Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 43

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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6)Customer contracts and lists(1,076.7)(1,007.6)Other intangibles(243.2)(241.1) (4,082.7)(3,891.3)Intangible assets, net$1,604.3 $1,336.0 Other intangibles consist primarily of purchased rights, trademarks and trade names (acquired directly or through acquisitions). All intangible assets have finite lives and, as such, are subject to amortization. The weighted average remaining useful life of the intangible assets is 6 years (6 years for software and software licenses, 5 years for customer contracts and lists, and 4 years for other intangibles). Amortization of intangible assets was $96.3 million and $94.9 million for the three months ended March 31, 2025 and 2024, respectively, and $286.0 million and $285.1 million for the nine months ended March 31, 2025 and 2024, respectively.

16

Estimated future amortization expenses of the Company's existing intangible assets are as follows: AmountThree months ending June 30, 2025$124.7 Twelve months ending June 30, 2026$396.6 Twelve months ending June 30, 2027$255.4 Twelve months ending June 30, 2028$213.6 Twelve months ending June 30, 2029$183.0 Twelve months ending June 30, 2030$142.1 

Note 10. Short-term Financing

The Company has a $4.55 billion, 364-day credit agreement that matures in June 2025 with a one year term-out option. The Company also has a $2.25 billion, five year credit facility that matures in June 2028 that contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. In addition, the Company also has a five year, $3.5 billion credit facility maturing in June 2029 that contains an accordion feature under which the aggregate commitment can be increased by $500 million, subject to the availability of additional commitments. The interest rate applicable to committed borrowings is tied to SOFR, the effective federal funds rate, or the prime rate depending on the notification provided by the Company to the syndicated financial institutions