ADP 2012 Annual Report Download - page 67

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The following table presents the Company’s assets measured at fair value on a recurring basis at June 30, 2012. Included in the table are
available-for-sale securities within corporate investments of $117.3 million and funds held for clients of $17,976.1 million. Refer to Note 5 for
additional disclosure in relation to corporate investments and funds held for clients.
The following table presents the Company’s assets measured at fair value on a recurring basis at June 30, 2011. Included in the table are
available-for-sale securities within corporate investments of $134.3 million and funds held for clients of $16,793.2 million.
NOTE 7. RECEIVABLES
Accounts receivable, net, includes the Company’s trade receivables, which are recorded based upon the amount the Company expects to
receive from its clients, net of an allowance for doubtful accounts. The Company’s receivables also include notes receivable for the financing
of the sale of computer systems, primarily from auto, truck, motorcycle, marine, recreational vehicle and heavy equipment retailers and
manufacturers. Notes receivable are recorded based upon the amount the Company expects to receive from its clients, net of an allowance for
doubtful accounts and unearned income. The allowance for doubtful accounts is the Company's best estimate of probable credit losses related
to trade receivables and notes receivable based upon the aging of the receivables, historical collection data, internal assessments of credit
quality and the economic conditions in the automobile industry, as well as in the economy as a whole. The Company charges off uncollectable
amounts against the reserve in the period in which it determines they are uncollectable. Unearned income on notes receivable is amortized
using the effective interest method.
60
Level 1
Level 2
Level 3
Total
U.S Treasury and direct obligations of
U.S. government agencies
$
-
$
6,674.6
$
-
$
6,674.6
Corporate bonds -
7,368.0
-
7,368.0
Canadian provincial bonds -
655.9
-
655.9
Asset-backed securities -
548.4
-
548.4
Municipal bonds -
552.9
-
552.9
Canadian government obligations and
Canadian government agency obligations -
1,017.0
-
1,017.0
Other securities
20.6
1,256.0
-
1,276.6
Total available-for-sale securities $
20.6
$
18,072.8
$ - $
18,093.4
Level 1
Level 2
Level 3
Total
U.S Treasury and direct obligations of
U.S. government agencies
$
-
$
6,759.1
$
-
$
6,759.1
Corporate bonds -
6,126.6
-
6,126.6
Canadian provincial bonds -
494.3
-
494.3
Asset-backed securities -
447.8
-
447.8
Municipal bonds -
516.2
-
516.2
Canadian government obligations and
Canadian government agency obligations -
1,101.5
-
1,101.5
Other securities
20.1
1,461.9
-
1,482.0
Total available-for-sale securities $
20.1
$
16,907.4
$ - $
16,927.5