Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 5

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 of $4.5 billion and reverse repurchase borrowings of $3.7 billion, as compared to $3.9 billion and $2.4 billion, respectively, for the three months ended December 31, 2023, partially offset by a decrease in average interest rates of 60 basis points for commercial paper and reverse repurchase borrowings.

Interest expense increased for the six months ended December 31, 2024 primarily due to a higher volume of average commercial paper borrowings of $4.7 billion and reverse repurchase borrowings of $3.7 billion, as compared to $4.0 billion and $1.9 billion, respectively, for the six months ended December 31, 2023, partially offset by a decrease in average interest rates of 30 basis points for commercial paper and reverse repurchase borrowings.

Other (Income)/Expense, net

Three Months EndedSix Months EndedDecember 31,December 31,20242023$ Change20242023$ ChangeInterest income on corporate funds$(83.9)$(56.9)$27.0 $(175.5)$(103.4)$72.1 Realized losses on available-for-sale securities, net0.6 2.0 1.4 0.8 4.0 3.2 Gain on sale of assets— (1.4)(1.4)(2.4)(16.0)(13.6)Non-service components of pension income, net(7.8)(8.5)(0.7)(15.7)(17.1)(1.4)Other (income)/expense, net$(91.1)$(64.8)$26.3 $(192.8)$(132.5)$60.3 

Interest income on corporate funds increased due to higher average investment balances of $10.0 billion and $10.3 billion for the three and six months ended December 31, 2024, respectively, as compared to $7.8 billion and $7.5 billion for the three and six months ended December 31, 2023, respectively, coupled with higher average interest rates of 3.4% for each period, as compared to 2.9% and 2.8% for the three and six months ended December 31, 2023, respectively. See Note 12 of our Consolidated Financial Statements for further details on non-service components of pension income, net.