Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 102

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 lease right-of-use (“ROU”) assets, records the current portion of operating lease liabilities within accrued expenses and other current liabilities and, separately, records long-term operating lease liabilities. The difference between total ROU assets and total lease liabilities is primarily attributable to prepayments of our obligations and the recognition of various lease incentives. The Company has entered into operating lease agreements for facilities and equipment. The Company's leases have remaining lease terms of up to approximately eleven years. The components of operating lease expense were as follows: Three Months EndedNine Months EndedMarch 31,March 31,2025202420252024Operating lease cost$27.4 $29.4 $82.3 $95.6 Short-term lease cost0.3 0.3 0.8 1.1 Variable lease cost4.6 4.7 15.8 12.8 Total operating lease cost$32.3 $34.4 $98.9 $109.5 The following table provides supplemental cash flow information related to the Company's leases:Nine Months EndedMarch 31,20252024Cash paid for operating lease liabilities$95.4 $95.6 Operating lease ROU assets obtained in exchange for new operating lease liabilities$44.5 $54.2 Other information related to our operating lease liabilities is as follows:March 31,June 30,20252024Weighted-average remaining lease term (in years)55Weighted-average discount rate3.4 %3.3 %Current operating lease liability$100.3 $92.2 

15

As of March 31, 2025, maturities of operating lease liabilities are as follows:Three months ending June 30, 2025$28.4 Twelve months ending June 30, 2026103.4 Twelve months ending June 30, 202789.5 Twelve months ending June 30, 202867.5 Twelve months ending June 30, 202945.0 Thereafter83.7 Total undiscounted lease obligations417.5 Less: Imputed interest(34.0)Net lease obligations$383.5 

Note 9. Goodwill and Intangible Assets, net

Changes in goodwill for the nine months ended March 31, 2025 are as follows:  EmployerServicesPEOServicesTotalBalance at June 30,