Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Dec. 31, 2015	Jan. 29, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Entity Registrant Name	CDK Global, Inc.
Entity Central Index Key	0001609702
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Entity Common Stock, Shares Outstanding		155,276,390

Condensed Consolidated and Combined Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenues	$ 520.1	$ 517.0	$ 1,034.7	$ 1,034.0
Expenses:
Cost of revenues	301.2	323.3	612.0	634.8
Selling, general and administrative expenses	105.8	105.9	203.2	216.4
Restructuring expenses	1.8	0.0	3.7	0.0
Separation costs	0.0	3.3	0.0	34.0
Total expenses	408.8	432.5	818.9	885.2
Operating earnings	111.3	84.5	215.8	148.8
Interest expense	(9.5)	(9.0)	(18.8)	(10.1)
Other income, net	5.0	1.6	5.6	2.9
Earnings before income taxes	106.8	77.1	202.6	141.6
Provision for income taxes	(37.1)	(32.7)	(71.7)	(56.2)
Net earnings	69.7	44.4	130.9	85.4
Less: net earnings attributable to noncontrolling interest	1.5	2.0	3.7	4.0
Net earnings attributable to CDK	$ 68.2	$ 42.4	$ 127.2	$ 81.4
Net earnings attributable to CDK per common share:
Basic (usd per share)	$ 0.43	$ 0.26	$ 0.80	$ 0.51
Diluted (usd per share)	$ 0.43	$ 0.26	$ 0.80	$ 0.50
Weighted-average common shares outstanding:
Basic (shares)	158.7	160.7	158.9	160.7
Diluted (shares)	159.7	161.8	160.0	161.2
Dividends declared per common share (usd per share)	$ 0.135	$ 0.12	$ 0.255	$ 0.12

Condensed Consolidated and Combined Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net earnings	$ 69.7	$ 44.4	$ 130.9	$ 85.4
Other comprehensive loss:
Currency translation adjustments	(15.0)	(19.5)	(31.8)	(16.9)
Other comprehensive loss	(15.0)	(19.5)	(31.8)	(16.9)
Comprehensive income	54.7	24.9	99.1	68.5
Less: comprehensive income attributable to noncontrolling interest	1.5	2.0	3.7	4.0
Comprehensive income attributable to CDK	$ 53.2	$ 22.9	$ 95.4	$ 64.5

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2015	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 347.5	$ 408.2
Accounts receivable, net of allowances of $7.0 and $6.8, respectively	378.9	314.6
Other current assets	190.7	162.4
Total current assets	917.1	885.2
Property, plant and equipment, net	101.4	100.0
Other assets	223.3	224.1
Goodwill	1,187.3	1,209.9
Intangible assets, net	86.9	99.3
Total assets	2,516.0	2,518.5
Current liabilities:
Current maturities of long-term debt and capital lease obligations	26.4	13.0
Accounts payable	13.4	21.7
Accrued expenses and other current liabilities	159.2	154.4
Accrued payroll and payroll-related expenses	71.0	123.2
Short-term deferred revenues	173.4	186.1
Total current liabilities	443.4	498.4
Long-term debt and capital lease obligations	1,202.2	971.1
Long-term deferred revenues	157.7	162.9
Deferred income taxes	71.8	58.2
Other liabilities	45.1	43.8
Total liabilities	1,920.2	1,734.4
Equity:
Preferred stock, $0.01 par value: Authorized, 50.0 shares; issued and outstanding, none	0.0	0.0
Common stock, $0.01 par value: Authorized, 650.0 shares; issued, 160.3 and 161.3 shares, respectively; outstanding, 155.2 and 160.2 shares, respectively	1.6	1.6
Additional paid-in-capital	629.6	686.5
Retained earnings	167.8	81.2
Treasury stock, at cost: 5.1 and 1.1 shares, respectively	(240.6)	(50.7)
Accumulated other comprehensive income	19.8	51.6
Total CDK stockholders' equity	578.2	770.2
Noncontrolling interest	17.6	13.9
Total equity	595.8	784.1
Total liabilities and equity	$ 2,516.0	$ 2,518.5

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2015	Jun. 30, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 7.0	$ 6.8
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000.0	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	650,000,000.0	650,000,000
Common stock, shares issued	160,300,000	161,300,000
Common stock, shares outstanding	155,200,000	160,200,000
Treasury stock shares	5,100,000	1,100,000

Condensed Consolidated and Combined Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows from Operating Activities:
Net earnings	$ 130.9	$ 85.4
Adjustments to reconcile net earnings to cash flows provided by operating activities:
Depreciation and amortization	28.7	43.4
Deferred income taxes	19.0	2.3
Stock-based compensation expense	12.8	13.4
Pension expense	0.0	1.0
Other	(5.0)	(5.9)
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses:
Increase in accounts receivable	(69.8)	(27.7)
Increase in other assets	(41.6)	(18.0)
Decrease in accounts payable	(7.8)	(0.7)
(Decrease) increase in accrued expenses and other liabilities	(41.4)	11.8
Net cash flows provided by operating activities	25.8	105.0
Cash Flows from Investing Activities:
Capital expenditures	(18.1)	(14.5)
Proceeds from sale of property, plant and equipment	0.0	0.9
Capitalized software	(2.1)	(2.0)
Contributions to investments	(6.7)	0.0
Proceeds from investments	7.7	0.0
Proceeds from notes receivable from ADP and its affiliates	0.0	40.6
Net cash flows (used in) provided by investing activities	(19.2)	25.0
Cash Flows from Financing Activities:
Repayments of notes payable to ADP and its affiliates	0.0	(21.9)
Net transactions of parent company investment	0.0	(240.8)
Proceeds from long-term debt	250.0	1,750.0
Repayments of long-term debt and capital lease obligations	(6.7)	(753.1)
Dividend paid to ADP at spin-off	0.0	(825.0)
Dividends paid to stockholders	(40.8)	(19.4)
Repurchases of common stock	(261.0)	0.0
Proceeds from exercises of stock options	2.9	3.1
Excess tax benefit from stock-based compensation awards	7.0	6.8
Withholding tax payments for stock-based compensation awards	(8.5)	0.0
Dividend payments of CVR to noncontrolling owners	0.0	(5.4)
Payment of deferred financing costs	(1.6)	(9.0)
Recovery of dividends paid (Note 1E)	0.4	0.0
Net cash flows used in financing activities	(58.3)	(114.7)
Effect of exchange rate changes on cash and cash equivalents	(9.0)	(15.9)
Net change in cash and cash equivalents	(60.7)	(0.6)
Cash and cash equivalents, beginning of period	408.2	402.8
Cash and cash equivalents, end of period	347.5	402.2
Cash paid for:
Income taxes and foreign withholding taxes, net of refunds	86.3	10.6
Interest	$ 17.5	$ 1.7

Condensed Consolidated Statement of Equity - 6 months ended Dec. 31, 2015 - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-in-Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income	Total CDK Stockholders' Equity	Non-controlling Interest
Stockholders' equity, beginning balance at Jun. 30, 2015	$ 784.1	$ 1.6	$ 686.5	$ 81.2	$ (50.7)	$ 51.6	$ 770.2	$ 13.9
Common stock, shares outstanding, beginning balance at Jun. 30, 2015	160.2	161.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	$ 130.9			127.2			127.2	3.7
Foreign currency translation adjustments	(31.8)					(31.8)	(31.8)
Stock-based compensation expense and related dividend equivalents	11.9		12.1	(0.2)			11.9
Common stock issued for the exercise and vesting of stock-based compensation awards, net	(5.6)		(26.0)		20.4		(5.6)
Excess tax benefit from stock-based compensation awards	7.0		7.0				7.0
Cash dividends paid to stockholders	(40.8)			(40.8)			(40.8)
Repurchases of common stock	(260.3)		(50.0)		(210.3)		(260.3)
Correction of common stock issued in connection with the spin-off and dividends paid (in shares)		(1.0)
Correction of common stock issued in connection with the spin-off and dividends paid	$ 0.4			0.4			0.4
Common stock, shares outstanding, end balance at Dec. 31, 2015	155.2	160.3
Stockholders' equity, ending balance at Dec. 31, 2015	$ 595.8	$ 1.6	$ 629.6	$ 167.8	$ (240.6)	$ 19.8	$ 578.2	$ 17.6

Basis of Presentation

6 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

A. Spin-off

On April 9, 2014, the board of directors of Automatic Data Processing, Inc. (“ADP”) approved the spin-off of the Dealer Services business of ADP. On September 30, 2014, the spin-off became effective and ADP distributed 100% of the common stock of CDK Global, Inc. (the "Company" or "CDK") to the holders of record of ADP's common stock as of September 24, 2014 (the "spin-off").

Concurrent with the spin-off, the Company and ADP entered into several agreements providing for transition services and governing relationships between the Company and ADP. Refer to Notes 8 and 12 for further information.

B. Description of Business

The Company is a global provider of integrated technology solutions to the information technology and marketing/advertising markets of the automotive retail industry. The Company’s solutions enable automotive retailers and original equipment manufacturers (“OEMs”) to better manage, analyze, and grow their businesses. The Company classifies its operations into the following reportable segments: Automotive Retail North America, Automotive Retail International, and Digital Marketing. In addition, the Company has an “Other” segment, the primary components of which are corporate allocations and other expenses not recorded in the segment results. Refer to Note 13 for further information.

C. Basis of Preparation

The financial statements presented herein represent (i) the results of operations for the three months and six months ended December 31, 2015 and the three months ended December 31, 2014 and the balance sheets as of December 31, 2015 and June 30, 2015 with the Company reporting as a separate publicly-traded company (referred to as "consolidated financial statements") and (ii) the results of operations for the six months ended December 31, 2014, which includes the period prior to the spin-off when the Company was a wholly owned subsidiary of ADP (referred to as "combined financial statements"). Throughout this Quarterly Report on Form 10-Q when we refer to the "financial statements," we are referring to the "condensed consolidated and combined financial statements," unless the context indicates otherwise.

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect assets, liabilities, revenues, and expenses that are reported in the accompanying financial statements and footnotes thereto. Actual results may differ from those estimates. These financial statements present the consolidated and combined financial position and results of operations of the Company, which was under common control and common management by ADP until the spin-off. The historical financial results in the accompanying financial statements presented may not be indicative of the results that would have been achieved had the Company operated as a separate, stand-alone entity.

The accompanying financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods. Interim financial results are not necessarily indicative of financial results for a full year. The financial statements in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated and combined financial statements and related notes of the Company as of and for the fiscal year ended June 30, 2015 included in the Annual Report on Form 10-K.

Prior to the spin-off, the financial statements in this Quarterly Report on Form 10-Q included costs for facilities, functions, and services used by the Company at shared ADP sites and costs for certain functions and services performed by centralized ADP organizations and directly charged to the Company based on revenue and headcount. Following the spin-off, the Company performs these functions using internal resources or purchased services, certain of which were provided by ADP during a transitional period that ended September 30, 2015 pursuant to the transition services agreement. Refer to Note 12 for further information on agreements entered into with ADP as a result of the spin-off. The expenses allocated to the Company for these services are not necessarily indicative of the expenses that would have been incurred if the Company had been a separate, independent entity and had otherwise managed these functions. The Company’s financial statements include the following transactions with ADP or its affiliates:

Separation Costs. The financial statements of the Company include certain incremental costs that are directly attributable to the spin-off. Prior to the spin-off, separation costs were paid by ADP and allocated to the Company. These costs were related to professional services and amounted to $3.3 million and $34.0 million for the three and six months ended December 31, 2014, respectively. The Company did not incur any separation costs during the three and six months ended December 31, 2015.

Overhead Expenses. Prior to the spin-off, the financial statements of the Company included an allocation of certain general expenses of ADP and its affiliates, which were in support of the Company, including departmental costs for travel, procurement, treasury, tax, internal audit, risk management, real estate, benefits, and other corporate and infrastructure costs. The Company was allocated overhead costs related to ADP's shared functions of $7.1 million for the three and six months ended December 31, 2014. The Company was not allocated any overhead costs related to ADP's shared functions during the three and six months ended December 31, 2015. These costs were reported in selling, general, and administrative expenses on the consolidated and combined statements of operations. These allocations were based on a variety of factors. The allocation of the travel department costs was based on the estimated percentage of travel directly related to the Company. The allocation of benefits was based on the approximate benefit claims or payroll costs directly related to the Company as compared to ADP’s total claims and payroll costs. The allocation of real estate management costs was based on the estimated percentage of square footage of facilities for the Company's business that was managed by the ADP corporate real estate department in relation to ADP’s total managed facilities. All other allocations were based on an estimated percentage of support staff time or system utilization in comparison to ADP as a whole. Management believes that these allocations were made on a reasonable basis.

Royalty Fees. Prior to the spin-off, the financial statements included a trademark royalty fee charged by ADP to the Company based on revenues for licensing fees associated with the use of the ADP trademark. The Company was charged trademark royalty fees of $5.7 million for the three and six months ended December 31, 2014. The Company was not charged trademark royalty fees for the three and six months ended December 31, 2015. These charges were included in selling, general, and administrative expenses on the consolidated and combined statements of operations. Management believes that these allocations were made on a reasonable basis.

Services Received from Affiliated Companies. Prior to the spin-off, certain systems development functions were outsourced to an ADP shared services facility located in India. This facility provided services to the Company as well as to other ADP affiliates. The Company purchased services from this facility of $5.5 million for the three and six months ended December 31, 2014. These functions were no longer outsourced to an ADP shared services facility for the three and six months ended December 31, 2015. The charge for these services was included within cost of revenues on the consolidated and combined statements of operations.

Notes Receivable from ADP and its Affiliates and Notes Payable to ADP and its Affiliates. Prior to the spin-off, notes receivable from ADP and its affiliates and notes payable to ADP and its affiliates were settled; therefore, there were no outstanding notes receivable from or payable to ADP and its affiliates in the accompanying consolidated balance sheets as of December 31, 2015 and June 30, 2015. Interest income on notes receivable from ADP and its affiliates was $0.2 million for the three and six months ended December 31, 2014. The Company recorded interest income on notes receivable from ADP and its affiliates within other income, net on the consolidated and combined statements of operations. Interest expense on notes payable to ADP and its affiliates was $0.2 million for the three and six months ended December 31, 2014. The Company recorded interest expense on notes payable to ADP and its affiliates within interest expense on the consolidated and combined statements of operations. There was no interest income or interest expense under similar arrangements for the three and six months ended December 31, 2015.

Other Services. Prior to the spin-off, the Company received other services from ADP and its affiliates (e.g., payroll processing services). The Company was charged primarily at a fixed rate per employee per month for such payroll processing services. Expenses incurred for such services were $0.4 million for the three and six months ended December 31, 2014. The Company did not incur expenses for such services during the three and six months ended December 31, 2015. These expenses were included in selling, general, and administrative expenses on the consolidated and combined statements of operations.

D. Financial Statement Revisions

During the fiscal year ended June 30, 2015, the Company elected to make revisions to previously reported results of operations, financial condition, and cash flows as discussed below. The Company previously reported the revisions in its Quarterly Report on Form 10-Q for the three and nine months ended March 31, 2015 and its Registration Statement on Form S-4 and included the effects of the revisions in the quarterly financial results included in its Annual Report on Form 10-K for the year ended June 30, 2015. The nature of the revisions discussed below is consistent with the revisions reflected in those financial statements.

The Company previously reported the condensed consolidated and combined results of operations and comprehensive income for the three and six months ended December 31, 2014 and cash flows for the six months ended December 31, 2014 in its Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2014. The Company assessed the materiality of the misstatements discussed below on prior period financial statements and concluded that while such revisions are immaterial to the condensed consolidated and combined results of operations and comprehensive income for the three and six months ended December 31, 2014 and cash flows for the six months ended December 31, 2014, the condensed consolidated and combined financial statements should be revised to provide greater comparability to the financial statements for the periods occurring after the spin-off.

Historically, leases of certain hardware components included within Dealer Management Systems ("DMS") and integrated solutions were accounted for as operating leases and revenues were recognized in accordance with Accounting Standards Codification ("ASC") 840, "Leases." The Company has now determined that these hardware components should be reported as sales-type leases in accordance with ASC 840, "Leases." In accordance with sales-type lease accounting, revenues for leased hardware are recognized upon installation and receivables are recorded based on the present value of the minimum lease payments at the beginning of the lease term. The Company's consolidated and combined financial statements have been revised to reflect sales-type lease accounting for these hardware components as well as the related income tax effects. This revision impacted the Automotive Retail North America and Automotive Retail International segments and is immaterial. Segment revenues and earnings before income taxes in Note 13 for the three and six months ended December 31, 2014 include the effects of this revision.

The Company revised the presentation of the noncontrolling interest ("NCI") in CVR to comply with ASC 810, "Consolidations." Accordingly, earnings, comprehensive income, and net assets in CVR which are not attributable to the Company have been separately presented within the consolidated and combined financial statements. Historically, the NCI in CVR's earnings was included within selling, general, and administrative expenses in the consolidated and combined statements of operations, and the NCI in CVR's net assets was included within other liabilities in the consolidated and combined balance sheets. This revision impacted the Automotive Retail North America segment, and earnings before income taxes in Note 13 for the three and six months ended December 31, 2014 reflects this revision.

The Company revised the classification of net transactions of parent company investment from investing activities to financing activities in the consolidated and combined statement of cash flows for the six months ended December 31, 2014 due to the fact that amounts due to and from ADP were presented as parent company's net investment within equity on the balance sheet.

The following are selected line items from the Company's consolidated and combined financial statements illustrating the effect of these immaterial revisions:

Condensed Consolidated and Combined Statements of Operations



	Three Months Ended December 31, 2014
			Adjustments
	As Reported		Hardware			NCI			As Revised
Revenues	$	521.2	$	(4.2	)	$	—		$	517.0
Cost of revenues	326.9		(3.6		)	—			323.3
Selling, general and administrative	107.8		0.1			(2.0		)	105.9
Total expenses	438.0		(3.5		)	(2.0		)	432.5
Operating earnings	83.2		(0.7		)	2.0			84.5
Other income, net	1.0		0.6			—			1.6
Earnings before income taxes	75.2		(0.1		)	2.0			77.1
Net earnings	42.5		(0.1		)	2.0			44.4
Less: net earnings attributable to noncontrolling interest	—		—			2.0			2.0
Net earnings attributable to CDK	$	42.5	$	(0.1	)	$	—		$	42.4
Basic earnings attributable to CDK per share	$	0.26	$	—		$	—		$	0.26
Diluted earnings attributable to CDK per share	$	0.26	$	—		$	—		$	0.26



	Six Months Ended December 31, 2014
				Adjustments
	As Reported			Hardware			NCI			As Revised
Revenues	$	1,037.2		$	(3.2	)	$	—		$	1,034.0
Cost of revenues	636.7			(1.9		)	—			634.8
Selling, general and administrative	220.2			0.2			(4.0		)	216.4
Total expenses	890.9			(1.7		)	(4.0		)	885.2
Operating earnings	146.3			(1.5		)	4.0			148.8
Other income, net	1.7			1.2			—			2.9
Earnings before income taxes	137.9			(0.3		)	4.0			141.6
Provision for income taxes	(56.3		)	0.1			—			(56.2		)
Net earnings	81.6			(0.2		)	4.0			85.4
Less: net earnings attributable to noncontrolling interest	—			—			4.0			4.0
Net earnings attributable to CDK	$	81.6		$	(0.2	)	$	—		$	81.4
Basic earnings attributable to CDK per share	$	0.51		$	—		$	—		$	0.51
Diluted earnings attributable to CDK per share	$	0.51		$	—		$	—		$	0.50

Condensed Consolidated and Combined Statements of Comprehensive Income



	Three Months Ended December 31, 2014
				Adjustments
	As Reported			Hardware			NCI		As Revised
Net earnings	$	42.5		$	(0.1	)	$	2.0	$	44.4
Other comprehensive loss:
Currency translation adjustments	(19.4		)	(0.1		)	—		(19.5		)
Other comprehensive loss	(19.4		)	(0.1		)	—		(19.5		)
Comprehensive income	23.1			(0.2		)	2.0		24.9
Less: comprehensive income attributable to noncontrolling interest	—			—			2.0		2.0
Comprehensive income attributable to CDK	$	23.1		$	(0.2	)	$	—	$	22.9



	Six Months Ended December 31, 2014
				Adjustments
	As Reported			Hardware			NCI		As Revised
Net earnings	$	81.6		$	(0.2	)	$	4.0	$	85.4
Other comprehensive loss:
Currency translation adjustments	(16.8		)	(0.1		)	—		(16.9		)
Other comprehensive loss	(16.8		)	(0.1		)	—		(16.9		)
Comprehensive income	64.8			(0.3		)	4.0		68.5
Less: comprehensive income attributable to noncontrolling interest	—			—			4.0		4.0
Comprehensive income attributable to CDK	$	64.8		$	(0.3	)	$	—	$	64.5

Condensed Consolidated and Combined Statement of Cash Flows



	Six Months Ended December 31, 2014
				Adjustments
	As Reported			Hardware			NCI			Parent Investment		As Revised
Cash Flows from Operating Activities:
Net earnings	$	81.6		$	(0.2	)	$	4.0		—		$	85.4
Adjustments to reconcile net earnings to cash flows provided by operating activities:
Depreciation and amortization	51.7			(8.3		)	—			—		43.4
Deferred income taxes	2.4			(0.1		)	—			—		2.3
Other	(1.7		)	(0.2		)	(4.0		)	—		(5.9		)
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses:
Increase in accounts receivable	(27.5		)	(0.2		)	—			—		(27.7		)
(Increase)/decrease in other assets	(21.0		)	3.0			—			—		(18.0		)
(Decrease)/increase in accrued expenses and other liabilities	7.1			(0.7		)	5.4			—		11.8
Net cash flows provided by/(used in) operating activities	106.3			(6.7		)	5.4			—		105.0

Cash Flows from Investing Activities:
Capital expenditures	(21.2		)	6.7			—			—		(14.5		)
Net transactions of parent company investment	(240.8		)	—			—			240.8		—
Net cash flows (used in)/provided by investing activities	(222.5		)	6.7			—			240.8		25.0

Cash Flows from Financing Activities:
Net transactions of parent company investment	—			—			—			(240.8	)	(240.8		)
Dividend payment to noncontrolling owners	—			—			(5.4		)	—		(5.4		)
Net cash flows provided by/(used in) financing activities	131.5			—			(5.4		)	(240.8	)	(114.7		)

E. Spin-off Common Stock Issued

During the three months ended September 30, 2015, the Company became aware that 1.0 million shares of common stock were inadvertently issued and distributed to ADP at the spin-off with respect to certain unvested ADP equity awards. The Company previously reported that 160.6 million shares were issued in connection with the spin-off, which was overstated by 1.0 million shares. In addition, dividends paid to stockholders in fiscal 2015 were overstated by $0.4 million. The Company assessed the materiality and concluded that the impact was not material to previously reported results of operations, financial condition, or cash flows. During the three months ended September 30, 2015, the Company and ADP took corrective action to cancel the 1.0 million shares of common stock effective as of September 30, 2014 and the Company recovered the $0.4 million of cumulative dividends paid on such shares, thereby increasing the Company's retained earnings. The effects of these adjustments were reflected in the accompanying financial statements for the three and six months ended December 31, 2015.

F. Significant Accounting Policies

Revenue Recognition. Revenues are generated from software licenses, hosting arrangements, hardware sales and leases, support and maintenance, professional services, advertising, and digital marketing, as well as certain transactional services.

The Company recognizes software related revenue (on-site) in accordance with the provisions of ASC 985-605, “Software-Revenue Recognition,” and non-software related revenues, upfront hardware sales, and software delivered under a hosted model in accordance with ASC 605, "Revenue Recognition."

In general, revenue is recognized when all of the following criteria have been met:


•	persuasive evidence of an arrangement exists;


•	delivery has occurred or services have been rendered;


•	fees are fixed or determinable; and


•	collection of the revenue is reasonably assured.

The following are the Company’s major components of revenue:

•

Bundled sales of DMS and integrated solutions. In the Automotive Retail North America and Automotive Retail International segments, the Company receives fees for product installation, fees for software licenses, ongoing software support and maintenance of DMS, and other integrated solutions that are either hosted by the Company or installed on-site at the client’s location. Revenues for term licenses are recognized ratably over the software license term, as vendor-specific objective evidence of the fair values of the individual elements in the sales arrangement does not exist. Revenue recognition commences at the installation dates, when client acceptance has occurred, and collectability of a determinable amount is probable. In the case of hosted applications, the client does not have the contractual right to take possession of the software and the items delivered at the outset of the contract (e.g., installation, training, etc.) do not have value to the client without the software license and ongoing support and maintenance. Any upfront fees charged in the case of hosted arrangements are recognized ratably over the expected benefit period of the arrangement, typically five years. The unrecognized portion of these revenue elements is recorded as deferred revenue.

The Company also offers various hardware elements in connection with DMS and integrated solution sales, which in some instances are considered sales-type leases under ASC 840, "Leases." Revenues related to leased hardware are recognized upon installation and receivables are recorded based on the present value of the minimum lease payments at the beginning of the lease term. Effective July 1, 2015, for new arrangements, the Company offers hardware on a service basis, meaning no specific assets are identified or a substantive right of substitution exists. Hardware service revenues are recognized over the life of the arrangements. As a result, the legacy portfolio of sales-type lease receivables is expected to decline over time.

•

Transactional revenues. The Company receives revenues on a fee per transaction processed basis in connection with providing auto retailers interfaces with third parties to process credit reports, vehicle registrations, data updates, and automotive equity mining. Transactional revenues are recorded in accordance with ASC 605, "Revenue Recognition." Delivery occurs at the time the services are rendered. Transactional revenues are recorded in revenues gross of costs incurred for credit report processing, vehicle registrations, and automotive equity mining as the Company is contractually responsible for providing the service, software, and/or connectivity to the clients, and therefore, the Company is the primary obligor under ASC 605, "Revenue Recognition."


•	Digital Marketing services. The Company receives revenues from the placement of advertising for clients and providing websites and related advertising and marketing services. Digital marketing revenues are recorded in accordance with ASC 605, "Revenue Recognition" as delivery occurs at the time the services are rendered.

Taxes collected from customers and remitted to governmental authorities are presented on a net basis; that is, such taxes are excluded from revenues.

Deferred Costs. Costs to deliver services are expensed to cost of revenues as incurred with the exception of specific costs directly related to transition or installation activities, including the payroll-related costs for the Company's implementation and training teams, as well as commission costs for the sale. These costs are deferred and expensed proportionately over the same period that the deferred revenues are recognized as revenues. Deferred amounts are monitored regularly to ensure appropriate asset and expense recognition. Current deferred costs classified within other current assets on the consolidated balance sheets were $102.7 million and $105.3 million as of December 31, 2015 and June 30, 2015, respectively. Long-term deferred costs classified within other assets on the consolidated balance sheets were $138.7 million and $144.7 million as of December 31, 2015 and June 30, 2015, respectively.

Computer Software to be Sold, Leased, or Otherwise Marketed. The Company's policy provides for the capitalization of certain costs of computer software to be sold, leased, or otherwise marketed. The Company's policy provides for the capitalization of all software production costs upon reaching technological feasibility for a specific product. Technological feasibility is attained when software products have a completed working model whose consistency with the overall product design has been confirmed by testing. Costs incurred prior to the establishment of technological feasibility are expensed as incurred. The establishment of technological feasibility requires judgment by management and in many instances is only attained a short time prior to the general release of the software. Maintenance-related costs are expensed as incurred.

Pursuant to this policy, the Company recognized expenses of $39.1 million and $41.7 million for the three months ended December 31, 2015 and 2014, respectively, and $78.6 million and $83.9 million for the six months ended December 31, 2015 and 2014, respectively. These expenses were classified within cost of revenues on the consolidated and combined statements of operations.

Stock-Based Compensation. Certain employees (a) have been granted stock options to purchase shares of the Company’s common stock and (b) have been granted restricted stock or restricted stock units under which shares of the Company's common stock vest based on the passage of time or achievement of performance conditions.

The Company recognizes stock-based compensation expense in net earnings based on the fair value of the award on the date of the grant. The Company determines the fair value of stock options issued using a binomial option pricing model. The binomial option-pricing model considers a range of assumptions related to volatility, dividend yield, risk-free interest rate, and employee exercise behavior. Expected volatilities utilized in the binomial option pricing model are based on a combination of implied market volatilities and historical volatilities of peer companies. Similarly, the dividend yield is based on historical experience and expected future dividend payments. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The binomial option pricing model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of a stock option grant is derived from the output of the binomial model and represents the period of time that options granted are expected to be outstanding.

The grant date fair value of restricted stock and restricted stock units that vest upon achievement of service conditions is based on the closing price of the Company's common stock on the date of grant. The Company also grants performance-based awards that vest over a performance period. Certain performance-based awards are further subject to adjustment (increase or decrease) based on a market condition defined as total shareholder return of the Company’s common stock compared to a peer group of companies. The fair value of performance-based awards subject to a market condition is determined using a Monte Carlo simulation model. The principal variable assumptions utilized in determining the grant date fair value of performance-based awards subject to a market condition include the risk-free rate, stock volatility, dividend yield, and correlations between the Company's stock price and the stock prices of the peer group of companies.

Fair Value of Financial Instruments. The Company determines the fair value of financial instruments in accordance with accounting standards pertaining to fair value measurements. Such standards define fair value and establish a framework for measuring fair value in accordance with GAAP. Cash and cash equivalents, accounts receivable, other current assets, accounts payable, and other current liabilities are reflected in the consolidated balance sheets at cost, which approximates fair value due to the short-term nature of these instruments. The carrying value of the Company's term loan facilities (as described in Note 6), including accrued interest, approximates fair value based on the Company's current estimated incremental borrowing rate for similar types of arrangements. The approximate aggregate fair value of the Company's senior notes as of December 31, 2015 was $734.7 million based on quoted market prices for the same or similar instruments and the carrying value was $750.0 million. The term loan facilities and senior notes are considered Level 2 fair value measurements in the fair value hierarchy.

New Accounting Pronouncements	6 Months Ended
New Accounting Pronouncements	Dec. 31, 2015
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Pronouncements In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes." ASU 2015-17 requires that deferred tax assets and liabilities be classified as non-current in a classified statement of financial position. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. The Company elected to adopt ASU 2015-17 during the three months ended December 31, 2015 on a prospective basis. The Company concluded that the simplified presentation requirement permitted by ASU 2015-17 is preferable because the current and non-current classification does not necessarily reflect when the temporary difference will reverse and become a taxable or deductible item. As a result, deferred tax assets and liabilities are presented as long-term in the consolidated balance sheet as of December 31, 2015. Because ASU 2015-17 was adopted prospectively, the Company did not adjust the classification of deferred tax assets and liabilities in the consolidated balance sheet as of June 30, 2015. The consolidated balance sheet as of June 30, 2015 includes current deferred tax assets of $13.0 million, which are included within other current assets, and current deferred tax liabilities of $1.4 million, which are included within accrued expenses and other current liabilities. Recently Issued Accounting Pronouncements In May 2015, the FASB issued ASU 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 requires that if the arrangement contains a software license, the customer would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for under ASC 350-40; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. ASU 2015-05 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2015. The adoption of ASU 2015-05 will not have a material impact on the Company's consolidated and combined results of operations, financial condition, or cash flows. In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force)." ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual and interim periods within those annual periods beginning after December 15, 2015. The adoption of ASU 2014-12 will not have an impact on the Company's consolidated and combined results of operations, financial condition, or cash flows. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue depicting the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will also result in enhanced revenue related disclosures. In July 2015, the FASB decided to defer the effective date of ASU 2014-09 by one year and subsequently issued ASU 2015-14 "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date." As a result, this standard will be effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017. The Company has not yet determined the impact of ASU 2014-09 on its consolidated and combined results of operations, financial condition, or cash flows.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=51655806&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51655806&loc=d3e725-108305

+ Details

Restructuring

6 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Restructuring

During the fiscal year ended June 30, 2015, the Company initiated a three-year business transformation plan intended to increase operating efficiency and improve the Company's cost structure within its global operations. The business transformation plan is expected to produce significant benefits in the Company’s long-term business performance.

Restructuring expenses associated with the business transformation plan included employee-related costs, which represent severance and other termination-related benefits calculated based on long-standing benefit practices and local statutory requirements, and contract termination costs. The Company expects to incur total restructuring expenses under the business transformation plan of approximately $80.0 million through fiscal 2018. The Company will continue to evaluate its estimate of total restructuring expenses as it executes the business transformation plan. The Company recognized $1.8 million and $3.7 million of restructuring expenses for the three and six months ended December 31, 2015, respectively. Since the inception of the business transformation plan in the fourth quarter of fiscal 2015, the Company has recognized cumulative restructuring expenses of $6.1 million. Restructuring expenses are presented separately on the consolidated and combined statement of operations. Restructuring expenses are recorded in the "Other" segment, as these initiatives are predominantly centrally directed and are not included in internal measures of segment operating performance.

Accruals for restructuring expenses were included within accrued expenses and other current liabilities on the consolidated balance sheets as of December 31, 2015 and June 30, 2015. The following table summarizes the activity for the restructuring expenses and the related accruals for the six months ended December 31, 2015:



	Employee-Related Costs			Contract Termination Costs			Total Costs
Balance as of June 30, 2015	$	2.4		$	—		$	2.4
Charges	3.3			0.8			4.1
Cash payments	(3.2		)	(0.1		)	(3.3		)
Adjustments	(0.4		)	—			(0.4		)
Foreign exchange	—			—			—
Balance as of December 31, 2015	$	2.1		$	0.7		$	2.8

The Company did not incur any restructuring expenses under a comparable business transformation plan during the three and six months ended December 31, 2014.

Earnings per Share

6 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings per Share

The numerator for both basic and diluted earnings per share is net earnings attributable to CDK. The denominator for basic and diluted earnings per share is based upon the weighted-average number of shares of the Company's common stock outstanding during the reporting periods. Diluted earnings per share also reflects the dilutive effect of unexercised in-the-money stock options and unvested restricted stock.

Holders of certain stock-based compensation awards are eligible to receive dividends as described in Note 7. Net earnings allocated to participating securities were not significant for the three and six months ended December 31, 2015 and 2014.

The following table summarizes the components of basic and diluted earnings per share:



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
Net earnings attributable to CDK	$	68.2	$	42.4	$	127.2	$	81.4

Weighted-average shares outstanding:
Basic	158.7		160.7		158.9		160.7
Effect of employee stock options	0.6		0.6		0.6		0.3
Effect of employee restricted stock	0.4		0.5		0.5		0.2
Diluted	159.7		161.8		160.0		161.2

Basic earnings attributable to CDK per share	$	0.43	$	0.26	$	0.80	$	0.51
Diluted earnings attributable to CDK per share	$	0.43	$	0.26	$	0.80	$	0.50

The weighted-average number of shares outstanding used in the calculation of diluted earnings per share does not include the effect of the following anti-dilutive securities.



	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2015	2014	2015	2014
Stock-based awards	0.2	0.1	0.2	—

Goodwill and Intangible Assets, Net

6 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Changes in goodwill for the six months ended December 31, 2015 were as follows:



	Automotive Retail North America			Automotive Retail International			Digital Marketing		Total
Balance as of June 30, 2015	$	430.3		$	403.5		$	376.1	$	1,209.9
Currency translation adjustments	(2.8		)	(19.8		)	—		(22.6		)
Balance as of December 31, 2015	$	427.5		$	383.7		$	376.1	$	1,187.3

Components of intangible assets, net were as follows:



	December 31, 2015							June 30, 2015
	Original Cost		Accumulated Amortization			Intangible Assets, net		Original Cost		Accumulated Amortization			Intangible Assets, net
Software	$	116.2	$	(96.6	)	$	19.6	$	115.6	$	(92.0	)	$	23.6
Client lists	195.3		(130.0		)	65.3		199.1		(125.5		)	73.6
Trademarks	25.0		(23.2		)	1.8		25.0		(22.9		)	2.1
Other intangibles	2.9		(2.7		)	0.2		2.4		(2.4		)	—
	$	339.4	$	(252.5	)	$	86.9	$	342.1	$	(242.8	)	$	99.3

In October 2014 following the separation from ADP, the Company evaluated its branding strategy and the trademark names under which each of its businesses will operate. The Company determined that the Cobalt trademark used by the Digital Marketing segment will no longer be used. Therefore, the Company revised the estimated useful life assigned to the Cobalt trademark. The Company recognized accelerated amortization on the trademark of $15.6 million in cost of revenues during the three and six months ended December 31, 2014. The effect of this change in estimate on both basic and diluted earnings per share, net of the related tax effect, was $0.06 for both the three and six months ended December 31, 2014.

Other intangibles consist primarily of purchased rights, covenants, and patents (acquired directly or through acquisitions). All of the intangible assets have finite lives and, as such, are subject to amortization. The weighted-average remaining useful life of intangible assets is 6 years (3 years for software and software licenses, 7 years for customer contracts and lists, and 3 years for trademarks). Amortization of intangible assets was $6.4 million and $22.9 million for the three months ended December 31, 2015 and 2014, respectively, and $12.9 million and $30.5 million for the six months ended December 31, 2015 and 2014, respectively.

Estimated amortization expenses of the Company's existing intangible assets as of December 31, 2015 were as follows:



	Amount
Six months ending June 30, 2016	$	14.0
Twelve months ending June 30, 2017	20.1
Twelve months ending June 30, 2018	15.3
Twelve months ending June 30, 2019	8.5
Twelve months ending June 30, 2020	6.9
Twelve months ending June 30, 2021	6.7
Thereafter	15.4
	$	86.9

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Debt

6 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt

Debt comprised of the following as of December 31, 2015 and June 30, 2015:



	December 31, 2015			June 30, 2015
Revolving credit facility	$	—		$	—
2019 term loan facility	234.4			240.6
2020 term loan facility	250.0			—
3.30% senior notes, due 2019	250.0			250.0
4.50% senior notes, due 2024	500.0			500.0
Capital lease obligations	3.5			1.5
Unamortized debt financing costs	(9.3		)	(8.0		)
Total debt and capital lease obligations	1,228.6			984.1
Current maturities of long-term debt and capital lease obligations	26.4			13.0
Total long-term debt and capital lease obligations	$	1,202.2		$	971.1

Revolving Credit Facility

The Company has a five-year senior unsecured revolving credit facility, which was undrawn as of December 31, 2015. The revolving credit facility provides up to $300.0 million of borrowing capacity and includes a sub-limit of up to $100.0 million for loans in Euro and Sterling. In addition, the revolving credit facility contains an accordion feature that allows for an increase in the available borrowing capacity under the revolving credit facility of up to $100.0 million, subject to the agreement of lenders under the revolving credit facility or other financial institutions that become lenders to extend commitments as part of the increased revolving credit facility. Borrowings under the revolving credit facility are available for general corporate purposes. The revolving credit facility will mature on September 30, 2019, subject to no more than two one-year extensions if lenders holding a majority of the revolving commitments approve such extensions.

The revolving credit facility is unsecured and loans thereunder bear interest, at the Company's option, at (a) the rate at which deposits in the applicable currency are offered in the London interbank market (or, in the case of borrowings in Euro, the European interbank market) plus margins varying from 1.125% to 2.000% per annum based on the Company's senior, unsecured non-credit-enhanced, long-term debt ratings from Standard & Poor's Ratings Group and Moody's Investors Services Inc. (the "Ratings") or (b) solely in the case of U.S. dollar loans, (i) the highest of (A) the prime rate of JPMorgan Chase Bank, N.A., (B) a rate equal to the average of the overnight federal funds rate with a maturity of one day plus a margin of 0.500% per annum and (C) the rate at which dollar deposits are offered in the London interbank market for a one-month interest period plus 1.000% plus (ii) margins varying from 0.125% to 1.000% per annum based on the Ratings. The unused portion of the revolving credit facility is subject to commitment fees ranging from 0.125% to 0.350% per annum based on the Ratings.

Term Loan Facilities

The Company has two five-year $250.0 million senior unsecured term loan facilities that mature on September 16, 2019 (the "2019 term loan facility") and December 14, 2020 (the "2020 term loan facility"), respectively. The Company entered into the 2020 term loan facility on December 14, 2015. Borrowings under the 2020 term loan facility were used for general corporate purposes, which included the repurchase of shares of the Company's common stock as part of the new return of capital plan and pursuant to the accelerated share repurchase ("ASR") discussed further in Note 11. The 2019 term loan facility and 2020 term loan facility are together referred to as the "term loan facilities." The term loan facilities are both subject to amortization in equal quarterly installments of 1.25% of the aggregate principal amount of the term loans made on the respective closing dates, with any unpaid principal amount to be due and payable on the maturity date.

The term loan facilities bear interest at the same calculations as are applicable to dollar loans under the revolving credit facility. The interest rate per annum on the 2019 term loan facility was 1.93% and 1.69% as of December 31, 2015 and June 30, 2015, respectively. The interest rate per annum on the 2020 term loan facility was 1.84% as of December 31, 2015.

Restrictive Covenants and Other Matters

The revolving credit facility and the term loan facilities are together referred to as the "credit facilities." The credit facilities contain various covenants and restrictive provisions that limit the Company's subsidiaries' ability to incur additional indebtedness; the Company's ability to consolidate or merge with other entities; and the Company's subsidiaries' ability to incur liens, enter into sale and leaseback transactions, and enter into agreements restricting the ability of the Company's subsidiaries to pay dividends. If the Company fails to perform the obligations under these and other covenants, the credit facilities could be terminated and any outstanding borrowings, together with accrued interest, under the credit facilities could be declared immediately due and payable. The credit facilities also has, in addition to customary events of default, an event of default triggered by the acceleration of the maturity of any other indebtedness the Company may have in an aggregate principal amount in excess of $75.0 million.

The credit facilities also contain financial covenants that provide that (i) the ratio of total consolidated indebtedness to consolidated EBITDA shall not exceed 3.50 to 1.00 and (ii) the ratio of consolidated EBITDA to consolidated interest expense shall be a minimum of 3.00 to 1.00.

Senior Notes

On October 14, 2014, the Company completed an offering of 3.30% senior notes with a $250.0 million aggregate principal amount due in 2019 (the "2019 notes") and 4.50% senior notes with a $500.0 million aggregate principal amount due in 2024 (the "2024 notes" and together with the 2019 notes, the "senior notes"). The issuance price of the senior notes was equal to the stated value. Interest is payable semi-annually on April 15 and October 15 of each year, and payment commenced on April 15, 2015. The interest rate payable on each applicable series of senior notes is subject to adjustment from time to time if the credit ratings assigned to any series of senior notes by the rating agencies is downgraded (or subsequently upgraded). The 2019 notes will mature on October 15, 2019 and the 2024 notes will mature on October 15, 2024. The senior notes are general unsecured obligations of the Company and are not guaranteed by any of the Company's subsidiaries.

The senior notes rank equally in right of payment with the Company's existing and future unsecured unsubordinated obligations, including the credit facilities. The senior notes contain covenants restricting the Company's ability to incur additional indebtedness secured by liens, engage in sale/leaseback transactions, and merge, consolidate, or transfer all or substantially all of the Company's assets.

The senior notes are redeemable at the Company's option prior to September 15, 2019 for the 2019 notes and prior to July 15, 2024 for the 2024 notes at a redemption price equal to the greater of (i) 100% of the aggregate principal amount of the senior notes to be redeemed, and (ii) the sum of the present value of the remaining scheduled payments (as defined in the agreement), plus in each case, accrued and unpaid interest thereon. Subsequent to September 15, 2019 and July 15, 2024, the redemption price for the 2019 notes and the 2024 notes, respectively, will equal 100% of the aggregate principal amount of the notes redeemed, plus accrued and unpaid interest thereon. The senior notes are also subject to a change of control provision whereby each holder of the senior notes has the right to require the Company to purchase all or a portion of such holder's senior notes at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest upon the occurrence of both a change of control and a decline in the rating of the senior notes.

Capital Lease Obligations

The Company has lease agreements for equipment, which are classified as capital lease obligations. The Company recognized the capital lease obligations and related leased equipment assets based on the present value of the minimum lease payments at lease inception.

Unamortized Debt Financing Costs

As of December 31, 2015 and June 30, 2015, gross debt issuance costs related to debt instruments were $11.1 million and $9.2 million, respectively, net of accumulated amortization of $1.8 million and $1.2 million, respectively. Additional debt issuance costs of $1.9 million were capitalized for the 2020 term loan facility. Debt financing costs are amortized over the terms of the related debt instruments to interest expense on the consolidated and combined statements of operations.

The Company's aggregate scheduled maturities of the long-term debt and capital lease obligations as of December 31, 2015 were as follows:



	Amount
Twelve months ending December 31, 2016	$	26.4
Twelve months ending December 31, 2017	26.4
Twelve months ending December 31, 2018	25.7
Twelve months ending December 31, 2019	459.4
Twelve months ending December 31, 2020	200.0
Thereafter	500.0
Total debt and capital lease obligations	1,237.9
Unamortized deferred financing costs	(9.3		)
Total debt and capital lease obligations, net of unamortized deferred financing costs	$	1,228.6

Stock-Based Compensation

6 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Incentive Equity Awards Converted from ADP Awards

On October 1, 2014, ADP's outstanding equity awards for employees of the Company were converted into equity awards of CDK at a ratio of 2.757 CDK equity awards for every ADP equity award held prior to the spin-off. The converted equity awards have the same terms and conditions as the ADP equity awards. As a result, the Company issued 2.3 million stock options with a weighted-average exercise price of $19.64, 0.7 million time-based restricted shares, and 0.2 million performance-based restricted shares upon completion of the conversion of existing ADP equity awards into the Company's equity awards. As the conversion was considered a modification of an award in accordance with ASC 718, "Compensation - Stock Compensation," the Company compared the fair value of the award immediately prior to the spin-off to the fair value immediately after the spin-off to measure the incremental compensation cost. The fair values immediately prior to and after spin-off were estimated using a binomial option pricing model. The conversion resulted in an increase in the fair value of the awards by $1.4 million, of which $1.3 million was recognized from the date of spin-off to December 31, 2015 and the remaining $0.1 million will be recognized in net earnings prospectively throughout the year ending June 30, 2016.

Incentive Equity Awards Granted by the Company

The 2014 Omnibus Award Plan ("2014 Plan") provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards, and performance compensation awards to employees, directors, officers, consultants, and advisors, and those of the Company's affiliates. The 2014 Plan provides for an aggregate of 12.0 million shares of the Company's common stock to be reserved for issuance and is effective for a period of ten years.

Prior to the spin-off, all employee equity awards (stock options and restricted stock) were granted by ADP. All subsequent awards were granted under the 2014 Plan. The Company recognizes stock-based compensation expense associated with employee equity awards in net earnings based on the fair value of the awards on the date of grant. Stock-based compensation primarily consisted of the following for the three and six months ended December 31, 2015 and 2014:

Stock Options. Stock options are granted to employees at exercise prices equal to the fair market value of the Company's common stock on the date of grant. Stock options are issued under a graded vesting schedule and generally have a term of ten years. Compensation expense is measured based on the fair value of the stock option on the grant date and recognized over the requisite service period for each separately vesting portion of the stock option award. Stock options are forfeited if the employee ceases to be employed by the Company prior to vesting.

Time-Based Restricted Stock and Time-Based Restricted Stock Units. Time-based restricted stock and restricted stock units generally vest over a two- to five-year period. Awards are forfeited if the employee ceases to be employed by the Company prior to vesting.

Time-based restricted stock cannot be transferred during the vesting period. Compensation expense relating to the issuance of time-based restricted stock is measured based on the fair value of the award on the grant date and recognized on a straight-line basis over the vesting period. Employees are eligible to receive dividends on the CDK shares awarded under the time-based restricted stock program.

Time-based restricted stock units are primarily settled in cash. Compensation expense relating to the issuance of time-based restricted stock units is recorded over the vesting period, is initially based on the fair value of the award on the grant date, and is subsequently remeasured at each reporting date during the vesting period to the current stock value. No dividend equivalents are paid on units awarded under the time-based restricted stock unit program during the restricted period.

Performance-Based Restricted Stock and Performance-Based Restricted Stock Units. Performance-based restricted stock generally vests over a one-year performance period and performance-based restricted stock units generally vest over a three-year performance period. Under these programs, the Company communicates "target awards" at the beginning of the performance period with possible payouts at the end of the performance period ranging from 0% to 250% of the "target awards." Certain performance-based awards are further subject to adjustment (increase or decrease) based on a market condition defined as total shareholder return of the Company's common stock compared to a peer group of companies. Awards are forfeited if the employee ceases to be employed by the Company prior to vesting.

Performance-based restricted stock cannot be transferred during the vesting period. Compensation expense relating to the issuance of performance-based restricted stock is measured based upon the fair value of the award on the grant date and recognized on a straight-line basis over the vesting period, based upon the probability that the performance target will be met. After the performance period, if the performance targets are achieved, employees are eligible to receive dividends on the CDK shares awarded under the performance-based restricted stock program.

Performance-based restricted stock units are settled in either cash or stock, depending on the employee’s home country, and cannot be transferred during the vesting period. Compensation expense relating to the issuance of performance-based restricted stock units settled in cash is recorded over the vesting period, is initially based on the fair value of the award on the grant date, and is subsequently remeasured at each reporting date to the current stock value during the one-year performance period, based upon the probability that the performance target will be met. Compensation expense relating to the issuance of performance-based restricted stock units settled in stock is recorded over the vesting period based on the fair value of the award on the grant date. Dividend equivalents are paid on awards settled in stock under the performance-based restricted stock unit program.

The following table represents stock-based compensation expense and related income tax benefits for the three and six months ended December 31, 2015 and 2014, respectively:



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
Cost of revenues	$	1.5	$	2.1	$	2.7	$	3.8
Selling, general and administrative expenses	5.5		5.9		10.1		9.6
Total pre-tax stock-based compensation expense	$	7.0	$	8.0	$	12.8	$	13.4

Income tax benefit	$	2.3	$	2.9	$	4.4	$	4.9

Stock-based compensation expense for the six months ended December 31, 2015 consisted of $11.9 million of expense related to equity classified awards and $0.9 million of expense related to liability classified awards. As of December 31, 2015, the total unrecognized compensation cost related to non-vested stock options, restricted stock units, and restricted stock awards was $3.0 million, $27.7 million, and $16.1 million, respectively, which will be amortized over the weighted-average remaining requisite service periods of 1.9 years, 2.0 years, and 1.5 years, respectively.

The activity related to the Company's incentive equity awards from June 30, 2015 to December 31, 2015 consisted of the following:

Stock Options



	Number of Options (in thousands)		Weighted Average Exercise Price (in dollars)
Options outstanding as of June 30, 2015	2,021		$	24.88
Options granted	147		50.80
Options exercised	(189	)	15.92
Options canceled	(37	)	28.46
Options outstanding as of December 31, 2015	1,942		$	27.65

Time-Based Restricted Stock and Time-Based Restricted Stock Units



	Number of Shares (in thousands)		Number of Units (in thousands)
Non-vested restricted shares/units as of June 30, 2015	967		300
Restricted shares/units granted	240		88
Restricted shares/units vested	(453	)	(152	)
Restricted shares/units forfeited	(43	)	(8	)
Non-vested restricted shares/units as of December 31, 2015	711		228

Performance-Based Restricted Stock and Performance-Based Restricted Stock Units



	Number of Shares (in thousands)		Number of Units (in thousands)
Non-vested restricted shares/units as of June 30, 2015	70		222
Restricted shares/units granted	—		339
Dividend equivalents	—		2
Restricted shares/units vested	(70	)	(8	)
Restricted shares/units forfeited	—		(4	)
Non-vested restricted shares/units as of December 31, 2015	—		551

During the fiscal year ending June 30, 2016, the Company began reissuing treasury stock to satisfy exercises of stock options and issuances of vested restricted stock and restricted stock units.

The following table presents the assumptions used to determine the fair value of stock options granted during the six months ended December 31, 2015:



Risk-free interest rate	1.8		%
Dividend yield	0.9		%
Weighted-average volatility factor	24.7		%
Weighted-average expected life (in years)	6.3
Weighted-average fair value (in dollars)	$	12.55