ADP 2012 Annual Report Download - page 37

Capital expenditures for continuing operations in fiscal 2012 were $146.2 million, as compared to $184.8 million in fiscal 2011 and $90.2
million in fiscal 2010. The capital expenditures in fiscal 2012 related to our data center and other facility improvements were made to support
our operations. We expect capital expenditures in fiscal 2013 to be between $160 million and $180 million.
The following table provides a summary of our contractual obligations as of June 30, 2012:
In addition to the obligations quantified in the table above, we had obligations for the remittance of funds relating to our payroll and payroll tax
filing services. As of June 30, 2012, the obligations relating to these matters, which are expected to be paid in fiscal 2013, total $20,856.2
million and were recorded in client funds obligations on our Consolidated Balance Sheets. We had $21,539.1 million of cash and marketable
securities that have been impounded from our clients to satisfy such obligations recorded in funds held for clients on our Consolidated Balance
Sheets as of June 30, 2012.
35
(In millions)
Payments due by period
Less than
1-3 3-5
More than
Contractual Obligations 1 year years years 5 years
Unknown
Total
Debt Obligations (1)
$
17.5
$
4.6
$
5.1
$
7.8
$
-
$
35.0
Operating Lease and Software
License Obligations (2) $
173.7
$
217.9
$
70.4
$
26.6
$ - $
488.6
Purchase Obligations (3) $
350.5
$
264.0
$
183.4
$ - $ - $
797.9
Obligations related to Unrecognized $
7.0
$ - $ - $ - $
77.7
$
84.7
Tax Benefits (4)
Other long-term liabilities reflected
on our Consolidated Balance Sheets:
Compensation and Benefits (5) $
78.7
$
153.1
$
94.1
$
216.2
$
33.6
$
575.7
Acquisition-related obligations (6) $
14.8
$
13.5
$ - $ - $ - $
28.3
Total $
642.2
$
653.1
$
353.0
$
250.6
$
111.3
$
2,010.2
(1)
These amounts represent the principal repayments of our debt and are included on our Consolidated Balance Sheets. The estimated interest payments due by corresponding
period above are $0.8 million, $1.5 million, $1.3 million, and $0.3 million, respectively, which have been excluded.
(2)
Included in these amounts are various facilities and equipment leases and software license agreements. We enter into operating leases in the normal course of business relating to
facilities and equipment, as well as the licensing of software. The majority of our lease agreements have fixed payment terms based on the passage of time. Certain facility and
equipment leases require payment of maintenance and real estate taxes and contain escalation provisions based on future adjustments in price indices. Our future operating lease
obligations could change if we exit certain contracts or if we enter into additional operating lease agreements.
(3)
Purchase obligations primarily relate to purchase and maintenance agreements on our software, equipment and other assets.
(4)
We made the determination that net cash payments expected to be paid within the next 12 months, related to unrecognized tax benefits of $84.7 million at June 30, 2012, are
expected to be up to $7 million. We are unable to make reasonably reliable estimates as to the period beyond the next 12 months in which cash payments related to unrecognized
tax benefits are expected to be paid.
(5)
Compensation and benefits primarily relates to amounts associated with our employee benefit plans and other compensation arrangements.
(6)
Acquisition-related obligations relate to contingent consideration for business acquisitions for which the amount of contingent consideration was determinable at the date of
acquisition and therefore included on the Consolidated Balance Sheets as a liability.