ADP 2014 Annual Report Download - page 71

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adjust the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a revision become known.
In fiscal 2015 , the Company reached agreements with the IRS regarding all outstanding tax audit issues in dispute for the tax years through and including June 30,
2013 , which did not have a material impact to the consolidated financial statements of the Company.
NOTE 11. COMMITMENTS AND CONTINGENCIES
The Company has obligations under various facilities and equipment leases and software license agreements. Minimum commitments under these obligations with
a future life of greater than one year at June 30, 2015 are as follows:
Y ears ending June 30,
2016 $ 89.6
2017 80.6
2018 63.6
2019 40.1
2020 26.6
Thereafter 20.4
$ 320.9
In addition to fixed rentals, certain leases require payment of maintenance and real estate taxes and contain escalation provisions based on future adjustments in
price indices.
As of June 30, 2015 , the Company has purchase commitments of approximately $743.7 million , including a reinsurance premium with ACE American Insurance
Company for the fiscal 2016 policy year, as well as obligations related to purchase and maintenance agreements on our software, equipment, and other assets, of
which $358.7 million relates to fiscal 2016 , $114.8 million relates to the fiscal year ending June 30, 2017 and the remaining $270.2 million relates to fiscal years
ending June 30, 2018 through fiscal 2020 .
In June 2011, the Company received a Commissioner’s Charge from the U.S. Equal Employment Opportunity Commission (“EEOC”) alleging that the Company
has violated Title V II of the Civil Rights Act of 1964 by refusing to recruit, hire, transfer and promote certain persons on the basis of their race, in the State of
Illinois from at least the period of J anuary 1, 2007 to the present. The Company continues to investigate the allegations set forth in the Commissioner’s Charge
and is cooperating with the EEOC’s investigation.
The Company is subject to various claims and litigation in the normal course of business. When a loss is considered probable and reasonably estimable, the
Company records a liability in the amount of its best estimate for the ultimate loss. At this time, the Company is unable to estimate any reasonably possible loss, or
range of reasonably possible loss, with respect to the matters described above. This is primarily because these matters involve complex issues subject to inherent
uncertainty. There can be no assurance that these matters will be resolved in a manner that is not adverse to the Company.
It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in
which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material
losses related to such representations and warranties.
NOTE 12. RECL A SSIFICATION OUT OF ACCUMUL A TED OTHER COMPREHENSIV E INCOME
Comprehensive income is a measure of income that includes both net earnings and other comprehensive income (loss). Other comprehensive income (loss) results
from items deferred on the Consolidated Balance Sheets in stockholders' equity. Other comprehensive income (loss) was $(350.6) million , $162.8 million , and
$(214.8) million in fiscal 2015 , 2014 , and 2013 , respectively. Changes in Accumulated Other Comprehensive Income ("A OCI") by component are as follows:
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