Contract liability, net of revenue recognized on contracts during the period

  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |
|  | Three Months Ended |  |  |
|  | September 30, |  |  |
| Types of Revenues | 2022 |  | 2021 |  |  |  |  |
| HCM | $ | 1,811.0  |  |  | $ | 1,666.7  |  |  |  |  |  |
| HRO, excluding PEO zero-margin benefits pass-throughs | 777.3  |  |  | 679.3  |  |  |  |  |  |
| PEO zero-margin benefits pass-throughs | 945.8  |  |  | 839.5  |  |  |  |  |  |
| Global | 540.5  |  |  | 545.7  |  |  |  |  |  |
| Interest on funds held for clients | 141.0  |  |  | 101.1  |  |  |  |  |  |
| Total Revenues | $ | 4,215.6  |  |  | $ | 3,832.3  |  |  |  |  |  |

  
Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2022:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Types of Revenues | Employer Services |  | PEO |  | Other |  | Total |
| HCM | $ | 1,813.2  |  |  | $ | —  |  |  | $ | (2.2) |  |  | $ | 1,811.0  |  |
| HRO, excluding PEO zero-margin benefits pass-throughs | 296.8  |  |  | 482.3  |  |  | (1.8) |  |  | 777.3  |  |
| PEO zero-margin benefits pass-throughs | —  |  |  | 945.8  |  |  | —  |  |  | 945.8  |  |
| Global | 540.5  |  |  | —  |  |  | —  |  |  | 540.5  |  |
| Interest on funds held for clients | 139.7  |  |  | 1.3  |  |  | —  |  |  | 141.0  |  |
| Total Segment Revenues | $ | 2,790.2  |  |  | $ | 1,429.4  |  |  | $ | (4.0) |  |  | $ | 4,215.6  |  |

  
Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2021:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Types of Revenues | Employer Services |  | PEO |  | Other |  | Total |
| HCM | $ | 1,669.1  |  |  | $ | —  |  |  | $ | (2.4) |  |  | $ | 1,666.7  |  |
| HRO, excluding PEO zero-margin benefits pass-throughs | 256.2  |  |  | 424.0  |  |  | (0.9) |  |  | 679.3  |  |
| PEO zero-margin benefits pass-throughs | —  |  |  | 839.5  |  |  | —  |  |  | 839.5  |  |
| Global | 545.7  |  |  | —  |  |  | —  |  |  | 545.7  |  |
| Interest on funds held for clients | 100.5  |  |  | 0.6  |  |  | —  |  |  | 101.1  |  |
| Total Segment Revenues | $ | 2,571.5  |  |  | $ | 1,264.1  |  |  | $ | (3.3) |  |  | $ | 3,832.3  |  |

  
  
  
Contract Balances  
The timing of revenue recognition for HCM, HRO and Global Solutions is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.  
Changes in short-term deferred revenues related to set up fees for the three months ended September 30, 2022 were as follows:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Contract Liability |  |
| Contract liability, July 1, 2022 | $ | 468.2  |  |
| Recognition of revenue included in beginning of year contract liability | (35.6) |  |
| Contract liability, net of revenue recognized on contracts during the period | 29.9  |  |
| Currency translation adjustments | (12.1) |  |
| Contract liability, September 30, 2022 | $ | 450.4  |  |

  
8
