Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 54

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 analyze results against our expectations and against prior periods, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because it allows investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance.  The nature of these exclusions is for specific items that are not fundamental to our underlying business operations.  Since these adjusted financial measures and other non-GAAP metrics are not measures of performance calculated in accordance with U.S. GAAP, they should not be considered in isolation from, as a substitute for, or superior to their corresponding U.S. GAAP measures, and they may not be comparable to similarly titled measures at other companies.

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Three Months Ended% ChangeSeptember 30,20252024As ReportedNet earnings  $1,013.0 $956.3 6 %Adjustments:Provision for income taxes294.5 279.9 All other interest expense (a)33.6 20.5 All other interest income (a)(22.8)(23.9)Legal settlements (b)— (0.3)Adjusted EBIT$1,318.3 $1,232.5 7 %Adjusted EBIT Margin25.5 %25.5 %Provision for income taxes$294.5 $279.9 5 %Adjustments:Legal settlements (c)— (0.1)Adjusted provision for income taxes$294.5 $279.8 5 %Adjusted effective tax rate (d)22.5 %22.6 %Net earnings  $1,013.0 $956.3 6 %Adjustments:Legal settlements (b)— (0.3)Income tax provision for legal settlements (c)— 0.1 Adjusted net earnings  $1,013.0 $956.1 6 %Diluted EPS  $2.49 $2.34 6 %Adjustments:Legal settlements (b) (c)— — Adjusted diluted EPS  $2.49 $2.33 7 %

Note: Numbers may not foot due to rounding.

(a) In adjusted EBIT, we include the interest income earned on investments associated with our client funds extended investment strategy and interest expense on borrowings related to our client funds extended investment strategy as we believe these amounts to