ADP 2012 Annual Report Download - page 27

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Fiscal 2011 Compared to Fiscal 2010
(Dollars in millions, except per share amounts)
Total Revenues
Our total 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 $507.8 million, to $7,042.9 million, PEO Services of 17%, or $227.1 million, to $1,543.9 million, and Dealer
Services of 23%, or $287.9 million, to $1,536.0 million. Total revenue would have increased approximately 6% without the impact of
acquisitions. There was no impact to total revenue growth rates as a result of changes in foreign currency exchange rates.
Total revenues for fiscal 2011 include interest on funds held for clients of $540.1 million, as compared to $542.8 million in fiscal 2010. The
decrease in the consolidated interest earned on funds held for clients resulted from the decrease in the average interest rate earned to 3.2%
during fiscal 2011 as compared to 3.6% for fiscal 2010, partially offset by an increase in our average client funds balance of 11%, to $16.9
billion in fiscal 2011.
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 costs 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 costs of $63.3 million.
25
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
%