Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 58

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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5)(0.7)(15.7)(17.1)(1.4)Other (income)/expense, net$(91.1)$(64.8)$26.3 $(192.8)$(132.5)$60.3 

Interest income on corporate funds increased due to higher average investment balances of $10.0 billion and $10.3 billion for the three and six months ended December 31, 2024, respectively, as compared to $7.8 billion and $7.5 billion for the three and six months ended December 31, 2023, respectively, coupled with higher average interest rates of 3.4% for each period, as compared to 2.9% and 2.8% for the three and six months ended December 31, 2023, respectively. See Note 12 of our Consolidated Financial Statements for further details on non-service components of pension income, net. 

28

Earnings Before Income Taxes ("EBIT") and Adjusted EBIT 

For the three and six months ended December 31:

Three Months EndedSix Months EndedDecember 31,December 31,20242023YoY Growth20242023YoY GrowthEBIT$1,261.3 $1,143.8 10 %$2,497.5 $2,236.6 12 %  EBIT Margin25.0 %24.5 %50 bps25.3 %24.4 %90 bpsAdjusted EBIT$1,272.0 $1,147.1 11 %$2,504.5 $2,240.4 12 %  Adjusted EBIT Margin25.2 %24.6 %60 bps25.3 %24.4 %90 bps

Earnings before income taxes increased for the three and six months ended December 31, 2024, due to the components discussed above.

EBIT Margin increased for the three and six months ended December 31, 2024, due to contributions from client funds interest revenues discussed above, increased interest income on corporate funds, and operating efficiencies for costs of servicing our clients on growing revenue, partially offset by increased interest expense and acquisition related expenses.

Adjusted EBIT and Adjusted EBIT margin exclude interest income and interest expense that are not related to our client funds extended investment strategy, legal settlements, and net charges related to