Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 33

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 31, 2024:Types of RevenuesEmployer ServicesPEOOtherTotalHCM$6,174.8 $— $(6.5)$6,168.3 HRO, excluding PEO zero-margin benefits pass-throughs980.7 1,710.7 (2.9)2,688.5 PEO zero-margin benefits pass-throughs— 2,963.7 — 2,963.7 Global1,865.7 — — 1,865.7 Interest on funds held for clients741.1 6.8 — 747.9 Total Segment Revenues$9,762.3 $4,681.2 $(9.4)$14,434.1 Contract BalancesThe timing of revenue recognition for HCM, HRO and Global is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.Changes in deferred revenues related to set up fees for the nine months ended March 31, 2025 were as follows:Contract LiabilityContract liability, July 1, 2024$491.6 Recognition of revenue included in beginning of year contract liability(102.4)Contract liability, net of revenue recognized on contracts during the period103.7 Currency translation adjustments(0.7)Contract liability, March 31, 2025$492.2 

Note 4. Acquisition

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