AUTOMATIC DATA PROCESSING INC, 8-K filed on 10/6/2008
Current report filing
Statement of Financial Position, Classified (USD $)
In Millions, except Per Share data
Jun. 30, 2008
Jun. 30, 2007
Assets [Abstract]
 
 
Assets, Current [Abstract]
 
 
Cash and Cash Equivalents, at Carrying Value [Abstract]
 
 
Cash and cash equivalents
$ 917.5 
$ 1,746.1 
Short-term Investments [Abstract]
 
 
Short-term marketable securities
666.3 
70.4 
Accounts Receivable, Net, Current [Abstract]
 
 
Accounts receivable, net
1,034.6 
1,041.9 
Other current assets
771.6 
448.1 
Assets of discontinued operations
0.0 
57.7 
Total current assets before funds held for clients
3,390.0 
3,364.2 
Funds held for clients
15,418.9 
18,489.2 
Total current assets
18,808.9 
21,853.4 
Assets, Noncurrent [Abstract]
 
 
Marketable Securities, Noncurrent [Abstract]
 
 
Long-term marketable securities
76.5 1
68.1 1
Accounts Receivable, Net, Noncurrent [Abstract]
 
 
Long-term receivables, net
234.0 
226.5 
Property, Plant and Equipment, Net [Abstract]
 
 
Property, plant and equipment, net
742.9 
723.8 
Other assets
808.3 
735.5 
Goodwill
2,426.7 
2,353.6 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
Intangible assets, net
637.1 
688.0 
Total assets
23,734.4 
26,648.9 
Liabilities and Stockholders' Equity [Abstract]
 
 
Liabilities [Abstract]
 
 
Liabilities, Current [Abstract]
 
 
Accounts Payable and Accrued Liabilities [Abstract]
 
 
Accounts payable
126.9 
125.9 
Accrued expenses and other current liabilities
668.1 
703.4 
Accrued payroll and payroll related expenses
479.4 
402.6 
Dividends payable
145.7 
122.0 
Deferred Revenue and Credits, Current [Abstract]
 
 
Short-term deferred revenues
356.1 
299.1 
Obligation under reverse repurchase agreement
11.8 
0.0 
Taxes Payable [Abstract]
 
 
Income taxes payable
258.9 
118.7 
Liabilities of discontinued operations
0.0 
19.1 
Total current liabilities before client funds obligations
2,046.9 
1,790.8 
Client funds obligations
15,294.7 
18,673.0 
Total current liabilities
17,341.6 
20,463.8 
Liabilities, Noncurrent [Abstract]
 
 
Long-term Debt, Noncurrent [Abstract]
 
 
Long-term debt
52.1 
43.5 
Other liabilities
587.9 
390.5 
Deferred income taxes
170.0 
127.7 
Long-term deferred revenues
495.6 
475.5 
Total liabilities
18,647.2 
21,501.0 
Stockholders' Equity [Abstract]
 
 
Preferred stock, $1.00 par value: Authorized, 0.3 shares; issued, none
0.0 
0.0 
Preferred Stock, Par value
1 
1 
Preferred Stock, Shares authorized
0.3 
0.3 
Preferred Stock, Shares issued
0 
0 
Common stock, $0.10 par value: Authorized, 1,000.0 shares; issued, 638.7 shares at June 30, 2008 and 2007; outstanding, 510.3 and 535.8 shares at June 30, 2008 and 2007, respectively
63.9 
63.9 
Common Stock, Par value
0.1 
0.1 
Common Stock, Shares authorized
1,000 
1,000 
Common Stock, Shares issued
638.7 
638.7 
Common Stock, Shares outstanding
510.3 
535.8 
Additional Paid in Capital [Abstract]
 
 
Capital in excess of par value
522.0 
351.8 
Retained Earnings (Accumulated Deficit) [Abstract]
 
 
Retained earnings
10,029.8 
9,378.5 
Treasury stock - at cost: 128.4 and 102.9 shares at June 30, 2008 and 2007, respectively
(5,804.7)
(4,612.9)
Treasury Stock, Shares
128.4 
102.9 
Accumulated other comprehensive income (loss)
276.2 
(33.4)
Total stockholders' equity
5,087.2 
5,147.9 
Total liabilities and stockholders' equity
$ 23,734.4 
$ 26,648.9 
Statement of Income (Excluding Gross Margin Alternative) (USD $)
In Millions, except Per Share data
Year Ended
Jun. 30,
2008
2007
2006
Net Income (Loss) [Abstract]
 
 
 
Income (Loss) from Continuing Operations [Abstract]
 
 
 
Income (Loss) from Continuing Operations before Income Taxes, Minority Interest, and Income (Loss) from Equity Method Investments [Abstract]
 
 
 
Revenues [Abstract]
 
 
 
Sales Revenue, Net [Abstract]
 
 
 
Revenues, other than interest on funds held for clients and PEO revenues
$ 7,038.9 
$ 6,267.4 
$ 5,582.1 
Interest on funds held for clients
684.5 
653.6 
549.8 
PEO revenues
1,053.1 1
879.0 1
703.7 1
TOTAL REVENUES
8,776.5 
7,800.0 
6,835.6 
Cost of Goods and Services Sold [Abstract]
 
 
 
Cost of Goods Sold [Abstract]
 
 
 
Operating expenses
3,915.7 
3,392.3 
2,970.5 
Systems development and programming costs
525.9 
486.1 
472.3 
Cost of Goods Sold, Depreciation and Amortization [Abstract]
 
 
 
Depreciation and amortization
238.5 
208.9 
160.9 
TOTAL COSTS OF REVENUES
4,680.1 
4,087.3 
3,603.7 
Operating Expenses [Abstract]
 
 
 
Selling, General and Administrative Expense [Abstract]
 
 
 
Selling, general and administrative expenses
2,370.4 
2,206.2 
1,933.7 
Interest expense
80.5 
94.9 
72.8 
TOTAL EXPENSES
7,131.0 
6,388.4 
5,610.2 
Nonoperating Income (Expense) [Abstract]
 
 
 
Other income, net
(166.5)
(211.9)
(135.8)
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
1,812.0 
1,623.5 
1,361.2 
Provision for income taxes
650.3 
602.3 
519.3 
NET EARNINGS FROM CONTINUING OPERATIONS
1,161.7 
1,021.2 
841.9 
Income (Loss) from Discontinued Operations, Net of Tax [Abstract]
 
 
 
Earnings from discontinued operations, net of provision for income taxes of $23.2, $110.6 and $274.5 for the fiscal years ended June 30, 2008, 2007 and 2006, respectively
74.0 
117.5 
712.1 
Provision for income taxes from discontinued operations
23.2 
110.6 
274.5 
NET EARNINGS
1,235.7 
1,138.7 
1,554.0 
Earnings Per Share, Basic [Abstract]
 
 
 
Income (Loss) before Extraordinary Items and Cumulative Effect of Change in Accounting Principle, Per Basic Share [Abstract]
 
 
 
Basic earnings per share from continuing operations
2.23 
1.86 
1.46 
Basic earnings per share from discontinued operations
0.14 
0.21 
1.24 
BASIC EARNINGS PER SHARE
2.37 
2.07 
2.7 
Earnings Per Share, Diluted [Abstract]
 
 
 
Diluted earnings per share from continuing operations
2.2 
1.83 
1.45 
Diluted earnings per share from discontinued operations
0.14 
0.21 
1.23 
DILUTED EARNINGS PER SHARE
2.34 
2.04 
2.68 
Earnings Per Share, Diluted, Other Disclosures [Abstract]
 
 
 
Basic weighted average shares outstanding
521.5 
549.7 
574.8 
Diluted weighted average shares outstanding
527.2 
557.9 
580.3 
Statement of Shareholders' Equity and Other Comprehensive Income (USD $)
In Millions
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income [Member]
Total
7/1/2005 - 6/30/2006
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Shares, Issued, Beginning Balance
638.7 
 
 
 
 
 
Shares, Issued, Ending Balance
638.7 
 
 
 
 
 
Stockholders' Equity, Beginning Balance
63.9 
0.0 
(2,246.8)
7,966.0 
14.1 
5,783.9 
Net Income (Loss) [Abstract]
 
 
 
 
 
 
NET EARNINGS
 
 
 
1,554.0 
 
1,554.0 
Elimination of deferred compensation upon adoption of Statement of Financial Accounting Standards No. 123R
 
(13.3)
 
 
 
 
Stock-based compensation expense
 
174.9 
 
 
 
 
Stock plans and related tax benefits
 
(3.7)
375.6 
 
 
 
Stock Transactions, Parenthetical Disclosures [Abstract]
 
 
 
 
 
 
Treasury stock acquired (29.6 shares)
 
 
(1,326.9)
 
 
 
Treasury stock acquired (40.2 shares)
 
 
 
 
 
 
Treasury stock acquired (32.9 shares)
 
 
 
 
 
 
Adjustments to Additional Paid in Capital [Abstract]
 
 
 
 
 
 
Tax basis adjustment related to pooling of interest
 
 
 
 
 
 
Adoption of Staff Accounting Bulletin No. 108, net of tax
 
 
 
 
 
 
Debt conversion (0.1 shares)
 
(0.5)
3.3 
 
 
 
Debt conversion (1.1 shares)
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Adoption of Statement of Financial Accounting Standards No. 158, net of tax
 
 
 
 
 
 
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
80.2 
 
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Unrealized net gain (loss) on securities, net of tax
 
 
 
 
(221.0)
 
Other Comprehensive Income, Defined Benefit Plans Adjustment, Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Minimum pension liability adjustment, net of tax
 
 
 
 
0.4 
 
Comprehensive income
 
 
 
 
1,413.6 
 
Cumulative Effect of Initial Adoption of New Accounting Principle [Abstract]
 
 
 
 
 
 
Adoption of Financial Accounting Standards Board Interpretation No. 48
 
 
 
 
 
 
Brokerage Services Group spin-off
 
 
 
 
 
 
Brokerage Services Group dividend
 
 
 
 
 
 
Dividends ($0.7100 per share)
 
 
 
(408.6)
 
 
Dividends ($0.8750 per share)
 
 
 
 
 
 
Dividends ($1.1000 per share)
 
 
 
 
 
 
Stockholders' Equity, Ending Balance
63.9 
157.4 
(3,194.8)
9,111.4 
(126.3)
6,011.6 
7/1/2006 - 6/30/2007
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Shares, Issued, Beginning Balance
638.7 
 
 
 
 
 
Shares, Issued, Ending Balance
638.7 
 
 
 
 
 
Stockholders' Equity, Beginning Balance
63.9 
157.4 
(3,194.8)
9,111.4 
(126.3)
6,011.6 
Net Income (Loss) [Abstract]
 
 
 
 
 
 
NET EARNINGS
 
 
 
1,138.7 
 
1,138.7 
Elimination of deferred compensation upon adoption of Statement of Financial Accounting Standards No. 123R
 
 
 
 
 
 
Stock-based compensation expense
 
148.7 
 
 
 
 
Stock plans and related tax benefits
 
55.4 
464.4 
 
 
 
Stock Transactions, Parenthetical Disclosures [Abstract]
 
 
 
 
 
 
Treasury stock acquired (29.6 shares)
 
 
 
 
 
 
Treasury stock acquired (40.2 shares)
 
 
(1,920.3)
 
 
 
Treasury stock acquired (32.9 shares)
 
 
 
 
 
 
Adjustments to Additional Paid in Capital [Abstract]
 
 
 
 
 
 
Tax basis adjustment related to pooling of interest
 
 
 
 
 
 
Adoption of Staff Accounting Bulletin No. 108, net of tax
 
(3.2)
 
44.3 
 
 
Debt conversion (0.1 shares)
 
 
 
 
 
 
Debt conversion (1.1 shares)
 
(6.5)
37.8 
 
 
 
Other Comprehensive Income (Loss), Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Adoption of Statement of Financial Accounting Standards No. 158, net of tax
 
 
 
 
(63.1)
 
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
76.4 
 
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Unrealized net gain (loss) on securities, net of tax
 
 
 
 
81.9 
 
Other Comprehensive Income, Defined Benefit Plans Adjustment, Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Minimum pension liability adjustment, net of tax
 
 
 
 
(2.3)
 
Comprehensive income
 
 
 
 
1,294.7 
 
Cumulative Effect of Initial Adoption of New Accounting Principle [Abstract]
 
 
 
 
 
 
Adoption of Financial Accounting Standards Board Interpretation No. 48
 
 
 
 
 
 
Brokerage Services Group spin-off
 
 
 
(1,125.2)
 
 
Brokerage Services Group dividend
 
 
 
690.0 
 
 
Dividends ($0.7100 per share)
 
 
 
 
 
 
Dividends ($0.8750 per share)
 
 
 
(480.7)
 
 
Dividends ($1.1000 per share)
 
 
 
 
 
 
Stockholders' Equity, Ending Balance
63.9 
351.8 
(4,612.9)
9,378.5 
(33.4)
5,147.9 
7/1/2007 - 6/30/2008
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Shares, Issued, Beginning Balance
638.7 
 
 
 
 
 
Shares, Issued, Ending Balance
638.7 
 
 
 
 
 
Stockholders' Equity, Beginning Balance
63.9 
351.8 
(4,612.9)
9,378.5 
(33.4)
5,147.9 
Net Income (Loss) [Abstract]
 
 
 
 
 
 
NET EARNINGS
 
 
 
1,235.7 
 
1,235.7 
Elimination of deferred compensation upon adoption of Statement of Financial Accounting Standards No. 123R
 
 
 
 
 
 
Stock-based compensation expense
 
123.6 
 
 
 
 
Stock plans and related tax benefits
 
4.5 
271.7 
 
 
 
Stock Transactions, Parenthetical Disclosures [Abstract]
 
 
 
 
 
 
Treasury stock acquired (29.6 shares)
 
 
 
 
 
 
Treasury stock acquired (40.2 shares)
 
 
 
 
 
 
Treasury stock acquired (32.9 shares)
 
 
(1,463.5)
 
 
 
Adjustments to Additional Paid in Capital [Abstract]
 
 
 
 
 
 
Tax basis adjustment related to pooling of interest
 
42.1 
 
 
 
 
Adoption of Staff Accounting Bulletin No. 108, net of tax
 
 
 
 
 
 
Debt conversion (0.1 shares)
 
 
 
 
 
 
Debt conversion (1.1 shares)
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Adoption of Statement of Financial Accounting Standards No. 158, net of tax
 
 
 
 
 
 
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
127.9 
 
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Unrealized net gain (loss) on securities, net of tax
 
 
 
 
209.7 
 
Other Comprehensive Income, Defined Benefit Plans Adjustment, Net of Tax, Period Increase (Decrease) [Abstract]
 
 
 
 
 
 
Minimum pension liability adjustment, net of tax
 
 
 
 
(28.0)
 
Comprehensive income
 
 
 
 
1,545.3 
 
Cumulative Effect of Initial Adoption of New Accounting Principle [Abstract]
 
 
 
 
 
 
Adoption of Financial Accounting Standards Board Interpretation No. 48
 
 
 
(11.7)
 
 
Brokerage Services Group spin-off
 
 
 
 
 
 
Brokerage Services Group dividend
 
 
 
 
 
 
Dividends ($0.7100 per share)
 
 
 
 
 
 
Dividends ($0.8750 per share)
 
 
 
 
 
 
Dividends ($1.1000 per share)
 
 
 
(572.7)
 
 
Stockholders' Equity, Ending Balance
$ 63.9 
$ 522.0 
$ (5,804.7)
$ 10,029.8 
$ 276.2 
$ 5,087.2 
Statement of Cash Flows (USD $)
In Millions
Year Ended
Jun. 30,
2008
2007
2006
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract]
 
 
 
Net Cash Provided by (Used in) Operating Activities [Abstract]
 
 
 
Income (Loss) from Continuing Operations [Abstract]
 
 
 
NET EARNINGS
$ 1,235.7 
$ 1,138.7 
$ 1,554.0 
Adjustments for Noncash Items Included in Income (Loss) from Continuing Operations [Abstract]
 
 
 
Gain (Loss) on Sale of Property Plant Equipment [Abstract]
 
 
 
Gain on sale of cost-based investment
0.0 
(38.6)
0.0 
Gain on sale of building
(16.0)
0.0 
0.0 
Depreciation and Amortization [Abstract]
 
 
 
Depreciation and amortization
319.1 
288.8 
246.0 
Deferred Income Taxes and Tax Credits [Abstract]
 
 
 
Deferred income taxes
(92.7)
15.1 
(5.0)
Excess tax benefit related to exercises of stock options
(0.7)
(0.2)
(7.9)
Share-based Compensation [Abstract]
 
 
 
Stock-based compensation expense
123.6 
130.5 
142.7 
Net pension expense
40.0 
40.3 
31.4 
Gain (Loss) on Investments [Abstract]
 
 
 
Net realized loss (gain) from the sales of marketable securities
1.3 
(8.3)
4.6 
Amortization of Financing Costs and Discounts [Abstract]
 
 
 
Net amortization of premiums and accretion of discounts on available-for-sale securities
42.7 
40.5 
75.4 
Gain on sale of discontinued businesses, net of tax
(74.0)
(20.9)
(452.8)
Asset Impairment Charges [Abstract]
 
 
 
Impairment of assets of discontinued operations businesses
0.0 
0.0 
18.6 
Other
100.6 
40.8 
30.6 
Increase (Decrease) in Operating Assets [Abstract]
 
 
 
Increase (Decrease) in Receivables [Abstract]
 
 
 
Decrease (increase) in accounts receivable
34.2 
(255.6)
(8.4)
(Increase) decrease in other assets
(40.5)
(88.0)
28.2 
Increase (Decrease) in Accounts Payable [Abstract]
 
 
 
Increase (decrease) in accounts payable
9.7 
(1.5)
3.2 
Increase (Decrease) in Accrued Liabilities [Abstract]
 
 
 
Increase (decrease) in accrued expenses and other liabilities
89.2 
(43.3)
(93.9)
Operating activities from discontinued operations
0.0 
59.7 
245.8 
Net cash flows provided by operating activities
1,772.2 
1,298.0 
1,812.5 
Net Cash Provided by (Used in) Investing Activities [Abstract]
 
 
 
Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract]
 
 
 
Payments to Acquire Marketable Securities [Abstract]
 
 
 
Purchases of corporate and client funds marketable securities
(6,407.2)
(4,449.1)
(5,846.5)
Proceeds from Sale of Available-for-sale Securities [Abstract]
 
 
 
Proceeds from the sales and maturities of corporate and client funds marketable securities
5,140.6 
4,840.0 
4,955.0 
Net decrease (increase) in restricted cash and cash equivalents and other restricted assets held to satisfy client funds obligations
4,119.6 
(598.0)
1,364.1 
Payments to Acquire Productive Assets [Abstract]
 
 
 
Payments to Acquire Property, Plant, and Equipment [Abstract]
 
 
 
Capital expenditures
(181.0)
(172.8)
(258.8)
Additions to intangibles
(96.6)
(150.0)
(115.2)
Payments to Acquire Businesses, Net of Cash Acquired [Abstract]
 
 
 
Acquisitions of businesses, net of cash acquired
(97.3)
(446.9)
(339.1)
Proceeds from the sale of cost-based investment
0.0 
38.6 
0.0 
Dividend received from Broadridge Financial Solutions, Inc., net of $29.9 million cash retained by Broadridge Financial Solutions, Inc.
0.0 
660.1 
0.0 
Other
23.4 
14.5 
12.3 
Proceeds from the sale of businesses included in discontinued operations, net of cash divested
112.4 
17.2 
902.4 
Investing activities of discontinued operations
0.0 
(30.5)
(47.7)
Net cash flows provided by (used in) investing activities
2,613.9 
(276.9)
626.5 
Net Cash Provided by (Used in) Financing Activities [Abstract]
 
 
 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract]
 
 
 
Net (decrease) increase in client funds obligations
(3,480.3)
707.7 
(174.3)
Proceeds from Issuance of Long-term Debt [Abstract]
 
 
 
Proceeds from issuance of debt
21.2 
0.6 
0.5 
Repayments of Long-term Debt [Abstract]
 
 
 
Payments of debt
(10.1)
(1.8)
(0.7)
Proceeds from Issuance or Sale of Equity [Abstract]
 
 
 
Repurchases of common stock
(1,504.8)
(1,900.4)
(1,299.9)
Proceeds from stock purchase plan and excercises of stock options
239.7 
344.2 
218.0 
Excess tax benefit related to exercises of stock options
0.7 
0.2 
7.9 
Payments of Dividends [Abstract]
 
 
 
Dividends paid
(548.9)
(461.3)
(393.9)
Net proceeds from reverse repurchase agreements
11.8 
0.0 
0.0 
Financing activities of discontinued operations
0.0 
134.1 
119.3 
Net cash flows used in financing activities
(5,270.7)
(1,176.7)
(1,523.1)
Effect of Exchange Rate on Cash and Cash Equivalents [Abstract]
 
 
 
Effect of exchange rate changes on cash and cash equivalents
41.3 
15.7 
9.4 
Net change in cash and cash equivalents
(843.3)
(139.9)
925.3 
Cash and cash equivalents of continuing operations, beginning of year
1,746.1 
1,800.1 
777.3 
Cash and cash equivalents of discontinued operations, beginning of year
14.7 
100.6 
198.1 
Cash and cash equivalents, end of year
917.5 
1,760.8 
1,900.7 
Less cash and cash equivalents of discontinued operations, end of year
0.0 
14.7 
100.6 
Cash and cash equivalents of continuing operations, end of year
$ 917.5 
$ 1,746.1 
$ 1,800.1