Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 112

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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2023. The increase in the interest earned on funds held for clients resulted from an increase in our average interest rate earned to 3.1% for the three months ended December 31, 2024, as compared to 2.8% for the three months ended December 31, 2023, and an increase in our average client funds balances of 8.1% to $35.3 billion for the three months ended December 31, 2024.

Total revenues for the six months ended December 31, 2024 include interest on funds held for clients of $526.1 million, as compared to $427.1 million for the six months ended December 31, 2023. The increase in the interest earned on funds held for clients resulted from an increase in our average interest rate earned to 3.1% for the six months ended December 31, 2024, as compared to 2.7% for the six months ended December 31, 2023, and an increase in our average client funds balances of 6.7% to $34.0 billion for the six months ended December 31, 2024.

Total Expenses

Three Months EndedSix Months EndedDecember 31,December 31, 20242023%Change20242023%ChangeCosts of revenues:Operating expenses$2,376.1 $2,213.3 7 %$4,661.9 $4,370.9 7 %Research and development239.5 228.7 5 %472.1 465.1 2 %Depreciation and amortization126.9 119.6 6 %242.2 240.9 1 %Total costs of revenues2,742.5 2,561.6 7 %5,376.2 5,076.9 6 %Selling, general and administrative expenses1,006.1 922.5 9 %1,932.8 1,802.8 7 %Interest expense129.6 104.9 24 %267.4 196.5 36 %Total expenses$3,878.2 $3,589.0 8 %$7,576.4 $7,076.2 7 %

For the three months ended December 31, 2024, operating expenses increased due to an increase