ADP 2011 Annual Report Download - page 17

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RESULTS OF OPERATIONS
ANALYSIS OF CONSOLIDATED OPERATIONS
Fiscal 2011 Compared to Fiscal 2010
Total Revenues
Our consolidated revenues increased 11% to $9,879.5 million in fiscal 2011, from $8,927.7 million in fiscal 2010, due to an increase in
revenues in Employer Services of 8%, or $485.0 million, to $6,861.7 million, PEO Services of 17%, or $227.1 million, to $1,543.9 million,
and Dealer Services of 24%, or $288.5 million, to $1,494.4 million. In addition, revenues increased $19.6 million due to changes in
foreign currency exchange rates. Total revenue would have increased approximately 6.3% without the impact of acquisitions.
Total Expenses
Our total expenses in fiscal 2011 increased $897.7 million, to $8,063.4 million, from $7,165.7 million in fiscal 2010. The increase in our
consolidated expenses was due to an increase in operating expenses of $623.7 million, an increase in selling, general and
administrative expenses of $195.9 million and an increase in systems development and programming expenses of $63.3 million.
Our total costs of revenues increased 14%, to $5,731.5 million in fiscal 2011, as compared to fiscal 2010 due to an increase in
operating expenses of $623.7 million and an increase in systems development and programming expenses of $63.3 million.
17
(Dollars in millions, except per share amounts)
Years ended June 30,
2011
2010
$ Change
% Change
Total revenues
$
9,879.5
$
8,927.7
$
951.8
11
%
Costs of revenues:
Operating expenses
4,900.9
4,277.2
623.7
15
%
Systems development and
programming costs
577.2
513.9
63.3
12
%
Depreciation and amortization
253.4
238.6
14.8
6
%
Total costs of revenues
5,731.5
5,029.7
701.8
14
%
Selling, general and
administrative expenses
2,323.3
2,127.4
195.9
9
%
Interest expense
8.6
8.6
-
-
Total expenses
8,063.4
7,165.7
897.7
13
%
Other income, net
(116.6
)
(101.2
)
15.4
15
%
Earnings from continuing
operations before income taxes
$
1,932.7
$
1,863.2
$
69.5
4
%
Margin
19.6
%
20.9
%
Provision for income taxes
$
678.5
$
655.9
$
22.6
3
%
Effective tax rate
35.1
%
35.2
%
Net earnings from
continuing operations
$
1,254.2
$
1,207.3
$
46.9
4
%
Diluted earnings per share
from continuing operations
$
2.52
$
2.40
$
0.12
5
%