Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 121

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 121
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These agreements generally have terms ranging from overnight to up to five business days. As of June 30, 2025 and 2024, the Company had $38.4 million and $385.4 million, respectively, of outstanding obligations related to the reverse repurchase agreements. The Company has $7.5 billion available on a committed basis under the U.S. reverse repurchase agreements. Details of the reverse repurchase agreements are as follows: Years ended June 30,20252024Average outstanding balances (in billions)$2.9 $1.8 Weighted average interest rates4.8 %5.5 %

NOTE 10. DEBT

The Company issued four series of fixed-rate notes with staggered maturities of 7 and 10-years totaling $4.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually.During the first quarter ended September 30, 2024, the Company issued $1.0 billion of senior notes due in 2034 bearing a fixed interest rate of 4.450%. In connection with the senior notes issuance, the Company terminated several derivative contracts in place to hedge exposure in changes in benchmark interest rates for the senior notes issued with an aggregate notional amount totaling $1.0 billion (of which $400.0 million were executed during the first quarter ended September 30, 2024 and $600.0 million were executed on the day of issuance). Since these derivative contracts were classified as cash flow hedges, the unamortized loss of $12.5 million was deferred in accumulated other comprehensive (loss)/income and will be amortized to earnings over the life of the respective issued Note as the interest payments are made.During the fourth quarter ended June 30, 2025, the Company issued $1.0 billion of senior notes due in 2032 bearing a fixed interest rate of 4.750%. In connection with the senior notes issuance, the Company also terminated several derivative contracts in place to hedge exposure in changes in benchmark interest rates for the senior notes issued with an aggregate notional amount totaling $1.0 billion (of which $300.0 million were entered into during the third quarter ended March 31, 2025, $100.0 million were entered into during the fourth quarter ended June 30, 2025, and $600.0 million were entered into on the day of issuance).