Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 127

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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3 %29.3 %26.8 %26.2 %Provision for income taxes$372.4 $361.4 3 %$950.4 $860.3 10 %Adjustments:Transformation initiatives (c)— 0.4 — 1.2 Legal settlements (c)— — (0.1)— Adjusted provision for income taxes$372.4 $361.8 3 %$950.3 $861.5 10 %Adjusted effective tax rate (d)23.0 %23.4 %23.1 %22.7 %Net earnings  $1,249.5 $1,184.9 5 %$3,169.0 $2,922.7 8 %Adjustments:Transformation initiatives0.1 1.5 0.1 4.9 Income tax (benefit)/provision for transformation initiatives (c)— (0.4)— (1.2)Legal settlements (b)— — (0.4)— Income tax (benefit)/provision for legal settlements (c)— — 0.1 — Adjusted net earnings  $1,249.6 $1,186.0 5 %$3,168.8 $2,926.4 8 %Diluted EPS  $3.06 $2.88 6 %$7.75 $7.07 10 %Adjustments:Transformation initiatives (c)— — — 0.01 Legal settlements (b) (c)— — — — Adjusted diluted EPS  $3.06 $2.88 6 %$7.75 $7.08 9 %

(a) In Adjusted EBIT, we include the interest income earned on investments associated with our client funds extended investment strategy and interest expense on borrowings related to our client funds extended investment strategy as we believe these amounts to be fundamental to the underlying operations of our business model. The adjustments in the table above represent the interest income and interest expense that are not related to our client funds extended investment strategy and are labeled as “All other interest expense” and “All other interest income.”

(b) Represents a reserve reversal of a legal matter from fiscal 2023 previously recorded as an adjustment to EBIT.

(c