Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 109

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 109
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1 Interest on funds held for clients1,015.4 9.3 — 1,024.7 Total Segment Revenues$12,980.8 $6,233.6 $(11.8)$19,202.6 Reconciliation of disaggregated revenue to our reportable segments for the fiscal year ended June 30, 2023:Types of RevenuesEmployer ServicesPEOOtherTotalHCM$7,724.7 $— $(8.6)$7,716.1 HRO, excluding PEO zero-margin benefits pass-throughs1,216.1 2,175.9 (6.0)3,386.0 PEO zero-margin benefits pass-throughs— 3,800.9 — 3,800.9 Global2,295.8 — — 2,295.8 Interest on funds held for clients806.0 7.4 — 813.4 Total Segment Revenues$12,042.6 $5,984.2 $(14.6)$18,012.2 Contract BalancesThe timing of revenue recognition for our HCM, HRO and Global Solutions is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.

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Changes in deferred revenue related to set up fees for the fiscal year ended June 30, 2025 were as follows:Contract LiabilityContract liability, July 1, 2024$491.6 Recognition of revenue included in beginning of year contract liability(134.1)Contract liability, net of revenue recognized on contracts during the year140.4 Currency translation adjustments22.3 Contract liability, June 30, 2025$520.2 Deferred costs  The balance is as follows:June 30,20252024Deferred costs to obtain a contract$1,438.6 $1,353.0 Deferred costs to fulfill a contract1,715.5 1,612.0 Total deferred contract costs (1)$3,154.1 $2,965.0 (1) The amount of total deferred costs amortized during the fiscal years ended June 30, 2025, June 30, 2024, and June 30, 2023