ADP 2015 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2015 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 112

  • 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
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Funds held for clients have been invested in the following categories:
June 30,
2016
2015
Funds held for clients:
Restricted cash and cash equivalents held to satisfy client funds obligations
$ 12,267.5
$ 4,047.0
Restricted short-term marketable securities held to satisfy client funds obligations
3,032.1
4,497.7
Restricted long-term marketable securities held to satisfy client funds obligations
18,541.6
16,320.6
Total funds held for clients
$ 33,841.2
$ 24,865.3
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 $33,331.8 million and $24,650.5 million as of June 30, 2016 and 2015 , 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 ninety 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 80% of the available-for-sale securities held a AAA or AA rating at June 30, 2016 , as rated by Moody's, Standard & Poor's and, for
Canadian securities, DBRS. All available-for-sale securities were rated as investment grade at June 30, 2016 .
Expected maturities of available-for-sale securities at June 30, 2016 are as follows:
Due in one year or less $ 3,055.6
Due after one year to two years 2,994.7
Due after two years to three years 2,860.0
Due after three years to four years 4,737.2
Due after four years 7,957.5
Total available-for-sale securities $ 21,605.0
NOTE 5 . PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at cost and accumulated depreciation at June 30, 2016 and 2015 are as follows:
June 30,
2016
2015
Property, plant, and equipment:
Land and buildings
$ 745.7
$ 730.6
Data processing equipment
605.0
588.5
Furniture, leaseholds, and other
490.1
457.3
1,840.8
1,776.4
Less: accumulated depreciation
(1,155.8)
(1,103.7)
Property, plant, and equipment, net
$ 685.0
$ 672.7
Depreciation of property, plant and equipment was $135.6 million , $127.2 million , and $124.1 million for fiscal 2016 , 2015 , and 2014 , respectively.
56