Delaware
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22-1467904
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(State or other jurisdiction of incorporation or
organization)
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(IRS Employer Identification No.)
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One ADP Boulevard, Roseland, New
Jersey
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07068
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
x
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Accelerated filer o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Page
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PART I – FINANCIAL INFORMATION
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|||||
Item 1.
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Financial Statements (Unaudited)
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||||
Statements of Consolidated Earnings
Three and nine months ended March 31, 2012 and 2011
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3
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Consolidated Balance Sheets
At March 31, 2012 and June 30, 2011
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4
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Statements of Consolidated Cash Flows
Nine months ended March 31, 2012 and 2011
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5
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Notes to the Consolidated Financial Statements
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6
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Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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27
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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43
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Item 4
.
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Controls and Procedures
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44
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PART II – OTHER INFORMATION
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|||||
Item 1.
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Legal Proceedings
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44
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Item 1A.
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Risk Factors
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44
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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45
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Item 6.
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Exhibits
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46
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Signatures
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46
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Three Months Ended
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Nine Months Ended
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|||||||||||||||
March 31,
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March 31,
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|||||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
REVENUES:
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||||||||||||||||
Revenues, other than interest on funds
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||||||||||||||||
held for clients and PEO revenues
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$ | 2,279.0 | $ | 2,143.5 | $ | 6,335.8 | $ | 5,828.2 | ||||||||
Interest on funds held for clients
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133.3 | 148.6 | 373.0 | 404.4 | ||||||||||||
PEO revenues (A)
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510.8 | 445.2 | 1,319.8 | 1,139.8 | ||||||||||||
TOTAL REVENUES
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2,923.1 | 2,737.3 | 8,028.6 | 7,372.4 | ||||||||||||
EXPENSES:
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||||||||||||||||
Costs of revenues:
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||||||||||||||||
Operating expenses
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1,413.9 | 1,300.3 | 4,014.3 | 3,590.5 | ||||||||||||
Systems development and programming costs
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145.4 | 155.8 | 444.2 | 432.9 | ||||||||||||
Depreciation and amortization
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65.4 | 64.5 | 192.3 | 189.4 | ||||||||||||
TOTAL COSTS OF REVENUES
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1,624.7 | 1,520.6 | 4,650.8 | 4,212.8 | ||||||||||||
Selling, general and administrative expenses
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622.1 | 577.3 | 1,788.8 | 1,663.0 | ||||||||||||
Interest expense
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1.2 | 1.4 | 5.4 | 6.9 | ||||||||||||
TOTAL EXPENSES
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2,248.0 | 2,099.3 | 6,445.0 | 5,882.7 | ||||||||||||
Other income, net
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(10.5 | ) | (15.0 | ) | (141.0 | ) | (84.3 | ) | ||||||||
EARNINGS BEFORE INCOME TAXES
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685.6 | 653.0 | 1,724.6 | 1,574.0 | ||||||||||||
Provision for income taxes
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233.2 | 229.2 | 594.5 | 561.6 | ||||||||||||
NET EARNINGS
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$ | 452.4 | $ | 423.8 | $ | 1,130.1 | $ | 1,012.4 | ||||||||
BASIC EARNINGS PER SHARE
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$ | 0.93 | $ | 0.85 | $ | 2.32 | $ | 2.05 | ||||||||
DILUTED EARNINGS PER SHARE
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$ | 0.92 | $ | 0.85 | $ | 2.29 | $ | 2.03 | ||||||||
Basic weighted average shares outstanding
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488.5 | 496.2 | 487.7 | 493.2 | ||||||||||||
Diluted weighted average shares outstanding
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493.2 | 501.3 | 492.7 | 497.5 | ||||||||||||
Dividends declared per common share
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$ | 0.3950 | $ | 0.3600 | $ | 1.1500 | $ | 1.0600 |
March 31,
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June 30,
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|||||||
Assets
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2012
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2011
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||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 1,665.1 | $ | 1,389.4 | ||||
Short-term marketable securities
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28.0 | 36.3 | ||||||
Accounts receivable, net
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1,372.7 | 1,364.8 | ||||||
Other current assets
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643.9 | 648.3 | ||||||
Assets held for sale
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6.9 | 9.1 | ||||||
Total current assets before funds held for clients
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3,716.6 | 3,447.9 | ||||||
Funds held for clients
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29,836.9 | 25,135.6 | ||||||
Total current assets
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33,553.5 | 28,583.5 | ||||||
Long-term marketable securities
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96.8 | 98.0 | ||||||
Long-term receivables, net
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127.1 | 128.7 | ||||||
Property, plant and equipment, net
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710.2 | 716.2 | ||||||
Other assets
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1,001.7 | 922.6 | ||||||
Goodwill
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3,163.7 | 3,073.6 | ||||||
Intangible assets, net
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723.1 | 715.7 | ||||||
Total assets
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$ | 39,376.1 | $ | 34,238.3 | ||||
Liabilities and Stockholders' Equity
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ | 137.7 | $ | 153.3 | ||||
Accrued expenses and other current liabilities
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930.5 | 930.4 | ||||||
Accrued payroll and payroll-related expenses
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517.9 | 558.3 | ||||||
Dividends payable
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190.1 | 174.2 | ||||||
Short-term deferred revenues
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343.5 | 350.9 | ||||||
Income taxes payable
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97.2 | 28.6 | ||||||
Total current liabilities before client funds obligations
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2,216.9 | 2,195.7 | ||||||
Client funds obligations
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29,207.0 | 24,591.1 | ||||||
Total current liabilities
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31,423.9 | 26,786.8 | ||||||
Long-term debt
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17.3 | 34.2 | ||||||
Other liabilities
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585.1 | 556.2 | ||||||
Deferred income taxes
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418.5 | 373.5 | ||||||
Long-term deferred revenues
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474.7 | 477.2 | ||||||
Total liabilities
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32,919.5 | 28,227.9 | ||||||
Stockholders' equity:
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||||||||
Preferred stock, $1.00 par value:
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||||||||
Authorized, 0.3 shares; issued, none
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- | - | ||||||
Common stock, $0.10 par value:
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||||||||
Authorized, 1,000.0 shares; issued 638.7
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||||||||
shares at March 31, 2012 and June 30, 2011;
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||||||||
outstanding, 489.3 and 490.8 shares at March 31, 2012
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||||||||
and June 30, 2011, respectively
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63.9 | 63.9 | ||||||
Capital in excess of par value
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484.2 | 489.5 | ||||||
Retained earnings
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12,371.5 | 11,803.9 | ||||||
Treasury stock - at cost: 149.4 and 147.9 shares
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||||||||
at March 31, 2012 and June 30, 2011, respectively
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(6,822.7 | ) | (6,714.0 | ) | ||||
Accumulated other comprehensive income
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359.7 | 367.1 | ||||||
Total stockholders’ equity
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6,456.6 | 6,010.4 | ||||||
Total liabilities and stockholders’ equity
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$ | 39,376.1 | $ | 34,238.3 |
Nine Months Ended
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||||||||
March 31,
|
||||||||
2012
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2011
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|||||||
Cash Flows from Operating Activities:
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||||||||
Net earnings
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$ | 1,130.1 | $ | 1,012.4 | ||||
Adjustments to reconcile net earnings to cash flows provided by
|
||||||||
operating activities:
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||||||||
Depreciation and amortization
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240.0 | 239.2 | ||||||
Deferred income taxes
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7.9 | 51.8 | ||||||
Stock-based compensation expense
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66.1 | 58.5 | ||||||
Net pension expense
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27.5 | 30.3 | ||||||
Net realized gain from the sales of marketable securities
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(15.8 | ) | (19.7 | ) | ||||
Net amortization of premiums and accretion of discounts on available-for-sale securities
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43.1 | 40.8 | ||||||
Impairment losses on available-for-sale securities
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5.8 | - | ||||||
Impairment losses on assets held for sale
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2.2 | 8.6 | ||||||
Gain on sale of assets
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(66.0 | ) | - | |||||
Gains on sales of buildings
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- | (1.8 | ) | |||||
Other
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18.0 | 32.5 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions
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||||||||
and divestitures of businesses:
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||||||||
Increase in accounts receivable
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(16.9 | ) | (71.0 | ) | ||||
Increase in other assets
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(139.0 | ) | (91.9 | ) | ||||
Decrease in accounts payable
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(13.8 | ) | (42.8 | ) | ||||
Increase/(decrease) in accrued expenses and other liabilities
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121.9 | (26.6 | ) | |||||
Net cash flows provided by operating activities
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1,411.1 | 1,220.3 | ||||||
Cash Flows from Investing Activities:
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||||||||
Purchases of corporate and client funds marketable securities
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(3,650.2 | ) | (3,621.3 | ) | ||||
Proceeds from the sales and maturities of corporate and client funds marketable securities
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2,883.8 | 2,315.9 | ||||||
Net decrease in restricted cash and cash equivalents held to satisfy client funds obligations
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(3,912.5 | ) | (12,392.2 | ) | ||||
Capital expenditures
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(104.4 | ) | (122.1 | ) | ||||
Additions to intangibles
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(82.5 | ) | (58.9 | ) | ||||
Acquisitions of businesses, net of cash acquired
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(199.8 | ) | (774.7 | ) | ||||
Proceeds from the sale of property, plant and equipment and other assets
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66.0 | 13.1 | ||||||
Other
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(15.2 | ) | 5.4 | |||||
Net cash flows used in investing activities
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(5,014.8 | ) | (14,634.8 | ) | ||||
Cash Flows from Financing Activities:
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||||||||
Net increase in client funds obligations
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4,661.2 | 13,683.6 | ||||||
Payments of debt
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(1.5 | ) | (5.3 | ) | ||||
Repurchases of common stock
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(399.9 | ) | (174.8 | ) | ||||
Proceeds from stock purchase plan and exercises of stock options
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190.3 | 345.5 | ||||||
Dividends paid
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(546.4 | ) | (513.2 | ) | ||||
Net cash flows provided by financing activities
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3,903.7 | 13,335.8 | ||||||
Effect of exchange rate changes on cash and cash equivalents
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(24.3 | ) | 36.3 | |||||
Net change in cash and cash equivalents
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275.7 | (42.4 | ) | |||||
Cash and cash equivalents, beginning of period
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1,389.4 | 1,643.3 | ||||||
Cash and cash equivalents, end of period
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$ | 1,665.1 | $ | 1,600.9 |
Effect of
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Effect of
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|||||||||||||||
Employee
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Employee
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|||||||||||||||
Stock
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Restricted
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|||||||||||||||
Option
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Stock
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|||||||||||||||
Basic
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Shares
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Shares
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Diluted
|
|||||||||||||
Three months ended March 31,
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||||||||||||||||
2012
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||||||||||||||||
Net earnings
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$ | 452.4 | $ | 452.4 | ||||||||||||
Weighted average shares (in millions)
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488.5 | 4.3 | 0.4 | 493.2 | ||||||||||||
EPS
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$ | 0.93 | $ | 0.92 | ||||||||||||
2011
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||||||||||||||||
Net earnings
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$ | 423.8 | $ | 423.8 | ||||||||||||
Weighted average shares (in millions)
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496.2 | 4.5 | 0.6 | 501.3 | ||||||||||||
EPS
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$ | 0.85 | $ | 0.85 | ||||||||||||
Nine months ended March 31,
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||||||||||||||||
2012
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||||||||||||||||
Net earnings
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$ | 1,130.1 | $ | 1,130.1 | ||||||||||||
Weighted average shares (in millions)
|
487.7 | 3.8 | 1.2 | 492.7 | ||||||||||||
EPS
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$ | 2.32 | $ | 2.29 | ||||||||||||
2011
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||||||||||||||||
Net earnings
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$ | 1,012.4 | $ | 1,012.4 | ||||||||||||
Weighted average shares (in millions)
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493.2 | 3.2 | 1.1 | 497.5 | ||||||||||||
EPS
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$ | 2.05 | $ | 2.03 |
Three Months Ended
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Nine Months Ended
|
|||||||||||||||
March 31,
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March 31,
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|||||||||||||||
2012
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2011
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2012
|
2011
|
|||||||||||||
Interest income on corporate funds
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$ | (8.5 | ) | $ | (10.0 | ) | $ | (65.3 | ) | $ | (68.8 | ) | ||||
Realized gains on available-for-sale securities
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(4.0 | ) | (5.4 | ) | (23.2 | ) | (23.0 | ) | ||||||||
Realized losses on available-for-sale securities
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0.4 | 1.0 | 7.4 | 3.3 | ||||||||||||
Realized gain on invesment in Reserve Fund
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- | - | - | (0.9 | ) | |||||||||||
Impairment losses on available-for-sale securities
|
- | - | 5.8 | - | ||||||||||||
Impairment losses on assets held for sale
|
2.2 | - | 2.2 | 8.6 | ||||||||||||
Gain on sale of assets
|
- | - | (66.0 | ) | - | |||||||||||
Gains on sales of buildings
|
- | - | - | (1.8 | ) | |||||||||||
Other, net
|
(0.6 | ) | (0.6 | ) | (1.9 | ) | (1.7 | ) | ||||||||
Other income, net
|
$ | (10.5 | ) | $ | (15.0 | ) | $ | (141.0 | ) | $ | (84.3 | ) |
March 31, 2012
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized | Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Type of issue: | ||||||||||||||||
Money market securities and other cash
|
||||||||||||||||
equivalents
|
$ | 13,907.9 | $ | - | $ | - | $ | 13,907.9 | ||||||||
Available-for-sale securities:
|
||||||||||||||||
U.S. Treasury and direct obligations of
|
||||||||||||||||
U.S. government agencies
|
6,439.3 | 247.3 | (3.0 | ) | 6,683.6 | |||||||||||
Corporate bonds
|
6,898.0 | 252.5 | (7.6 | ) | 7,142.9 | |||||||||||
Asset-backed securities
|
398.3 | 16.3 | (0.2 | ) | 414.4 | |||||||||||
Commercial mortgage-backed securities
|
324.4 | 12.8 | - | 337.2 | ||||||||||||
Municipal bonds
|
509.6 | 30.1 | (0.4 | ) | 539.3 | |||||||||||
Canadian government obligations and
|
||||||||||||||||
Canadian government agency obligations
|
1,021.7 | 22.1 | (0.5 | ) | 1,043.3 | |||||||||||
Other securities
|
1,467.6 | 92.0 | (1.4 | ) | 1,558.2 | |||||||||||
Total available-for-sale securities
|
17,058.9 | 673.1 | (13.1 | ) | 17,718.9 | |||||||||||
Total corporate investments and funds
|
||||||||||||||||
held for clients
|
$ | 30,966.8 | $ | 673.1 | $ | (13.1 | ) | $ | 31,626.8 | |||||||
June 30, 2011
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized | Unrelized | Unrealized | ||||||||||||||
Cost
|
Gains
|
Losses
|
Fair Value
|
|||||||||||||
Type of issue:
|
||||||||||||||||
Money market securities and other cash
|
||||||||||||||||
equivalents
|
$ | 9,731.8 | $ | - | $ | - | $ | 9,731.8 | ||||||||
Available-for-sale securities:
|
||||||||||||||||
U.S. Treasury and direct obligations of
|
||||||||||||||||
U.S. government agencies
|
6,558.2 | 213.0 | (12.1 | ) | 6,759.1 | |||||||||||
Corporate bonds
|
5,908.6 | 234.9 | (16.9 | ) | 6,126.6 | |||||||||||
Asset-backed securities
|
422.4 | 25.4 | - | 447.8 | ||||||||||||
Commercial mortgage backed securities
|
476.6 | 15.9 | - | 492.5 | ||||||||||||
Municipal bonds
|
493.7 | 23.1 | (0.6 | ) | 516.2 | |||||||||||
Canadian government obligations and
|
||||||||||||||||
Canadian government agency obligations
|
1,082.0 | 20.8 | (1.3 | ) | 1,101.5 | |||||||||||
Other securities
|
1,415.1 | 72.4 | (3.7 | ) | 1,483.8 | |||||||||||
Total available-for-sale securities
|
16,356.6 | 605.5 | (34.6 | ) | 16,927.5 | |||||||||||
Total corporate investments and funds
|
||||||||||||||||
held for clients
|
$ | 26,088.4 | $ | 605.5 | $ | (34.6 | ) | $ | 26,659.3 | |||||||
March 31,
|
June 30,
|
|||||||
2012
|
2011
|
|||||||
Corporate investments:
|
||||||||
Cash and cash equivalents
|
$ | 1,665.1 | $ | 1,389.4 | ||||
Short-term marketable securities
|
28.0 | 36.3 | ||||||
Long-term marketable securities
|
96.8 | 98.0 | ||||||
Total corporate investments
|
$ | 1,789.9 | $ | 1,523.7 |
March 31,
|
June 30,
|
|||||||
2012
|
2011
|
|||||||
Funds held for clients:
|
||||||||
Restricted cash and cash equivalents held
|
||||||||
to satisfy client funds obligations
|
$ | 12,242.8 | $ | 8,342.4 | ||||
Restricted short-term marketable securities held
|
||||||||
to satisfy client funds obligations
|
3,154.4 | 3,059.9 | ||||||
Restricted long-term marketable securities held
|
||||||||
to satisfy client funds obligations
|
14,439.7 | 13,733.3 | ||||||
Total funds held for clients
|
$ | 29,836.9 | $ | 25,135.6 |
Unrealized
|
Unrealized
|
|||||||||||||||||||||||
losses
|
Fair market
|
losses
|
Fair market
|
Total gross
|
||||||||||||||||||||
less than
|
value less than
|
greater than
|
value greater
|
unrealized
|
Total fair
|
|||||||||||||||||||
12 months
|
12 months
|
12 months
|
than 12 months
|
losses
|
market value
|
|||||||||||||||||||
U.S. Treasury and direct obligations of
|
||||||||||||||||||||||||
U.S. government agencies
|
$ | (3.0 | ) | $ | 209.3 | $ | - | $ | - | $ | (3.0 | ) | $ | 209.3 | ||||||||||
Corporate bonds
|
(7.2 | ) | 869.2 | (0.4 | ) | 20.2 | (7.6 | ) | 889.4 | |||||||||||||||
Asset-backed securities
|
(0.2 | ) | 49.0 | - | - | (0.2 | ) | 49.0 | ||||||||||||||||
Commercial mortgage-backed securities
|
- | 19.2 | - | - | - | 19.2 | ||||||||||||||||||
Municipal bonds
|
(0.4 | ) | 41.6 | - | - | (0.4 | ) | 41.6 | ||||||||||||||||
Canadian government obligations and
|
||||||||||||||||||||||||
Canadian government agency obligations
|
(0.5 | ) | 80.3 | - | - | (0.5 | ) | 80.3 | ||||||||||||||||
Other securities
|
(1.4 | ) | 69.5 | - | - | (1.4 | ) | 69.5 | ||||||||||||||||
$ | (12.7 | ) | $ | 1,338.1 | $ | (0.4 | ) | $ | 20.2 | $ | (13.1 | ) | $ | 1,358.3 |
Unrealized
|
Unrealized
|
|||||||||||||||||||||||
losses
|
Fair market
|
losses
|
Fair market
|
Total gross
|
||||||||||||||||||||
less than
|
value less than
|
greater than
|
value greater
|
unrealized
|
Total fair
|
|||||||||||||||||||
12 months
|
12 months
|
12 months
|
than 12 months
|
losses
|
market value
|
|||||||||||||||||||
U.S. Treasury and direct obligations of
|
||||||||||||||||||||||||
U.S. government agencies
|
$ | (12.1 | ) | $ | 1,049.0 | $ | - | $ | - | $ | (12.1 | ) | $ | 1,049.0 | ||||||||||
Corporate bonds
|
(16.9 | ) | 945.2 | - | - | (16.9 | ) | 945.2 | ||||||||||||||||
Asset-backed securities
|
- | 0.5 | - | - | - | 0.5 | ||||||||||||||||||
Commercial mortgage-backed securities
|
- | 17.3 | - | - | - | 17.3 | ||||||||||||||||||
Municipal bonds
|
(0.6 | ) | 35.0 | - | - | (0.6 | ) | 35.0 | ||||||||||||||||
Canadian government obligations and
|
||||||||||||||||||||||||
Canadian government agency obligations
|
(1.3 | ) | 227.7 | - | - | (1.3 | ) | 227.7 | ||||||||||||||||
Other securities
|
(3.7 | ) | 242.3 | - | - | (3.7 | ) | 242.3 | ||||||||||||||||
$ | (34.6 | ) | $ | 2,517.0 | $ | - | $ | - | $ | (34.6 | ) | $ | 2,517.0 |
Due in one year or less
|
$ | 3,182.4 | |
Due after one year to two years
|
1,760.3 | ||
Due after two years to three years
|
2,802.8 | ||
Due after three years to four years
|
4,197.7 | ||
Due after four years
|
5,775.7 | ||
Total available-for-sale securities
|
$ | 17,718.9 |
Level 1
|
Fair value is determined based upon quoted prices for identical assets or liabilities that are traded in active markets.
|
Level 2
|
Fair value is determined based upon inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including:
·
quoted prices for similar assets or liabilities in active markets;
·
quoted prices for identical or similar assets or liabilities in markets that are not active;
·
inputs other than quoted prices that are observable for the asset or liability; or
·
inputs that are derived principally from or corroborated by observable market data by correlation or other means.
|
Level 3
|
Fair value is determined based upon inputs that are unobservable and reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based upon the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows).
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
U.S Treasury and direct obligations of
|
||||||||||||||||
U.S. government agencies
|
$ | - | $ | 6,683.6 | $ | - | $ | 6,683.6 | ||||||||
Corporate bonds
|
- | 7,142.9 | - | 7,142.9 | ||||||||||||
Asset-backed securities
|
- | 414.4 | - | 414.4 | ||||||||||||
Commercial mortgage-backed securities
|
- | 337.2 | - | 337.2 | ||||||||||||
Municipal bonds
|
- | 539.3 | - | 539.3 | ||||||||||||
Canadian government obligations and
|
||||||||||||||||
Canadian government agency obligations
|
- | 1,043.3 | - | 1,043.3 | ||||||||||||
Other securities
|
22.9 | 1,535.3 | - | 1,558.2 | ||||||||||||
Total available-for-sale securities
|
$ | 22.9 | $ | 17,696.0 | $ | - | $ | 17,718.9 |
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
U.S Treasury and direct obligations of
|
||||||||||||||||
U.S. government agencies
|
$ | - | $ | 6,759.1 | $ | - | $ | 6,759.1 | ||||||||
Corporate bonds
|
- | 6,126.6 | - | 6,126.6 | ||||||||||||
Asset-backed securities
|
- | 447.8 | - | 447.8 | ||||||||||||
Commercial mortgage-backed securities
|
- | 492.5 | - | 492.5 | ||||||||||||
Municipal bonds
|
- | 516.2 | - | 516.2 | ||||||||||||
Canadian government obligations and
|
||||||||||||||||
Canadian government agency obligations
|
- | 1,101.5 | - | 1,101.5 | ||||||||||||
Other securities
|
20.1 | 1,463.7 | - | 1,483.8 | ||||||||||||
Total available-for-sale securities
|
$ | 20.1 | $ | 16,907.4 | $ | - | $ | 16,927.5 |
March 31, 2012
|
June 30, 2011
|
|||||||||||||||
Current
|
Long-term
|
Current
|
Long-term
|
|||||||||||||
Trade receivables
|
$ | 1,341.4 | $ | - | $ | 1,333.2 | $ | - | ||||||||
Notes receivable
|
88.6 | 143.4 | 90.5 | 146.4 | ||||||||||||
Less:
|
||||||||||||||||
Allowance for doubtful accounts - trade receivables
|
(44.2 | ) | - | (44.8 | ) | - | ||||||||||
Allowance for doubtful accounts - notes receivable
|
(5.9 | ) | (9.5 | ) | (5.7 | ) | (9.4 | ) | ||||||||
Unearned income - notes receivable
|
(7.2 | ) | (6.8 | ) | (8.4 | ) | (8.3 | ) | ||||||||
Total
|
$ | 1,372.7 | $ | 127.1 | $ | 1,364.8 | $ | 128.7 |
March 31, 2012
|
||||||||||||||||
Notes Receivable
|
Reserve
|
|||||||||||||||
Current
|
Long-term
|
Current
|
Long-term
|
|||||||||||||
Specific Reserve
|
$ | 0.4 | $ | 0.6 | $ | 0.4 | $ | 0.6 | ||||||||
Non-specific Reserve
|
88.2 | 142.8 | 5.5 | 8.9 | ||||||||||||
Total
|
$ | 88.6 | $ | 143.4 | $ | 5.9 | $ | 9.5 |
June 30, 2011
|
||||||||||||||||
Notes Receivable
|
Reserve
|
|||||||||||||||
Current
|
Long-term
|
Current
|
Long-term
|
|||||||||||||
Specific Reserve
|
$ | 0.6 | $ | 0.9 | $ | 0.6 | $ | 0.9 | ||||||||
Non-specific Reserve
|
89.9 | 145.5 | 5.1 | 8.5 | ||||||||||||
Total
|
$ | 90.5 | $ | 146.4 | $ | 5.7 | $ | 9.4 |
Current
|
Long-term
|
|||||||
Balance at June 30, 2011
|
$ | 5.7 | $ | 9.4 | ||||
Incremental provision
|
1.2 | 1.5 | ||||||
Recoveries and other
|
(0.4 | ) | (0.6 | ) | ||||
Chargeoffs
|
(0.6 | ) | (0.8 | ) | ||||
Balance at March 31, 2012
|
$ | 5.9 | $ | 9.5 |
Over 30 days to 60 days
|
Over 60 days
|
|||||||
Notes Receivables
|
$ | 1.3 | $ | 0.6 |
Over 30 days to 60 days
|
Over 60 days
|
|||||||
Notes Receivables
|
$ | 1.2 | $ | 0.1 |
Employer
|
PEO
|
Dealer
|
||||||||||||||
Services
|
Services
|
Services
|
Total
|
|||||||||||||
Balance as of June 30, 2011
|
$ | 1,935.0 | $ | 4.8 | $ | 1,133.8 | $ | 3,073.6 | ||||||||
Additions and other adjustments, net
|
61.5 | - | 58.0 | 119.5 | ||||||||||||
Currency translation adjustments
|
(17.8 | ) | - | (11.6 | ) | (29.4 | ) | |||||||||
Balance as of March 31, 2012
|
$ | 1,978.7 | $ | 4.8 | $ | 1,180.2 | $ | 3,163.7 |
March 31,
|
June 30,
|
|||||||
2012
|
2011
|
|||||||
Intangible assets:
|
||||||||
Software and software licenses
|
$ | 1,404.4 | $ | 1,322.4 | ||||
Customer contracts and lists
|
861.6 | 821.0 | ||||||
Other intangibles
|
242.0 | 238.3 | ||||||
2,508.0 | 2,381.7 | |||||||
Less accumulated amortization:
|
||||||||
Software and software licenses
|
(1,133.2 | ) | (1,062.1 | ) | ||||
Customer contracts and lists
|
(482.2 | ) | (443.7 | ) | ||||
Other intangibles
|
(169.5 | ) | (160.2 | ) | ||||
(1,784.9 | ) | (1,666.0 | ) | |||||
Intangible assets, net
|
$ | 723.1 | $ | 715.7 |
Amount
|
|||
Three months ending June 30, 2012
|
$ | 46.9 | |
Twelve months ending June 30, 2013
|
$ | 153.8 | |
Twelve months ending June 30, 2014
|
$ | 123.4 | |
Twelve months ending June 30, 2015
|
$ | 91.5 | |
Twelve months ending June 30, 2016
|
$ | 67.6 | |
Twelve months ending June 30, 2017
|
$ | 55.9 |
March 31,
|
June 30,
|
|||||||
2012
|
2011
|
|||||||
Industrial revenue bonds
|
$ | 21.6 | $ | 21.6 | ||||
Secured financing
|
13.9 | 15.4 | ||||||
35.5 | 37.0 | |||||||
Less: current portion
|
(18.2 | ) | (2.8 | ) | ||||
$ | 17.3 | $ | 34.2 |
·
|
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 dates of grant. Stock options are issued under a grade vesting schedule. Options granted prior to July 1, 2008 generally vest ratably over five years and have a term of 10 years. Options granted after July 1, 2008 generally vest ratably
over four years and have a term of 10 years. Compensation expense for stock options is recognized over the requisite service period for each separately vesting portion of the stock option award.
|
·
|
Employee Stock Purchase Plan.
The Company offers an employee stock purchase plan that allows eligible employees to purchase shares of common stock at a price equal to 95% of the market value for the Company's common stock on the last day of the offering period. This plan has been deemed non-compensatory and therefore, no compensation expense has been recorded.
|
·
|
Restricted Stock.
|
o
|
Time-Based Restricted Stock.
The Company has issued time-based restricted stock to certain key employees. These shares are restricted as to transfer and in certain circumstances must be returned to the Company at the original purchase price. The Company records stock compensation expense relating to the issuance of restricted stock based on market prices on the date of grant on a straight-line basis over the period in which the transfer restrictions exist, which is up to five years from the date of grant.
|
o
|
Performance-Based Restricted Stock.
The performance-based restricted stock program has a one-year performance period, and a subsequent six-month service period. Under this program, the Company communicates "target awards" to employees at the beginning of the performance period and, as such, dividends are not paid in respect of the "target awards" during the performance period. After the performance period, if the performance targets are achieved, associates are eligible to receive dividends on shares awarded under the program. The performance target is based on earnings per share growth over the performance period, with possible payouts ranging from 0% to 150% of the "target awards." Stock-based compensation expense is measured based upon the fair value of the award on the grant date. Compensation expense is recognized on a straight-line basis over the vesting period of approximately 18 months, based upon the probability that the performance target will be met.
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Operating expenses
|
$ | 3.7 | $ | 4.2 | $ | 11.2 | $ | 10.8 | ||||||||
Selling, general and administrative expenses
|
13.5 | 13.6 | 45.2 | 37.4 | ||||||||||||
System development and programming costs
|
3.2 | 4.0 | 9.7 | 10.3 | ||||||||||||
Total pretax stock-based compensation expense
|
$ | 20.4 | $ | 21.8 | $ | 66.1 | $ | 58.5 |
Number
|
Weighted
|
|||||||
of Options
|
Average Price
|
|||||||
(in thousands)
|
(in dollars)
|
|||||||
Options outstanding at
|
||||||||
July 1, 2011
|
21,714 | $ | 40 | |||||
Options granted
|
1,106 | $ | 54 | |||||
Options exercised
|
(4,976 | ) | $ | 53 | ||||
Options cancelled
|
(361 | ) | $ | 42 | ||||
Options outstanding at
|
||||||||
March 31, 2012
|
17,483 | $ | 40 |
Number
|
||||
of Shares
|
||||
(in thousands)
|
||||
Restricted shares outstanding
|
||||
at July 1, 2011
|
1,351 | |||
Restricted shares granted
|
1,801 | |||
Restricted shares vested
|
(1,579 | ) | ||
Restricted shares forfeited
|
(78 | ) | ||
Restricted shares outstanding
|
||||
at March 31, 2012
|
1,495 |
Number
|
||||
of Shares
|
||||
(in thousands)
|
||||
Restricted shares outstanding,
|
||||
at July 1, 2011
|
493 | |||
Restricted shares granted
|
8 | |||
Restricted shares vested
|
(71 | ) | ||
Restricted shares forfeited
|
(14 | ) | ||
Restricted shares outstanding,
|
||||
at March 31, 2012
|
416 |
Nine Months Ended
|
||||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
Risk-free interest rate
|
0.8% - 1.0% | 1.4% - 2.4% | ||||||
Dividend yield
|
2.8% - 3.1% | 2.9% - 3.3% | ||||||
Weighted average volatility factor
|
24.9% - 25.7% | 24.5% - 24.9% | ||||||
Weighted average expected life (in years)
|
5.2 - 5.3 | 5.1 - 5.2 | ||||||
Weighted average fair value (in dollars)
|
$ | 8.46 | $ | 7.59 |
Three months ended
|
Nine months ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Service cost – benefits earned during the period
|
$ | 14.3 | $ | 13.1 | $ | 42.9 | $ | 39.3 | ||||||||
Interest cost on projected benefits
|
15.5 | 14.1 | 46.5 | 42.3 | ||||||||||||
Expected return on plan assets
|
(24.4 | ) | (22.1 | ) | (73.2 | ) | (66.3 | ) | ||||||||
Net amortization and deferral
|
3.7 | 5.0 | 11.3 | 15.0 | ||||||||||||
Net pension expense
|
$ | 9.1 | $ | 10.1 | $ | 27.5 | $ | 30.3 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net earnings
|
$ | 452.4 | $ | 423.8 | $ | 1,130.1 | $ | 1,012.4 | ||||||||
Other comprehensive income:
|
||||||||||||||||
Currency translation adjustments
|
36.5 | 58.8 | (73.2 | ) | 143.2 | |||||||||||
Unrealized gain (loss) on available-for-sale
|
||||||||||||||||
securities, net of tax
|
(17.7 | ) | (59.7 | ) | 58.6 | (156.7 | ) | |||||||||
Pension liability adjustment, net of tax
|
1.4 | 2.3 | 7.2 | 2.9 | ||||||||||||
Comprehensive income
|
$ | 472.6 | $ | 425.2 | $ | 1,122.7 | $ | 1,001.8 |
Revenues
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
||||||||||||||||
Employer Services
|
$ | 2,108.6 | $ | 1,973.5 | $ | 5,686.1 | $ | 5,280.0 | ||||||||
PEO Services
|
513.7 | 447.8 | 1,328.1 | 1,147.3 | ||||||||||||
Dealer Services
|
431.9 | 402.0 | 1,252.3 | 1,134.2 | ||||||||||||
Other
|
0.9 | 3.7 | 4.9 | 10.1 | ||||||||||||
Reconciling items:
|
||||||||||||||||
Foreign exchange
|
(23.9 | ) | (10.8 | ) | (29.0 | ) | (56.0 | ) | ||||||||
Client fund interest
|
(108.1 | ) | (78.9 | ) | (213.8 | ) | (143.2 | ) | ||||||||
Total
|
$ | 2,923.1 | $ | 2,737.3 | $ | 8,028.6 | $ | 7,372.4 |
Earnings before Income Taxes
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Employer Services
|
$ | 699.4 | $ | 653.7 | $ | 1,556.4 | $ | 1,474.1 | ||||||||
PEO Services
|
45.9 | 37.8 | 124.8 | 101.8 | ||||||||||||
Dealer Services
|
77.7 | 67.4 | 211.3 | 174.6 | ||||||||||||
Other
|
(62.0 | ) | (57.4 | ) | (48.1 | ) | (111.1 | ) | ||||||||
Reconciling items:
|
||||||||||||||||
Foreign exchange
|
(0.5 | ) | 0.1 | 0.2 | (7.6 | ) | ||||||||||
Client fund interest
|
(108.1 | ) | (78.9 | ) | (213.8 | ) | (143.2 | ) | ||||||||
Cost of capital charge
|
33.2 | 30.3 | 93.8 | 85.4 | ||||||||||||
Total
|
$ | 685.6 | $ | 653.0 | $ | 1,724.6 | $ | 1,574.0 |
Three Months Ended
|
||||||||||||||||
March 31,
|
||||||||||||||||
2012
|
2011
|
$ Change
|
% Change
|
|||||||||||||
Total revenues
|
$ | 2,923.1 | $ | 2,737.3 | $ | 185.8 | 7% | |||||||||
Costs of revenues:
|
||||||||||||||||
Operating expenses
|
$ | 1,413.9 | $ | 1,300.3 | $ | 113.6 | 9% | |||||||||
Systems development and
|
||||||||||||||||
programming costs
|
145.4 | 155.8 | (10.4 | ) | (7%) | |||||||||||
Depreciation and amortization
|
65.4 | 64.5 | 0.9 | 1% | ||||||||||||
Total costs of revenues
|
$ | 1,624.7 | $ | 1,520.6 | $ | 104.1 | 7% | |||||||||
Selling, general and
|
||||||||||||||||
administrative expenses
|
$ | 622.1 | $ | 577.3 | $ | 44.8 | 8% | |||||||||
Interest expense
|
1.2 | 1.4 | (0.2 | ) | (14%) | |||||||||||
Total expenses
|
$ | 2,248.0 | $ | 2,099.3 | $ | 148.7 | 7% | |||||||||
Other income, net
|
$ | (10.5 | ) | $ | (15.0 | ) | $ | (4.5 | ) | (30%) | ||||||
Earnings before income taxes
|
$ | 685.6 | $ | 653.0 | $ | 32.6 | 5% | |||||||||
Margin
|
23% | 24% | ||||||||||||||
Provision for income taxes
|
$ | 233.2 | $ | 229.2 | $ | 4.0 | 2% | |||||||||
Effective tax rate
|
34.0% | 35.1% | ||||||||||||||
Net earnings
|
$ | 452.4 | $ | 423.8 | $ | 28.6 | 7% | |||||||||
Diluted earnings per share
|
$ | 0.92 | $ | 0.85 | $ | 0.07 | 8% |
Nine Months Ended
|
||||||||||||||||
March 31,
|
||||||||||||||||
2012
|
2011
|
$ Change
|
% Change
|
|||||||||||||
Total revenues
|
$ | 8,028.6 | $ | 7,372.4 | $ | 656.2 | 9% | |||||||||
Costs of revenues:
|
||||||||||||||||
Operating expenses
|
$ | 4,014.3 | $ | 3,590.5 | $ | 423.8 | 12% | |||||||||
Systems development and
|
||||||||||||||||
programming costs
|
444.2 | 432.9 | 11.3 | 3% | ||||||||||||
Depreciation and amortization
|
192.3 | 189.4 | 2.9 | 2% | ||||||||||||
Total costs of revenues
|
$ | 4,650.8 | $ | 4,212.8 | $ | 438.0 | 10% | |||||||||
Selling, general and
|
||||||||||||||||
administrative expenses
|
$ | 1,788.8 | $ | 1,663.0 | $ | 125.8 | 8% | |||||||||
Interest expense
|
5.4 | 6.9 | (1.5 | ) | (22%) | |||||||||||
Total expenses
|
$ | 6,445.0 | $ | 5,882.7 | $ | 562.3 | 10% | |||||||||
Other income, net
|
$ | (141.0 | ) | $ | (84.3 | ) | $ | 56.7 | 67% | |||||||
Earnings before income taxes
|
$ | 1,724.6 | $ | 1,574.0 | $ | 150.6 | 10% | |||||||||
Margin
|
21 | % | 21 | % | ||||||||||||
Provision for income taxes
|
$ | 594.5 | $ | 561.6 | $ | 32.9 | 6% | |||||||||
Effective tax rate
|
34.5 | % | 35.7 | % | ||||||||||||
Net earnings
|
$ | 1,130.1 | $ | 1,012.4 | $ | 117.7 | 12% | |||||||||
Diluted earnings per share
|
$ | 2.29 | $ | 2.03 | $ | 0.26 | 13% |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||||||||||
2012
|
2011
|
$ Change
|
2012
|
2011
|
$ Change
|
|||||||||||||||||||
Interest income on corporate funds
|
$ | (8.5 | ) | $ | (10.0 | ) | $ | (1.5 | ) | $ | (65.3 | ) | $ | (68.8 | ) | $ | (3.5 | ) | ||||||
Realized gains on available-for-sale securities
|
(4.0 | ) | (5.4 | ) | (1.4 | ) | (23.2 | ) | (23.0 | ) | 0.2 | |||||||||||||
Realized losses on available-for-sale securities
|
0.4 | 1.0 | 0.6 | 7.4 | 3.3 | (4.1 | ) | |||||||||||||||||
Realized gain on investment in Reserve Fund
|
- | - | - | - | (0.9 | ) | (0.9 | ) | ||||||||||||||||
Impairment losses on available-for-sale securities
|
- | - | - | 5.8 | - | (5.8 | ) | |||||||||||||||||
Impairment losses on assets held for sale
|
2.2 | - | (2.2 | ) | 2.2 | 8.6 | 6.4 | |||||||||||||||||
Gain on sale of assets
|
- | - | - | (66.0 | ) | - | 66.0 | |||||||||||||||||
Gains on sales of buildings
|
- | - | - | - | (1.8 | ) | (1.8 | ) | ||||||||||||||||
Other, net
|
(0.6 | ) | (0.6 | ) | - | (1.9 | ) | (1.7 | ) | 0.2 | ||||||||||||||
Other income, net
|
$ | (10.5 | ) | $ | (15.0 | ) | $ | (4.5 | ) | $ | (141.0 | ) | $ | (84.3 | ) | $ | 56.7 |
Nine months ended March 31, 2012
|
||||||||||||||||
Earnings before income taxes
|
Provision for income taxes
|
Net earnings
|
Diluted EPS
|
|||||||||||||
As Reported
|
$ | 1,724.6 | $ | 594.5 | $ | 1,130.1 | $ | 2.29 | ||||||||
Less Adjustment:
|
||||||||||||||||
Gain on sale of assets
|
66.0 | 24.8 | 41.2 | 0.08 | ||||||||||||
As Adjusted
|
$ | 1,658.6 | $ | 569.7 | $ | 1,088.9 | $ | 2.21 |
Revenues | ||||||||||||||||||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||||||||||||||||||
2012
|
2011
|
$ Change
|
% Change
|
2012
|
2011
|
$ Change
|
% Change
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Employer Services
|
$ | 2,108.6 | $ | 1,973.5 | $ | 135.1 | 7% | $ | 5,686.1 | $ | 5,280.0 | $ | 406.1 | 8% | ||||||||||||||||||
PEO Services
|
513.7 | 447.8 | 65.9 | 15% | 1,328.1 | 1,147.3 | 180.8 | 16% | ||||||||||||||||||||||||
Dealer Services
|
431.9 | 402.0 | 29.9 | 7% | 1,252.3 | 1,134.2 | 118.1 | 10% | ||||||||||||||||||||||||
Other
|
0.9 | 3.7 | (2.8 | ) | 4.9 | 10.1 | (5.2 | ) | ||||||||||||||||||||||||
Reconciling items:
|
||||||||||||||||||||||||||||||||
Foreign exchange
|
(23.9 | ) | (10.8 | ) | (13.1 | ) | (29.0 | ) | (56.0 | ) | 27.0 | |||||||||||||||||||||
Client fund interest
|
(108.1 | ) | (78.9 | ) | (29.2 | ) | (213.8 | ) | (143.2 | ) | (70.6 | ) | ||||||||||||||||||||
Total
|
$ | 2,923.1 | $ | 2,737.3 | $ | 185.8 | 7% | $ | 8,028.6 | $ | 7,372.4 | $ | 656.2 | 9% | ||||||||||||||||||
Earnings before Income Taxes | ||||||||||||||||||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||||||||||||||||||
2012 | 2011 |
$ Change
|
% Change
|
2012 | 2011 |
$ Change
|
% Change
|
|||||||||||||||||||||||||
Employer Services
|
$ | 699.4 | $ | 653.7 | $ | 45.7 | 7% | $ | 1,556.4 | $ | 1,474.1 | $ | 82.3 | 6% | ||||||||||||||||||
PEO Services
|
45.9 | 37.8 | 8.1 | 21% | 124.8 | 101.8 | 23.0 | 23% | ||||||||||||||||||||||||
Dealer Services
|
77.7 | 67.4 | 10.3 | 15% | 211.3 | 174.6 | 36.7 | 21% | ||||||||||||||||||||||||
Other
|
(62.0 | ) | (57.4 | ) | (4.6 | ) | (48.1 | ) | (111.1 | ) | 63.0 | |||||||||||||||||||||
Reconciling items:
|
||||||||||||||||||||||||||||||||
Foreign exchange
|
(0.5 | ) | 0.1 | (0.6 | ) | 0.2 | (7.6 | ) | 7.8 | |||||||||||||||||||||||
Client fund interest
|
(108.1 | ) | (78.9 | ) | (29.2 | ) | (213.8 | ) | (143.2 | ) | (70.6 | ) | ||||||||||||||||||||
Cost of capital charge
|
33.2 | 30.3 | 2.9 | 93.8 | 85.4 | 8.4 | ||||||||||||||||||||||||||
Total
|
$ | 685.6 | $ | 653.0 | $ | 32.6 | 5% | $ | 1,724.6 | $ | 1,574.0 | $ | 150.6 | 10% |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Average investment balances at cost:
|
||||||||||||||||
Corporate investments
|
$ | 2,266.3 | $ | 2,177.1 | $ | 3,995.5 | $ | 3,472.5 | ||||||||
Funds held for clients
|
21,712.4 | 20,629.5 | 17,466.2 | 16,336.0 | ||||||||||||
Total
|
$ | 23,978.7 | $ | 22,806.6 | $ | 21,461.7 | $ | 19,808.5 | ||||||||
Average interest rates earned
|
||||||||||||||||
exclusive of realized gains/(losses) on:
|
||||||||||||||||
Corporate investments
|
1.5% | 1.8% | 2.2% | 2.6% | ||||||||||||
Funds held for clients
|
2.5% | 2.9% | 2.8% | 3.3% | ||||||||||||
Total
|
2.4% | 2.8% | 2.7% | 3.2% | ||||||||||||
Realized gains on available-for-sale securities
|
$ | 4.0 | $ | 5.4 | $ | 23.2 | $ | 23.0 | ||||||||
Realized losses on available-for-sale securities
|
(0.4 | ) | (1.0 | ) | (7.4 | ) | (3.3 | ) | ||||||||
Net realized gains on available-for-sale securities
|
$ | 3.6 | $ | 4.4 | $ | 15.8 | $ | 19.7 | ||||||||
March 31,
|
June 30,
|
|||||||||||||||
2012 | 2011 | |||||||||||||||
Net unrealized pre-tax gains on
|
||||||||||||||||
available-for-sale securities
|
$ | 660.0 | $ | 570.9 | ||||||||||||
Total available-for-sale securities at fair value
|
$ | 17,718.9 | $ | 16,927.5 |
Total Number of
|
Maximum Number
|
|||||||||||||||
Shares Purchased
|
of Shares that
|
|||||||||||||||
as Part of the
|
may yet be
|
|||||||||||||||
Publicly
|
Purchased under
|
|||||||||||||||
Total Number
|
Average Price
|
Announced
|
the Common Stock
|
|||||||||||||
of Shares
|
Paid per
|
Common Stock
|
Repurchase
|
|||||||||||||
Period
|
Purchased (1)
|
Share
|
Repurchase Plan (2)
|
Plan (2)
|
||||||||||||
January 1, 2012
|
||||||||||||||||
to January 31, 2012
|
157,650 | $ | 55.12 | 145,000 | 43,191,351 | |||||||||||
February 1, 2012
|
||||||||||||||||
to February 29, 2012
|
852,699 | $ | 54.34 | 852,699 | 42,338,652 | |||||||||||
March 1, 2012
|
||||||||||||||||
to March 31, 2012
|
1,513,389 | $ | 54.92 | 953,500 | 41,385,152 | |||||||||||
Total
|
2,523,738 | 1,951,199 |
Date of Approval
|
Shares
|
March 2001
|
50 million
|
November 2002
|
35 million
|
November 2005
|
50 million
|
August 2006
|
50 million
|
August 2008
June 2011
|
50 million
35 million
|
Exhibit Number
|
Exhibit
|
10.1
|
Form of Stock Option Grant Agreement under the 2008 Omnibus Award Plan (Form for French Employees) for grants after January 26, 2012 (Management Compensatory Plan)
|
10.2
|
French Sub Plan under the 2008 Omnibus Award Plan effective as of January 26, 2012 (Management Compensatory Plan)
|
31.1
|
Certification by Carlos A. Rodriguez pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
|
31.2
|
Certification by Christopher R. Reidy pursuant to Rule 13a-14(a) of the
Securities Exchange Act of 1934
|
32.1
|
Certification by Carlos A. Rodriguez pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification by Christopher R. Reidy pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
XBRL instance document
|
101.SCH
|
XBRL taxonomy extension schema document
|
101.CAL
|
XBRL taxonomy extension calculation linkbase document
|
101.LAB
|
XBRL taxonomy label linkbase document
|
101.PRE
|
XBRL taxonomy extension presentation linkbase document
|
101.DEF
|
XBRL taxonomy extension definition linkbase document
|
AUTOMATIC DATA PROCESSING, INC.
(Registrant)
|
|
Date: May 4, 2012
|
/s/ Christopher R. Reidy
Christopher R. Reidy
|
Chief Financial Officer
(Title)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Automatic Data Processing, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 4, 2012
|
/s/ Carlos A. Rodriguez
|
Carlos A. Rodriguez
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Automatic Data Processing, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 4, 2012
|
/s/ Christopher R. Reidy
|
Christopher R. Reidy
|
|
Chief Financial Officer
|
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
|
CERTIFICATION PURSUANT TO
|
18 U.S.C. SECTION 1350,
|
AS ADOPTED PURSUANT TO
|
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
|
|
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
CERTIFICATION OF CHIEF FINANCIAL OFFICER
|
CERTIFICATION PURSUANT TO
|
18 U.S.C. SECTION 1350,
|
AS ADOPTED PURSUANT TO
|
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
|
|
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|