Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 71

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 7
Chunk 71
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AP measures, and they may not be comparable to similarly titled measures at other companies.

35

Years EndedJune 30,% Change20252024As ReportedNet earnings$4,079.7 $3,752.0 9 %Adjustments:Provision for income taxes1,230.4 1,120.3 All other interest expense (a)114.8 71.4 All other interest income (a)(94.2)(97.0)Gain on sale of assets(2.6)— Transformation initiatives (b)0.1 5.4 Legal settlements (c)(0.4)(4.0)Optimization initiatives (d)19.3 42.0 Adjusted EBIT$5,347.1 $4,890.1 9 %Adjusted EBIT Margin26.0 %25.5 %Provision for income taxes$1,230.4 $1,120.3 10 %Adjustments:Gain on sale of assets (e)(0.6)— Transformation initiatives (e)— 1.3 Legal settlements (e)(0.1)(0.9)Optimization initiatives (e)4.8 10.5 Adjusted provision for income taxes$1,234.5 $1,131.2 9 %Adjusted effective tax rate (f)23.2 %23.0 %Net earnings$4,079.7 $3,752.0 9 %Adjustments:Gain on sale of assets(2.6)— Income tax provision on gain on sale of assets (e)0.6 — Transformation initiatives (b)0.1 5.4 Income tax benefit for transformation initiatives (e)— (1.3)Legal settlements (c)(0.4)(4.0)Income tax provision for legal settlements (e)0.1 0.9 Optimization initiatives (d)19.3 42.0 Income tax benefit for optimization initiatives (e)(4.8)(10.5)Adjusted net earnings$4,092.0 $3,784.5 8 %Diluted EPS$9.98 $9.10 10 %Adjustments:Transformation initiatives (b) (e)— 0.01 Legal settlements (c) (e)— (0.01)Optimization initiatives (d) (