ADP 2009 Annual Report Download - page 13

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
FORWARD-LOOKING STATEMENTS
This report and other written or oral statements made from time to time by ADP may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature, and which may be identified by
the use of words like “expects,” “assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could be” and other words of similar
meaning, are forward-looking statements. These statements are based on management’ s expectations and assumptions and are subject to risks
and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ
materially from those contemplated by the forward-looking statements include: ADP’ s success in obtaining, retaining and selling additional
services to clients; the pricing of services and products; changes in laws regulating payroll taxes, professional employer organizations and
employee benefits; overall market and economic conditions, including interest rate and foreign currency trends; competitive conditions; auto
sales and related industry changes; employment and wage levels; changes in technology; availability of skilled technical associates and the
impact of new acquisitions and divestitures. ADP disclaims any obligation to update any forward-looking statements, whether as a result of
new information, future events or otherwise. These risks and uncertainties, along with the risk factors discussed above under “Item 1A.-Risk
Factors,” should be considered in evaluating any forward-looking statements contained herein.
DESCRIPTION OF THE COMPANY AND BUSINESS SEGMENTS
ADP is one of the world’ s largest providers of business outsourcing solutions. Leveraging 60 years of experience, ADP offers a wide range
of human resource (“HR”), payroll, tax and benefits administration solutions from a single source. ADP is also a leading provider of integrated
computing solutions to automotive, heavy truck, motorcycle, marine, recreational vehicle (“RV”) and heavy machinery dealers throughout the
world. The Company’ s reportable segments are: Employer Services, PEO Services and Dealer Services. A brief description of each segment’ s
operations is provided below.
Employer Services
Employer Services offers a comprehensive range of HR information, payroll processing, tax and benefits administration solutions and
services, including traditional and Web-
b
ased outsourcing solutions, that assist approximately 540,000 employers in the United States, Canada,
Europe, South America (primarily Brazil), Australia and Asia to staff, manage, pay and retain their employees. Employer Services categorizes
its services as payroll and payroll tax, and “beyond payroll.” The payroll and payroll tax business represents the Company’ s core payroll
processing and payroll tax filing business. The “beyond payroll” business represents the services that extend beyond the payroll and payroll tax
filing services, such as time and labor management, benefits administration, retirement recordkeeping and administration, and HR
administration services. Within Employer Services, the Company collects client funds and remits such funds to tax authorities for payroll tax
filing and payment services, and to employees of payroll services clients.
PEO Services
PEO Services provides approximately 5,300 small and medium sized businesses with comprehensive employment administration
outsourcing solutions through a co-employment relationship, including payroll, payroll tax filing, HR guidance, 401(k) plan administration,
benefits administration, compliance services, health and workers’ compensation coverage and other supplemental benefits for employees.
Dealer Services
Dealer Services provides integrated dealer management systems (such a system is also known in the industry as a “DMS”) and other
business management solutions to automotive, heavy truck, motorcycle, marine, RV and heavy machinery retailers in North America, Europe,
South Africa and the Asia Pacific region. Approximately 27,000 automotive, heavy truck, motorcycle, marine, RV and heavy machinery
retailers in over 90 countries use our DMS products, other software applications, networking solutions, data integration, consulting and/or
digital marketing services.
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