AUTOMATIC DATA PROCESSING INCADP
AUTOMATIC DATA PROCESSING INC Segments Disclosure
FINANCIAL DATA BY SEGMENT AND GEOGRAPHIC AREA
Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility.
The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer. For each reportable segment, the CODM uses earnings before income taxes, including plan-to-actual and forecast-to-actual results, to assess segment performance and allocate resources (including personnel and capital resources) amongst its strategic business units. The CODM does not review assets at the reportable segment level, hence segment disclosure relating to total assets has not been provided.
The following tables present the Company's revenues, significant segment expenses, and earnings before income taxes by reportable segment:
| Year ended June 30, 2025 | Employer Services | PEO Services | Total | |||||||||||||||||
| Revenues from external customers | $ | 12,692.2 | $ | 6,679.6 | $ | 19,371.8 | ||||||||||||||
| Interest on funds held for clients | 1,178.3 | 10.8 | 1,189.1 | |||||||||||||||||
| Intercompany revenues | 12.6 | — | 12.6 | |||||||||||||||||
| Total segment revenues | 13,883.1 | 6,690.4 | 20,573.5 | |||||||||||||||||
| Reconciliation of revenues: | ||||||||||||||||||||
| Intercompany eliminations | (12.6) | |||||||||||||||||||
| Total consolidated revenues | $ | 20,560.9 | ||||||||||||||||||
| Less segment expenses: (a) | ||||||||||||||||||||
| Selling and marketing | 2,177.1 | 362.8 | ||||||||||||||||||
| Zero-margin benefits pass-through costs | — | 4,289.0 | ||||||||||||||||||
| Worker's compensation coverage and state unemployment taxes | — | 681.3 | ||||||||||||||||||
| Other segment expenses (b) | 6,697.5 | 406.8 | ||||||||||||||||||
| Total segment earnings before income taxes | 5,008.5 | 950.5 | 5,959.0 | |||||||||||||||||
| Reconciliation of earnings before income taxes: | ||||||||||||||||||||
| Other (c) | (648.9) | |||||||||||||||||||
| Total consolidated earnings before income taxes | $ | 5,310.1 | ||||||||||||||||||
| Year ended June 30, 2024 | Employer Services | PEO Services | Total | |||||||||||||||||
| Revenues from external customers | $ | 11,953.6 | $ | 6,224.3 | $ | 18,177.9 | ||||||||||||||
| Interest on funds held for clients | 1,015.4 | 9.3 | 1,024.7 | |||||||||||||||||
| Intercompany revenues | 11.8 | — | 11.8 | |||||||||||||||||
| Total segment revenues | 12,980.8 | 6,233.6 | 19,214.4 | |||||||||||||||||
| Reconciliation of revenues: | ||||||||||||||||||||
| Intercompany eliminations | (11.8) | |||||||||||||||||||
| Total consolidated revenues | $ | 19,202.6 | ||||||||||||||||||
| Less segment expenses: (a) | ||||||||||||||||||||
| Selling and marketing | 2,025.0 | 330.5 | ||||||||||||||||||
| Zero-margin benefits pass-through costs | — | 3,975.9 | ||||||||||||||||||
| Worker's compensation coverage and state unemployment taxes | — | 613.4 | ||||||||||||||||||
| Other segment expenses (b) | 6,400.3 | 392.3 | ||||||||||||||||||
| Total segment earnings before income taxes | 4,555.5 | 921.5 | 5,477.0 | |||||||||||||||||
| Reconciliation of earnings before income taxes: | ||||||||||||||||||||
| Other (c) | (604.7) | |||||||||||||||||||
| Total consolidated earnings before income taxes | $ | 4,872.3 | ||||||||||||||||||
| Year ended June 30, 2023 | Employer Services | PEO Services | Total | |||||||||||||||||
| Revenues from external customers | $ | 11,222.0 | $ | 5,976.8 | $ | 17,198.8 | ||||||||||||||
| Interest on funds held for clients | 806.0 | 7.4 | 813.4 | |||||||||||||||||
| Intercompany revenues | 14.6 | — | 14.6 | |||||||||||||||||
| Total segment revenues | 12,042.6 | 5,984.2 | 18,026.8 | |||||||||||||||||
| Reconciliation of revenues: | ||||||||||||||||||||
| Intercompany eliminations | (14.6) | |||||||||||||||||||
| Total consolidated revenues | $ | 18,012.2 | ||||||||||||||||||
| Less segment expenses: (a) | ||||||||||||||||||||
| Selling and marketing | 1,885.3 | 307.4 | ||||||||||||||||||
| Zero-margin benefits pass-through costs | — | 3,800.9 | ||||||||||||||||||
| Worker's compensation coverage and state unemployment taxes | — | 606.3 | ||||||||||||||||||
| Other segment expenses (b) | 6,183.1 | 292.3 | ||||||||||||||||||
| Total segment earnings before income taxes | 3,974.2 | 977.3 | 4,951.5 | |||||||||||||||||
| Reconciliation of earnings before income taxes: | ||||||||||||||||||||
| Other (c) | (513.9) | |||||||||||||||||||
| Total consolidated earnings before income taxes | $ | 4,437.6 | ||||||||||||||||||
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intercompany expenses are included in the amounts shown.
(b) Other segment expenses for both reportable segments include operating, research and development, depreciation and amortization, and other general and administrative expenses.
(c) Other represents certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, legal settlements, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and interest income and expense.
The following table presents the Company's depreciation and amortization included in earnings before income taxes for each reportable segment:
| Years ended June 30, | 2025 | 2024 | 2023 | |||||||||||||||||
| Employer Services | $ | 512.4 | $ | 486.6 | $ | 467.6 | ||||||||||||||
| PEO Services | 6.7 | 6.8 | 7.5 | |||||||||||||||||
| Other | 63.3 | 68.5 | 74.2 | |||||||||||||||||
| Total depreciation and amortization | $ | 582.4 | $ | 561.9 | $ | 549.3 | ||||||||||||||
The following table presents the Company's revenues and assets by geographic area:
| United States | Europe | Canada | Other | Total | ||||||||||||||||||||||||||||
| Year ended June 30, 2025 | ||||||||||||||||||||||||||||||||
| Revenues | $ | 18,179.2 | $ | 1,533.5 | $ | 489.3 | $ | 358.9 | $ | 20,560.9 | ||||||||||||||||||||||
| Assets | $ | 46,763.0 | $ | 3,025.5 | $ | 2,750.7 | $ | 830.1 | $ | 53,369.3 | ||||||||||||||||||||||
| Year ended June 30, 2024 | ||||||||||||||||||||||||||||||||
| Revenues | $ | 16,934.2 | $ | 1,451.4 | $ | 473.7 | $ | 343.3 | $ | 19,202.6 | ||||||||||||||||||||||
| Assets | $ | 47,989.9 | $ | 2,800.8 | $ | 2,796.6 | $ | 775.4 | $ | 54,362.7 | ||||||||||||||||||||||
| Year ended June 30, 2023 | ||||||||||||||||||||||||||||||||
| Revenues | $ | 15,950.9 | $ | 1,309.2 | $ | 427.5 | $ | 324.6 | $ | 18,012.2 | ||||||||||||||||||||||
| Assets | $ | 44,565.9 | $ | 2,602.2 | $ | 3,022.0 | $ | 780.9 | $ | 50,971.0 | ||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 6, 2025 | Showing above |
| 2024 | Aug 7, 2024 | |
| 2023 | Aug 3, 2023 | |
| 2022 | Aug 3, 2022 | |
| 2021 | Aug 4, 2021 | |
| 2020 | Aug 5, 2020 | |
| 2019 | Aug 9, 2019 | |
| 2018 | Aug 3, 2018 | |
| 2017 | Aug 4, 2017 | |
| 2016 | Aug 5, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.