ADP 2010 Annual Report Download - page 64

Approximately 85% of the available - for - sale securities held an AAA or AA rating at June 30, 2010, as rated by Moody ’ s, Standard &
Poor
’ s and, for Canadian securities, Dominion Bond Rating Service. All available - for - sale securities were rated as investment grade
at June 30, 2010.
The amount of collected but not yet remitted funds for the Company
’ s payroll and payroll tax filing and other services varies
significantly during the fiscal year, and averaged approximately $15,194.5 million, $15,162.4 million and $15,654.3 million in fiscal 2010,
2009 and 2008, respectively.
The unrealized losses and fair values of available
- for - sale securities that have been in an unrealized loss position for a period of less
than and greater than 12 months as of June 30, 2010 are as follows:
Expected maturities of available
- for - sale securities at June 30, 2010 are as follows:
The Company had an investment in a money market fund called the Reserve Fund. During the quarter ended September 30, 2008, the
net asset value of the Reserve Fund decreased below $1 per share as a result of the full write
- off of the Reserve Fund ’ s holdings in
debt securities issued by Lehman Brothers Holdings, Inc., which filed for bankruptcy protection on September 15, 2008. In fiscal
2009, the Company reclassified $211.1 million of its investment from cash and cash equivalents to short
- term marketable securities on
the Consolidated Balance Sheet due to the fact that these assets no longer met the definition of a cash equivalent. Additionally, the
Company reflected the impact of such reclassification on the Statements of Consolidated Cash Flows for fiscal 2009 as
reclassification from cash equivalents to short
- term marketable securities. During fiscal 2009, the Company recorded an $18.3 million
loss to other income, net, on the Statement of Consolidated Earnings to recognize its pro
- rata share of the estimated losses of the
Reserve Fund. During fiscal 2010, the Company had received distributions in excess of what was previously recognized in short
- term
marketable securities, net of previously recognized losses, in the amount of $15.2 million. As such, in fiscal 2010, the Company
recorded a gain of $15.2 million to other income, net on the Statements of Consolidated Earnings.
At September 30, 2009 and June 30, 2010, the Company concluded that it had the intent to sell certain securities for which unrealized
losses of $5.3 million and $9.1 million, respectively, were previously recorded in accumulated other comprehensive income on the
Consolidated Balance Sheets. As such, the Company realized impairment losses of $14.4 million in other income, net on the
Statements of Consolidated Earnings in fiscal 2010.
49
Unrealized
Unrealized
losses
Fair market
losses
Fair market
Total gross
less than
value less than
greater than
value greater
unrealized
Total fair
12 months
12 months
12 months
than 12 months
losses
market value
U.S. Treasury and direct obligations of
U.S. government agencies
$
-
$
28.0
$
(0.2
)
$
6.5
$
(0.2
)
$
34.5
Corporate bonds
(9.0
)
210.5
-
-
(9.0
)
210.5
Asset backed securities
-
2.4
-
-
-
2.4
Other securities
(1.0
)
22.7
-
-
(1.0
)
22.7
$
(10.0
)
$
263.6
$
(0.2
)
$
6.5
$
(10.2
)
$
270.1
Maturity Dates:
Due in one year or less
$
2,796.6
Due after one year up to two years
3,268.0
Due after two years up to three years
3,346.7
Due after three years up to four years
1,795.9
Due after four years
4,309.8
Total available - for - sale securities
$
15,517.0