ADP 2008 Annual Report Download - page 34

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Statements of Consolidated Earnings
(In millions, except per share amounts)
(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and
payroll taxes, of $11,247.4, $9,082.5 and $6,977.0, respectively.
See notes to consolidated financial statements.
34
Years ended June 30, 2008 2007 2006
REVENUES:
Revenues, other than interest on funds
held for clients and PEO revenues $7,038.9 $6,267.4 $5,582.1
Interest on funds held for clients 684.5 653.6 549.8
PEO revenues (A) 1,053.1 879.0 703.7
TOTAL REVENUES 8,776.5 7,800.0 6,835.6
EXPENSES:
Costs of revenues
Operating expenses 3,915.7 3,392.3 2,970.5
Systems development and programming costs 525.9 486.1
472.3
Depreciation and amortization 238.5 208.9 160.9
TOTAL COSTS OF REVENUES 4,680.1 4,087.3
3,603.7
Selling, general and administrative expenses 2,370.4 2,206.2 1,933.7
Interest expense 80.5 94.9 72.8
TOTAL EXPENSES 7,131.0 6,388.4 5,610.2
Other income, net (166.5) (211.9) (135.8)
EARNINGS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 1,812.0 1,623.5 1,361.2
Provision for income taxes 650.3 602.3 519.3
N
ET EARNINGS FROM CONTINUING OPERATIONS 1,161.7 1,021.2 841.9
Earnings from discontinued operations, net of provision
for income taxes of $23.2, $110.6 and $274.5 for the fiscal
years ended June 30, 2008, 2007 and 2006, respectively 74.0 117.5 712.1
N
ET EARNINGS $1,235.7 $1,138.7 $1,554.0
Basic earnings per share from continuing operations $2.23 $1.86 $1.46
Basic earnings per share from discontinued operations 0.14 0.21 1.24
BASIC EARNINGS PER SHARE $2.37 $2.07 $2.70
Diluted earnings per share from continuing operations $2.20 $1.83 $1.45
Diluted earnings per share from discontinued operations 0.14 0.21 1.23
DILUTED EARNINGS PER SHARE $2.34 $2.04 $2.68
Basic weighted average shares outstanding 521.5 549.7 574.8
Diluted weighted average shares outstanding 527.2 557.9 580.3