Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 46

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 and cash flows, issuances due to employee benefit plan activity, and market conditions. 

18

The following table represents pre-tax stock-based compensation expense for the three and six months ended December 31, 2024 and 2023, respectively:Three Months EndedSix Months EndedDecember 31,December 31,2024202320242023Operating expenses$9.2 $7.4 $18.3 $14.8 Selling, general and administrative expenses59.6 57.6 101.9 100.4 Research and development10.3 8.6 19.5 17.2 Total stock-based compensation expense$79.1 $73.6 $139.7 $132.4 

B.  Pension PlansThe components of net pension income were as follows:Three Months EndedSix Months EndedDecember 31,December 31, 2024202320242023Service cost – benefits earned during the period$1.5 $1.3 $3.0 $2.6 Interest cost on projected benefits21.9 21.1 43.7 42.3 Expected return on plan assets(29.0)(29.0)(58.0)(58.0)Net amortization and deferral0.7 0.8 1.5 1.5 Net pension income$(4.9)$(5.8)$(9.8)$(11.6)

Note 13. Income Taxes

The effective tax rate for the three months ended December 31, 2024 and 2023 was 23.6% and 23.2%, respectively. The increase in the effective tax rate is primarily due to a benefit for adjustments to prior year tax liabilities in the three months ended December 31, 2023, partially offset by a higher excess tax benefit on stock-based compensation in the three months ended December 31, 2024.The effective tax rate for the six months ended December 31, 2024 and 2023 was 23.1% and 22.3%, respectively. The increase in the effective tax rate is primarily due to a benefit for adjustments to prior year tax liabilities, lower reserves for uncertain tax positions and a valuation allowance release in the six months ended December 31, 2023.

Note 14. Commitments and Contingencies

In May 2020, a putative