ADP 2007 Annual Report Download

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VISION. COMMITMENT. PERFORMANCE.
|
2007 SUMMARY ANNUAL REPORT
“Fiscal 2007 was
a year of strong
performance.
We increased
revenues and new
business sales,

Table of contents

  • Page 1
    "Fiscal 2007 was a year of strong performance. We increased VISION. COMMITMENT. PERFORMANCE. | 2007 S UMMARY A NNUAL R EPORT revenues and new business sales,

  • Page 2
    ... that have served us so well for so many years. ADP Mission Statement and the Service Profit Chain Our Mission is to provide superior value to our clients by making available a wide range of easy-to-use, cost-effective, business outsourcing solutions for employers and vehicle dealers of all...

  • Page 3
    ... per share from continuing Gary C. Butler operations of $1.83 increased 26%, which includes the fiscal 2007 first quarter PRESIDENT & CHIEF EXECUTIVE OFFICER net one-time gain primarily from the sale of a Dealer Services non-core minority investment. Excluding the net one-time gain, diluted earnings...

  • Page 4
    ... our Company. Gary C. Butler PRESIDENT & CHIEF EXECUTIVE OFFICER August 29, 2007 TABLE OF CONTENTS Inside Front Cover 03 04 08 22 Letter to Shareholders Financial Highlights Perspectives Employer Services Dealer Services 28 32 34 Financial Statements Board of Directors and Corporate Officers...

  • Page 5
    ... our Selected Financial Data table within the 2007 Annual Report on Form 10-K for additional information on our return on equity calculation. Note 2. The Company adopted Statement of Financial Accounting Standards No. 123R, "Share-Based Payment" ("SFAS No. 123R"), effective July 1, 2005, using the...

  • Page 6
    ...-growing, lessprofitable, non-strategic businesses in fiscal 2007 and successfully refocused ADP on our Employer Services and Dealer Services businesses which are in attractive, high-growth markets. Fiscal 2007 was our third consecutive year in ADP's return to double-digit revenue growth and we...

  • Page 7
    ... in Asia and Eastern Europe are significant since vehicle sales growth in recent years has outpaced North America and Western Europe. Asia is poised to become the largest region for automotive sales in the world over the services. Our economic value proposition to all-sized companies is...

  • Page 8
    Gary C. Butler PRESIDENT & CHIEF EXECUTIVE OFFICER S. Michael Martone CHIEF OPERATING OFFICER Christopher R. Reidy CHIEF FINANCIAL OFFICER Is ADP where it expected to be post spin-off? Yes, the direction for the new ADP has been set and we are executing well against our strategic growth program ...

  • Page 9
    ... initiatives: consolidation of our data centers; increased resources at our offshore locations in Hyderabad and Pune, India, and at our smartshore facilities in El Paso, Texas and Allentown, Pennsylvania; and we opened a new smartshore facility in Augusta, Georgia in July 2007. As we exited fiscal...

  • Page 10
    ... self-service) • Payroll administration (time and labor management, grossto-net, tax filing and compliance services, new hire and wage garnishment services, direct deposit) • Benefits administration (COBRA services, health and welfare, FSAs, carrier enrollment services, commuter benefit services...

  • Page 11
    ... resource management services • Employee data and records management • Management of salaries and pay grades • Career and succession planning • Government reporting Benefits administration services • Health and welfare • COBRA administration • Flexible Spending Account (FSA) services...

  • Page 12
    ... acquisitions to help us expand our client base and reach into adjacent markets: • Employease® - a leading Web-based solution for HR and benefits professionals, featuring employee self-service - which we are branding as ADP's HR/Benefits Solution [See Access Insurance Holdings case study, page 16...

  • Page 13
    ...Texas; this year, we added a second in Augusta, Georgia, to continue our strategy of providing quality client service through a centralized service environment. Offshore Solution Centers - Our first offshore facility, in Hyderabad, India, helped improve our level of global competitiveness by serving...

  • Page 14
    ...President & General Manager GlobalView Europe THE CLIENT Founded in Sweden in 1943, IKEA is an international home furnishing company that offers a wide range of affordably priced, well-designed, functional products. THEIR NEED Provide flexible, efficient, and compliant HR and payroll services for...

  • Page 15
    ...multilingual, multicurrency, compliant, and scalable solution on a single shared platform worldwide, provides ADP's GlobalView clients with visibility across their global organizations. Payroll and HR experts deliver support from strategic, local service centers. ADP Summary Annual Report 2007 13

  • Page 16
    THE CLIENT Reflecting a classic American lifestyle, Abercrombie & Fitch is a leading specialty retailer of casual luxury apparel for men, women, and children. THEIR NEED A comprehensive, compliant payroll solution with the capability to compute and file payrollrelated taxes in multiple ...

  • Page 17
    ... internal IT resources to support our payroll function. ADP maintains the system, implements upgrades to assure regulatory compliance, and manages our federal and state payroll tax filings." Marcia Aamodt Director of HRIS and Payroll Services Abercrombie & Fitch "ADP exemplifies what companies...

  • Page 18
    ...great people." Linda MacCartney Senior Implementation Consultant ADP's HR/Benefits Solution THE CLIENT Access Insurance Holdings, Inc. is a 250-employee auto insurance carrier that provides coverage to consumers in several states through independent insurance agents and brokers. THEIR NEED Create...

  • Page 19
    ... resources and employees through benefits administration that integrates seamlessly with ADP payroll. It enables clients to control benefits costs, access real-time data for HR reporting, and empowers self-service access to information online, anytime, anywhere. ADP Summary Annual Report 2007 17

  • Page 20
    ...services, to physicians' offices and other medical facilities in the Detroit, Michigan, metropolitan area. THEIR NEED Manage employment administration for a staff of fifty employees, including health benefits, 401(k), and employee relations issues, through a comprehensive solution that does not add...

  • Page 21
    ... Partner ADP TotalSource® OUR SOLUTION ADP's Professional management, HR Employer Organization - TotalSource, provides an integrated suite of HR management solutions, including benefits, payroll and payroll tax administration, risk compliance, workers' compensation, and HR support. Through...

  • Page 22
    ... so important for small business clients to use ADP for payroll that I won't take on a new client unless they do. ADP's payroll service is what a payroll service needs to be - accurate, timely, secure, efficient, and compliant." Craig Franklin, CPA San Antonio, Texas "Accountants know that the last...

  • Page 23
    OUR SOLUTION ADP's payroll and payroll tax filing services. ADP provides multiple input options, direct deposit of employee pay, paychecks, pay vouchers, and reports. Our Internet payroll service is a hosted solution that provides added value, flexibility, and convenience. ADP calculates, files, and...

  • Page 24
    ...• Customer Relationship Management (CRM) • Finance and Insurance (F&I) / Desking • Credit Check Services • Digital Contracting • Computerized Vehicle Registration manage two of their most important resources - cash and employees: • Accounts Payable / Accounts Receivable / General Ledger...

  • Page 25
    ... dealer groups. BZ Results helps dealers engage more online customers using tools such as search engine optimization, e-mail marketing, virtual test drives, Internet lead management, and automated follow-up. [See Tasca Automotive case study on page 26.] This year, our Digital Marketing new sales...

  • Page 26
    THE CLIENT The world's largest maker of premium vehicles. THEIR NEED A world-class dealer management system to help facilitate their growth in the rapidly expanding automotive market in China. 24

  • Page 27
    ... - Asia Strategy & Market Development ADP Dealer Services OUR SOLUTION ADP's Autoline® Dealer Management System (DMS). The robust Autoline DMS MINI dealer networks in China. supports sales, after-sales, and accounting processes throughout the entire BMW and ADP Summary Annual Report 2007 25

  • Page 28
    ... President BZ Results, an ADP Company THE CLIENT Tasca Automotive Group, headquartered in Cranston, Rhode Island, serves consumers with automotive sales and service for multiple brands of vehicles at three locations. THEIR NEED Increase showroom and service department traffic to create new sales...

  • Page 29
    OUR SOLUTION BZ Results, part of ADP's Digital Marketing solution. Fully utilizes the latest technology and electronic media to help dealers engage more online customers. Key features include: search engine optimization, e-mail marketing, virtual test drives, Internet lead management, and automated...

  • Page 30
    ... stock compensation expense relating to our stock option plan and employee stock purchase plan. Our Annual Report on Form 10-K, which includes Management's Discussion and Analysis, Financial Statements and related Footnotes, is available online under "Investor Relations" on ADP's Web site, www.adp...

  • Page 31
    ...Long-term marketable securities Long-term receivables, net Property, plant and equipment, net Other assets Goodwill Intangible assets, net Total assets before funds held for clients Funds held for clients Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued...

  • Page 32
    ...net loss on securities, net of tax Minimum pension liability adjustment, net of tax Comprehensive income Stock-based compensation expense Stock plans and related tax benefits Treasury stock acquired (40.2 shares) Adoption of Staff Accounting Bulletin No. 108, net of tax Brokerage Services Group spin...

  • Page 33
    ... of continuing operations, end of year $1,746.1 Our Annual Report on Form 10-K, which includes Management's Discussion and Analysis, Financial Statements and related Footnotes, is available online under "Investor Relations" on ADP's Web site, www.adp.com. ADP Summary Annual Report 2007 31

  • Page 34
    ... of Business at Columbia University Honorary Chairman Arthur F. Weinbach Chairman Gary C. Butler President and Chief Executive Officer John P. Jones (2), (3) Chairman and Chief Executive Officer, Air Products and Chemicals, Inc. Chairman, ADP Nominating/Corporate Governance Committee (1) Audit...

  • Page 35
    CORPORATE OFFICERS EXECUTIVE MANAGEMENT (Left to Right) Christopher R. Reidy James B. Benson Gary C. Butler Benito Cachinero S. Michael Martone FINANCE EXECUTIVES... Sheiness SALES EXECUTIVES (Left to Right) Kris D. Borkovich Edward B. Flynn III John J. Gleason ADP Summary Annual Report 2007 33

  • Page 36
    ...available, without charge, from ADP Investor Relations at: One ADP Boulevard, Roseland, New Jersey 07068-1728. Phone: 973.974.5858. Our Chief Executive Officer and Chief Financial Officer have furnished the Sections 302 and 906 certifications required by the SEC in our annual report on Form 10-K. In...

  • Page 37
    "As we move forward from fiscal 2007 we do so from a position of strength. We continue to invest in new products, to enhance our

  • Page 38
    service delivery processes, and to expand our distribution resources, all of which are critical to our future success." (continued from Inside Back Cover) AUTOMATIC DATA PROCESSING, INC. ONE ADP BOULEVARD ROSELAND, NJ 07068-1728 973.974.5000 WWW.ADP.COM