Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 44

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 were fully paid in early July 2024. The Company has $7.3 billion available on a committed basis under the U.S. reverse repurchase agreements. Details of the reverse repurchase agreements are as follows:Three Months EndedSix Months EndedDecember 31,December 31,2024202320242023Average outstanding balances (in billions)$3.7 $2.4 $3.7 $1.9 Weighted average interest rates4.8 %5.4 %5.0 %5.4 %

17

Note 11. Debt

The Company issued four series of fixed-rate notes with staggered maturities of 7 and 10 years totaling $4.0 billion (collectively the “Notes”).  The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually.During the first quarter ended September 30, 2024, the Company issued $1.0 billion of senior notes due in 2034 bearing a fixed interest rate of 4.450%. In connection with the senior notes issuance, the Company terminated several derivative contracts in place to hedge exposure in changes in benchmark interest rates for the senior notes issued with an aggregate notional amount totaling $1.0 billion (of which $400.0 million were executed during the three months ended September 30, 2024 and $600.0 million were executed on the day of issuance). Since these derivative contracts were classified as cash flow hedges, the unamortized loss of $12.5 million was deferred in accumulated other comprehensive income and will be amortized to earnings over the life of the issued Notes as the interest payments are made.The principal amounts and associated effective interest rates of the Notes and other debt as of December 31, 2024 and June 30, 2024, are as follows: Debt instrumentEffective Interest RateDecember 31, 2024June 30, 2024Fixed-rate 3.375% notes due September 15, 20253.47%$1,000.0 $1,000.0 Fixed-rate 1.700% notes due May 15, 20281.85%1,000.0 1,000.0 Fixed-rate 1.250% notes due September 1, 20301.83%1,000.0 1,000.0 Fixed-rate 4.450% notes due September 9