Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 95

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 million, and $167.5 million, respectively. These securities are collateralized by the cash flows of the underlying pools of 

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receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through December 31, 2024.At December 31, 2024, U.S. government agency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $960.2 million and $480.0 million, respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's, and AA+ by Standard & Poor's, with maturities ranging from February 2025 through August 2034. At December 31, 2024, U.S. government agency commercial mortgage-backed securities of $453.0 million include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.At December 31, 2024, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair values of $523.7 million, AA-rated United Kingdom Gilt securities of $293.9 million, and AAA-rated supranational bonds of $213.0 million.Classification of corporate investments on the Consolidated Balance Sheets is as follows:December 31,June 30,20242024Corporate investments:  Cash and cash equivalents$2,216.4 $2,913.4 Short-term marketable securities (a)— 384.0 Long-term marketable securities (b)— — Total corporate investments$2,216.4 $3,297.4 (a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets.(b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets.Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets.Funds held for clients have been invested in the following categories:December 31,June 30,20242024Funds held for clients:  Restricted cash and cash equivalents held to satisfy client funds obligations$14,387.