ADP 2008 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2008 ADP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

NOTE 15. CONTRACTUAL COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS
The Company has obligations under various facilities and equipment leases and software license agreements. Total expense under these
agreements was approximately $247.4 million, $281.0 million, and $245.8 million in fiscal 2008, 2007 and 2006, respectively, with minimum
commitments at June 30, 2008 as follows:
In addition to fixed rentals, certain leases require payment of maintenance and real estate taxes and contain escalation provisions based on
future adjustments in price indices.
As of June 30, 2008, the Company has purchase commitments of approximately $309.3 million relating to software and equipment purchases
and maintenance contracts, of which $107.7 million relates to fiscal 2009, $65.8 million relates to fiscal 2010 and the remaining $135.8 million
relates to fiscal 2011 through fiscal 2013.
The Company is subject to various claims and litigation in the normal course of business. The Company does not believe that the resolution of
these matters will have a material impact on the consolidated financial statements.
It is not the Company’ s business practice to enter into off-balance sheet arrangements. However, the Company is exposed to market risk from
changes in foreign currency exchange rates that could impact its financial position, results of operations and cash flows. The Company
manages its exposure to these market risks through its regular operating and financing activities and, when deemed appropriate, through the use
of derivative financial instruments. The Company uses derivative financial instruments as risk management tools and not for trading purposes.
In the normal course of business, the Company also enters into contracts in which it makes representations and warranties that relate to the
performance of the Company’ s services and products. The Company does not expect any material losses related to such representations and
warranties.
66
Years ending June 30,
2009 $252.9
2010 217.9
2011 182.1
2012 156.1
2013 43.5
Thereafter 50.8
$903.3