Automatic Data Processing Inc. (ADP)

Income Statement

Difficulty: Beginner

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Automatic Data Processing Inc., consolidated income statement

US$ in thousands

	12 months ended	Jun 30, 2019		Jun 30, 2018		Jun 30, 2017		Jun 30, 2016		Jun 30, 2015		Jun 30, 2014
	Revenues, other than interest on funds held for clients and PEO revenues
	Interest on funds held for clients
	Professional Employer Organization (PEO) revenues
	Revenues
	Operating expenses
	Systems development and programming costs
	Depreciation and amortization
	Costs of revenues
	Gross profit
	Selling, general, and administrative expenses
	Separation costs
	Operating income
	Interest expense
	Interest income on corporate funds
	Realized gains on available-for-sale securities
	Realized losses on available-for-sale securities
	Impairment of intangible assets
	Gain on sale of assets
	Gain on sale of investment
	Gain on sale of business
	Gain on sale of notes receivable
	Non-service components of pension expense, net
	Other, net
	Other income (expense), net
	Earnings from continuing operations before income taxes
	Provision for income taxes
	Net earnings from continuing operations
	Net earnings (loss) from discontinued operations
	Net earnings

Based on: 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

Income statement item	Description	The company
Revenues	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	Automatic Data Processing Inc.’s revenues increased from 2017 to 2018 and from 2018 to 2019.
Operating income	The net result for the period of deducting operating expenses from operating revenues.	Automatic Data Processing Inc.’s operating income increased from 2017 to 2018 and from 2018 to 2019.
Earnings from continuing operations before income taxes	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	Automatic Data Processing Inc.’s earnings from continuing operations before income taxes declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Net earnings	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	Automatic Data Processing Inc.’s net earnings declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

	Automatic Data Processing Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality