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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 retailers and manufacturers 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 (“SEC”) and
are also available at the SEC’s internet site at www.sec.gov.
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 17 to the “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 recruit, staff, manage, pay and retain their employees. As of June 30,
2012, Employer Services assisted approximately 564,000 employers with approximately 652,000 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 2012, 78% of Employer Services’
revenues were from the United States, 14%
were from Europe, 5% were from Canada, and 3% 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).
3