☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 22-1467904 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | ||||||||||
One ADP Boulevard | |||||||||||
Roseland, | NJ | 07068 | |||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
Common Stock, $0.10 Par Value
(voting) |
ADP |
NASDAQ Global Select Market
|
Large Accelerated Filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes | ☐ | No | ☒ |
Portions of the Registrant's Proxy Statement for its 2020 Annual Meeting of Stockholders. | Part III |
Page | ||||||||
Part I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Part III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
Part IV. | ||||||||
Item 15. | ||||||||
Signatures | ||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of the Publicly Announced Common Stock Repurchase Plan (2) |
Maximum Approximate Dollar Value
of Shares that may yet be Purchased under the Common Stock Repurchase Plan (2) |
||||||||||
April 1, 2020 to
April 30, 2020
|
2,377 | $146.69 | — | 4,463,426,975 | ||||||||||
May 1, 2020 to
May 31, 2020
|
205 | $146.49 | — | 4,463,426,975 | ||||||||||
June 1, 2020 to
June 30, 2020
|
939 | $148.89 | — | 4,463,426,975 | ||||||||||
Total | 3,521 | — |
(1) | Pursuant to the terms of the Company’s restricted stock program, the Company purchased 3,521 shares at the then market value of the shares in connection with the exercise by employees under such program to satisfy certain tax withholding requirements through the delivery of shares to the Company instead of cash. | |||||||||||||
(2) | The Company received the Board of Directors' approval to repurchase shares of the Company's common stock as follows: |
Date of Approval | ||||||||
November 2019 | $5 billion |
(Dollars and shares in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
Years ended June 30, | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Total revenues* | $ | 14,589.8 | $ | 14,110.2 | $ | 13,274.2 | $ | 12,328.6 | $ | 11,632.1 | ||||||||||||||||||||||
Total costs of revenues* | $ | 8,445.1 | $ | 8,021.6 | $ | 7,757.4 | $ | 7,201.1 | $ | 6,840.4 | ||||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 3,182.6 | $ | 3,005.6 | $ | 2,282.6 | $ | 2,616.9 | $ | 2,234.7 | ||||||||||||||||||||||
Net earnings from continuing operations | $ | 2,466.5 | $ | 2,292.8 | $ | 1,884.9 | $ | 1,787.8 | $ | 1,493.4 | ||||||||||||||||||||||
Basic earnings per share from continuing operations | $ | 5.73 | $ | 5.27 | $ | 4.28 | $ | 3.99 | $ | 3.27 | ||||||||||||||||||||||
Diluted earnings per share from continuing operations | $ | 5.70 | $ | 5.24 | $ | 4.25 | $ | 3.97 | $ | 3.25 | ||||||||||||||||||||||
Basic weighted average shares outstanding | 430.8 | 435.0 | 440.6 | 447.8 | 457.0 | |||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 432.7 | 437.6 | 443.3 | 450.3 | 459.1 | |||||||||||||||||||||||||||
Cash dividends declared per share | $ | 3.52 | $ | 3.06 | $ | 2.52 | $ | 2.24 | $ | 2.08 | ||||||||||||||||||||||
At year end: | ||||||||||||||||||||||||||||||||
Cash, cash equivalents and marketable securities of continuing operations | $ | 1,922.1 | $ | 2,221.1 | $ | 2,180.5 | $ | 2,791.2 | $ | 3,222.4 | ||||||||||||||||||||||
Total assets | $ | 39,165.5 | $ | 41,887.7 | $ | 38,849.1 | $ | 38,886.8 | $ | 43,670.0 | ||||||||||||||||||||||
Obligations under reverse repurchase agreements | $ | 13.6 | $ | 262.0 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Long-term debt | $ | 1,002.8 | $ | 2,002.2 | $ | 2,002.4 | $ | 2,002.4 | $ | 2,007.7 | ||||||||||||||||||||||
Stockholders’ equity | $ | 5,752.2 | $ | 5,399.9 | $ | 4,735.9 | $ | 4,984.1 | $ | 4,481.6 |
Growth: | á | 3% | ||||||
Organic constant currency: | á | 4% |
Years Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 |
%
Change |
|||||||||||||||||||||||||||||||||||||||||||||||||||
Costs of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | $ | 7,404.1 | $ | 7,080.9 | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Systems development and programming costs | 674.1 | 636.3 | 6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 366.9 | 304.4 | 21 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total costs of revenues | 8,445.1 | 8,021.6 | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 3,003.0 | 3,064.2 | (2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 107.1 | 129.9 | n/m | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | $ | 11,555.2 | $ | 11,215.7 | 3 | % |
(In millions) | ||||||||||||||||||||
Years ended June 30, | 2020 | 2019 | $ Change | |||||||||||||||||
Interest income on corporate funds | $ | (84.5) | $ | (97.6) | $ | (13.1) | ||||||||||||||
Realized (gains) / losses on available-for-sale securities, net | (12.9) | 0.9 | 13.8 | |||||||||||||||||
Impairment of assets | 29.9 | 12.1 | (17.8) | |||||||||||||||||
Gain on sale of assets | (5.8) | (4.1) | 1.7 | |||||||||||||||||
Gain on sale of investment | (0.2) | (15.7) | (15.5) | |||||||||||||||||
Non-service components of pension (income)/expense, net | (74.5) | (6.7) | 67.8 | |||||||||||||||||
Other income, net | $ | (148.0) | $ | (111.1) | $ | 36.9 |
Growth: | á | 6% | á | 50bps | ||||||||||
Growth: | á | 6% | á | 60bps | ||||||||||
Growth: | á | 8% | á | 9% | ||||||||||
Growth: | á | 7% | á | 9% | ||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended
June 30, |
% Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | As Reported | Organic Constant Currency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employer Services | $ | 10,086.6 | $ | 9,942.8 | 1 | % | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PEO Services | 4,511.5 | 4,177.7 | 8 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (8.3) | (10.3) | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 14,589.8 | $ | 14,110.2 | 3 | % | 4 | % |
Earnings before Income Taxes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended
June 30, |
% Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | As Reported | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employer Services | $ | 3,063.0 | $ | 2,960.9 | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PEO Services | 605.5 | 616.2 | (2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (485.9) | (571.5) | n/m | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 3,182.6 | $ | 3,005.6 | 6 | % |
Growth: | á | 60bps |
PEO Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PEO Services' revenues | $ | 4,511.5 | $ | 4,177.7 | $ | 333.8 | 8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: PEO zero-margin benefits pass-throughs | 2,907.7 | 2,647.5 | 260.2 | 10 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PEO Services' revenues excluding zero-margin benefits pass-throughs | $ | 1,603.8 | $ | 1,530.2 | $ | 73.6 | 5 | % |
Growth: | â | 130bps |
Adjusted Financial Measures | U.S. GAAP Measures | |||||||
Adjusted EBIT | Net earnings | |||||||
Adjusted provision for income taxes | Provision for income taxes | |||||||
Adjusted net earnings | Net earnings | |||||||
Adjusted diluted earnings per share | Diluted earnings per share | |||||||
Adjusted effective tax rate | Effective tax rate | |||||||
Organic constant currency | Revenues | |||||||
Years Ended
June 30, |
% Change | |||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | As Reported | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 2,466.5 | $ | 2,292.8 | 8 | % | ||||||||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 716.1 | 712.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
All other interest expense (a) | 59.2 | 59.9 | ||||||||||||||||||||||||||||||||||||||||||||||||
All other interest income (a) | (20.5) | (32.4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of assets | (0.2) | (15.7) | ||||||||||||||||||||||||||||||||||||||||||||||||
Transformation initiatives (b) | 77.4 | 138.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
COVID-19 related charges (c) | 25.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlement (d) | 25.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT | $ | 3,348.9 | $ | 3,155.7 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT Margin | 23.0 | % | 22.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | 716.1 | $ | 712.8 | — | % | ||||||||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of assets (e) | (0.1) | (3.9) | ||||||||||||||||||||||||||||||||||||||||||||||||
Transformation initiatives (e) | 19.2 | 34.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
COVID-19 related charges (e) | 6.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlement (e) | 6.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax Cuts and Jobs Act (f) | — | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted provision for income taxes | $ | 747.7 | $ | 743.9 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Adjusted effective tax rate (g) | 22.6 | % | 23.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 2,466.5 | $ | 2,292.8 | 8 | % | ||||||||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of assets | (0.2) | (15.7) | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision on gain on sale of assets (e) | 0.1 | 3.9 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transformation initiatives (b) | 77.4 | 138.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit for transformation initiatives (e) | (19.2) | (34.5) | ||||||||||||||||||||||||||||||||||||||||||||||||
COVID-19 related charges (c) | 25.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit for COVID-19 related charges (e) | (6.3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlement (d) | 25.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit for legal settlement (e) | (6.2) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax Cuts and Jobs Act (f) | — | (0.5) | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net earnings | $ | 2,562.5 | $ | 2,384.3 | 7 | % | ||||||||||||||||||||||||||||||||||||||||||||
Diluted EPS | $ | 5.70 | $ | 5.24 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of assets (e) | — | (0.03) | ||||||||||||||||||||||||||||||||||||||||||||||||
Transformation initiatives (b) (e) | 0.13 | 0.24 | ||||||||||||||||||||||||||||||||||||||||||||||||
COVID-19 related charges (c) (e) | 0.04 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlement (d) (e) | 0.04 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax Cuts and Jobs Act (f) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted diluted EPS | $ | 5.92 | $ | 5.45 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||
Consolidated revenue growth as reported | 3 | % | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Impact of acquisitions
|
— | % | ||||||||||||||||||||||||
Impact of foreign currency
|
1 | % | ||||||||||||||||||||||||
Consolidated revenue growth, organic constant currency | 4 | % | ||||||||||||||||||||||||
Employer Services revenue growth as reported | 1 | % | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Impact of acquisitions
|
— | % | ||||||||||||||||||||||||
Impact of foreign currency
|
1 | % | ||||||||||||||||||||||||
Employer Services revenue growth, organic constant currency | 2 | % |
Years ended June 30, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | ||||||||||||||||||||||||||||||||||||
Cash provided by (used in): | ||||||||||||||||||||||||||||||||||||||
Operating activities | $ | 3,026.2 | $ | 2,688.3 | $ | 337.9 | ||||||||||||||||||||||||||||||||
Investing activities | 3,156.3 | (2,197.7) | 5,354.0 | |||||||||||||||||||||||||||||||||||
Financing activities | (5,890.6) | (207.7) | (5,682.9) | |||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (34.5) | (28.8) | (5.7) | |||||||||||||||||||||||||||||||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 257.4 | $ | 254.1 | $ | 3.3 |
Years ended June 30, | 2020 | 2019 | |||||||||||||||||||||
Average daily borrowings (in billions) | $ | 2.7 | $ | 2.8 | |||||||||||||||||||
Weighted average interest rates | 1.6 | % | 2.2 | % | |||||||||||||||||||
Weighted average maturity (approximately in days) | 2 days | 2 days |
Years ended June 30, | 2020 | 2019 | |||||||||||||||||||||
Average outstanding balances | $ | 263.4 | $ | 316.7 | |||||||||||||||||||
Weighted average interest rates | 1.6 | % | 1.9 | % |
(In millions) | Payments due by period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligations |
Less than
1 year |
1-3
years |
3-5
years |
More than
5 years |
Unknown | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations (1) | $ | 1,046.8 | $ | 69.4 | $ | 69.6 | $ | 1,019.8 | $ | — | $ | 2,205.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges (2) | $ | 40.3 | $ | — | $ | — | $ | — | $ | — | $ | 40.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease Obligations (3) | $ | 105.5 | $ | 168.8 | $ | 100.5 | $ | 96.8 | $ | — | $ | 471.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase Obligations (4) | $ | 415.6 | $ | 165.3 | $ | 32.1 | $ | 0.2 | $ | — | $ | 613.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations Related to Unrecognized
Tax Benefits (5) |
$ | 3.7 | $ | — | $ | — | $ | — | $ | 58.6 | $ | 62.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Liabilities Reflected
on our Consolidated Balance Sheets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Benefits (6) | $ | 34.0 | $ | 63.3 | $ | 59.2 | $ | 308.4 | $ | 27.7 | $ | 492.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,645.9 | $ | 466.8 | $ | 261.4 | $ | 1,425.2 | $ | 86.3 | $ | 3,885.6 |
Years ended June 30, | 2020 | 2019 | ||||||||||||||||||
Average investment balances at cost: | ||||||||||||||||||||
Corporate investments | $ | 4,560.3 | $ | 4,817.3 | ||||||||||||||||
Funds held for clients | 25,990.3 | 25,458.5 | ||||||||||||||||||
Total | $ | 30,550.6 | $ | 30,275.8 | ||||||||||||||||
Average interest rates earned exclusive of realized
(gains)/losses on: |
||||||||||||||||||||
Corporate investments | 1.9 | % | 2.0 | % | ||||||||||||||||
Funds held for clients | 2.1 | % | 2.2 | % | ||||||||||||||||
Total | 2.1 | % | 2.2 | % | ||||||||||||||||
Realized gains on available-for-sale securities | $ | (50.5) | $ | (1.8) | ||||||||||||||||
Realized losses on available-for-sale securities | 37.6 | 2.7 | ||||||||||||||||||
Net realized (gains)/losses on available-for-sale securities | $ | (12.9) | $ | 0.9 |
As of June 30: | ||||||||||||||||||||
Net unrealized pre-tax gains on available-for-sale securities | $ | 876.8 | $ | 287.5 | ||||||||||||||||
Total available-for-sale securities at fair value | $ | 21,576.6 | $ | 24,859.1 |
/s/ Deloitte & Touche LLP |
Years ended June 30, | 2020 | 2019 | 2018 | |||||||||||||||||
REVENUES: | ||||||||||||||||||||
Revenues, other than interest on funds held
for clients and PEO revenues |
$ | 9,538.1 | $ | 9,375.8 | $ | 8,983.4 | ||||||||||||||
Interest on funds held for clients | 545.2 | 561.9 | 466.5 | |||||||||||||||||
PEO revenues (A) | 4,506.5 | 4,172.5 | 3,824.3 | |||||||||||||||||
TOTAL REVENUES | 14,589.8 | 14,110.2 | 13,274.2 | |||||||||||||||||
EXPENSES: | ||||||||||||||||||||
Costs of revenues: | ||||||||||||||||||||
Operating expenses | 7,404.1 | 7,080.9 | 6,847.5 | |||||||||||||||||
Systems development and programming costs | 674.1 | 636.3 | 635.4 | |||||||||||||||||
Depreciation and amortization | 366.9 | 304.4 | 274.5 | |||||||||||||||||
TOTAL COSTS OF REVENUES | 8,445.1 | 8,021.6 | 7,757.4 | |||||||||||||||||
Selling, general, and administrative expenses | 3,003.0 | 3,064.2 | 2,959.4 | |||||||||||||||||
Interest expense | 107.1 | 129.9 | 102.7 | |||||||||||||||||
TOTAL EXPENSES | 11,555.2 | 11,215.7 | 10,819.5 | |||||||||||||||||
Other (income)/expense, net | (148.0) | (111.1) | 172.1 | |||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 3,182.6 | 3,005.6 | 2,282.6 | |||||||||||||||||
Provision for income taxes | 716.1 | 712.8 | 397.7 | |||||||||||||||||
NET EARNINGS | $ | 2,466.5 | $ | 2,292.8 | $ | 1,884.9 | ||||||||||||||
BASIC EARNINGS PER SHARE | $ | 5.73 | $ | 5.27 | $ | 4.28 | ||||||||||||||
DILUTED EARNINGS PER SHARE | $ | 5.70 | $ | 5.24 | $ | 4.25 | ||||||||||||||
Basic weighted average shares outstanding | 430.8 | 435.0 | 440.6 | |||||||||||||||||
Diluted weighted average shares outstanding | 432.7 | 437.6 | 443.3 | |||||||||||||||||
Years ended June 30, | 2020 | 2019 | 2018 | |||||||||||||||||
Net earnings | $ | 2,466.5 | $ | 2,292.8 | $ | 1,884.9 | ||||||||||||||
Other comprehensive income/loss: | ||||||||||||||||||||
Currency translation adjustments | (53.0) | (42.2) | 7.8 | |||||||||||||||||
Unrealized net gains/(losses) on available-for-sale securities | 602.2 | 642.4 | (460.7) | |||||||||||||||||
Tax effect | (136.4) | (144.4) | 123.4 | |||||||||||||||||
Reclassification of net losses/(gains) on available-for-sale securities to net earnings | (12.9) | 0.9 | 2.7 | |||||||||||||||||
Tax effect | 2.9 | (0.3) | (0.6) | |||||||||||||||||
Unrealized loss on cash flow hedging activities | (40.3) | — | — | |||||||||||||||||
Tax effect | 10.0 | — | — | |||||||||||||||||
Pension net (losses)/gains arising during the year | (160.8) | (84.7) | 87.0 | |||||||||||||||||
Tax effect | 39.5 | 20.0 | (18.7) | |||||||||||||||||
Reclassification of pension liability adjustment to net earnings | (11.8) | 40.3 | 9.3 | |||||||||||||||||
Tax effect | 3.1 | (9.5) | (4.5) | |||||||||||||||||
Other comprehensive income/(loss), net of tax | 242.5 | 422.5 | (254.3) | |||||||||||||||||
Comprehensive income | $ | 2,709.0 | $ | 2,715.3 | $ | 1,630.6 |
June 30, | 2020 | 2019 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 1,908.5 | $ | 1,949.2 | ||||||||||
Short-term marketable securities | — | 10.5 | ||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $92.5 and $54.9, respectively
|
2,441.3 | 2,439.3 | ||||||||||||
Other current assets | 506.2 | 509.1 | ||||||||||||
Total current assets before funds held for clients | 4,856.0 | 4,908.1 | ||||||||||||
Funds held for clients | 26,708.1 | 29,434.2 | ||||||||||||
Total current assets | 31,564.1 | 34,342.3 | ||||||||||||
Long-term receivables, net of allowance for doubtful accounts of $0.5 and $0.4, respectively
|
18.6 | 23.8 | ||||||||||||
Property, plant and equipment, net | 703.9 | 764.2 | ||||||||||||
Operating lease right-of-use asset | 493.7 | — | ||||||||||||
Deferred contract costs | 2,401.6 | 2,428.5 | ||||||||||||
Other assets | 458.4 | 934.4 | ||||||||||||
Goodwill | 2,309.4 | 2,323.0 | ||||||||||||
Intangible assets, net | 1,215.8 | 1,071.5 | ||||||||||||
Total assets | $ | 39,165.5 | $ | 41,887.7 | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 102.0 | $ | 125.5 | ||||||||||
Accrued expenses and other current liabilities | 1,980.7 | 1,759.0 | ||||||||||||
Accrued payroll and payroll-related expenses | 557.0 | 721.1 | ||||||||||||
Dividends payable | 387.3 | 340.1 | ||||||||||||
Short-term deferred revenues | 212.5 | 220.7 | ||||||||||||
Obligations under reverse repurchase agreements (A) | 13.6 | 262.0 | ||||||||||||
Short-term debt | 1,001.8 | — | ||||||||||||
Income taxes payable | 40.1 | 54.8 | ||||||||||||
Total current liabilities before client funds obligations | 4,295.0 | 3,483.2 | ||||||||||||
Client funds obligations | 25,831.6 | 29,144.5 | ||||||||||||
Total current liabilities | 30,126.6 | 32,627.7 | ||||||||||||
Long-term debt | 1,002.8 | 2,002.2 | ||||||||||||
Operating lease liabilities | 344.4 | — | ||||||||||||
Other liabilities | 837.0 | 798.7 | ||||||||||||
Deferred income taxes | 731.9 | 659.9 | ||||||||||||
Long-term deferred revenues | 370.6 | 399.3 | ||||||||||||
Total liabilities | 33,413.3 | 36,487.8 | ||||||||||||
Commitments and Contingencies (Note 12) | ||||||||||||||
Stockholders' equity: | ||||||||||||||
Preferred stock, $1.00 par value: Authorized, 0.3 shares; issued, none
|
— | — | ||||||||||||
Common stock, $0.10 par value: authorized,1,000.0 shares; issued, 638.7 shares at June 30, 2020 and June 30, 2019;
outstanding, 429.9 and 434.2 shares at June 30, 2020 and June 30, 2019, respectively
|
63.9 | 63.9 | ||||||||||||
Capital in excess of par value | 1,333.8 | 1,183.2 | ||||||||||||
Retained earnings | 18,436.3 | 17,500.6 | ||||||||||||
Treasury stock - at cost: 208.9 and 204.5 shares at June 30, 2020 and June 30, 2019, respectively
|
(14,067.0) | (13,090.5) | ||||||||||||
Accumulated other comprehensive loss | (14.8) | (257.3) | ||||||||||||
Total stockholders’ equity | 5,752.2 | 5,399.9 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 39,165.5 | $ | 41,887.7 |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income/(Loss) | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2017 | 638.7 | $ | 63.9 | $ | 867.8 | $ | 15,739.4 | $ | (11,303.7) | $ | (383.2) | |||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 1,884.9 | — | — | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (254.3) | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 145.3 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuances relating to stock compensation plans | — | — | 1.7 | — | 144.5 | — | ||||||||||||||||||||||||||||||||||||||
Treasury stock acquired (8.5 shares repurchased)
|
— | — | — | — | (1,050.4) | — | ||||||||||||||||||||||||||||||||||||||
Other (A) | — | — | — | 42.3 | — | (42.3) | ||||||||||||||||||||||||||||||||||||||
Dividends ($2.52 per share)
|
— | — | — | (1,120.0) | — | — | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | 638.7 | $ | 63.9 | $ | 1,014.8 | $ | 16,546.6 | $ | (12,209.6) | $ | (679.8) | |||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 2,292.8 | — | — | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 422.5 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 144.2 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuances relating to stock compensation plans | — | — | 24.2 | — | 124.1 | — | ||||||||||||||||||||||||||||||||||||||
Treasury stock acquired (6.5 shares repurchased)
|
— | — | — | — | (1,005.0) | — | ||||||||||||||||||||||||||||||||||||||
Dividends ($3.06 per share)
|
— | — | — | (1,338.8) | — | — | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 638.7 | $ | 63.9 | $ | 1,183.2 | $ | 17,500.6 | $ | (13,090.5) | $ | (257.3) | |||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 2,466.5 | — | — | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 242.5 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 117.8 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuances relating to stock compensation plans | — | — | 32.8 | — | 112.9 | — | ||||||||||||||||||||||||||||||||||||||
Treasury stock acquired (6.2 shares repurchased)
|
— | — | — | — | (1,089.4) | — | ||||||||||||||||||||||||||||||||||||||
Dividends ($3.52 per share)
|
— | — | — | (1,523.9) | — | — | ||||||||||||||||||||||||||||||||||||||
Other | — | — | — | (6.9) | — | — | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 638.7 | $ | 63.9 | $ | 1,333.8 | $ | 18,436.3 | $ | (14,067.0) | $ | (14.8) |
Years ended June 30, | 2020 |
2019
|
2018
|
|||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||
Net earnings | $ | 2,466.5 | $ | 2,292.8 | $ | 1,884.9 | ||||||||||||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 480.0 | 409.0 | 377.6 | |||||||||||||||||
Amortization of deferred contract costs | 915.0 | 874.0 | 837.4 | |||||||||||||||||
Deferred income taxes | 26.0 | 9.3 | (152.0) | |||||||||||||||||
Stock-based compensation expense | 130.8 | 167.3 | 175.4 | |||||||||||||||||
Net pension (income)/expense | (11.6) | 55.4 | 330.4 | |||||||||||||||||
Net amortization of premiums and accretion of discounts on available-for-sale securities | 50.2 | 50.1 | 71.5 | |||||||||||||||||
Impairment of assets | 29.9 | 12.1 | — | |||||||||||||||||
Gain on sale of assets | (6.0) | (19.8) | (0.7) | |||||||||||||||||
Other | 65.4 | 43.9 | 32.2 | |||||||||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses: | ||||||||||||||||||||
Increase in accounts receivable | (113.8) | (473.9) | (291.8) | |||||||||||||||||
Increase in other assets | (910.4) | (987.2) | (858.3) | |||||||||||||||||
Decrease in accounts payable | (18.3) | (10.7) | (1.9) | |||||||||||||||||
(Decrease)/Increase in accrued expenses and other liabilities | (77.5) | 266.0 | 110.5 | |||||||||||||||||
Net cash flows provided by operating activities | 3,026.2 | 2,688.3 | 2,515.2 | |||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Purchases of corporate and client funds marketable securities | (3,905.1) | (4,422.6) | (4,876.8) | |||||||||||||||||
Proceeds from the sales and maturities of corporate and client funds marketable securities | 7,648.4 | 2,909.0 | 3,455.0 | |||||||||||||||||
Capital expenditures | (172.7) | (162.0) | (206.1) | |||||||||||||||||
Additions to intangibles | (443.7) | (404.5) | (264.7) | |||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (125.5) | (612.4) | |||||||||||||||||
Proceeds from the sale of property, plant, and equipment and other assets | 29.4 | 7.9 | 0.4 | |||||||||||||||||
Net cash flows provided by/(used in) investing activities | 3,156.3 | (2,197.7) | (2,504.6) | |||||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Net (decrease)/increase in client funds obligations | (3,213.2) | 1,696.0 | 340.4 | |||||||||||||||||
Payments of debt | (2.2) | (2.1) | (7.3) | |||||||||||||||||
Repurchases of common stock | (1,006.3) | (937.7) | (989.3) | |||||||||||||||||
Net proceeds from stock purchase plan and stock-based compensation plans | 50.0 | 72.9 | 69.3 | |||||||||||||||||
Dividends paid | (1,470.5) | (1,293.0) | (1,063.7) | |||||||||||||||||
Net (payments)/proceeds related to reverse repurchase agreements | (248.4) | 262.0 | — | |||||||||||||||||
Other | — | (5.8) | (5.3) | |||||||||||||||||
Net cash flows used in financing activities | (5,890.6) | (207.7) | (1,655.9) | |||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (34.5) | (28.8) | 5.8 | |||||||||||||||||
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents | 257.4 | 254.1 | (1,639.5) | |||||||||||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year | 6,796.2 | 6,542.1 | 8,181.6 | |||||||||||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | $ | 7,053.6 | $ | 6,796.2 | $ | 6,542.1 | ||||||||||||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,908.5 | $ | 1,949.2 | $ | 2,170.0 | ||||||||||||||
Restricted cash and restricted cash equivalents included in funds held for clients (A) | 5,145.1 | 4,847.0 | 4,372.1 | |||||||||||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 7,053.6 | $ | 6,796.2 | $ | 6,542.1 | ||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash paid for interest | $ | 104.8 | $ | 127.5 | $ | 100.5 | ||||||||||||||
Cash paid for income taxes, net of income tax refunds | $ | 677.1 | $ | 633.8 | $ | 529.7 |
Year Ended | |||||||||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||||
As reported | Revision | As revised | |||||||||||||||||||||||||||
PEO revenues | $ | 4,237.5 | (65.0) | $ | 4,172.5 | ||||||||||||||||||||||||
TOTAL REVENUES | 14,175.2 | (65.0) | 14,110.2 | ||||||||||||||||||||||||||
Operating expenses | 7,145.9 | (65.0) | 7,080.9 | ||||||||||||||||||||||||||
Total Expenses | 11,280.7 | (65.0) | 11,215.7 | ||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 3,005.6 | — | 3,005.6 | ||||||||||||||||||||||||||
Provision for income taxes | 712.8 | — | 712.8 | ||||||||||||||||||||||||||
NET EARNINGS | $ | 2,292.8 | — | $ | 2,292.8 | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
June 30, 2018 | |||||||||||||||||||||||||||||
As reported | Revision | As revised | |||||||||||||||||||||||||||
PEO revenues | $ | 3,877.8 | (53.5) | $ | 3,824.3 | ||||||||||||||||||||||||
TOTAL REVENUES | 13,327.7 | (53.5) | 13,274.2 | ||||||||||||||||||||||||||
Operating expenses | 6,901.0 | (53.5) | 6,847.5 | ||||||||||||||||||||||||||
Total Expenses | 10,873.0 | (53.5) | 10,819.5 | ||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 2,282.6 | — | 2,282.6 | ||||||||||||||||||||||||||
Provision for income taxes | 397.7 | — | 397.7 | ||||||||||||||||||||||||||
NET EARNINGS | $ | 1,884.9 | — | $ | 1,884.9 | ||||||||||||||||||||||||
Data processing equipment | 5 to 10 years | ||||
Buildings | 20 to 40 years | ||||
Furniture and fixtures | 4 to 7 years |
Years ended June 30, | Basic | Effect of Employee Stock Option Shares |
Effect of
Employee Restricted Stock Shares |
Diluted | ||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||
Net earnings | $ | 2,466.5 | $ | 2,466.5 | ||||||||||||||||||||||
Weighted average shares (in millions) | 430.8 | 0.9 | 1.0 | 432.7 | ||||||||||||||||||||||
EPS | $ | 5.73 | $ | 5.70 | ||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||
Net earnings | $ | 2,292.8 | $ | 2,292.8 | ||||||||||||||||||||||
Weighted average shares (in millions) | 435.0 | 1.0 | 1.6 | 437.6 | ||||||||||||||||||||||
EPS | $ | 5.27 | $ | 5.24 | ||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||
Net earnings | $ | 1,884.9 | $ | 1,884.9 | ||||||||||||||||||||||
Weighted average shares (in millions) | 440.6 | 1.1 | 1.6 | 443.3 | ||||||||||||||||||||||
EPS | $ | 4.28 | $ | 4.25 |
Standard | Description | Effective Date | Effect on Financial Statements or Other Significant Matters | ||||||||
ASU 2020-04 Reference Rate Reform
(Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
This update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate (LIBOR) reform on financial reporting. |
March 12, 2020
(Fiscal 2020) through December 31, 2022 (Fiscal 2023) |
The Company is assessing the effects of the Reference Rate Reform. The Company has not yet determined the impact of this ASU on its consolidated results of operations, financial condition, or cash flows. | ||||||||
ASU 2018-14 Compensation-Retirement Benefits-Defined Benefit Plans | This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. |
July 1, 2021
(Fiscal 2022) |
The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.
|
||||||||
ASU 2018-13 Fair Value Measurement | This update modifies the disclosure requirements on fair value measurements. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. |
July 1, 2020
(Fiscal 2021) |
The adoption of this guidance will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.
|
ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | This update introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. In addition, this update modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. In November 2019, the FASB issued Accounting Standard Update 2019-11 Codification Improvements to Topic 326, Financial-Credit Losses which provides clarification and eliminates inconsistencies to amendments included in Update 2016-13. |
July 1, 2020
(Fiscal 2021) |
Upon adoption of the CECL standard, in fiscal 2021, the Company intends to book an immaterial cumulative-effect adjustment to retained earnings. The most notable impact relates to the newly implemented processes around the assessment of the adequacy of our allowance for doubtful accounts on accounts receivable. The adoption of this guidance will not have a material impact on the Company's consolidated results of operations, financial condition, or cash flows. | ||||||||
Years Ended | |||||||||||||||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||||||||||||||
Types of Revenues | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
HCM | $ | 6,540.9 | $ | 6,441.8 | $ | 6,204.9 | |||||||||||||||||||||||||||||||||||
HRO, excluding PEO zero-margin benefits pass-throughs | 2,543.2 | 2,444.4 | 2,261.9 | ||||||||||||||||||||||||||||||||||||||
PEO zero-margin benefits pass-throughs | 2,907.7 | 2,647.5 | 2,409.6 | ||||||||||||||||||||||||||||||||||||||
Global | 2,052.8 | 2,014.6 | 1,931.3 | ||||||||||||||||||||||||||||||||||||||
Interest on funds held for clients | 545.2 | 561.9 | 466.5 | ||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 14,589.8 | $ | 14,110.2 | $ | 13,274.2 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||||||||||
HCM | $ | 6,546.4 | $ | — | $ | (5.5) | $ | 6,540.9 | |||||||||||||||
HRO, excluding PEO zero-margin benefits pass-throughs | 947.2 | 1,598.8 | (2.8) | 2,543.2 | |||||||||||||||||||
PEO zero-margin benefits pass-throughs | — | 2,907.7 | — | 2,907.7 | |||||||||||||||||||
Global | 2,052.8 | — | — | 2,052.8 | |||||||||||||||||||
Interest on funds held for clients | 540.2 | 5.0 | — | 545.2 | |||||||||||||||||||
Total Segment Revenues | $ | 10,086.6 | $ | 4,511.5 | $ | (8.3) | $ | 14,589.8 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||||||||||
HCM | $ | 6,447.5 | $ | — | $ | (5.7) | $ | 6,441.8 | |||||||||||||||
HRO, excluding PEO zero-margin benefits pass-throughs | 924.0 | 1,525.0 | (4.6) | 2,444.4 | |||||||||||||||||||
PEO zero-margin benefits pass-throughs | — | 2,647.5 | — | 2,647.5 | |||||||||||||||||||
Global | 2,014.6 | — | — | 2,014.6 | |||||||||||||||||||
Interest on funds held for clients | 556.7 | 5.2 | — | 561.9 | |||||||||||||||||||
Total Segment Revenues | $ | 9,942.8 | $ | 4,177.7 | $ | (10.3) | $ | 14,110.2 |
Types of Revenues | Employer Services | PEO | Other | Total | |||||||||||||||||||
HCM | $ | 6,210.2 | $ | — | $ | (5.3) | $ | 6,204.9 | |||||||||||||||
HRO, excluding PEO zero-margin benefits pass-throughs | 851.3 | 1,414.7 | (4.1) | 2,261.9 | |||||||||||||||||||
PEO zero-margin benefits pass-throughs | — | 2,409.6 | — | 2,409.6 | |||||||||||||||||||
Global | 1,931.3 | — | — | 1,931.3 | |||||||||||||||||||
Interest on funds held for clients | 462.0 | 4.5 | — | 466.5 | |||||||||||||||||||
Total Segment Revenues | $ | 9,454.8 | $ | 3,828.8 | $ | (9.4) | $ | 13,274.2 |
Contract Liability | |||||
Contract liability, July 1, 2019 | $ | 563.4 | |||
Recognition of revenue included in beginning of year contract liability | (168.5) | ||||
Contract liability, net of revenue recognized on contracts during the period | 134.2 | ||||
Currency adjustments | (6.4) | ||||
Contract liability, June 30, 2020 | $ | 522.7 |
June 30, | 2020 | 2019 | ||||||||||||
Deferred costs to obtain a contract | $ | 977.8 | $ | 992.3 | ||||||||||
Deferred costs to fulfill a contract | 1,423.8 | 1,436.2 | ||||||||||||
Total deferred contract costs (1) | $ | 2,401.6 | $ | 2,428.5 |
Years ended June 30, | 2020 | 2019 | 2018 | |||||||||||||||||
Interest income on corporate funds | $ | (84.5) | $ | (97.6) | $ | (83.5) | ||||||||||||||
Realized (gains) / losses on available-for-sale securities, net | (12.9) | 0.9 | 2.5 | |||||||||||||||||
Impairment of assets | 29.9 | 12.1 | — | |||||||||||||||||
Gain on sale of assets | (5.8) | (4.1) | (0.7) | |||||||||||||||||
Gain on sale of investment | (0.2) | (15.7) | — | |||||||||||||||||
Non-service components of pension (income)/expense, net (see Note 10) | (74.5) | (6.7) | 253.8 | |||||||||||||||||
Other (income)/expense, net | $ | (148.0) | $ | (111.1) | $ | 172.1 |
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair Value (A) | ||||||||||||||||||||||||||||||||||||||
Type of issue: | |||||||||||||||||||||||||||||||||||||||||
Money market securities, cash and other cash equivalents | $ | 7,053.6 | $ | — | $ | — | $ | 7,053.6 | |||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 9,188.7 | 473.4 | — | 9,662.1 | |||||||||||||||||||||||||||||||||||||
Asset-backed securities | 3,274.6 | 96.0 | (0.5) | 3,370.1 | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities
|
3,580.6 | 120.8 | — | 3,701.4 | |||||||||||||||||||||||||||||||||||||
U.S. government agency securities | 1,128.2 | 35.6 | — | 1,163.8 | |||||||||||||||||||||||||||||||||||||
Canadian government obligations and
Canadian government agency obligations
|
1,018.7 | 23.1 | — | 1,041.8 | |||||||||||||||||||||||||||||||||||||
Commercial Mortgage-Backed Securities | 814.3 | 53.9 | — | 868.2 | |||||||||||||||||||||||||||||||||||||
Canadian provincial bonds | 676.6 | 33.6 | — | 710.2 | |||||||||||||||||||||||||||||||||||||
Other securities | 1,018.1 | 41.1 | (0.2) | 1,059.0 | |||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 20,699.8 | 877.5 | (0.7) | 21,576.6 | |||||||||||||||||||||||||||||||||||||
Total corporate investments and funds held for clients | $ | 27,753.4 | $ | 877.5 | $ | (0.7) | $ | 28,630.2 |
June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair Value (B) | ||||||||||||||||||||||||||||||||||||||
Type of issue: | |||||||||||||||||||||||||||||||||||||||||
Money market securities, cash and other cash equivalents | $ | 6,796.2 | $ | — | $ | — | $ | 6,796.2 | |||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 10,691.8 | 182.8 | (6.7) | 10,867.9 | |||||||||||||||||||||||||||||||||||||
Asset-backed securities | 4,658.3 | 37.8 | (5.4) | 4,690.7 | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities
|
2,933.0 | 23.8 | (8.0) | 2,948.8 | |||||||||||||||||||||||||||||||||||||
U.S. government agency securities | 2,612.0 | 17.7 | (5.8) | 2,623.9 | |||||||||||||||||||||||||||||||||||||
Canadian government obligations and
Canadian government agency obligations
|
1,164.1 | 7.0 | (6.0) | 1,165.1 | |||||||||||||||||||||||||||||||||||||
Canadian provincial bonds | 800.2 | 14.5 | (0.5) | 814.2 | |||||||||||||||||||||||||||||||||||||
Municipal bonds | 596.1 | 16.4 | (0.1) | 612.4 | |||||||||||||||||||||||||||||||||||||
Other securities | 1,116.1 | 20.6 | (0.6) | 1,136.1 | |||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 24,571.6 | 320.6 | (33.1) | 24,859.1 | |||||||||||||||||||||||||||||||||||||
Total corporate investments and funds held for clients | $ | 31,367.8 | $ | 320.6 | $ | (33.1) | $ | 31,655.3 |
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities in unrealized loss position less than
12 months |
Securities in unrealized loss position greater than 12 months | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized
Losses |
Fair Market
Value |
Gross Unrealized
Losses |
Fair Market
Value |
Gross
Unrealized Losses |
Fair
Market Value |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | (0.5) | 43.9 | — | — | (0.5) | 43.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities
|
— | 2.0 | — | — | — | 2.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agency securities
|
— | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canadian government obligations and
Canadian government agency obligations
|
— | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage-Backed Securities | — | — | — | 1.5 | — | 1.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canadian provincial bonds | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other securities | (0.2) | 17.1 | — | — | (0.2) | 17.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | (0.7) | $ | 63.0 | $ | — | $ | 1.5 | $ | (0.7) | $ | 64.5 |
June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities in unrealized loss position less than
12 months |
Securities in unrealized loss position greater than 12 months | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized
Losses |
Fair Market
Value |
Gross Unrealized
Losses |
Fair Market
Value |
Gross
Unrealized Losses |
Fair
Market Value |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | (0.6) | $ | 151.9 | $ | (6.1) | $ | 2,055.6 | $ | (6.7) | $ | 2,207.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | (0.2) | 171.9 | (5.2) | 2,083.5 | (5.4) | 2,255.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities
|
— | 1.8 | (8.0) | 1,159.4 | (8.0) | 1,161.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agency securities
|
— | — | (5.8) | 1,671.4 | (5.8) | 1,671.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canadian government obligations and
Canadian government agency obligations
|
(6.0) | 662.7 | — | 1.1 | (6.0) | 663.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canadian provincial bonds | (0.3) | 81.5 | (0.2) | 50.1 | (0.5) | 131.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | — | 1.5 | (0.1) | 23.3 | (0.1) | 24.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other securities | (0.1) | 36.4 | (0.5) | 148.1 | (0.6) | 184.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | (7.2) | $ | 1,107.7 | $ | (25.9) | $ | 7,192.5 | $ | (33.1) | $ | 8,300.2 |
June 30, | 2020 | 2019 | ||||||||||||
Corporate investments: | ||||||||||||||
Cash and cash equivalents | $ | 1,908.5 | $ | 1,949.2 | ||||||||||
Short-term marketable securities | — | 10.5 | ||||||||||||
Long-term marketable securities (a) | 13.6 | 261.4 | ||||||||||||
Total corporate investments | $ | 1,922.1 | $ | 2,221.1 |
June 30, | 2020 | 2019 | ||||||||||||
Funds held for clients: | ||||||||||||||
Restricted cash and cash equivalents held to satisfy client funds obligations | $ | 5,145.1 | $ | 4,847.0 | ||||||||||
Restricted short-term marketable securities held to satisfy client funds obligations | 5,541.2 | 5,013.9 | ||||||||||||
Restricted long-term marketable securities held to satisfy client funds obligations | 16,021.8 | 19,573.3 | ||||||||||||
Total funds held for clients | $ | 26,708.1 | $ | 29,434.2 |
One year or less | $ | 5,541.2 | |||
One year to two years | 3,962.2 | ||||
Two years to three years | 4,761.5 | ||||
Three years to four years | 3,005.6 | ||||
After four years | 4,306.1 | ||||
Total available-for-sale securities | $ | 21,576.6 |
June 30, | 2020 | 2019 | ||||||||||||
Property, plant and equipment: | ||||||||||||||
Land and buildings | $ | 737.2 | $ | 781.2 | ||||||||||
Data processing equipment | 847.9 | 749.0 | ||||||||||||
Furniture, leaseholds and other | 643.6 | 651.6 | ||||||||||||
2,228.7 | 2,181.8 | |||||||||||||
Less: accumulated depreciation | (1,524.8) | (1,417.6) | ||||||||||||
Property, plant and equipment, net | $ | 703.9 | $ | 764.2 |
Year ended | |||||||||||
June 30, | |||||||||||
2020 | |||||||||||
Operating lease cost | $ | 163.7 | |||||||||
Short-term lease cost | 6.1 | ||||||||||
Variable lease cost | 6.7 | ||||||||||
Total operating lease cost | $ | 176.5 | |||||||||
Year ended | |||||
June 30, | |||||
2020 | |||||
Cash paid for operating lease liabilities | $ | 224.7 | |||
Operating lease ROU assets obtained in exchange for new operating lease liabilities | $ | 160.4 | |||
Weighted-average remaining lease term (in years) | 6 | ||||
Weighted-average discount rate | 2.3 | % |
Twelve months ending June 30, 2021 | $ | 105.6 | |||
Twelve months ending June 30, 2022 | 90.8 | ||||
Twelve months ending June 30, 2023 | 78.0 | ||||
Twelve months ending June 30, 2024 | 57.9 | ||||
Twelve months ending June 30, 2025 | 42.6 | ||||
Thereafter | 96.7 | ||||
Total undiscounted lease obligations | 471.6 | ||||
Less: Imputed interest | (31.7) | ||||
Net lease obligations | $ | 439.9 |
Employer
Services |
PEO
Services |
Total | |||||||||||||||||||||
Balance at June 30, 2018 | $ | 2,238.7 | $ | 4.8 | $ | 2,243.5 | |||||||||||||||||
Additions and other adjustments | 94.3 | — | 94.3 | ||||||||||||||||||||
Currency translation adjustments | (14.8) | — | (14.8) | ||||||||||||||||||||
Balance at June 30, 2019 | $ | 2,318.2 | $ | 4.8 | $ | 2,323.0 | |||||||||||||||||
Additions and other adjustments | (2.5) | — | (2.5) | ||||||||||||||||||||
Currency translation adjustments | (11.1) | — | (11.1) | ||||||||||||||||||||
Balance at June 30, 2020 | $ | 2,304.6 | $ | 4.8 | $ | 2,309.4 |
June 30, | 2020 | 2019 | ||||||||||||
Intangible assets: | ||||||||||||||
Software and software licenses | $ | 2,719.1 | $ | 2,519.3 | ||||||||||
Customer contracts and lists | 1,021.2 | 860.7 | ||||||||||||
Other intangibles | 239.2 | 237.9 | ||||||||||||
3,979.5 | 3,617.9 | |||||||||||||
Less accumulated amortization: | ||||||||||||||
Software and software licenses | (1,912.0) | (1,762.3) | ||||||||||||
Customer contracts and lists | (628.3) | (566.4) | ||||||||||||
Other intangibles | (223.4) | (217.7) | ||||||||||||
(2,763.7) | (2,546.4) | |||||||||||||
Intangible assets, net | $ | 1,215.8 | $ | 1,071.5 |
Amount | |||||
Twelve months ending June 30, 2021 | $ | 285.3 | |||
Twelve months ending June 30, 2022 | $ | 243.7 | |||
Twelve months ending June 30, 2023 | $ | 203.8 | |||
Twelve months ending June 30, 2024 | $ | 161.5 | |||
Twelve months ending June 30, 2025 | $ | 108.7 |
Years ended June 30, | 2020 | 2019 | |||||||||||||||||||||
Average daily borrowings (in billions) | $ | 2.7 | $ | 2.8 | |||||||||||||||||||
Weighted average interest rates | 1.6 | % | 2.2 | % | |||||||||||||||||||
Weighted average maturity (approximately in days) | 2 days | 2 days |
Years ended June 30, | 2020 | 2019 | |||||||||||||||||||||
Average outstanding balances | $ | 263.4 | $ | 316.7 | |||||||||||||||||||
Weighted average interest rates | 1.6 | % | 1.9 | % |
Debt instrument | Effective Interest Rate | June 30, 2020 | June 30, 2019 | |||||||||||||||||
Fixed-rate 2.250% notes due September 15, 2020
|
2.37% | $ | 1,000.0 | $ | 1,000.0 | |||||||||||||||
Fixed-rate 3.375% notes due September 15, 2025
|
3.47% | 1,000.0 | 1,000.0 | |||||||||||||||||
Other | 8.4 | 10.9 | ||||||||||||||||||
2,008.4 | 2,010.9 | |||||||||||||||||||
Less: current portion | (1,001.8) | (2.5) | ||||||||||||||||||
Less: unamortized discount and debt issuance costs | (3.8) | (6.2) | ||||||||||||||||||
Total long-term debt | $ | 1,002.8 | $ | 2,002.2 |
Years ended June 30, | 2020 | 2019 | 2018 | |||||||||||||||||
Operating expenses | $ | 13.7 | $ | 16.9 | $ | 22.9 | ||||||||||||||
Selling, general and administrative expenses | 99.1 | 131.2 | 128.7 | |||||||||||||||||
System development and programming costs | 18.0 | 19.2 | 23.8 | |||||||||||||||||
Total pretax stock-based compensation expense | $ | 130.8 | $ | 167.3 | $ | 175.4 | ||||||||||||||
Income tax benefit | $ | 32.2 | $ | 41.6 | $ | 44.1 |
Number
of Options (in thousands) |
Weighted
Average Price (in dollars) |
|||||||||||||
Options outstanding at July 1, 2019 | 3,608 | $ | 103 | |||||||||||
Options granted | 1,015 | $ | 170 | |||||||||||
Options exercised | (968) | $ | 86 | |||||||||||
Options forfeited/cancelled | (145) | $ | 136 | |||||||||||
Options outstanding at June 30, 2020 | 3,510 | $ | 126 | |||||||||||
Options exercisable at June 30, 2020 | 1,273 | $ | 96 | |||||||||||
Shares available for future grants, end of year | 24,853 | |||||||||||||
Shares reserved for issuance under stock option plans, end of year | 28,363 |
Number of Shares
(in thousands) |
Number of Units
(in thousands) |
|||||||||||||
Restricted shares/units outstanding at July 1, 2019 | 1,272 | 290 | ||||||||||||
Restricted shares/units granted | 572 | 101 | ||||||||||||
Restricted shares/units vested | (856) | (194) | ||||||||||||
Restricted shares/units forfeited | (83) | (17) | ||||||||||||
Restricted shares/units outstanding at June 30, 2020 | 905 | 180 |
Number of Shares
(in thousands) |
Number of Units
(in thousands) |
|||||||||||||
Restricted shares/units outstanding at July 1, 2019 | 250 | 867 | ||||||||||||
Restricted shares/units granted | 112 | 391 | ||||||||||||
Restricted shares/units vested | (171) | (376) | ||||||||||||
Restricted shares/units forfeited | (12) | (31) | ||||||||||||
Restricted shares/units outstanding at June 30, 2020 | 179 | 851 |
2020 | 2019 | 2018 | |||||||||||||||
Risk-free interest rate | 1.4 | % | 2.7 | % | 1.8 | % | |||||||||||
Dividend yield | 1.9 | % | 1.9 | % | 2.1 | % | |||||||||||
Weighted average volatility factor | 19.3 | % | 20.9 | % | 21.7 | % | |||||||||||
Weighted average expected life (in years) | 5.4 | 5.4 | 5.4 | ||||||||||||||
Weighted average fair value (in dollars) | $ | 24.40 | $ | 26.60 | $ | 17.50 |
Year ended June 30, | 2020 | 2019 | 2018 | |||||||||||||||||
Performance-based restricted stock | $ | 169.84 | $ | 146.93 | $ | 107.43 | ||||||||||||||
Time-based restricted stock | $ | 167.16 | $ | 146.80 | $ | 108.10 |
June 30, | 2020 | 2019 | ||||||||||||
Change in plan assets: | ||||||||||||||
Fair value of plan assets at beginning of year | $ | 1,910.5 | $ | 2,178.1 | ||||||||||
Actual return on plan assets | 172.1 | 142.0 | ||||||||||||
Employer contributions | 9.8 | 10.0 | ||||||||||||
Currency translation adjustments | (3.5) | (7.0) | ||||||||||||
Benefits paid | (100.1) | (412.6) | ||||||||||||
Fair value of plan assets at end of year | $ | 1,988.8 | $ | 1,910.5 | ||||||||||
Change in benefit obligation: | ||||||||||||||
Benefit obligation at beginning of year | $ | 1,951.2 | $ | 2,135.3 | ||||||||||
Service cost | 59.7 | 59.8 | ||||||||||||
Interest cost | 61.8 | 78.6 | ||||||||||||
Actuarial loss | 210.7 | 95.8 | ||||||||||||
Currency translation adjustments | (3.6) | (8.7) | ||||||||||||
Plan changes | 0.4 | 0.8 | ||||||||||||
Curtailments and special termination benefits | — | 2.2 | ||||||||||||
Benefits paid | (100.1) | (412.6) | ||||||||||||
Projected benefit obligation at end of year | $ | 2,180.1 | $ | 1,951.2 | ||||||||||
Funded status - plan assets less benefit obligations | $ | (191.3) | $ | (40.7) |
June 30, | 2020 | 2019 | ||||||||||||
Noncurrent assets | $ | 19.8 | $ | 108.0 | ||||||||||
Current liabilities | (5.4) | (5.9) | ||||||||||||
Noncurrent liabilities | (205.7) | (142.8) | ||||||||||||
Net amount recognized | $ | (191.3) | $ | (40.7) |
June 30, | 2020 | 2019 | ||||||||||||
Projected benefit obligation | $ | 2,046.5 | $ | 162.4 | ||||||||||
Accumulated benefit obligation | $ | 2,034.4 | $ | 149.9 | ||||||||||
Fair value of plan assets | $ | 1,835.4 | $ | 13.8 |
2020 | 2019 | 2018 | ||||||||||||||||||
Service cost – benefits earned during the period | $ | 59.7 | $ | 59.8 | $ | 74.6 | ||||||||||||||
Interest cost on projected benefits | 61.8 | 78.6 | 65.4 | |||||||||||||||||
Expected return on plan assets | (117.9) | (131.8) | (137.5) | |||||||||||||||||
Net amortization and deferral | 6.8 | 0.1 | 8.4 | |||||||||||||||||
Special termination benefits and plan curtailments | (22.0) | 48.7 | 319.5 | |||||||||||||||||
Net pension (income)/expense | $ | (11.6) | $ | 55.4 | $ | 330.4 |
Years ended June 30, | 2020 | 2019 | ||||||||||||
Discount rate | 2.45 | % | 3.40 | % | ||||||||||
Increase in compensation levels | 4.00 | % | 4.00 | % |
Years ended June 30, | 2020 | 2019 | 2018 | |||||||||||||||||
Discount rate | 3.40 | % | 4.10 | % | 3.70 | % | ||||||||||||||
Expected long-term rate of return on assets | 6.75 | % | 6.75 | % | 6.75 | % | ||||||||||||||
Increase in compensation levels | 4.00 | % | 4.00 | % | 4.00 | % |
2020 | 2019 | |||||||||||||
Cash and cash equivalents | 1 | % | 1 | % | ||||||||||
Fixed income securities | 44 | % | 44 | % | ||||||||||
U.S. equity securities | 17 | % | 17 | % | ||||||||||
International equity securities | 13 | % | 13 | % | ||||||||||
Global equity securities | 25 | % | 25 | % | ||||||||||
100 | % | 100 | % |
U.S. fixed income securities |
35% - 45%
|
||||
U.S. equity securities |
14% - 24%
|
||||
International equity securities |
11% - 21%
|
||||
Global equity securities |
20% - 30%
|
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Commingled trusts | $ | — | $ | 798.6 | $ | — | $ | 798.6 | ||||||||||||||||||
Government securities | — | 414.7 | — | 414.7 | ||||||||||||||||||||||
Mutual funds | 7.3 | 274.8 | — | 282.1 | ||||||||||||||||||||||
Corporate and municipal bonds | — | 434.8 | — | 434.8 | ||||||||||||||||||||||
Mortgage-backed security bonds | — | 38.5 | — | 38.5 | ||||||||||||||||||||||
Total pension asset investments | $ | 7.3 | $ | 1,961.4 | $ | — | $ | 1,968.7 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Commingled trusts | $ | — | $ | 1,046.6 | $ | — | $ | 1,046.6 | ||||||||||||||||||
U.S. government securities | — | 417.9 | — | 417.9 | ||||||||||||||||||||||
Mutual funds | 6.5 | — | — | 6.5 | ||||||||||||||||||||||
Corporate and municipal bonds | — | 394.3 | — | 394.3 | ||||||||||||||||||||||
Mortgage-backed security bonds | — | 30.2 | — | 30.2 | ||||||||||||||||||||||
Total pension asset investments | $ | 6.5 | $ | 1,889.0 | $ | — | $ | 1,895.5 |
Years ended June 30, | 2020 | 2019 | 2018 | |||||||||||||||||
Earnings before income taxes: | ||||||||||||||||||||
United States | $ | 2,815.4 | $ | 2,584.6 | $ | 1,937.2 | ||||||||||||||
Foreign | 367.2 | 421.0 | 345.4 | |||||||||||||||||
$ | 3,182.6 | $ | 3,005.6 | $ | 2,282.6 |
Years ended June 30, | 2020 | 2019 | 2018 | |||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | 468.3 | $ | 464.3 | $ | 366.6 | ||||||||||||||
Foreign | 119.5 | 129.1 | 105.5 | |||||||||||||||||
State | 102.3 | 110.1 | 77.6 | |||||||||||||||||
Total current | 690.1 | 703.5 | 549.7 | |||||||||||||||||
Deferred: | ||||||||||||||||||||
Federal | 23.7 | 7.9 | (193.0) | |||||||||||||||||
Foreign | (5.4) | 12.8 | 26.1 | |||||||||||||||||
State | 7.7 | (11.4) | 14.9 | |||||||||||||||||
Total deferred | 26.0 | 9.3 | (152.0) | |||||||||||||||||
Total provision for income taxes | $ | 716.1 | $ | 712.8 | $ | 397.7 |
Years ended June 30, | 2020 | % | 2019 | % | 2018 | % | ||||||||||||||||||||||||||||||||
Provision for taxes at U.S. statutory rate | $ | 668.4 | 21.0 | $ | 631.2 | 21.0 | $ | 640.5 | 28.1 | |||||||||||||||||||||||||||||
Increase/(decrease) in provision from: | ||||||||||||||||||||||||||||||||||||||
State taxes, net of federal tax benefit | 85.6 | 2.7 | 80.7 | 2.7 | 58.1 | 2.5 | ||||||||||||||||||||||||||||||||
Valuation Allowance Release on Foreign tax credits | (20.3) | (0.6) | — | — | — | — | ||||||||||||||||||||||||||||||||
U.S. tax on foreign income | — | — | — | — | 12.0 | 0.5 | ||||||||||||||||||||||||||||||||
Utilization of foreign tax credits | — | — | — | — | (19.6) | (0.9) | ||||||||||||||||||||||||||||||||
Tax settlements | — | — | — | — | (31.9) | (1.4) | ||||||||||||||||||||||||||||||||
Re-measurement of deferred tax balances | — | — | — | — | (253.3) | (11.1) | ||||||||||||||||||||||||||||||||
Resolution of tax matters - Section 199 Qualified production activities and research tax credit refund claim | — | — | — | — | (33.3) | (1.5) | ||||||||||||||||||||||||||||||||
Foreign rate differential | 44.9 | 1.4 | 46.9 | 1.6 | — | — | ||||||||||||||||||||||||||||||||
Excess tax benefit - Stock-based compensation | (26.9) | (0.8) | (29.8) | (1.0) | (26.7) | (1.2) | ||||||||||||||||||||||||||||||||
Other | (35.6) | (1.2) | (16.2) | (0.6) | 51.9 | 2.4 | ||||||||||||||||||||||||||||||||
$ | 716.1 | 22.5 | $ | 712.8 | 23.7 | $ | 397.7 | 17.4 |
Years ended June 30, | 2020 | 2019 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Accrued expenses not currently deductible | $ | 203.0 | $ | 228.9 | ||||||||||
Stock-based compensation expense | 33.8 | 45.3 | ||||||||||||
Foreign tax credits | 20.1 | 25.1 | ||||||||||||
Net operating losses | 52.0 | 54.0 | ||||||||||||
Retirement Benefits | 46.0 | 5.6 | ||||||||||||
Other | 25.9 | 20.2 | ||||||||||||
380.8 | 379.1 | |||||||||||||
Less: valuation allowances | (12.0) | (31.6) | ||||||||||||
Deferred tax assets, net | $ | 368.8 | $ | 347.5 | ||||||||||
Deferred tax liabilities: | ||||||||||||||
Deferred revenue | $ | 475.0 | $ | 475.9 | ||||||||||
Fixed and intangible assets | 288.2 | 279.5 | ||||||||||||
Prepaid expenses | 82.3 | 86.2 | ||||||||||||
Unrealized investment gains, net | 187.9 | 63.0 | ||||||||||||
Tax on unrepatriated earnings | 22.2 | 31.6 | ||||||||||||
Other | 6.4 | 7.2 | ||||||||||||
Deferred tax liabilities | 1,062.0 | 943.4 | ||||||||||||
Net deferred tax liabilities | $ | 693.2 | $ | 595.9 |
2020 | 2019 | 2018 | ||||||||||||||||||
Unrecognized tax benefits at beginning of the year | $ | 54.2 | $ | 45.2 | $ | 74.6 | ||||||||||||||
Additions for tax positions | 13.2 | 9.5 | 4.0 | |||||||||||||||||
Additions for tax positions of prior periods | 6.3 | 18.3 | 19.8 | |||||||||||||||||
Reductions for tax positions of prior periods | (4.3) | (7.7) | (40.5) | |||||||||||||||||
Settlement with tax authorities | (4.0) | (10.3) | (11.7) | |||||||||||||||||
Expiration of the statute of limitations | (2.8) | (0.6) | (1.0) | |||||||||||||||||
Impact of foreign exchange rate fluctuations | (0.3) | (0.2) | — | |||||||||||||||||
Unrecognized tax benefit at end of year | $ | 62.3 | $ | 54.2 | $ | 45.2 |
Taxing Jurisdiction | Fiscal Years under Examination | |||||||
U.S. (IRS) |
2019 - 2020
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Wisconsin |
2015 - 2018
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Michigan |
2012 - 2014, 2015 - 2018
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New York State |
2016 - 2018
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New York City |
2016 - 2017
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Florida |
2016 - 2018
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India |
2003 - 2007, 2008 - 2010, 2013 - 2016
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Currency Translation Adjustment | Net Gains on Available-for-sale Securities | Cash Flow Hedging Activities | Pension Liability | Accumulated Other Comprehensive (Loss) /Income | ||||||||||||||||||||||||||||||||||
Balance at June 30, 2017 | $ | (234.8) | $ | 68.3 | $ | — | $ | (216.7) | $ | (383.2) | ||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassification adjustments | 7.8 | (460.7) | — | 87.0 | (365.9) | |||||||||||||||||||||||||||||||||
Tax effect | — | 123.4 | — | (18.7) | 104.7 | |||||||||||||||||||||||||||||||||
Reclassification adjustments to net earnings | — | 2.7 | (A) | — | 9.3 | (B) | 12.0 | |||||||||||||||||||||||||||||||
Tax effect | — | (0.6) | — | (4.5) | (5.1) | |||||||||||||||||||||||||||||||||
Reclassification to retained earnings (C) | — | (7.1) | (C) | — | (35.2) | (C) | (42.3) | |||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | (227.0) | $ | (274.0) | $ | — | $ | (178.8) | $ | (679.8) | ||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassification adjustments | (42.2) | 642.4 | — | (84.7) | 515.5 | |||||||||||||||||||||||||||||||||
Tax effect | — | (144.4) | — | 20.0 | (124.4) | |||||||||||||||||||||||||||||||||
Reclassification adjustments to net earnings | — | 0.9 | (A) | — | 40.3 | (B) | 41.2 | |||||||||||||||||||||||||||||||
Tax effect | — | (0.3) | — | (9.5) | (9.8) | |||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | (269.2) | $ | 224.6 | $ | — | $ | (212.7) | $ | (257.3) | ||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassification adjustments | (53.0) | 602.2 | (40.3) | (160.8) | 348.1 | |||||||||||||||||||||||||||||||||
Tax effect | — | (136.4) | 10.0 | 39.5 | (86.9) | |||||||||||||||||||||||||||||||||
Reclassification adjustments to net earnings | — | (12.9) | (A) | — | (11.8) | (B) | (24.7) | |||||||||||||||||||||||||||||||
Tax effect | — | 2.9 | — | 3.1 | 6.0 | |||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | (322.2) | $ | 680.4 | $ | (30.3) | $ | (342.7) | $ | (14.8) |
Employer Services | PEO Services | Other | Total | |||||||||||||||||||||||||||||
Year ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Revenues | $ | 10,086.6 | $ | 4,511.5 | $ | (8.3) | $ | 14,589.8 | ||||||||||||||||||||||||
Earnings before income taxes | 3,063.0 | 605.5 | (485.9) | 3,182.6 | ||||||||||||||||||||||||||||
Assets | 37,071.7 | 1,443.2 | 650.6 | 39,165.5 | ||||||||||||||||||||||||||||
Capital expenditures | 115.7 | — | 52.6 | 168.3 | ||||||||||||||||||||||||||||
Depreciation and amortization | 388.0 | 3.4 | 88.6 | 480.0 | ||||||||||||||||||||||||||||
Year ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Revenues | $ | 9,942.8 | $ | 4,177.7 | $ | (10.3) | $ | 14,110.2 | ||||||||||||||||||||||||
Earnings before income taxes | 2,960.9 | 616.2 | (571.5) | 3,005.6 | ||||||||||||||||||||||||||||
Assets | 34,606.3 | 1,584.1 | 5,697.3 | 41,887.7 | ||||||||||||||||||||||||||||
Capital expenditures | 98.2 | — | 64.5 | 162.7 | ||||||||||||||||||||||||||||
Depreciation and amortization | 321.0 | 3.5 | 84.5 | 409.0 | ||||||||||||||||||||||||||||
Year ended June 30, 2018 | ||||||||||||||||||||||||||||||||
Revenues | $ | 9,454.8 | $ | 3,828.8 | $ | (9.4) | $ | 13,274.2 | ||||||||||||||||||||||||
Earnings before income taxes | 2,601.1 | 541.6 | (860.1) | 2,282.6 | ||||||||||||||||||||||||||||
Assets | 31,984.2 | 1,329.8 | 5,535.1 | 38,849.1 | ||||||||||||||||||||||||||||
Capital expenditures | 113.9 | — | 78.0 | 191.9 | ||||||||||||||||||||||||||||
Depreciation and amortization | 291.9 | 3.0 | 82.7 | 377.6 |
United States | Europe | Canada | Other | Total | ||||||||||||||||||||||||||||
Year ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Revenues | $ | 12,740.1 | $ | 1,236.3 | $ | 329.8 | $ | 283.6 | $ | 14,589.8 | ||||||||||||||||||||||
Assets | $ | 33,891.0 | $ | 2,162.7 | $ | 2,435.3 | $ | 676.5 | $ | 39,165.5 | ||||||||||||||||||||||
Year ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Revenues | $ | 12,262.6 | $ | 1,236.8 | $ | 326.6 | $ | 284.2 | $ | 14,110.2 | ||||||||||||||||||||||
Assets | $ | 36,508.3 | $ | 2,807.9 | $ | 1,950.5 | $ | 621.0 | $ | 41,887.7 | ||||||||||||||||||||||
Year ended June 30, 2018 | ||||||||||||||||||||||||||||||||
Revenues | $ | 11,439.8 | $ | 1,242.2 | $ | 321.6 | $ | 270.6 | $ | 13,274.2 | ||||||||||||||||||||||
Assets | $ | 33,586.6 | $ | 2,608.6 | $ | 2,073.1 | $ | 580.8 | $ | 38,849.1 |
Year ended June 30, 2020 |
First
Quarter |
Second Quarter |
Third
Quarter |
Fourth
Quarter |
||||||||||||||||||||||
Revenues | $ | 3,495.7 | $ | 3,669.5 | $ | 4,047.8 | $ | 3,376.8 | ||||||||||||||||||
Costs of revenues | $ | 2,044.8 | $ | 2,094.1 | $ | 2,239.1 | $ | 2,067.2 | ||||||||||||||||||
Gross profit | $ | 1,450.9 | $ | 1,575.4 | $ | 1,808.7 | $ | 1,309.6 | ||||||||||||||||||
Earnings before income taxes | $ | 739.1 | $ | 835.5 | $ | 1,076.7 | $ | 531.3 | ||||||||||||||||||
Net earnings | $ | 582.4 | $ | 651.6 | $ | 820.9 | $ | 411.5 | ||||||||||||||||||
Basic per common share amounts: | ||||||||||||||||||||||||||
Basic earnings per share | $ | 1.35 | $ | 1.51 | $ | 1.91 | $ | 0.96 | ||||||||||||||||||
Diluted per common share amounts: | ||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.34 | $ | 1.50 | $ | 1.90 | $ | 0.96 | ||||||||||||||||||
Year ended June 30, 2019 |
First
Quarter |
Second Quarter |
Third
Quarter |
Fourth
Quarter |
||||||||||||||||||||||
Revenues (A) | $ | 3,310.3 | $ | 3,492.4 | $ | 3,828.2 | $ | 3,479.3 | ||||||||||||||||||
Costs of revenues (A) | $ | 1,927.6 | $ | 2,000.2 | $ | 2,092.6 | $ | 2,001.1 | ||||||||||||||||||
Gross profit | $ | 1,382.7 | $ | 1,492.2 | $ | 1,735.6 | $ | 1,478.2 | ||||||||||||||||||
Earnings before income taxes | $ | 646.8 | $ | 741.0 | $ | 984.5 | $ | 633.3 | ||||||||||||||||||
Net earnings | $ | 505.4 | $ | 558.2 | $ | 753.7 | $ | 475.5 | ||||||||||||||||||
Basic per common share amounts: | ||||||||||||||||||||||||||
Basic earnings per share | $ | 1.16 | $ | 1.28 | $ | 1.74 | $ | 1.10 | ||||||||||||||||||
Diluted per common share amounts: | ||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.15 | $ | 1.27 | $ | 1.73 | $ | 1.09 | ||||||||||||||||||
/s/ Carlos A. Rodriguez | ||
Carlos A. Rodriguez | ||
President and Chief Executive Officer | ||
/s/ Kathleen A. Winters | ||
Kathleen A. Winters | ||
Chief Financial Officer |
/s/ Deloitte & Touche LLP | ||
Parsippany, New Jersey |
Employed by | ||||||||||||||||||||
Name | Age | Position | ADP Since | |||||||||||||||||
Brock Albinson | 45 | Corporate Controller and Principal Accounting Officer | 2007 | |||||||||||||||||
John Ayala | 53 | President, Employer Services North America | 2002 | |||||||||||||||||
Maria Black | 46 | President, Worldwide Sales and Marketing | 1996 | |||||||||||||||||
Michael A. Bonarti | 54 | Corporate Vice President, General Counsel and Secretary | 1997 | |||||||||||||||||
Laura Brown | 48 | President, Major Account Services and ADP Canada | 2000 | |||||||||||||||||
Joe DeSilva | 45 | President, Small Business Services, Retirement Services and | 2003 | |||||||||||||||||
Insurance Services | ||||||||||||||||||||
Deborah L. Dyson | 54 | President, National Accounts Services | 1988 | |||||||||||||||||
Michael C. Eberhard | 58 | Vice President and Treasurer | 1998 | |||||||||||||||||
Sreeni Kutam | 50 | Chief Human Resources Officer | 2014 | |||||||||||||||||
Matthew Levin | 47 | Chief Strategy Officer | 2018 | |||||||||||||||||
Don McGuire | 60 | President, Employer Services International | 1998 | |||||||||||||||||
Brian Michaud | 52 | President, Human Resources Outsourcing | 1991 | |||||||||||||||||
Dermot J. O'Brien | 54 | Chief Transformation Officer | 2012 | |||||||||||||||||
Douglas Politi | 58 | President, Compliance Solutions | 1992 | |||||||||||||||||
Carlos A. Rodriguez | 56 | President and Chief Executive Officer | 1999 | |||||||||||||||||
Stuart Sackman | 59 | Corporate Vice President, Global Shared Services | 1992 | |||||||||||||||||
Donald Weinstein | 51 | Corporate Vice President, Global Product and Technology | 2006 | |||||||||||||||||
Kathleen A. Winters | 52 | Chief Financial Officer | 2019 |
Page in Form 10-K | |||||||||||
Schedule II - Valuation and Qualifying Accounts |
Amended and Restated Certificate of Incorporation dated November 10, 1998 - incorporated by reference to Exhibit 3.1 to the Company's Registration Statement No. 333-72023 on Form S-4 filed with the Commission on February 9, 1999 | |||||
Amended and Restated By-laws of the Company, dated August 5, 2020 | |||||
Form of Indenture between the Company and Wells Fargo Bank, National Association, as trustee - incorporated by reference to Exhibit 4.3 to the Company's Registration Statement on Form S-3 (No. 333-206631), filed on August 28, 2015 | |||||
Form of First Supplemental Indenture between Automatic Data Processing, Inc. and Wells Fargo Bank, National Association, as trustee - incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated September 15, 2015 | |||||
Form of 2.250% Senior Note due 2020 - incorporated by reference to Exhibit A to Exhibit 4.1 to the Company's Current Report on Form 8-K dated September 15, 2015 | |||||
Form of 3.375% Senior Note due 2025 - incorporated by reference to Exhibit B to Exhibit 4.1 to the Company's Current Report on Form 8-K dated September 15, 2015 | |||||
Description of Common Stock | |||||
364-Day Credit Agreement, dated as of June 10, 2020, among Automatic Data Processing, Inc., the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A. and Deutsche Bank Securities Inc., as Syndication Agents, and Barclays Bank PLC and MUFG Bank, Ltd., as Documentation Agents - incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 10, 2020 | |||||
Five-Year Credit Agreement, dated as of June 12, 2019, among Automatic Data Processing, Inc., the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A., Citibank, N.A., MUFG Bank, Ltd. and Deutsche Bank Securities Inc., as Syndication Agents, and Barclays Bank PLC, as Documentation Agent - incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated June 12, 2019 | |||||
Five-Year Credit Agreement, dated as of June 13, 2018, among Automatic Data Processing, Inc., the Lenders Party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., BNP Paribas, Wells Fargo Bank, N.A., Citibank, N.A. and MUFG Bank, Ltd., as Syndication Agents, and Deutsche Bank Securities Inc. and Barclays Bank PLC, as Documentation Agents - incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated June 13, 2018 | |||||
Amended and Restated Supplemental Officers Retirement Plan - incorporated by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (Management Compensatory Plan) | |||||
Automatic Data Processing, Inc. Deferred Compensation Plan, as Amended and Restated Effective September 15, 2016 - incorporated by reference to Exhibit 10.10 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016 (Management Compensatory Plan) | |||||
Automatic Data Processing, Inc. Change in Control Severance Plan for Corporate Officers, as amended - incorporated by reference to Exhibit 10.8 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (Management Compensatory Plan) | |||||
Automatic Data Processing, Inc. Amended and Restated Employees’ Savings-Stock Purchase Plan - incorporated by reference to Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (Management Compensatory Plan) | |||||
Automatic Data Processing, Inc. Executive Retirement Plan - incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |||||
Automatic Data Processing, Inc. Retirement and Savings Restoration Plan - incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |||||
Automatic Data Processing, Inc. Corporate Officer Severance Plan - incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |||||
Automatic Data Processing, Inc. Change in Control Severance Plan for Corporate Officers (as amended) (Management Compensatory Plan) - incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K dated November 6, 2018 (Management Compensatory Plan) |
Automatic Data Processing, Inc. Amended and Restated 2008 Omnibus Award Plan (the "2008 Omnibus Award Plan") - incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018 (Management Compensatory Plan) | |||||
French Sub Plan under the 2008 Omnibus Award Plan effective as of January 26, 2012 - incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2012 (Management Compensatory Plan) | |||||
Amended French Sub Plan under the 2008 Omnibus Award Plan effective as of April 6, 2016 (Management Compensatory Plan) - incorporated by reference to Exhibit 10.22 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016 (Management Compensatory Plan) | |||||
Form of Deferred Stock Unit Award Agreement under the 2008 Omnibus Award Plan - incorporated by reference to Exhibit 10.33 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012 (Management Compensatory Plan) | |||||
Form of Stock Option Grant Agreement under the 2008 Omnibus Award Plan (Form for Employees) - incorporated by reference to Exhibit 10.29 to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (Management Compensatory Plan) | |||||
Form of Restricted Stock Award Agreement under the 2008 Omnibus Award Plan (Form for Corporate Officers) - incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |||||
Form of Stock Option Grant under the 2008 Omnibus Award Plan (Form for Corporate Officers) - incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (Management Compensatory Plan) | |||||
Form of Performance Stock Unit Award Agreement under the 2008 Omnibus Award Plan (Form for Corporate Officers) - incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016 (Management Compensatory Plan) | |||||
Form of Stock Option Grant Agreement under the 2008 Omnibus Award Plan (Form for Corporate Officers) - incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016 (Management Compensatory Plan) | |||||
Form of Performance Stock Unit Award Agreement under the 2008 Omnibus Award Plan for grants beginning September 1, 2017 (Management Compensatory Plan) - incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (Management Compensatory Plan) | |||||
Form of Stock Option Grant Agreement under the 2008 Omnibus Award Plan for grants beginning September 1, 2017 (Management Compensatory Plan) - incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (Management Compensatory Plan) | |||||
Form of Restricted Stock and Restricted Stock Unit Award Agreement under the 2008 Omnibus Award Plan for grants beginning September 1, 2017 (Management Compensatory Plan) - incorporated by reference to Exhibit 10.35 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (Management Compensatory Plan) | |||||
Form of Restricted Stock and Restricted Stock Unit Award Agreement under the 2008 Omnibus Award Plan for grants beginning September 1, 2018 (Management Compensatory Plan) - incorporated by reference to Exhibit 10.30 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (Management Compensatory Plan) | |||||
Automatic Data Processing, Inc. 2018 Omnibus Award Plan (the "2018 Omnibus Award Plan") - incorporated by reference to Appendix B to the Company’s Definitive Proxy Statement on Form Schedule 14A dated September 20, 2018 (Management Compensatory Plan) | |||||
Form of Stock Option Grant Agreement under the 2018 Omnibus Award Plan (Management Compensatory Plan) - incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated November 6, 2018 (Management Compensatory Plan) | |||||
Form of Restricted Stock and Restricted Stock Unit Award Agreement under the 2018 Omnibus Award Plan (Management Compensatory Plan) - incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K dated November 6, 2018 (Management Compensatory Plan) | |||||
Form of Performance Stock Unit Award Agreement under the 2018 Omnibus Award Plan (Management Compensatory Plan) - incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K dated November 6, 2018 (Management Compensatory Plan) | |||||
French Sub Plan under the 2018 Omnibus Award Plan (Adopted January 15, 2019) (Management Compensatory Plan) - incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2018 (Management Compensatory Plan) |
Offer Letter, dated as of March 1, 2019, between Automatic Data Processing, Inc. and Kathleen Winters - incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2019 | |||||
Separation Agreement and Release, dated April 29, 2019, by and between Jan Siegmund and Automatic Data Processing, Inc. - incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2019 | |||||
Separation Agreement and Release, dated March 12, 2020, by and between Thomas J. Perrotti and Automatic Data Processing, Inc. - incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated March 12, 2020 | |||||
Subsidiaries of the Company | |||||
Consent of Independent Registered Public Accounting Firm | |||||
Certification by Carlos A. Rodriguez pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |||||
Certification by Kathleen A. Winters pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |||||
Certification by Carlos A. Rodriguez pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||
Certification by Kathleen A. Winters pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||
101.INS | Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
101.SCH |
Inline XBRL Taxonomy Extension Schema
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101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase
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101.LAB |
Inline XBRL Taxonomy Label Linkbase
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101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase
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101.DEF | Inline XBRL Taxonomy Extension Definition Document |
Column A | Column B | Column C | Column D | Column E | |||||||||||||||||||||||||||||||||||||
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Balance at beginning of period | Charged to costs and expenses | Charged to other accounts (A) | Deductions | Balance at end of period | |||||||||||||||||||||||||||||||||||||
Year ended June 30, 2020: | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||||||||||||||||||||||
Current | $ | 54,850 | $ | 65,069 | $ | (4,536) | $ | (22,911) | (B) | $ | 92,472 | ||||||||||||||||||||||||||||||
Long-term | $ | 505 | $ | — | $ | 44 | $ | — | (B) | $ | 549 | ||||||||||||||||||||||||||||||
Deferred tax valuation allowance | $ | 31,627 | $ | (18,953) | $ | (204) | $ | (479) | $ | 11,992 | |||||||||||||||||||||||||||||||
Year ended June 30, 2019: | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||||||||||||||||||||||
Current | $ | 51,342 | $ | 28,177 | $ | 5,165 | $ | (29,834) | (B) | $ | 54,850 | ||||||||||||||||||||||||||||||
Long-term | $ | 510 | $ | — | $ | (5) | $ | — | (B) | $ | 505 | ||||||||||||||||||||||||||||||
Deferred tax valuation allowance | $ | 46,006 | $ | 7,171 | $ | (20,685) | $ | (865) | $ | 31,627 | |||||||||||||||||||||||||||||||
Year ended June 30, 2018: | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||||||||||||||||||||||
Current | $ | 49,561 | $ | 21,443 | $ | 5,546 | $ | (25,208) | (B) | $ | 51,342 | ||||||||||||||||||||||||||||||
Long-term | $ | 803 | $ | — | $ | (293) | $ | — | (B) | $ | 510 | ||||||||||||||||||||||||||||||
Deferred tax valuation allowance | $ | 9,406 | $ | 38,937 | $ | (325) | $ | (2,013) | $ | 46,006 |
AUTOMATIC DATA PROCESSING, INC. | ||||||||||||||||||||
(Registrant) | ||||||||||||||||||||
August 5, 2020 | By | /s/ Carlos A. Rodriguez | ||||||||||||||||||
Carlos A. Rodriguez | ||||||||||||||||||||
President and Chief Executive Officer |
Signature | Title | Date | ||||||||||||
/s/ Carlos A. Rodriguez | President and Chief Executive | August 5, 2020 | ||||||||||||
(Carlos A. Rodriguez) | Officer, Director | |||||||||||||
(Principal Executive Officer) | ||||||||||||||
/s/ Kathleen A. Winters | Chief Financial Officer | August 5, 2020 | ||||||||||||
(Kathleen A. Winters) | (Principal Financial Officer) | |||||||||||||
/s/ Brock Albinson | Corporate Controller | August 5, 2020 | ||||||||||||
(Brock Albinson) | (Principal Accounting Officer) | |||||||||||||
/s/ Peter Bisson | Director | August 5, 2020 | ||||||||||||
(Peter Bisson) | ||||||||||||||
/s/ Richard T. Clark | Director | August 5, 2020 | ||||||||||||
(Richard T. Clark) | ||||||||||||||
/s/ R. Glenn Hubbard | Director | August 5, 2020 | ||||||||||||
(R. Glenn Hubbard) | ||||||||||||||
/s/ John P. Jones | Director | August 5, 2020 | ||||||||||||
(John P. Jones) | ||||||||||||||
/s/ Francine S. Katsoudas | Director | August 5, 2020 | ||||||||||||
(Francine S. Katsoudas) |
/s/ Nazzic S. Keene | Director | August 5, 2020 | ||||||||||||
(Nazzic S. Keene) | ||||||||||||||
/s/ Thomas J. Lynch | Director | August 5, 2020 | ||||||||||||
(Thomas J. Lynch) | ||||||||||||||
/s/ Scott F. Powers | Director | August 5, 2020 | ||||||||||||
(Scott F. Powers) | ||||||||||||||
/s/ William J. Ready | Director | August 5, 2020 | ||||||||||||
(William J. Ready) | ||||||||||||||
/s/ Sandra S. Wijnberg | Director | August 5, 2020 | ||||||||||||
(Sandra S. Wijnberg) | ||||||||||||||
Jurisdiction of | ||||||||||||||
Name of Subsidiary | Incorporation | |||||||||||||
ADP Atlantic, LLC | Delaware | |||||||||||||
ADP Benefit Services KY, Inc. | Kentucky | |||||||||||||
ADP Brasil Ltda
|
Brazil
|
|||||||||||||
ADP Broker-Dealer, Inc. | New Jersey | |||||||||||||
ADP Canada Co. | Canada | |||||||||||||
ADP Client Trust | Delaware | |||||||||||||
ADP Employer Services GmbH | Germany | |||||||||||||
ADP Europe SAS | France | |||||||||||||
ADP France SAS | France | |||||||||||||
ADP GlobalView B.V. | Netherlands | |||||||||||||
ADP GSI France SAS | France | |||||||||||||
ADP Indemnity, Inc. | Vermont | |||||||||||||
ADP International Services B.V. | Netherlands | |||||||||||||
ADP, LLC | Delaware | |||||||||||||
ADP Pacific, Inc. | Delaware | |||||||||||||
ADP Private Limited | India | |||||||||||||
ADP RPO, LLC | Delaware | |||||||||||||
ADP Tax Services, Inc. | Delaware | |||||||||||||
ADP Technology Services, Inc. | Delaware | |||||||||||||
ADP TotalSource, Inc. | Florida | |||||||||||||
ADP TotalSource I, Inc. | Florida | |||||||||||||
ADP TotalSource CO XXI, Inc. | Colorado | |||||||||||||
ADP TotalSource CO XXII, Inc. | Colorado | |||||||||||||
ADP TotalSource of CO XXIII, Inc. | Colorado | |||||||||||||
ADP TotalSource DE IV, Inc. | Delaware | |||||||||||||
ADP TotalSource FL XVIII, Inc. | Florida | |||||||||||||
ADP TotalSource FL XVI, Inc. | Florida | |||||||||||||
ADP TotalSource FL XVII, Inc. | Florida | |||||||||||||
ADP TotalSource FL XIX, Inc. | Florida | |||||||||||||
ADP TotalSource FL XXIX, Inc. | Florida | |||||||||||||
ADP TotalSource NH XXVIII, Inc. | New Hampshire | |||||||||||||
ADP TotalSource MI XXX, Inc. | Michigan | |||||||||||||
Automatic Data Processing Insurance Agency, Inc. | New Jersey | |||||||||||||
Automatic Data Processing Limited | Australia | |||||||||||||
Automatic Data Processing Limited | United Kingdom | |||||||||||||
Global Cash Card, Inc. | Nevada | |||||||||||||
MasterTax, LLC | Arizona | |||||||||||||
Work Market, Inc. | Delaware |
Date:
|
August 5, 2020 |
/s/ Carlos A. Rodriguez
|
||||||
Carlos A. Rodriguez | ||||||||
President and Chief Executive Officer |
Date:
|
August 5, 2020 |
/s/ Kathleen A. Winters
|
||||||
Kathleen A. Winters
|
||||||||
Chief Financial Officer
|
Date:
|
August 5, 2020 |
/s/ Carlos A. Rodriguez
|
||||||
Carlos A. Rodriguez | ||||||||
President and Chief Executive Officer |
Date:
|
August 5, 2020 |
/s/ Kathleen A. Winters
|
||||||
Kathleen A. Winters
|
||||||||
Chief Financial Officer |