XML 58 R13.htm IDEA: XBRL DOCUMENT
v3.21.2

Corporate Investments And Funds Held For Clients | 12 Months Ended
--- | ---
Jun. 30, 2021
Corporate Investments And Funds Held For Clients [Abstract] |
Corporate Investments And Funds Held For Clients | CORPORATE INVESTMENTS AND FUNDS HELD FOR CLIENTS Corporate investments and funds held for clients at June 30, 2021 and 2020 were as follows:
| June 30, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value (A)
Type of issue: |  |  |  |  |  |  |
Money market securities, cash and other cash equivalents | $ | 13,143.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 13,143.2 |
Available-for-sale securities: |  |  |  |  |  |  |
Corporate bonds | 11,732.3 |  |  | 321.9 |  |  | (38.5) |  |  | 12,015.7 |
U.S. Treasury securities | 4,036.9 |  |  | 64.8 |  |  | (9.3) |  |  | 4,092.4 |
Asset-backed securities | 2,279.8 |  |  | 60.9 |  |  | (0.9) |  |  | 2,339.8 |
Canadian government obligations and Canadian government agency obligations | 1,542.3 |  |  | 15.0 |  |  | (9.0) |  |  | 1,548.3 |
U.S. government agency securities | 1,446.3 |  |  | 22.5 |  |  | (9.4) |  |  | 1,459.4 |
Canadian provincial bonds | 956.3 |  |  | 22.7 |  |  | (5.3) |  |  | 973.7 |
Commercial mortgage-backed securities | 793.4 |  |  | 41.2 |  |  | — |  |  | 834.6 |
Other securities | 1,082.2 |  |  | 30.9 |  |  | (5.3) |  |  | 1,107.8 |
Total available-for-sale securities | 23,869.5 |  |  | 579.9 |  |  | (77.7) |  |  | 24,371.7 |
Total corporate investments and funds held for clients | $ | 37,012.7 |  |  | $ | 579.9 |  |  | $ | (77.7) |  |  | $ | 37,514.9 |
(A) Included within available-for-sale securities are corporate investments with fair values of $33.9 million and funds held for clients with fair values of $24,337.8 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy.
| June 30, 2020
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value (B)
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 |
(B) Included within available-for-sale securities are corporate investments with fair values of $13.6 million and funds held for clients with fair values of $21,563.0 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies.” The Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company had no available-for-sale securities included in Level 1 or Level 3 at June 30, 2021. The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2021, are as follows:
| June 30, 2021
| Securities in unrealized loss position less than 12 months |  | Securities in unrealized loss position greater than 12 months |  | Total
| Gross Unrealized Losses |  | Fair Market Value |  | Gross Unrealized Losses |  | Fair Market Value |  | Gross Unrealized Losses |  | Fair Market Value
Corporate bonds | $ | (38.5) |  |  | $ | 3,539.6 |  |  | $ | — |  |  | $ | — |  |  | $ | (38.5) |  |  | $ | 3,539.6 |
U.S. Treasury securities | (9.3) |  |  | 580.9 |  |  | — |  |  | — |  |  | (9.3) |  |  | 580.9 |
Asset-backed securities | (0.9) |  |  | 160.9 |  |  | — |  |  | — |  |  | (0.9) |  |  | 160.9 |
Canadian government obligations and Canadian government agency obligations | (9.0) |  |  | 721.3 |  |  | — |  |  | — |  |  | (9.0) |  |  | 721.3 |
U.S. government agency securities | (9.4) |  |  | 749.7 |  |  | — |  |  | — |  |  | (9.4) |  |  | 749.7 |
Canadian provincial bonds | (5.3) |  |  | 253.7 |  |  | — |  |  | — |  |  | (5.3) |  |  | 253.7 |
Commercial mortgage-backed securities | — |  |  | 16.7 |  |  | — |  |  | — |  |  | — |  |  | 16.7 |
Other securities | (5.2) |  |  | 308.5 |  |  | (0.1) |  |  | 1.9 |  |  | (5.3) |  |  | 310.4 |
| $ | (77.6) |  |  | $ | 6,331.3 |  |  | $ | (0.1) |  |  | $ | 1.9 |  |  | $ | (77.7) |  |  | $ | 6,333.2 |
The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2020 are as follows:
| 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 |
At June 30, 2021, Corporate bonds include investment-grade debt securities, with a wide variety of issuers, industries, and sectors, primarily carry credit ratings of A and above, and have maturities ranging from July 2021 through July 2031. At June 30, 2021, asset-backed securities include AAA-rated senior tranches of securities with predominately prime collateral of fixed-rate auto loan, credit card, equipment lease and rate reduction receivables with fair values of $1,247.4 million, $759.5 million, $263.5 million, and $68.7 million, respectively. These securities are collateralized by the cash flows of the underlying pools of receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through June 30, 2021. At June 30, 2021, U.S. government agency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $827.3 million and $536.8 million, respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's and AA+ by Standard & Poor's, with maturities ranging from July 2021 through June 2031. At June 30, 2021, U.S. government agency commercial mortgage-backed securities of $834.6 million include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association. At June 30, 2021, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above, with fair values of $569.5 million and AA-rated United Kingdom Gilt securities of $237.5 million. Classification of corporate investments on the Consolidated Balance Sheets is as follows:
June 30, |  | 2021 |  | 2020
Corporate investments: |  |  |  |
Cash and cash equivalents |  | $ | 2,575.2 |  |  | $ | 1,908.5 |
Short-term marketable securities (a) |  | 10.4 |  |  | — |
Long-term marketable securities (b) |  | 23.5 |  |  | 13.6 |
Total corporate investments |  | $ | 2,609.1 |  |  | $ | 1,922.1 |
(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets. (b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets. Funds held for clients have been invested in the following categories:
June 30, |  | 2021 |  | 2020
Funds held for clients: |  |  |  |
Restricted cash and cash equivalents held to satisfy client funds obligations |  | $ | 10,568.0 |  |  | $ | 5,145.1 |
Restricted short-term marketable securities held to satisfy client funds obligations |  | 3,743.3 |  |  | 5,541.2 |
Restricted long-term marketable securities held to satisfy client funds obligations |  | 20,594.5 |  |  | 16,021.8 |
Total funds held for clients |  | $ | 34,905.8 |  |  | $ | 26,708.1 |
Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax and other payee payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling $34,403.8 million and $25,831.6 million as of June 30, 2021 and 2020, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client funds obligations. Of the Company’s funds held for clients at June 30, 2021, $31,092.3 million are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and eliminate in consolidation. The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows. The Company has reported the cash and cash equivalents related to client funds investments with original maturities of ninety days or less, within the beginning and ending balances of cash, cash equivalents, restricted cash, and restricted cash equivalents. The Company has reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows. Approximately 72% of the available-for-sale securities held a AAA-rating or AA-rating at June 30, 2021, as rated by Moody's, Standard & Poor's, DBRS for Canadian dollar-denominated securities, and Fitch for asset-backed and commercial mortgage-backed securities. All available-for-sale securities were rated as investment grade at June 30, 2021. Expected maturities of available-for-sale securities at June 30, 2021 are as follows:
One year or less | $ | 3,753.8 |
One year to two years | 4,644.3 |
Two years to three years | 2,940.3 |
Three years to four years | 3,393.5 |
After four years | 9,639.8 |
Total available-for-sale securities | $ | 24,371.7 |

X
- Definition Corporate Investments and Funds Held for Clients [Abstract] + References No definition available. + Details
Name: | adp_CorporateInvestmentsAndFundsHeldForClientsAbstract
Namespace Prefix: | adp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration