ADP 2010 Annual Report Download - page 11

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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, results from our
operations may suffer.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
ADP owns 41 of its processing/print centers, other operational offices, sales offices and its corporate headquarters complex in
Roseland, New Jersey, which aggregate approximately 3,913,066 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 5,657,832 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.
9