Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 107

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 107
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| Optimization initiatives(c)                             |                           |                |    19.3 |   |     |   |    42.0 |   |     |   |       — |   |
| Income tax benefit for optimization initiatives(d)      |                           |                |    (4.8 | ) |     |   |   (10.5 | ) |     |   |       — |   |
| Adjusted net earnings (income)                          |                           | $              | 4,092.0 |   |     | $ | 3,784.5 |   |     | $ | 3,419.5 |   |

| A-1 | |  Automatic Data Processing, Inc. – Proxy Statement |

| Reconciliation of GAAP and Non-GAAP Information |

| (a) | The charges in fiscal 2024 include consulting costs relating to our company-wide transformation initiatives.                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (b) | In fiscal 2024, this represents reserve reversal of a legal matter from fiscal 2023.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (c) | In fiscal 2025, there were $23.9 million of severance charges related to broad-based, company-wide initiatives, including efforts to align resources with respect to our new global HCM products, offset by a $4.6 million partial reversal of the workforce optimization initiative from fiscal 2024. Severance charges have been taken in the past and not included as an adjustment to get to adjusted results. Unlike severance charges in prior periods, these specific charges relate to broad-based, company-wide initiatives. |
| (d) | The income tax (benefit)/provision was calculated based on the marginal tax rate in effect for the year ended June 30, 2025. For prior periods, the income tax benefit/(provision) was calculated based on the marginal tax rate in effect during the period of adjustment.                                                                                                                                                                                                                                                           |

Refer to the table below for a reconciliation from consolidated revenue to revenue excluding zero-margin benefits pass-throughs (“ex-ZMPT”) for fiscal years 2025, 2024 and 2023. Our revenue ex-ZMPT measure is a consolidated revenue growth measure that excludes the impact of zero-margin benefits pass-throughs. In addition to the table below, our PSU Program Results for revenue ex-ZMPT growth (as reflected on page 44 of our CD&A) exclude the impacts of foreign currency fluctuations in excess of the fluctuations assumed in the target and