ADP 2013 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2013 ADP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 101

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101

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.
The Company’s receivables, whose carrying value approximates fair value, are as follows:
Long-term receivables at June 30, 2013 mature as follows:
The Company determines the allowance for doubtful accounts related to notes receivable based upon a specific reserve for known collection
issues, as well as a non-specific reserve based upon aging, both of which are based upon history of such losses and current economic conditions.
Based upon the Company's methodology, the notes receivable balances with specific and non-specific reserves and the specific and non-specific
reserves associated with those balances are as follows:
52
June 30, 2013
June 30, 2012
Current
Long-term
Current
Long-term
Trade receivables
$
1,564.8
$
—
$
1,355.7
$
—
Notes receivable
91.0
154.7
89.1
145.5
Less:
Allowance for doubtful accounts - trade receivables
(45.6
)
—
(
40.7
)
—
Allowance for doubtful accounts - notes receivable
(5.3
)
(9.0
)
(5.4
)
(8.8
)
Unearned income - notes receivable
(6.6
)
(7.0
)
(7.0
)
(6.9
)
$
1,598.3
$
138.7
$
1,391.7
$
129.8
2015
$
67.2
2016
$
47.6
2017
$
28.8
2018
$
11.1
Total
$
154.7
June 30, 2013
Notes Receivable
Reserve
Current
Long-term
Current
Long-term
Specific reserve
$
0.3
$
0.5
$
0.3
$
0.5
Non-specific reserve
90.7
154.2
5.0
8.5
$
91.0
$
154.7
$
5.3
$
9.0
June 30, 2012
Notes Receivable
Reserve
Current
Long-term
Current
Long-term
Specific reserve
$
0.4
$
0.6
$
0.4
$
0.6
Non-specific reserve
88.7
144.9
5.0
8.2
$
89.1
$
145.5
$
5.4
$
8.8