Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 136

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 136
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 subject to various claims, litigation, and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. Management currently believes that the resolution of these claims, litigation and regulatory compliance matters against us, individually or in the aggregate, will not have a material adverse impact on our consolidated results of operations, financial condition or cash flows. These matters are subject to inherent uncertainties and management's view of these matters may change in the future.  It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material losses related to such representations and warranties.

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NOTE 14.  RECLASSIFICATION OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") 

Comprehensive income is a measure of income that includes both net earnings and other comprehensive income/(loss). Other comprehensive income/(loss) results from items deferred on the Consolidated Balance Sheets in stockholders' equity.  Other comprehensive income/(loss) was $924.9 million, $497.5 million, and ($312.1) million in fiscal 2025, 2024, and 2023, respectively.  Changes in AOCI by component are as follows:Currency Translation AdjustmentNet Gains/(Losses) on Available-for-sale SecuritiesCash Flow Hedging ActivitiesPension LiabilityAccumulated Other Comprehensive Income/(Loss)Balance at June 30, 2022$(354.2)$(1,330.0)$(26.6)$(282.9)$(1,993.7)Other comprehensive income/(loss) before reclassification adjustments13.4 (500.3)— 60.3 (426.6)Tax effect— 113.3 — (13.3)100.0 Reclassification adjustments to net earnings— 14.7 (A)4.4 (C)(0.4)(B)18.7 Tax effect— (3.3)(1.1)0.2 (4.2)Balance at June 30, 2023$(340.8)$(1,705.6)$(23.3)$(236.1)$(2,305.8)Other