Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 102

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 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 0.9 million and 1.1 million shares in the three months ended December 31, 2024 and 2023, respectively, and repurchased 2.4 million and 2.1 million shares in the six months ended December 31, 2024 and 2023. 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. 

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The following table represents pre-tax stock-based compensation expense for the three and six months ended December 31, 2024 and 2023, respectively:Three Months EndedSix Months EndedDecember 31,December 31,2024202320242023Operating expenses$9.2 $7.4 $18.3 $14.8 Selling, general and administrative expenses59.6 57.6 101.9 100.4 Research and development10.3 8.6 19.5 17.2 Total stock-based compensation expense$79.1 $73.6 $139.7 $132.4 

B.  Pension PlansThe components of net pension income were as follows:Three Months EndedSix Months EndedDecember 31,December 31, 2024202320242023Service cost – benefits earned during the period$1.5 $1.3 $3.0 $2.6 Interest cost on projected benefits21.9 21.1 43.7 42.3 Expected return on plan assets(29.0)(29.0)(58.0)(58.0)Net amortization and deferral0.7 0.8 1.5 1.5 Net pension income$(4.9)$(5.8)