Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 122

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 122
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 Since these derivative contracts were classified as cash flow hedges, the unamortized loss of $3.0 million was deferred in accumulated other comprehensive (loss)/income and will be amortized to earnings over the life of the respective issued Note as the interest payments are made. During the fourth quarter ended June 30, 2025, the Company redeemed $1.0 billion of senior notes which were due to mature on September 15, 2025 and were bearing a fixed interest rate of 3.375%.

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The principal amounts and associated effective interest rates of the Notes and other debt as of June 30, 2025 and 2024 are as follows:Debt instrumentEffective Interest RateJune 30, 2025June 30, 2024Fixed-rate 3.375% notes due September 15, 20253.47%$— $1,000.0 Fixed-rate 1.700% notes due May 15, 20281.85%1,000.0 1,000.0 Fixed-rate 1.250% notes due September 1, 20301.83%1,000.0 1,000.0 Fixed-rate 4.750% notes due May 8, 20324.95%1,000.0 — Fixed-rate 4.450% notes due September 9, 20344.75%1,000.0 — Other2.9 4.1 4,002.9 3,004.1 Less: current portion (a)(1.0)(1.1)Less: unamortized discount and debt issuance costs(27.2)(11.7)Total long-term debt$3,974.7 $2,991.3 (a) - Current portion of long-term debt as of June 30, 2025 is included within accrued expenses and other current liabilities on the Consolidated Balance Sheets.The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs. As of June 30, 2025, the fair value of the Notes, based on Level 2 inputs, was $3,801.5 million. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 "Summary of Significant Accounting Policies."

NOTE 11. EMPLOYEE