Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 126

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 126
---
(124)(435)Restricted shares/units forfeited— (62)Restricted shares/units outstanding at June 30, 2025— 1,174 Performance-Based Restricted Stock and Performance-Based Restricted Stock Units:Number of Shares(in thousands)Number of Units (in thousands)Restricted shares/units outstanding at July 1, 202488 753 Restricted shares/units granted— 305 Restricted shares/units vested(58)(293)Restricted shares/units forfeited(3)(14)Restricted shares/units outstanding at June 30, 202527 751   The weighted average fair values of shares/units granted were as follows:Years ended June 30,202520242023(in dollars)Performance-based restricted shares/units$283.84 $262.56 $245.96 Time-based restricted shares/units$277.10 $255.29 $214.75 B.  Pension PlansThe Company has a defined benefit cash balance pension plan. The U.S. pension plan, which is currently closed to new entrants, was frozen effective July 1, 2020. As of July 1, 2020 and onward, participants will retain their accrued benefits and will not accrue any future benefits due to pay and/or service. The plan interest credit rate varies from year-to-year based on the ten-year U.S. Treasury rate. The Company's policy is to make contributions within the range determined by generally accepted actuarial principles.

71

The Company also has various retirement plans for its non-U.S. employees and maintains a Supplemental Officers Retirement Plan (“SORP”). The SORP is a defined benefit plan pursuant to which the Company pays supplemental pension benefits to certain corporate officers upon retirement based upon the officers' years of service and compensation. The SORP, which is currently closed to new entrants, was frozen effective July 1, 2019, with no future accruals due to pay and/or service. A June 30 measurement date was used in determining the Company's benefit obligations and fair value of plan assets. The Company is required to (a) recognize in its Consolidated Balance Sheets an asset for a plan's net overfunded status or a liability for a plan's net underfunded status, (b) measure a plan's assets and its obligations that determine its funded status as of the end of the employer's fiscal year, and (c) recognize changes in the funded status of a defined benefit