What changed in this filing

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Item 1. Financial Statements

2024-05-02 compared with 2024-02-01 · 124 added, 122 removed, 557 unchanged (31% of the section changed)

4 unchanged sentences

(In millions, except per share amounts)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

20 unchanged sentences

Diluted weighted average shares outstanding 412.1 415.5 413.6 416.2

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 18,379.2 million and $ 17,852.4 million for the three months ended December 31, 2023 and 2022, respectively, and $ 34,373.8 million and $ 33,386.6 million for the six months ended December 31, 2023 and 2022, respectively.

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 18,339.6 million and $ 17,301.8 million for the three months ended March 31, 2024 and 2023, respectively, and $ 52,713.4 million and $ 50,688.4 million for the nine months ended March 31, 2024 and 2023, respectively.

See notes to the Consolidated Financial Statements.

3 unchanged sentences

(In millions)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

2 unchanged sentences

Currency translation adjustments ( 37.4 ) 15.6 ( 28.1 ) 2.0

Unrealized net gains/(losses) on available-for-sale securities 860.5 242.2 709.9 ( 592.9 )

Unrealized net (losses)/gains on available-for-sale securities ( 91.0 ) 392.0 618.8 ( 200.9 )

Tax effect 19.1 ( 86.6 ) ( 145.7 ) 47.9

Reclassification of realized net losses/(gains) on available-for-sale securities to net earnings 2.0 11.5 4.0 13.0

Reclassification of realized net losses on available-for-sale securities to net earnings 1.2 0.9 5.2 13.9

Tax effect ( 0.2 ) ( 0.2 ) ( 1.1 ) ( 3.1 )

3 unchanged sentences

Tax effect ( 0.2 ) — ( 0.6 ) ( 0.6 )

Other comprehensive income/(loss), net of tax 722.6 273.2 560.6 ( 457.2 )

Other comprehensive (loss)/income, net of tax ( 106.7 ) 323.1 453.9 ( 134.1 )

Comprehensive income $ 1,078.2 $ 1,366.2 $ 3,376.6 $ 2,501.2

4 unchanged sentences

(In millions, except per share amounts)

December 31, June 30,

March 31, June 30,

Current assets:

39 unchanged sentences

authorized, 1,000.0 shares;

issued, 638.7 shares at December 31, 2023 and June 30, 2023;

outstanding, 410.7 and 412.1 shares at December 31, 2023 and June 30, 2023, respectively

issued, 638.7 shares at March 31, 2024 and June 30, 2023;

outstanding, 409.8 and 412.1 shares at March 31, 2024 and June 30, 2023, respectively

Capital in excess of par value 2,354.0 2,102.3

1 unchanged sentence

Treasury stock - at cost:

228.0 and 226.6 shares at December 31, 2023 and June 30, 2023, respectively

228.9 and 226.6 shares at March 31, 2024 and June 30, 2023, respectively

( 19,305.4 ) ( 18,469.3 )

2 unchanged sentences

Total liabilities and stockholders’ equity $ 64,181.6 $ 50,971.0

(A ) As of December 31, 2023, $ 21.5 million of short-term marketable securities and $ 0.1 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 9) .

(A ) 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 9) .

See notes to the Consolidated Financial Statements.

3 unchanged sentences

(In millions)

Six Months Ended

Nine Months Ended

Cash Flows from Operating Activities:

5 unchanged sentences

Stock-based compensation expense 188.7 176.6

Bad Debt Expense 38.5 27.0

Net pension income ( 17.4 ) ( 30.7 )

2 unchanged sentences

Changes in operating assets and liabilities:

Increase in accounts receivable ( 382.3 ) ( 1.1 )

(Increase)/Decrease in accounts receivable ( 496.2 ) 80.1

Increase in deferred contract costs ( 865.9 ) ( 814.2 )

1 unchanged sentence

Decrease in accounts payable ( 9.1 ) ( 31.6 )

Decrease in accrued expenses and other liabilities ( 77.1 ) ( 78.7 )

Increase/(Decrease) in accrued expenses and other liabilities 139.2 ( 25.6 )

Net cash flows provided by operating activities 2,857.0 3,021.9

10 unchanged sentences

Net increase/(decrease) in client funds obligations 10,999.6 ( 3,412.3 )

Net cash received from the Internal Revenue Service 1,132.0 —

Payments of debt ( 0.7 ) ( 0.7 )

55 unchanged sentences

The following tables provide details of revenue by our business pillars, and include a reconciliation to the Company’s reportable segments:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

Types of Revenues 2024 2023 2024 2023

5 unchanged sentences

Total Revenues $ 5,253.8 $ 4,927.8 $ 14,434.1 $ 13,534.4

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2023:

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2024:

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

Total Segment Revenues $ 3,590.7 $ 1,665.6 $ ( 2.5 ) $ 5,253.8

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2022:

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2023:

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

Total Segment Revenues $ 3,339.1 $ 1,592.0 $ ( 3.3 ) $ 4,927.8

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2023:

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2024:

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

Total Segment Revenues $ 9,762.3 $ 4,681.2 $ ( 9.4 ) $ 14,434.1

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2022:

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2023:

Types of Revenues Employer Services PEO Other Total

8 unchanged sentences

Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.

Changes in deferred revenues related to set up fees for the six months ended December 31, 2023 were as follows:

Changes in deferred revenues related to set up fees for the nine months ended March 31, 2024 were as follows:

Contract Liability

3 unchanged sentences

Currency translation adjustments 6.4

Contract liability, December 31, 2023 $ 471.5

Contract liability, March 31, 2024 $ 483.9

Earnings per Share (“EPS”)

1 unchanged sentence

Shares Diluted

Three Months Ended December 31, 2023

Three Months Ended March 31, 2024

Net earnings $ 1,184.9 $ 1,184.9

1 unchanged sentence

EPS $ 2.89 $ 2.88

Three Months Ended December 31, 2022

Three Months Ended March 31, 2023

Net earnings $ 1,043.1 $ 1,043.1

1 unchanged sentence

EPS $ 2.52 $ 2.51

Six Months Ended December 31, 2023

Nine Months Ended March 31, 2024

Net earnings $ 2,922.7 $ 2,922.7

1 unchanged sentence

EPS $ 7.11 $ 7.07

Six Months Ended December 31, 2022

Nine Months Ended March 31, 2023

Net earnings $ 2,635.3 $ 2,635.3

1 unchanged sentence

EPS $ 6.36 $ 6.33

For the three months ended December 31, 2023, there were 0.1 million stock options excluded from the calculation of diluted earnings per share due to anti-dilution.

For the six months ended December 31, 2023, there were no stock options excluded

from the calculation of diluted earnings per share due to anti-dilution.

For the three and six months ended December 31, 2022, there were no stock options excluded from the calculation of diluted earnings per share due to anti-dilution.

For the three and nine months ended March 31, 2024, there were no stock options excluded from the calculation of diluted earnings per share due to anti-dilution.

For the three and nine months ended March 31, 2023, there were 0.2 million stock options excluded from the calculation of diluted earnings per share due to anti-dilution in each period.

Other (Income)/Expense, Net

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

Interest income on corporate funds $ ( 55.9 ) $ ( 24.1 ) $ ( 159.3 ) $ ( 82.8 )

Realized losses/(gains) on available-for-sale securities, net 2.0 11.5 4.0 13.0

Realized losses on available-for-sale securities, net 1.2 0.9 5.2 13.9

Gain on sale of assets ( 1.2 ) — ( 17.1 ) —

3 unchanged sentences

Corporate Investments and Funds Held for Clients

Corporate investments and funds held for clients at December 31, 2023 and June 30, 2023 were as follows:

December 31, 2023

Corporate investments and funds held for clients at March 31, 2024 and June 30, 2023 were as follows:

March 31, 2024

Losses Fair Market Value (A)

13 unchanged sentences

Total corporate investments and funds held for clients $ 52,804.1 $ 31.3 $ ( 1,614.2 ) $ 51,221.2

(A) Included within available-for-sale securities are corporate investments with fair values of $ 24.4 million and funds held for clients with fair values of $ 30,271.1 million.

All available-for-sale securities were included in Level 2 of the fair value

(A) Included within available-for-sale securities are funds held for clients with fair values of $ 31,096.4 million.

There are no corporate investments included within available-for-sale securities at March 31, 2024.

All available-for-sale securities were

included in Level 2 of the fair value hierarchy.

June 30, 2023

18 unchanged sentences

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 December 31, 2023.

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 December 31, 2023, are as follows:

December 31, 2023

The Company had no available-for-sale securities included in Level 1 or Level 3 at March 31, 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 March 31, 2024, are as follows:

March 31, 2024

Securities in Unrealized Loss Position Less Than 12 Months Securities in Unrealized Loss Position Greater Than 12 Months Total

26 unchanged sentences

$ ( 179.8 ) $ 8,235.0 $ ( 2,034.6 ) $ 20,814.5 $ ( 2,214.4 ) $ 29,049.5

At December 31, 2023, corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carrying credit ratings of A and above, and have maturities ran g ing from January 2024 through November 2033.

At December 31, 2023, asset-backed securities include AAA-rated senior tranches of securities with predomi nantly prime collateral of fixed-rate auto loan, credit card, and equipment lease receivables with fair values of $ 552.4 million, $ 377.7 million, and $ 157.3 million, respectively.

These securities are collateralized by the cas h flows of the underlying pools of receivables.

At March 31, 2024, corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carrying credit ratings of A and above, and have maturities ranging from April 2024 through March 2034.

At March 31, 2024, asset-backed securities include AAA-rated senior tranches of securities with predomi nantly prime collateral of fixed-rate auto loan, credit card, and equipment lease receivables with fair values of $ 611.3 million, $ 395.8 million, and $ 175.2 million, respectively.

These securities are collateralized by the cash flow s 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 December 31, 2023.

At December 31, 2023, U.S.

All collateral on such asset-backed securities has performed as expected through March 31, 2024.

At March 31, 2024, U.S.

government a gency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $ 967.7 million and $ 445.2 million, respectively.

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 February 2024 through March 2033.

At December 31, 2023, U.S.

At March 31, 2024, U.S.

government agency commercial mortgage-backed securities of $ 538.0 million include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.

At December 31, 2023, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair val ues of $ 534.3 million, AA-rated United Kingdom Gilt securities of $ 399.5 million, and AAA-rated supranational bonds of $ 211.9 million.

At March 31, 2024, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair val ues of $ 533.2 million, AA-rated United Kingdom Gilt securities of $ 396.7 million, and AAA-rated supranational bonds of $ 209.3 million.

Classification of corporate investments on the Consolidated Balance Sheets is as follows:

December 31, June 30,

March 31, June 30,

Corporate investments:

7 unchanged sentences

Funds held for clients have been invested in the following categories:

December 31, June 30,

March 31, June 30,

Funds held for clients:

5 unchanged sentences

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 $ 44,002.1 million and $ 38,538.6 million at December 31, 2023 and June 30, 2023, respectively.

The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totalin g $ 49,512.3 million and $ 38,538.6 million at March 31, 2024 and June 30, 2023, respectively.

The Company has classified funds held for clients as a current asset since these funds are held solely for the purpose of satisfying the client funds obligations.

Of the Company’s funds held for clients at December 31, 2023 and June 30, 2023 , $ 39,005.9 million and $ 32,758.1 million, respectively, are held in the grantor trust.

Of the Company’s funds held for clients at March 31, 2024 and June 30, 2023 , $ 43,448.0 million and $ 32,758.1 million, respectively, are held in the grantor trust.

The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and are eliminated in consolidation.

2 unchanged sentences

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 / (decrease) 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 December 31, 2023.

Expected maturities of available-for-sale securities at December 31, 2023 are as follows:

All available-for-sale securities were rated as investment grade at March 31, 2024.

Expected maturities of available-for-sale securities at March 31, 2024 are as follows:

One year or less $ 5,652.6

9 unchanged sentences

The components of operating lease expense were as follows:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

4 unchanged sentences

The following table provides supplemental cash flow information related to the Company's leases:

Six Months Ended

Nine Months Ended

Cash paid for operating lease liabilities $ 95.6 $ 95.8

1 unchanged sentence

Other information related to our operating lease liabilities is as follows:

December 31, June 30,

March 31, June 30,

Weighted-average remaining lease term (in years) 5 6

1 unchanged sentence

Current operating lease liability $ 94.3 $ 95.5

As of December 31, 2023, maturities of operating lease liabilities are as follows:

Six months ending June 30, 2024 $ 56.9

As of March 31, 2024, maturities of operating lease liabilities are as follows:

Three months ending June 30, 2024 $ 29.3

Twelve months ending June 30, 2025 102.3

7 unchanged sentences

Goodwill and Intangible Assets, net

Changes in goodwill for the six months ended December 31, 2023 are as follows:

Changes in goodwill for the nine months ended March 31, 2024 are as follows:

Services Total

2 unchanged sentences

Currency translation adjustments ( 8.5 ) — ( 8.5 )

Balance at December 31, 2023 $ 2,365.0 $ 4.8 $ 2,369.8

Balance at March 31, 2024 $ 2,350.6 $ 4.8 $ 2,355.4

Components of intangible assets, net, are as follows:

December 31, June 30,

March 31, June 30,

Intangible assets:

12 unchanged sentences

The weighted average remaining useful life of the intangible assets is 6 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 $ 94.5 million and $ 93.7 million for the three months ended December 31, 2023 and 2022, respectively, and $ 190.2 million and $ 186.1 million for the six months ended December 31, 2023 and 2022, respectively.

Amortization of intangible assets was $ 94.9 million and $ 92.4 million for the three months ended March 31, 2024 and 2023, respectively, and $ 285.1 million and $ 278.5 million for the nine months ended March 31, 2024 and 2023, respectively.

Estimated future amortization expenses of the Company's existing intangible assets are as follows:

Six months ending June 30, 2024 $ 210.2

Three months ending June 30, 2024 $ 109.7

Twelve months ending June 30, 2025 $ 340.2

10 unchanged sentences

The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary.

The Company had no borrowings through December 31, 2023 under the credit agreements.

The Company had no borrowings through March 31, 2024 under the credit agreements.

The Company's U.S.

4 unchanged sentences

Maturities of commercial paper can range from overnight to up to 364 days.

At December 31, 2023 and June 30, 2023, the Company had no commercial paper borrowing outstanding.

At March 31, 2024 and June 30, 2023, the Company had no commercial paper borrowing outstanding.

Details of the borrowings under the commercial paper program are as follows:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

1 unchanged sentence

Weighted average interest rates 5.4 % 4.5 % 5.3 % 3.1 %

Weighted average maturity (approximately in days) 2 days 2 days 2 days 2 days

Weighted average maturity (approximately in days) 2 days 1 day 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 business days.

At December 31, 2023 and June 30, 2023, the Company had $ 21.6 million and $ 105.4 million, respectively, of outstanding obligations related to reverse repurchase agreements.

At March 31, 2024, the Company had no outstanding obligations related to reverse repurchase agreements.

At June 30, 2023, the Company had $ 105.4 million of outstanding obligations related to reverse repurchase agreements.

Details of the reverse repurchase agreements are as follows:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

3 unchanged sentences

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 December 31, 2023 and June 30, 2023, are as follows:

Debt instrument Effective Interest Rate December 31, 2023 June 30, 2023

The principal amounts and associated effective interest rates of the Notes and other debt as of March 31, 2024 and June 30, 2023, are as follows:

Debt instrument Effective Interest Rate March 31, 2024 June 30, 2023

Fixed-rate 3.375 % notes due September 15, 2025

9 unchanged sentences

Total long-term debt $ 2,990.7 $ 2,989.0

(a) - Current portion of long-term debt as of December 31, 2023 is included within accrued expenses and other current liabilities on the Consolidated Balance Sheets.

(a) - Current portion of long-term debt as of March 31, 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 December 31, 2023, the fair value of the Notes, based on Level 2 inputs, was $ 2,716.4 million.

As of March 31, 2024, the fair value of the Notes, based on Level 2 inputs, was $ 2,691.3 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” in the Company's Annual Report on Form 10-K for fiscal 2023.

9 unchanged sentences

From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program.

The Company repurchase d 1.1 million and 0.9 million shares in the three months ended December 31, 2023 and 2022, respectively, and repurchased 2.1 million and 2.3 million shares in the six months ended December 31, 2023 and 2022, respectively.

The Company repurchase d 1.2 million shares in each of the three months ended March 31, 2024 and 2023, and repurchased 3.3 million and 3.5 million shares in the nine months ended March 31, 2024 and 2023, respectively.

The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions.

The following table represents pre-tax stock-based compensation expense for the three and six months ended December 31, 2023 and 2022, respectively:

Three Months Ended Six Months Ended

December 31, December 31,

The following table represents pre-tax stock-based compensation expense for the three and nine months ended March 31, 2024 and 2023, respectively:

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

5 unchanged sentences

The components of net pension income were as follows:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

5 unchanged sentences

Net pension (income)/expense $ ( 5.8 ) $ ( 10.7 ) $ ( 17.4 ) $ ( 30.7 )

The effective tax rate for the three months ended December 31, 2023 and 2022 was 23.2 %.

The rate remained flat due to a lower state income tax rate and a lower benefit for adjustments to prior year tax liabilities in the three months ended December 31, 2023.

The effective tax rate for the six months ended December 31, 2023 and 2022 was 22.3 % and 23.0 %, respectively.

The decrease is primarily due to lower reserves for uncertain tax positions and a valuation allowance release offset by a lower excess tax benefit on stock-based compensation in the six months ended December 31, 2023.

The effective tax rate for the three months ended March 31, 2024 and 2023 was 23.4 % and 23.5 %, respectively.

The decrease in the effective tax rate is primarily due to an intercompany transfer of certain assets in the three months ended March 31, 2024 offset by an increased benefit for Research and Development Tax Credits in the three months ended March 31, 2023.

The effective tax rate for the nine months ended March 31, 2024 and 2023 was 22.7 % and 23.2 %, respectively.

The decrease in the effective tax rate is primarily due to lower reserves for uncertain tax positions, a lower state income tax rate and a valuation allowance release offset by a lower benefit for adjustments to prior year tax liabilities in nine months ended March 31, 2024.

Commitments and Contingencies

15 unchanged sentences

Three Months Ended

December 31, 2023

March 31, 2024

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

Balance at September 30, 2023 $ 63.9 $ 2,188.7 $ 22,455.4 $ ( 18,767.4 ) $ ( 2,467.8 ) $ 3,472.8

Balance at December 31, 2023 $ 63.9 $ 2,262.9 $ 22,757.1 $ ( 19,019.1 ) $ ( 1,745.2 ) $ 4,319.6

Net earnings — — 1,184.9 — — 1,184.9

6 unchanged sentences

— — ( 575.9 ) — — ( 575.9 )

Balance at December 31, 2023 $ 63.9 $ 2,262.9 $ 22,757.1 $ ( 19,019.1 ) $ ( 1,745.2 ) $ 4,319.6

Balance at March 31, 2024 $ 63.9 $ 2,354.0 $ 23,366.1 $ ( 19,305.4 ) $ ( 1,851.9 ) $ 4,626.7

Three Months Ended

December 31, 2022

March 31, 2023

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

Balance at September 30, 2022 $ 63.9 $ 1,893.1 $ 21,039.0 $ ( 17,695.4 ) $ ( 2,724.1 ) $ 2,576.5

Balance at December 31, 2022 $ 63.9 $ 1,954.2 $ 21,333.0 $ ( 17,913.5 ) $ ( 2,450.9 ) $ 2,986.7

Net earnings — — 1,043.1 — — 1,043.1

6 unchanged sentences

— — ( 518.3 ) — — ( 518.3 )

Balance at December 31, 2022 $ 63.9 $ 1,954.2 $ 21,333.0 $ ( 17,913.5 ) $ ( 2,450.9 ) $ 2,986.7

Six Months Ended

December 31, 2023

Balance at March 31, 2023 $ 63.9 $ 2,061.9 $ 21,857.8 $ ( 18,162.0 ) $ ( 2,127.8 ) $ 3,693.8

Nine Months Ended

March 31, 2024

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

8 unchanged sentences

— — ( 1,674.6 ) — — ( 1,674.6 )

Balance at December 31, 2023 $ 63.9 $ 2,262.9 $ 22,757.1 $ ( 19,019.1 ) $ ( 1,745.2 ) $ 4,319.6

Six Months Ended

December 31, 2022

Balance at March 31, 2024 $ 63.9 $ 2,354.0 $ 23,366.1 $ ( 19,305.4 ) $ ( 1,851.9 ) $ 4,626.7

Nine Months Ended

March 31, 2023

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

8 unchanged sentences

— — ( 1,473.8 ) — — ( 1,473.8 )

Balance at December 31, 2022 $ 63.9 $ 1,954.2 $ 21,333.0 $ ( 17,913.5 ) $ ( 2,450.9 ) $ 2,986.7

Balance at March 31, 2023 $ 63.9 $ 2,061.9 $ 21,857.8 $ ( 18,162.0 ) $ ( 2,127.8 ) $ 3,693.8

Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”)

1 unchanged sentence

Three Months Ended

December 31, 2023

March 31, 2024

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss) /Income

Balance at September 30, 2023 $ ( 385.4 ) $ ( 1,824.6 ) $ ( 22.5 ) $ ( 235.3 ) $ ( 2,467.8 )

Balance at December 31, 2023 $ ( 331.5 ) $ ( 1,157.5 ) $ ( 21.6 ) $ ( 234.6 ) $ ( 1,745.2 )

Other comprehensive income/(loss) before reclassification adjustments ( 37.4 ) ( 91.0 ) — — ( 128.4 )

2 unchanged sentences

Tax effect — ( 0.2 ) ( 0.3 ) ( 0.2 ) ( 0.7 )

Balance at December 31, 2023 $ ( 331.5 ) $ ( 1,157.5 ) $ ( 21.6 ) $ ( 234.6 ) $ ( 1,745.2 )

Balance at March 31, 2024 $ ( 368.9 ) $ ( 1,228.4 ) $ ( 20.8 ) $ ( 233.8 ) $ ( 1,851.9 )

Three Months Ended

December 31, 2022

March 31, 2023

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss) /Income

Balance at September 30, 2022 $ ( 438.9 ) $ ( 1,978.1 ) $ ( 25.8 ) $ ( 281.3 ) $ ( 2,724.1 )

Other comprehensive (loss)/income before reclassification adjustments 71.1 242.2 — — 313.3

Balance at December 31, 2022 $ ( 367.8 ) $ ( 1,778.3 ) $ ( 24.9 ) $ ( 279.9 ) $ ( 2,450.9 )

Other comprehensive income/(loss) before reclassification adjustments 15.6 392.0 — — 407.6

Tax effect — ( 86.6 ) — — ( 86.6 )

1 unchanged sentence

Tax effect — ( 0.2 ) ( 0.3 ) — ( 0.5 )

Balance at December 31, 2022 $ ( 367.8 ) $ ( 1,778.3 ) $ ( 24.9 ) $ ( 279.9 ) $ ( 2,450.9 )

Six Months Ended

December 31, 2023

Balance at March 31, 2023 $ ( 352.2 ) $ ( 1,472.2 ) $ ( 24.1 ) $ ( 279.3 ) $ ( 2,127.8 )

Nine Months Ended

March 31, 2024

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, 2023 $ ( 340.8 ) $ ( 1,705.6 ) $ ( 23.3 ) $ ( 236.1 ) $ ( 2,305.8 )

Other comprehensive (loss)/income before reclassification adjustments 9.3 709.9 — — 719.2

Other comprehensive income/(loss) before reclassification adjustments ( 28.1 ) 618.8 — — 590.7

Tax effect — ( 145.7 ) — — ( 145.7 )

1 unchanged sentence

Tax effect — ( 1.1 ) ( 0.8 ) ( 0.6 ) ( 2.5 )

Balance at December 31, 2023 $ ( 331.5 ) $ ( 1,157.5 ) $ ( 21.6 ) $ ( 234.6 ) $ ( 1,745.2 )

Six Months Ended

December 31, 2022

Balance at March 31, 2024 $ ( 368.9 ) $ ( 1,228.4 ) $ ( 20.8 ) $ ( 233.8 ) $ ( 1,851.9 )

Nine Months Ended

March 31, 2023

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, 2022 $ ( 354.2 ) $ ( 1,330.0 ) $ ( 26.6 ) $ ( 282.9 ) $ ( 1,993.7 )

Other comprehensive (loss)/income before reclassification adjustments ( 13.6 ) ( 592.9 ) — — ( 606.5 )

Other comprehensive income/(loss) before reclassification adjustments 2.0 ( 200.9 ) — — ( 198.9 )

Tax effect — 47.9 — — 47.9

1 unchanged sentence

Tax effect — ( 3.1 ) ( 0.8 ) ( 0.6 ) ( 4.5 )

Balance at December 31, 2022 $ ( 367.8 ) $ ( 1,778.3 ) $ ( 24.9 ) $ ( 279.9 ) $ ( 2,450.9 )

Balance at March 31, 2023 $ ( 352.2 ) $ ( 1,472.2 ) $ ( 24.1 ) $ ( 279.3 ) $ ( 2,127.8 )

(A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings.

4 unchanged sentences

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 transformation, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and interest expense.

Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons.

1 unchanged sentence

Segment Results:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

4 unchanged sentences

Earnings before Income Taxes

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements