Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 40

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 therefore, no compensation expense has been recorded.

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The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. The Company repurchased 1.2 million and 1.4 million shares in the three months ended September 30, 2025 and 2024, respectively. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions. The following table represents pre-tax stock-based compensation expense for the three months ended September 30, 2025 and 2024, respectively:Three Months EndedSeptember 30,20252024Operating expenses$8.6 $9.1 Selling, general and administrative expenses41.4 42.3 Research and development8.7 9.2 Total stock-based compensation expense$58.7 $60.6 During the three months ended September 30, 2025, the following activity occurred under the Company’s existing plans:Stock Options:Numberof Options(in thousands)WeightedAverage Price(in dollars)Options outstanding at July 1, 20251,035 $164 Options exercised(110)$183 Options forfeited/cancelled— $— Options outstanding at September 30, 2025925 $162 Time-Based Restricted Stock Units:Number of Units (in thousands)Restricted units outstanding at July 1, 20251,174 Restricted units granted597 Restricted units vested(556)Restricted units forfeited(22)Restricted units outstanding at September 30, 20251,193 Performance-Based Restricted Stock Units:Number of Units (in thousands)Restricted units outstanding at July 1, 2025778 Restricted units granted387 Restricted units vested(371)Restricted units forfeited(15)Restricted units outstanding at September 30, 2025779 

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B.  Pension PlansThe components of net pension (income)/expense were as follows:Three Months EndedSeptember 30, 20252024Service cost – benefits earned during the period$2.0 $1.5 Interest cost on projected benefits21.7 21.9 Expected return on plan assets(28.3