Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 44

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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im Financial Data by Segment

Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility.The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer. For each reportable segment, the CODM uses earnings before income taxes, including plan-to-actual and forecast-to-actual results, to assess segment performance and allocate resources (including personnel and capital resources) amongst its strategic business units. The CODM does not review assets at the reportable segment level, hence segment disclosure relating to total assets has not been provided.

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The following tables present the Company's revenues, significant segment expenses, and earnings before income taxes by reportable segment:Three Months Ended September 30, 2025Employer ServicesPEO ServicesTotalRevenues from external customers$3,203.5 $1,684.9 $4,888.4 Interest on funds held for clients284.2 2.6 286.8 Intercompany revenues 3.5 — 3.5 Total segment revenues3,491.2 1,687.5 5,178.7 Reconciliation of revenues:Intercompany eliminations(3.5)Total consolidated revenues$5,175.2 Less segment expenses: (a)Selling and marketing552.4 91.2 Zero-margin benefits pass-through costs— 1,131.0 Worker's compensation coverage and state unemployment taxes— 134.9 Other segment expenses (b)1,710.0 111.6 Total segment earnings before income taxes1,228.8 218.8 1,447.6 Reconciliation of earnings before income taxes:Other (c)(140.1)Total consolidated earnings before income taxes$1,307.5 Three Months Ended September 30, 2024Employer ServicesPEO ServicesTotalRevenues from external customers$3,007.2 $1,572.2 $4,579.4 Interest on funds held for clients251.0 2.3 253.3 Intercompany revenues 2.8 — 2.8 Total segment revenues3,261.0 1,574.5 4,835.5 Reconciliation