Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 100

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 March 31, 2025, U.S. government agency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $965.9 million and $486.8 million, respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's, and AA+ by Standard & Poor's, with maturities ranging from April 2025 through August 2034. At March 31, 2025, U.S. government agency commercial mortgage-backed securities, with fair values of $445.6 million, include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.At March 31, 2025, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair values of $532.1 million, AA-rated United Kingdom Gilt securities of $330.7 million, and AAA-rated supranational bonds of $227.7 million.Classification of corporate investments on the Consolidated Balance Sheets is as follows:March 31,June 30,20252024Corporate investments:  Cash and cash equivalents$2,680.6 $2,913.4 Short-term marketable securities (a)— 384.0 Long-term marketable securities (b)— — Total corporate investments$2,680.6 $3,297.4 (a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets.(b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets.Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets.Funds held for clients have been invested in the following categories:March 31,June 30,20252024Funds held for clients:  Restricted cash and cash equivalents held to satisfy client funds obligations$5,518.6 $7,172.6 Restricted short-term marketable securities held to satisfy client funds obligations8,454.4 5,538.1 Restricted long-term marketable securities held to satisfy client funds obligations25,402.2 25,285.4 Total funds held for clients$39,375.