ADP 2011 Annual Report Download - page 55

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NOTE 9. ASSETS HELD FOR SALE
During fiscal 2009, the Company reclassified assets related to three buildings as assets held for sale on the Consolidated Balance
Sheets. Such assets were previously reported in property, plant and equipment, net on the Consolidated Balance Sheets. The
Company sold two of the buildings as of June 30, 2010. Additionally, during fiscal 2010, the Company reclassified assets related to
one other building as assets held for sale on the Consolidated Balance Sheets. At June 30, 2010, the Company had $11.8 million
classified as Assets Held for Sale on the Consolidated Balance Sheets relating to the two buildings that were subsequently sold
during fiscal 2011. In fiscal 2011, the Company reclassified an additional two buildings as Assets Held for Sale that were previously
reported in property, plant and equipment, net on the Consolidated Balance Sheets. These two buildings remain in Assets Held for
Sale on the Consolidated Balance Sheets at June 30, 2011 for $9.1 million.
NOTE 10. GOODWILL AND INTANGIBLE ASSETS, NET
Changes in goodwill for the fiscal year ended June 30, 2011 and 2010 are as follows:
In fiscal 2011, 2010 and 2009, the Company performed the required annual impairment tests of goodwill and determined that there was
no impairment.
Components of intangible assets are as follows:
Other intangibles consist primarily of purchased rights, covenants, patents and trademarks (acquired directly or through
acquisitions). All of the intangible assets have finite lives and, as such, are subject to amortization. The weighted average remaining
useful life of the intangible assets is 8 years (4 years for software and software licenses, 11 years for customer contracts and lists,
and 8 years for other intangibles). Amortization of intangible assets was $171.9 million, 156.6 million, and $151.9 million for fiscal 2011,
2010, and 2009, respectively.
55
Employer
PEO
Dealer
Services
Services
Services
Total
Balance as of June 30, 2009
$
1,567.0
$
4.8
$
803.7
$
2,375.5
Additions and other adjustments, net
80.6
-
1.4
82.0
Adjustments for discontinued operations
-
-
(15.0
)
(15.0
)
Currency translation adjustments
(36.3
)
-
(22.9
)
(59.2
)
Balance as of June 30, 2010
$
1,611.3
$
4.8
$
767.2
$
2,383.3
Additions and other adjustments, net
251.3
-
332.9
584.2
Currency translation adjustments
72.4
-
33.7
106.1
Balance as of June 30, 2011
$
1,935.0
$
4.8
$
1,133.8
$
3,073.6
June 30,
2011
2010
Intangibles:
Software and software licenses
$
1,322.4
$
1,160.0
Customer contracts and lists
821.0
640.3
Other intangibles
238.3
209.5
2,381.7
2,009.8
Less accumulated amortization:
Software and software licenses
(1,062.1
)
(946.0
)
Customer contracts and lists
(443.7
)
(375.6
)
Other intangibles
(160.2
)
(145.8
)
(1,666.0
)
(1,467.4
)
Intangible assets, net
$
715.7
$
542.4