Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 133

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 133
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 $620.7 Prepaid expenses103.1 88.8 Prepaid retirement benefits53.1 40.3 Tax on unrepatriated earnings12.0 10.2 Other16.9 20.8 Deferred tax liabilities839.1 780.8 Net deferred tax (liabilities)/assets$(107.5)$135.9 There are $56.1 million and $200.2 million of long-term deferred tax assets included in other assets on the Consolidated Balance Sheets at June 30, 2025 and 2024, respectively.Income taxes have not been provided on undistributed earnings of certain foreign subsidiaries in an aggregate amount of approximately $55.2 million as the Company considers such earnings to be permanently reinvested outside of the United States. As of June 30, 2025, it is not practicable to estimate the unrecognized tax liability that would occur upon distribution.The Company has estimated foreign net operating loss carry-forwards of approximately $117.3 million as of June 30, 2025, of which $17.8 million expire through the year ending June 30, 2045 and $99.5 million have an indefinite utilization period. As of June 30, 2025, the Company has approximately $107.3 million of federal net operating loss carry-forwards from acquired companies. The net operating losses have an annual utilization limitation pursuant to section 382 of the Internal Revenue Code, of which $16.4 million expire through the year ending June 30, 2036 and $90.9 million have an indefinite utilization period.  The Company has state net operating loss carry-forwards of approximately $109.2 million as of June 30, 2025, which expire through the year ending June 30, 2045. The Company has recorded valuation allowances of $23.8 million and $11.1 million at June 30, 2025 and 2024, respectively, to reflect the estimated amount of domestic and foreign deferred tax assets that may not be realized.  Income tax payments were approximately $1,198.0 million, $1,185.2 million, and $1,080.7 million for fiscal 2025, 2024, and 2023, respectively.As of June 30, 2025, 2024, and 2023 the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $163.0