ADP 2008 Annual Report Download - page 68

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NOTE 18. FINANCIAL DATA BY SEGMENT AND GEOGRAPHIC AREA
Based upon similar economic characteristics and operational characteristics, the Company’ s strategic business units have been aggregated into
the following three reportable segments: Employer Services, PEO Services and Dealer Services. The primary components of “Other” are
miscellaneous processing services, and corporate allocations and expenses, including stock-based compensation expense. Certain revenues and
expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management
responsibility. The fiscal 2007 and 2006 reportable segments’ revenues and earnings from continuing operations before income taxes have been
adjusted to reflect updated fiscal 2008 budgeted foreign exchange rates. In addition, there is a reconciling item for the difference between
actual interest income earned on invested funds held for clients and interest credited to Employer Services and PEO Services at a standard rate
of 4.5%. The reportable segments’ results also include an internal cost of capital charge related to the funding of acquisitions and other
investments. All of these adjustments/charges are reconciling items to our reportable segments’ revenues and/or earnings from continuing
operations before income taxes and results in the elimination of these adjustments/charges in consolidation. Reportable segments’ assets
include funds held for clients, but exclude corporate cash, corporate marketable securities and goodwill.
(a) Includes $80.6 million, $79.9 million and $85.1 million of depreciation and amortization that does not relate to our services and products.
68
Reconciling Items
Client Cost of
Employer PEO Dealer
Foreign Fund Capital
Services Services
Services Other Exchange Interest Charge Total
Year ended June 30, 2008
Revenues from continuing operations $ 6,243.1 $1,060.5 $1,364.3 $ 4.9 $ 118.7 $ (15.0) $-
$ 8,776.5
Earnings from continuing
operations before income taxes 1,601.4 104.9 232.0 (238.9) 15.9 (15.1) 111.8 1,812.0
Assets from continuing operations 18,197.8 45.3 658.2 4,833.1 - - -
23,734.4
Capital expenditures
for continuing operations 87.4 1.0 38.1 59.9 - - - 186.4
Depreciation and amortization 251.0 1.5 86.8 91.6 - - (111.8) 319.1(a)
Year ended June 30, 2007
Revenues from continuing operations $ 5,707.7 $ 884.8 $1,257.3 $ (1.5) $ (45.4) $ (2.9) $-
$ 7,800.0
Earnings from continuing
operations before income taxes 1,412.4 80.4 204.4 (177.0) (7.1) (2.9) 113.3 1,623.5
Assets from continuing operations 20,406.4 115.5 619.4 5,449.9 - - -
26,591.2
Capital expenditures
for continuing operations 79.0 1.6 36.1 53.0 - - - 169.7
Depreciation and amortization 246.7 1.6 81.7 72.1 - - (113.3) 288.8(a)
Year ended June 30, 2006
Revenues from continuing operations $ 5,162.6 $ 703.7 $1,097.7 $ 36.9 $(108.5) $ (56.8) $-
$ 6,835.6
Earnings from continuing
operations before income taxes 1,259.3 54.9 159.7 (143.9)(12.1) (56.8) 100.1 1,361.2
Assets from continuing operations 19,067.5 (8.2) 609.4 5,612.7 - - - 25,281.4
Capital expenditures
for continuing operations 87.4 0.7 45.1 119.6 - - - 252.8
Depreciation and amortization 251.8 1.7 73.0 19.6 - - (100.1) 246.0(a)