ADP 2013 Annual Report Download - page 58

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Classification of corporate investments on the Consolidated Balance Sheets is as follows:
Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the
obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on
our Consolidated Balance Sheets.
Funds held for clients have been invested in the following categories:
Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll and tax payment obligations
and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations
represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current
liability on the Consolidated Balance Sheets totaling $21,956.3 million and $20,856.2 million as of June 30, 2013 and June 30, 2012 ,
respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying
the client funds obligations. The Company has reported the cash flows related to the purchases of corporate and client funds marketable
securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the
investing section of the Statements of Consolidated Cash Flows. The Company has reported the cash inflows and outflows related to client
funds investments with original maturities of 90 days or less on a net basis within net increase in restricted cash and cash equivalents and other
restricted assets held to satisfy client funds obligations in the investing section of the Statements of Consolidated Cash Flows. The Company has
reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase in client funds
obligations in the financing section of the Statements of Consolidated Cash Flows.
Approximately 83% of the available-for-sale securities held a AAA or AA rating at June 30, 2013 , as rated by Moody's, Standard & Poor's and,
for Canadian securities, Dominion Bond Rating Service. All available-for-sale securities were rated as investment grade at June 30, 2013 .
50
June 30,
2013
2012
Corporate investments:
Cash and cash equivalents
$
1,699.1
$
1,548.1
Short-term marketable securities
28.0
30.4
Long-term marketable securities
314.0
86.9
Total corporate investments
$
2,041.1
$
1,665.4
June 30,
2013
2012
Funds held for clients:
Restricted cash and cash equivalents held to satisfy client funds obligations
$
3,732.1
$
3,563.0
Restricted short-term marketable securities held to satisfy client funds obligations
1,407.7
2,954.1
Restricted long-term marketable securities held to satisfy client funds obligations
17,089.0
15,022.0
Total funds held for clients
$
22,228.8
$
21,539.1