Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 22

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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2025, $247.4 million of short-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements. As of June 30, 2025, $38.4 million of short-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements (see Note 10).

See notes to the Consolidated Financial Statements.

5

Automatic Data Processing, Inc. and SubsidiariesStatements of Consolidated Cash Flows(In millions)(Unaudited)

Three Months EndedSeptember 30,20252024Cash Flows from Operating Activities:Net earnings$1,013.0 $956.3 Adjustments to reconcile net earnings to cash flows provided by operating activities:  Depreciation and amortization146.7 138.6 Amortization of deferred contract costs298.6 281.4 Deferred income taxes64.8 42.7 Stock-based compensation expense58.7 60.6 Bad debt expense10.3 11.2 Net pension income(3.8)(4.9)Net accretion of discounts and amortization of premiums on available-for-sale securities(22.5)(15.5)Other2.5 0.9 Changes in operating assets and liabilities:  Decrease in accounts receivable102.0 115.4 Increase in deferred contract costs(271.4)(269.8)Increase in other assets(342.4)(217.1)(Decrease)/increase in accounts payable(38.0)48.0 Decrease in accrued expenses and other liabilities(376.2)(323.4)Net cash flows provided by operating activities642.3 824.4 Cash Flows from Investing Activities:  Purchases of corporate and client funds marketable securities(3,604.6)(2,771.7)Proceeds from the sales and maturities of corporate and client funds marketable securities1,896.0 1,266.8 Capital expenditures(46.7)(58.8)Additions to intangibles(94.1)(80.9)Acquisitions of businesses, net of cash acquired0.5 — Proceeds from the sale of property, plant, and equipment and other assets— 3.3 Other(13.7)(3.1)Net cash flows used in investing activities(1,862.6)(1,644.4)Cash