| BASIS OF PRESENTATION |
NOTE 1. BASIS OF
PRESENTATION
A.
Description of Business. Broadridge Financial Solutions, Inc.
(“Broadridge®”
or the “Company”), a Delaware corporation, is a leading
global provider of investor communication solutions and securities
processing and operations outsourcing solutions to the financial
services industry. The Company classifies its continuing operations
into the following two reportable segments:
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Investor Communication Solutions—A large portion
of Broadridge’s Investor Communication Solutions business
involves the processing and distribution of proxy materials to
investors in equity securities and mutual funds, as well as the
facilitation of related vote processing. ProxyEdge®,
its innovative electronic proxy delivery and voting solution for
institutional investors, helps ensure the participation of the
largest stockholders of many companies. Broadridge also provides
the distribution of regulatory reports and corporate
action/reorganization event information, as well as tax reporting
solutions that help its clients meet their regulatory compliance
needs. In addition, Broadridge provides financial information
distribution and transaction reporting services to both financial
institutions and securities issuers. These services include the
processing and distribution of account statements and trade
confirmations, traditional and personalized document fulfillment
and content management services, marketing communications, and
imaging, archival and workflow solutions that enable and enhance
its clients’ communications with investors. All of these
communications are delivered in paper or electronic form. In fiscal
year 2010, Broadridge entered the transfer agency business through
its acquisition of StockTrans®,
Inc. (renamed Broadridge Corporate Issuer Solutions, Inc.), a
provider of registrar, stock transfer and record-keeping services.
In August 2010, Broadridge acquired NewRiver®,
Inc., a leader in mutual fund electronic investor disclosure
solutions. In December 2010, Broadridge acquired
Forefield®,
Inc., a leading provider of real-time sales, education, and client
communication solutions for financial institutions and their
advisors. In January 2011, Broadridge acquired Matrix Financial
Solutions, Inc., an independent provider of mutual fund processing
solutions for the defined contribution market.
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Securities Processing Solutions—Broadridge offers
a suite of advanced computerized real-time transaction processing
services that automate the securities transaction lifecycle, from
desktop productivity tools, data aggregation, performance
reporting, and portfolio management to order capture and execution,
trade confirmation, settlement, and accounting. Broadridge’s
services help financial institutions efficiently and
cost-effectively consolidate their books and records, gather and
service assets under management, focus on their core businesses,
and manage risk. With multi-currency capabilities, its Global
Processing Solution supports real-time global trading of equity,
option, mutual fund and fixed income securities in established and
emerging markets. In addition, its operations outsourcing solutions
allow broker-dealers to outsource certain administrative functions
relating to clearing and settlement, from order entry to trade
matching and settlement, while maintaining their ability to finance
and capitalize their businesses. In June 2010, the Company acquired
City Networks Ltd, a leading software and services provider of
reconciliation, multi-asset process automation and operational risk
management solutions to the global financial services industry. In
September 2011, Broadridge acquired Paladyne Systems, Inc., a
provider of buy-side technology solutions for the global investment
management industry.
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B. Basis of
Presentation. The Consolidated Financial Statements have been
prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”).
These financial statements present the consolidated position of the
Company. These financial statements include the entities in which
the Company directly or indirectly has a controlling financial
interest and various entities in which the Company has investments
recorded under both the cost and equity methods of accounting.
Intercompany balances and transactions have been
eliminated.
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