ADP 2010 Annual Report Download - page 16

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 over 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, truck, motorcycle, marine, recreational vehicle (“
RV ” ) and heavy
machinery dealers in North America, Europe, South Africa and the Asia Pacific region. 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
- based outsourcing solutions, that assist employers in the United States, Canada, Europe,
South America (primarily Brazil), Australia and Asia to staff, manage, pay and retain their employees. As of June 30, 2010, Employer
Services assisted approximately 520,000 employers with approximately 614,000 payrolls. From time to time, we reevaluate our
employer count based upon updated information that helps us associate individual employer accounts with one another. As such,
on a comparable basis, as of June 30, 2009, Employer Services assisted approximately 520,000 employers with approximately 619,000
payrolls. 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 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 5,600 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, truck, motorcycle, marine, RV and heavy machinery retailers in North America,
Europe, South Africa and the Asia Pacific region. Approximately 25,000 automotive, 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. From time to time, we reevaluate our client count based upon updated information that
helps us associate individual client accounts with one another. As such, on a comparable basis, as of June 30, 2009, Dealer Services
provided DMS products to 26,000 retailers in over 90 countries.
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