ADP 2011 Annual Report Download - page 56

Estimated amortization expenses of the Company
’ s existing intangible assets for the next five fiscal years are as follows:
The Company has not incurred significant costs to renew or extend the term of acquired intangible assets during fiscal 2011.
NOTE 11. SHORT - TERM FINANCING
In June 2011, the Company entered into a $2.0 billion, 364
- day credit agreement with a group of lenders. The 364 - day facility replaced
our prior $2.5 billion 364 - day facility. In addition, the Company entered into a four - year $3.25 billion credit facility maturing in June
2015 that contains an accordion feature under which the aggregate commitment can be increased by $500.0 million, subject to the
availability of additional commitments. The four
- year facility replaced our prior $2.25 billion five - year facility, which expired in June
2011. The Company also has an existing $1.5 billion three
- year credit facility that matures in June 2013 that also contains an
accordion feature under which the aggregate commitment can be increased by $500.0 million, subject to the availability of additional
commitments. The interest rate applicable to committed borrowings is tied to LIBOR, the federal funds effective rate or the prime rate
depending on the notification provided by the Company to the syndicated financial institutions prior to borrowing. The Company is
also required to pay facility fees on the credit agreements. The primary uses of the credit facilities are to provide liquidity to the
commercial paper program and funding for general corporate purposes, if necessary. The Company had no borrowings through June
30, 2011 under the credit agreements.
The Company
’ s U.S. short - term funding requirements related to client funds are sometimes obtained through a short - term
commercial paper program, which provides for the issuance of up to $6.25 billion in aggregate maturity value of commercial paper. In
August 2011, the Company increased the U.S. short
- term commercial paper program to provide for the issuance of up to $6.75 billion
in aggregate maturity value. The Company
’ s commercial paper program is rated A - 1+ by Standard and Poor ’ s and Prime - 1 by
Moody
’ s. These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from
overnight to up to 364 days. At June 30, 2011 and 2010, the Company had no commercial paper outstanding. In both fiscal 2011 and
2010, the Company
’ s average borrowings were $1.6 billion, at weighted average interest rates of 0.2%. The weighted average
maturity of the Company
’ s commercial paper in fiscal 2011 and 2010 was less than two days for both fiscal years.
The Company
’ s U.S. and Canadian short - term funding requirements related to client funds obligations are sometimes obtained on a
secured basis through the use of reverse repurchase agreements. These agreements are collateralized principally by government and
government agency securities. These agreements generally have terms ranging from overnight to up to five business days. The
Company has $2.0 billion available to it on a committed basis under these reverse repurchase agreements. At June 30, 2011 and 2010,
there were no outstanding obligations under reverse repurchase agreements. In fiscal 2011 and 2010, the Company had average
outstanding balances under reverse repurchase agreements of $505.2 million and $425.0 million, respectively, at weighted average
interest rates of 0.4% and 0.2%, respectively.
NOTE 12. DEBT
Components of long
- term debt are as follows:
56
Amount
Twelve months ending June 30, 2012
$
169.4
Twelve months ending June 30, 2013
$
127.8
Twelve months ending June 30, 2014
$
95.2
Twelve months ending June 30, 2015
$
69.5
Twelve months ending June 30, 2016
$
53.2
June 30,
2011
2010
Industrial revenue bonds
(with variable interest rates from 0.4% to 1.1%)
$
21.6
$
25.4
Secured financing
15.4
17.2
37.0
42.6
Less: current portion
(2.8
)
(2.8
)
$
34.2
$
39.8