Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — ADP EDS webinar: Big Savings, Big Impacts, Big Opportunities (March 2012)
29 slides from Automatic Data Processing's conference presentation, Mar 29, 2012
Slide 1: Big Savings, Big Impacts, Big Opportunities
Big Savings, Big Impacts, Big Opportunities Incentives can save you up to 10% on your capital costs
Slide 2: Housekeeping
Housekeeping This is one of a number of complimentary webinars that ADP offers to Finance and HR professionals each year Today’s webinar will last for 60 minutes, ending at 2 pm Eastern The last 10 minutes of today’s program have been reserved for Q&A A .pdf copy of today’s slides is availab
Slide 3: CPE Credit
CPE Credit Are you planning to apply for CPE and/or RCH credits for attending today’s webinar? A. CPE Credit Only D. No B. RCH Credit Only E. Not Applicable C. Both CPE & RCH Credits NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements fo
Slide 4: About ADP
About ADP Over 570,000 clients worldwide Pays 1 out of 6 in the U.S. 33M worldwide Founded in 1949 Went public in 1961 45,000 Associates Revenues of approximately $10 Billion In 60+ Countries Market capitalization of >$23 Billion 1 of 4 AAA Rated U.S. Industrial Companies Electronically ‘moving’
Slide 5: Today's Panel
Today’s Panel Jane Orlin Richard Eads ADP, Inc. ADP, Inc. 5 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 6: Agenda
Agenda Negotiated incentives overview Federal, State, & Local Case studies of successful companies 6 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 7: Polling Question #1
Polling Question #1 How effectively is your company leveraging credit and incentive opportunities? A. We have aggressively secured significant credits and incentives over the years. B. We have taken advantage of the ‘low-hanging fruit’, but do not make a practice of seeking out all opportunities.
Slide 8: Polling Question #2
Polling Question #2 Who is responsible for identifying and securing credits/ incentives? A. We have an ad-hoc team comprised of various individuals (e.g. tax, real estate, operations, etc.) that meet periodically to review and discuss potential opportunities. B. Our tax department pursues tax cred
Slide 9: The Role of Incentives
The Role of Incentives Incentives are a Differentiator Incentives will not make a BAD deal GOOD; but can make a good deal BETTER! 9 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 10: Types of Credits and Incentives
Types of Credits and Incentives Statutory vs. Discretionary Incentives Training Grants Other (e.g. sales tax exemptions) 10 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 11: State Programs
State Programs Discretionary Grants Job Creation Grants/Credits Payroll- and Withholding-based Rebates Investment-based Grant and Credits Training Credits / Grants Sales & Use Tax Credits / Rebates Research & Development Tax Credits 11 © Copyright 2012 ADP, Inc. Proprietary and Confide
Slide 12: Local Programs
Local Programs Property Tax Abatements TIF Districts / Community Development Block Grants Bond Financing Infrastructure Grants / Loans Fee Waivers Expedited Permitting Free / Subsidized Land or Building Green / LEED Certified Buildings Utility Incentives 12 © Copyright 2012 ADP, In
Slide 13: Federal Programs
Federal Programs Work Opportunity Tax Credit / Welfare to Work Tax Credit Federal Empowerment Zone / Federal Indian Employment Credit 13 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 14: Incentive Triggers: Real Estate Driven
Incentive Triggers Real Estate Driven: New Site Selection and Start-Up Relocation of Facilities / Operations Consolidations and Closures Mergers and Acquisitions New Capital Investments Lease Renewals, New Leases Building Acquisitions Facility / Technology Upgrades 14 © Copyright 201
Slide 15: Incentive Triggers: Employment Driven
Incentive Triggers Employment Driven: Changes in Employment – Employee Hires – Turnovers and Relocations – Contract to Permanent – Increases and/or Decreases Training of Employees 15 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 16: Incentive Triggers: Tax and Legislative
Incentive Triggers Tax and Legislative: Enactment of New Incentive Programs at National/State/Local Levels Statutory and/or Administrative Changes to Existing Incentive Programs and/or Changes in Availability of Incentive Funds Changes in “zone” boundaries Changes in Federal/State/Local Poli
Slide 17: Who Needs to Be Involved?
Who Needs to Be Involved? Partnership – Need to work in partnership with others to identify and leverage incentive opportunities Integration – A successful incentive negotiation project demands coordination and cooperation from various corporate functions (i.e. operations, tax, gov’t relations,
Slide 18: Negotiated Incentives Roadmap
Negotiated Incentives Roadmap Research & benchmarking Æ what’s available and what has been done for similar projects? Set goals / boundaries Æ what is the project scope (i.e. capital investment, job creation/retention, timing, etc.) Identify negotiating team Æ who is controlling the message?
Slide 19: Polling Question #3
Polling Question #3 How does your company currently handle incentive compliance? A. All credit and incentive compliance is centralized in one department. B. Each local plant/office/facility is responsible for any credits/incentives attributable to that location. C. Tax credit compliance is handled
Slide 20: Timing is Everything
Timing is Everything Most significant incentive opportunities no longer available if not already negotiated Incentive Opportunity Potential Savings t / ent t o je c g ision e m ojec ion Project r P nni n Dec roval ounc r P cut Timeline P l a Ap p A nn Exe The Key to a Successful Incentives Project i
Slide 21: Case Studies
Case Studies 21 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 22: Expansion Project
Expansion Project Project Parameters: Areas Under Consideration: SC, OK, NE Project Location: Columbia, SC Type of Project: Expansion of existing location Capital Investment: $2 Million Impact on Employment: Addition of 300 jobs Challenges: Maintained existing location Top priority to
Slide 23: Retention Project
Retention Project Project Parameters: Location: Upstate New York Project Type: Relocation within same county. Scope of Project: 120,000 square feet Impact on Employment: 300+ existing jobs Challenges: Had to relocate to a new facility within a fixed geographic area due to state contract re
Slide 24: Consolidation Project
Consolidation Project Project Parameters: Location: Tennessee Project Type: Consolidation of multiple out-of-state mfg. operations Scope of Project: $200+ million investment Impact on Employment: approx. 150 retained; 300 new Challenges: Limited time to evaluate multiple states Project s
Slide 25: Words for the Wise
Words for the Wise Do your research – know what to ask for Discretionary incentives must be negotiated before a project becomes “public” Understand the “costs” and “benefits” of pursuing specific discretionary incentives. “Costs” can include time, efforts, public perception, etc. Develop a m
Slide 26: Q&A
Q&A 26 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 27: Thank You for Joining Us Today
Thank You for Joining Us Today For information on any of the ADP products or services referenced during today’s webinar: Phone 800-CALL-ADP or visit www.adp.com For a complete listing of ADP webinars and webinar recordings, go to: adp.com | tools & resources | events | webinars 27 © Copyright 20
Slide 28: Please Tell Us How We're Doing
Please Tell Us How We’re Doing Your input will be used to improve and plan future webinars ADP is committed to assisting businesses with increased compliance requirements resulting from rapidly changing legislation. Our goal is to help minimize your administrative burden so that you can focus on run
Slide 29: Thank You for Attending
Thank You for Attending. 29 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.