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  "documentTitle": "Automatic Data Processing (ADP) (ADP)",
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  "authorName": "William Ackman",
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  "presentationDate": "2017-08-17 00:00:00",
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  "notes": "The slide uses a stacked bar chart to decompose gross bookings into three components: Employer Services, PEO Net Bookings, and PEO Pass-Through Bookings, highlighting the increasing share of pass-throughs.",
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      "kind": "callout",
      "text": "We estimate that pass-throughs embedded in gross bookings have increased materially (from ~27% to ~37% of gross bookings) given the PEO's growth, inflating bookings growth by ~200bps p.a.",
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      "text": "Estimated Employer Services vs. PEO Bookings ($m)",
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      "text": "ADP reports worldwide new business bookings by consolidating Employer Service and PEO bookings(2), which should be reported and analyzed separately",
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      "text": "bookings growth: 200bps",
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      "kind": "source-note",
      "text": "(1) Note that ADP does not break out the amount of PEO pass-through cost included in bookings... (2) ADP financial press releases reference... (3) PEO bookings assumes ~80% retention...",
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      "kind": "title",
      "text": "PEO Pass-Through Costs Overstate Net “Economic” Bookings and Mask Bookings Weakness in ES(1)",
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