Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 111

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 111
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 of future cash flows, discounted at an appropriate rate of return which are based on the weighted average cost of capital for both the Company and other market participants, projected customer attrition rates, as well as applicable royalty rates for comparable assets. The useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to the future cash flows. The estimated fair value of intangible assets and related useful lives as included in the estimated purchase price allocation include:Estimated Fair ValueEstimated Useful Life (in years)Technology$115.0 7Customer/Partner relationships$170.0 8Tradename$7.0 4The goodwill recorded as a result of the WorkForce Software transaction represents future economic benefits the Company expects to achieve as a result of the acquisition, including expected synergies along with the value of the assembled workforce. None of the goodwill resulting from the acquisition is tax deductible.

NOTE 4. OTHER (INCOME)/EXPENSE, NET

Other income, net consists of the following:Years ended June 30,202520242023Interest income on corporate funds$(319.5)$(241.3)$(149.5)Realized losses on available-for-sale securities, net1.7 5.9 14.7 Impairment of assets— — 2.1 Gain on sale of assets(5.0)(17.1)— Non-service components of pension income, net(31.3)(34.2)(50.8)Other income, net$(354.1)$(286.7)$(183.5)In fiscal 2025, the Company's corporate funds average investment balance was $9.2 billion as compared to $7.4 billion in fiscal 2024, and average interest rates related to corporate funds were 3.5% in fiscal 2025 as compared to 3.3% in fiscal 2024.

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In fiscal 2025, the Company recognized a gain of $5.0 million, in relation to sales of buildings.See Note 11 of our Consolidated Financial Statements for further details on non-service components of pension income, net.

NOTE 5. CORPORATE INVESTMENTS AND FUNDS HELD FOR CLIENTS

Corporate investments and funds held for clients at June 30, 2025 and 2024 were as follows:  June 30, 202