Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 86

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 cash equivalents$2,478.0 $3,347.8 Short-term marketable securities5,466.1 4,498.8 Total corporate investments$7,944.1 $7,846.6 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.

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Funds held for clients have been invested in the following categories:September 30,June 30,20252025Funds held for clients:  Restricted cash and cash equivalents held to satisfy client funds obligations$1,513.7 $1,706.8 Restricted short-term marketable securities held to satisfy client funds obligations2,281.6 3,155.7 Restricted long-term marketable securities held to satisfy client funds obligations27,904.6 26,123.2 Total funds held for clients$31,699.9 $30,985.7 Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax, and other payee payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling $31,845.6 million and $31,343.3 million at September 30, 2025 and June 30, 2025, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purpose of satisfying the client funds obligations. Of the Company’s funds held for clients at September 30, 2025 and June 30, 2025, $28,332.9 million and $27,355.2 million, respectively, are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and eliminate in consolidation.The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows. The