ADP 2011 Annual Report Download - page 3

Part I
Item 1. Business
General
Incorporated in Delaware in 1961, Automatic Data Processing, Inc. (together with its subsidiaries, “ADP” or the “Company”
) 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 auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout
the world. ADP
’ s mission is to power organizations with insightful solutions that drive business success.
The Company ’ s Annual Reports on Form 10 - K, Quarterly Reports on Form 10 - Q, Current Reports on Form 8 - K, all
amendments to those reports, and the Proxy Statement for its Annual Meeting of Stockholders are made available, free of charge,
on its website at www.adp.com as soon as reasonably practicable after such reports have been filed with or furnished to the
Securities and Exchange Commission.
Segments of Business
The Company
’ s reportable segments are: Employer Services, Professional Employer Organization (PEO) Services, and Dealer
Services. For financial information by segment and by geographic area, see Note 18 of the “Notes to Consolidated Financial
Statements” contained in this Annual Report on Form 10 - K. A brief description of each reportable segment ’ s operations is provided
below.
Employer Services
Employer Services offers a comprehensive range of HR information, payroll processing, time and labor management, and 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, 2011, Employer Services assisted approximately 537,000 employers with approximately 628,000 payrolls.
Employer Services markets these solutions and services through its direct marketing salesforce and, on a limited basis, through
indirect sales channels, such as marketing relationships with banks and accountants, among others. In fiscal 2011, 80% of Employer
Services
’ revenues were from the United States, 13% were from Europe, 5% were from Canada and 2% were from South America
(primarily Brazil), Australia and Asia.
United States
Employer Services
’ approach to the market is to match clients ’ needs to the solutions and services that will best meet their
expectations. To facilitate this approach, in the United States, Employer Services is comprised of the following market
- facing groups:
Small Business Services (SBS) (serving primarily organizations with fewer than 50 employees); Major Account Services (serving
primarily organizations with between 50 and 999 employees); and National Account Services (serving primarily organizations with
1,000 or more employees). In addition, the Added Value Services division of Employer Services provides services to clients across all
three of these groups.
ADP provides payroll services that include the preparation of client employee paychecks, electronic direct deposits and stored
value payroll cards, along with employee pay statements, supporting journals, summaries and management reports. ADP also
supplies the quarterly and annual social security, medicare and federal, state and local income tax withholding reports required to be
filed by employers. ADP enables its largest clients to interface their major enterprise resource planning (ERP) applications with
ADP
’ s outsourced payroll services. For those companies that choose to process payroll in - house, ADP delivers stand - alone
services such as payroll tax filing, check printing and distribution, year
- end tax statements (i.e., Form W - 2), wage garnishment
services, Retirement Services, Talent Solutions, Benefit Services, and Time and Labor Management Services. In fiscal 2011, ADP also
launched its ADP Mobile Solutions application, which gives our clients ’ employees access to their vital HR, payroll, and benefits
information via multiple smartphone platforms.
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