Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 11

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 2
Chunk 11
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 of “Other” are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to our transformation office, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and other interest income and expense.

Non-GAAP Financial Measures

In addition to our U.S. GAAP results, we use the adjusted results and other non-GAAP metrics set forth in the table below to evaluate our operating performance in the absence of certain items and for planning and forecasting of future periods: Adjusted Financial MeasureU.S. GAAP MeasuresAdjusted EBITNet earnings  Adjusted provision for income taxes Provision for income taxesAdjusted net earnings  Net earnings  Adjusted diluted earnings per share  Diluted earnings per shareAdjusted effective tax rate Effective tax rateOrganic constant currencyRevenues

We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations and against prior period, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because it allows investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance.  The nature of these exclusions is for specific items that are not fundamental to our underlying business operations.  Since these adjusted financial measures and other non-GAAP metrics are not measures of performance calculated in accordance with U.S. GAAP, they should not be considered in isolation from, as a substitute for, or superior to their corresponding U.S. GAAP measures, and they may not be comparable to similarly titled measures at other companies.

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Three Months Ended% ChangeSix Months Ended% ChangeDecember 31,December 31,20242023As Reported20242023As ReportedNet earnings  $963.2 $878.4 10 %$1,919.5 $1,737.8 10 %Adjustments:Provision for income taxes298.1 265.4 578.0 498.8 All other interest expense (a)29.6 17.8 50.1 35.8 All other interest income (a)(18.9)(17.2)(42.8)(35.4)Transformation initiatives— 2.7 — 3.4 Legal settlements (b)— — (0.3)— Adjusted EBIT$1,