ADP 2013 Annual Report Download - page 54

2012. The adoption of ASU 2013-02 will not have an impact on the Company's consolidated results of operations, financial condition, or cash
flows.
NOTE 2. OTHER INCOME, NET
Other income, net consists of the following:
During fiscal 2013 , the Company completed the sale of two buildings that were previously classified as assets held for sale on the Consolidated
Balance Sheets and, as a result, recorded gains of $2.2 million in other income, net, on the Statements of Consolidated Earnings.
During fiscal 2012 , the Company sold assets related to rights and obligations to resell a third-party expense management platform, and, as a
result, recorded a gain of $66.0 million in other income, net, on the Statements of Consolidated Earnings.
During fiscal 2012 , the Company completed the sale of two buildings for their combined carrying value of $6.9 million , net of selling costs.
The Company had previously classified these assets as assets held for sale on the Consolidated Balance Sheets and recognized impairment losses
within other income, net on the Statements of Consolidated Earnings of $2.2 million and $11.7 million in fiscal 2012 and 2011 , respectively.
During fiscal year 2011, the Company sold buildings that were previously classified as assets held for sale on the Consolidated Balance Sheets
and, as a result, recorded net gains of $1.8 million , in other income, net on the Statements of Consolidated Earnings.
During fiscal 2012 , the Company concluded that it had the intent to sell certain available-for-sale securities with unrealized losses of $5.8
million . As such, the Company recorded an impairment charge of $5.8 million
in other income, net, on the Statements of Consolidated Earnings.
As of June 30, 2012 , all such securities had been sold.
NOTE 3. ACQUISITIONS
Assets acquired and liabilities assumed in business combinations were recorded on the Company’s Consolidated Balance Sheets as of the
respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the
Company have been included in the Statements of Consolidated Earnings since their respective dates of acquisition. The excess of the purchase
price over the estimated fair values of the underlying assets acquired and liabilities assumed was allocated to goodwill. In certain circumstances,
the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company
receives final information, including appraisals and other analysis. Accordingly, the measurement period for such purchase price allocations will
end when the information, or the facts and circumstances, becomes available, but will not exceed twelve months.
The Company acquired two businesses during fiscal 2013 for approximately $40.4 million , net of cash acquired. These acquisitions resulted in
approximately $29.5 million of goodwill. Intangible assets acquired, which total approximately $13.5 million for these two acquisitions,
included customer contracts and lists and software that are being amortized over a weighted average life of approximately 8 years . As of
June 30, 2013 , the Company had not yet finalized the purchase price allocation for these two acquisitions.
46
Years ended June 30,
2013 2012 2011
Interest income on corporate funds
$
(64.5
)
$
(85.2
)
$
(88.8
)
Realized gains on available-for-sale securities
(32.1
)
(32.1
)
(38.0
)
Realized losses on available-for-sale securities
3.5
7.7
3.6
Impairment losses on available-for-sale securities
—
5.8
—
Impairment losses on assets held for sale
—
2.2
11.7
Gains on sales of buildings
(2.2
)
— (
1.8
)
Gain on sale of assets
—
(
66.0
)
—
Other, net
(0.9
)
(3.2
)
(3.3
)
Other income, net
$
(96.2
)
$
(170.8
)
$
(116.6
)