june11k.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, 2010


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)


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)


Registrant’s telephone number, including area code:  (973) 974-5000



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, 2010 and 2009
 
2
   
Statement of Changes in Net Assets Available for Benefits
  
     For the Year Ended December 31, 2010
3
   
   Notes to Financial Statements as of December 31, 2010 and 2009
  
     and for the Year Ended December 31, 2010                                                                                                
4-7
   
SUPPLEMENTAL SCHEDULE:
 
Form 5500, Schedule H, Part IV, Line 4i—Schedule of Assets (Held at End of Year)
    As of December 31, 2010                                                                                                           
 
 
 
8-26
   
SIGNATURE
27
   
Exhibit 23-1                      Consent of J.H. Cohn LLP
  

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, 2010 and 2009, and the related statement of changes in net assets available for benefits for the year ended December 31, 2010. 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, 2010 and 2009, and the changes in its net assets available for benefits for the year ended December 31, 2010, 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 schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the 2010 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 2010 basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the 2010 basic financial statements taken as a whole.


/s/ J.H. Cohn LLP

 
Roseland, New Jersey
June 29, 2011
 
 
 
1 
 
 
AUTOMATIC DATA PROCESSING, INC.
            
RETIREMENT AND SAVINGS PLAN
            
             
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
        
DECEMBER 31, 2010 AND 2009
            
             
   
2010
    
2009
  
ASSETS
            
             
CASH
   $ 6,637     $ 13,576  
                 
INVESTMENTS (Notes 3 and 4):
                
   Participant directed investments, at fair value
     2,221,927,563       1,865,648,079  
                 
RECEIVABLES:
                
   Notes receivable from participants
     66,837,683       58,555,434  
   Interest and dividends receivable
     4,221,269       4,144,065  
   Broker receivable for securities sold
     326,903       6,330,188  
   Participant contribution receivable
     11,347       72,001  
   Employer contribution receivable
     5,713       4,711  
                 
   TOTAL RECEIVABLES
     71,402,915       69,106,399  
                 
TOTAL ASSETS
     2,293,337,115       1,934,768,054  
                 
LIABILITIES
                
                 
   Broker payable for securities purchased
     2,150,921       14,465,565  
   Accrued expenses
     957,108       1,432,481  
                 
   TOTAL LIABILITIES
     3,108,029       15,898,046  
 
                
NET ASSETS AVAILABLE FOR BENEFITS
   $ 2,290,229,086     $ 1,918,870,008  
                 
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, 2010
      
       
ADDITIONS:
  
 
  
   Contributions:
  
 
  
     Participant
   $ 153,243,364  
     Employer
     57,518,614  
          Total contributions
     210,761,978  
         
   Investment income:
        
   Net appreciation in fair value of investments (Note 3)
     206,827,776  
   Dividend income
     24,967,940  
   Interest income
     3,267,194  
          Total investment income
     235,062,910  
   Interest income on notes receivable from participants
     3,267,858  
         
TOTAL ADDITIONS
     449,092,746  
         
DEDUCTIONS:
        
   Benefits paid to participants
     (119,102,122 )
   Administrative and general expenses
     (5,324,678 )
         
TOTAL DEDUCTIONS
     (124,426,800 )
         
NET INCREASE IN NET ASSETS BEFORE TRANSFERS
     324,665,946  
         
TRUST TO TRUST TRANSFERS IN
     46,693,132  
         
NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS
     371,359,078  
         
NET ASSETS AVAILABLE FOR BENEFITS:
        
   Beginning of year
     1,918,870,008  
         
   End of year
   $ 2,290,229,086  
         
See notes to financial statements.
        

 
  3
 
 
AUTOMATIC DATA PROCESSING, INC.
RETIREMENT AND SAVINGS PLAN
 
NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 2010 AND 2009
AND FOR THE YEAR ENDED DECEMBER 31, 2010 

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 (“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 2009), 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 2010.  Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans (“rollover contributions”).  Unless the employee elects otherwise, any employee hired on or after January 8, 2007 shall be automatically enrolled as a participant 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, 2010 include $7,420,916 of rollover contributions.
 
 
Matching Employer Contributions—Effective January 1, 2009, 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.
 
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 UBS S&P 500 Index Fund, the BlackRock Russell 2000 Growth Fund (which was formerly known as the Barclays 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 Western Asset Institutional Government Reserves Fund is a money market fund.  The Artio International Equity - Institutional Fund is a mutual fund.  The JPMorgan U.S. Government Short-Term Investment Fund is a money market fund used to invest residual cash and is not participant directed.
 
Participants direct the investment of their contributions and matching employer contributions into the 15 various investment options offered by the Plan.  Effective January 1, 2009, 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.  Effective June 1, 2009, 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 November 15, 2010, the Cobalt Group, Inc. 401(k) Profit Sharing Plan merged into the Plan in connection with the acquisition of the Cobalt Group by the Company during the year ended December 31, 2010.  Transfers of $25,186,791 are included in Trust to Trust Transfers In in the accompanying Statement of Changes of Net Assets Available for Benefits.
 
Effective December 1, 2010, the Workscape Employee Retirement Savings Plan merged into the Plan in connection with the acquisition of Workscape, Inc. by the Company during the year ended December 31, 2010.  Transfers of $21,014,667 are included in Trust to Trust Transfers In in the accompanying Statement of Changes of 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, 2010 and 2009 amounted to $1,648,590 and $2,766,275, respectively.  For the year ended December 31, 2010, amounts used to pay administrative expenses amounted to $853,080, and the amount used to reduce employer contributions was $3,454,918.
 
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.


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/money market fund investments, including the Columbia Dividend Value Fund, Artio International Equity Fund - Institutional 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 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.
 
Payment of Benefits—Benefits payments to participants are recorded upon distribution.  At December 31, 2010 and 2009, amounts allocated to accounts of individuals who had elected to withdraw but had not yet been paid totaled $273,899 and $215,936, respectively.
 
Recently Issued Accounting Pronouncements—In January 2010, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2010-6, “Improving Disclosures about Fair Value Investments.”  ASU 2010-6 amends the disclosure requirements in Accounting Standards Codification (“ASC”) 820.10 “Fair Value Measurements and Disclosures,” which the Plan adopted on January 1, 2008, and requires 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.  Since the Plan adopted ASC 820.10, the Plan has not had any transfers in or out of Level 1 or Level 2.  ASU 2010-6 also clarifies existing disclosure requirements regarding the level of disaggregation expected, valuation techniques and inputs to fair value measurements.  ASU 2010-6 is effective for annual reporting periods beginning after December 15, 2009.  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 clarifies 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.  This guidance, which must be applied retrospectively, is effective for years ending after December 15, 2010.  The Plan adopted this guidance during the Plan year ended December  31, 2010.  The prior period amount has been reclassified in the accompanying financial statements to conform to the current presentation.  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.
 
 
 
4 
 
 
 
3.
INVESTMENTS
 
The investments of the Plan as of December 31, 2010 and 2009 are summarized as follows:
        
             
Investments, at fair value:
  
2010
    
2009
  
             
    Artio International Equity Fund - Institutional Fund
   $ 258,702,101 *   $ 236,597,001 *
    ADP Common Stock, 5,403,929 shares and 5,497,108 shares, respectively
     250,093,834 *     235,386,165 *
    Seix Intermediate Bond Fund
     238,379,734       221,713,266  
    Western Asset Institutional Government Reserves Fund
     212,068,291 *     220,131,628 *
    UBS S&P 500 Index Fund
     194,005,925 *     154,776,506 *
    Columbia Dividend Value Fund
     183,186,521       146,994,502  
    Montag & Caldwell Large Cap Growth Fund
     141,620,168       121,129,157  
    BlackRock Russell 2000 Growth Fund
    175,423,277 *     120,015,087 *
    JPMorgan SmartRetirement 2020 Fund
     132,637,228 *     99,519,652 *
    American Century Small Cap Value Fund
     126,466,222       87,629,024  
    JPMorgan SmartRetirement 2030 Fund
     112,292,164       77,709,658  
    JPMorgan SmartRetirement 2040 Fund
     77,325,268       48,508,786  
    JPMorgan SmartRetirement 2015 Fund
     60,524,198       45,703,785  
    JPMorgan SmartRetirement 2010 Fund
     29,146,496       26,189,881  
    JPMorgan SmartRetirement Income Fund
     26,453,188       20,589,254  
    JPMorgan U.S. Government Short-Term Investment Fund
     2,964,485       3,051,743  
    Fidelity Managed Income Portfolio
     635,897       -  
    Broadridge Company Stock, 117 shares
    2,566       2,639  
    Trusco Small Cap Growth Fund
     -       345  
Total Investments
   $ 2,221,927,563     $ 1,865,648,079  
                 
* 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, 2010, 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:
 
BlackRock Russell 2000 Growth Fund                                                                                      
   $ 37,215,935  
UBS S&P 500 Index Fund                                                                                     
     24,353,993  
American Century Small Cap Value Fund
     21,665,916  
ADP Stock Fund                                                                                     
     19,229,643  
Columbia Dividend Value Fund
     16,893,890  
JPMorgan SmartRetirement 2020 Fund                                                                                     
     17,024,798  
Artio International Equity – Institutional Fund                                                                                                
     15,707,823  
JPMorgan SmartRetirement 2030 Fund                                                                                     
     15,202,193  
JPMorgan SmartRetirement 2040 Fund                                                                                     
     10,324,757  
Montag & Caldwell Large Cap Growth Fund                                                                                     
     9,854,075  
JPMorgan SmartRetirement 2015 Fund                                                                                     
     7,468,614  
JPMorgan SmartRetirement 2010 Fund                                                                                     
     3,326,309  
JPMorgan SmartRetirement Income Fund                                                                                     
     2,643,828  
Trusco Small Cap Growth Fund
     2,049  
Western Asset Institutional Government Reserves Fund                                                                                                
     19,587  
Seix Intermediate Bond Fund                                                                           
      5,894,366  
         
Net appreciation in fair value of investments
   $ 206,827,776  


4.  FAIR VALUE MEASUREMENTS
 
On January 1, 2008, the Plan adopted ASC 820.10 for assets recognized or disclosed at fair value on a recurring basis.  The guidance in ASC 820.10 clarifies the definition of 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.
 
 
 
  5
 
4.  FAIR VALUE MEASUREMENTS (continued)
 
 
The following tables present the investments of the Plan measured at fair value at December 31, 2010 and 2009.  See Note 3 - “Investments” for additional disclosure related to investments.
 
 
   
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  
 
 

 
   
As of December 31, 2009
        
Asset Class
  
Level 1
    
Level 2
    
Total
  
                   
Equity Securities:
                  
   ADP Common Stock
   $ 236,927,685     $ -     $ 236,927,685  
   Consumer Goods
     89,136,521       258,300       89,394,821  
   Manufacturing and Industrial
     88,927,825       -       88,927,825  
   Telecommunications and Other Services
     55,680,146       134,775       55,814,921  
   Financial Services
     47,299,988       -       47,299,988  
   Energy
     31,755,787       -       31,755,787  
   Other
     27,139,931               27,139,931  
                         
Mutual Funds:
                        
  International Equity Securities
     236,597,001       -       236,597,001  
  U.S. Equity Securities
     6,742,774       -       6,742,774  
                         
Commingled Trusts
                        
  Targeted Date Retirement Funds
     -       318,221,016       318,221,016  
  S&P 500 Index Fund
     -       154,776,506       154,776,506  
  Growth Index Fund
     -       120,015,087       120,015,087  
                         
Money Markets
     -       247,985,279       247,985,279  
                         
Fixed Income Securities:
                        
   U.S. Government Securities
     -       117,335,712       117,335,712  
   AA Corporate Bonds
     -       26,129,861       26,129,861  
   A Corporate Bonds
     -       25,722,305       25,722,305  
   Mortgage-Backed Securities
     -       34,861,580       34,861,580  
                         
Total Investments
   $ 820,207,658     $ 1,045,440,421     $ 1,865,648,079  

 
 
6 
 
4.  FAIR VALUE MEASUREMENTS (continued)
 
 
The following table presents the investments of the Plan with a reported net asset value as of December 31, 2010 and December 31, 2009:
 
 
 
                 
   
December 31, 2010
    
December 31, 2009
  
Redemption
Redemption
   
Fair Value
    
Fair Value
  
Frequency
Notice Period
                 
UBS Standard & Poors 500 Index Fund (1)
   $ 194,005,924     $ 154,776,506  
 Daily
 Trade date + 1
BlackRock Russell 2000 Growth Index Fund (2)
     175,423,277       120,015,087  
 Daily
 Trade date + 1
JPMorgan SmartRetirement Income Fund (3)
     26,453,188       20,589,254  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2010 Fund (4)
     29,146,496       26,189,881  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2015 Fund (4)
     60,524,198       45,703,785  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2020 Fund (4)
     132,637,228       99,519,652  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2030 Fund (4)
     112,292,164       77,709,658  
 Daily
 Trade date + 1
JPMorgan SmartRetirement 2040 Fund (4)
     77,325,268       48,508,786  
 Daily
 Trade date + 1
Fidelity Managed Income Portfolio
     635,897       -  
 Daily
 Trade date + 1
Total
   $ 808,443,640     $ 593,012,609      
                     
(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, 2010 and 2009, the Plan held 5,439,929 and 5,533,108 shares, respectively, of Company Stock with a cost basis of $203,402,208 and $204,917,796, respectively.  For the year ended December 31, 2010, the Plan recorded dividend income in the amount of $7,597,532 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.
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 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, 2010, 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 2007.

 
7 
 
 
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, 2010
              
               
     
Number
    
Current
  
 
Description
  
of Shares
    
Value
  
               
ADP STOCK FUND
              
Common Stock
              
*AUTOMATIC DATA PROCESSING, INC. COMMON STK
Common Stock
     5,403,929     $ 250,093,834  
BROADRIDGE FINANCIAL SOLUTIONS COMMON STOCK
Common Stock
     117       2,566  
Total Common Stock
               250,096,400  
                   
Short-Term Investment Fund
                  
* J.P. Morgan U.S. Government Short-Term Investment Fund
Money Market
     2,964,485       2,964,485  
                   
TOTAL ADP STOCK FUND
             $ 253,060,885  
                   
AMERICAN CENTURY SMALL CAP VALUE FUND
                  
Common Stock
                  
AAR CORP COM STK
Common Stock
     11,800     $ 324,146  
ACTUANT CORP CLS 'A' COOM STK
Common Stock
     6,000       159,720  
ACUITY BRANDS INC COM STK
Common Stock
     3,400       196,078  
AEROPOSTALE INC COM STK
Common Stock
     15,700       386,848  
AEROVIRONMENT
Common Stock
     6,700       179,761  
ALASKA AIR GROUP INC COM STK
Common Stock
     5,300       300,457  
ALEXANDER & BALDWIN INC COM STK
Common Stock
     5,700       228,171  
ALLEGIANT TRAVEL COM STK
Common Stock
     3,900       192,036  
ALLIANCE HEALTHCARE SERVICES INC COM STK
Common Stock
     76,200       323,088  
ALLIANT TECHSYSTEMS INC COM STK
Common Stock
     5,700       424,251  
ALMOST FAMILY INC COM STK
Common Stock
     4,800       184,416  
ALPHA NATURAL RESOURCES CM STK
Common Stock
     3,300       198,099  
ALTERRA CAPITAL HLDGS LTD
Common Stock
     24,100       521,524  
ALTRA HOLDINGS INC COM STK
Common Stock
     20,700       411,102  
AMERICAN EAGLE OUTFITTER COM STK
Common Stock
     21,400       313,082  
AMERICAN EQUITY INVT LIFE HLDG CO COM ST
Common Stock
     15,100       189,505  
AMERICAN NATIONAL BANKSHARES COM STK
Common Stock
     9,400       221,370  
AMERIGROUP CORP COM STK
Common Stock
     4,900       215,208  
AMSURG CORP COM STK
Common Stock
     17,000       356,150  
ANALOGIC CORP COM STK
Common Stock
     3,187       157,788  
APOGEE ENTERPRISES INC COM STK
Common Stock
     15,000       202,050  
APOLLO INVESTMENT CORP COM STK
Common Stock
     48,800       540,216  
ARCH CHEMICALS INC COM STK
Common Stock
     4,300       163,099  
ARCTIC CAT INC COM STK
Common Stock
     16,100       235,704  
ARES CAPITAL CORP COM STK
Common Stock
     26,200       431,776  
ARKANSAS BEST CORP COM STK
Common Stock
     8,400       230,328  
ARTESIAN RESOURCES CORP CLASS 'A' COM STK
Common Stock
     14,600       276,670  
ARTIO GLOBAL INVESTORS INC
Common Stock
     34,000       501,500  
ASSISTED LIVING CONCEPTS INC CLASS 'A' COM
Common Stock
     7,200       234,216  
ASSOCIATED BANC-CORP COM STK
Common Stock
     24,500       371,175  
ATLANTIC TELE NETWORK INC COM STK
Common Stock
     9,650       369,981  
ATMOS ENERGY CORP COM STK
Common Stock
     7,800       243,360  
                   
             
(Continued)
  
 
8 
 
 
 

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, 2010
              
               
     
Number
    
Current
  
 
Description
  
of Shares
    
Value
  
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
              
Common Stock (Con't)
              
AVISTA CORP COM STK
Common Stock
     11,000     $ 247,720  
BALDWIN & LYONS INC CLASS 'B'
Common Stock
     11,000       258,830  
BALLY TECHNOLOGIES INC COM STK
Common Stock
     4,700       198,293  
BANCORPSOUTH INC COM
Common Stock
     17,100       272,745  
BARNES GROUP INC COM STK
Common Stock
     11,600       239,772  
BECKMAN COULTER INC COM STK
Common Stock
     1,458       109,685  
BEL FUSE INC CLASS 'B' SHS
Common Stock
     13,100       313,090  
BELDEN INC COM STK
Common Stock
     8,000       294,560  
BELO CORP CLASS 'A' COM STK
Common Stock
     62,500       442,500  
BENCHMARK ELECTRONICS INC COM STK
Common Stock
     15,600       283,296  
BERRY PETROLEUM CORP CLASS 'A' COM STK
Common Stock
     10,700       467,590  
BIG LOTS INC COM STK
Common Stock
     17,700       539,142  
BILL BARRETT CORP COM
Common Stock
     9,600       394,848  
BLACK HILLS CORP COM STK
Common Stock
     6,400       192,000  
BLUE COAT SYS INC
Common Stock
     7,900       235,973  
BOB EVANS FARMS INC COM STK
Common Stock
     7,300       240,608  
BOSTON PRIVATE FINANCIAL HLDGS INC COM
Common Stock
     58,700       384,485  
BRADY CORP 'A' NON.V
Common Stock
     15,800       515,238  
BRIGGS & STRATTON CORP COM STK
Common Stock
     9,600       189,024  
BRINK'S COMPANY BRINKS GROUP COM
Common Stock
     12,500       336,000  
BRINKER INTERNATIONAL COM STK
Common Stock
     24,100       503,208  
BRISTOW GROUP INC COM STK
Common Stock
     6,900       326,715  
BROOKLINE BANCORP
Common Stock
     17,400       188,790  
BROWN SHOE CO INC COM STK
Common Stock
     19,500       271,635  
BRUSH ENGINEERED MATERIALS INC COM STK
Common Stock
     4,100       158,424  
CABELAS INC COM STK
Common Stock
     11,600       252,300  
CACI  INTL INC CLASS A COM
Common Stock
     3,400       181,560  
CADENCE DESIGN SYSTEMS INC COM STK
Common Stock
     25,900       213,934  
CAL DIVE INTL INC DEL COM STK
Common Stock
     65,600       371,952  
CALAMOS ASSET MANAGEMENT INC COM STK
Common Stock
     22,000       308,000  
CAPITOL FEDERAL FINANCIAL INC
Common Stock
     17,617       209,813  
CASS INFORMATION SYSTEMS COM STK
Common Stock
     4,600       174,524  
CATO CORP CLASS 'A' COM STK
Common Stock
     5,500       150,755  
CDI CORP COM STK
Common Stock
     16,200       301,158  
CENTRAL VERMONT PUBLIC SERVICE CORP COM
Common Stock
     14,800       323,528  
CENTURY ALUMINIUM COM STK
Common Stock
     14,400       223,632  
CERADYNE INC COM STK
Common Stock
     6,000       189,180  
                   
             
(Continued)
  


 
9 
 



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, 2010
              
               
     
Number
    
Current
  
 
Description
  
of Shares
    
Value
  
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
              
Common Stock (Con't)
              
CHARMING SHOPPES INC COM STK
Common Stock
     47,911     $ 170,084  
CHEMED CORP CAP
Common Stock
     3,700       234,987  
CHESAPEAKE UTILITIES CORP COM STK
Common Stock
     7,000       290,640  
CHRISTOPHER & BANKS CORP COM STK
Common Stock
     49,900       306,885  
COUR D'ALENE MINECOM
Common Stock
     16,700       456,244  
COHERENT INC COM STK
Common Stock
     3,600       162,504  
COLDWATER CREEK COM STK
Common Stock
     65,400       207,318  
COLFAX CORP
Common Stock
     14,100       259,581  
COLLECTIVE BRANDS INC
Common Stock
     27,900       588,690  
COMFORT SYSTEMS USA COM STK
Common Stock
     14,800       194,916  
COMMERCIAL METALS CO COM STK
Common Stock
     17,200       285,348  
COMMUNITY BANK SYSTEMS NY COM STK
Common Stock
     6,900       191,613  
COMMUNITY HEALTH SYSTEMS INC(NEW) COM ST
Common Stock
     4,700       175,639  
COMPASS DIVERSIFIED HLDGS SHS OF BENEFIC INTEREST
Common Stock
     17,800       314,882  
COMPUWARE CORP COM STK
Common Stock
     15,900       185,553  
COOPER TIRE & RUBBER CO COM STK
Common Stock
     7,900       186,282  
CORE-MARK HLDG CO INC COM STK
Common Stock
     8,200       291,838  
CSS INDUSTRIES INC COM STK
Common Stock
     11,000       226,710  
CULLEN FROST BANKERS COM STK
Common Stock
     4,300       262,816  
CULP INC COM STK
Common Stock
     23,200       240,352  
CURTISS-WRIGHT CORP COM STK
Common Stock
     48,800       1,620,160  
CUTERA INC COM STK
Common Stock
     36,000       298,440  
CVB FINANCIAL NPV
Common Stock
     18,600       161,262  
CYMER INC COM STK
Common Stock
     6,200       279,434  
CYTEC INDUSTRIES INC COM STK
Common Stock
     3,900       206,934  
DANA HOLDING CORP
Common Stock
     30,300       521,463  
DG FASTCHANNEL INC COM STK
Common Stock
     11,200       323,456  
DHT HLDGS INC COM STK
Common Stock
     50,600       235,290  
DIANA SHIPPING INC COM STK
Common Stock
     35,100       421,902  
DOUGLAS DYNAMICS INC
Common Stock
     9,300       140,895  
DRESS BARN INC COM STK
Common Stock
     15,900       420,078  
DST SYSTEMS INC DELAWARE COM STK
Common Stock
     15,100       669,685  
DYNAMIC MATERIALS CORP COM STK
Common Stock
     15,600       352,092  
EAST WEST BANCORP INC COM STK
Common Stock
     9,000       175,950  
ELECTRO SCIENTIFIC INDUSTRIES INC COM ST
Common Stock
     27,900       447,237  
ELECTRONICS FOR IMAGING INC COM STK
Common Stock
     24,000       343,440  
EMCOR GROUP COM STK
Common Stock
     18,200       527,436  
EMULEX CORP COM STK
Common Stock
     14,500       169,070  
ENCORE WIRE CORP COM STK
Common Stock
     22,000       551,760  
                   
             
(Continued)
  


 
10
 


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, 2010
              
               
     
Number
    
Current
  
 
Description
  
of Shares
    
Value
  
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
              
Common Stock (Con't)
              
ENTERCOM COMMUNICATIONS COM STK
Common Stock
     14,444     $ 167,262  
ENTRAVISION COMMUNICATIONS CORP CLASS 'A'
Common Stock
     130,000       334,100  
ESTERLINE TECHNOLOGIES CORP COM STK
Common Stock
     3,700       253,783  
ETHAN ALLEN INTERIORS INC COM STK
Common Stock
     9,300       186,093  
FARMER BROS CO COM STK
Common Stock
     14,000       249,200  
FIFTH STREET FINANCE CORP
Common Stock
     19,400       235,516  
FINISH LINE IN CLASS 'A' COM STK
Common Stock
     19,000       326,610  
FIRST COMM'WTH FINL CORP PA COM STK
Common Stock
     20,800       147,264  
FIRST FINANCIAL HLDGS INC COM STK
Common Stock
     21,100       242,861  
FIRST FINANCIAL NORTHWEST INC COM STK
Common Stock
     39,600       158,796  
FIRST HORIZON NATIONAL CORP COM STK
Common Stock
     84,810       999,065  
FIRST INTERSTATE BANCSYSTEM INC
Common Stock
     13,500       205,740  
FIRST MIDWEST BANCORP COM STK
Common Stock
     26,200       301,824  
FIRST NIAGARA FINANCIAL GROUP INC COM
Common Stock
     32,600       455,748  
FIRST REPUBLIC BANK SAN FRANCISCO
Common Stock
     7,438       216,595  
FIRSTMERIT CORP COM STK
Common Stock
     23,800       471,002  
FLUSHING FINANCIAL CORP COM STK
Common Stock
     12,800       179,200  
FNB CORP PA COM STK
Common Stock
     33,500       328,970  
FOREST OIL CORP COM STK
Common Stock
     5,000       189,850  
FRED'S INC CLASS 'A' COM STK
Common Stock
     23,300       320,608  
FREIGHTCAR AMERICA INC COM STK
Common Stock
     4,700       136,018  
FRONTIER OIL CORP COM STK
Common Stock
     29,400       529,494  
FULLER (H.B.) CO COM STK
Common Stock
     12,600       258,552  
FULTON FINANCIAL CORP COM STK
Common Stock
     57,000       589,380  
FURNITURE BRANDS INTL INC COM STK
Common Stock
     56,400       289,896  
GANNETT CO INC COM STK
Common Stock
     42,300       638,307  
GATX CORP COM STK
Common Stock
     5,400       190,512  
GENCO SHIPPING & TRADING LIMITED COM STK
Common Stock
     22,100       318,240  
GENESCO INC COM STK
Common Stock
     12,800       479,872  
GEORGIA GULF CORP COM STK
Common Stock
     11,400       274,284  
GETTY REALTY CORP COM STK
Common Stock
     9,900       309,672  
GLATFELTER (P.H.) CO COM STK
Common Stock
     14,800       181,596  
GLOBAL INDUSTIRES COM STK
Common Stock
     27,200       188,496  
GOODRICH PETROLEUM CORPORATION COM STK
Common Stock
     16,500       291,060  
GRANITE CONSTRUCTION COM STK
Common Stock
     48,200       1,322,126  
GREAT PLAINS ENERGY INC COM STK NPV
Common Stock
     24,800       480,872  
GRIFFON CORP COM STK
Common Stock
     5,100       64,974  
GROUP 1 AUTOMOTIVE INC COM STK
Common Stock
     4,200       175,392  
HANOVER INSURANCE GROUP INC COM STK
Common Stock
     7,500       350,400  
                   
             
(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, 2010
              
               
     
Number
    
Current
  
 
Description
  
of Shares
    
Value
  
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
              
Common Stock (Con't)
              
HARTE-HANKS INC COM STK
Common Stock
     15,300     $ 195,381  
HAYNES INTERNATIONAL INC COM STK
Common Stock
     4,800       200,784  
HCC INSURANCE HLDG COM STK
Common Stock
     51,700       1,496,198  
HEALTH MANAGEMENT ASSOCIATES INC CLASS A
Common Stock
     25,200       240,408  
HECLA MINING CO COM STK
Common Stock
     47,400       533,724  
HEIDRICK & STRUGGLES COM STK
Common Stock
     13,000       372,450  
HELEN OF TROY COM STK
Common Stock
     6,200       184,388  
HELIX ENERGY SOLUTIONS GROUP INC COM STK
Common Stock
     23,300       282,862  
HERCULES TECHNOLOGY GROWTH CAP INC COM S
Common Stock
     24,500       253,820  
HERITAGE FINANCIAL CORP COM STK
Common Stock
     22,200       309,024  
HFF INC COM STK
Common Stock
     23,400       226,044  
HOT TOPIC INC COM STK
Common Stock
     26,800       168,036  
HUBBELL INC CLASS 'B'
Common Stock
     5,000       300,650  
HUGOTON ROYALTY TR UNITS OF BEN INTEREST
Common Stock
     9,500       194,940  
IBERIABANK CORP COM STK
Common Stock
     5,500       325,215  
ICU MEDICAL INC COM STK
Common Stock
     6,000       219,000  
IDACORP INC COM STK
Common Stock
     4,500       166,410  
IESI-BFC LTD
Common Stock
     13,700       332,910  
IMPAX LABORATORIES INC COM STK
Common Stock
     17,100       343,881  
INTEGRATED DEVICE TECHNOLOGY INC COM STK
Common Stock
     53,700       357,642  
INTERNAP NETWOEK SERVICES COM STK
Common Stock
     45,400       276,032  
INTERSIL CORP CLASS 'A' COM STK
Common Stock
     21,100       322,197  
INTREPID POTASH INC
Common Stock
     5,400       201,366  
INVESTMENT TECHNOLOGY GROUP COM STK
Common Stock
     14,600       239,002  
JACK IN THE BOX INC COM STK
Common Stock
     14,200       300,046  
JETBLUE AIRWAYS CORP COM STK
Common Stock
     64,000       423,040  
JOURNAL COMMUNICATIONS INC COM STK
Common Stock
     48,900       246,945  
KAISER ALUMINUM CORP COM STK
Common Stock
     3,700       185,333  
KAISER FEDERAL FINANCIAL GROUP INC
Common Stock
     17,999       208,428  
KAMAN CORP
Common Stock
     8,900       258,723  
KEY ENERGY SERVICES INC COM STK
Common Stock
     30,100       390,698  
KFORCE INC COM STK
Common Stock
     16,600       268,588  
KINDRED HEALTHCARE INC COM STK
Common Stock
     11,500       211,255  
KNIGHT CAPITAL GROUP INC CLASS A COM ST
Common Stock
     14,600       201,334  
KNOLOGY INC COM STK
Common Stock
     18,000       281,340  
KORN-FERRY INTERNATIONAL COM STK
Common Stock
     19,300       446,023  
LAKELAND FINANCIAL CORP COM STK
Common Stock
     13,000       278,980  
LAWSON PRODUCTS INC COM STK
Common Stock
     14,200       353,438  
LAWSON SOFTWARE INC COM STK
Common Stock
     18,400       170,200  
                   
             
(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, 2010
              
               
     
Number
    
Current
  
 
Description
  
of Shares
    
Value
  
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
              
Common Stock (Con't)
              
LIFEPOINT HOSPITALS INC COM STK
Common Stock
     5,700     $ 209,475  
LIN TV CORP COM STK
Common Stock
     82,600       437,780  
LINCOLN ELECTRIC HLDS INC COM STK
Common Stock
     4,400       287,188  
LITTELFUSE INC COM STK
Common Stock
     4,700       221,182  
LSI INDUSTRIES COM STK
Common Stock
     32,100       271,566  
MARSHALL & ILSLEY CORP NEW COM STK
Common Stock
     46,600       322,472  
MARTIN MARIETTA MATERIALS INC COM STK
Common Stock
     2,100       193,704  
MB FINANCIAL INC COM STK
Common Stock
     10,700       185,324  
MCG CAPITAL CORP COM STK
Common Stock
     27,500       191,675  
MDC HLDGS INC COM STK
Common Stock
     8,000       230,160  
MDU RESOURCES GROUP INC COM STK
Common Stock
     30,800       624,316  
MEDICIS PHARMACEUTICAL CORP CLASS A COM
Common Stock
     11,100       297,369  
MENS WEARHOUSE INC COM STK
Common Stock
     11,000       274,780  
MERCER INSURANCE GROP INC COM STK
Common Stock
     19,800       554,202  
METHODE ELECTRONICS INC COM CLASS 'A'
Common Stock
     18,500       239,945  
MISTRAS GROUP INC
Common Stock
     26,800       361,264  
MKS INSTRUMENTS INC COM STK
Common Stock
     6,300       154,287  
MOLEX INC COM STK
Common Stock
     12,200       277,184  
MOOG INC CLASS 'A' (LIM.V)
Common Stock
     9,200       366,160  
MOTRICITY INC
Common Stock
     1,400       25,998  
MUELLER INDUSTRIES INC COM STK
Common Stock
     23,600       771,720  
MUELLER WATER PRODUCTS INC COM STK
Common Stock
     85,100       354,867  
NATIONAL BANKSHARES INC COM STK
Common Stock
     6,700       210,983  
NATIONAL HEALTH CARE CORP COM STK
Common Stock
     16,984       785,850  
NATIONAL SEMICONDUCTOR CORP COM STK
Common Stock
     19,800       272,448  
NCR CORP COM STK
Common Stock
     11,500       176,755  
NETGEAR INC COM STK
Common Stock
     5,500       185,240  
NEUSTAR INC-CLASS COM STK
Common Stock
     9,900       257,895  
NEW YORK & CO INC COM STK
Common Stock
     47,400       209,508  
NORDIC AMERICAN TANKER SHIPPING
Common Stock
     25,500       663,510  
NORTH AMERICAN ENERGY PARTNERS COM NPV
Common Stock
     19,700       241,522  
NORTHWESTERN CORPORATION COM STK
Common Stock
     7,100       204,693  
NOVATEL WIRELESS INC
Common Stock
     6,200       59,210  
OLD DOMINION FREIGHT LINE INC COM STK
Common Stock
     6,000       191,940  
OLD NATIONAL BANCORP (INDIANA) COM STK
Common Stock
     25,100       298,439  
OLIN CORP COM STK
Common Stock
     8,300       170,316  
OM GROUP INC COM STK
Common Stock
     7,800       300,378  
ORBITAL SCIENCES COM STK
Common Stock
     10,800       185,004  
ORIENT EXPRESS HOTELS LTD CLS A COM STK
Common Stock
     16,400       213,036  
                   
             
(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, 2010
              
               
     
Number
    
Current
  
 
Description
  
of Shares
    
Value
  
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
              
Common Stock (Con't)
              
ORITANI FINANCIAL CORP (NEW)
Common Stock
     17,600     $ 215,424  
OSHKOSH CORPORATION
Common Stock
     7,500       264,300  
OVERSEAS SHIPHOLDING GROUP INC COM STK
Common Stock
     27,400       970,508  
OWENS & MINOR INC COM STK
Common Stock
     18,100       532,683  
PACIFIC CONTINETAL CORP COM STK
Common Stock
     18,400       185,104  
PARAMETRIC TECHNOLOGY CORP NEW COM STK
Common Stock
     21,100       475,383  
PARK ELECTROCHEMICAL CORP COM STK
Common Stock
     11,500       345,000  
PARK STERLING BANK COM STK
Common Stock
     49,100       302,456  
PC CONNECTION COM STK
Common Stock
     17,400       154,164  
PENN VIRGINIA CORP COM STK
Common Stock
     31,100       523,102  
PENNANTPARK INVESTMENT CORP COM STK
Common Stock
     24,900       304,776  
PENSKE AUTOMOTIVE GROUP INC COM STK
Common Stock
     11,100       193,362  
PEP BOYS MANNY MOE & JACK COM STK
Common Stock
     11,700       157,131  
PETROLEUM DEVELOPMENT COM STK
Common Stock
     6,600       278,586  
PHARMACEUTICAL PRODUCT DEVELOPMENT COM S
Common Stock
     11,600       314,824  
PIEDMONT OFFICE REALTY TRUST INC CLS A
Common Stock
     12,500       251,750  
PIKE ELECTRIC CORPORATION COM STK
Common Stock
     43,600       374,088  
PIPER JAFFRAY COMPANIES COM STK
Common Stock
     10,600       371,106  
PLATINUM UNDERWRITERS HLDGS LTD
Common Stock
     8,600       386,742  
PLEXUS CORP COM STK
Common Stock
     18,700       578,578  
PMI GROUP INC COM STK
Common Stock
     38,500       127,050  
POLYCOM INC COM STK
Common Stock
     4,600       179,308  
PORTLAND GENERAL ELECTRIC CO COM
Common Stock
     32,900       713,930  
PRESTIGE BRANDS HLDGS INC COM STK
Common Stock
     21,100       252,145  
PRIMO WATER CORP
Common Stock
     15,800       224,518  
PROASSURANCE CORP COM STK
Common Stock
     5,100       309,060  
PROSPECT CAPITAL CORP COM STK
Common Stock
     15,800       170,640  
PROVIDENT FINANCIAL SERVICES INC COM STK
Common Stock
     23,500       355,555  
PZENA INVESTMENT MANAGEMENT, INC COM STK
Common Stock
     9,500       69,825  
QUEST SOFTWARE INC COM STK
Common Stock
     33,200       920,968  
RADIAN GROUP INC COM STK
Common Stock
     39,000       314,730  
RADIOSHACK CORP COM STK
Common Stock
     29,800       551,002  
RALCORP HOLDINGS INC COM STK
Common Stock
     7,600       494,076  
RED ROBIN GOURMET BURGERS INC COM STK
Common Stock
     15,700       337,079  
REGAL BELOIT CORP COM STK
Common Stock
     3,200       213,632  
REGIS CORP COM STK
Common Stock
     9,900       164,340  
RENT-A-CENTER INC COM STK
Common Stock
     5,800       187,224  
ROBBINS & MYERS INC COM
Common Stock
     9,700       347,066  
ROGERS CORP CAP STK
Common Stock
     9,400       359,550  
                   
             
(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, 2010
              
               
     
Number
    
Current
  
 
Description
  
of Shares
    
Value
  
               
AMERICAN CENTURY SMALL CAP VALUE FUND (Con't)
              
Common Stock (Con't)
              
ROSETTA RESOURCES INC COM STK
Common Stock
     5,100     $ 191,964  
ROWAN COS INC COM STK
Common Stock
     4,900       171,059  
ROYAL GOLD INC COM STK
Common Stock
     3,300       180,279  
RTI INTERNATIONAL METALS INC COM STK
Common Stock
     6,000       161,880  
RUBY TUESDAY INC COM
Common Stock
     9,900       129,294  
RUDDICK CORP COM STK
Common Stock
     4,100       151,044  
SANDRIDGE ENERGY INC COM STK
Common Stock
     37,400       273,768  
SCHNITZER STEEL COM STK
Common Stock
     3,100       205,809  
SCHULMAN (A.) INC COM STK
Common Stock
     8,700       199,143  
SCRIPPS (EW) CO NEW CLASS 'A' COM STK
Common Stock
     67,900       707,455  
SENECA FOODS CLASS 'A' COM STK
Common Stock
     10,000       269,800  
SENSIENT TECHNOLOGIES CORP COM STK
Common Stock
     6,800       249,764  
SIGMA DESIGNS INC COM STK
Common Stock
     31,700       449,189  
SILGAN HLDGS INC COM STK
Common Stock
     9,600       343,776  
SIMPSON MFG CO INC COM STK
Common Stock
     5,200       160,732  
SKYWEST INC COM STK
Common Stock
     9,400       146,828  
SONOCO PRODUCTS CO COM STK
Common Stock
     12,600       424,242  
STAGE STORES INC COM STK
Common Stock
     11,100       192,474  
STANDARD MICROSYSTEMS CORP COM STK
Common Stock
     13,900       400,737  
STANDARD MOTOR PRODUCTS INC COM STK
Common Stock
     19,500       267,150  
STERLING BANCSHARES INC COM STK
Common Stock
     55,400       388,908  
SUN HEALTHCARE GROUP INC
Common Stock
     9,300       117,742  
SUPERIOR ENERGY SERVICES INC COM STK
Common Stock
     5,400       188,946  
SWIFT ENERGY CO COM STK
Common Stock
     13,400       524,610  
SYKES ENTERPRISES INC COM STK
Common Stock
     26,300       532,838  
SYNOPSYS INC COM STK
Common Stock
     6,200       166,842  
SYNOVUS FINANCIAL CORP COM STK
Common Stock
     72,900