fy12june11k.htm
 
 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004

FORM 11-K



  X   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2011


OR

____TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934


For the transition period from ______ to ______.


Commission file number(s):  333-110395, 333-75468, 333-90540 and 333-146565


AUTOMATIC DATA PROCESSING, INC.
   RETIREMENT AND SAVINGS PLAN   
(Full title of the plan and the address of the plan, if
different from that of the issuer named below)


Automatic Data Processing, Inc.
One ADP Boulevard, Roseland, New Jersey 07068
(Name of issuer of the securities held pursuant to
the plan and the address of its principal
executive office)





Notices and communications from the Securities and Exchange Commission
Relative to this report should be forwarded to:

Michael A. Bonarti
Corporate Vice President, General Counsel and Secretary
Automatic Data Processing, Inc.
One ADP Boulevard
Roseland, New Jersey 07068

 
 

 


AUTOMATIC DATA PROCESSING, INC.
RETIREMENT AND SAVINGS PLAN
 
 
 
TABLE OF CONTENTS
 
   Page
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM           1             
   
 FINANCIAL STATEMENTS
 
 
      Statements of Net Assets Available for Benefits as of December 31, 2011 and 2010 
 
 2
      Statement of Changes in Net Assets Available for Benefits For the Year Ended December 31, 2011
 
 3
      Notes to Financial Statements as of December 31, 2011 and 2010 and for the Year Ended December 31, 2011 
 
 4-9
 SUPPLEMENTAL SCHEDULES:
 
 
      Form 5500, Schedule H, Part IV, Line 4a—Schedule of Delinquent Participant Contributions   
         Year Ended December 31, 2011
 
 10
      Form 5500, Schedule H, Part IV, Line 4i—Schedule of Assets (Held at End of Year)
         As of December 31, 2011
 
 11-29
 SIGNATURE
 
 30
 Exhibit 23                      Consent of J.H. Cohn LLP  31
 
 
 
All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.
 

 
 

 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees and Participants of
Automatic Data Processing, Inc.
Retirement and Savings Plan


We have audited the accompanying statements of net assets available for benefits of Automatic Data Processing, Inc. Retirement and Savings Plan (the "Plan") as of December 31, 2011 and 2010, and the related statement of changes in net assets available for benefits for the year ended December 31, 2011. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Automatic Data Processing, Inc. Retirement and Savings Plan as of December 31, 2011 and 2010, and the changes in its net assets available for benefits for the year ended December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets (held at end of year) and delinquent participant contributions are presented for the purpose of additional analysis and are not a required part of the 2011 basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan's management. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the 2011 basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the 2011 basic financial statements taken as a whole.


/s/ J. H. Cohn LLP

Roseland, New Jersey
June 25, 2012

 

 

AUTOMATIC DATA PROCESSING, INC.
RETIREMENT AND SAVINGS PLAN
 
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2011 AND 2010

 
   
2011
   
2010
 
ASSETS
           
             
CASH
  $ 3,542     $ 6,637  
                 
INVESTMENTS (Notes 3 and 4):
               
Participant directed investments, at fair value
    2,370,743,679       2,221,927,563  
                 
RECEIVABLES:
               
Notes receivable from participants
    71,963,055       66,837,683  
Interest and dividends receivable
    4,332,331       4,221,269  
Broker receivable for securities sold
    9,202,300       326,903  
Participant contribution receivable
    197,803       11,347  
Employer contribution receivable
    208,648       5,713  
Trust to trust transfer in receivable
    9,183,495       -  
                 
TOTAL RECEIVABLES
    95,087,632       71,402,915  
                 
TOTAL ASSETS
    2,465,834,853       2,293,337,115  
                 
LIABILITIES
               
                 
Broker payable for securities purchased
    36,688,805       2,150,921  
Accrued expenses
    1,221,164       957,108  
                 
TOTAL LIABILITIES
    37,909,969       3,108,029  
 
               
NET ASSETS AVAILABLE FOR BENEFITS
  $ 2,427,924,884     $ 2,290,229,086  
                 
See notes to financial statements.
               

 
 

2
 

AUTOMATIC DATA PROCESSING, INC.
RETIREMENT AND SAVINGS PLAN
 
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2011

 
Contributions:
 
 
 
     Participant
  $ 173,904,839   
     Employer
    65,887,350  
          Total contributions
    239,792,189  
         
  Investment income:
       
  Net depreciation in fair value of investments (Note 3)
    (15,153,058 )
  Dividend income
    26,770,109  
  Interest income
    3,027,239  
          Total investment income
    14,644,290  
         
  Interest income on notes receivable from participants
    3,211,118  
         
  Benefits paid to participants
    (127,238,955 )
         
  Administrative and general expenses
    (6,285,221 )
         
NET INCREASE IN NET ASSETS BEFORE TRANSFERS
    124,123,421  
         
TRUST TO TRUST TRANSFERS IN
    13,572,377  
         
NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS
    137,695,798  
         
NET ASSETS AVAILABLE FOR BENEFITS:
       
Beginning of year
    2,290,229,086  
         
End of year
  $ 2,427,924,884  
         
 
See notes to financial statements.

 
 
 

3
 

 
 
AUTOMATIC DATA PROCESSING, INC.
 
RETIREMENT AND SAVINGS PLAN
 
NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 2011 AND 2010
AND FOR THE YEAR ENDED DECEMBER 31, 2011
 

1.
DESCRIPTION OF PLAN
 
The following description of the Automatic Data Processing, Inc. Retirement and Savings Plan (the “Plan”) is provided for general information purposes only.  Participants should refer to the Plan document for a more complete description of the Plan’s provisions.
 
The Plan is administered by a three-member committee (the “Plan Administrator”) appointed by the Board of Directors of Automatic Data Processing, Inc. (“ADP”, the “Company” or the “Plan Sponsor”).  JPMorgan Chase Bank, N.A. (“JPMorgan”) serves as custodian of the Plan.
 
GeneralThe Plan is a defined contribution plan established January 1, 1984 available to all eligible employees of the Company.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
 
Contributions
 
 
Participant Contributions—As defined in the Plan document, participating employees who are deemed non-highly compensated (employees earning less than $110,000 in 2010), can contribute up to 35% of their compensation, subject to the maximum deferral limits under the Internal Revenue Code (“IRC”) (and certain special limits for Puerto Rico residents participating in the Plan).  Participating employees earning more than these amounts (“Highly Compensated Employees”) can only contribute up to the amount determined by the Plan Administrator annually (currently 10% of their compensation).  Participants who have attained age 50 before the close of the Plan year are eligible to make additional contributions (“Catch-Up Contributions”) up to the amount of $5,500 for 2011.  Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans (“rollover contributions”).  Unless employees elect otherwise, they shall be automatically enrolled as participants in the Plan after sixty days of employment at a deferral rate of 3% of compensation.  These contributions will be invested in the JPMorgan SmartRetirement Fund that corresponds to their estimated retirement date.  Participant contributions during the year ended December 31, 2011 include $8,386,369 of rollover contributions.
 
 
Matching Employer Contributions—The Company contributes an amount equal to 50% of the first 6% of each participant’s salary deferral election to the Plan. Once a participant has contributed to the Plan for 60 months, the Company’s matching contribution increases to an amount equal to 70% of the first 6% of a participant’s salary deferral election.  Participants must be actively employed on December 31 of a given year to receive the matching contribution for that year.  Matching contributions are not made on the employee catch-up contributions.
 
 
Limitations—In addition, there are contribution limitations set forth in the IRC, which the Plan must satisfy.
 
Participant Accounts—Individual accounts are maintained for each Plan participant.  Each participant’s account is credited with the participant’s contribution, an allocation of the Company’s contribution, and an allocation of Plan gains or losses.  Account balances are valued at fair market value, and are adjusted daily to reflect the net investment income of Plan investments.  The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
 

 
 

4
 

Investments —Investments in the Plan consist of various investments which include the ADP Stock Fund, separately managed accounts, commingled trusts, mutual funds, and money market funds.
 
The Seix Intermediate Bond Fund, the Columbia Dividend Value Fund, the Montag & Caldwell Large Cap Growth Fund and the American Century Small Cap Value Fund are separately managed accounts, with underlying investments that include investments in publicly traded common stock, government bonds, corporate bonds and various other bond issues.  The Northern Trust S&P 500 Index Fund, the UBS S&P 500 Index Fund, the BlackRock Russell 2000 Growth Fund, the JPMorgan SmartRetirement Income Fund, the JPMorgan SmartRetirement 2010 Fund, the JPMorgan SmartRetirement 2015 Fund, the JPMorgan SmartRetirement 2020 Fund, the JPMorgan SmartRetirement 2030 Fund and the JPMorgan SmartRetirement 2040 Fund are commingled trusts.  The Goldman Sachs Financial Square Government Fund and the Western Asset Institutional Government Reserves Fund are money market funds.  The Artio International Equity - Institutional Fund is a mutual fund.
 
Participants direct the investment of their contributions and matching employer contributions into the 15 various investment options offered by the Plan.  Matching contributions are deposited into participants’ accounts each pay period and are made pursuant to their individual investment election on file at that time.
 
VestingParticipants are immediately vested in their contributions, including salary deferral and rollover contributions.  Matching Company contributions are vested as follows:
 
Less than two years of service from date of hire                                                                                      0%
 
         Two but less than three years of service from date of hire                                                                    50%
 
Three or more years of service from date of hire                                                                                     100%
 
Payment of BenefitsIn general, employee and employer contributions must remain in the Plan until the later of the attainment of age 65 or the end of employment.  The employee may elect to begin taking in-service distributions anytime after the attainment of age 70.
 
On termination of service, a participant can receive a lump-sum amount equal to the value of the vested portion of his or her account.  Alternatively, he or she can elect to defer payment if the total of the participant’s vested account balance is more than $1,000.  The balance in the participant’s ADP Stock Fund account can be distributed as whole shares of Company common stock (“Company Stock”) or as cash equivalent to the fair market value of the Company Stock at the date of distribution.  The Plan was amended to reflect certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001.  Pursuant to this amendment, if the total of the participant’s vested account balance is more than $1,000 but less than or equal to $5,000 on termination of service, and the participant has not elected to receive a lump-sum amount, ADP will automatically roll over the vested account balance to an individual retirement account (“IRA”) established with The Bancorp Bank.  Fees and expenses for the IRA will be charged against a participant’s account unless he or she contacts the IRA provider and requests to make payment of the fees out-of-pocket. 
 
Trust to Trust Transfers In – Effective January 19, 2011, the Consultants in Data Processing, Inc. 401(k) Profit Sharing Plan merged into the Plan in connection with the acquisition of Consultants in Data Processing, Inc. by the Company during the year ended December 31, 2011.  Transfers of $1,072,961 are included in Trust to Trust Transfers In in the accompanying Statement of Changes in Net Assets Available for Benefits.
 
Effective May 31, 2011, the AdvancedMD Software, Inc. 401(k) Plan merged into the Plan in connection with the acquisition of AdvancedMD Software, Inc. by the Company during the year ended December 31, 2011.  Transfers of $3,315,921 are included in Trust to Trust Transfers In in the accompanying Statement of Changes in Net Assets Available for Benefits.
 
Effective December 30, 2011, The RightThing, LLC 401(k) Plan merged into the Plan in connection with the acquisition of The RightThing, LLC by the Company during the year ended December 31, 2011.  Transfers of $9,183,495 are included in Trust to Trust Transfers In in the accompanying Statement of Changes in Net Assets Available for Benefits and in Trust to trust transfer in receivable in the accompanying Statement of Net Assets Available for Benefits as of December 31, 2011.  The transfer of plan assets was completed on January 4, 2012.
 
ForfeituresUpon termination of a participant’s employment for reasons other than death before the attainment of age 65, the participant will be entitled to receive the vested portion of their account balance.  The nonvested portion of the participant’s account balance will be forfeited, and will be used to pay Plan expenses as well as to reduce the amount of future Company contributions pursuant to the Plan document.  The amount of unused forfeitures as of December 31, 2011 and 2010 amounted to $1,650,758 and $1,648,590, respectively.  For the year ended December 31, 2011, amounts used to pay administrative expenses amounted to $795,714, and the amount used to reduce employer contributions was $2,825,449.
 
Notes Receivable from ParticipantsPlan participants may borrow funds from their account up to a maximum of $50,000 or 50% of their account balances, whichever is less, subject to certain limits and conditions.  Outstanding loans are secured by the participant’s interest in the Plan and bear interest at rates ranging from 4.25% to 10.5%, which are commensurate with local prevailing rates at the time funds are borrowed, as determined by the Plan Administrator.  Loans are generally repaid through payroll deductions or, at the option of the participant, may be prepaid in total. Participants’ loan repayments and any interest due are paid into the participants’ account.
 
Employee Stock Ownership Plan ComponentThe Plan was amended effective January 1, 2002, to designate a portion of the Plan as an employee stock ownership plan (“ESOP Component” or “ESOP”) which was designed to comply with IRC Section 4975 (e) (7) and the regulations thereunder, and Section 407(d) (6) of ERISA.  The ESOP is defined as the portion of the Plan derived from (a) account balances invested in Company Stock and (b) all contributions made to the Plan after December 31, 2001 as further defined in the Plan amendment.  The principal purpose of the ESOP Component is to provide participants an ownership interest in the Company.  The following includes main highlights of the ESOP Component.  Participants should refer to the Plan document for more information.
 
Investments in Company Stock – The ESOP Component will be invested primarily in Company Stock.  Purchases of Company Stock may be made in the open market or, to the extent permitted by law, directly from the Company or shareholders of the Company.  All purchases of Company Stock shall be made at prices that do not exceed the fair market value of such Company Stock, as determined by the Plan custodian at the time of purchase.

Dividends on Company Stock – Dividends paid by the Company with respect to shares of Company Stock held by the ESOP Component shall either be paid in cash directly to the participants, or pursuant to the participant’s election, dividends can be reinvested in the ESOP Component.  All cash dividends are paid out on a quarterly basis.  If an election is made by a participant to receive a distribution in cash of dividends paid on Company Stock, then such dividends shall be held in a money market fund pending distribution.

Vesting A participant will be 100% vested in their salary deferral and rollover contribution accounts and in any dividends paid on or after April 1, 2002 on Company Stock held in accounts.

Payment of Benefits – Payments to participants from the ESOP Component will be made in accordance with provisions as stated in the Plan document and amendments thereto regarding the payment of benefits from the Plan.
 
 
 
 
 
 

5
 

 
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
The following are the significant accounting policies followed by the Plan:
 
Basis of AccountingThe accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.
 
Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Plan management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities.  Actual results could differ from those estimates.
 
Risk and UncertaintiesThe Plan utilizes various investment instruments including U.S. Government agency securities, debt securities of companies with strong credit ratings from a variety of industries, and in various equity securities, including Company Stock.  Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market volatility.  Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.
 
Income RecognitionPurchases and sales of securities are recorded on a trade-date basis.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.
 
For mutual fund and money market fund investments, including the Columbia Dividend Value Fund, Artio International Equity Fund – Institutional Fund, Goldman Sachs Financial Square Government Fund and Western Asset Institutional Government Reserves Fund, management fees and operating expenses are reflected in the net asset value of the funds on a daily basis and are not reflected separately.  Management fees for the separately managed accounts and comingled trusts are accrued on a daily basis, reflected in the daily unitized price, and paid on a quarterly basis.  Consequently, management fees are reflected as a reduction of investment return for such investments.
 
Fair Value of InvestmentsSee Note 4 - “Fair Value Measurements.”
 
Fair Value of Other Financial InstrumentsThe carrying amount of receivables and liabilities approximates fair value.
 
Notes Receivable from ParticipantsNotes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest.  Delinquent participant loans are reclassified as distributions based upon the terms of the Plan document.
 
Payment of BenefitsBenefits payments to participants are recorded upon distribution.  At December 31, 2011 and 2010, amounts allocated to accounts of individuals who had elected to withdraw but had not yet been paid totaled $391,579 and $273,899, respectively.
 
Recently Issued Accounting Pronouncements In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2011-04, “Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRSs.”  ASU 2011-04 requires expansion of the disclosures required for Level 3 measurements of fair value and provides updates to the existing measurement guidance.  ASU 2011-04 is effective for annual periods beginning after December 15, 2011.  Plan management does not expect the adoption of ASU 2011-4 to have a material impact on the Plan’s financial statements.

In January 2010, the Financial Accounting Standards Board issued ASU 2010-6, “Improving Disclosures about Fair Value Investments.”  ASU 2010-6 amended the disclosure requirements in Accounting Standards Codification (“ASC”) 820.10 “Fair Value Measurements and Disclosures,” and required new disclosures regarding transfers in and out of Level 1 and Level 2 asset categories as well as more detailed information for the Level 3 reconciliation of activity, if required.  ASU 2010-6 also clarified existing disclosure requirements regarding the level of disaggregation expected, valuation techniques and inputs to fair value measurements.  The adoption of this guidance for the Plan year ended December 31, 2010 did not have a material impact on the Plan's financial statements.  See Note 4 - “Fair Value Measurements.”
 
In September 2010, the Financial Accounting Standards Board issued ASU 2010-25, “Reporting Loans to Participants by Defined Contribution Pension Plans.”  This guidance clarified the classification and measurement of participant loans by defined contribution pension plans.  Participant loans are required to be classified as notes receivable from participants (rather than investments) and must be measured at their unpaid principal balance plus accrued but unpaid interest.  The adoption of this guidance for the Plan year ended December 31, 2010 did not have a material impact on the Plan's financial statements.
 

   

 
 

6
 


 
 
3.      INVESTMENTS
 
The investments of the Plan as of December 31, 2011 and 2010 are summarized as follows:
 
 
 
 
Investments, at fair value:
 
2011
   
2010
 
             
    ADP Common Stock, 5,556,245 shares and 5,403,929 shares, respectively
  $ 302,666,515 *   $ 253,058,319  
    Seix Intermediate Bond Fund
    294,808,499       238,379,734  
    Goldman Sachs Financial Square Government Fund
    225,441,863 *     -  
    Columbia Dividend Value Fund
    206,174,817       183,186,521  
    Northern Trust S&P 500 Index Fund
    203,503,309 *     -  
    Artio International Equity Fund - Institutional Fund
    198,098,924 *     258,702,101  
    BlackRock Russell 2000 Growth Fund
    184,330,835 *     175,423,277  
    Montag & Caldwell Large Cap Growth Fund
    149,261,033       141,620,168  
    JPMorgan SmartRetirement 2020 Fund
    140,973,090 *     132,637,228  
    JPMorgan SmartRetirement 2030 Fund
    126,728,372 *     112,292,164  
    American Century Small Cap Value Fund
    122,329,195       126,466,222  
    JPMorgan SmartRetirement 2040 Fund
    91,288,563       77,325,268  
    JPMorgan SmartRetirement 2015 Fund
    62,431,611       60,524,198  
    JPMorgan SmartRetirement 2010 Fund
    30,484,964       29,146,496  
    JPMorgan SmartRetirement Income Fund
    32,222,089       26,453,188  
    Western Asset Institutional Government Reserves Fund
    -       212,068,291  
    UBS S&P 500 Index Fund
    -       194,005,925  
    Fidelity Managed Income Portfolio
    -       635,897  
    Broadridge Company Stock, 0 shares and 117 shares, respectively
    -       2,566  
Total Investments
  $ 2,370,743,679     $ 2,221,927,563  
                 
 
* Investments held that represent 5% or more of the Plan’s net assets available for benefits at the end of each of the respective years. For separately managed accounts (Seix Intermediate Bond Fund, Columbia Dividend Value Fund, Montag & Caldwell Large Cap Growth Fund and American Century Small Cap Value Fund), underlying investments are used to make such determination.
 
 
During the year ended December 31, 2011, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows:
 
    Artio International Equity Fund - Institutional Fund
  $ (62,852,443 )
    American Century Small Cap Value Fund
    (10,357,006 )
    BlackRock Russell 2000 Growth Fund
    (6,225,898 )
    JPMorgan SmartRetirement 2040 Fund
    (3,867,898 )
    JPMorgan SmartRetirement 2030 Fund
    (3,794,517 )
    Northern Trust S&P 500 Index Fund
    (3,088,301 )
    ADP Stock Fund
    42,834,367  
    Seix Intermediate Bond Fund
    10,452,607  
    Columbia Dividend Value Fund
    7,962,479  
    UBS S&P 500 Index Fund
    7,476,088  
    Montag & Caldwell Large Cap Growth Fund
    3,751,496  
    JPMorgan SmartRetirement 2015 Fund
    966,932  
    JPMorgan SmartRetirement 2010 Fund
    767,277  
    JPMorgan SmartRetirement Income Fund
    626,525  
    JPMorgan SmartRetirement 2020 Fund
    195,048  
    Western Asset Institutional Government Reserves Fund
    11  
    Fidelity Managed Income Portfolio
    197  
    Goldman Sachs Financial Square Government Fund
    (22 )
    Net depreciation in fair value of investments
  $ (15,153,058 )

 
 
 

7
 
4.      FAIR VALUE MEASUREMENTS
 
The Plan applies the guidance in ASC 820.10 for assets recognized or disclosed at fair value on a recurring basis.  The guidance in ASC 820.10 defines fair value, establishes a framework for measuring fair value, and expands the disclosures on fair value measurements.  ASC 820.10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.  ASC 820.10 establishes market or observable inputs as the preferred source of fair value, followed by assumptions based on hypothetical transactions in the absence of market inputs.
 
 
The valuation techniques required by ASC 820.10 are based upon observable and unobservable inputs.  Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Plan’s market assumptions. These two types of inputs create the following three-level hierarchy to prioritize the inputs used in measuring fair value.  The levels within the hierarchy are described below with Level 1 having the highest priority and Level 3 having the lowest priority.
 
 
Level 1 
Fair value is determined based upon closing prices for identical instruments that are traded on active exchanges.
  
Level 2
Fair value is determined based upon quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; or model-derived valuations whose inputs are observable or whose significant value drivers are observable.
  
Level 3
Fair value is determined based upon significant inputs to the valuation model that are unobservable.

 
    Plan investments included in Level 1 are valued using closing prices for identical instruments that are traded on active exchanges.  Plan investments included in Level 2 are valued based upon the closing price fair values of the publicly traded underlying investments.
 
    There were no transfers in or out of Level 1 or Level 2 during the Plan years ended December 31, 2011 or Decembers 31, 2010.  The following tables present the investments of the Plan measured at fair value at December 31, 2011 and 2010.  See Note 3 - “Investments” for additional disclosure related to investments.
 
 
 
 
   
As of December 31, 2011
       
Asset Class
 
Level 1
   
Level 2
   
Total
 
                   
Equity Securities:
                 
   ADP Common Stock
  $ 302,037,152     $ -     $ 302,037,152  
   Consumer Goods
    151,944,484               151,944,484  
   Manufacturing and Industrial
    104,249,063       -       104,249,063  
   Financial Services
    68,965,181       -       68,965,181  
   Telecommunications and Other Services
    63,921,613       159,563       64,081,176  
   Energy
    50,960,868       -       50,960,868  
   Other
    9,558,216       -       9,558,216  
                         
Mutual Funds:
                       
  International Equity Securities
    198,098,924       -       198,098,924  
  U.S. Equity Securities
    5,215,385       -       5,215,385  
                      -  
Commingled Trusts
                       
  Target Date Retirement Funds
    -       484,128,689       484,128,689  
  S&P 500 Index Funds
    -       203,503,309       203,503,309  
  Growth Index Funds
    -       184,330,835       184,330,835  
                         
Money Markets
    -       282,581,903       282,581,903  
                         
Fixed Income Securities:
                       
   U.S. Government Securities
    -       143,592,737       143,592,737  
   AA Corporate Bonds
    -       22,544,008       22,544,008  
   A Corporate Bonds
            30,332,163       30,332,163  
   Mortgage-Backed Securities
    -       64,619,586       64,619,586  
                         
Total Investments
  $ 954,950,886     $ 1,415,792,793     $ 2,370,743,679  

 
 
   
As of December 31, 2010
       
Asset Class
 
Level 1
   
Level 2
   
Total
 
                   
Equity Securities:
                 
   ADP Common Stock
  $ 251,759,914     $ -     $ 251,759,914  
   Consumer Goods
    126,812,099       259,925       127,072,024  
   Manufacturing and Industrial
    104,192,313       -       104,192,313  
   Financial Services
    72,937,659       -       72,937,659  
   Telecommunications and Other Services
    59,026,333       -       59,026,333  
   Energy
    52,579,739       -       52,579,739  
   Other
    11,545,850       -       11,545,850  
                         
Mutual Funds:
                       
  International Equity Securities
    258,702,101       -       258,702,101  
  U.S. Equity Securities
    8,974,731       -       8,974,731  
                         
Commingled Trusts
                       
  Target Date Retirement Funds
    -       438,378,542       438,378,542  
  S&P 500 Index Funds
    -       194,005,924       194,005,924  
  Growth Index Funds
    -       175,423,277       175,423,277  
  Managed Income Portfolio
    -       635,897       635,897  
                         
Money Markets
    -       229,200,254       229,200,254  
                         
Fixed Income Securities:
                       
   U.S. Government Securities
    -       147,116,717       147,116,717  
   AA Corporate Bonds
    -       27,338,645       27,338,645  
   A Corporate Bonds
            24,733,535       24,733,535  
   Mortgage-Backed Securities
    -       38,304,108       38,304,108  
                         
Total Investments
  $ 946,530,739     $ 1,275,396,824     $ 2,221,927,563  

 
 
 

8
 
 
4.  FAIR VALUE MEASUREMENTS (continued)
 
 
The following table presents the investments of the Plan with a reported net asset value as of December 31, 2011 and December 31, 2010:
 
 
   
December 31, 2011
   
December 31, 2010
 
Redemption
Redemption
   
Fair Value
   
Fair Value
 
Frequency
Notice Period
                 
Northern Trust S&P 500 Index Fund (1)
  $ 203,503,309     $ -  
 Daily
 Trade date + 1
BlackRock Russell 2000 Growth Fund (2)
    184,330,835       175,423,277  
 Daily
 Trade date + 1
JPMorgan SmartRetirement Income Fund (3)
    32,222,089       26,453,188  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2010 Fund (4)
    30,484,964       29,146,496  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2015 Fund (4)
    62,431,611       60,524,198  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2020 Fund (4)
    140,973,090       132,637,228  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2030 Fund (4)
    126,728,372       112,292,164  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2040 Fund (4)
    91,288,563       77,325,268  
 Daily
 Trade date + 1
UBS Standard & Poor's 500 Index Fund (1)
    -       194,005,924  
 Daily
 Trade date + 1
Fidelity Managed Income Portfolio
    -       635,897  
 Daily
 Trade date + 1
Total
  $ 871,962,833     $ 808,443,640      

(1) The objective of this fund is to provide a rate of return consistent with the Standard & Poor's 500 Index.
(2) The objective of this fund is to provide a rate of return consistent with the Russell 2000 Growth Index.
(3) The objective of this fund is to outperform a custom benchmark of domestic and international equities, fixed income and real estate investments that has risk and return characteristics designed for investors who are retired or expecting to retire in the near term.
(4) The objective of these funds is to outperform custom benchmarks of domestic and international equities, fixed income and real estate investments that have risk and return characteristics designed for investors who are expecting to retire near the applicable fund's target retirement date.
 
 
 
5.      EXEMPT PARTY-IN-INTEREST TRANSACTIONS
 
At December 31, 2011 and 2010, the Plan held 5,592,245 and 5,439,929 shares, respectively, of Company Stock with a cost basis of $215,793,536 and $203,402,208, respectively.  For the year ended December 31, 2011, the Plan recorded dividend income in the amount of $8,141,367 from participants’ investments in the ADP Stock Fund.
 
Certain Plan investments are shares of mutual funds and money market funds managed by JPMorgan.  JPMorgan is the custodian of the Plan.
 
Certain employees and officers of the Company, who may also be participants in the Plan, perform administrative services to the Plan at no cost to the Plan.
 
These party-in-interest transactions are not deemed prohibited because they are covered by statutory and administrative exemptions from the IRC, the rules thereunder, and from the prohibited transactions provisions of ERISA.
 
6.
NONEXEMPT TRANSACTIONS
 
 
As reported on the supplemental schedule of delinquent participant contributions (Schedule H, Line 4a), certain Plan contributions were not remitted to the trust within the time frame specified by the Department of Labor's Regulation 29 (CFR 2510.3-102), thus constituting nonexempt transactions between the Plan and the Company for the year ended December 31, 2011. Total late participant contributions amounted to $188,014.  During 2012, the Plan Sponsor entered the Voluntary Correction Program (“VCP”) and remitted the late participant contributions to the Plan.
 

 
7.
PLAN TERMINATION
 
Although the Company has not expressed any intention to do so, it has the right under the provisions of the Plan to discontinue its contributions at any time by amending or terminating the Plan subject to the provisions of ERISA. However, upon full or partial termination of the Plan, each participant who is then an employee of the Company shall become 100% vested in his or her employer matching contribution account, and shall not be subjected to forfeiture.  Furthermore, no amendment shall decrease a participant’s vested interest under the Plan at the effective date of such amendment.
 

 
8.
FEDERAL INCOME TAX STATUS
 
The Internal Revenue Service (“IRS”) has determined and informed the Company by letter dated August 9, 2002 that the Plan and related Trust are designed in accordance with applicable sections of the IRC. The Plan has been amended since receiving the determination letter.  However, ADP and Plan management believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC, and that the Plan and related Trust continue to be tax exempt.  Therefore, no provision for income taxes has been included in the Plan’s financial statements.
 
Generally Accepted Accounting Principles (United States of America) require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS.  The Plan Administrator has analyzed the tax positions taken by the Plan and has concluded that as of December 31, 2011, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements.  The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.  The Plan Administrator believes the Plan is no longer subject to income tax examinations for years prior to 2008.


 
 

9
 

 
AUTOMATIC DATA PROCESSING, INC.
RETIREMENT AND SAVINGS PLAN
Plan Number 002
Plan Sponsor EIN 22-1467904


SCHEDULE OF DELINQUENT PARTICIPANT CONTRIBUTIONS
(Schedule H, Line 4a)
YEAR ENDED DECEMBER 31, 2011

 
 
 
Participant
Contributions
Transferred
Late to the Plan
 
 
 
Check Here if Late Participant Loan  
 Repayments are Included
 
 
 
 
 
Contributions   
Not Corrected
 
Contributions Corrected Outside
Voluntary Correction Program (“VCP”)
 
 
Contributions 
Pending
Correction in VCP
 
Total Fully Corrected
Under VCP
and Prohibited Transaction
Exemption 2002-51
 
   
 
         
$ 188,014           $ 188,014    

 
 
 
 

 


 
 

10
 
 
 
 
 
     
Plan Number 002
       
RETIREMENT AND SAVINGS PLAN
   
Plan Sponsor EIN 22-1467904
 
               
FORM 5500, SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
           
AS OF DECEMBER 31, 2011
             
               
 
Description
 
Number
   
Current
 
Identity of Issuer, Borrower or Similar Party
of Investment
 
of Shares
   
Value
 
               
ADP STOCK FUND
             
Common Stock
             
*AUTOMATIC DATA PROCESSING, INC. COMMON STOCK
Common Stock
    5,556,245     $ 300,092,793  
                   
Short-Term Investment Fund
                 
*J.P. Morgan U.S. Government Short-Term Investment Fund
Money Market
    2,573,722       2,573,722  
                   
TOTAL ADP STOCK FUND
            $ 302,666,515  
                   
AMERICAN CENTURY SMALL CAP VALUE FUND
                 
Common Stock
                 
AAR CORP COM STK
Common Stock
    13,200     $ 253,044  
ACTUANT CORP CLS 'A' COM STK
Common Stock
    12,600       285,894  
AGL RESOURCES
Common Stock
    11,700       494,442  
ALASKA AIR GROUP INC COM STK
Common Stock
    6,300       473,067  
ALEXANDER & BALDWIN INC COM STK
Common Stock
    5,400       220,428  
ALLEGIANT TRAVEL COM STK
Common Stock
    3,400       181,356  
ALLIANT TECHSYSTEMS INC COM STK
Common Stock
    10,000       571,600  
ALTERRA CAPITAL HLDGS LTD
Common Stock
    24,000       567,120  
ALTRA HOLDINGS INC COM STK
Common Stock
    30,400       572,432  
AMERICAN AXLE & MANUFACTURING HLDGS  COM
Common Stock
    60,400       597,356  
AMERICAN EAGLE OUTFITTER COM STK
Common Stock
    24,600       376,134  
AMERICAN EQUITY INVT LIFE HLDG CO COM ST
Common Stock
    29,200       303,680  
AMERICAN NATIONAL BANKSHARES COM STK
Common Stock
    16,100       313,789  
AMERICAN SCIENCE & ENGINEERING INC COM S
Common Stock
    14,600       994,406  
AMSURG CORP COM STK
Common Stock
    8,900       231,756  
APOGEE ENTERPRISES INC COM STK
Common Stock
    11,200       137,312  
APOLLO INVESTMENT CORP COM STK
Common Stock
    27,500       177,100  
APPLIED INDUSTRIAL TECHNOLOGIES INC COM
Common Stock
    10,500       369,285  
ARES CAPITAL CORP COM STK
Common Stock
    15,900       245,655  
ARKANSAS BEST CORP COM STK
Common Stock
    8,500       163,795  
ARTESIAN RESOURCES CORP CLASS 'A' COM STK
Common Stock
    18,500       348,355  
ARTIO GLOBAL INVESTORS INC
Common Stock
    20,000       97,600  
ASPEN INSURANCE HLDGS COM STK
Common Stock
    35,000       927,500  
ASSISTED LIVING CONCEPTS INC CLASS 'A' COM
Common Stock
    8,100       120,609  
ASSOCIATED BANC-CORP COM STK
Common Stock
    17,000       189,890  
ATLANTIC TELE NETWORK INC COM STK
Common Stock
    5,000       195,250  
ATMOS ENERGY CORP COM STK
Common Stock
    12,900       430,215  
AVISTA CORP COM STK
Common Stock
    17,100       440,325  
BALDWIN & LYONS INC CLASS 'B'
Common Stock
    18,000       392,400  
BALLY TECHNOLOGIES INC COM STK
Common Stock
    12,100       478,676  
BANKUNITED INC
Common Stock
    45,500       1,000,545  
BARNES GROUP INC COM STK
Common Stock
    13,600       327,896  
                   
             
(Continued)
 

 
 

11
 

 
 
 
 

AUTOMATIC DATA PROCESSING, INC.
   
Plan Number 002
       
RETIREMENT AND SAVINGS PLAN
   
Plan Sponsor EIN 22-1467904
 
               
FORM 5500,  SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
           
AS OF DECEMBER 31, 2011
             
               
 
Description
 
Number
   
Current
 
Identity of Issuer, Borrower or Similar Party
of Investment
 
of Shares
   
Value
 
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
             
Common Stock (Con't)
             
BEL FUSE INC CLASS 'B' SHS
Common Stock
    21,800     $ 408,750  
BELO CORP CLASS 'A' COM STK
Common Stock
    74,700       470,610  
BEMIS CO INC COM STK
Common Stock
    21,300       640,704  
BENCHMARK ELECTRONICS INC COM STK
Common Stock
    21,400       288,258  
BERRY PETROLEUM CORP CLASS 'A' COM STK
Common Stock
    11,500       483,230  
BIG LOTS INC COM STK
Common Stock
    13,100       494,656  
BILL BARRETT CORP COM
Common Stock
    12,100       412,247  
BLACK HILLS CORP COM STK
Common Stock
    10,900       366,022  
BLACKROCK KELSO CAPITAL CORP
Common Stock
    15,300       124,848  
BLUE COAT SYS INC
Common Stock
    5,100       129,795  
BOB EVANS FARMS INC COM STK
Common Stock
    9,200       308,568  
BOK FINANCIAL CORP COM STK
Common Stock
    10,700       587,751  
BOSTON PRIVATE FINANCIAL HLDGS INC COM
Common Stock
    58,900       467,666  
BRADY CORP 'A' NON.V
Common Stock
    21,300       672,441  
BRIGGS & STRATTON CORP COM STK
Common Stock
    27,300       422,877  
BRINK'S COMPANY BRINKS GROUP COM
Common Stock
    11,400       306,432  
BRINKER INTERNATIONAL COM STK
Common Stock
    11,400       305,064  
BRISTOW GROUP INC COM STK
Common Stock
    8,100       383,859  
BROOKLINE BANCORP
Common Stock
    30,400       256,576  
BRUNSWICK CORP COM STK
Common Stock
    21,700       391,902  
CABELAS INC COM STK
Common Stock
    7,600       193,192  
CAL DIVE INTL INC DEL COM STK
Common Stock
    65,500       147,375  
CAMPUS CREST COMMUNITIES INC
Common Stock
    26,200       263,572  
CAPITOL FEDERAL FINANCIAL INC
Common Stock
    47,800       551,612  
CDI CORP COM STK
Common Stock
    30,400       419,824  
CEC ENTERTAINMENT COM STK
Common Stock
    7,100       244,595  
CENTENE CORP (DEL) COM STK
Common Stock
    6,300       249,417  
CENTURY ALUMINIUM COM STK
Common Stock
    19,500       165,945  
CERADYNE INC COM STK
Common Stock
    4,800       128,544  
CHESAPEAKE UTILITIES CORP COM STK
Common Stock
    4,800       208,080  
CITY NATIONAL CORP COM STK
Common Stock
    6,800       300,424  
CLEARWATER PAPER CORPORATION
Common Stock
    13,700       487,857  
CLECO CORP COM STK
Common Stock
    14,100       537,210  
COHERENT INC COM STK
Common Stock
    3,500       182,945  
COLLECTIVE BRANDS INC COM STK
Common Stock
    17,500       251,475  
COLUMBIA SPORTSWEAR CO COM STK
Common Stock
    13,100       609,805  
COMFORT SYSTEMS USA COM STK
Common Stock
    13,300       142,576  
                   
             
(Continued)
 

 
 

12
 

 
 
 
 

AUTOMATIC DATA PROCESSING, INC.
   
Plan Number 002
 
RETIREMENT AND SAVINGS PLAN
   
Plan Sponsor EIN 22-1467904
 
               
FORM 5500,  SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
           
AS OF DECEMBER 31, 2011
             
               
 
Description
 
Number
   
Current
 
Identity of Issuer, Borrower or Similar Party
of Investment
 
of Shares
   
Value
 
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
             
Common Stock (Con't)
             
COMMUNITY BANK SYSTEMS NY COM STK
Common Stock
    9,900     $ 275,220  
COMPUWARE CORP COM STK
Common Stock
    32,000       266,240  
COMSTOCK RESOURCES INC COM STK
Common Stock
    19,300       295,290  
CONVERGYS CORP COM STK
Common Stock
    25,900       330,743  
COOPER TIRE & RUBBER CO COM STK
Common Stock
    29,300       410,493  
CORE-MARK HLDG CO INC COM STK
Common Stock
    5,100       201,960  
COVANCE INC COM STK
Common Stock
    5,400       246,888  
CSS INDUSTRIES INC COM STK
Common Stock
    17,100       340,632  
CULLEN FROST BANKERS COM STK
Common Stock
    13,100       693,121  
CULP INC COM STK
Common Stock
    29,100       247,932  
CURTISS-WRIGHT CORP COM STK
Common Stock
    21,900       773,727  
CUTERA INC COM STK
Common Stock
    29,600       220,520  
CVB FINANCIAL NPV
Common Stock
    19,400       194,582  
CYMER INC COM STK
Common Stock
    6,300       313,488  
CYTEC INDUSTRIES INC COM STK
Common Stock
    2,400       107,160  
DANA HOLDING CORP
Common Stock
    32,200       391,230  
DESTINATION MATERNITY CORP
Common Stock
    21,400       357,808  
DIANA CONTAINERSHIPS INC
Common Stock
    1       5  
DIANA SHIPPING INC COM STK
Common Stock
    54,100       404,668  
DILLARDS INC CLASS 'A' COM
Common Stock
    8,200       368,016  
DOLE FOOD CO INC
Common Stock
    26,800       231,820  
DOUGLAS DYNAMICS INC
Common Stock
    11,800       172,516  
DST SYSTEMS INC DELAWARE COM STK
Common Stock
    26,300       1,197,176  
DYNAMIC MATERIALS CORP COM STK
Common Stock
    11,200       221,536  
EL PASO ELECTRIC CO COM STK
Common Stock
    10,600       367,184  
ELECTRO SCIENTIFIC INDUSTRIES INC COM ST
Common Stock
    8,900       128,872  
EMCOR GROUP COM STK
Common Stock
    14,800       396,788  
EMULEX CORP COM STK
Common Stock
    23,000       157,780  
ENCORE WIRE CORP COM STK
Common Stock
    32,000       828,800  
ENTERCOM COMMUNICATIONS COM STK
Common Stock
    53,800       330,870  
ENTRAVISION COMMUNICATIONS CORP CLASS 'A'
Common Stock
    184,900       288,444  
EURONET WORLDWIDE INC COM STK
Common Stock
    10,800       199,584  
FERRO CORP COM STK
Common Stock
    15,000       73,350  
FIFTH STREET FINANCE CORP
Common Stock
    17,200       164,604  
FINISH LINE IN CLASS 'A' COM STK
Common Stock
    24,800       478,268  
FIRST FINANCIAL BANCORP
Common Stock
    12,800       212,992  
FIRST HORIZON NATIONAL CORP COM STK
Common Stock
    163,900       1,311,200  
FIRST INTERSTATE BANCSYSTEM INC
Common Stock
    16,200       211,086  
FIRSTMERIT CORP COM STK
Common Stock
    49,300       745,909  
                   
             
(Continued)
 

 
 

13
 

 
 
 
 
 

AUTOMATIC DATA PROCESSING, INC.
   
Plan Number 002
 
RETIREMENT AND SAVINGS PLAN
   
Plan Sponsor EIN 22-1467904
 
               
FORM 5500,  SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
           
AS OF DECEMBER 31, 2011
             
               
 
Description
 
Number
   
Current
 
Identity of Issuer, Borrower or Similar Party
of Investment
 
of Shares
   
Value
 
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
             
Common Stock (Con't)
             
FLUSHING FINANCIAL CORP COM STK
Common Stock
    13,600     $ 171,768  
FNB CORP PA COM STK
Common Stock
    22,900       258,999  
FOREST OIL CORP COM STK
Common Stock
    10,000       135,500  
FORMFACTOR INC COM STK
Common Stock
    44,300       224,158  
FRED'S INC CLASS 'A' COM STK
Common Stock
    16,700       243,486  
FREIGHTCAR AMERICA INC COM STK
Common Stock
    11,700       245,115  
FULLER (H.B.) CO COM STK
Common Stock
    14,300       330,473  
FULTON FINANCIAL CORP COM STK
Common Stock
    104,000       1,020,240  
GALLAGHER (ARTHUR J.) & CO COM
Common Stock
    7,800       260,832  
GANNETT CO INC COM STK
Common Stock
    25,000       334,250  
GENESCO INC COM STK
Common Stock
    3,600       222,264  
GEORGIA GULF CORP COM STK
Common Stock
    7,600       148,124  
GRACE (W.R.) & CO COM STK
Common Stock
    4,300       197,456  
GRANITE CONSTRUCTION COM STK
Common Stock
    53,700       1,273,764  
GREAT PLAINS ENERGY INC COM STK
Common Stock
    46,500       1,012,770  
GUESS INC COM STK
Common Stock
    13,100       390,642  
HANOVER INSURANCE GROUP INC COM STK
Common Stock
    6,800       237,660  
HARTE-HANKS INC COM STK
Common Stock
    10,600       96,354  
HAWKINS INC COM STK
Common Stock
    5,400       199,044  
HCC INSURANCE HLDG COM STK
Common Stock
    59,700       1,641,750  
HEALTHSOUTH CORP COM STK
Common Stock
    23,800       420,546  
HECLA MINING CO COM STK
Common Stock
    39,100       204,493  
HEIDRICK & STRUGGLES COM STK
Common Stock
    16,600       357,564  
HELEN OF TROY COM STK
Common Stock
    4,040       124,028  
HELIX ENERGY SOLUTIONS GROUP INC COM STK
Common Stock
    25,900       409,220  
HERCULES TECHNOLOGY GROWTH CAP INC COM S
Common Stock
    25,200       237,888  
HERITAGE FINANCIAL CORP COM STK
Common Stock
    29,900       375,544  
HUBBELL INC CLASS 'B'
Common Stock
    4,400       294,184  
HUGOTON ROYALTY TR UNITS OF BEN INTEREST
Common Stock
    14,200       267,812  
IBERIABANK CORP COM STK
Common Stock
    3,393       167,275  
ICU MEDICAL INC COM STK
Common Stock
    8,600       387,000  
IDACORP INC COM STK
Common Stock
    7,700       326,557  
IDEX CORP COM STK
Common Stock
    8,200       304,302  
II-VI INC
Common Stock
    13,700       251,532  
IMPAX LABORATORIES INC COM STK
Common Stock
    11,300       227,921  
INFINITY PROPERTY & CASUALTY CORP COM
Common Stock
    2,900       164,546  
INNOPHOS HOLDINGS INC COM
Common Stock
    6,500       315,640  
INTER PARFUMS INC COM STK
Common Stock
    14,200       220,952  
INTERSIL CORP CLASS 'A' COM STK
Common Stock
    30,400       317,376  
                   
             
(Continued)
 

 
 

14
 

 
 
 
 

AUTOMATIC DATA PROCESSING, INC.
   
Plan Number 002
 
RETIREMENT AND SAVINGS PLAN
   
Plan Sponsor EIN 22-1467904
 
               
FORM 5500,  SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
           
AS OF DECEMBER 31, 2011
             
               
 
Description
 
Number
   
Current
 
Identity of Issuer, Borrower or Similar Party
of Investment
 
of Shares
   
Value
 
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
             
Common Stock (Con't)
             
J & J SNACK FOODS CORP COM STK
Common Stock
    9,100     $ 484,848  
JACK IN THE BOX INC COM STK
Common Stock
    8,800       183,920  
JDA SOFTWARE GROUP INC COM STK
Common Stock
    7,900       255,881  
KAISER FEDERAL FINANCIAL GROUP INC
Common Stock
    14,800       189,736  
KAMAN CORP
Common Stock
    8,000       218,560  
KAPSTONE PAPER & PACKAGING CORP COM STK
Common Stock
    26,200       412,388  
KAYDON CORP COM STK
Common Stock
    29,300       893,650  
KENNAMETAL INC CAP STK
Common Stock
    19,285       704,288  
KEY ENERGY SERVICES INC COM STK
Common Stock
    4,500       69,615  
KFORCE INC COM STK
Common Stock
    24,500       302,085  
KNIGHT CAPITAL GROUP INC CLASS A COM ST
Common Stock
    14,800       174,936  
KRATON PERFORMANCE POLYMERS INC
Common Stock
    6,600       133,980  
LA-Z-BOY INC COM STK
Common Stock
    27,600       328,440  
LACLEDE GROUP INC COM STK
Common Stock
    4,100       165,927  
LAKELAND FINANCIAL CORP COM STK
Common Stock
    16,100       416,507  
LAWSON PRODUCTS INC COM STK
Common Stock
    20,093       310,035  
LEXMARK INTERNATIONAL INC CLASS 'A' COM ST
Common Stock
    5,100       168,657  
LIFEPOINT HOSPITALS INC COM STK
Common Stock
    10,800       401,220  
LIN TV CORP COM STK
Common Stock
    102,000       431,460  
LINCARE HLDGS INC COM STK
Common Stock
    22,700       583,617  
LINCOLN ELECTRIC HLDS INC COM STK
Common Stock
    9,200       359,904  
LITHIA MOTORS INC CLASS 'A' COM STK
Common Stock
    19,400       424,084  
LITTELFUSE INC COM STK
Common Stock
    17,000       730,660  
LONE PINE RESOURCES
Common Stock
    8,207       57,531  
LSI INDUSTRIES COM STK
Common Stock
    26,100       156,600  
MAGELLAN HEALTH SERVICES INC
Common Stock
    6,700       331,449  
MATERION CORP COM STK
Common Stock
    18,900       458,892  
MCG CAPITAL CORP COM STK
Common Stock
    25,100       100,149  
MDC HLDGS INC COM STK
Common Stock
    7,700       135,751  
MDU RESOURCES GROUP INC COM STK
Common Stock
    8,500       182,410  
MEDICIS PHARMACEUTICAL CORP CLASS A COM
Common Stock
    3,800       126,350  
MENS WEARHOUSE INC COM STK
Common Stock
    9,400       304,654  
METALICO INC COM
Common Stock
    80,900       266,161  
METHODE ELECTRONICS INC COM CLASS 'A'
Common Stock
    30,700       254,503  
MGE ENERGY INC COM STK
Common Stock
    2,581       120,713  
MINERALS TECHNOLOGIES INC COM STK
Common Stock
    9,100       514,423  
MKS INSTRUMENTS INC COM STK
Common Stock
    3,900       108,498  
MOLEX INC COM STK
Common Stock
    12,600       300,636  
MOOG INC CLASS 'A' (LIM.V)
Common Stock
    7,000       307,510  
                   
             
(Continued)
 

 
 

15
 

 
 
 
 
 

AUTOMATIC DATA PROCESSING, INC.
   
Plan Number 002
 
RETIREMENT AND SAVINGS PLAN
   
Plan Sponsor EIN 22-1467904
 
               
FORM 5500,  SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
           
AS OF DECEMBER 31, 2011
             
               
 
Description
 
Number
   
Current
 
Identity of Issuer, Borrower or Similar Party
of Investment
 
of Shares
   
Value
 
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
             
Common Stock (Con't)
             
MUELLER INDUSTRIES INC COM STK
Common Stock
    7,100     $ 272,782  
NANOMETRICS COM STK
Common Stock
    19,400       357,348  
NATIONAL BANKSHARES INC COM STK
Common Stock
    10,000       279,200  
NATIONAL HEALTH CARE CORP COM STK
Common Stock
    8,000       335,200  
NATIONAL PRESTO INDUSTRIES INC COM STK
Common Stock
    5,900       552,240  
NEUSTAR INC CLS 'A'
Common Stock
    11,900       406,623  
NORTHWESTERN CORPORATION COM STK
Common Stock
    8,100       289,899  
NOVELLUS SYSTEMS INC COM STK
Common Stock
    9,000       371,610  
NV ENERGY INC COM STK
Common Stock
    23,700       387,495  
OLD NATIONAL BANCORP (INDIANA) COM STK
Common Stock
    20,700       241,155  
OLIN CORP COM STK
Common Stock
    7,700       151,305  
OM GROUP INC COM STK
Common Stock
    10,800       241,812  
ON ASSIGNMENT COM STK
Common Stock
    39,000       436,020  
OPLINK COMMUNICATIONS INC COM NEW
Common Stock
    14,400       237,168  
ORBITAL SCIENCES COM STK
Common Stock
    12,300       178,719  
ORIENT EXPRESS HOTELS LTD CLS A COM STK
Common Stock
    19,800       147,906  
ORITANI FINANCIAL CORP
Common Stock
    14,300       182,611  
OSHKOSH CORPORATION
Common Stock
    9,300       198,834  
OVERSEAS SHIPHOLDING GROUP INC COM STK
Common Stock
    5,200       56,836  
OWENS & MINOR INC COM STK
Common Stock
    19,400       539,126  
PACIFIC CONTINETAL CORP COM STK
Common Stock
    25,400       224,790  
PAR PHARMACEUTICAL
Common Stock
    17,000       556,410  
PARK ELECTROCHEMICAL CORP COM STK
Common Stock
    20,700       530,334  
PARK STERLING CORP
Common Stock
    70,800       288,864  
PENN VIRGINIA CORP COM STK
Common Stock
    34,600       183,034  
PENNANTPARK INVESTMENT CORP COM STK
Common Stock
    39,900       402,591  
PENSKE AUTOMOTIVE GROUP INC COM STK
Common Stock
    18,200       350,350  
PHOTRONICS INC COM STK
Common Stock
    36,700       223,136  
PIKE ELECTRIC CORPORATION COM STK
Common Stock
    45,900       330,021  
PLANTRONICS INC COM STK
Common Stock
    6,600       235,224  
PLATINUM UNDERWRITERS HLDGS LTD
Common Stock
    16,500       562,815  
PLEXUS CORP COM STK
Common Stock
    30,500       835,090  
PORTLAND GENERAL ELECTRIC CO COM
Common Stock
    19,700       498,213  
PRESTIGE BRANDS HLDGS INC COM STK
Common Stock
    12,000       135,240  
PRIMERICA INC
Common Stock
    10,900       253,316  
PRIMO WATER CORP
Common Stock
    84,246       256,108  
PROASSURANCE CORP COM STK
Common Stock
    5,400       431,028  
PROSPECT CAPITAL CORP COM STK
Common Stock
    18,100       168,149  
PROVIDENT FINANCIAL SERVICES INC COM STK
Common Stock
    24,300       325,377  
                   
             
(Continued)
 

 
 

16
 

 
 
 
 

AUTOMATIC DATA PROCESSING, INC.
   
Plan Number 002
 
RETIREMENT AND SAVINGS PLAN
   
Plan Sponsor EIN 22-1467904
 
               
FORM 5500,  SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
           
AS OF DECEMBER 31, 2011
             
               
 
Description
 
Number
   
Current
 
Identity of Issuer, Borrower or Similar Party
of Investment
 
of Shares
   
Value
 
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
             
Common Stock (Con't)
             
PSS WORLD MEDICAL INC COM STK
Common Stock
    13,000     $ 314,470  
QLOGIC CORP COM STK
Common Stock
    49,500       742,500  
QUEST SOFWARE INC COM STK
Common Stock
    136,900       2,546,340  
RADIOSHACK CORP COM STK
Common Stock
    47,400       460,254  
RALCORP HOLDINGS INC COM STK
Common Stock
    4,000       342,000  
RENT-A-CENTER INC COM STK
Common Stock
    2,000       74,000  
ROBBINS & MYERS INC COM
Common Stock
    4,000       194,200  
RTI INTERNATIONAL METALS INC COM STK
Common Stock
    12,100       280,841  
RUDDICK CORP COM STK
Common Stock
    3,200       136,448  
SCHNITZER STEEL COM STK CLASS A
Common Stock
    7,000       295,960  
SCHULMAN (A.) INC COM STK
Common Stock
    4,100       86,838  
SCRIPPS (EW) CO NEW CLASS 'A' COM STK
Common Stock
    14,400       115,344  
SEMTECH CORP COM STK
Common Stock
    7,300       181,186  
SENSIENT TECHNOLOGIES CORP COM STK
Common Stock
    2,626       99,525  
SIMPSON MFG CO INC COM STK
Common Stock
    5,700       191,862  
SNYDER'S- LANCE INC
Common Stock
    15,400       346,500  
SONOCO PRODUCTS CO COM STK
Common Stock
    5,400       177,984  
SPANSION INC
Common Stock
    72,200       597,816  
STANDARD MICROSYSTEMS CORP COM STK
Common Stock
    20,100       517,977  
SUN HEALTHCARE GROUP INC
Common Stock
    0.003       0  
SWIFT ENERGY CO COM STK
Common Stock
    14,000       416,080  
SYKES ENTERPRISES INC COM STK
Common Stock
    30,300       474,498  
SYMETRA FINANCIAL CORP
Common Stock
    22,700       205,889  
SYNOPSYS INC COM STK
Common Stock
    6,200       168,640  
TCF FINANCIAL COM STK
Common Stock
    53,600       553,152  
TECH DATA CORP COM STK
Common Stock
    3,600       177,876  
TELEDYNE TECHNOLOGIES INC COM STK
Common Stock
    4,300       235,855  
TELLABS INC COM STK
Common Stock
    64,800       261,792  
TETRA TECHNOLOGIES COM STK
Common Stock
    75,000       700,500  
THOMAS & BETTS CORP COM STK
Common Stock
    3,300       180,180  
THOMPSON CREEK MET COM
Common Stock
    68,100       473,976  
TOTAL SYSTEM SERVICES INC
Common Stock
    47,400       927,144  
TREDEGAR CORP COM
Common Stock
    15,900       353,298  
TRICO BANCSHARES COM STK
Common Stock
    20,700       294,354  
TRIUMPH GROUP INC COM STK
Common Stock
    3,100       181,195  
TRUSTMARK CORP COM STK
Common Stock
    17,100       415,359  
UMPQUA HOLDINGS CORP COM STK
Common Stock
    23,900       296,121  
UNIT CORP COM STK
Common Stock
    6,800       315,520  
UNITED BANKSHARES INC COM STK
Common Stock
    7,200       203,544  
                   
             
(Continued)
 

 
 

17
 

 
 
 
 
 
 
AUTOMATIC DATA PROCESSING, INC.
   
Plan Number 002
 
RETIREMENT AND SAVINGS PLAN
   
Plan Sponsor EIN 22-1467904
 
               
FORM 5500,  SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
           
AS OF DECEMBER 31, 2011
             
               
 
Description
 
Number
   
Current
 
Identity of Issuer, Borrower or Similar Party
of Investment
 
of Shares
   
Value
 
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
             
Common Stock (Con't)
             
UNITED FIRE & CASUALTY CO COM STK
Common Stock
    18,600     $ 375,348  
UNITIL CORP COM STK
Common Stock
    10,700       303,666  
US ECOLOGY INC COM STK
Common Stock
    28,200       529,596  
US PHYSICAL THERAPY COM STK
Common Stock
    9,500       186,960  
UTAH MEDICAL PRODUCTS COM STK
Common Stock
    10,100       272,700  
UTI WORLDWIDE INC ORD
Common Stock
    17,200       228,588  
VAALCO ENERGY COM STK
Common Stock
    40,100       242,204  
VAIL RESORTS INC COM STK
Common Stock
    11,400       482,904  
VCA ANTECH INC COM STK
Common Stock
    30,700       606,325  
VILLAGE SUPER MARKET INC CLASS 'A' COM STK
Common Stock
    11,200       318,640  
VIROPHARMA INC COM STK
Common Stock
    15,000       410,850  
W & T OFFSHORE INC COM STK
Common Stock
    4,800       101,808  
WADDELL & REED FINL INC CL A
Common Stock
    26,600       658,882  
WASHINGTON BANKING CO COM STK
Common Stock
    15,900       189,369  
WASHINGTON FEDERAL INC COM STK
Common Stock
    23,800       332,962  
WEBSENSE INC COM STK
Common Stock
    23,100       432,663  
WEBSTER FINANCIAL CORP COM STK
Common Stock
    7,432       151,539  
WEIS MARKETS INC COM STK
Common Stock
    16,300       651,022  
WERNER ENTERPRISES INC COM STK
Common Stock
    7,900       190,390  
WESCO INTERNATIONAL INC COM STK
Common Stock
    5,800       307,458  
WESTAR ENERGY INC COM STK
Common Stock
    17,200       495,016  
WESTERN REFINING INC COM STK
Common Stock
    27,800       369,462  
WGL HLDGS INC COM STK
Common Stock
    10,500       464,310  
WILLIAMS-SONOMA INC COM STK
Common Stock
    8,900       342,650  
WINTRUST FINANCIAL CORP COM STK
Common Stock