Item 1. Financial Statements

Automatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Earnings

(In millions, except per share amounts)

(Unaudited)

			Three Months Ended												Nine Months Ended
			March 31,												March 31,
			2025						2024						2025						2024
REVENUES:
Revenues, other than interest on funds held for clients and PEO revenues			$	3,412.6					$	3,270.3					$	9,534.6					$	9,011.7
Interest on funds held for clients			355.2						320.8						881.3						747.9
PEO revenues (A)			1,785.2						1,662.7						5,018.2						4,674.5
TOTAL REVENUES			5,553.0						5,253.8						15,434.1						14,434.1
EXPENSES:
Costs of revenues:
Operating expenses			2,534.7						2,406.5						7,196.6						6,777.4
Research and development			247.1						242.7						719.2						707.8
Depreciation and amortization			122.4						119.0						364.6						359.9
TOTAL COSTS OF REVENUES			2,904.2						2,768.2						8,280.4						7,845.1
Selling, general, and administrative expenses			1,015.8						940.9						2,948.6						2,743.6
Interest expense			74.8						62.7						342.2						259.2
TOTAL EXPENSES			3,994.8						3,771.8						11,571.2						10,847.9
Other income, net			(63.7)						(64.3)						(256.5)						(196.8)
EARNINGS BEFORE INCOME TAXES			1,621.9						1,546.3						4,119.4						3,783.0
Provision for income taxes			372.4						361.4						950.4						860.3
NET EARNINGS			$	1,249.5					$	1,184.9					$	3,169.0					$	2,922.7
BASIC EARNINGS PER SHARE			$	3.07					$	2.89					$	7.78					$	7.11
DILUTED EARNINGS PER SHARE			$	3.06					$	2.88					$	7.75					$	7.07
Basic weighted average shares outstanding			406.9						410.5						407.5						411.1
Diluted weighted average shares outstanding			408.5						412.1						409.1						413.6

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $20,293.3 million and $18,339.6 million for the three months ended March 31, 2025 and 2024, respectively, and $56,907.7 million and $52,713.4 million for the nine months ended March 31, 2025 and 2024, respectively.

See notes to the Consolidated Financial Statements.

Automatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Comprehensive Income

(In millions)

(Unaudited)

			Three Months Ended												Nine Months Ended
			March 31,												March 31,
			2025						2024						2025						2024
Net earnings			$	1,249.5					$	1,184.9					$	3,169.0					$	2,922.7
Other comprehensive income/(loss):
Currency translation adjustments			45.3						(37.4)						(6.5)						(28.1)
Unrealized net gains/(losses) on available-for-sale securities			386.2						(91.0)						826.9						618.8
Tax effect			(87.5)						19.1						(191.2)						(145.7)
Reclassification of realized net losses on available-for-sale securities to net earnings			0.1						1.2						0.8						5.2
Tax effect			—						(0.2)						(0.1)						(1.1)
Unrealized loss on cash flow hedging activities			(4.7)						—						(17.2)						—
Tax effect			1.2						—						4.3						—
Amortization of unrealized losses on cash flow hedging activities			1.4						1.1						4.0						3.3
Tax effect			(0.3)						(0.3)						(1.0)						(0.8)
Reclassification of pension liability adjustment to net earnings			1.2						1.0						3.0						2.9
Tax effect			(0.2)						(0.2)						(0.7)						(0.6)
Other comprehensive income/(loss), net of tax			342.7						(106.7)						622.3						453.9
Comprehensive income			$	1,592.2					$	1,078.2					$	3,791.3					$	3,376.6

See notes to the Consolidated Financial Statements.

Automatic Data Processing, Inc. and Subsidiaries

Consolidated Balance Sheets

(In millions, except per share amounts)

(Unaudited)

						March 31,						June 30,
						2025						2024
Assets
Current assets:
Cash and cash equivalents						$	2,680.6					$	2,913.4
Accounts receivable, net of allowance for doubtful accounts of $48.2 and $52.2, respectively						3,547.9						3,428.2
Other current assets						933.1						1,204.8
Total current assets before funds held for clients						7,161.6						7,546.4
Funds held for clients						39,375.2						37,996.1
Total current assets						46,536.8						45,542.5
Long-term receivables, net of allowance for doubtful accounts of $0.2 and $0.1, respectively						5.1						7.3
Property, plant and equipment, net						670.4						685.6
Operating lease right-of-use asset						335.6						370.6
Deferred contract costs						2,996.3						2,965.0
Other assets						999.9						1,102.1
Goodwill						3,300.2						2,353.6
Intangible assets, net						1,604.3						1,336.0
Total assets						$	56,448.6					$	54,362.7
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable						$	146.3					$	100.6
Accrued expenses and other current liabilities						2,977.2						3,349.0
Accrued payroll and payroll-related expenses						732.1						958.7
Dividends payable						620.7						566.4
Short-term deferred revenues						241.3						199.8
Obligations under reverse repurchase agreements (A)						—						385.4
Short-term debt						1,000.7						1.1
Income taxes payable						63.9						15.1
Total current liabilities before client funds obligations						5,782.2						5,576.1
Client funds obligations						40,063.2						39,503.9
Total current liabilities						45,845.4						45,080.0
Long-term debt						2,982.5						2,991.3
Operating lease liabilities						283.2						328.6
Other liabilities						991.2						990.8
Deferred income taxes						129.1						64.3
Long-term deferred revenues						361.9						360.1
Total liabilities						50,593.3						49,815.1
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock, $1.00 par value: authorized, 0.3 shares; issued, none						—						—
Common stock, $0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at March 31, 2025 and June 30, 2024; outstanding, 406.3 and 408.1 shares at March 31, 2025 and June 30, 2024, respectively						63.9						63.9
Capital in excess of par value						2,720.8						2,406.9
Retained earnings						24,956.6						23,622.2
Treasury stock - at cost: 232.4 and 230.6 shares at March 31, 2025 and June 30, 2024, respectively						(20,700.0)						(19,737.1)
Accumulated other comprehensive loss						(1,186.0)						(1,808.3)
Total stockholders’ equity						5,855.3						4,547.6
Total liabilities and stockholders’ equity						$	56,448.6					$	54,362.7

(A) As of June 30, 2024, $384.0 million of short-term marketable securities and $1.4 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements (see Note 10).

See notes to the Consolidated Financial Statements.

A****utomatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Cash Flows

(In millions)

(Unaudited)

						Nine Months Ended
						March 31,
						2025						2024
Cash Flows from Operating Activities:
Net earnings						$	3,169.0					$	2,922.7
Adjustments to reconcile net earnings to cash flows provided by operating activities:
Depreciation and amortization						436.7						426.2
Amortization of deferred contract costs						852.0						795.0
Deferred income taxes						17.2						(4.4)
Stock-based compensation expense						202.5						188.7
Bad debt expense						40.2						38.5
Net pension income						(14.8)						(17.4)
Net accretion of discounts and amortization of premiums on available-for-sale securities						(49.8)						(29.2)
Other						10.8						(5.4)
Changes in operating assets and liabilities:
Increase in accounts receivable						(138.7)						(496.2)
Increase in deferred contract costs						(890.8)						(865.9)
Increase in other assets						(154.9)						(225.7)
Increase/(decrease) in accounts payable						42.0						(9.1)
Increase/(decrease) in accrued expenses and other liabilities						(20.9)						139.2
Net cash flows provided by operating activities						3,500.5						2,857.0
Cash Flows from Investing Activities:
Purchases of corporate and client funds marketable securities						(5,656.4)						(4,365.7)
Proceeds from the sales and maturities of corporate and client funds marketable securities						3,782.9						3,624.6
Capital expenditures						(134.6)						(153.7)
Additions to intangibles						(276.8)						(263.2)
Acquisitions of businesses, net of cash acquired						(1,165.1)						(33.6)
Proceeds from sale of property, plant, and equipment and other assets						3.3						28.3
Other						(11.5)						(8.5)
Net cash flows used in investing activities						(3,458.2)						(1,171.8)
Cash Flows from Financing Activities:
Net increase in client funds obligations						634.4						10,999.6
Net cash (distributed)/received from the Internal Revenue Service						(549.2)						1,132.0
Payments of debt						(0.9)						(0.7)
Proceeds from the issuance of debt						988.9						—
Settlement of cash flow hedges						(12.5)						—
Repurchases of common stock						(956.5)						(796.2)
Net proceeds from stock purchase plan and stock-based compensation plans						98.7						24.6
Dividends paid						(1,773.1)						(1,608.0)
Net proceeds related to reverse repurchase agreements						(346.2)						(67.5)
Net cash flows (used in)/provided by financing activities						(1,916.4)						9,683.8
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents						(12.7)						(15.7)
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents						(1,886.8)						11,353.3
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period						10,086.0						8,771.5
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period						$	8,199.2					$	20,124.8
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents						$	2,680.6					$	3,291.7
Restricted cash and restricted cash equivalents included in funds held for clients (A)						5,518.6						16,833.1
Total cash, cash equivalents, restricted cash, and restricted cash equivalents						$	8,199.2					$	20,124.8
Supplemental disclosures of cash flow information:
Cash paid for interest						$	339.9					$	260.9
Cash paid for income taxes, net of income tax refunds						$	836.9					$	806.1

(A) See Note 7 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets.

See notes to the Consolidated Financial Statements.

Automatic Data Processing, Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

(Tabular dollars in millions, except per share amounts or where otherwise stated)

(Unaudited)

Note 1. Basis of Presentation

The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Consolidated Financial Statements and footnotes thereto are unaudited. In the opinion of the Company’s management, the Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, that are necessary for a fair presentation of the Company’s interim financial results.

The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees. The Company is the sole beneficial owner of the trust. The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”). The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and, therefore, consolidates the trust. Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 7, “Corporate Investments and Funds Held for Clients.”

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, expenses, and accumulated other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Interim financial results are not necessarily indicative of financial results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 (“fiscal 2024”). Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's presentation.

Note 2. New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

None.

Recently Issued Accounting Pronouncements

Standard			Description			Effective Date			Effect on Financial Statements or Other Significant Matters
ASU 2024-03 Disaggregation of Income Statement Expenses (Subtopic 220-40)			This update improves financial reporting by requiring enhanced disclosures of the expense captions in the Income Statement within the Notes to the financial statements.			June 30, 2028 (fiscal 2028)			The Company is assessing this guidance. The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows.
ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures			This update enhances the transparency and decision usefulness of income tax disclosures to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows.			June 30, 2026 (fiscal 2026)			The Company is assessing this guidance. The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows.
ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures			This update improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and certain quantitative disclosures.			June 30, 2025 (fiscal 2025)			The Company is assessing this guidance. The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows.

Note 3. Revenue

Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three business pillars: Human Capital Management (“HCM”), HR Outsourcing (“HRO”), and Global Solutions (“Global”), with separate disaggregation for PEO zero-margin benefits pass-through revenues and client funds interest revenues. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors.

The following tables provide details of revenue by our business pillars, and include a reconciliation to the Company’s reportable segments:

			Three Months Ended												Nine Months Ended
			March 31,												March 31,
Types of Revenues			2025						2024						2025						2024
HCM			$	2,392.3					$	2,278.8					$	6,549.6					$	6,168.3
HRO, excluding PEO zero-margin benefits pass-throughs			1,063.6						988.1						2,872.1						2,688.5
PEO zero-margin benefits pass-throughs			1,090.0						1,016.3						3,194.4						2,963.7
Global			651.9						649.8						1,936.7						1,865.7
Interest on funds held for clients			355.2						320.8						881.3						747.9
Total Revenues			$	5,553.0					$	5,253.8					$	15,434.1					$	14,434.1

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2025:

Types of Revenues			Employer Services						PEO						Other						Total
HCM			$	2,395.1					$	—					$	(2.8)					$	2,392.3
HRO, excluding PEO zero-margin benefits pass-throughs			369.0						695.2						(0.6)						1,063.6
PEO zero-margin benefits pass-throughs			—						1,090.0						—						1,090.0
Global			651.9						—						—						651.9
Interest on funds held for clients			351.9						3.3						—						355.2
Total Segment Revenues			$	3,767.9					$	1,788.5					$	(3.4)					$	5,553.0

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2024:

Types of Revenues			Employer Services						PEO						Other						Total
HCM			$	2,280.8					$	—					$	(2.0)					$	2,278.8
HRO, excluding PEO zero-margin benefits pass-throughs			342.2						646.4						(0.5)						988.1
PEO zero-margin benefits pass-throughs			—						1,016.3						—						1,016.3
Global			649.8						—						—						649.8
Interest on funds held for clients			317.9						2.9						—						320.8
Total Segment Revenues			$	3,590.7					$	1,665.6					$	(2.5)					$	5,253.8

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2025:

Types of Revenues			Employer Services						PEO						Other						Total
HCM			$	6,557.1					$	—					$	(7.5)					$	6,549.6
HRO, excluding PEO zero-margin benefits pass-throughs			1,050.4						1,823.8						(2.1)						2,872.1
PEO zero-margin benefits pass-throughs			—						3,194.4						—						3,194.4
Global			1,936.7						—						—						1,936.7
Interest on funds held for clients			873.2						8.1						—						881.3
Total Segment Revenues			$	10,417.4					$	5,026.3					$	(9.6)					$	15,434.1

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2024:

Types of Revenues			Employer Services						PEO						Other						Total
HCM			$	6,174.8					$	—					$	(6.5)					$	6,168.3
HRO, excluding PEO zero-margin benefits pass-throughs			980.7						1,710.7						(2.9)						2,688.5
PEO zero-margin benefits pass-throughs			—						2,963.7						—						2,963.7
Global			1,865.7						—						—						1,865.7
Interest on funds held for clients			741.1						6.8						—						747.9
Total Segment Revenues			$	9,762.3					$	4,681.2					$	(9.4)					$	14,434.1

Contract Balances

The timing of revenue recognition for HCM, HRO and Global is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.

Changes in deferred revenues related to set up fees for the nine months ended March 31, 2025 were as follows:

Contract Liability
Contract liability, July 1, 2024			$	491.6
Recognition of revenue included in beginning of year contract liability			(102.4)
Contract liability, net of revenue recognized on contracts during the period			103.7
Currency translation adjustments			(0.7)
Contract liability, March 31, 2025			$	492.2

Note 4. Acquisition

In October 2024, the Company acquired WorkForce Software, a premier workforce management solutions provider that specializes in supporting large, global enterprises, utilizing cash on hand. The results of WorkForce Software are reported within the Company’s Employer Services segment. Pro forma information has not been presented because the effect of the acquisition is not material to the Company's consolidated financial results.

The following table reconciles the purchase price to the cash paid for the acquisition, net of cash acquired:

Purchase price			$	1,170.8
Less: cash acquired			(12.5)
Cash paid for acquisition of business, net of cash acquired			$	1,158.3

The preliminary allocation of the purchase price is based upon estimates and assumptions that are subject to change within the measurement period, which is one year from the acquisition date. The primary areas of the purchase price allocation that are not yet finalized relate to the measurement of certain assets and liabilities, including identifiable intangible assets. Accordingly, the measurement period for such purchase price allocations will end when the information becomes available but will not exceed twelve months from the date of acquisition.

The acquisition was accounted for using the acquisition method of accounting. The Company recognized assets acquired and liabilities assumed at their fair value as of the date of acquisition, with the excess recorded to goodwill. The preliminary purchase price allocation for WorkForce Software is as follows:

Cash			$	12.5
Accounts receivable, net of allowance for doubtful accounts			20.0
Identifiable intangible assets (1)			292.0
Goodwill			940.8
All other assets			18.5
Total assets acquired			$	1,283.8
Deferred revenue			$	39.6
Deferred income taxes			12.8
All other liabilities			60.6
Total liabilities assumed			$	113.0
Total net assets acquired			$	1,170.8

(1) Intangible assets are recorded at estimated fair value, as determined by management based on available information which includes an estimated valuation by an independent third-party. The fair values assigned to identifiable intangible assets were determined through the use of the income approach, specifically the relief from royalty and the multi-period excess earnings methods. The major assumptions used in arriving at the estimated identifiable intangible asset values included management’s estimates of future cash flows, discounted at an appropriate rate of return which are based on the weighted average cost of capital for both the Company and other market participants, projected customer attrition rates, as well as applicable royalty rates for comparable assets. The useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to the future cash flows. The estimated fair value of intangible assets and related useful lives as included in the estimated purchase price allocation include:

			Estimated Fair Value						Estimated Useful Life (in years)
Technology			$	115.0					7
Customer/Partner relationships			$	170.0					8
Tradename			$	7.0					4

The goodwill recorded as a result of the WorkForce Software transaction represents future economic benefits the Company expects to achieve as a result of the acquisition, including expected synergies along with the value of the assembled workforce. None of the goodwill resulting from the acquisition is tax deductible.

Note 5. Earnings per Share (“EPS”)

						Basic						Effect of Employee Stock Option Shares						Effect of Employee Restricted Stock Shares						Diluted
Three Months Ended March 31, 2025
Net earnings						$	1,249.5																	$	1,249.5
Weighted average shares (in millions)						406.9						0.6						1.0						408.5
EPS						$	3.07																	$	3.06
Three Months Ended March 31, 2024
Net earnings						$	1,184.9																	$	1,184.9
Weighted average shares (in millions)						410.5						0.7						0.9						412.1
EPS						$	2.89																	$	2.88
Nine Months Ended March 31, 2025
Net earnings						$	3,169.0																	$	3,169.0
Weighted average shares (in millions)						407.5						0.7						0.9						409.1
EPS						$	7.78																	$	7.75
Nine Months Ended March 31, 2024
Net earnings						$	2,922.7																	$	2,922.7
Weighted average shares (in millions)						411.1						0.8						1.7						413.6
EPS						$	7.11																	$	7.07

For the three and nine months ended March 31, 2025 and 2024, there were no stock options excluded from the calculation of diluted earnings per share due to anti-dilution.

Note 6. Other (Income)/Expense, Net

			Three Months Ended												Nine Months Ended
			March 31,												March 31,
			2025						2024						2025						2024
Interest income on corporate funds			$	(55.9)					$	(55.9)					$	(231.5)					$	(159.3)
Realized losses on available-for-sale securities, net			0.1						1.2						0.8						5.2
Gain on sale of assets			—						(1.2)						(2.4)						(17.1)
Non-service components of pension income, net (see Note 12)			(7.9)						(8.4)						(23.4)						(25.6)
Other income, net			$	(63.7)					$	(64.3)					$	(256.5)					$	(196.8)

Note 7. Corporate Investments and Funds Held for Clients

Corporate investments and funds held for clients at March 31, 2025 and June 30, 2024 were as follows:

			March 31, 2025
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses												Fair Market Value (A)
Type of issue:
Money market securities, cash and other cash equivalents			$	8,199.2					$	—					$	—											$	8,199.2
Available-for-sale securities:
Corporate bonds			17,602.6						56.3						(536.7)												17,122.2
U.S. Treasury securities			8,494.6						56.1						(62.5)												8,488.2
Canadian government obligations and Canadian government agency obligations			2,167.1						21.1						(37.0)												2,151.2
U.S. government agency securities			1,588.4						2.0						(91.8)												1,498.6
Asset-backed securities			1,788.1						15.2						(21.1)												1,782.2
Canadian provincial bonds			1,131.8						14.6						(31.6)												1,114.8
Commercial mortgage-backed securities			467.2						0.4						(22.0)												445.6
Other securities			1,304.8						2.5						(53.5)												1,253.8
Total available-for-sale securities			34,544.6						168.2						(856.2)												33,856.6
Total corporate investments and funds held for clients			$	42,743.8					$	168.2					$	(856.2)											$	42,055.8

(A) Included within available-for-sale securities are funds held for clients with fair values of $33,856.6 million. There are no corporate investments included within available-for-sale securities at March 31, 2025. All available-for-sale securities were included in Level 2 of the fair value hierarchy.

			June 30, 2024
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Market Value (B)
Type of issue:
Money market securities, cash and other cash equivalents			$	10,086.0					$	—					$	—					$	10,086.0
Available-for-sale securities:
Corporate bonds			16,833.3						11.5						(944.8)						15,900.0
U.S. Treasury securities			7,701.2						9.0						(164.5)						7,545.7
Canadian government obligations and Canadian government agency obligations			2,130.7						1.7						(86.6)						2,045.8
U.S. government agency securities			1,645.0						0.5						(140.6)						1,504.9
Asset-backed securities			1,394.9						3.9						(43.0)						1,355.8
Canadian provincial bonds			1,116.3						2.3						(56.2)						1,062.4
Commercial mortgage-backed securities			535.9						—						(35.1)						500.8
Other securities			1,366.0						2.0						(75.9)						1,292.1
Total available-for-sale securities			32,723.3						30.9						(1,546.7)						31,207.5
Total corporate investments and funds held for clients			$	42,809.3					$	30.9					$	(1,546.7)					$	41,293.5

(B) Included within available-for-sale securities are corporate investments with fair values of $384.0 million and funds held for clients with fair values of $30,823.5 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.

For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2024. The Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company had no available-for-sale securities included in Level 1 or Level 3 at March 31, 2025.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of March 31, 2025, are as follows:

			March 31, 2025
			Securities in Unrealized Loss Position Less Than 12 Months												Securities in Unrealized Loss Position Greater Than 12 Months												Total
			Gross Unrealized Losses						Fair Market Value						Gross Unrealized Losses						Fair Market Value						Gross Unrealized Losses						Fair Market Value
Corporate bonds			$	(18.9)					$	1,724.1					$	(517.8)					$	11,020.7					$	(536.7)					$	12,744.8
U.S. Treasury securities			(4.0)						1,004.4						(58.5)						2,780.4						(62.5)						3,784.8
Canadian government obligations and Canadian government agency obligations			(0.1)						19.9						(36.9)						1,115.6						(37.0)						1,135.5
U.S. government agency securities			(0.1)						22.9						(91.7)						1,304.1						(91.8)						1,327.0
Asset-backed securities			(1.3)						230.8						(19.8)						530.9						(21.1)						761.7
Canadian provincial bonds			(1.4)						68.6						(30.2)						599.1						(31.6)						667.7
Commercial mortgage-backed securities			(0.1)						4.0						(21.9)						419.5						(22.0)						423.5
Other securities			(3.2)						314.6						(50.3)						733.5						(53.5)						1,048.1
			$	(29.1)					$	3,389.3					$	(827.1)					$	18,503.8					$	(856.2)					$	21,893.1

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2024, are as follows:

			June 30, 2024
			Securities in Unrealized Loss Position Less Than 12 Months												Securities in Unrealized Loss Position Greater Than 12 Months												Total
			Gross Unrealized Losses						Fair Market Value						Gross Unrealized Losses						Fair Market Value						Gross Unrealized Losses						Fair Market Value
Corporate bonds			$	(25.8)					$	2,173.6					$	(919.0)					$	12,413.4					$	(944.8)					$	14,587.0
U.S. Treasury securities			(23.1)						2,186.2						(141.4)						4,076.9						(164.5)						6,263.1
Canadian government obligations and Canadian government agency obligations			(0.9)						304.6						(85.7)						1,591.6						(86.6)						1,896.2
U.S. government agency securities			(0.7)						51.5						(139.9)						1,428.2						(140.6)						1,479.7
Asset-backed securities			(2.3)						351.4						(40.7)						668.0						(43.0)						1,019.4
Canadian provincial bonds			(1.3)						193.0						(54.9)						717.4						(56.2)						910.4
Commercial mortgage-backed securities			(0.5)						11.2						(34.6)						489.6						(35.1)						500.8
Other securities			(12.2)						288.5						(63.7)						864.8						(75.9)						1,153.3
			$	(66.8)					$	5,560.0					$	(1,479.9)					$	22,249.9					$	(1,546.7)					$	27,809.9

At March 31, 2025, corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carrying credit ratings of A and above, and have maturities ranging from April 2025 through March 2035.

At March 31, 2025, asset-backed securities include AAA-rated senior tranches of securities with predominantly prime collateral of fixed-rate auto loan, credit card, and equipment lease receivables with fair values of $816.0 million, $536.1 million, and $211.8 million, respectively. These securities are collateralized by the cash flows of the underlying pools of receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through March 31, 2025.

At March 31, 2025, U.S. government agency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $965.9 million and $486.8 million, respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's, and AA+ by Standard & Poor's, with maturities ranging from April 2025 through August 2034.

At March 31, 2025, U.S. government agency commercial mortgage-backed securities, with fair values of $445.6 million, include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.

At March 31, 2025, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair values of $532.1 million, AA-rated United Kingdom Gilt securities of $330.7 million, and AAA-rated supranational bonds of $227.7 million.

Classification of corporate investments on the Consolidated Balance Sheets is as follows:

						March 31,						June 30,
						2025						2024
Corporate investments:
Cash and cash equivalents						$	2,680.6					$	2,913.4
Short-term marketable securities (a)						—						384.0
Long-term marketable securities (b)						—						—
Total corporate investments						$	2,680.6					$	3,297.4

(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets.

(b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets.

Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets.

Funds held for clients have been invested in the following categories:

						March 31,						June 30,
						2025						2024
Funds held for clients:
Restricted cash and cash equivalents held to satisfy client funds obligations						$	5,518.6					$	7,172.6
Restricted short-term marketable securities held to satisfy client funds obligations						8,454.4						5,538.1
Restricted long-term marketable securities held to satisfy client funds obligations						25,402.2						25,285.4
Total funds held for clients						$	39,375.2					$	37,996.1

Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax, and other payee payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling $40,063.2 million and $39,503.9 million at March 31, 2025 and June 30, 2024, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purpose of satisfying the client funds obligations. Of the Company’s funds held for clients at March 31, 2025 and June 30, 2024, $35,394.9 million and $34,940.0 million, respectively, are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and are eliminated in consolidation.

The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows. The Company has reported the cash and cash equivalents related to client funds investments with original maturities of ninety days or less, within the beginning and ending balances of cash, cash equivalents, restricted cash, and restricted cash equivalents. The Company has reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase / (decrease) in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows.

All available-for-sale securities were rated as investment grade at March 31, 2025.

Expected maturities of available-for-sale securities at March 31, 2025 are as follows:

One year or less			$	8,454.4
One year to two years			6,522.9
Two years to three years			4,144.1
Three years to four years			5,217.7
After four years			9,517.5
Total available-for-sale securities			$	33,856.6

Note 8. Leases

The Company records leases on the Consolidated Balance Sheets as operating lease right-of-use (“ROU”) assets, records the current portion of operating lease liabilities within accrued expenses and other current liabilities and, separately, records long-term operating lease liabilities. The difference between total ROU assets and total lease liabilities is primarily attributable to prepayments of our obligations and the recognition of various lease incentives.

The Company has entered into operating lease agreements for facilities and equipment. The Company's leases have remaining lease terms of up to approximately eleven years.

The components of operating lease expense were as follows:

			Three Months Ended												Nine Months Ended
			March 31,												March 31,
			2025						2024						2025						2024
Operating lease cost			$	27.4					$	29.4					$	82.3					$	95.6
Short-term lease cost			0.3						0.3						0.8						1.1
Variable lease cost			4.6						4.7						15.8						12.8
Total operating lease cost			$	32.3					$	34.4					$	98.9					$	109.5

The following table provides supplemental cash flow information related to the Company's leases:

			Nine Months Ended
			March 31,
			2025						2024
Cash paid for operating lease liabilities			$	95.4					$	95.6
Operating lease ROU assets obtained in exchange for new operating lease liabilities			$	44.5					$	54.2

Other information related to our operating lease liabilities is as follows:

			March 31,						June 30,
			2025						2024
Weighted-average remaining lease term (in years)			5						5
Weighted-average discount rate			3.4		%				3.3		%
Current operating lease liability			$	100.3					$	92.2

As of March 31, 2025, maturities of operating lease liabilities are as follows:

Three months ending June 30, 2025			$	28.4
Twelve months ending June 30, 2026			103.4
Twelve months ending June 30, 2027			89.5
Twelve months ending June 30, 2028			67.5
Twelve months ending June 30, 2029			45.0
Thereafter			83.7
Total undiscounted lease obligations			417.5
Less: Imputed interest			(34.0)
Net lease obligations			$	383.5

Note 9. Goodwill and Intangible Assets, net

Changes in goodwill for the nine months ended March 31, 2025 are as follows:

			Employer Services						PEO Services												Total
Balance at June 30, 2024			$	2,348.8					$	4.8											$	2,353.6
Additions and other adjustments			947.3						—												947.3
Currency translation adjustments			(0.7)						—												(0.7)
Balance at March 31, 2025			$	3,295.4					$	4.8											$	3,300.2

Components of intangible assets, net, are as follows:

						March 31,						June 30,
						2025						2024
Intangible assets:
Software and software licenses						$	4,042.7					$	3,803.7
Customer contracts and lists						1,394.8						1,181.6
Other intangibles						249.5						242.0
						5,687.0						5,227.3
Less accumulated amortization:
Software and software licenses						(2,762.8)						(2,642.6)
Customer contracts and lists						(1,076.7)						(1,007.6)
Other intangibles						(243.2)						(241.1)
						(4,082.7)						(3,891.3)
Intangible assets, net						$	1,604.3					$	1,336.0

Other intangibles consist primarily of purchased rights, trademarks and trade names (acquired directly or through acquisitions). All intangible assets have finite lives and, as such, are subject to amortization. The weighted average remaining useful life of the intangible assets is 6 years (6 years for software and software licenses, 5 years for customer contracts and lists, and 4 years for other intangibles). Amortization of intangible assets was $96.3 million and $94.9 million for the three months ended March 31, 2025 and 2024, respectively, and $286.0 million and $285.1 million for the nine months ended March 31, 2025 and 2024, respectively.

Estimated future amortization expenses of the Company's existing intangible assets are as follows:

			Amount
Three months ending June 30, 2025			$	124.7
Twelve months ending June 30, 2026			$	396.6
Twelve months ending June 30, 2027			$	255.4
Twelve months ending June 30, 2028			$	213.6
Twelve months ending June 30, 2029			$	183.0
Twelve months ending June 30, 2030			$	142.1

Note 10. Short-term Financing

The Company has a $4.55 billion, 364-day credit agreement that matures in June 2025 with a one year term-out option. The Company also has a $2.25 billion, five year credit facility that matures in June 2028 that contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. In addition, the Company also has a five year, $3.5 billion credit facility maturing in June 2029 that contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. The interest rate applicable to committed borrowings is tied to SOFR, the effective federal funds rate, or the prime rate depending on the notification provided by the Company to the syndicated financial institutions prior to borrowing. The Company is also required to pay facility fees on the credit agreements. The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary. The Company had no borrowings through March 31, 2025 under the credit agreements.

The Company's U.S. short-term funding requirements related to client funds are sometimes obtained on an unsecured basis through the issuance of commercial paper, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. This commercial paper program provides for the issuance of up to $10.3 billion in aggregate maturity value. The Company’s commercial paper program is rated A-1+ by Standard & Poor’s, Prime-1 (“P-1”) by Moody’s and F1+ by Fitch. These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from overnight to up to 364 days. At March 31, 2025 and June 30, 2024, the Company had no commercial paper borrowing outstanding. Details of the borrowings under the commercial paper program are as follows:

			Three Months Ended												Nine Months Ended
			March 31,												March 31,
			2025						2024						2025						2024
Average daily borrowings (in billions)			$	3.3					$	2.7					$	4.2					$	3.6
Weighted average interest rates			4.4		%				5.4		%				4.9		%				5.3		%
Weighted average maturity (approximately in days)			2 days						2 days						2 days						2 days

The Company’s U.S., Canadian and United Kingdom short-term funding requirements related to client funds obligations are sometimes obtained on a secured basis through the use of reverse repurchase agreements, which are collateralized principally by government and government agency securities, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. These agreements generally have terms ranging from overnight to up to five business days. At March 31, 2025, the Company had no outstanding obligations related to reverse repurchase agreements. At June 30, 2024, the Company had $385.4 million of outstanding obligations related to reverse repurchase agreements which were fully paid in early July 2024. As of March 31, 2025, the Company has $7.3 billion available on a committed basis under the U.S. reverse repurchase agreements. Details of the reverse repurchase agreements are as follows:

			Three Months Ended												Nine Months Ended
			March 31,												March 31,
			2025						2024						2025						2024
Average outstanding balances (in billions)			$	0.9					$	0.6					$	2.8					$	1.5
Weighted average interest rates			4.1		%				5.4		%				4.9		%				5.4		%

Note 11. Debt

The Company issued four series of fixed-rate notes with staggered maturities of 7 and 10 years totaling $4.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually.

During the first quarter ended September 30, 2024, the Company issued $1.0 billion of senior notes due in 2034 bearing a fixed interest rate of 4.450%. In connection with the senior notes issuance, the Company terminated several derivative contracts in place to hedge exposure in changes in benchmark interest rates for the senior notes issued with an aggregate notional amount totaling $1.0 billion (of which $400.0 million were executed during the first quarter ended September 30, 2024 and $600.0 million were executed on the day of issuance). Since these derivative contracts were classified as cash flow hedges, the unamortized loss of $12.5 million was deferred in accumulated other comprehensive income and will be amortized to earnings over the life of the issued Notes as the interest payments are made.

The principal amounts and associated effective interest rates of the Notes and other debt as of March 31, 2025 and June 30, 2024, are as follows:

Debt instrument						Effective Interest Rate						March 31, 2025						June 30, 2024
Fixed-rate 3.375% notes due September 15, 2025						3.47%						$	1,000.0					$	1,000.0
Fixed-rate 1.700% notes due May 15, 2028						1.85%						1,000.0						1,000.0
Fixed-rate 1.250% notes due September 1, 2030						1.83%						1,000.0						1,000.0
Fixed-rate 4.450% notes due September 9, 2034						4.75%						1,000.0						—
Other												3.2						4.1
												4,003.2						3,004.1
Less: current portion												(1,000.7)						(1.1)
Less: unamortized discount and debt issuance costs												(20.0)						(11.7)
Total long-term debt												$	2,982.5					$	2,991.3

The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs.

As of March 31, 2025, the fair value of the Notes, based on Level 2 inputs, was $3,739.8 million. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2024.

In anticipation of the refinancing of our fixed-rate 3.375% notes due September 15, 2025, the Company entered into a series of treasury rate lock transactions from January 16, 2025 through April 24, 2025, with an aggregate notional amount totaling $400.0 million, of which $300.0 million were entered into during the third quarter ended March 31, 2025, $50.0 million entered into on April 2, 2025 and $50.0 million entered into on April 24, 2025, to hedge its exposure to changes in interest rates through the completion of the refinancing. The derivative contracts entered into during the fiscal year ended June 30, 2025 have been designated as cash-flow hedges and will be terminated upon completion of the refinancing. Changes in the derivatives’ fair value are recorded each period in other comprehensive income with a corresponding current asset or liability and, upon settlement, the aggregate amount in accumulated other comprehensive income will be amortized into net income over the term of the future debt instrument. Refer to Note 16 for the impact to accumulated other comprehensive income. There are no cash flows associated with the derivatives until settlement occurs with the counter-parties. The treasury rate lock derivatives are classified as Level 2 in the fair value hierarchy as their value is determined using observable inputs such as forward treasury rates.

Note 12. Employee Benefit Plans

A. Stock-based Compensation Plans

The Company's share-based compensation consists of stock options, time-based restricted stock, time-based restricted stock units, performance-based restricted stock, and performance-based restricted stock units. The Company also offers an employee stock purchase plan for eligible employees. Beginning in September 2022, the Company discontinued granting stock options, time-based restricted stock and performance-based restricted stock. Any such future awards will be grants of time-based restricted stock units and/or performance-based restricted stock units, depending on employee eligibility. Time-based restricted

stock unit awards and performance-based restricted stock unit awards granted to employees with a home country of the United States are settled in stock, and for awards granted to employees with a home country outside the United States are generally settled in cash.

The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock units. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. The Company repurchased 1.0 million and 1.2 million shares in the three months ended March 31, 2025 and 2024, respectively, and repurchased 3.4 million and 3.3 million shares in the nine months ended March 31, 2025 and 2024, respectively. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions.

The following table represents pre-tax stock-based compensation expense for the three and nine months ended March 31, 2025 and 2024, respectively:

			Three Months Ended												Nine Months Ended
			March 31,												March 31,
			2025						2024						2025						2024
Operating expenses			$	9.0					$	7.8					$	27.3					$	22.6
Selling, general and administrative expenses			45.5						39.2						147.4						139.6
Research and development			8.3						9.3						27.8						26.5
Total stock-based compensation expense			$	62.8					$	56.3					$	202.5					$	188.7

B. Pension Plans

The components of net pension income were as follows:

			Three Months Ended																		Nine Months Ended
			March 31,																		March 31,
			2025						2024																		2025						2024
Service cost – benefits earned during the period			$	1.5					$	1.3																	$	4.5					$	3.9
Interest cost on projected benefits			21.8						21.2																		65.5						63.4
Expected return on plan assets			(29.0)						(29.0)																		(87.0)						(86.9)
Net amortization and deferral			0.7						0.7																		2.2						2.2
Net pension income			$	(5.0)					$	(5.8)																	$	(14.8)					$	(17.4)

Note 13. Income Taxes

The effective tax rate for the three months ended March 31, 2025 and 2024 was 23.0% and 23.4%, respectively. The decrease in the effective tax rate is primarily due to a benefit for a decrease in uncertain tax position activity and a higher excess tax benefit on stock-based compensation in the three months ended March 31, 2025, partially offset by the benefits of an intercompany transfer of certain assets in the three months ended March 31, 2024.

The effective tax rate for the nine months ended March 31, 2025 and 2024 was 23.1% and 22.7%, respectively. The increase in the effective tax rate is primarily due to a benefit for adjustments to prior year tax liabilities and a valuation allowance release in the nine months ended March 31, 2024.

Note 14. Commitments and Contingencies

In May 2020, a putative class action complaint was filed against ADP, TotalSource and related defendants in the U.S. District Court, District of New Jersey. The complaint asserts violations of the Employee Retirement Income Security Act of 1974 (“ERISA”) in connection with the ADP TotalSource Retirement Savings Plan’s fiduciary administrative and investment decision-making. The complaint seeks statutory and other unspecified monetary damages, injunctive relief and attorney’s fees. The Company is unable to estimate any reasonably possible loss, or range of loss, with respect to this matter. The Company is vigorously defending against this lawsuit.

The Company is subject to various claims, litigation, and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. Management currently believes that the resolution of these claims, litigation and regulatory compliance matters against us, individually or in the aggregate, will not have a material adverse impact on our consolidated results of operations, financial condition or cash flows. These matters are subject to inherent uncertainties and management's view of these matters may change in the future.

It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material losses related to such representations and warranties.

Note 15. Stockholders' Equity

Changes in stockholders' equity by component are as follows:

			Three Months Ended
			March 31, 2025
			Common Stock						Capital in Excess of Par Value						Retained Earnings						Treasury Stock						AOCI						Total
Balance at December 31, 2024			$	63.9					$	2,619.6					$	24,335.6					$	(20,412.3)					$	(1,528.7)					$	5,078.1
Net earnings			—						—						1,249.5						—						—						1,249.5
Other comprehensive income			—						—						—						—						342.7						342.7
Stock-based compensation expense			—						54.3						—						—						—						54.3
Issuances relating to stock compensation plans			—						46.9						—						13.6						—						60.5
Treasury stock acquired (1.0 million shares repurchased)			—						—						—						(301.3)						—						(301.3)
Dividends declared ($1.54 per share)			—						—						(628.5)						—						—						(628.5)
Balance at March 31, 2025			$	63.9					$	2,720.8					$	24,956.6					$	(20,700.0)					$	(1,186.0)					$	5,855.3

			Three Months Ended
			March 31, 2024
			Common Stock						Capital in Excess of Par Value						Retained Earnings						Treasury Stock						AOCI						Total
Balance at December 31, 2023			$	63.9					$	2,262.9					$	22,757.1					$	(19,019.1)					$	(1,745.2)					$	4,319.6
Net earnings			—						—						1,184.9						—						—						1,184.9
Other comprehensive loss			—						—						—						—						(106.7)						(106.7)
Stock-based compensation expense			—						48.6						—						—						—						48.6
Issuances relating to stock compensation plans			—						42.5						—						15.0						—						57.5
Treasury stock acquired (1.2 million shares repurchased)			—						—						—						(301.3)						—						(301.3)
Dividends declared ($1.40 per share)			—						—						(575.9)						—						—						(575.9)
Balance at March 31, 2024			$	63.9					$	2,354.0					$	23,366.1					$	(19,305.4)					$	(1,851.9)					$	4,626.7

			Nine Months Ended
			March 31, 2025
			Common Stock						Capital in Excess of Par Value						Retained Earnings						Treasury Stock						AOCI						Total
Balance at June 30, 2024			$	63.9					$	2,406.9					$	23,622.2					$	(19,737.1)					$	(1,808.3)					$	4,547.6
Net earnings			—						—						3,169.0						—						—						3,169.0
Other comprehensive income			—						—						—						—						622.3						622.3
Stock-based compensation expense			—						179.3						—						—						—						179.3
Issuances relating to stock compensation plans			—						134.6						—						69.8						—						204.4
Treasury stock acquired (3.4 million shares repurchased)			—						—						—						(1,032.7)						—						(1,032.7)
Dividends declared ($4.48 per share)			—						—						(1,834.6)						—						—						(1,834.6)
Balance at March 31, 2025			$	63.9					$	2,720.8					$	24,956.6					$	(20,700.0)					$	(1,186.0)					$	5,855.3

			Nine Months Ended
			March 31, 2024
			Common Stock						Capital in Excess of Par Value						Retained Earnings						Treasury Stock						AOCI						Total
Balance at June 30, 2023			$	63.9					$	2,102.3					$	22,118.0					$	(18,469.3)					$	(2,305.8)					$	3,509.1
Net earnings			—						—						2,922.7						—						—						2,922.7
Other comprehensive income			—						—						—						—						453.9						453.9
Stock-based compensation expense			—						170.4						—						—						—						170.4
Issuances relating to stock compensation plans			—						81.3						—						64.7						—						146.0
Treasury stock acquired (3.3 million shares repurchased)			—						—						—						(900.8)						—						(900.8)
Dividends declared ($4.05 per share)			—						—						(1,674.6)						—						—						(1,674.6)
Balance at March 31, 2024			$	63.9					$	2,354.0					$	23,366.1					$	(19,305.4)					$	(1,851.9)					$	4,626.7

Note 16. Reclassifications out of Accumulated Other Comprehensive Income/(Loss) (“AOCI”)

Changes in AOCI by component are as follows:

			Three Months Ended
			March 31, 2025
			Currency Translation Adjustment						Net Gains/Losses on Available-for-sale Securities						Cash Flow Hedging Activities						Pension Liability												Accumulated Other Comprehensive (Loss)/Income
Balance at December 31, 2024			$	(430.6)					$	(840.4)					$	(27.5)					$	(230.2)											$	(1,528.7)
Other comprehensive income/(loss) before reclassification adjustments			45.3						386.2						(4.7)						—												426.8
Tax effect			—						(87.5)						1.2						—												(86.3)
Reclassification adjustments to net earnings			—						0.1			(A)			1.4			(C)			1.2			(B)									2.7
Tax effect			—						—						(0.3)						(0.2)												(0.5)
Balance at March 31, 2025			$	(385.3)					$	(541.6)					$	(29.9)					$	(229.2)											$	(1,186.0)

			Three Months Ended
			March 31, 2024
			Currency Translation Adjustment						Net Gains/Losses on Available-for-sale Securities						Cash Flow Hedging Activities						Pension Liability												Accumulated Other Comprehensive (Loss)/Income
Balance at December 31, 2023			$	(331.5)					$	(1,157.5)					$	(21.6)					$	(234.6)											$	(1,745.2)
Other comprehensive income/(loss) before reclassification adjustments			(37.4)						(91.0)						—						—												(128.4)
Tax effect			—						19.1						—						—												19.1
Reclassification adjustments to net earnings			—						1.2			(A)			1.1			(C)			1.0			(B)									3.3
Tax effect			—						(0.2)						(0.3)						(0.2)												(0.7)
Balance at March 31, 2024			$	(368.9)					$	(1,228.4)					$	(20.8)					$	(233.8)											$	(1,851.9)

			Nine Months Ended
			March 31, 2025
			Currency Translation Adjustment						Net Gains/Losses on Available-for-sale Securities						Cash Flow Hedging Activities						Pension Liability												Accumulated Other Comprehensive (Loss)/Income
Balance at June 30, 2024			$	(378.8)					$	(1,178.0)					$	(20.0)					$	(231.5)											$	(1,808.3)
Other comprehensive income/(loss) before reclassification adjustments			(6.5)						826.9						(17.2)						—												803.2
Tax effect			—						(191.2)						4.3						—												(186.9)
Reclassification adjustments to net earnings			—						0.8			(A)			4.0			(C)			3.0			(B)									7.8
Tax effect			—						(0.1)						(1.0)						(0.7)												(1.8)
Balance at March 31, 2025			$	(385.3)					$	(541.6)					$	(29.9)					$	(229.2)											$	(1,186.0)

			Nine Months Ended
			March 31, 2024
			Currency Translation Adjustment						Net Gains/Losses on Available-for-sale Securities						Cash Flow Hedging Activities						Pension Liability												Accumulated Other Comprehensive (Loss)/Income
Balance at June 30, 2023			$	(340.8)					$	(1,705.6)					$	(23.3)					$	(236.1)											$	(2,305.8)
Other comprehensive income/(loss) before reclassification adjustments			(28.1)						618.8						—						—												590.7
Tax effect			—						(145.7)						—						—												(145.7)
Reclassification adjustments to net earnings			—						5.2			(A)			3.3			(C)			2.9			(B)									11.4
Tax effect			—						(1.1)						(0.8)						(0.6)												(2.5)
Balance at March 31, 2024			$	(368.9)					$	(1,228.4)					$	(20.8)					$	(233.8)											$	(1,851.9)

(A) Reclassification adjustments out of AOCI are included within Other income, net, on the Statements of Consolidated Earnings.

(B) Reclassification adjustments out of AOCI are included in net pension income (see Note 12).

(C) Reclassification adjustments out of AOCI are included in Interest expense on the Statements of Consolidated Earnings (see Note 11).

Note 17. Interim Financial Data by Segment

Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. The primary components of the “Other” segment are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to transformation, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, interest expense and corporate interest income. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility.

Segment Results:

			Revenues
			Three Months Ended												Nine Months Ended
			March 31,												March 31,
			2025						2024						2025						2024
Employer Services			$	3,767.9					$	3,590.7					$	10,417.4					$	9,762.3
PEO Services			1,788.5						1,665.6						5,026.3						4,681.2
Other			(3.4)						(2.5)						(9.6)						(9.4)
			$	5,553.0					$	5,253.8					$	15,434.1					$	14,434.1

			Earnings before Income Taxes
			Three Months Ended												Nine Months Ended
			March 31,												March 31,
			2025						2024						2025						2024
Employer Services			$	1,500.1					$	1,421.7					$	3,847.3					$	3,492.1
PEO Services			253.3						235.9						730.6						713.8
Other			(131.5)						(111.3)						(458.5)						(422.9)
			$	1,621.9					$	1,546.3					$	4,119.4					$	3,783.0