Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 81

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 appropriate rate of return which are based on the weighted average cost of capital for both the Company and other market participants, projected customer attrition rates, as well as applicable royalty rates for comparable assets. The useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to the future cash flows. The estimated fair value of intangible assets and related useful lives as included in the estimated purchase price allocation include:Estimated Fair ValueEstimated Useful Life (in years)Technology$115.0 7Customer/Partner relationships$170.0 8Tradename$7.0 4The goodwill recorded as a result of the WorkForce Software transaction represents future economic benefits the Company expects to achieve as a result of the acquisition, including expected synergies along with the value of the assembled workforce. None of the goodwill resulting from the acquisition is tax deductible.

Note 5.  Earnings per Share (“EPS”)BasicEffect of Employee Stock Option SharesEffect ofEmployeeRestrictedStockSharesDilutedThree Months Ended September 30, 2025    Net earnings$1,013.0   $1,013.0 Weighted average shares (in millions)405.1 0.4 1.0 406.5 EPS$2.50   $2.49 Three Months Ended September 30, 2024    Net earnings$956.3   $956.3 Weighted average shares (in millions)407.9 0.7 0.9 409.5 EPS$2.34   $2.34 

10

Shares that could potentially dilute basic EPS in the future include outstanding share-based compensation awards, discussed in Note 12. For the three months ended September 30, 2025, there were 0.3 million shares excluded from the calculation of diluted EPS because their inclusion would have been anti-dilutive. For the three months ended September 30, 2024, there were no  shares excluded from the calculation of diluted EPS. 

Note 6. Other (Income)/Expense, NetThree Months EndedSeptember 30,20252024Interest income on corporate funds$(101.5)$(91.7)Realized (gains)/losses on available-for-sale securities, net(1.5)0.2 Gain on sale of assets— (2