Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 134

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 134
---
 million, $126.9 million, and $116.9 million, respectively. The amount that, if recognized, would impact the effective tax rate is $119.0 million, $91.8 million, and $83.6 million, respectively. The remainder, if recognized, would principally impact deferred taxes.  

77

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:202520242023Unrecognized tax benefits at beginning of the year$126.9 $116.9 $98.1 Additions for tax positions29.5 17.2 11.3 Additions for tax positions of prior periods26.7 17.8 16.8 Reductions for tax positions of prior periods(1.8)(12.8)(5.0)Settlement with tax authorities(0.1)(9.0)(1.8)Expiration of the statute of limitations(17.5)(2.9)(1.0)Impact of foreign exchange rate fluctuations(0.7)(0.3)(1.5)Unrecognized tax benefit at end of year$163.0 $126.9 $116.9 Interest expense and penalties associated with uncertain tax positions have been recorded in the provision for income taxes on the Statements of Consolidated Earnings. During the years ended June 30, 2025, 2024, and 2023, the Company recorded interest expense of $4.3 million, $5.7 million, and $9.1 million, respectively. Penalties recorded during fiscal years 2025, 2024, and 2023 were not significant.At June 30, 2025 and June 30, 2024, the Company had accrued interest of $36.9 million and $32.6 million, respectively, recorded on the Consolidated Balance Sheets within other liabilities. At June 30, 2025 the Company had accrued penalties of $0.3 million recorded on the Consolidated Balance Sheets within other liabilities. At June 30, 2024, the Company had no accrued penalties recorded on the Consolidated Balance Sheets. The Company is routinely examined by the IRS and tax authorities in foreign countries in which it conducts business, as well as tax authorities in states in which it has significant business operations. The tax years currently under examination vary by jurisdiction. Examinations in progress in which the Company has significant business operations are as follows:Taxing JurisdictionF