ADP 2013 Annual Report Download - page 55

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The Company acquired seven businesses in fiscal 2012 for an aggregate purchase price of approximately $292.3 million , net of cash acquired.
These acquisitions resulted in approximately $182.6 million of goodwill. Intangible assets acquired, which total approximately $90.0 million for
these seven
acquisitions, included customer contracts and lists, software, and trademarks that are being amortized over a weighted average life of
approximately 11 years . The Company finalized the purchase price allocation for these seven acquisitions during fiscal 2013 and adjusted the
preliminary values allocated to certain assets and liabilities in order to reflect final information received.
The Company acquired nine businesses in fiscal 2011 for approximately $776.1 million , net of cash acquired. These acquisitions resulted in
approximately $543.6 million of goodwill. Intangible assets acquired, which totaled approximately $246.4 million for these nine acquisitions,
included customer contracts and lists, software and trademarks that are being amortized over a weighted average life of approximately 12 years.
The Company finalized the purchase price allocation for these nine acquisitions during fiscal 2012 and adjusted the preliminary values allocated
to certain assets and liabilities in order to reflect final information received.
The Company reviews estimates of the fair value of contingent consideration ("earn-out") expected to be paid in the event that certain
performance metrics are achieved over an earn-out period and makes adjustments when facts and circumstances warrant. The Company made
contingent payments relating to previously consummated acquisitions of $14.5 million , $2.8 million , and $0.8 million during fiscal 2013 ,
2012 , and 2011 .
The acquisitions discussed above for fiscal 2013 , 2012 , and 2011 were not material, either individually or in the aggregate, to the Company's
operations, financial position, or cash flows.
NOTE 4. DIVESTITURES
On December 17, 2012 , the Company completed the sale of its Taxware Enterprise Service business ("Taxware") for a pre-tax gain of $58.8
million , less costs to sell, and recorded such gain within earnings from discontinued operations on the Statements of Consolidated Earnings. In
connection with the disposal of Taxware, the Company has classified the results of this business as discontinued operations for all periods
presented. Taxware was previously reported in the Employer Services segment.
Operating results for discontinued operations were as follows:
47
Years ended June 30,
2013
2012
2011
Revenues
$
23.7
$
49.2
$
46.5
Earnings from discontinued operations before income taxes
8.0
14.2
14.7
Provision for income taxes
3.0
5.4
5.5
Net earnings from discontinued operations before gain on disposal of
discontinued operations
5.0
8.8
9.2
Gain on disposal of discontinued operations, less costs to sell
58.8
—
—
Provision for income taxes
22.1
—
—
Net gain on disposal of discontinued operations
36.7
—
—
Net earnings from discontinued operations
$
41.7
$
8.8
$
9.2