Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 59

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 our broad-based transformation initiatives, in the applicable periods. 

Provision for Income Taxes

The effective tax rate for the three months ended December 31, 2024 and 2023 was 23.6% and 23.2%, respectively. The increase in the effective tax rate is primarily due to a benefit for adjustments to prior year tax liabilities in the three months ended December 31, 2023, partially offset by a higher excess tax benefit on stock-based compensation in the three months ended December 31, 2024.

The effective tax rate for the six months ended December 31, 2024 and 2023 was 23.1% and 22.3%, respectively. The increase in the effective tax rate is primarily due to a benefit for adjustments to prior year tax liabilities, lower reserves for uncertain tax positions and a valuation allowance release in the six months ended December 31, 2023.

Adjusted Provision for Income Taxes

The adjusted effective tax rate for the three months ended December 31, 2024 and 2023 was 23.6% and 23.2%, respectively. The drivers of the adjusted effective tax rate are the same as the drivers of the effective tax rate discussed above.

The adjusted effective tax rate for the six months ended December 31, 2024 and 2023 was 23.1% and 22.3%, respectively. The drivers of the adjusted effective tax rate are the same as the drivers of the effective tax rate discussed above.

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Net Earnings and Diluted EPS, Unadjusted and Adjusted

For the three and six months ended December 31:

Three Months EndedSix Months EndedDecember 31,December 31,20242023YoY Growth20242023YoY GrowthNet earnings  $963.2 $878.4 10 %$1,919.5 $1,737.8 10 %Diluted EPS  $2.35 $2.13 10 %$4.69 $4.20 12 %Adjusted net earnings  $963.2 $880.5 9 %$1,919.3 $1,740.4 10 %Adjusted diluted EPS  $2.35 $2.13 10 %$4.69 $4.20 12 %

For the three and six months ended December 31, 2024, net earnings reflect the changes described above in