Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 47

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 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 

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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 EndedNine Months EndedMarch 31,March 31,2025202420252024Operating expenses$9.0 $7.8 $27.3 $22.6 Selling, general and administrative expenses45.5 39.2 147.4 139.6 Research and development8.3 9.3 27.8 26.5 Total stock-based compensation expense$62.8 $56.3 $202.5 $188.7 

B.  Pension PlansThe components of net pension income were as follows:Three Months EndedNine Months EndedMarch 31,March 31, 2025202420252024Service cost – benefits earned during the period$1.5 $1.3 $4.5 $3.9 Interest cost on projected benefits21.8 21.2 65.5 63.4 Expected return on plan assets(29.0)(29.