ADP 2015 Annual Report Download - page 75

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Year ended June 30, 2015
First
Quarter
Second Quarter
Third
Quarter
Fourth
Quarter
Revenues from continuing operations
$ 2,566.1
$ 2,653.6
$ 3,024.3
$ 2,694.5
Gross profit from continuing operations
$ 1,007.8
$ 1,070.3
$ 1,340.0
$ 1,092.7
Earnings from continuing operations before income taxes
$ 450.4
$ 498.8
$ 739.9
$ 381.6
Net earnings from continuing operations
$ 296.6
$ 332.5
$ 490.3
$ 257.0
Net (loss)/earnings from discontinued operations
$ (1.4)
$ (1.0)
$ (0.7)
$ 79.2
Net earnings
$ 295.2
$ 331.5
$ 489.6
$ 336.2
Basic per common share amounts:
Basic earnings per share from continuing operations
$ 0.62
$ 0.70
$ 1.04
$ 0.55
Basic earnings per share from discontinued operations
$ —
$ —
$ —
$ 0.17
Diluted per common share amounts:
Diluted earnings per share from continuing operations
$ 0.62
$ 0.69
$ 1.03
$ 0.55
Diluted earnings per share from discontinued operations
$ —
$ —
$ —
$ 0.17
(A) Earnings from continuing operations before income taxes; net earnings from continuing operations; net earnings; and basic and diluted EPS from continuing
operations include the gain on the sale of AMD. This increased earnings from continuing operations before income taxes by $29.1 million , net earnings from
continuing operations and net earnings by $21.8 million , and basic and diluted earnings per share from continuing operations by $0.05 .
(B) Earnings from continuing operations before income taxes; net earnings from continuing operations; net earnings; and basic and diluted EPS from continuing
operations include the gain on sale of a building. This increased earnings from continuing operations before income taxes by $13.9 million , net earnings from
continuing operations and net earnings by $8.6 million and basic and diluted earnings per share from continuing operations by $0.02 .
(C) Earnings from continuing operations before income taxes; net earnings from continuing operations; net earnings; and basic and diluted EPS from continuing
operations include the charge for the workforce optimization effort. This decreased earnings from continuing operations before income taxes by $48.2 million , net
earnings from continuing operations and net earnings by $31.8 million and basic and diluted earnings per share from continuing operations by $0.07 .
NOTE 15 . SUBSEQUENT EVENTS
With the exception of the legal claim filed in July 2016 and the settlement of the EEOC matter, both of which are discussed in Note 11, and the items
listed below, there are no further subsequent events for disclosure.
In July 2016, ADP announced its service alignment initiative intended to align the Company's client service operations with its platform simplification
strategy.
The Company's subsidiary captive insurance company, ADP Indemnity, paid a premium of $221.0 million in July 2016 to enter into a reinsurance
arrangement with Chubb to cover substantially all losses for the fiscal 2017 policy year on terms substantially similar to the fiscal 2016 reinsurance policy to cover
losses up to $1 million per occurrence related to the workers' compensation and employer's liability deductible reimbursement insurance protection for PEO
Services worksite employees.
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