ADP 2009 Annual Report Download - page 8

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Change in our credit ratings could adversely impact our operations and lower our profitability
The major credit rating agencies periodically evaluate our creditworthiness and have consistently given us their highest long-term debt and
commercial paper ratings. Failure to maintain high credit ratings on long-term and short-term debt could increase our cost of borrowing, reduce
our ability to obtain intra-day borrowing required by our Employer Services business, and ultimately reduce our client interest revenue.
We may be unable to attract and retain qualified personnel
Our ability to grow and provide our clients with competitive services is partially dependent on our ability to attract and retain highly
motivated people with the skills to serve our clients. Competition for skilled employees in the outsourcing and other markets in which we
operate is intense and if we are unable to attract and retain highly skilled and motivated personnel, expected results from our operations may
suffer.
Item 1B. Unresolved Staff Comments
None
Item 2. Properties
ADP owns 43 of its processing centers, other operational offices, sales offices and its corporate headquarters complex in Roseland, New
Jersey, which aggregate approximately 4,153,066 square feet. None of ADP’ s owned facilities is subject to any material encumbrances. ADP
leases space for some of its processing centers, other operational offices and sales offices. All of these leases, which aggregate approximately
5,793,581 square feet in North America, Europe, South America (primarily Brazil), Asia, Australia and South Africa, expire at various times up
to the year 2036. ADP believes its facilities are currently adequate for their intended purposes and are adequately maintained.
Item 3. Legal Proceedings
In the normal course of business, the Company is subject to various claims and litigation. While the outcome of any litigation is inherently
unpredictable, the Company believes it has valid defenses with respect to the legal matters pending against it and the Company believes that the
ultimate resolution of these matters will not have a material adverse impact on its financial condition, results of operations or cash flows.
Item 4. Submission of Matters to a Vote of Security Holders
None
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