ADP 2015 Annual Report Download - page 64

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Year ended June 30,
2016
2015
2014
Performance-based restricted stock (A)
$ 75.95
$ 64.91
$ 53.08
Time-based restricted stock (A)
$ 76.09
$ 73.83
$ 62.85
(A) The weighted average fair values of grants before September 30, 2014 were adjusted to reflect the impact of the spin-off of CDK.
B. Pension Plans
The Company has a defined benefit cash balance pension plan covering substantially all U.S. employees, under which employees are credited with a
percentage of base pay plus interest. The plan interest credit rate varies from year-to-year based on the ten-year U.S. Treasury rate . Employees are fully vested
upon completion of three years of service. The Company's policy is to make contributions within the range determined by generally accepted actuarial principles.
Effective January 1, 2015, associates hired on or after this date are not eligible to participate in the Company's U.S. pension plan. In addition, associates rehired on
or after January 1, 2015 will no longer be eligible to earn additional contributions but will continue to earn interest on any balance that remains in the pension plan.
The Company also has various retirement plans for its non-U.S. employees and maintains a Supplemental Officers Retirement Plan (“SORP”). The SORP is a
defined benefit plan pursuant to which the Company pays supplemental pension benefits to certain corporate officers upon retirement based upon the officers' years
of service and compensation. As of January 23, 2014, newly appointed corporate officers are no longer eligible to participate in the SORP.
A June 30 measurement date was used in determining the Company's benefit obligations and fair value of plan assets.
The Company is required to (a) recognize in its Consolidated Balance Sheets an asset for a plan's net overfunded status or a liability for a plan's net
underfunded status, (b) measure a plan's assets and its obligations that determine its funded status as of the end of the employer's fiscal year, and (c) recognize
changes in the funded status of a defined benefit plan in the year in which the changes occur in accumulated other comprehensive income (loss).
The Company's pension plans' funded status as of June 30, 2016 and 2015 is as follows:
June 30,
2016
2015
Change in plan assets:
Fair value of plan assets at beginning of year
$ 2,009.8
$ 2,024.1
Actual return on plan assets
61.2
60.6
Employer contributions
11.0
9.9
Currency translation adjustments
(8.7)
(8.8)
Benefits paid
(67.0)
(76.0)
Fair value of plan assets at end of year
$ 2,006.3
$ 2,009.8
Change in benefit obligation:
Benefit obligation at beginning of year
$ 1,661.0
$ 1,598.7
Service cost
70.4
68.4
Interest cost
67.4
62.8
Actuarial losses
145.3
21.7
Currency translation adjustments
(7.6)
(17.5)
Plan changes
(25.6)
—
Curtailments and special termination benefits
—
2.9
Benefits paid
(67.0)
(76.0)
Projected benefit obligation at end of year
$ 1,843.9
$ 1,661.0
Funded status - plan assets less benefit obligations
$ 162.4
$ 348.8
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