ADP 2010 Annual Report Download - page 86

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 the “Other” segment are miscellaneous processing services, such as customer financing transactions, non - recurring
gains and losses and certain expenses that have not been charged to the reportable segments, such as 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 2009 and 2008 reportable segments
’ revenues and earnings from
continuing operations before income taxes have been adjusted to reflect updated fiscal 2010 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.
67
Reconciling Items
Client
Cost of
Employer
PEO
Dealer
Foreign
Fund
Capital
Services
Services
Services
Other
Exchange
Interest
Charge
Total
Year ended June 30, 2010
Revenues from continuing operations
$
6,442.6
$
1,316.8
$
1,229.4
$
16.4
$
59.2
$
(136.7
)
$
-
$
8,927.7
Earnings from continuing
operations before income taxes
1,722.4
126.6
201.0
(167.8
)
10.3
(136.7
)
107.4
1,863.2
Assets from continuing operations
20,560.5
160.8
517.7
5,623.2
-
-
-
26,862.2
Capital expenditures
for continuing operations
42.5
0.3
24.0
23.4
-
-
-
90.2
Depreciation and amortization
217.7
1.3
82.4
115.2
-
-
(107.4
)
309.2
(a)
Year ended June 30, 2009
Revenues from continuing operations
$
6,438.9
$
1,185.8
$
1,267.9
$
19.4
$
(7.3
)
$
(66.3
)
$
-
$
8,838.4
Earnings from continuing
operations before income taxes
1,758.7
117.6
214.3
(233.5
)
2.5
(66.3
)
106.8
1,900.1
Assets from continuing operations
18,318.2
104.0
591.4
6,338.1
-
-
-
25,351.7
Capital expenditures
for continuing operations
47.4
0.2
27.0
93.0
-
-
-
167.6
Depreciation and amortization
213.9
1.3
82.5
116.8
-
-
(106.8
)
307.7
(a)
Year ended June 30, 2008
Revenues from continuing operations
$
6,227.8
$
1,060.5
$
1,301.8
$
4.9
$
153.8
$
(15.1
)
$
-
$
8,733.7
Earnings from continuing
operations before income taxes
1,606.7
102.0
220.1
(245.4
)
25.7
(15.1
)
109.4
1,803.4
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
38.0
59.9
-
-
-
186.3
Depreciation and amortization
251.0
1.5
86.8
88.4
-
-
(109.4
)
318.3
(a)
(a)
Includes $70.6 million, $70.3 million and $80.6 million for the years ended June 30, 2010, 2009 and 2008, respectively, of depreciation and amortization that does not
relate to our services and products.