form11k.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, 2012
 
 
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, 2012 and 2011
2
   
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2012
3
 
  
   Notes to Financial Statements as of December 31, 2012 and 2011
       and for the Year Ended December 31, 2012
 4-13
   
SUPPLEMENTAL SCHEDULE:
  
   
Form 5500, Schedule H, Part IV, Line 4i—Schedule of Assets (Held at End of Year)
       As of December 31, 2012
14-32
   
SIGNATURE
33
   
Exhibit 23 Consent of CohnReznick LLP
34


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, 2012 and 2011, and the related statement of changes in net assets available for benefits for the year ended December 31, 2012. 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.  The Plan is not required to have, nor were we engaged to perform, an audit of internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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, 2012 and 2011, and the changes in its net assets available for benefits for the year ended December 31, 2012, 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 2012 basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the 2012 basic financial statements but is 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. This supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the 2012 basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the 2012 basic financial statements taken as a whole.


/s/ CohnReznick LLP

Roseland, New Jersey
July 1, 2013


 
 
1
 
 
 
AUTOMATIC DATA PROCESSING, INC.
RETIREMENT AND SAVINGS PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
            
DECEMBER 31, 2012 AND 2011
            
             
   
2012
    
2011
  
ASSETS
            
             
CASH
   $ 1,503     $ 3,542  
INVESTMENTS (Notes 3 and 4):
                
     Participant directed investments, at fair value
     2,732,406,153       2,370,743,679  
                 
RECEIVABLES:
                
     Notes receivable from participants
     78,072,952       71,963,055  
     Interest and dividends receivable
     4,347,789       4,332,331  
     Broker receivable for securities sold
     2,514,316       9,202,300  
     Participant contribution receivable
     1,008,457       197,803  
     Employer contribution receivable
     425,248       208,648  
     Trust to trust transfer in receivable
     -       9,183,495  
                 
     TOTAL RECEIVABLES
     86,368,762       95,087,632  
                 
TOTAL ASSETS
     2,818,776,418       2,465,834,853  
                 
LIABILITIES
                
                 
     Broker payable for securities purchased
     16,283,216       36,688,805  
     Accrued expenses
     2,458,501       1,221,164  
                 
     TOTAL LIABILITIES
     18,741,717       37,909,969  
 
                
NET ASSETS AVAILABLE FOR BENEFITS
   $ 2,800,034,701     $ 2,427,924,884  
                 
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, 2012
      
       
Contributions:
  
 
  
     Participant
   $ 199,363,058  
     Employer
     72,000,799  
          Total contributions
     271,363,857  
         
   Investment income:
        
    Net appreciation in fair value of investments (Note 3)
     238,726,356  
    Dividend income
     27,674,111  
    Interest income
     2,204,157  
          Total investment income
     268,604,624  
         
 Interest income on notes receivable from participants
     3,186,408  
         
Benefits paid to participants
     (165,956,467 )
         
Administrative and general expenses
     (7,304,178 )
         
NET INCREASE IN NET ASSETS BEFORE TRANSFERS
     369,894,244  
         
TRUST TO TRUST TRANSFERS IN
     2,215,573  
         
NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS
     372,109,817  
         
NET ASSETS AVAILABLE FOR BENEFITS:
        
     Beginning of year
     2,427,924,884  
         
     End of year
   $ 2,800,034,701  
         
See notes to financial statements.
        

 
 
3
 

AUTOMATIC DATA PROCESSING, INC.
 
RETIREMENT AND SAVINGS PLAN
 
NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND 2011
AND FOR THE YEAR ENDED DECEMBER 31, 2012 

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.
 
General—The 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 2011), can contribute up to 35% (50% beginning January 1, 2013) 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 (10% of their compensation prior to January 1, 2013 and 12% thereafter).  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 2012.  Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans (“rollover contributions”).  Unless employees elect otherwise, they are 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.  Effective January 1, 2013, certain employees who were hired before January 1, 2007 and were not contributing to the Plan as of October 31, 2012, were automatically enrolled as participants in the Plan at a deferral rate of 1% of compensation.  These contributions will also be invested in the JPMorgan SmartRetirement Fund that corresponds to their estimated retirement date.  Participant contributions during the year ended December 31, 2012 include $19,021,437 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, the American Century Small Cap Value Fund, the BNY Mellon Small-Cap Equity Transition Fund, and the BNY Mellon International Equity Transition 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 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, the JPMorgan SmartRetirement 2040 Fund, the Pyramis Select International Plus Commingled Pool, and the ING Small-Cap Growth Fund are commingled trusts.  The Goldman Sachs Financial Square Government Fund is a money market fund.  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.
 
Vesting—Participants 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 Benefits—In 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 February 1, 2012, the Asparity Decision Solutions, Inc. 401(k) Plan merged into the Plan in connection with the acquisition of Asparity Decision Solutions, Inc. by the Company.  Transfers of $448,787 are included in Trust to Trust Transfers In in the accompanying Statement of Changes in Net Assets Available for Benefits.
 
Effective February 9, 2012, the W. Ray Wallace & Associates 401(k) Profit Sharing Plan merged into the Plan in connection with the acquisition of W. Ray Wallace & Associates by the Company.  Transfers of $1,074,053 are included in Trust to Trust Transfers In in the accompanying Statement of Changes in Net Assets Available for Benefits.
 
 
 
 
5
 
 
Effective April 2, 2012, The Autotegrity 401(k) Plan merged into the Plan in connection with the acquisition of Autotegrity, Inc. by the Company.  Transfers of $169,561 are included in Trust to Trust Transfers In in the accompanying Statement of Changes in Net Assets Available for Benefits.
 
Effective June 8, 2012, certain former participants in the SHPS, Inc. 401(k) Plan transferred their account and loan balances into the Plan in connection with the acquisition of SHPS, Inc. by the Company.  Transfers of $523,172 are included in Trust to Trust Transfers In in the accompanying Statement of Changes in Net Assets Available for Benefits.
 
Forfeitures—Upon 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, 2012 and 2011 amounted to $2,184,463 and $1,650,758, respectively.  For the year ended December 31, 2012, amounts used to pay administrative expenses amounted to $680,745, and the amount used to reduce employer contributions was $2,985,832.
 
Notes Receivable from Participants—Plan 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 Component—The 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.
 
 
 
 
6
 

 
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
The following are the significant accounting policies followed by the Plan:
 
Basis of Accounting—The 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 Uncertainties—The 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 Recognition—Purchases 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 and Goldman Sachs Financial Square Government 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 commingled 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 Investments—See Note 4 - “Fair Value Measurements.”
 
Fair Value of Other Financial Instruments—The carrying amount of receivables and liabilities approximates fair value.
 
Notes Receivable from Participants—Notes 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.  No allowance for credit losses has been recorded at December 31, 2012 or 2011.
 
Payment of Benefits—Benefits payments to participants are recorded upon distribution.  At December 31, 2012 and 2011, amounts allocated to accounts of individuals who had elected to withdraw but had not yet been paid totaled $39,088 and $391,579, 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.  The adoption of ASU 2011-4 did not have an impact on the Plan’s financial statements.  See Note 4 - “Fair Value Measurements.”

 
 
7
 

 
3.
INVESTMENTS
            
               
 
The investments of the Plan as of December 31, 2012 and 2011 are summarized as follows:
        
               
 
Investments, at fair value:
     2012       2011  
                   
 
    ADP Stock Fund, 5,664,893 shares and 5,556,245 shares, respectively
   $ 325,019,168 *   $ 302,666,515 *
 
    Seix Intermediate Bond Fund
     292,052,385       294,808,499  
 
    Northern Trust S&P 500 Index Fund
     255,518,328 *     203,503,309 *
 
    Columbia Dividend Value Fund
     253,895,871       206,174,817  
 
    Goldman Sachs Financial Square Government Fund
     225,978,241 *     225,441,863 *
 
    Pyramis Select International Plus Commingled Pool
     216,154,505 *     -  
 
    ING Small-Cap Growth Fund
     205,038,733 *     -  
 
    Montag & Caldwell Large Cap Growth Fund
     183,208,407       149,261,033  
 
    JPMorgan SmartRetirement 2020 Fund
     174,672,892 *     140,973,090 *
 
    JPMorgan SmartRetirement 2030 Fund
     170,528,811 *     126,728,372 *
 
    American Century Small Cap Value Fund
     151,167,378       122,329,195  
 
    JPMorgan SmartRetirement 2040 Fund
     133,489,804       91,288,563  
 
    JPMorgan SmartRetirement 2015 Fund
     72,617,547       62,431,611  
 
    JPMorgan SmartRetirement Income Fund
     40,160,925       32,222,089  
 
    JPMorgan SmartRetirement 2010 Fund
     32,784,171       30,484,964  
 
    BNY Mellon International Equity Transition Fund
     61,298       -  
 
    BNY Mellon Small-Cap Equity Transition Fund
     57,689       -  
 
    Artio International Equity Fund - Institutional Fund
     -       198,098,924 *
 
    BlackRock Russell 2000 Growth Fund
     -       184,330,835 *
 
Total Investments
   $ 2,732,406,153     $ 2,370,743,679  
                   
 
* 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, American Century Small Cap Value Fund, BNY Mellon Small-Cap Equity Transition Fund, and BNY Mellon International Equity Transition Fund), underlying investments are used to make such determination.
  

 
 
8
 

3.     INVESTMENTS (continued)
 
During the year ended December 31, 2012, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value as follows:
 
   
2012
  
       
    Northern Trust S&P 500 Index Fund
   $ 33,222,171  
    JPMorgan SmartRetirement 2030 Fund
     23,312,398  
    JPMorgan SmartRetirement 2020 Fund
     22,156,187  
    JPMorgan SmartRetirement 2040 Fund
     18,549,598  
    American Century Small Cap Value Fund
     18,439,911  
    Montag & Caldwell Large Cap Growth Fund
     18,047,769  
    Columbia Dividend Value Fund
     17,867,809  
    ADP Stock Fund
     17,007,348  
    BlackRock Russell 2000 Growth Fund
     14,751,676  
    Pyramis Select International Plus Commingled Pool
     13,790,313  
    Artio International Equity Fund - Institutional Fund
     12,192,202  
    ING Small-Cap Growth Fund
     8,725,959  
    JPMorgan SmartRetirement 2015 Fund
     8,575,736  
    JPMorgan SmartRetirement Income Fund
     3,936,214  
    JPMorgan SmartRetirement 2010 Fund
     3,516,633  
    BNY Mellon Small-Cap Equity Transition Fund
     2,112,060  
    Seix Intermediate Bond Fund
     1,799,070  
    BNY Mellon International Equity Transition Fund
     719,237  
    Goldman Sachs Financial Square Government Fund
     4,065  
    Net appreciation in fair value of investments
   $ 238,726,356  
         

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.

 
 

 
 
9
 


 
 
4.     FAIR VALUE MEASUREMENTS (continued)
 
There were no transfers in or out of Level 1 or Level 2 during the Plan years ended December 31, 2012 or Decembers 31, 2011.  The following tables present the investments of the Plan measured at fair value at December 31, 2012 and 2011.  See Note 3 - “Investments” for additional disclosure related to investments.

   
As of December 31, 2012
        
Asset Class
  
Level 1
    
Level 2
    
Total
  
                   
Equity Securities:
                  
   ADP Common Stock
   $ 325,284,123     $ -     $ 325,284,123  
   Consumer Goods
     179,713,932       -       179,713,932  
   Manufacturing and Industrial
     130,998,200       -       130,998,200  
   Financial Services
     99,552,911       -       99,552,911  
   Telecommunications and Other Services
     72,232,027       -       72,232,027  
   Energy
     56,907,298       -       56,907,298  
   Other
     10,977,070       -       10,977,070  
                         
Mutual Funds:
                        
  U.S. Equity Securities
     5,646,871       -       5,646,871  
                      -  
Commingled Trusts
                        
  Target Date Retirement Funds
     -       624,254,149       624,254,149  
  S&P 500 Index Funds
     -       255,518,328       255,518,328  
  Growth Index Funds
     -       421,193,238       421,193,238  
                         
Money Markets
     -       272,824,577       272,824,577  
                         
Fixed Income Securities:
                        
   U.S. Government Securities
     -       173,072,158       173,072,158  
   AA Corporate Bonds
     -       14,868,569       14,868,569  
   A Corporate Bonds
     -       25,081,613       25,081,613  
   Mortgage-Backed Securities
     -       64,281,089       64,281,089  
                         
Total Investments
   $ 881,312,432     $ 1,851,093,721     $ 2,732,406,153  
                         

 
 
10
 

 
 
4.     FAIR VALUE MEASUREMENTS (continued)
 
   
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  
                         

 
 
11
 



 
4.  FAIR VALUE MEASUREMENTS (continued)
 
 
The following table presents the investments of the Plan with a reported net asset value as of December 31, 2012 and December 31, 2011:
 
                 
   
December 31, 2012
    
December 31, 2011
  
Redemption
Redemption
   
Fair Value
    
Fair Value
  
Frequency
Notice Period
                 
Northern Trust S&P 500 Index Fund (1)
   $ 255,518,328     $ 203,503,309  
 Daily
 Trade date + 1
Pyramis Select International Plus Commingled Pool (2)
     216,154,505       -  
 Daily
 Trade date + 1
ING Small-Cap Growth Fund (3)
     205,038,733       -  
 Daily
 Trade date + 1
BlackRock Russell 2000 Growth Fund (3)
     -       184,330,835  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2020 Fund (4)
     174,672,892       140,973,090  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2030 Fund (4)
     170,528,811       126,728,372  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2040 Fund (4)
     133,489,804       91,288,563  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2015 Fund (4)
     72,617,547       62,431,611  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2010 Fund (4)
     32,784,171       30,484,964  
 Daily
 Trade date + 1
JPMorgan SmartRetirement Income Fund (5)
     40,160,925       32,222,089  
 Daily
 Trade date + 1
Total
   $ 1,300,965,716     $ 871,962,833      
                     
(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 MSCI ACWI ex US (Net) Index.
  
(3) The objective of this fund is to provide a rate of return consistent with the Russell 2000 Growth Index.
      
(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) The objective of this fund is to outperform a custom benchmark of domestic and international equities, fixed income and real estate investments that have risk and return characteristics designed for investors who are retired or expecting to retire in the near term.


 
5.      EXEMPT PARTY-IN-INTEREST TRANSACTIONS
 
At December 31, 2012 and 2011, the Plan held 5,705,738 and 5,592,245 shares, respectively, of Company Stock with a cost basis of $228,942,752 and $215,793,536, respectively.  For the year ended December 31, 2012, the Plan recorded dividend income in the amount of $9,234,061 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.
 

 
 
12
 


 
6.
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.
 
7.
FEDERAL INCOME TAX STATUS
 
The Internal Revenue Service (“IRS”) has determined and informed the Company by letter dated November 27, 2012 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 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 2009.


 
 
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, 2012
              
               
     
Number
    
Current
  
Identity of Issuer, Borrower or Similar Party
Description of Investment
  
of Shares
    
Value
  
               
ADP STOCK FUND
              
Common Stock
              
*AUTOMATIC DATA PROCESSING, INC. COMMON STOCK
                                                                                                    Common Stock
     5,664,893     $ 322,955,550  
                   
Short-Term Investment Fund
                  
*J.P. Morgan U.S. Government Short-Term Investment Fund
                                                                                                    Money Market
     2,063,618       2,063,618  
                   
TOTAL ADP STOCK FUND
             $ 325,019,168  
                   
AMERICAN CENTURY SMALL CAP VALUE FUND
                  
Common Stock
                  
AAR CORP COM STK
Common Stock
     12,800     $ 239,104  
ACTUANT CORP CLS 'A' COM STK
Common Stock
     5,400       150,714  
AEROVIRONMENT INC COM STK
Common Stock
     17,000       369,580  
ALASKA AIR GROUP INC COM STK
Common Stock
     10,200       439,518  
ALLSCRIPTS HEALTHCARE SOLUTIONS INC COM
Common Stock
     38,000       357,960  
ALON USA ENERGY INC COM STK
Common Stock
     29,700       537,273  
ALTERRA CAPITAL HLDGS LTD
Common Stock
     26,300       741,397  
ALTRA HOLDINGS INC COM STK
Common Stock
     42,400       934,920  
AMERICAN AXLE & MANUFACTURING HLDGS  COM
Common Stock
     77,700       870,240  
AMERICAN EAGLE OUTFITTER COM STK
Common Stock
     10,000       205,100  
AMERICAN EQUITY INVT LIFE HLDG CO COM ST
Common Stock
     21,100       257,631  
AMERICAN NATIONAL BANKSHARES COM STK
Common Stock
     26,800       541,092  
AMERICAN SCIENCE & ENGINEERING INC COM S
Common Stock
     21,200       1,382,452  
AMSURG CORP COM STK
Common Stock
     800       24,008  
ANN INC
Common Stock
     14,800       500,832  
APOLLO INVESTMENT CORP COM STK
Common Stock
     71,100       594,396  
APPLIED INDUSTRIAL TECHNOLOGIES INC COM
Common Stock
     7,500       315,075  
ARES CAPITAL CORP COM STK
Common Stock
     10,000       175,000  
ARTESIAN RESOURCES CORP CLASS 'A' COM STK
Common Stock
     18,364       411,905  
ASBURY AUTOMOTIVE GROUP INC COM STK
Common Stock
     19,200       614,976  
ASPEN INSURANCE HLDGS COM STK
Common Stock
     14,700       471,576  
AVISTA CORP COM STK
Common Stock
     25,400       612,394  
BALDWIN & LYONS INC CLASS 'B'
Common Stock
     26,300       627,518  
BANCORPSOUTH INC COM
Common Stock
     16,200       235,548  
BANKUNITED INC
Common Stock
     82,700       2,021,188  
BARNES GROUP INC COM STK
Common Stock
     17,500       393,050  
BEL FUSE INC CLASS 'B' SHS
Common Stock
     25,500       498,525  
BELDEN INC COM STK
Common Stock
     10,100       454,399  
BELO CORP
Common Stock
     82,200       630,474  
BEMIS CO INC COM STK
Common Stock
     20,000       669,200  
BERRY PETROLEUM CORP CLASS 'A' COM STK
Common Stock
     13,900       466,345  
BILL BARRETT CORP COM
Common Stock
     12,900       229,491  
                   
             
(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, 2012
                  
                   
     
Number
    
Current
  
Identity of Issuer, Borrower or Similar Party
Description of Investment
  
of Shares
    
Value
  
                   
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
                  
Common Stock (Con't)
                  
BLACKROCK KELSO CAPITAL CORP
Common Stock
     13,400     $ 134,804  
BOB EVANS FARMS INC COM STK
Common Stock
     5,300       213,060  
BOK FINANCIAL CORP COM STK
Common Stock
     6,900       375,774  
BONANZA CREEK ENERGY INC
Common Stock
     19,000       528,010  
BOSTON PRIVATE FINANCIAL HLDGS INC COM
Common Stock
     58,300       525,283  
BRIGGS & STRATTON CORP COM STK
Common Stock
     23,900       503,812  
BRISTOW GROUP INC COM STK
Common Stock
     6,900       370,254  
BROOKLINE BANCORP
Common Stock
     34,000       289,000  
BRUNSWICK CORP COM STK
Common Stock
     16,300       474,167  
BUCKEYE TECHNOLOGIES INC COM STK
Common Stock
     7,700       221,067  
CABELAS INC COM STK
Common Stock
     12,200       509,350  
CAMPUS CREST COMMUNITIES INC
Common Stock
     56,500       692,690  
CAPITOL FEDERAL FINANCIAL INC
Common Stock
     53,100       620,739  
CARPENTER TECHNOLOGY CORP COM STK
Common Stock
     8,900       459,507  
CATAHY GENERAL BANCORP COM STK
Common Stock
     38,100       742,950  
CAVCO INDUSTRIES INC COM STK
Common Stock
     14,200       709,716  
CDI CORP COM STK
Common Stock
     47,000       805,110  
CEC ENTERTAINMENT COM STK
Common Stock
     7,900       262,201  
CELADON GROUP COM STK
Common Stock
     32,200       581,854  
CENTRAL GARDEN & PET CO COM STK
Common Stock
     17,600       183,920  
CENTURY ALUMINIUM COM STK
Common Stock
     35,400       310,104  
CHICOS FAS INC COM STK
Common Stock
     28,600       527,956  
CITY NATIONAL CORP COM STK
Common Stock
     3,800       188,176  
CLEARWATER PAPER CORPORATION
Common Stock
     19,000       744,040  
CLECO CORP COM STK
Common Stock
     2,500       100,025  
COEUR D'ALENE MINE COM STK
Common Stock
     12,800       314,880  
COHERENT INC COM STK
Common Stock
     7,500       379,650  
COMMERCE BANCSHARES INC COM STK
Common Stock
     11,445       401,262  
COMMUNITY BANK SYSTEMS NY COM STK
Common Stock
     9,300       254,448  
COMMUNITY HEALTH SYSTEMS INC (NEW) COM STK
Common Stock
     10,800       331,992  
COMPASS MINERALS INTERNATIONAL INC COM S
Common Stock
     13,100       978,701  
COMPUWARE CORP COM STK
Common Stock
     48,400       526,108  
CONVERGYS CORP COM STK
Common Stock
     21,200       347,892  
CORE-MARK HLDG CO INC COM STK
Common Stock
     4,700       222,545  
CORRECTIONS CORPORATIONS OF AMERICA COM
Common Stock
     17,100       606,537  
CROCS INC COM STK
Common Stock
     31,900       459,041  
CSS INDUSTRIES INC COM STK
Common Stock
     23,773       520,391  
                   
             
(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, 2012
                  
                   
     
Number
    
Current
  
Identity of Issuer, Borrower or Similar Party
Description of Investment
  
of Shares
    
Value
  
                   
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
                  
Common Stock (Con't)
                  
CULLEN FROST BANKERS COM STK
Common Stock
     9,100     $ 493,857  
CULP INC COM STK
Common Stock
     42,200       633,422  
CURTISS-WRIGHT CORP COM STK
Common Stock
     7,100       233,093  
CVB FINANCIAL NPV
Common Stock
     26,200       272,480  
CYPRESS SEMICONDUCTOR CORP COM STK
Common Stock
     79,800       865,032  
DANA HOLDING CORP
Common Stock
     48,400       755,524  
DESTINATION MATERNITY CORP
Common Stock
     22,400       482,944  
DIODES INC COM STK
Common Stock
     33,300       577,755  
DOLE FOOD CO INC
Common Stock
     25,300       290,191  
DST SYSTEMS INC DELAWARE COM STK
Common Stock
     24,300       1,472,580  
DYNAMIC MATERIALS CORP COM STK
Common Stock
     33,300       462,870  
EL PASO ELECTRIC CO COM STK
Common Stock
     23,400       746,694  
EMCOR GROUP COM STK
Common Stock
     15,700       543,377  
EMPIRE DISTRICT ELECTRIC CO COM STK
Common Stock
     6,861       139,827  
ENCORE WIRE CORP COM STK
Common Stock
     18,400       557,704  
ENERGY XXI (BERMUDA)
Common Stock
     4,600       148,074  
ENTERCOM COMMUNICATIONS COM STK
Common Stock
     82,600       576,548  
ENTRAVISION COMMUNICATIONS CORP CLASS 'A'
Common Stock
     322,600       535,516  
ERICKSON AIR-CRANE INC
Common Stock
     46,200       389,466  
FIFTH STREET FINANCE CORP
Common Stock
     19,100       199,022  
FINISAR CORP
Common Stock
     21,400       348,820  
FIRST HORIZON NATIONAL CORP COM STK
Common Stock
     71,800       711,538  
FIRST INTERSTATE BANCSYSTEM INC
Common Stock
     21,200       327,116  
FIRST MIDWEST BANCORP COM STK
Common Stock
     6,200       77,624  
FIRST NIAGARA FINANCIAL GROUP INC COM
Common Stock
     88,800       704,184  
FLIR SYSTMES INC COM STK
Common Stock
     45,900       1,024,029  
FLUSHING FINANCIAL CORP COM STK
Common Stock
     22,600       346,684  
FNB CORP PA COM STK
Common Stock
     27,500       292,050  
FREIGHTCAR AMERICA INC COM STK
Common Stock
     19,400       434,948  
FULTON FINANCIAL CORP COM STK
Common Stock
     41,300       396,893  
GARDNER DENVER INC COM STK
Common Stock
     4,500       308,250  
GENESCO INC COM STK
Common Stock
     16,900       929,500  
GLOBAL PAYMENTS INC COM STK
Common Stock
     24,800       1,123,440  
GLOBE SPECIALTY METALS INC
Common Stock
     13,000       178,750  
GRACE (W.R.) & CO COM STK
Common Stock
     2,000       134,460  
GRANITE CONSTRUCTION COM STK
Common Stock
     10,000       336,200  
GRAPHIC PACKAGING HLDG CO
Common Stock
     81,000       523,260  
GREAT PLAINS ENERGY INC COM STK
Common Stock
     59,700       1,212,507  
GULFPORT ENERGY CORP COM STK
Common Stock
     14,100       538,902  
                   
             
(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, 2012
                  
                   
     
Number
    
Current
  
Identity of Issuer, Borrower or Similar Party
Description of Investment
  
of Shares
    
Value
  
                   
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
                  
Common Stock (Con't)
                  
HANOVER INSURANCE GROUP INC COM STK
Common Stock
     8,400     $ 325,416  
HARRIS TEETER SUPERMARKETS INC NPV
Common Stock
     5,400       208,224  
HAWKINS INC COM STK
Common Stock
     12,300       475,272  
HAYNES INTERNATIONAL INC COM STK
Common Stock
     5,500       285,285  
HCC INSURANCE HLDG COM STK
Common Stock
     48,600       1,808,406  
HEALTH MANAGEMENT ASSOCIATES INC CLASS 'A
Common Stock
     32,600       303,832  
HEALTHSOUTH CORP COM STK
Common Stock
     26,900       567,859  
HEARTLAND EXPRESS INC COM STK
Common Stock
     40,700       531,949  
HECKMANN CORP
Common Stock
     95,590       385,228  
HECLA MINING CO COM STK
Common Stock
     21,100       123,013  
HELEN OF TROY COM STK
Common Stock
     9,002       300,577  
HELIX ENERGY SOLUTIONS GROUP INC COM STK
Common Stock
     11,100       229,104  
HERCULES TECHNOLOGY GROWTH CAP INC
Common Stock
     20,000       222,600  
HERITAGE FINANCIAL CORP COM STK
Common Stock
     37,000       543,530  
HORNBECK OFFSHORE SERVICES COM STK
Common Stock
     18,198       624,919  
IBERIABANK CORP COM STK
Common Stock
     13,000       638,560  
ICU MEDICAL INC COM STK
Common Stock
     4,300       261,999  
IDACORP INC COM STK
Common Stock
     12,100       524,535  
IDEX CORP COM STK
Common Stock
     13,200       614,196  
II-VI INC
Common Stock
     3,300       60,291  
IMPAX LABORATORIES INC COM STK
Common Stock
     13,000       266,370  
INFINITY PROPERTY & CASUALTY CORP COM
Common Stock
     14,600       850,304  
INGRAM MICRO INC CLASS 'A COM STK
Common Stock
     40,500       685,260  
INNOPHOS HOLDINGS INC COM
Common Stock
     10,900       506,850  
INTEGRA LIFESCIENCES HLDGS CORP COM STK
Common Stock
     7,400       288,378  
INTER PARFUMS INC COM STK
Common Stock
     10,600       206,276  
INTERSIL CORP CLASS 'A' COM STK
Common Stock
     50,200       416,158  
INTREPID POTASH INC
Common Stock
     25,900       551,411  
INVESTMENT TECHNOLOGY GROUP COM STK
Common Stock
     22,200       199,800  
IPG PHOTONICS CORP COM STK
Common Stock
     6,502       433,358  
J & J SNACK FOODS CORP COM STK
Common Stock
     8,500       543,490  
JABIL CIRCUIT INC COM STK
Common Stock
     19,300       372,297  
JANUS CAPITAL GROUP INC COM STK
Common Stock
     43,800       373,176  
JETBLUE AIRWAYS CORP COM STK
Common Stock
     40,700       232,397  
KAISER ALUMINUM CORP COM STK
Common Stock
     3,700       228,253  
KAMAN CORP
Common Stock
     16,200       596,160  
KAPSTONE PAPER & PACKAGING CORP COM STK
Common Stock
     17,800       394,982  
KAYDON CORP COM STK
Common Stock
     31,300       749,009  
KENNAMETAL INC CAP STK
Common Stock
     26,300       1,052,000  
                   
             
(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, 2012
                  
                   
     
Number
    
Current
  
Identity of Issuer, Borrower or Similar Party
Description of Investment
  
of Shares
    
Value
  
                   
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
                  
Common Stock (Con't)
                  
KEY ENERGY SERVICES INC COM STK
Common Stock
     64,000     $ 444,800  
KFORCE INC COM STK
Common Stock
     35,500       508,715  
LACLEDE GROUP INC COM STK
Common Stock
     8,500       328,185  
LAKELAND FINANCIAL CORP COM STK
Common Stock
     17,000       439,280  
LEAR CORP COM
Common Stock
     9,500       444,980  
LIFE TIME FITNESS INC COM STK
Common Stock
     8,000       393,680  
LIFEPOINT HOSPITALS INC COM STK
Common Stock
     10,400       392,600  
LIN TV CORP COM STK
Common Stock
     93,600       704,808  
LINCOLN ELECTRIC HLDS INC COM STK
Common Stock
     5,900       287,212  
LITHIA MOTORS INC CLASS 'A' COM STK
Common Stock
     6,100       228,262  
LITTELFUSE INC COM STK
Common Stock
     15,300       944,163  
M/A-COM TECH SOLUTIONS HLDGS INC
Common Stock
     35,887       537,228  
MAGELLAN HEALTH SERVICES INC
Common Stock
     4,600       225,400  
MARTEN TRANSPORT COM STK
Common Stock
     36,500       671,235  
MB FINANCIAL INC COM STK
Common Stock
     15,700       310,075  
MDC HLDGS INC COM STK
Common Stock
     15,600       573,456  
MENS WEARHOUSE INC COM STK
Common Stock
     9,600       299,136  
MENTOR GRAPHICS CORP COM STK
Common Stock
     18,500       314,870  
METALICO INC COM
Common Stock
     45,900       89,964  
METHODE ELECTRONICS INC COM CLASS 'A'
Common Stock
     30,500       305,915  
MINERALS TECHNOLOGIES INC COM STK
Common Stock
     9,600       383,232  
MKS INSTRUMENTS INC COM STK
Common Stock
     26,200       675,436  
MOOG INC CLASS 'A' (LIM.V)
Common Stock
     5,400       221,562  
MUELLER INDUSTRIES INC COM STK
Common Stock
     5,000       250,150  
NANOMETRICS COM STK
Common Stock
     63,100       909,902  
NATIONAL BANKSHARES INC COM STK
Common Stock
     16,700       540,913  
NATIONAL FINANCIAL PARTNERS COM STK
Common Stock
     26,100       447,354  
NATIONAL HEALTH CARE CORP COM STK
Common Stock
     9,000       423,180  
NATIONAL PRESTO INDUSTRIES INC COM STK
Common Stock
     2,400       165,840  
NEUSTAR INC CLS 'A'
Common Stock
     5,400       226,422  
NEXSTAR BROADCASTING GROUP INC COM STK
Common Stock
     36,300       384,417  
NORTHWESTERN CORPORATION COM STK
Common Stock
     9,600       333,408  
OFFICEMAX INC COM STK
Common Stock
     24,200       236,192  
OLD NATIONAL BANCORP (INDIANA) COM STK
Common Stock
     27,000       320,490  
OLIN CORP COM STK
Common Stock
     14,800       319,532  
OM GROUP INC COM STK
Common Stock
     8,200       182,040  
ON SEMICONDUCTOR CORP COM STK
Common Stock
     85,200       600,660  
ORBITAL SCIENCES COM STK
Common Stock
     13,300       183,141  
ORIENT EXPRESS HOTELS LTD CLS A COM STK
Common Stock
     33,600       392,784  
                   
             
(Continued)
  
 
 
 
 
18
 
 
 
                   
                   
                   
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, 2012
                  
                   
     
Number
    
Current
  
Identity of Issuer, Borrower or Similar Party
Description of Investment
  
of Shares
    
Value
  
                   
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
                  
Common Stock (Con't)
                  
ORITANI FINANCIAL CORP
Common Stock
     23,900     $ 366,148  
ORTHOFIX INTL NV COM STK
Common Stock
     19,200       755,136  
OWENS & MINOR INC COM STK
Common Stock
     27,000       769,770  
PACIFIC CONTINETAL CORP COM STK
Common Stock
     36,800       358,064  
PARAMETRIC TECHNOLOGY CORP NEW COM STK
Common Stock
     17,200       387,172  
PARK ELECTROCHEMICAL CORP COM STK
Common Stock
     16,800       432,264  
PARK STERLING CORP
Common Stock
     71,000       371,330  
PBF ENERGY INC
Common Stock
     10,900       316,645  
PDC ENERGY INC
Common Stock
     2,903       96,409  
PENNANTPARK INVESTMENT CORP COM STK
Common Stock
     63,500       698,183  
PHH CORP COM STK
Common Stock
     20,400       464,100  
PIKE ELECTRIC CORPORATION COM STK
Common Stock
     29,400       280,770  
PLATINUM UNDERWRITERS HLDGS LTD
Common Stock
     13,100       602,600  
POLYCOM INC COM STK
Common Stock
     34,200       357,732  
POPULAR INC
Common Stock
     44,700       929,313  
PORTLAND GENERAL ELECTRIC CO COM
Common Stock
     20,100       549,936  
PRIMERICA INC
Common Stock
     10,400       312,104  
PROASSURANCE CORP COM STK
Common Stock
     6,400       270,016  
PROSPERITY BANCSHARES INC COM STK
Common Stock
     12,700       533,400  
PROVIDENT FINANCIAL SERVICES INC COM STK
Common Stock
     22,100       329,732  
PSS WORLD MEDICAL INC COM STK
Common Stock
     10,400       300,352  
QLOGIC CORP COM STK
Common Stock
     22,100       215,033  
QUANEX BUILDING PRODUCTS CORP COM STK
Common Stock
     11,000       224,510  
RALCORP HOLDINGS INC COM STK
Common Stock
     3,400       304,810  
RUE21 INC
Common Stock
     21,700       616,063  
SAKS INC COM STK
Common Stock
     49,500       520,245  
SCHNITZER STEEL COM STK CLASS 'A
Common Stock
     21,600       655,128  
SEALED AIR CORP COM STK
Common Stock
     35,500       621,605  
SEMTECH CORP COM STK
Common Stock
     7,900       228,705  
SENSIENT TECHNOLOGIES CORP COM STK
Common Stock
     9,900       352,044  
SIGNATURE BANK COMMON SHS
Common Stock
     5,000       356,700  
SILGAN HLDGS INC COM STK
Common Stock
     14,800       615,532  
SIMPLICITY BANCORP INC
Common Stock
     18,500       276,575  
SNYDER'S LANCE INC
Common Stock
     12,400       298,964  
SOLAR CAPITAL LTD
Common Stock
     13,200       315,612  
SOTHEBYS INC CLASS 'A' LIM.V COM STK
Common Stock
     24,200       813,604  
SOUTH JERSEY INDUSTRIES INC COM STK
Common Stock
     5,803       292,065  
SOUTHWEST GAS CORP COM STK
Common Stock
     12,500       530,125  
SPANSION INC
Common Stock
     63,900       888,849  
                   
             
(Continued)
  
 
 
 
 
19
 
 
 
                   
                   
                   
                   
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, 2012
                  
                   
     
Number
    
Current
  
Identity of Issuer, Borrower or Similar Party
Description of Investment
  
of Shares
    
Value
  
                   
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
                  
Common Stock (Con't)
                  
STANDARD MOTOR PRODUCTS INC COM STK
Common Stock
     9,600     $ 213,312  
STEINER LEISURE COM STK
Common Stock
     11,400       549,366  
STURM RUGER & CO INC COM STK
Common Stock
     4,900       222,460  
SUNSTONE HOTEL INVESTORS INC COM STK
Common Stock
     38,100       408,051  
SUSQUEHANNA BANCHARE COM STK
Common Stock
     52,300       548,104  
SWIFT ENERGY CO COM STK
Common Stock
     13,800       212,382  
SYKES ENTERPRISES INC COM STK
Common Stock
     41,200       627,064  
SYMETRA FINANCIAL CORP
Common Stock
     25,000       324,500  
TCF FINANCIAL COM STK
Common Stock
     29,700       360,855  
TELEDYNE TECHNOLOGIES INC COM STK
Common Stock
     3,200       208,224  
TETRA TECHNOLOGIES COM STK
Common Stock
     60,300       457,677  
TITANIUM METALS CORP COM STK
Common Stock
     13,700       226,187  
TREDEGAR CORP COM
Common Stock
     23,300       475,786  
TRICO BANCSHARES COM STK
Common Stock
     12,900       216,075  
TRONOX LTD COM
Common Stock
     17,300       315,725  
TRUE RELIGION APPAREL INC COM STK
Common Stock
     11,500       292,330  
TRUSTMARK CORP COM STK
Common Stock
     1,211       27,199  
TUPPERWARE BRANDS CORP COM STK
Common Stock
     9,600       615,360  
UNIT CORP COM STK
Common Stock
     5,000       225,250  
UNITED BANKSHARES INC COM STK
Common Stock
     8,200       199,424  
UNITED FIRE GROUP INC
Common Stock
     28,400       620,256  
UNS ENERGY CORP
Common Stock
     3,400       144,228  
UTAH MEDICAL PRODUCTS COM STK
Common Stock
     13,900       501,095  
UTI WORLDWIDE INC ORD
Common Stock
     17,400       233,160  
VAALCO ENERGY COM STK
Common Stock
     56,100       485,265  
VAIL RESORTS INC COM STK
Common Stock
     8,400       454,356  
VCA ANTECH INC COM STK
Common Stock
     28,100       591,505  
VERA BRADLEY INC
Common Stock
     48,700       1,222,370  
VIEWPOINT FINL GP INC  MD
Common Stock
     29,900       626,106  
VILLAGE SUPER MARKET INC CLASS 'A' COM STK
Common Stock
     11,300       371,318  
VIROPHARMA INC COM STK
Common Stock
     3,400       77,384  
W & T OFFSHORE INC COM STK
Common Stock
     12,700       203,581  
WADDELL & REED FINL INC CL A
Common Stock
     5,500       191,510  
WALTER INVESTMENT MANAGEMENT CORP
Common Stock
     15,506       667,068  
WASHINGTON BANKING CO COM STK
Common Stock
     21,300       290,106  
WASHINGTON FEDERAL INC COM STK
Common Stock</