Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 110

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 110
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 were $1,145.3 million, $1,067.6 million, and $992.9 million, respectively.

Deferred costs are periodically reviewed for impairment. There were no impairment losses incurred during the period. 

NOTE 3. ACQUISITIONS

    In October 2024, the Company acquired WorkForce Software, a premier workforce management solutions provider that specializes in supporting large, global enterprises, utilizing cash on hand. The results of WorkForce Software are reported within the Company’s Employer Services segment. Pro forma information has not been presented because the effect of the acquisition is not material to the Company's consolidated financial results.The following table reconciles the purchase price to the cash paid for the acquisition, net of cash acquired:Purchase price$1,170.8 Less: cash acquired(12.5)Cash paid for acquisition of business, net of cash acquired$1,158.3 The preliminary allocation of the purchase price is based upon estimates and assumptions that are subject to change within the measurement period, which is one year from the acquisition date. The primary areas of the purchase price allocation that are not yet finalized relate to the measurement of certain assets and liabilities, including identifiable intangible assets. Accordingly, the measurement period for such purchase price allocations will end when the information becomes available but will not exceed twelve months from the date of acquisition.

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The acquisition was accounted for using the acquisition method of accounting. The Company recognized assets acquired and liabilities assumed at their fair value as of the date of acquisition, with the excess recorded to goodwill. The preliminary purchase price allocation for WorkForce Software is as follows:Cash$12.5 Accounts receivable, net of allowance for doubtful accounts20.0 Identifiable intangible assets (1)292.0 Goodwill880.4 Deferred income taxes, net of valuation allowance51.2 All other assets14.8 Total assets acquired$1,270.9 Deferred revenue$39.6 All other liabilities60.5 Total liabilities assumed$100.1 Total net assets acquired$1,170.8 (1)  Intangible assets are recorded at estimated fair value, as determined by management based on available information which includes an estimated valuation by an independent third-party. The fair values assigned to identifiable intangible assets were determined through the use of the income approach, specifically the relief from royalty and the multi-period excess earnings methods. The major assumptions used in arriving at the estimated identifiable intangible asset values included management’s estimates