Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 59

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 related costs.

Interest expense increased for the three months ended March 31, 2025 primarily due to the issuance of $1.0 billion of senior notes during the first quarter ended September 30, 2024.

Interest expense increased for the nine months ended March 31, 2025 primarily due to a higher volume of average commercial paper borrowings of $4.2 billion and reverse repurchase borrowings of $2.8 billion, as compared to $3.6 billion and $1.5 billion, respectively, for the nine months ended March 31, 2024, and the issuance of $1.0 billion of senior notes during the first quarter ended September 30, 2024, partially offset by a decrease in average interest rates of 40 basis points for commercial paper and reverse repurchase borrowings.

Other (Income)/Expense, net

Three Months EndedNine Months EndedMarch 31,March 31,20252024$ Change20252024$ ChangeInterest income on corporate funds$(55.9)$(55.9)$— $(231.5)$(159.3)$72.2 Realized losses on available-for-sale securities, net0.1 1.2 1.1 0.8 5.2 4.4 Gain on sale of assets— (1.2)(1.2)(2.4)(17.1)(14.7)Non-service components of pension income, net(7.9)(8.4)(0.5)(23.4)(25.6)(2.2)Other income, net$(63.7)$(64.3)$(0.6)$(256.5)$(196.8)$59.7 

Interest income on corporate funds remained flat for the three months ended March 31, 2025 due to higher average investment balances of $6.3 billion as compared to $5.5 billion for the three months ended March 31, 2024, offset by a decrease in average interest rates of 40 basis points.

Interest income on corporate funds increased for the nine months ended March 31, 2025 due to higher average investment balances of $9.0 billion as compared to $6.8 billion for the nine months ended March 31, 2024, coupled with an increase in average interest rates of 30 basis points.

See Note 12 of our Consolidated Financial Statements for further details on non-service components of pension