June 30, 2028 $ 144.2 Twelve months ending June 30, 2029 $ 116.1 |
Short-Term Financing
Short-Term Financing | 12 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Short-Term Financing | SHORT TERM FINANCING The Company has a $4.55 billion, 364-day credit agreement that matures in June 2025 with a one-year term-out option. The Company also has a $2.25 billion five-year credit facility that matures in June 2028 that contains an accordion feature under which the aggregate commitment can be increased by $500 million, su bject to the availability of additional commitments. In addition, t he Company also has a five-year $3.5 billion credit facility maturing in June 2029 that contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. The interest rate applicable to committed borrowings is tied to SOFR, the effective federal funds rate, or the prime rate depending on the notification provided by the Company to the syndicated financial institutions prior to borrowing. The Company is also required to pay facility fees on the credit agreements. The primary uses of the credit fac ilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary. The Company had no b orrowings through June 30, 2024 and 2023 under the credit agreements. The Company's U.S. short-term funding requirements related to client funds are sometimes obtained on an unsecured basis through the issuance of commercial paper, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. In June 2024, the company increased its U.S. short-term commercial paper program to provide for the issuance of up to $10.3 billion from $9.7 billion in aggregate maturity value. The Company’s commercial paper program is rated A-1+ by Standard & Poor’s, Prime-1 (“P-1”) by Moody’s and F1+ by Fitch. These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from overnight to up to 364 days. At June 30, 2024 and 2023 the Company had no co mmercial paper borrowing outstanding. Details of the borrowings under the commercial paper program are as follows: Years ended June 30, 2024 2023 Average daily borrowings (in billions) $ 3.5 $ 3.4 Weighted average interest rates 5.3 % 3.7 % Weighted average maturity (approximately in days) 2 days 2 days The Company’s U.S., Canadian and United Kingdom short-term funding requirements related to client funds obligations are sometimes obtained on a secured basis through the use of reverse repurchase agreements, which are collateralized principally by government and government agency securities, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. These agreements generally have terms ranging from overnight to up to five and 2023, the Company had $385.4 million and $105.4 million, respectively, of outstanding obligations related to the reverse repurchase agreements. The Company has $7.3 billion available on a committed basis under the U.S. reverse repurchase agreements. Details of the reverse repurchase agreements are as follows: Years ended June 30, 2024 2023 Average outstanding balances $ 1,828.6 $ 1,279.9 Weighted average interest rates 5.5 % 4.3 % |
Debt
Debt | 12 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company issued three series of fixed-rate notes with staggered maturities of 7 and 10-years totaling $3.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually. The principal amounts and associated effective interest rates of the Notes and other debt as of June 30, 2024 and 2023 are as follows: Debt instrument Effective Interest Rate June 30, 2024 June 30, 2023 Fixed-rate 3.375% notes due September 15, 2025 3.47% 1,000.0 1,000.0 Fixed-rate 1.700% notes due May 15, 2028 1.85% 1,000.0 1,000.0 Fixed-rate 1.250% notes due September 1, 2030 1.83% 1,000.0 1,000.0 Other 4.1 4.9 3,004.1 3,004.9 Less: current portion (a) (1.1) (1.2) Less: unamortized discount and debt issuance costs (11.7) (14.7) Total long-term debt $ 2,991.3 $ 2,989.0 (a) - Current portion of long-term debt as of June 30, 2024 is included within accrued expenses and other current liabilities on the Consolidated Balance Sheets. The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs. As of June 30, 2024, the fair value of the Notes, based on Level 2 inputs, was $2,681.6 million. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies.” |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS A. Stock-based Compensation Plans. Stock-based compensation consists of the following: The Company's share-based compensation consists of stock options, time-based restricted stock, time-based restricted stock units, performance-based restricted stock, and performance-based restricted stock units. The Company also offers an employee stock purchase plan for eligible employees . Beginning in September 2022, the Company discontinued granting stock options, time-based restricted stock and performance-based restricted stock. Any such future awards will be grants of time-based restricted stock units and/or performance-based restricted stock units, depending on employee eligibility. Time-based restricted stock unit awards and performance-based restricted stock unit awards granted to employees with a home country of the United States are settled in stock, and for awards granted to employees with a home country outside the United States are generally settled in cash. • Restricted Stock. • Time-Based Restricted Stock Units. Time-based restricted stock units generally vest ratably over 3 years. Awards are generally forfeited if the employee ceases to be employed by the Company prior to vesting. Time-based restricted stock unit awards granted to employees with a home country of the United States are settled in stock and cannot be transferred during the vesting period. Time-based restricted stock unit awards granted to employees with a home country outside the United States are generally settled in cash and cannot be transferred during the vesting period. Compensation expense relating to the issuance of share-settled units is measured based on the fair value of the award on the grant date and recognized on a straight-line basis over the vesting period. Compensation expense relating to the issuance of cash-settled units is recorded over the vesting period and is initially based on the fair value of the award on the grant date and is subsequently remeasured at each reporting date during the vesting period based on the change in the ADP stock price. Dividend cash equivalents are paid on share-settled units, and dividend cash equivalents are not paid on cash-settled units. • Performance-Based Restricted Stock Units. Performance-based restricted stock units generally vest over a one Performance-based restricted stock units cannot be transferred and are settled in either cash or stock, depending on the employee's home country. Compensation expense relating to the issuance of performance-based restricted stock units settled in cash is recognized over the vesting period initially based on the fair value of the award on the grant date with subsequent adjustments to the number of units awarded during the performance period based on probable and actual performance against targets. In addition, compensation expense is remeasured at each reporting period during the vesting period based on the change in the ADP stock price. Compensation expense relating to the issuance of performance-based restricted stock units settled in stock is recorded over the vesting period based on the fair value of the award on the grant date with subsequent adjustments to the number of units awarded based on the probable and actual performance against targets. Dividend equivalents are paid on awards under the performance-based restricted stock unit program. • Employee Stock Purchase Plan. The Company offers an employee stock purchase plan that allows eligible employees to purchase shares of common stock at a price equal to 95% of the market value for the Company's common stock on the last day of the offering period. This plan has been deemed non-compensatory and, therefore, no compensation expense has been recorded. The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. The Company repurchased 5.1 million shares in fiscal 2024 as compared to 4.9 million shares repurchased in fiscal 2023. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions. Cash payments related to the settlement of vested time-based restricted stock units and performance-based restricted stock units were approximately $24.1 million, $23.5 million, and $22.1 million during fiscal years 2024, 2023, and 2022, respectively. The following table represents stock-based compensation expense and related income tax benefits in each of fiscal 2024, 2023, and 2022, respectively: Years ended June 30, 2024 2023 2022 Operating expenses $ 30.0 $ 24.6 $ 19.7 Selling, general and administrative expenses 179.5 165.0 155.7 Research and development 34.0 30.8 26.3 Total pretax stock-based compensation expense $ 243.5 $ 220.4 $ 201.7 Income tax benefit $ 60.2 $ 54.5 $ 49.1 As of June 30, 2024, the total remaining unrecognized compensation cost related to unvested stock options, restricted stock units, and restricted stock awards amounted to $2.9 million, $186.9 million, and $11.3 million, respectively, which will be amortized over the weighted-average remaining requisite service periods of 1.0 year, 1.8 years, and 0.7 years, respectively. In fiscal 2024, the following activity occurred under the Company’s existing plans. Stock Options: Number Weighted Options outstanding at July 1, 2023 2,654 $ 155 Options granted — $ — Options exercised (597) $ 141 Options forfeited/cancelled (15) $ 179 Options outstanding at June 30, 2024 2,042 $ 159 Options exercisable at June 30, 2024 1,513 $ 152 Shares available for future grants, end of year 20,061 Shares reserved for issuance under stock option plans, end of year 22,103 Time-Based Restricted Stock and Time-Based Restricted Stock Units: Number of Shares Number of Units Restricted shares/units outstanding at July 1, 2023 450 730 Restricted shares/units granted — 638 Restricted shares/units vested (314) (273) Restricted shares/units forfeited (12) (42) Restricted shares/units outstanding at June 30, 2024 124 1,053 Performance-Based Restricted Stock and Performance-Based Restricted Stock Units: Number of Shares Number of Units Restricted shares/units outstanding at July 1, 2023 197 821 Restricted shares/units granted — 322 Restricted shares/units vested (103) (369) Restricted shares/units forfeited (6) (21) Restricted shares/units outstanding at June 30, 2024 88 753 The aggregate intrinsic value of outstanding stock options and exercisable stock options as of June 30, 2024 was $162.5 million and $130.9 million, respectively, which have a remaining life of 5 years and 4 years, respectively. The aggregate intrinsic value for stock options exercised in fiscal 2024, 2023, and 2022 was $63.2 million, $80.6 million, and $80.8 million, respectively. The fair value for stock options granted was estimated at the date of grant using the following assumptions: 2024 2023 2022 Risk-free interest rate N/A N/A — % Dividend yield N/A N/A 1.8 % Weighted average volatility factor N/A N/A 22.7 % Weighted average expected life (in years) N/A N/A 4.9 Weighted average fair value (in dollars) N/A N/A $ 33.03 The weighted average fair values of shares/units granted were as follows: Year ended June 30, 2024 2023 2022 (in dollars) Performance-based restricted shares/units $ 262.56 $ 245.96 $ 206.86 Time-based restricted shares/units $ 255.29 $ 214.75 $ 208.08 B. Pension Plans The Company has a defined benefit cash balance pension plan. The U.S. pension plan, which is currently closed to new entrants, was frozen effective July 1, 2020. As of July 1, 2020 and onward, participants will retain their accrued benefits and will not accrue any future benefits due to pay and/or service. The plan interest credit rate varies from year-to-year based on the ten-year U.S. Treasury rate. The Company's policy is to make contributions within the range determined by generally accepted actuarial principles. The Company also has various retirement plans for its non-U.S. employees and maintains a Supplemental Officers Retirement Plan (“SORP”). The SORP is a defined benefit plan pursuant to which the Company pays supplemental pension benefits to certain corporate officers upon retirement based upon the officers' years of service and compensation. The SORP, which is currently closed to new entrants, was frozen effective July 1, 2019, with no future accruals due to pay and/or service. A June 30 measurement date was used in determining the Company's benefit obligations and fair value of plan assets. The Company is required to (a) recognize in its Consolidated Balance Sheets an asset for a plan's net overfunded status or a liability for a plan's net underfunded status, (b) measure a plan's assets and its obligations that determine its funded status as of the end of the employer's fiscal year, and (c) recognize changes in the funded status of a defined benefit plan in the year in which the changes occur in accumulated other comprehensive income (loss). The Company's pension plans' funded status as of June 30, 2024 and 2023 is as follows: June 30, 2024 2023 Change in plan assets: Fair value of plan assets at beginning of year $ 1,854.4 $ 1,800.5 Actual return on plan assets 106.8 126.6 Employer contributions 13.4 17.0 Currency translation adjustments 0.6 (3.0) Benefits paid (95.6) (86.7) Fair value of plan assets at end of year $ 1,879.6 $ 1,854.4 Change in benefit obligation: Benefit obligation at beginning of year $ 1,725.8 $ 1,779.0 Service cost 5.2 4.8 Interest cost 84.6 78.2 Actuarial gain (a) (14.6) (48.2) Currency translation adjustments 0.8 (2.0) Acquisitions — 0.7 Benefits paid (95.6) (86.7) Projected benefit obligation at end of year $ 1,706.2 $ 1,725.8 Funded status - plan assets less benefit obligations $ 173.4 $ 128.6 (a) The actuarial gain for fiscal 2024 was primarily due to demographic changes. The amounts recognized on the Consolidated Balance Sheets as of June 30, 2024 and 2023 consisted of: June 30, 2024 2023 Noncurrent assets $ 286.3 $ 247.7 Current liabilities (11.1) (5.6) Noncurrent liabilities (101.8) (113.5) Net amount recognized $ 173.4 $ 128.6 The accumulated benefit obligation for all defined benefit pension plans was $1,688.5 million and $1,712.1 million at June 30, 2024 and 2023, respectively. The Company's pension plans with projected benefit obligations in excess of plan assets as of June 30, 2024 and 2023 had the following projected benefit obligation and fair value of plan assets: June 30, 2024 2023 Projected benefit obligation $ 143.7 $ 146.1 Fair value of plan assets $ 30.8 $ 27.0 The Company's pension plans with accumulated benefit obligations in excess of plan assets as of June 30, 2024 and 2023 had the following accumulated benefit obligation and fair value of plan assets: June 30, 2024 2023 Accumulated benefit obligation $ 108.6 $ 117.0 Fair value of plan assets $ 7.6 $ 8.3 The components of net pension (income)/ expense were as follows: 2024 2023 2022 Service cost – benefits earned during the year $ 5.2 $ 4.8 $ 5.7 Interest cost on projected benefits 84.6 78.2 52.3 Expected return on plan assets (115.9) (127.5) (127.9) Net amortization and deferral 2.9 1.9 7.5 Special termination benefits, plan curtailments, and settlement charges 0.3 — 9.0 Net pension (income)/expense $ (22.9) $ (42.6) $ (53.4) The net actuarial loss and prior service cost for the defined benefit pension plans that are included in accumulated other comprehensive income (loss) that have not yet been recognized as components of net periodic benefit cost are $286.1 million and $3.9 million, respectively, at June 30, 2024. There is no remaining transition obligation for the defined benefit pension plans included in accumulated other comprehensive income (loss). Assumptions used to determine the actuarial present value of benefit obligations were: Years ended June 30, 2024 2023 Discount rate 5.40 % 5.10 % Interest crediting rate 3.70 % 3.50 % Increase in compensation levels N/A N/A Assumptions used to determine the net pension expense generally were: Years ended June 30, 2024 2023 2022 Discount rate 5.10 % 4.60 % 2.55 % Interest crediting rate 3.50 % 3.25 % 3.25 % Expected long-term rate of return on assets 6.00 % 6.75 % 6.75 % Increase in compensation levels N/A N/A N/A The discount rate is based upon published rates for high-quality fixed-income investments that produce cash flows that approximate the timing and amount of expected future benefit payments. The interest crediting rate is based on the current and expected future ten-year U.S. Treasury rates and a minimum of 3.25%. The expected long-term rate of return on assets is determined based on historical and expected future rates of return on plan assets considering the target asset mix and the long-term investment strategy. Plan Assets The Company's pension plans' asset allocations at June 30, 2024 and 2023 by asset category were as follows: 2024 2023 Cash and cash equivalents — % — % Fixed income securities 63 % 39 % U.S. equity securities 12 % 19 % International equity securities 10 % 15 % Global equity securities 15 % 27 % 100 % 100 % The Company's pension plans' asset investment strategy is designed to ensure prudent management of assets, consistent with long-term return objectives and the prompt fulfillment of all pension plan obligations. The investment strategy and asset mix were developed in coordination with an asset liability study conducted by external consultants to maximize the funded ratio with the least amount of volatility. The pension plans' assets are currently invested in various asset classes with differing expected rates of return, correlations, and volatilities, including large capitalization and small capitalization U.S. equities, international equities, U.S. fixed income securities, and cash. The target asset allocation ranges for the U.S. plan are generally as follows: U.S. fixed income securities 60% - 70% U.S. equity securities 7% - 17% International equity securities 5% - 15% Global equity securities 8% - 18% As of June 30, 2024 and 2023, the U.S. pension plan asset allocation is within the target ranges. The pension plans' fixed income portfolio is designed to match the duration and liquidity characteristics of the pension plans' liabilities. In addition, the pension plans invest only in investment-grade debt securities to ensure preservation of capital. The pension plans' equity portfolios are subject to diversification guidelines to reduce the impact of losses in single investments. Investment managers are prohibited from buying or selling commodities and from the short selling of securities. None of the pension plans' assets are directly invested in the Company's stock, although the pension plans may hold a minimal amount of Company stock to the extent of the Company's participation in equity indices. The pension plans' investments included in Level 1 are valued using closing prices for identical instruments that are traded on active exchanges. The pension plans' investments included in Level 2 are valued utilizing inputs obtained from an independent pricing service, which are reviewed by the Company for reasonableness. To determine the fair value of our Level 2 plan assets, a variety of inputs are utilized, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, new issue data, and monthly payment information. The pension plans have no Level 1 and Level 3 investments at June 30, 2024. The following table presents the investments of the pension plans measured at fair value at June 30, 2024: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 679.5 $ — $ 679.5 Government securities — 490.4 — 490.4 Corporate and municipal bonds — 695.4 — 695.4 Mortgage-backed security bonds — 3.9 — 3.9 Total pension asset investments $ — $ 1,869.2 $ — $ 1,869.2 In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $10.4 million as of June 30, 2024, which have been classified as Level 1 in the fair value hierarchy. The following table presents the investments of the pension plans measured at fair value at June 30, 2023: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 829.5 $ — $ 829.5 U.S. government securities — 351.7 — 351.7 Mutual funds 18.2 279.0 — 297.2 Corporate and municipal bonds — 355.1 — 355.1 Mortgage-backed security bonds — 18.7 — 18.7 Total pension asset investments $ 18.2 $ 1,834.0 $ — $ 1,852.2 In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $2.2 million as of June 30, 2023, which have been classified as Level 1 in the fair value hierarchy. Contributions During fiscal 2024, the Company contributed $13.4 million to the pension plans. The Company expects to contribute $13.8 million to the pension plans during fiscal 2025. Estimated Future Benefit Payments The benefits expected to be paid in each year from fiscal 2025 to the year ended June 30, 2029 are $136.0 million, $150.0 million, $153.7 million, $126.0 million, and $128.5 million, respectively. The aggregate benefits expected to be paid in the five fiscal years from the year ended June 30, 2030 to the year ended June 30, 2034 are $669.5 million. The expected benefits to be paid are based on the same assumptions used to measure the Company's pension plans' benefit obligations at June 30, 2024 and includes estimated future employee service. C. Retirement and Savings Plan. The Company has a 401(k) retirement and savings plan, which allows eligible employees to contribute up to 50% of their compensation annually and allows highly compensated employees to contribute up to 12% of their compensation annually. The Company matches a portion of employee contributions, which amounted to approximately $184.1 million, $163.6 million, and $153.1 million for the calendar years ended December 31, 2023, 2022, and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2024 | |
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, 2024 2023 2022 Earnings before income taxes: United States $ 4,408.0 $ 4,091.4 $ 3,461.8 Foreign 464.3 346.2 342.3 $ 4,872.3 $ 4,437.6 $ 3,804.1 The provision (benefit) for income taxes consists of the following components: Years ended June 30, 2024 2023 2022 Current: Federal $ 847.4 $ 840.0 $ 620.7 Foreign 132.8 104.6 97.5 State 177.5 161.1 100.4 Total current 1,157.7 1,105.7 818.6 Deferred: Federal (18.7) (77.4) 20.7 Foreign (6.6) 4.3 (12.9) State (12.1) (7.0) 28.8 Total deferred (37.4) (80.1) 36.6 Total provision for income taxes $ 1,120.3 $ 1,025.6 $ 855.2 A reconciliation between the Company's effective tax rate and the U.S. federal statutory rate is as follows: Years ended June 30, 2024 % 2023 % 2022 % Provision for taxes at U.S. statutory rate $ 1,023.2 21.0 $ 931.9 21.0 $ 798.9 21.0 Increase/(decrease) in provision from: State taxes, net of federal tax benefit 120.6 2.5 111.2 2.5 91.8 2.4 Foreign rate differential 41.0 0.9 33.1 0.7 41.3 1.1 Excess tax benefit - Stock-based compensation (17.1) (0.4) (19.0) (0.4) (19.9) (0.5) Other (47.4) (1.0) (31.6) (0.7) (56.9) (1.5) $ 1,120.3 23.0 $ 1,025.6 23.1 $ 855.2 22.5 The effective tax rate in fiscal 2024 and 2023 was 23.0% and 23.1%, respectively. The decrease in the effective tax rate is primarily due to a valuation allowance release and an intercompany transfer of certain assets offset by a lower benefit for adjustments to prior year tax liabilities in fiscal 2024. The effective tax rate for fiscal 2023 and 2022 was 23.1% and 22.5%, respectively. The increase in the effective tax rate is primarily due to an intercompany transfer of certain assets that resulted in a lower effective tax rate in fiscal 2022 and higher reserves for uncertain tax positions in fiscal 2023. The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows: Years ended June 30, 2024 2023 Deferred tax assets: Accrued expenses not currently deductible $ 237.4 $ 209.5 Stock-based compensation expense 51.3 48.8 Foreign tax credits 12.0 13.3 Fixed and intangible assets 194.9 108.2 Net operating losses 41.7 37.5 Prepaid royalty — 18.0 Unrealized investment losses, net 351.4 519.5 Other 39.1 39.9 927.8 994.7 Less: valuation allowances (11.1) (18.6) Deferred tax assets, net $ 916.7 $ 976.1 Deferred tax liabilities: Deferred contract costs $ 620.7 $ 578.1 Prepaid expenses 88.8 78.9 Prepaid retirement benefits 40.3 30.8 Tax on unrepatriated earnings 10.2 10.1 Other 20.8 20.7 Deferred tax liabilities 780.8 718.6 Net deferred tax assets $ 135.9 $ 257.5 There are $200.2 million and $331.1 million of long-term deferred tax assets included in other assets on the Consolidated Balance Sheets at June 30, 2024 and 2023, respectively. Income taxes have not been provided on undistributed earnings of certain foreign subsidiaries in an aggregate amount of approximately $53.0 million a s the Company considers such earnings to be permanently reinvested outside of the United States. As of June 30, 2024, it is not practicable to estimate the unrecognized tax liability that would occur upon distribution. The Company has estimated foreign net operating loss carry-forwards of approximately $74.0 million as of June 30, 2024, of which $0.9 million expire through June 2034 and $73.1 million have an indefinite utilization period. As of June 30, 2024, the Company has approximately $26.5 million of federal net operating loss carry-forwards from acquired companies. The net operating losses have an annual utilization limitation pursuant to section 382 of the Internal Revenue Code and expire through June 2036. The Company has state net operating loss carry-forwards of approximately $196.8 million as of June 30, 2024, which expire through June 2043. The Company has recorded valuation allowances of $11.1 million and $18.6 million at June 30, 2024 and 2023, respectively, to reflect the estimated amount of domestic and foreign deferred tax assets that may not be realized. Income tax payments were appr oximately $1,185.2 million, $1,080.7 million, and $856.8 million for fiscal 2024, 2023, and 2022, respectively. As of June 30, 2024, 2023, and 2022 the Company's liabilities for unrecognized tax benefits, which include interest and penalties, we re $126.9 million, $116.9 million, and $98.1 million respectively. The amount that, if recognized, would impact the effective tax rate is $91.8 million, $83.6 million, and $68.1 million, respectively. The remainder, if recognized, would principally impact deferred taxes. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2024 2023 2022 Unrecognized tax benefits at beginning of the year $ 116.9 $ 98.1 $ 99.9 Additions for tax positions 17.2 11.3 8.0 Additions for tax positions of prior periods 17.8 16.8 11.6 Reductions for tax positions of prior periods (12.8) (5.0) (8.5) Settlement with tax authorities (9.0) (1.8) (2.0) Expiration of the statute of limitations (2.9) (1.0) (9.2) Impact of foreign exchange rate fluctuations (0.3) (1.5) (1.7) Unrecognized tax benefit at end of year $ 126.9 $ 116.9 $ 98.1 Interest expense and penalties associated with uncertain tax positions have been recorded in the provision for income taxes on the Statements of Consolidated Earnings. During the fiscal years 2024, 2023, and 2022, the Company recorded interest expense of $5.7 million, $9.1 million, and $3.5 million, respectively. Penalties recorded during fiscal years 2024 and 2023 were not significant. During fiscal year 2022, the Company recorded penalties of $0.3 million. At June 30, 2024 and June 30, 2023, the Company had accrued interest of $32.6 million and $30.0 million, respectively, recorded on the Consolidated Balance Sheets within other liabilities. At June 30, 2024, the Company had no accrued penalties. At June 30, 2023, the Company's accrued penalties recorded on the Consolidated Balance Sheets within other liabilities were not material. At June 30, 2022, the Company's accrued penalties of $0.3 million, were recorded on the Consolidated Balance Sheets within income taxes payable. The Company is routinely examined by the IRS and tax authorities in foreign countries in which it conducts business, as well as tax authorities in states in which it has significant business operations. The tax years currently under examination vary by jurisdiction. Examinations in progress in which the Company has significant business operations are as follows: Taxing Jurisdiction Fiscal Years under Examination U.S. (IRS) 2023 - 2024 Arizona 2016 - 2020 Massachusetts 2016 - 2020 New York City 2016 - 2021 New York State 2019 - 2021 India 2014 - 2018, 2020 - 2022 The Company regularly considers the likelihood of assessments resulting from examinations in each of the jurisdictions. The resolution of tax matters is not expected to have a material effect on the consolidated financial condition of the Company, although a resolution could have a material impact on the Company's Statements of Consolidated Earnings for a particular future period and on the Company's effective tax rate. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES As of June 30, 2024, the Company has purchase commitments of approximately $1,191.6 million, including a reinsurance premium with Chubb for the fiscal 2025 policy year, as well as obligations related to software license agreements, and purchase and maintenance agreements on our software, equipment, and other assets, of which $322.1 million relates to fiscal 2025, $426.7 million relates to the fiscal years ending June 30, 2026 through fiscal 2027, $117.7 million relates to fiscal years ending June 30, 2028 through fiscal 2029, and the remaining relates to fiscal years thereafter. In May 2020, a putative class action complaint was filed against ADP, TotalSource and related defendants in the U.S. District Court, District of New Jersey. The complaint asserts violations of the Employee Retirement Income Security Act of 1974 (“ERISA”) in connection with the ADP TotalSource Retirement Savings Plan’s fiduciary administrative and investment decision-making. The complaint seeks statutory and other unspecified monetary damages, injunctive relief and attorney’s fees. The Company is unable to estimate any reasonably possible loss, or range of loss, with respect to this matter. The Company is vigorously defending against this lawsuit. The Company is subject to various claims, litigation, and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. Management currently believes that the resolution of these claims, litigation and regulatory compliance matters against us, individually or in the aggregate, will not have a material adverse impact on our consolidated results of operations, financial condition or cash flows. These matters are subject to inherent uncertainties and management's view of these matters may change in the future. It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material losses related to such representations and warranties. |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income ("AOCI") | 12 Months Ended |
Jun. 30, 2024 | |
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income ("AOCI") | RECLASSIFICATION OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") Comprehensive income is a measure of income that includes both net earnings and other comprehensive income (loss). Other comprehensive (loss)/income results from items deferred on the Consolidated Balance Sheets in stockholders' equity. Other comprehensive (loss)/income was $497.5 million, ($312.1) million, and ($2,004.3) million in fiscal 2024, 2023, and 2022, respectively. Changes in Accumulated Other Comprehensive Income (“AOCI”) by component are as follows: Currency Translation Adjustment Net Gains/(Losses) on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss) /Income Balance at June 30, 2021 $ (226.8) $ 390.9 $ (29.9) $ (123.6) $ 10.6 Other comprehensive income/(loss) before reclassification adjustments (127.4) (2,228.0) — (229.8) (2,585.2) Tax effect — 503.7 — 57.3 561.0 Reclassification adjustments to net earnings — 4.4 (A) 4.4 (C) 18.1 (B) 26.9 Tax effect — (1.0) (1.1) (4.9) (7.0) Balance at June 30, 2022 $ (354.2) $ (1,330.0) $ (26.6) $ (282.9) $ (1,993.7) Other comprehensive income/(loss) before reclassification adjustments 13.4 (500.3) — 60.3 (426.6) Tax effect — 113.3 — (13.3) 100.0 Reclassification adjustments to net earnings — 14.7 (A) 4.4 (C) (0.4) (B) 18.7 Tax effect — (3.3) (1.1) 0.2 (4.2) Balance at June 30, 2023 $ (340.8) $ (1,705.6) $ (23.3) $ (236.1) $ (2,305.8) Other comprehensive income/(loss) before reclassification adjustments (38.0) 685.2 — 5.6 652.8 Tax effect — (162.2) — (1.1) (163.3) Reclassification adjustments to net earnings — 5.9 (A) 4.4 (C) 0.1 (B) 10.4 Tax effect — (1.3) (1.1) — (2.4) Balance at June 30, 2024 $ (378.8) $ (1,178.0) $ (20.0) $ (231.5) $ (1,808.3) (A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension (income)/expense (see Note 10). (C) Reclassification adjustments out of AOCI are included in Interest expense on the Statements of Consolidated Earnings (see Note 9). |
Financial Data By Segment And G
Financial Data By Segment And Geographic Area | 12 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Financial Data By Segment And Geographic Area | FINANCIAL DATA BY SEGMENT AND GEOGRAPHIC AREA Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. The primary components of the “Other” segment are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, legal settlements, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and interest income and expense. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility. The Company's Chief Operating Decision Maker does not review assets at the reportable segment level, hence segment disclosure relating to total assets has not been provided . Employer Services PEO Services Other Total Year ended June 30, 2024 Revenues $ 12,980.8 $ 6,233.6 $ (11.8) $ 19,202.6 Earnings before income taxes 4,555.5 921.5 (604.7) 4,872.3 Capital expenditures 157.3 — 54.4 211.7 Depreciation and amortization 486.6 6.8 68.5 561.9 Year ended June 30, 2023 Revenues $ 12,042.6 $ 5,984.2 $ (14.6) $ 18,012.2 Earnings before income taxes 3,974.2 977.3 (513.9) 4,437.6 Capital expenditures 161.4 — 44.6 206.0 Depreciation and amortization 467.6 7.5 74.2 549.3 Year ended June 30, 2022 Revenues $ 10,967.7 $ 5,545.7 $ (15.1) $ 16,498.3 Earnings before income taxes 3,406.3 871.2 (473.4) 3,804.1 Capital expenditures 125.4 — 51.7 177.1 Depreciation and amortization 428.5 8.3 78.3 515.1 United States Europe Canada Other Total Year ended June 30, 2024 Revenues $ 16,934.2 $ 1,451.4 $ 473.7 $ 343.3 $ 19,202.6 Assets $ 47,989.9 $ 2,800.8 $ 2,796.6 $ 775.4 $ 54,362.7 Year ended June 30, 2023 Revenues $ 15,950.9 $ 1,309.2 $ 427.5 $ 324.6 $ 18,012.2 Assets $ 44,565.9 $ 2,602.2 $ 3,022.0 $ 780.9 $ 50,971.0 Year ended June 30, 2022 Revenues $ 14,503.3 $ 1,304.2 $ 389.3 $ 301.5 $ 16,498.3 Assets $ 56,856.2 $ 2,452.9 $ 2,987.9 $ 771.2 $ 63,068.2 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2024 | |
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 Additions (1) (2) Balance at beginning of year Charged to costs and expenses Charged to other accounts (A) Deductions Balance at end of year Year ended June 30, 2024: Allowance for doubtful accounts: Current $ 53,080 $ 34,642 $ 39 $ (35,538) (B) $ 52,223 Long-term $ 113 $ — $ — $ — (B) $ 113 Deferred tax valuation allowance $ 18,600 $ 228 $ 1,216 $ (8,925) $ 11,119 Year ended June 30, 2023: Allowance for doubtful accounts: Current $ 56,768 $ 23,412 $ (34) $ (27,066) (B) $ 53,080 Long-term $ 83 $ — $ 30 $ — (B) $ 113 Deferred tax valuation allowance $ 18,867 $ 28 $ 366 $ (661) $ 18,600 Year ended June 30, 2022: Allowance for doubtful accounts: Current $ 79,568 $ (1,893) $ 1,413 $ (22,320) (B) $ 56,768 Long-term $ 249 $ — $ (166) $ — (B) $ 83 Deferred tax valuation allowance $ 13,377 $ 8,563 $ (250) $ (2,823) $ 18,867 (A) Includes amounts related to foreign exchange fluctuation. (B) Doubtful accounts written off, less recoveries on accounts previously written off. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | |||
Net earnings | $ 3,752 | $ 3,412 | $ 2,948.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Jun. 30, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation. The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Intercompany balances and transactions have been eliminated in consolidation. The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees. The Company is the sole beneficial owner of the trust. The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”). The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and therefore, consolidates the trust. Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 4, “Corporate Investments and Funds Held for Clients.” The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenues, expenses, and other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's presentation. We also updated the description of "Systems development and programming costs" to "Research and development" within the Statement of Consolidated Earnings, this change did not result in changes to current or previously reported amounts. |
Description of Business | Description of Business. The Company is a provider of cloud-based Human Capital Management (“HCM”) solutions. The Company classifies its operations into the following two reportable segments: Employer Services and Professional Employer Organization (“PEO”) Services. The primary components of the “Other” segment are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, legal settlements, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and interest expense. |
Revenue Recognition | Revenue Recognition. Revenues are primarily attributable to fees for providing services ( e.g., Employer Services' payroll processing fees), investment income on payroll funds, payroll tax filing funds, other Employer Services' client-related funds, and fees charged to implement clients on the Company's solutions. The Company enters into agreements for a fixed fee per transaction ( e.g., number of payees or number of payrolls processed). The Company enters into service agreements with clients that include anywhere from one service to a full suite of services. The Company’s agreements vary in duration having a legally enforceable term of 30 days to 5 years. The performance obligations in the agreements are generally combined into one performance obligation, as they are considered a series of distinct services, and are satisfied over time because the client simultaneously receives and consumes the benefits provided as the Company performs the services. The Company uses the output method based on a fixed fee per employee serviced to recognize revenue, as the value to the client of the goods or services transferred to date (e.g. number of payees or number of payrolls processed) appropriately depicts our performance towards complete satisfaction of the performance obligation. The fees are typically billed in the period in which services are performed. PEO, a component of the HR Outsourcing (“HRO”) business pillar, provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers’ compensation insurance, and administering state unemployment insurance, among other human resources functions. Amounts collected from PEO worksite employers include payroll, fees for benefits, and an administrative fee that also includes payroll taxes, fees for workers’ compensation and state unemployment taxes. The payroll and payroll taxes collected from the worksite employers are presented in revenue net, as the Company does not retain risk and acts as an agent with respect to this aspect of the PEO arrangement. With respect to the payroll and payroll taxes, the worksite employer is primarily responsible for providing the service and has discretion in establishing wages. The fees collected from the worksite employers for benefits (i.e., PEO zero-margin benefits pass-throughs), workers’ compensation and state unemployment taxes are presented in revenues and the associated costs of benefits, workers’ compensation and state unemployment taxes are included in operating expenses, as the Company does retain risk and acts as a principal with respect to this aspect of the arrangement. With respect to these fees, the Company is primarily responsible for fulfilling the service and has discretion in establishing price. We recognize client fund interest income on collected but not yet remitted funds held for clients in revenues as earned, as the collection, holding and remittance of these funds are critical components of providing these services. Set up fees received from certain clients to implement the Company's solutions are considered a material right. Therefore, the Company defers revenue associated with these set up fees and records them over the period in which such clients are expected to benefit from the material right, which is approximately five Collection of consideration the Company expects to receive to perform it services typically occurs within 30 to 60 days of billing. We assess the collectability of revenues based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history and their intention to pay the consideration. D. Deferred Costs. Incremental Costs of Obtaining a Contract Incremental costs of obtaining a contract (e.g., sales commissions) that are expected to be recovered are capitalized and amortized on a straight-line basis over a period of three Costs to fulfill a Contract The Company capitalizes costs incurred to fulfill its contracts that i) relate directly to the contract ii) are expected to generate resources that will be used to satisfy the Company's performance obligations under the contract and iii) are expected to be recovered through revenue generated under the contract. Costs incurred to implement clients on our solutions (e.g., direct labor) are capitalized and amortized on a straight-line basis over the expected client relationship period if the Company expects to recover those costs. The expected client relationship period ranges from three The Company has estimated the amortization periods for the deferred costs by using its historical client retention by business units to estimate the pattern during which the service transfers. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Highly liquid investment securities with a maturity of ninety days or less at the time of purchase are considered cash equivalents. The fair value of our cash and cash equivalents approximates carrying value. |
Corporate Investments and Funds Held for Clients | Corporate Investments and Funds Held for Clients. All of the Company's marketable securities are considered to be “available-for-sale” and, accordingly, are carried on the Consolidated Balance Sheets at fair value. Unrealized gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) on the Consolidated Balance Sheets until realized. Realized gains and losses from the sale of available-for-sale securities are determined on an aggregate approach basis and are included in other (income)/expense, net on the Statements of Consolidated Earnings. If the fair value of an available-for-sale debt security is below its amortized cost, the Company assesses whether it intends to sell the security or if it is more likely than not the Company will be required to sell the security before recovery. If either of those two conditions is met, the Company would recognize a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security or it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in accumulated other comprehensive income (loss). |
Fair Value Measurements | Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date and is based upon the Company’s principal, or most advantageous, market for a specific asset or liability. U.S. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1 Fair value is determined based upon quoted prices for identical assets or liabilities that are traded in active markets. Level 2 Fair value is determined based upon inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: · quoted prices for similar assets or liabilities in active markets; · quoted prices for identical or similar assets or liabilities in markets that are not active; · inputs other than quoted prices that are observable for the asset or liability; or · inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Fair value is determined based upon inputs that are unobservable and reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based upon the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company's corporate investments and funds held for clients (see Note 4) are measured at fair value on a recurring basis as described below. Over 99% of the Company's available-for-sale securities included in Level 2 are valued based on prices obtained from an independent pricing service. To determine the fair value of the Company's Level 2 investments, the independent pricing service uses pricing models for each asset class that are consistent with what other market participants would use, including the market approach. Inputs and assumptions to the pricing model used by the independent pricing service are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market-related data. Since many fixed income securities do not trade on a daily basis, the independent pricing service applies available information, as applicable, through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. For the purposes of valuing the Company’s asset-backed securities and mortgage-backed securities (that are included within Other securities in Note 4), the independent pricing service includes additional inputs to the model such as monthly payment information, new issue data, and collateral performance. For the purposes of valuing the Company’s Municipal bonds, the independent pricing service includes quoted prices for similar assets, benchmark yield curves, and market corroborated inputs. While the Company is not provided access to the proprietary models of the third party pricing service, each quarterly reporting period, the Company reviews the inputs utilized by the independent pricing service and compares the valuations received from the independent pricing service to valuations from at least one other observable source for reasonableness. The Company has not adjusted the prices obtained from the independent pricing service and the Company believes the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). The Company had no available-for-sale securities included in Level 1 and Level 3 at June 30, 2024. The Company issued three series of fixed-rate notes with staggered maturitie s of 7 and 10-years totaling $3.0 billion (collectively the “Notes”). The fair value of the Notes are estimated in Note 9 utilizing a variety of inputs obtained from an independent pricing service, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually. The Company reviews the values generated by the independent pricing service for reasonableness by comparing the valuations received from the independent pricing service to valuations from at least one other observable source. The Company has not adjusted the prices obtained from the independent pricing service. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy. In certain instances, the inputs used to measure fair value may meet the definition of more than one level of the fair value hierarchy. The significant input with the lowest level priority is used to determine the applicable level in the fair value hierarchy. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment is stated at cost less accumulated depreciation on the Consolidated Balance Sheets. Depreciation is recognized over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. The estimated useful lives of assets are primarily as follows: Data processing equipment 5 to 10 years Buildings 20 to 40 years Furniture and fixtures 4 to 7 years |
Leases | Leases. Operating lease right-of-use ( “ ROU ” ) assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The lease liabilities are measured by discounting future lease payments at the Company’s collateralized incremental borrowing rate for financing instruments of a similar term, unless the implicit rate is readily determinable. ROU assets also include adjustments related to prepaid or deferred lease payments and lease incentives. Lease ROU assets are amortized over the life of the lease and assessed for impairment in the event there is a modification or an early termination . |
Goodwill | Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is tested annually for impairment or more frequently when an event or circumstance indicates that goodwill might be impaired. The Company's annual goodwill impairment assessment as of June 30, 2024 was performed for all reporting units using a quantitative approach by comparing the fair value of each reporting unit to its carrying value. We estimated the fair value of each reporting unit using, as appropriate, the income approach, which is derived using the present value of future cash flows discounted at a risk-adjusted weighted-average cost of capital, and the market approach, which is based upon using market multiples of companies in similar lines of business. Significant assumptions used in determining the fair value of our reporting units include projected revenue growth rates, profitability projections, working capital assumptions, the weighted average cost of capital, the determination of appropriate market comparison companies, and terminal growth rates. Several of these assumptions, including projected revenue growth rates and profitability projections are dependent on our ability to upgrade, enhance, and expand our technology and services to meet client needs and preferences. As such, the determination of fair value requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margins. Based upon the quantitative assessment, the Company has concluded that goodwill is not impaired. |
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 may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Foreign Currency | Foreign Currency. The net assets of the Company's foreign subsidiaries are translated into U.S. dollars based on exchange rates in effect for each period, and revenues and expenses are translated at average exchange rates in the periods. Gains or losses from balance sheet translation are included in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. Currency transaction gains or losses, which are included in the results of operations, are not significant for all periods presented. |
Foreign Currency Risk Management Programs and Derivative Financial Instruments | Foreign Currency Risk Management Programs and Derivative Financial Instruments. The Company transacts business in various foreign jurisdictions and is therefore exposed to market risk from changes in foreign currency exchange rates that could impact its consolidated results of operations, financial position, or cash flows. The Company manages its exposure to these market risks through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The Company does not use derivative financial instruments for trading purposes. |
Earnings Per Share ("EPS") | Earnings per Share (“EPS”). The Company computes EPS in accordance with ASC 260. The calculations of basic and diluted EPS are as follows: Years ended June 30, Basic Effect of Employee Stock Option Shares Effect of Diluted 2024 Net earnings $ 3,752.0 $ 3,752.0 Weighted average shares (in millions) 410.6 0.7 0.9 412.2 EPS $ 9.14 $ 9.10 2023 Net earnings $ 3,412.0 $ 3,412.0 Weighted average shares (in millions) 413.7 0.9 1.1 415.7 EPS $ 8.25 $ 8.21 2022 Net earnings $ 2,948.9 $ 2,948.9 Weighted average shares (in millions) 418.8 1.1 1.2 421.1 EPS $ 7.04 $ 7.00 |
Stock-Based Compensation | Stock-Based Compensation. The Company recognizes stock-based compensation expense in net earnings based on the fair value of the award on the date of the grant, and in the case of international units settled in cash, adjusts this fair value based on changes in the Company's stock price during the vesting peri od. Time-based restricted stock units are valued based on the closing price of the Company's common stock on the date of the grant and, in the case of performance based restricted stock units, are valued based on the grant date fair value of such awards and are adjusted for changes to probabilities of achieving performance targets. S ee Note 10 for additional information on the Company's stock-based compensation programs. |
Internal Use Software | Internal Use Software. Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized generally over a three The Company begins to capitalize costs incurred for computer software developed for internal use when the preliminary development efforts are successfully completed, management has authorized and committed to funding the project, and it is probable that the project will be completed and the software will be used as intended. Capitalization ceases when a computer software project is substantially complete and ready for its intended use. The Company's policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. The Company also expenses internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities. Fees related to cloud-based subscriptions for which the Company has the right to take possession of the software at any time during the hosting period (without significant penalty) and can run the software on internal hardware, or through contract with a third party vendor to host the software, is recognized as an intangible asset and capitalized following the Internal Use Software guidance under ASC 350-40. Subscriptions where the Company accesses the software through the cloud but cannot take possession of the software during the hosting period is treated as a service contract, and as such hosting fees are treated as expense. |
Acquisitions | Acquisitions. Assets acquired and liabilities assumed in business combinations are recorded on the Company’s Consolidated Balance Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the Company are included in the Statements of Consolidated Earnings since their respective dates of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed is allocated to goodwill. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analysis. Accordingly, the measurement period for such purchase price allocations will end when the information, or the facts and circumstances, becomes available, but will not exceed twelve months. |
Income Taxes | Income Taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. 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). A change in the assessment of the outcomes of such matters could materially impact our Consolidated Financial Statements. There is a financial statement recognition threshold and measurement attribute for tax positions taken or expected to be taken in a tax return. Specifically, the likelihood of an entity's tax benefits being sustained must be “more likely than not,” assuming that these positions will be examined by tax authorities with full knowledge of all relevant information prior to recording the related tax benefit in the financial statements. If a tax position drops below the “more likely than not” standard, the benefit can no longer be recognized. Assumptions, judgment, and the use of estimates are required in determining if the “more likely than not” standard has been met when developing the provision for income taxes. As of June 30, 2024 and 2023, the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $126.9 million and $116.9 million, respectively. |
Workers' Compensation Costs | Workers’ Compensation Costs. The Company employs a third-party actuary to assist in determining the estimated claim liability related to workers’ compensation and employer's liability coverage for PEO Services worksite employees. In estimating ultimate loss rates, we utilize historical loss experience, exposure data, and actuarial judgment, together with a range of inputs which are primarily based upon the worksite employee's job responsibilities, their location, the historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. For each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates. PEO Services has secured a workers’ compensation and employer’s liability insurance policy that caps the exposure for each claim at $1 million per occurrence and has also secured aggregate stop loss insurance that caps aggregate losses at a certain level in fiscal years 2012 and prior from an admitted and licensed insurance company of AIG. The Company has obtained approximately $351 million of irrevocable standby letters of credit in favor of licensed insurance companies of AIG to secure TotalSource workers’ compensation obligations if ADP were to fail to reimburse AIG for workers’ compensation payments. The Company had no drawdowns during June 30, 2024 and 2023 under the letters of credit. Additionally, starting in fiscal 2013, ADP Indemnity paid premiums to enter into reinsurance arrangements with ACE American Insurance Company, a wholly-owned subsidiary of Chubb Limited, to cover substantially all losses incurred by the Company up to the $1 million per occurrence related to workers’ compensation and employer's liability deductible reimbursement insurance protection for PEO services worksite employees. Each of these reinsurance arrangements limit our overall exposure incurred up to a certain limit. The Company believes the likelihood of ultimate losses exceeding this limit is remote . ADP Indemnity paid a premium of $269 million to enter into a reinsurance arrangement with Chubb Limited to cover substantially all losses incurred by ADP Indemnity for the fiscal 2024 policy year up to $1 million per occurrence. ADP Indemnity paid a premium of $276 million in July 2024 to enter into a reinsurance arrangement to cover substantially all losses for the fiscal 2025 policy year on terms substantially similar to the fiscal 2024 policy. |
Contingencies | Contingencies. In the normal course of business, the Company is subject to loss contingencies, such as claims and assessments arising from litigation and other legal proceedings, contractual indemnities, and tax matters. Accruals for loss contingencies are recorded when the Company determines that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the estimate of the amount of the loss is a range and some amount within the range appears to be a better estimate than any other amount within the range, that amount is accrued as a liability. If no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued as a liability. These accruals are adjusted periodically as assessments change or additional information becomes available. The loss contingencies are included in selling, general and administrative expenses. If no accrual is made for a loss contingency because the amount of loss cannot be reasonably estimated, the Company will disclose material contingent liabilities when there is at least a reasonable possibility that a loss or an additional loss may have been incurred. Legal fees and other costs related to litigation and other legal proceedings or services are expensed as incurred and are included in selling, general and administrative expenses. Any claim for insurance recovery is recognized only when realization becomes probable. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements. Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures This update enhances the transparency and decision usefulness of income tax disclosures to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. June 30, 2026 The Company is assessing this guidance. The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows. ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This update improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and certain quantitative disclosures. June 30, 2025 The Company is assessing this guidance. The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives | The estimated useful lives of assets are primarily as follows: Data processing equipment 5 to 10 years Buildings 20 to 40 years Furniture and fixtures 4 to 7 years |
Schedule of Earnings Per Share, Basic and Diluted | The calculations of basic and diluted EPS are as follows: Years ended June 30, Basic Effect of Employee Stock Option Shares Effect of Diluted 2024 Net earnings $ 3,752.0 $ 3,752.0 Weighted average shares (in millions) 410.6 0.7 0.9 412.2 EPS $ 9.14 $ 9.10 2023 Net earnings $ 3,412.0 $ 3,412.0 Weighted average shares (in millions) 413.7 0.9 1.1 415.7 EPS $ 8.25 $ 8.21 2022 Net earnings $ 2,948.9 $ 2,948.9 Weighted average shares (in millions) 418.8 1.1 1.2 421.1 EPS $ 7.04 $ 7.00 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables provide details of revenue by our business pillars and includes a reconciliation to the Company’s reportable segments. Years Ended June 30, Types of Revenues 2024 2023 2022 HCM $ 8,155.7 $ 7,716.1 $ 7,174.9 HRO, excluding PEO zero-margin benefits pass-throughs 3,544.2 3,386.0 3,116.3 PEO zero-margin benefits pass-throughs 3,975.9 3,800.9 3,514.4 Global 2,502.1 2,295.8 2,240.9 Interest on funds held for clients 1,024.7 813.4 451.8 Total Revenues $ 19,202.6 $ 18,012.2 $ 16,498.3 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2024: Types of Revenues Employer Services PEO Other Total HCM $ 8,164.2 $ — $ (8.5) $ 8,155.7 HRO, excluding PEO zero-margin benefits pass-throughs 1,299.1 2,248.4 (3.3) 3,544.2 PEO zero-margin benefits pass-throughs — 3,975.9 — 3,975.9 Global 2,502.1 — — 2,502.1 Interest on funds held for clients 1,015.4 9.3 — 1,024.7 Total Segment Revenues $ 12,980.8 $ 6,233.6 $ (11.8) $ 19,202.6 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2023: Types of Revenues Employer Services PEO Other Total HCM $ 7,724.7 $ — $ (8.6) $ 7,716.1 HRO, excluding PEO zero-margin benefits pass-throughs 1,216.1 2,175.9 (6.0) 3,386.0 PEO zero-margin benefits pass-throughs — 3,800.9 — 3,800.9 Global 2,295.8 — — 2,295.8 Interest on funds held for clients 806.0 7.4 — 813.4 Total Segment Revenues $ 12,042.6 $ 5,984.2 $ (14.6) $ 18,012.2 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2022: Types of Revenues Employer Services PEO Other Total HCM $ 7,183.1 $ — $ (8.2) $ 7,174.9 HRO, excluding PEO zero-margin benefits pass-throughs 1,096.1 2,027.1 (6.9) 3,116.3 PEO zero-margin benefits pass-throughs — 3,514.4 — 3,514.4 Global 2,240.9 — — 2,240.9 Interest on funds held for clients 447.6 4.2 — 451.8 Total Segment Revenues $ 10,967.7 $ 5,545.7 $ (15.1) $ 16,498.3 |
Contract with Customer, Liability | Changes in deferred revenue related to set up fees for the fiscal year ended June 30, 2024 were as follows: Contract Liability Contract liability, July 1, 2023 $ 464.8 Recognition of revenue included in beginning of year contract liability (132.7) Contract liability, net of revenue recognized on contracts during the year 148.1 Currency translation adjustments 11.4 Contract liability, June 30, 2024 $ 491.6 |
Deferred Costs | The balance is as follows: June 30, 2024 2023 Deferred costs to obtain a contract $ 1,353.0 $ 1,251.6 Deferred costs to fulfill a contract 1,612.0 1,518.1 Total deferred contract costs (1) $ 2,965.0 $ 2,769.7 (1) The amount of total deferred costs amortized during the fiscal years ended June 30, 2024, June 30, 2023, and June 30, 2022 were $1,067.6 million, $992.9 million, and $955.2 million, respectively. |
Other (Income)_Expense, Net (Ta
Other (Income)/Expense, Net (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Other Income, Net [Abstract] | |
Other Expense/(Income), Net | Other (income)/expense, net consists of the following: Years ended June 30, 2024 2023 2022 Interest income on corporate funds $ (241.3) $ (149.5) $ (41.0) Realized losses on available-for-sale securities, net 5.9 14.7 4.4 Impairment of assets — 2.1 23.0 Gain on sale of assets (17.1) — (7.5) Non-service components of pension income, net (34.2) (50.8) (61.7) Other (income)/expense, net $ (286.7) $ (183.5) $ (82.8) |
Corporate Investments And Fun_2
Corporate Investments And Funds Held For Clients (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Corporate Investments And Funds Held For Clients [Abstract] | |
Debt Securities, Available-for-sale | Corporate investments and funds held for clients at June 30, 2024 and 2023 were as follows: June 30, 2024 Amortized Gross Gross Fair Value (A) Type of issue: Money market securities, cash and other cash equivalents $ 10,086.0 $ — $ — $ 10,086.0 Available-for-sale securities: Corporate bonds 16,833.3 11.5 (944.8) 15,900.0 U.S. Treasury securities 7,701.2 9.0 (164.5) 7,545.7 Canadian government obligations and Canadian government agency obligations 2,130.7 1.7 (86.6) 2,045.8 U.S. government agency securities 1,645.0 0.5 (140.6) 1,504.9 Asset-backed securities 1,394.9 3.9 (43.0) 1,355.8 Canadian provincial bonds 1,116.3 2.3 (56.2) 1,062.4 Commercial mortgage-backed securities 535.9 — (35.1) 500.8 Other securities 1,366.0 2.0 (75.9) 1,292.1 Total available-for-sale securities 32,723.3 30.9 (1,546.7) 31,207.5 Total corporate investments and funds held for clients $ 42,809.3 $ 30.9 $ (1,546.7) $ 41,293.5 (A) Included within available-for-sale securities are corporate investments with fair values of $384.0 million and funds held for clients with fair values of $30,823.5 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy. June 30, 2023 Amortized Gross Gross Fair Value (B) Type of issue: Money market securities, cash and other cash equivalents $ 8,771.5 $ — $ — $ 8,771.5 Available-for-sale securities: Corporate bonds 15,870.7 4.7 (1,308.3) 14,567.1 U.S. Treasury securities 8,054.7 0.7 (290.4) 7,765.0 Canadian government obligations and 2,070.4 — (145.0) 1,925.4 U.S. government agency securities 1,670.0 0.2 (179.8) 1,490.4 Asset-backed securities 1,234.7 — (69.7) 1,165.0 Canadian provincial bonds 1,000.5 0.2 (78.1) 922.6 Commercial mortgage-backed securities 679.2 — (46.7) 632.5 Other securities 1,391.6 1.7 (96.4) 1,296.9 Total available-for-sale securities 31,971.8 7.5 (2,214.4) 29,764.9 Total corporate investments and funds held for clients $ 40,743.3 $ 7.5 $ (2,214.4) $ 38,536.4 (B) Included within available-for-sale securities are corporate investments with fair values of $119.3 million and funds held for clients with fair values of $29,645.6 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2024, are as follows: June 30, 2024 Securities in unrealized loss position less than Securities in unrealized loss position greater than 12 months Total Gross Unrealized Fair Market Gross Unrealized Fair Market Gross Fair Corporate bonds $ (25.8) $ 2,173.6 $ (919.0) $ 12,413.4 $ (944.8) $ 14,587.0 U.S. Treasury securities (23.1) 2,186.2 (141.4) 4,076.9 (164.5) 6,263.1 Canadian government obligations and Canadian government agency obligations (0.9) 304.6 (85.7) 1,591.6 (86.6) 1,896.2 U.S. government agency securities (0.7) 51.5 (139.9) 1,428.2 (140.6) 1,479.7 Asset-backed securities (2.3) 351.4 (40.7) 668.0 (43.0) 1,019.4 Canadian provincial bonds (1.3) 193.0 (54.9) 717.4 (56.2) 910.4 Commercial mortgage-backed securities (0.5) 11.2 (34.6) 489.6 (35.1) 500.8 Other securities (12.2) 288.5 (63.7) 864.8 (75.9) 1,153.3 $ (66.8) $ 5,560.0 $ (1,479.9) $ 22,249.9 $ (1,546.7) $ 27,809.9 The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2023 are as follows: June 30, 2023 Securities in unrealized loss position less than Securities in unrealized loss position greater than 12 months Total Gross Unrealized Fair Market Gross Unrealized Fair Market Gross Fair Corporate bonds $ (62.0) $ 2,255.9 $ (1,246.3) $ 12,050.5 $ (1,308.3) $ 14,306.4 U.S. Treasury securities (85.5) 4,629.4 (204.9) 2,876.3 (290.4) 7,505.7 Canadian government obligations and Canadian government agency obligations (5.8) 333.9 (139.2) 1,588.0 (145.0) 1,921.9 U.S. government agency securities (0.6) 28.2 (179.2) 1,432.2 (179.8) 1,460.4 Asset-backed securities (2.0) 159.7 (67.7) 975.6 (69.7) 1,135.3 Canadian provincial bonds (2.7) 127.0 (75.4) 757.3 (78.1) 884.3 Commercial mortgage-backed securities (6.7) 126.9 (40.0) 505.6 (46.7) 632.5 Other securities (14.5) 574.0 (81.9) 629.0 (96.4) 1,203.0 $ (179.8) $ 8,235.0 $ (2,034.6) $ 20,814.5 $ (2,214.4) $ 29,049.5 |
Classification of Corporate Investments on the Consolidated Balance Sheets | Classification of corporate investments on the Consolidated Balance Sheets is as follows: June 30, 2024 2023 Corporate investments: Cash and cash equivalents $ 2,913.4 $ 2,083.5 Short-term marketable securities (a) 384.0 14.7 Long-term marketable securities (b) — 104.6 Total corporate investments $ 3,297.4 $ 2,202.8 (a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets. (b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. |
Schedule of Investment of Funds Held for Clients | Funds held for clients have been invested in the following categories: June 30, 2024 2023 Funds held for clients: Restricted cash and cash equivalents held to satisfy client funds obligations $ 7,172.6 $ 6,688.0 Restricted short-term marketable securities held to satisfy client funds obligations 5,538.1 5,601.9 Restricted long-term marketable securities held to satisfy client funds obligations 25,285.4 24,043.7 Total funds held for clients $ 37,996.1 $ 36,333.6 |
Expected Maturities of Available-for-Sale Securities | Expected maturities of available-for-sale securities at June 30, 2024 are as follows: One year or less $ 5,922.2 One year to two years 7,465.5 Two years to three years 5,190.2 Three years to four years 3,857.9 After four years 8,771.7 Total available-for-sale securities $ 31,207.5 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment at cost and accumulated depreciation at June 30, 2024 and 2023 are as follows: June 30, 2024 2023 Property, plant and equipment: Land and buildings $ 648.1 $ 682.2 Data processing equipment 1,185.2 1,087.5 Furniture, leaseholds and other 670.0 669.3 2,503.3 2,439.0 Less: accumulated depreciation (1,817.7) (1,757.6) Property, plant and equipment, net $ 685.6 $ 681.4 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Lease, Cost | The components of operating lease expense were as follows: Year ended June 30, 2024 2023 2022 Operating lease cost $ 125.0 $ 135.2 $ 144.7 Short-term lease cost 1.4 2.0 1.1 Variable lease cost 18.3 16.1 11.5 Total operating lease cost $ 144.7 $ 153.3 $ 157.3 The following table provides supplemental cash flow information related to the Company's leases: Year ended June 30, 2024 2023 2022 Cash paid for operating lease liabilities $ 125.5 $ 129.2 $ 127.6 Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 97.4 $ 90.5 $ 127.4 Other information related to our operating lease liabilities is as follows: June 30, June 30, 2024 2023 Weighted-average remaining lease term (in years) 5 6 Weighted-average discount rate 3.3 % 2.7 % Current operating lease liability $ 92.2 $ 95.5 |
Lessee, Operating Lease, Liability, Maturity | As of June 30, 2024, maturities of operating lease liabilities are as follows: Twelve months ending June 30, 2025 $ 105.9 Twelve months ending June 30, 2026 94.8 Twelve months ending June 30, 2027 82.6 Twelve months ending June 30, 2028 62.9 Twelve months ending June 30, 2029 40.2 Thereafter 74.0 Total undiscounted lease obligations 460.4 Less: Imputed interest (39.6) Net lease obligations $ 420.8 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill for the fiscal years ended June 30, 2024 and 2023 are as follows: Employer PEO Total Balance at June 30, 2022 $ 2,295.7 $ 4.8 $ 2,300.5 Additions and other adjustments 26.2 — 26.2 Currency translation adjustments 12.7 — 12.7 Balance at June 30, 2023 $ 2,334.6 $ 4.8 $ 2,339.4 Additions and other adjustments 24.4 — 24.4 Currency translation adjustments (10.2) — (10.2) Balance at June 30, 2024 $ 2,348.8 $ 4.8 $ 2,353.6 |
Components of Finite-Lived Intangible Assets | Components of intangible assets, net, are as follows: June 30, 2024 2023 Intangible assets: Software and software licenses $ 3,803.7 $ 3,548.9 Customer contracts and lists 1,181.6 1,140.6 Other intangibles 242.0 241.9 5,227.3 4,931.4 Less accumulated amortization: Software and software licenses (2,642.6) (2,442.6) Customer contracts and lists (1,007.6) (907.5) Other intangibles (241.1) (237.7) (3,891.3) (3,587.8) Intangible assets, net $ 1,336.0 $ 1,343.6 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expenses of the Company's existing intangible assets are as follows: Amount Twelve months ending June 30, 2025 $ 419.2 Twelve months ending June 30, 2026 $ 228.7 Twelve months ending June 30, 2027 $ 183.8 Twelve months ending June 30, 2028 $ 144.2 Twelve months ending June 30, 2029 $ 116.1 |
Short-Term Financing (Tables)
Short-Term Financing (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Commercial Paper Program | Details of the borrowings under the commercial paper program are as follows: Years ended June 30, 2024 2023 Average daily borrowings (in billions) $ 3.5 $ 3.4 Weighted average interest rates 5.3 % 3.7 % Weighted average maturity (approximately in days) 2 days 2 days |
Reverse Repurchase Agreement | Details of the reverse repurchase agreements are as follows: Years ended June 30, 2024 2023 Average outstanding balances $ 1,828.6 $ 1,279.9 Weighted average interest rates 5.5 % 4.3 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The principal amounts and associated effective interest rates of the Notes and other debt as of June 30, 2024 and 2023 are as follows: Debt instrument Effective Interest Rate June 30, 2024 June 30, 2023 Fixed-rate 3.375% notes due September 15, 2025 3.47% 1,000.0 1,000.0 Fixed-rate 1.700% notes due May 15, 2028 1.85% 1,000.0 1,000.0 Fixed-rate 1.250% notes due September 1, 2030 1.83% 1,000.0 1,000.0 Other 4.1 4.9 3,004.1 3,004.9 Less: current portion (a) (1.1) (1.2) Less: unamortized discount and debt issuance costs (11.7) (14.7) Total long-term debt $ 2,991.3 $ 2,989.0 (a) - Current portion of long-term debt as of June 30, 2024 is included within accrued expenses and other current liabilities on the Consolidated Balance Sheets. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Components of Stock-Based Compensation Expense | The following table represents stock-based compensation expense and related income tax benefits in each of fiscal 2024, 2023, and 2022, respectively: Years ended June 30, 2024 2023 2022 Operating expenses $ 30.0 $ 24.6 $ 19.7 Selling, general and administrative expenses 179.5 165.0 155.7 Research and development 34.0 30.8 26.3 Total pretax stock-based compensation expense $ 243.5 $ 220.4 $ 201.7 Income tax benefit $ 60.2 $ 54.5 $ 49.1 |
Changes in Stock Options Outstanding | Stock Options: Number Weighted Options outstanding at July 1, 2023 2,654 $ 155 Options granted — $ — Options exercised (597) $ 141 Options forfeited/cancelled (15) $ 179 Options outstanding at June 30, 2024 2,042 $ 159 Options exercisable at June 30, 2024 1,513 $ 152 Shares available for future grants, end of year 20,061 Shares reserved for issuance under stock option plans, end of year 22,103 |
Time Based Restricted Shares and Units | Time-Based Restricted Stock and Time-Based Restricted Stock Units: Number of Shares Number of Units Restricted shares/units outstanding at July 1, 2023 450 730 Restricted shares/units granted — 638 Restricted shares/units vested (314) (273) Restricted shares/units forfeited (12) (42) Restricted shares/units outstanding at June 30, 2024 124 1,053 |
Performance Based Restricted Shares and Units | Performance-Based Restricted Stock and Performance-Based Restricted Stock Units: Number of Shares Number of Units Restricted shares/units outstanding at July 1, 2023 197 821 Restricted shares/units granted — 322 Restricted shares/units vested (103) (369) Restricted shares/units forfeited (6) (21) Restricted shares/units outstanding at June 30, 2024 88 753 |
Assumptions Used to Estimate Fair Value for Stock Options Granted | The fair value for stock options granted was estimated at the date of grant using the following assumptions: 2024 2023 2022 Risk-free interest rate N/A N/A — % Dividend yield N/A N/A 1.8 % Weighted average volatility factor N/A N/A 22.7 % Weighted average expected life (in years) N/A N/A 4.9 Weighted average fair value (in dollars) N/A N/A $ 33.03 |
Weighted Average Fair Value of Restricted Stock Granted | The weighted average fair values of shares/units granted were as follows: Year ended June 30, 2024 2023 2022 (in dollars) Performance-based restricted shares/units $ 262.56 $ 245.96 $ 206.86 Time-based restricted shares/units $ 255.29 $ 214.75 $ 208.08 |
Schedule of Net Funded Status | The Company's pension plans' funded status as of June 30, 2024 and 2023 is as follows: June 30, 2024 2023 Change in plan assets: Fair value of plan assets at beginning of year $ 1,854.4 $ 1,800.5 Actual return on plan assets 106.8 126.6 Employer contributions 13.4 17.0 Currency translation adjustments 0.6 (3.0) Benefits paid (95.6) (86.7) Fair value of plan assets at end of year $ 1,879.6 $ 1,854.4 Change in benefit obligation: Benefit obligation at beginning of year $ 1,725.8 $ 1,779.0 Service cost 5.2 4.8 Interest cost 84.6 78.2 Actuarial gain (a) (14.6) (48.2) Currency translation adjustments 0.8 (2.0) Acquisitions — 0.7 Benefits paid (95.6) (86.7) Projected benefit obligation at end of year $ 1,706.2 $ 1,725.8 Funded status - plan assets less benefit obligations $ 173.4 $ 128.6 (a) The actuarial gain for fiscal 2024 was primarily due to demographic changes. |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized on the Consolidated Balance Sheets as of June 30, 2024 and 2023 consisted of: June 30, 2024 2023 Noncurrent assets $ 286.3 $ 247.7 Current liabilities (11.1) (5.6) Noncurrent liabilities (101.8) (113.5) Net amount recognized $ 173.4 $ 128.6 |
Defined Benefit Plan, Plan With Projected Benefit Obligation in Excess of Plan Assets | The Company's pension plans with projected benefit obligations in excess of plan assets as of June 30, 2024 and 2023 had the following projected benefit obligation and fair value of plan assets: June 30, 2024 2023 Projected benefit obligation $ 143.7 $ 146.1 Fair value of plan assets $ 30.8 $ 27.0 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The Company's pension plans with accumulated benefit obligations in excess of plan assets as of June 30, 2024 and 2023 had the following accumulated benefit obligation and fair value of plan assets: June 30, 2024 2023 Accumulated benefit obligation $ 108.6 $ 117.0 Fair value of plan assets $ 7.6 $ 8.3 |
Components of Net Pension (Income)/ Expense | The components of net pension (income)/ expense were as follows: 2024 2023 2022 Service cost – benefits earned during the year $ 5.2 $ 4.8 $ 5.7 Interest cost on projected benefits 84.6 78.2 52.3 Expected return on plan assets (115.9) (127.5) (127.9) Net amortization and deferral 2.9 1.9 7.5 Special termination benefits, plan curtailments, and settlement charges 0.3 — 9.0 Net pension (income)/expense $ (22.9) $ (42.6) $ (53.4) |
Schedule of Assumptions Used | Assumptions used to determine the actuarial present value of benefit obligations were: Years ended June 30, 2024 2023 Discount rate 5.40 % 5.10 % Interest crediting rate 3.70 % 3.50 % Increase in compensation levels N/A N/A |
Defined Benefit Plan Assumptions Used Calculating Net Pension Expense | Assumptions used to determine the net pension expense generally were: Years ended June 30, 2024 2023 2022 Discount rate 5.10 % 4.60 % 2.55 % Interest crediting rate 3.50 % 3.25 % 3.25 % Expected long-term rate of return on assets 6.00 % 6.75 % 6.75 % Increase in compensation levels N/A N/A N/A |
Schedule of Allocation of Plan Assets | The Company's pension plans' asset allocations at June 30, 2024 and 2023 by asset category were as follows: 2024 2023 Cash and cash equivalents — % — % Fixed income securities 63 % 39 % U.S. equity securities 12 % 19 % International equity securities 10 % 15 % Global equity securities 15 % 27 % 100 % 100 % |
Defined Benefit Plan Target Allocation Percentage | The target asset allocation ranges for the U.S. plan are generally as follows: U.S. fixed income securities 60% - 70% U.S. equity securities 7% - 17% International equity securities 5% - 15% Global equity securities 8% - 18% |
Fair Value, Assets Measured on Recurring Basis | The following table presents the investments of the pension plans measured at fair value at June 30, 2024: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 679.5 $ — $ 679.5 Government securities — 490.4 — 490.4 Corporate and municipal bonds — 695.4 — 695.4 Mortgage-backed security bonds — 3.9 — 3.9 Total pension asset investments $ — $ 1,869.2 $ — $ 1,869.2 The following table presents the investments of the pension plans measured at fair value at June 30, 2023: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 829.5 $ — $ 829.5 U.S. government securities — 351.7 — 351.7 Mutual funds 18.2 279.0 — 297.2 Corporate and municipal bonds — 355.1 — 355.1 Mortgage-backed security bonds — 18.7 — 18.7 Total pension asset investments $ 18.2 $ 1,834.0 $ — $ 1,852.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax From Continuing Operations Provision for Income Tax Components Disclosure | Earnings before income taxes shown below are based on the geographic location to which such earnings are attributable. Years ended June 30, 2024 2023 2022 Earnings before income taxes: United States $ 4,408.0 $ 4,091.4 $ 3,461.8 Foreign 464.3 346.2 342.3 $ 4,872.3 $ 4,437.6 $ 3,804.1 |
Schedule of Components of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes consists of the following components: Years ended June 30, 2024 2023 2022 Current: Federal $ 847.4 $ 840.0 $ 620.7 Foreign 132.8 104.6 97.5 State 177.5 161.1 100.4 Total current 1,157.7 1,105.7 818.6 Deferred: Federal (18.7) (77.4) 20.7 Foreign (6.6) 4.3 (12.9) State (12.1) (7.0) 28.8 Total deferred (37.4) (80.1) 36.6 Total provision for income taxes $ 1,120.3 $ 1,025.6 $ 855.2 |
Reconciliation Between Federal Statutory Tax and Effective Tax Rate | A reconciliation between the Company's effective tax rate and the U.S. federal statutory rate is as follows: Years ended June 30, 2024 % 2023 % 2022 % Provision for taxes at U.S. statutory rate $ 1,023.2 21.0 $ 931.9 21.0 $ 798.9 21.0 Increase/(decrease) in provision from: State taxes, net of federal tax benefit 120.6 2.5 111.2 2.5 91.8 2.4 Foreign rate differential 41.0 0.9 33.1 0.7 41.3 1.1 Excess tax benefit - Stock-based compensation (17.1) (0.4) (19.0) (0.4) (19.9) (0.5) Other (47.4) (1.0) (31.6) (0.7) (56.9) (1.5) $ 1,120.3 23.0 $ 1,025.6 23.1 $ 855.2 22.5 |
Components of Deferred Tax Assets and Liabilities | The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows: Years ended June 30, 2024 2023 Deferred tax assets: Accrued expenses not currently deductible $ 237.4 $ 209.5 Stock-based compensation expense 51.3 48.8 Foreign tax credits 12.0 13.3 Fixed and intangible assets 194.9 108.2 Net operating losses 41.7 37.5 Prepaid royalty — 18.0 Unrealized investment losses, net 351.4 519.5 Other 39.1 39.9 927.8 994.7 Less: valuation allowances (11.1) (18.6) Deferred tax assets, net $ 916.7 $ 976.1 Deferred tax liabilities: Deferred contract costs $ 620.7 $ 578.1 Prepaid expenses 88.8 78.9 Prepaid retirement benefits 40.3 30.8 Tax on unrepatriated earnings 10.2 10.1 Other 20.8 20.7 Deferred tax liabilities 780.8 718.6 Net deferred tax assets $ 135.9 $ 257.5 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2024 2023 2022 Unrecognized tax benefits at beginning of the year $ 116.9 $ 98.1 $ 99.9 Additions for tax positions 17.2 11.3 8.0 Additions for tax positions of prior periods 17.8 16.8 11.6 Reductions for tax positions of prior periods (12.8) (5.0) (8.5) Settlement with tax authorities (9.0) (1.8) (2.0) Expiration of the statute of limitations (2.9) (1.0) (9.2) Impact of foreign exchange rate fluctuations (0.3) (1.5) (1.7) Unrecognized tax benefit at end of year $ 126.9 $ 116.9 $ 98.1 |
Summary of Income Tax Examinations | Examinations in progress in which the Company has significant business operations are as follows: Taxing Jurisdiction Fiscal Years under Examination U.S. (IRS) 2023 - 2024 Arizona 2016 - 2020 Massachusetts 2016 - 2020 New York City 2016 - 2021 New York State 2019 - 2021 India 2014 - 2018, 2020 - 2022 |
Reclassification out of Accum_2
Reclassification out of Accumulated Other Comprehensive Income ("AOCI") (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | |
Changes in Accumulated Other Comprehensive Income (“AOCI”) | Changes in Accumulated Other Comprehensive Income (“AOCI”) by component are as follows: Currency Translation Adjustment Net Gains/(Losses) on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss) /Income Balance at June 30, 2021 $ (226.8) $ 390.9 $ (29.9) $ (123.6) $ 10.6 Other comprehensive income/(loss) before reclassification adjustments (127.4) (2,228.0) — (229.8) (2,585.2) Tax effect — 503.7 — 57.3 561.0 Reclassification adjustments to net earnings — 4.4 (A) 4.4 (C) 18.1 (B) 26.9 Tax effect — (1.0) (1.1) (4.9) (7.0) Balance at June 30, 2022 $ (354.2) $ (1,330.0) $ (26.6) $ (282.9) $ (1,993.7) Other comprehensive income/(loss) before reclassification adjustments 13.4 (500.3) — 60.3 (426.6) Tax effect — 113.3 — (13.3) 100.0 Reclassification adjustments to net earnings — 14.7 (A) 4.4 (C) (0.4) (B) 18.7 Tax effect — (3.3) (1.1) 0.2 (4.2) Balance at June 30, 2023 $ (340.8) $ (1,705.6) $ (23.3) $ (236.1) $ (2,305.8) Other comprehensive income/(loss) before reclassification adjustments (38.0) 685.2 — 5.6 652.8 Tax effect — (162.2) — (1.1) (163.3) Reclassification adjustments to net earnings — 5.9 (A) 4.4 (C) 0.1 (B) 10.4 Tax effect — (1.3) (1.1) — (2.4) Balance at June 30, 2024 $ (378.8) $ (1,178.0) $ (20.0) $ (231.5) $ (1,808.3) (A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in net pension (income)/expense (see Note 10). (C) Reclassification adjustments out of AOCI are included in Interest expense on the Statements of Consolidated Earnings (see Note 9). |
Financial Data By Segment And_2
Financial Data By Segment And Geographic Area (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Employer Services PEO Services Other Total Year ended June 30, 2024 Revenues $ 12,980.8 $ 6,233.6 $ (11.8) $ 19,202.6 Earnings before income taxes 4,555.5 921.5 (604.7) 4,872.3 Capital expenditures 157.3 — 54.4 211.7 Depreciation and amortization 486.6 6.8 68.5 561.9 Year ended June 30, 2023 Revenues $ 12,042.6 $ 5,984.2 $ (14.6) $ 18,012.2 Earnings before income taxes 3,974.2 977.3 (513.9) 4,437.6 Capital expenditures 161.4 — 44.6 206.0 Depreciation and amortization 467.6 7.5 74.2 549.3 Year ended June 30, 2022 Revenues $ 10,967.7 $ 5,545.7 $ (15.1) $ 16,498.3 Earnings before income taxes 3,406.3 871.2 (473.4) 3,804.1 Capital expenditures 125.4 — 51.7 177.1 Depreciation and amortization 428.5 8.3 78.3 515.1 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | United States Europe Canada Other Total Year ended June 30, 2024 Revenues $ 16,934.2 $ 1,451.4 $ 473.7 $ 343.3 $ 19,202.6 Assets $ 47,989.9 $ 2,800.8 $ 2,796.6 $ 775.4 $ 54,362.7 Year ended June 30, 2023 Revenues $ 15,950.9 $ 1,309.2 $ 427.5 $ 324.6 $ 18,012.2 Assets $ 44,565.9 $ 2,602.2 $ 3,022.0 $ 780.9 $ 50,971.0 Year ended June 30, 2022 Revenues $ 14,503.3 $ 1,304.2 $ 389.3 $ 301.5 $ 16,498.3 Assets $ 56,856.2 $ 2,452.9 $ 2,987.9 $ 771.2 $ 63,068.2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) shares in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) segment note shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Percent of level two investment pricing inputs provided by independent pricing service (over) | 99% | ||||
Number of notes issued | note | 3 | ||||
Debt instrument, face amount | $ 3,000,000,000 | ||||
Options excluded from the calculation of diluted earnings per share because their exercise prices exceeded the average market price (in shares) | shares | 0 | 0.2 | 0.6 | ||
Weighted average remaining useful life | 5 years | ||||
Unrecognized tax benefits | $ 126,900,000 | $ 116,900,000 | $ 98,100,000 | $ 99,900,000 | |
Threshold of coverage for all losses per occurrence covered by reinsurance arrangement, next fiscal year | 1,000,000 | ||||
Concentration risk, credit risk, financial instruments, off-balance sheet risk | 351,000,000 | ||||
Letters of credit outstanding, amount | 0 | $ 0 | |||
Payments for reinsurance | 269,000,000 | ||||
Threshold for reinsurance per occurrence (up to) | $ 1,000,000 | ||||
Subsequent Event | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Payments for reinsurance | $ 276,000,000 | ||||
Internal Use Software | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Weighted average remaining useful life | 10 years | ||||
Minimum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Revenue, service agreements, term | 30 days | ||||
Revenue, remaining performance obligation, expected timing of satisfaction | 5 years | ||||
Collection period | 30 days | ||||
Revenue, incremental costs of obtaining a contract, period of recognition | 3 years | ||||
Revenue, capitalized costs fulfillment period | 3 years | ||||
Debt instrument, term | 7 years | ||||
Minimum | Internal Use Software | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Weighted average remaining useful life | 3 years | ||||
Maximum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Revenue, service agreements, term | 5 years | ||||
Revenue, remaining performance obligation, expected timing of satisfaction | 7 years | ||||
Collection period | 60 days | ||||
Revenue, incremental costs of obtaining a contract, period of recognition | 8 years | ||||
Revenue, capitalized costs fulfillment period | 8 years | ||||
Debt instrument, term | 10 years | ||||
Maximum | Internal Use Software | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Weighted average remaining useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) | Jun. 30, 2024 |
Minimum | Data processing equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Minimum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 4 years |
Maximum | Data processing equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Maximum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | |||
Net earnings | $ 3,752 | $ 3,412 | $ 2,948.9 |
Basic weighted average shares outstanding (in shares) | 410.6 | 413.7 | 418.8 |
Effect of Employee Stock Option Shares (in shares) | 0.7 | 0.9 | 1.1 |
Effect of Employee Restricted Stock Shares (in shares) | 0.9 | 1.1 | 1.2 |
Diluted weighted average shares outstanding (in shares) | 412.2 | 415.7 | 421.1 |
EPS from continuing operations, Basic (in dollars per share) | $ 9.14 | $ 8.25 | $ 7.04 |
EPS from continuing operations, Diluted (in dollars per share) | $ 9.10 | $ 8.21 | $ 7 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) | 12 Months Ended |
Jun. 30, 2024 USD ($) businessPillar | |
Revenue from Contract with Customer [Abstract] | |
Number of strategic pillars (in business pillars) | businessPillar | 3 |
Deferred costs, impairment loss | $ | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 19,202.6 | $ 18,012.2 | $ 16,498.3 |
HCM | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 8,155.7 | 7,716.1 | 7,174.9 |
HRO, excluding PEO zero-margin benefits pass-throughs | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,544.2 | 3,386 | 3,116.3 |
PEO zero-margin benefits pass-throughs | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,975.9 | 3,800.9 | 3,514.4 |
Global | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,502.1 | 2,295.8 | 2,240.9 |
Interest on funds held for clients | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,024.7 | 813.4 | 451.8 |
Employer Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 12,980.8 | 12,042.6 | 10,967.7 |
Employer Services | HCM | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 8,164.2 | 7,724.7 | 7,183.1 |
Employer Services | HRO, excluding PEO zero-margin benefits pass-throughs | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,299.1 | 1,216.1 | 1,096.1 |
Employer Services | PEO zero-margin benefits pass-throughs | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Employer Services | Global | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,502.1 | 2,295.8 | 2,240.9 |
Employer Services | Interest on funds held for clients | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,015.4 | 806 | 447.6 |
PEO | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6,233.6 | 5,984.2 | 5,545.7 |
PEO | HCM | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
PEO | HRO, excluding PEO zero-margin benefits pass-throughs | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,248.4 | 2,175.9 | 2,027.1 |
PEO | PEO zero-margin benefits pass-throughs | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,975.9 | 3,800.9 | 3,514.4 |
PEO | Global | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
PEO | Interest on funds held for clients | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 9.3 | 7.4 | 4.2 |
Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (11.8) | (14.6) | (15.1) |
Other | HCM | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (8.5) | (8.6) | (8.2) |
Other | HRO, excluding PEO zero-margin benefits pass-throughs | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (3.3) | (6) | (6.9) |
Other | PEO zero-margin benefits pass-throughs | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Other | Global | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Other | Interest on funds held for clients | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Revenue- Change in Deferred Rev
Revenue- Change in Deferred Revenue (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2024 USD ($) | |
Contract Liability | |
Contract liability, July 1, 2023 | $ 464.8 |
Recognition of revenue included in beginning of year contract liability | (132.7) |
Contract liability, net of revenue recognized on contracts during the year | 148.1 |
Currency translation adjustments | 11.4 |
Contract liability, June 30, 2024 | $ 491.6 |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Capitalized Contract Cost [Line Items] | |||
Deferred contract costs | $ 2,965 | $ 2,769.7 | |
Amortization of deferred contract costs | 1,067.6 | 992.9 | $ 955.2 |
Deferred costs to obtain a contract | |||
Capitalized Contract Cost [Line Items] | |||
Deferred contract costs | 1,353 | 1,251.6 | |
Deferred costs to fulfill a contract | |||
Capitalized Contract Cost [Line Items] | |||
Deferred contract costs | $ 1,612 | $ 1,518.1 |
Other (Income)_Expense, Net - S
Other (Income)/Expense, Net - Schedule of Other (Income)/Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income, Net [Abstract] | |||
Interest income on corporate funds | $ (241.3) | $ (149.5) | $ (41) |
Realized losses on available-for-sale securities, net | 5.9 | 14.7 | 4.4 |
Impairment of assets | 0 | 2.1 | 23 |
Gain on sale of business | (17.1) | 0 | (7.5) |
Non-service components of pension income, net | (34.2) | (50.8) | (61.7) |
Other (income)/expense, net | $ (286.7) | $ (183.5) | $ (82.8) |
Other (Income)_Expense, Net - N
Other (Income)/Expense, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income, Net [Abstract] | |||
Interest rate, stated percentage | 3.30% | 2.40% | |
Impairment of assets | $ 0 | $ 2.1 | $ 23 |
Impairment, Intangible Asset, Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | ||
Impairment of intangible assets | $ 12.1 | ||
Operating lease, impairment loss | $ 10.9 |
Corporate Investments and Fun_3
Corporate Investments and Funds Held For Clients - Corporate Investments and Funds Held for Clients (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | |||
Money market securities, cash and other cash equivalents - amortized cost | $ 2,913.4 | $ 2,083.5 | $ 1,436.3 |
Amortized Cost | 32,723.3 | 31,971.8 | |
Gross Unrealized Gains | 30.9 | 7.5 | |
Gross Unrealized Losses | (1,546.7) | (2,214.4) | |
Fair market value | 31,207.5 | 29,764.9 | |
Total corporate investments and funds held for clients - amortized cost | 42,809.3 | 40,743.3 | |
Total corporate investments and funds held for clients - gross unrealized gains | 30.9 | 7.5 | |
Total corporate investments and funds held for clients - gross unrealized losses | (1,546.7) | (2,214.4) | |
Total corporate investments and funds held for clients - fair market value | 41,293.5 | 38,536.4 | |
Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 16,833.3 | 15,870.7 | |
Gross Unrealized Gains | 11.5 | 4.7 | |
Gross Unrealized Losses | (944.8) | (1,308.3) | |
Fair market value | 15,900 | 14,567.1 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 7,701.2 | 8,054.7 | |
Gross Unrealized Gains | 9 | 0.7 | |
Gross Unrealized Losses | (164.5) | (290.4) | |
Fair market value | 7,545.7 | 7,765 | |
Canadian government obligations and Canadian government agency obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 2,130.7 | 2,070.4 | |
Gross Unrealized Gains | 1.7 | 0 | |
Gross Unrealized Losses | (86.6) | (145) | |
Fair market value | 2,045.8 | 1,925.4 | |
U.S. government agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,645 | 1,670 | |
Gross Unrealized Gains | 0.5 | 0.2 | |
Gross Unrealized Losses | (140.6) | (179.8) | |
Fair market value | 1,504.9 | 1,490.4 | |
Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,394.9 | 1,234.7 | |
Gross Unrealized Gains | 3.9 | 0 | |
Gross Unrealized Losses | (43) | (69.7) | |
Fair market value | 1,355.8 | 1,165 | |
Canadian provincial bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,116.3 | 1,000.5 | |
Gross Unrealized Gains | 2.3 | 0.2 | |
Gross Unrealized Losses | (56.2) | (78.1) | |
Fair market value | 1,062.4 | 922.6 | |
Commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 535.9 | 679.2 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (35.1) | (46.7) | |
Fair market value | 500.8 | 632.5 | |
Other securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,366 | 1,391.6 | |
Gross Unrealized Gains | 2 | 1.7 | |
Gross Unrealized Losses | (75.9) | (96.4) | |
Fair market value | 1,292.1 | 1,296.9 | |
Corporate Investments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair market value | 384 | 119.3 | |
Funds Held For Clients | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair market value | 30,823.5 | 29,645.6 | |
Money market securities, cash and other cash equivalents | |||
Debt Securities, Available-for-sale [Line Items] | |||
Money market securities, cash and other cash equivalents - amortized cost | 10,086 | 8,771.5 | |
Money market securities and other cash equivalents - fair market value | $ 10,086 | $ 8,771.5 |
Corporate Investments and Fun_4
Corporate Investments and Funds Held For Clients - Narrative (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | $ 31,207,500,000 | $ 29,764,900,000 |
Client fund obligation repayment period | 1 year | |
Client funds obligations | $ 39,503,900,000 | 38,538,600,000 |
Funds held for clients held-in grantor trust | $ 34,940,000,000 | |
Client funds investments with original maturities | 90 days | |
Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | $ 0 | |
Fair Value, Inputs, Level 3 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 0 | |
Asset-Backed Auto Loan Receivables | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 686,800,000 | |
Fixed Rate Credit Card | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 413,300,000 | |
Asset-Backed Equipment Lease Receivable | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 168,900,000 | |
Federal Farm Credit Banks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 951,800,000 | |
Federal Home Loan Banks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 473,600,000 | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 500,800,000 | $ 632,500,000 |
Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 529,300,000 | |
Debt Security, Corporate, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 400,300,000 | |
Supranational Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | $ 209,800,000 |
Corporate Investments and Fun_5
Corporate Investments and Funds Held For Clients - Available-for-Sale Securities That Have Been in an Unrealized Loss Position (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities in Unrealized Loss Position Less Than 12 Months, Gross Unrealized Losses | $ (66.8) | $ (179.8) |
Securities in Unrealized Loss Position Less Than 12 Months, Fair Market Value | 5,560 | 8,235 |
Securities in Unrealized Loss Position Greater Than 12 Months, Gross Unrealized Losses | (1,479.9) | (2,034.6) |
Securities in Unrealized Loss Position Greater Than 12 Months, Fair Market Value | 22,249.9 | 20,814.5 |
Total, Gross Unrealized Losses | (1,546.7) | (2,214.4) |
Total, Fair Market Value | 27,809.9 | 29,049.5 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in Unrealized Loss Position Less Than 12 Months, Gross Unrealized Losses | (25.8) | (62) |
Securities in Unrealized Loss Position Less Than 12 Months, Fair Market Value | 2,173.6 | 2,255.9 |
Securities in Unrealized Loss Position Greater Than 12 Months, Gross Unrealized Losses | (919) | (1,246.3) |
Securities in Unrealized Loss Position Greater Than 12 Months, Fair Market Value | 12,413.4 | 12,050.5 |
Total, Gross Unrealized Losses | (944.8) | (1,308.3) |
Total, Fair Market Value | 14,587 | 14,306.4 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in Unrealized Loss Position Less Than 12 Months, Gross Unrealized Losses | (23.1) | (85.5) |
Securities in Unrealized Loss Position Less Than 12 Months, Fair Market Value | 2,186.2 | 4,629.4 |
Securities in Unrealized Loss Position Greater Than 12 Months, Gross Unrealized Losses | (141.4) | (204.9) |
Securities in Unrealized Loss Position Greater Than 12 Months, Fair Market Value | 4,076.9 | 2,876.3 |
Total, Gross Unrealized Losses | (164.5) | (290.4) |
Total, Fair Market Value | 6,263.1 | 7,505.7 |
Canadian government obligations and Canadian government agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in Unrealized Loss Position Less Than 12 Months, Gross Unrealized Losses | (0.9) | (5.8) |
Securities in Unrealized Loss Position Less Than 12 Months, Fair Market Value | 304.6 | 333.9 |
Securities in Unrealized Loss Position Greater Than 12 Months, Gross Unrealized Losses | (85.7) | (139.2) |
Securities in Unrealized Loss Position Greater Than 12 Months, Fair Market Value | 1,591.6 | 1,588 |
Total, Gross Unrealized Losses | (86.6) | (145) |
Total, Fair Market Value | 1,896.2 | 1,921.9 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in Unrealized Loss Position Less Than 12 Months, Gross Unrealized Losses | (0.7) | (0.6) |
Securities in Unrealized Loss Position Less Than 12 Months, Fair Market Value | 51.5 | 28.2 |
Securities in Unrealized Loss Position Greater Than 12 Months, Gross Unrealized Losses | (139.9) | (179.2) |
Securities in Unrealized Loss Position Greater Than 12 Months, Fair Market Value | 1,428.2 | 1,432.2 |
Total, Gross Unrealized Losses | (140.6) | (179.8) |
Total, Fair Market Value | 1,479.7 | 1,460.4 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in Unrealized Loss Position Less Than 12 Months, Gross Unrealized Losses | (2.3) | (2) |
Securities in Unrealized Loss Position Less Than 12 Months, Fair Market Value | 351.4 | 159.7 |
Securities in Unrealized Loss Position Greater Than 12 Months, Gross Unrealized Losses | (40.7) | (67.7) |
Securities in Unrealized Loss Position Greater Than 12 Months, Fair Market Value | 668 | 975.6 |
Total, Gross Unrealized Losses | (43) | (69.7) |
Total, Fair Market Value | 1,019.4 | 1,135.3 |
Canadian provincial bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in Unrealized Loss Position Less Than 12 Months, Gross Unrealized Losses | (1.3) | (2.7) |
Securities in Unrealized Loss Position Less Than 12 Months, Fair Market Value | 193 | 127 |
Securities in Unrealized Loss Position Greater Than 12 Months, Gross Unrealized Losses | (54.9) | (75.4) |
Securities in Unrealized Loss Position Greater Than 12 Months, Fair Market Value | 717.4 | 757.3 |
Total, Gross Unrealized Losses | (56.2) | (78.1) |
Total, Fair Market Value | 910.4 | 884.3 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in Unrealized Loss Position Less Than 12 Months, Gross Unrealized Losses | (0.5) | (6.7) |
Securities in Unrealized Loss Position Less Than 12 Months, Fair Market Value | 11.2 | 126.9 |
Securities in Unrealized Loss Position Greater Than 12 Months, Gross Unrealized Losses | (34.6) | (40) |
Securities in Unrealized Loss Position Greater Than 12 Months, Fair Market Value | 489.6 | 505.6 |
Total, Gross Unrealized Losses | (35.1) | (46.7) |
Total, Fair Market Value | 500.8 | 632.5 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in Unrealized Loss Position Less Than 12 Months, Gross Unrealized Losses | (12.2) | (14.5) |
Securities in Unrealized Loss Position Less Than 12 Months, Fair Market Value | 288.5 | 574 |
Securities in Unrealized Loss Position Greater Than 12 Months, Gross Unrealized Losses | (63.7) | (81.9) |
Securities in Unrealized Loss Position Greater Than 12 Months, Fair Market Value | 864.8 | 629 |
Total, Gross Unrealized Losses | (75.9) | (96.4) |
Total, Fair Market Value | $ 1,153.3 | $ 1,203 |
Corporate Investments And Fun_6
Corporate Investments And Funds Held For Clients - Classification of Corporate Investments on the Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 |
Corporate Investments And Funds Held For Clients [Abstract] | |||
Cash and cash equivalents | $ 2,913.4 | $ 2,083.5 | $ 1,436.3 |
Short-term marketable securities | 384 | 14.7 | |
Long-term marketable securities | 0 | 104.6 | |
Total corporate investments | $ 3,297.4 | $ 2,202.8 |
Corporate Investments And Fun_7
Corporate Investments And Funds Held For Clients - Schedule of Investment of Funds Held for Clients (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Marketable Securities [Line Items] | ||||
Restricted cash and cash equivalents held to satisfy client funds obligations | [1] | $ 7,172.6 | $ 6,688 | $ 21,346.7 |
Total funds held for clients | 37,996.1 | 36,333.6 | ||
Current | ||||
Marketable Securities [Line Items] | ||||
Restricted short-term and long term marketable securities held to satisfy client funds obligations | 5,538.1 | 5,601.9 | ||
Long-term | ||||
Marketable Securities [Line Items] | ||||
Restricted short-term and long term marketable securities held to satisfy client funds obligations | $ 25,285.4 | $ 24,043.7 | ||
[1]See Note 4 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets. |
Corporate Investments and Fun_8
Corporate Investments and Funds Held For Clients - Expected Maturities of Available-for-Sale Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Corporate Investments And Funds Held For Clients [Abstract] | ||
One year or less | $ 5,922.2 | |
One year to two years | 7,465.5 | |
Two years to three years | 5,190.2 | |
Three years to four years | 3,857.9 | |
After four years | 8,771.7 | |
Total available-for-sale securities | $ 31,207.5 | $ 29,764.9 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,503.3 | $ 2,439 |
Less: accumulated depreciation | (1,817.7) | (1,757.6) |
Property, plant and equipment, net | 685.6 | 681.4 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 648.1 | 682.2 |
Data processing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,185.2 | 1,087.5 |
Furniture, leaseholds and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 670 | $ 669.3 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 190.3 | $ 176.5 | $ 171 |
Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Assets held-for-sale, long lived, fair value | $ 5 | $ 17.3 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 2024 | Jun. 30, 2023 |
Leases [Abstract] | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Remaining lease term | 11 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | |||
Operating lease cost | $ 125 | $ 135.2 | $ 144.7 |
Short-term lease cost | 1.4 | 2 | 1.1 |
Variable lease cost | 18.3 | 16.1 | 11.5 |
Total operating lease cost | $ 144.7 | $ 153.3 | $ 157.3 |
Leases - Right of Use Assets an
Leases - Right of Use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | |||
Cash paid for operating lease liabilities | $ 125.5 | $ 129.2 | $ 127.6 |
Operating lease ROU assets obtained in exchange for new operating lease liabilities | $ 97.4 | $ 90.5 | $ 127.4 |
Weighted-average remaining lease term (in years) | 5 years | 6 years | |
Weighted-average discount rate | 3.30% | 2.70% | |
Current operating lease liability | $ 92.2 | $ 95.5 |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturities (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
Twelve months ending June 30, 2025 | $ 105.9 |
Twelve months ending June 30, 2026 | 94.8 |
Twelve months ending June 30, 2027 | 82.6 |
Twelve months ending June 30, 2028 | 62.9 |
Twelve months ending June 30, 2029 | 40.2 |
Thereafter | 74 |
Total undiscounted lease obligations | 460.4 |
Less: Imputed interest | (39.6) |
Net lease obligations | $ 420.8 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets, Net - Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 2,339.4 | $ 2,300.5 |
Additions and other adjustments | 24.4 | 26.2 |
Currency translation adjustments | (10.2) | 12.7 |
Ending balance | 2,353.6 | 2,339.4 |
Employer Services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,334.6 | 2,295.7 |
Additions and other adjustments | 24.4 | 26.2 |
Currency translation adjustments | (10.2) | 12.7 |
Ending balance | 2,348.8 | 2,334.6 |
PEO Services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4.8 | 4.8 |
Additions and other adjustments | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Ending balance | $ 4.8 | $ 4.8 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets, Net - Components of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | $ 5,227.3 | $ 4,931.4 |
Total - accumulated amortization | (3,891.3) | (3,587.8) |
Intangible assets, net | 1,336 | 1,343.6 |
Software and software licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | 3,803.7 | 3,548.9 |
Total - accumulated amortization | (2,642.6) | (2,442.6) |
Customer contracts and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | 1,181.6 | 1,140.6 |
Total - accumulated amortization | (1,007.6) | (907.5) |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total - gross | 242 | 241.9 |
Total - accumulated amortization | $ (241.1) | $ (237.7) |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 5 years | ||
Amortization of intangible assets | $ 371.6 | $ 372.8 | $ 344.1 |
Software and software licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 6 years | ||
Customer contracts and lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 3 years | ||
Other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 1 year |
Goodwill And Intangible Asset_6
Goodwill And Intangible Assets, Net - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Twelve months ending June 30, 2025 | $ 419.2 |
Twelve months ending June 30, 2026 | 228.7 |
Twelve months ending June 30, 2027 | 183.8 |
Twelve months ending June 30, 2028 | 144.2 |
Twelve months ending June 30, 2029 | $ 116.1 |
Short-Term Financing - Narrativ
Short-Term Financing - Narrative (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 29, 2024 | Jun. 30, 2023 | ||
Short-term Debt [Line Items] | ||||
Line of credit facility, fair value of amount outstanding | $ 0 | $ 0 | ||
Commercial paper | $ 0 | 0 | ||
Maturities of short-term funding agreements (up to) | 5 days | |||
Obligations under reverse repurchase agreements | [1] | $ 385,400,000 | $ 105,400,000 | |
Aggregate committed obligations under reverse repurchase agreements | 7,300,000,000 | |||
364-Day Credit Agreement | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity under credit facilities | $ 4,550,000,000 | |||
Term of credit | 364 days | |||
Extension option term | 1 year | |||
Credit Facility Expiring In June 2028 | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity under credit facilities | $ 2,250,000,000 | |||
Term of credit | 5 years | |||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | |||
Credit Facility Expiring In June 2029 | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity under credit facilities | $ 3,500,000,000 | |||
Term of credit | 5 years | |||
Line of credit facility potentially available increase in maximum borrowing capacity | $ 500,000,000 | |||
Commercial Paper | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity under credit facilities | $ 10,300,000,000 | $ 9,700,000,000 | ||
Debt instrument, maturity period | 364 days | |||
[1]As of June 30, 2024, $384.0 million of short-term marketable securities and $1.4 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements. As of June 30, 2023, $104.6 million of long-term marketable securities and $0.8 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements (see Note 8). |
Short-Term Financing - Commerci
Short-Term Financing - Commercial Paper and Reverse Repurchase Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term debt, average outstanding amount | $ 3,500 | $ 3,400 |
Weighted average interest rates | 5.30% | 3.70% |
Weighted average maturity (approximately in days) | 2 days | 2 days |
Reverse Repurchase Agreements | ||
Short-term Debt [Line Items] | ||
Short-term debt, average outstanding amount | $ 1,828.6 | $ 1,279.9 |
Weighted average interest rates | 5.50% | 4.30% |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2024 USD ($) note | |
Debt Instrument [Line Items] | |
Number of notes issued | note | 3 |
Debt instrument, face amount | $ 3,000 |
Long-term debt, fair value | $ 2,681.6 |
Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, term | 7 years |
Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, term | 10 years |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Notes payable | $ 3,004.1 | $ 3,004.9 |
Less: current portion | (1.1) | (1.2) |
Less: unamortized discount and debt issuance costs | (11.7) | (14.7) |
Total long-term debt | $ 2,991.3 | 2,989 |
Notes due on 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.375% | |
Effective Interest Rate | 3.47% | |
Notes payable | $ 1,000 | 1,000 |
Notes due on 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.70% | |
Effective Interest Rate | 1.85% | |
Notes payable | $ 1,000 | 1,000 |
Notes due on 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.25% | |
Effective Interest Rate | 1.83% | |
Notes payable | $ 1,000 | 1,000 |
Other | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 4.1 | $ 4.9 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||||
Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Treasury stock, shares repurchased | 5.1 | 4.9 | 9.2 | |||
Cash payments for Restricted Stock Units | $ 24.1 | $ 23.5 | $ 22.1 | |||
Aggregate intrinsic value of stock options outstanding and exercisable | 162.5 | |||||
Options, vested and expected to vest, exercisable, aggregate intrinsic value | $ 130.9 | |||||
Weighted average remaining life of stock options outstanding and exercisable | 5 years | |||||
Options, exercisable, weighted average remaining contractual term | 4 years | |||||
Aggregate intrinsic value for options exercised | $ 63.2 | 80.6 | 80.8 | |||
Defined benefit plan, accumulated benefit obligation | 1,688.5 | 1,712.1 | ||||
Accumulated other comprehensive income net gains (losses), after tax | 286.1 | |||||
Accumulated other comprehensive income net prior service cost (credit), after tax | $ 3.9 | |||||
Minimum interest crediting rate | 3.25% | |||||
Plan assets | $ 1,879.6 | 1,854.4 | $ 1,800.5 | |||
Employer contributions | 13.4 | 17 | ||||
Expected future employer contributions, next fiscal year | 13.8 | |||||
Expected future plan benefit payment - 2025 | 136 | |||||
Expected future plan benefit payment - 2026 | 150 | |||||
Expected future plan benefit payment - 2027 | 153.7 | |||||
Expected future plan benefit payment - 2028 | 126 | |||||
Expected future plan benefit payment - 2029 | 128.5 | |||||
Expected future plan benefit payment - 2030 to 2034 | $ 669.5 | |||||
Defined contribution plan, maximum annual contribution per employee, percent | 50% | |||||
Highly compensated employee contribution percentage to retirement and saving plan | 12% | |||||
Defined contribution plan, cost | $ 184.1 | $ 163.6 | $ 153.1 | |||
Time-based restricted shares/units | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Vesting term options granted | 3 years | |||||
Performance Based Restricted Stock and Units | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Minimum percentage that will ultimately vest under performance-based restricted stock awards based on performance target | 0% | |||||
Maximum percentage that will ultimately vest under performance-based restricted stock awards based on performance target | 200% | |||||
Employee Stock | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Purchase price of common stock as percentage of market value | 95% | |||||
Non-Vested Stock Options | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Total remaining unrecognized compensation cost | $ 2.9 | |||||
Weighted-average remaining requisite vesting period | 1 year | |||||
Restricted Stock Units (RSUs) | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Total remaining unrecognized compensation cost | $ 186.9 | |||||
Weighted-average remaining requisite vesting period | 1 year 9 months 18 days | |||||
Non-Vested Restricted Stock | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Total remaining unrecognized compensation cost | $ 11.3 | |||||
Weighted-average remaining requisite vesting period | 8 months 12 days | |||||
Cash and cash equivalents | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Plan assets | $ 10.4 | $ 2.2 | ||||
Minimum | Performance Based Restricted Stock and Units | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Performance period (years) | 1 year | |||||
Maximum | Performance Based Restricted Stock and Units | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Vesting term options granted | 38 months | |||||
Performance period (years) | 3 years |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pretax stock-based compensation expense | $ 243.5 | $ 220.4 | $ 201.7 |
Income tax benefit | 60.2 | 54.5 | 49.1 |
Operating expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pretax stock-based compensation expense | 30 | 24.6 | 19.7 |
Selling, general and administrative expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pretax stock-based compensation expense | 179.5 | 165 | 155.7 |
Research and development | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pretax stock-based compensation expense | $ 34 | $ 30.8 | $ 26.3 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Stock Options Outstanding (Details) shares in Thousands | 12 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of Options (in thousands) | |
Beginning balance, options outstanding (in shares) | 2,654 |
Options granted (in shares) | 0 |
Options exercised (in shares) | (597) |
Options canceled (in shares) | (15) |
Ending balance, options outstanding (in shares) | 2,042 |
Ending balance, options exercisable (in shares) | 1,513 |
Shares available for future grants, end of year | 20,061 |
Shares reserved for issuance under stock option plans, end of year | 22,103 |
Weighted Average Price (in dollars) | |
Weighted Average Price, beginning of period (in dollars per share) | $ / shares | $ 155 |
Weighted Average Price, granted (in dollars per share) | $ / shares | 0 |
Weighted Average Price, exercised (in dollars per share) | $ / shares | 141 |
Weighted Average Price, cancelled (in dollars per share) | $ / shares | 179 |
Weighted Average Price, end of period (in dollars per share) | $ / shares | 159 |
Weighted Average Price, option exercisable, ending balance (in dollars per share) | $ / shares | $ 152 |
Employee Benefit Plans - Time-B
Employee Benefit Plans - Time-Based Restricted Shares and Units (Details) shares in Thousands | 12 Months Ended |
Jun. 30, 2024 shares | |
Time-based restricted shares/units | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Restricted shares/units outstanding, beginning balance | 450 |
Restricted shares/units granted | 0 |
Restricted shares/units vested | (314) |
Restricted shares/units forfeited | (12) |
Restricted shares/units outstanding, ending balance | 124 |
Time-Based Restricted Stock Units | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Restricted shares/units outstanding, beginning balance | 730 |
Restricted shares/units granted | 638 |
Restricted shares/units vested | (273) |
Restricted shares/units forfeited | (42) |
Restricted shares/units outstanding, ending balance | 1,053 |
Employee Benefit Plans - Perfor
Employee Benefit Plans - Performance Based Restricted Shares and Units (Details) shares in Thousands | 12 Months Ended |
Jun. 30, 2024 shares | |
Performance-based restricted shares/units | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Restricted shares/units outstanding, beginning balance | 197 |
Restricted shares/units granted | 0 |
Restricted shares/units vested | (103) |
Restricted shares/units forfeited | (6) |
Restricted shares/units outstanding, ending balance | 88 |
Performance Based Restricted Stock Unit | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Restricted shares/units outstanding, beginning balance | 821 |
Restricted shares/units granted | 322 |
Restricted shares/units vested | (369) |
Restricted shares/units forfeited | (21) |
Restricted shares/units outstanding, ending balance | 753 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Estimate Fair Value for Stock Options Granted (Details) | 12 Months Ended |
Jun. 30, 2022 $ / shares | |
Retirement Benefits [Abstract] | |
Risk-free interest rate | 0% |
Dividend yield | 1.80% |
Weighted average volatility factor | 22.70% |
Weighted average expected life (in years) | 4 years 10 months 24 days |
Weighted average fair value (in dollars per share) | $ 33.03 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Fair Value of Restricted Stock Plan Issuances (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in dollars per share) | $ 33.03 | ||
Performance-based restricted shares/units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in dollars per share) | $ 262.56 | $ 245.96 | 206.86 |
Time-based restricted shares/units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in dollars per share) | $ 255.29 | $ 214.75 | $ 208.08 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | $ 1,854.4 | $ 1,800.5 | |
Actual return on plan assets | 106.8 | 126.6 | |
Employer contributions | 13.4 | 17 | |
Currency translation adjustments | 0.6 | (3) | |
Benefits paid | (95.6) | (86.7) | |
Fair value of plan assets at end of year | 1,879.6 | 1,854.4 | $ 1,800.5 |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 1,725.8 | 1,779 | |
Service cost | 5.2 | 4.8 | 5.7 |
Interest cost | 84.6 | 78.2 | 52.3 |
Actuarial gain (a) | (14.6) | (48.2) | |
Currency translation adjustments | 0.8 | (2) | |
Acquisitions | 0 | 0.7 | |
Benefits paid | (95.6) | (86.7) | |
Projected benefit obligation at end of year | 1,706.2 | 1,725.8 | $ 1,779 |
Net amount recognized | $ 173.4 | $ 128.6 |
Employee Benefit Plans - Balanc
Employee Benefit Plans - Balance Sheet Impact (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Retirement Benefits [Abstract] | ||
Noncurrent assets | $ 286.3 | $ 247.7 |
Current liabilities | (11.1) | (5.6) |
Noncurrent liabilities | (101.8) | (113.5) |
Net amount recognized | $ 173.4 | $ 128.6 |
Employee Benefit Plan - Pension
Employee Benefit Plan - Pension Plans with Projected Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 143.7 | $ 146.1 |
Fair value of plan assets | $ 30.8 | $ 27 |
Employee Benefit Plan - Pensi_2
Employee Benefit Plan - Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation | $ 108.6 | $ 117 |
Fair value of plan assets | $ 7.6 | $ 8.3 |
Employee Benefit Plans - Comp_2
Employee Benefit Plans - Components Of Net Pension (Income)/Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |||
Service cost – benefits earned during the year | $ 5.2 | $ 4.8 | $ 5.7 |
Interest cost on projected benefits | 84.6 | 78.2 | 52.3 |
Expected return on plan assets | (115.9) | (127.5) | (127.9) |
Net amortization and deferral | 2.9 | 1.9 | 7.5 |
Special termination benefits, plan curtailments, and settlement charges | 0.3 | 0 | 9 |
Net pension (income)/expense | $ (22.9) | $ (42.6) | $ (53.4) |
Employee Benefit Plan - Defined
Employee Benefit Plan - Defined Benefit Plan Assumptions Used in Calculating Benefit Obligations (Details) | Jun. 30, 2024 | Jun. 30, 2023 |
Retirement Benefits [Abstract] | ||
Discount rate | 5.40% | 5.10% |
Interest crediting rate | 3.70% | 3.50% |
Employee Benefit Plan - Assumpt
Employee Benefit Plan - Assumptions Used in Calculating Net Pension Expense (Details) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |||
Discount rate | 5.10% | 4.60% | 2.55% |
Interest crediting rate | 3.50% | 3.25% | 3.25% |
Expected long-term rate of return on assets | 6% | 6.75% | 6.75% |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Plan Asset Allocation by Asset Category (Details) | Jun. 30, 2024 | Jun. 30, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 100% | 100% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 0% | 0% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 63% | 39% |
U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 12% | 19% |
International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 10% | 15% |
Global equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans' asset allocations | 15% | 27% |
Employee Benefit Plans - Pens_2
Employee Benefit Plans - Pension Plans' Target Asset Allocation Ranges (Details) - United States | Jun. 30, 2024 |
Minimum | Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, investment policy and strategy, | 60% |
Minimum | U.S. equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, investment policy and strategy, | 7% |
Minimum | International equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, investment policy and strategy, | 5% |
Minimum | Global equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, investment policy and strategy, | 8% |
Maximum | Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, investment policy and strategy, | 70% |
Maximum | U.S. equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, investment policy and strategy, | 17% |
Maximum | International equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, investment policy and strategy, | 15% |
Maximum | Global equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, investment policy and strategy, | 18% |
Employee Benefit Plans - Invest
Employee Benefit Plans - Investments of the Plan Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 1,879.6 | $ 1,854.4 | $ 1,800.5 |
Commingled trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 679.5 | 829.5 | |
Commingled trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Commingled trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 679.5 | 829.5 | |
Commingled trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 490.4 | 351.7 | |
U.S. government securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
U.S. government securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 490.4 | 351.7 | |
U.S. government securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 297.2 | ||
Mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 18.2 | ||
Mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 279 | ||
Mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Corporate and municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 695.4 | 355.1 | |
Corporate and municipal bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Corporate and municipal bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 695.4 | 355.1 | |
Corporate and municipal bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Mortgage-backed security bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3.9 | 18.7 | |
Mortgage-backed security bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Mortgage-backed security bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3.9 | 18.7 | |
Mortgage-backed security bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Total pension asset investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,869.2 | 1,852.2 | |
Total pension asset investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 18.2 | |
Total pension asset investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,869.2 | 1,834 | |
Total pension asset investments | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 0 | $ 0 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes From Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 4,408 | $ 4,091.4 | $ 3,461.8 |
Foreign | 464.3 | 346.2 | 342.3 |
EARNINGS BEFORE INCOME TAXES | $ 4,872.3 | $ 4,437.6 | $ 3,804.1 |
Income Taxes - Components of _2
Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Current: | |||
Federal | $ 847.4 | $ 840 | $ 620.7 |
Foreign | 132.8 | 104.6 | 97.5 |
State | 177.5 | 161.1 | 100.4 |
Total current | 1,157.7 | 1,105.7 | 818.6 |
Deferred: | |||
Federal | (18.7) | (77.4) | 20.7 |
Foreign | (6.6) | 4.3 | (12.9) |
State | (12.1) | (7) | 28.8 |
Total deferred | (37.4) | (80.1) | 36.6 |
Total provision for income taxes | $ 1,120.3 | $ 1,025.6 | $ 855.2 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Rate to Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Provision for taxes at U.S. statutory rate | $ 1,023.2 | $ 931.9 | $ 798.9 |
State taxes, net of federal tax benefit | 120.6 | 111.2 | 91.8 |
Foreign rate differential | 41 | 33.1 | 41.3 |
Excess tax benefit - Stock-based compensation | (17.1) | (19) | (19.9) |
Other | (47.4) | (31.6) | (56.9) |
Total provision for income taxes | $ 1,120.3 | $ 1,025.6 | $ 855.2 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Provision for taxes at U.S. statutory rate | 21% | 21% | 21% |
State taxes, net of federal tax benefit | 2.50% | 2.50% | 2.40% |
Foreign rate differential | 0.90% | 0.70% | 1.10% |
Excess tax benefit - Stock-based compensation | (0.40%) | (0.40%) | (0.50%) |
Other | (1.00%) | (0.70%) | (1.50%) |
Provision for income taxes from continuing operations, percent | 23% | 23.10% | 22.50% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Examination [Line Items] | ||||
Provision for income taxes from continuing operations, percent | 23% | 23.10% | 22.50% | |
Long-term deferred tax assets | $ 916.7 | $ 976.1 | ||
Undistributed earnings of foreign subsidiaries | 53 | |||
Deferred tax assets, operating loss carryforwards | 41.7 | 37.5 | ||
Valuation allowance | 11.1 | 18.6 | ||
Income taxes paid | 1,185.2 | 1,080.7 | $ 856.8 | |
Unrecognized tax benefits | 126.9 | 116.9 | 98.1 | $ 99.9 |
Unrecognized tax benefits that would impact effective tax rate | 91.8 | 83.6 | 68.1 | |
Unrecognized tax benefits, interest on income taxes expense | 5.7 | 9.1 | 3.5 | |
Unrecognized tax benefits, income tax penalties expense | 0.3 | |||
Unrecognized tax benefits, interest on income taxes accrued | 32.6 | 30 | ||
Unrecognized tax benefits, income tax penalties accrued | 0 | 0 | $ 0.3 | |
Other Assets | ||||
Income Tax Examination [Line Items] | ||||
Long-term deferred tax assets | 200.2 | $ 331.1 | ||
Foreign Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
Deferred tax assets, operating loss carryforwards | 74 | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | 0.9 | |||
Operating loss carry forwards not subject to expiration | 73.1 | |||
Domestic Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
Operating loss carryforwards | 26.5 | |||
State and Local Jurisdiction | ||||
Income Tax Examination [Line Items] | ||||
Operating loss carryforwards | $ 196.8 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Deferred tax assets: | ||
Accrued expenses not currently deductible | $ 237.4 | $ 209.5 |
Stock-based compensation expense | 51.3 | 48.8 |
Foreign tax credits | 12 | 13.3 |
Fixed and intangible assets | 194.9 | 108.2 |
Net operating losses | 41.7 | 37.5 |
Prepaid royalty | 0 | 18 |
Unrealized investment losses, net | 351.4 | 519.5 |
Other | 39.1 | 39.9 |
Deferred tax assets, gross | 927.8 | 994.7 |
Less: valuation allowances | (11.1) | (18.6) |
Deferred tax assets, net | 916.7 | 976.1 |
Deferred tax liabilities: | ||
Deferred contract costs | 620.7 | 578.1 |
Prepaid expenses | 88.8 | 78.9 |
Prepaid retirement benefits | 40.3 | 30.8 |
Tax on unrepatriated earnings | 10.2 | 10.1 |
Other | 20.8 | 20.7 |
Deferred tax liabilities | 780.8 | 718.6 |
Net deferred tax assets | $ 135.9 | $ 257.5 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending balance of Unrecognized Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of the year | $ 116.9 | $ 98.1 | $ 99.9 |
Additions for tax positions | 17.2 | 11.3 | 8 |
Additions for tax positions of prior periods | 17.8 | 16.8 | 11.6 |
Reductions for tax positions of prior periods | (12.8) | (5) | (8.5) |
Settlement with tax authorities | (9) | (1.8) | (2) |
Expiration of the statute of limitations | (2.9) | (1) | (9.2) |
Impact of foreign exchange rate fluctuations | (0.3) | (1.5) | (1.7) |
Unrecognized tax benefit at end of year | $ 126.9 | $ 116.9 | $ 98.1 |
Commitments Contingencies (Deta
Commitments Contingencies (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitments | $ 1,191.6 |
Purchase commitments relating to 2025 | 322.1 |
Purchase commitments relating to 2026 and 2027 | 426.7 |
Purchase commitments relating to 2028 and 2029 | $ 117.7 |
Reclassification out of Accum_3
Reclassification out of Accumulated Other Comprehensive Income ("AOCI") (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other comprehensive income (loss), net | $ 497.5 | $ (312.1) | $ (2,004.3) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive, beginning balance | 3,509.1 | ||
Other comprehensive income/(loss) before reclassification adjustments | 652.8 | (426.6) | (2,585.2) |
Tax effect | (163.3) | 100 | 561 |
Reclassification adjustments to net earnings | 10.4 | 18.7 | 26.9 |
Tax effect | (2.4) | (4.2) | (7) |
Accumulated Other Comprehensive, ending balance | 4,547.6 | 3,509.1 | |
Accumulated Other Comprehensive (Loss) /Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive, beginning balance | (2,305.8) | (1,993.7) | 10.6 |
Accumulated Other Comprehensive, ending balance | (1,808.3) | (2,305.8) | (1,993.7) |
Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive, beginning balance | (340.8) | (354.2) | (226.8) |
Other comprehensive income/(loss) before reclassification adjustments | (38) | 13.4 | (127.4) |
Tax effect | 0 | 0 | 0 |
Reclassification adjustments to net earnings | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 |
Accumulated Other Comprehensive, ending balance | (378.8) | (340.8) | (354.2) |
Net Gains/(Losses) on Available-for-sale Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive, beginning balance | (1,705.6) | (1,330) | 390.9 |
Other comprehensive income/(loss) before reclassification adjustments | 685.2 | (500.3) | (2,228) |
Tax effect | (162.2) | 113.3 | 503.7 |
Reclassification adjustments to net earnings | 5.9 | 14.7 | 4.4 |
Tax effect | (1.3) | (3.3) | (1) |
Accumulated Other Comprehensive, ending balance | (1,178) | (1,705.6) | (1,330) |
Cash Flow Hedging Activities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive, beginning balance | (23.3) | (26.6) | (29.9) |
Other comprehensive income/(loss) before reclassification adjustments | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 |
Reclassification adjustments to net earnings | 4.4 | 4.4 | 4.4 |
Tax effect | (1.1) | (1.1) | (1.1) |
Accumulated Other Comprehensive, ending balance | (20) | (23.3) | (26.6) |
Pension Liability | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive, beginning balance | (236.1) | (282.9) | (123.6) |
Other comprehensive income/(loss) before reclassification adjustments | 5.6 | 60.3 | (229.8) |
Tax effect | (1.1) | (13.3) | 57.3 |
Reclassification adjustments to net earnings | 0.1 | (0.4) | 18.1 |
Tax effect | 0 | 0.2 | (4.9) |
Accumulated Other Comprehensive, ending balance | $ (231.5) | $ (236.1) | $ (282.9) |
Financial Data By Segment And_3
Financial Data By Segment And Geographic Area - Narrative (Details) | 12 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Financial Data By Segment And_4
Financial Data By Segment And Geographic Area - Financial Data by Strategic Business Unit Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 19,202.6 | $ 18,012.2 | $ 16,498.3 |
Earnings before income taxes | 4,872.3 | 4,437.6 | 3,804.1 |
Capital expenditures | 211.7 | 206 | 177.1 |
Depreciation and amortization | 561.9 | 549.3 | 515.1 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | (11.8) | (14.6) | (15.1) |
Earnings before income taxes | (604.7) | (513.9) | (473.4) |
Capital expenditures | 54.4 | 44.6 | 51.7 |
Depreciation and amortization | 68.5 | 74.2 | 78.3 |
Employer Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 12,980.8 | 12,042.6 | 10,967.7 |
Earnings before income taxes | 4,555.5 | 3,974.2 | 3,406.3 |
Capital expenditures | 157.3 | 161.4 | 125.4 |
Depreciation and amortization | 486.6 | 467.6 | 428.5 |
PEO Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,233.6 | 5,984.2 | 5,545.7 |
Earnings before income taxes | 921.5 | 977.3 | 871.2 |
Capital expenditures | 0 | 0 | 0 |
Depreciation and amortization | $ 6.8 | $ 7.5 | $ 8.3 |
Financial Data By Segment And_5
Financial Data By Segment And Geographic Area - Financial Data by Geographic Area Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 19,202.6 | $ 18,012.2 | $ 16,498.3 |
Assets | 54,362.7 | 50,971 | 63,068.2 |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 16,934.2 | 15,950.9 | 14,503.3 |
Assets | 47,989.9 | 44,565.9 | 56,856.2 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,451.4 | 1,309.2 | 1,304.2 |
Assets | 2,800.8 | 2,602.2 | 2,452.9 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Revenues | 473.7 | 427.5 | 389.3 |
Assets | 2,796.6 | 3,022 | 2,987.9 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 343.3 | 324.6 | 301.5 |
Assets | $ 775.4 | $ 780.9 | $ 771.2 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Deferred tax valuation allowance | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | $ 18,600 | $ 18,867 | $ 13,377 | |
Charged to costs and expenses | 228 | 28 | 8,563 | |
Charged to other accounts | [1] | 1,216 | 366 | (250) |
Deductions | (8,925) | (661) | (2,823) | |
Balance at end of year | 11,119 | 18,600 | 18,867 | |
Current | Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 53,080 | 56,768 | 79,568 | |
Charged to costs and expenses | 34,642 | 23,412 | (1,893) | |
Charged to other accounts | [1] | 39 | (34) | 1,413 |
Deductions | [2] | (35,538) | (27,066) | (22,320) |
Balance at end of year | 52,223 | 53,080 | 56,768 | |
Long-term | Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 113 | 83 | 249 | |
Charged to costs and expenses | 0 | 0 | 0 | |
Charged to other accounts | [1] | 0 | 30 | (166) |
Deductions | [2] | 0 | 0 | 0 |
Balance at end of year | $ 113 | $ 113 | $ 83 | |
[1]Includes amounts related to foreign exchange fluctuation.[2]Doubtful accounts written off, less recoveries on accounts previously written off |