Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 87

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 Company has reported the cash and cash equivalents related to client funds investments with original maturities of ninety days or less, within the beginning and ending balances of cash, cash equivalents, restricted cash, and restricted cash equivalents. The Company has reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase / (decrease) in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows.All available-for-sale securities were rated as investment grade at September 30, 2025. Expected maturities of available-for-sale securities at September 30, 2025 are as follows:One year or less$7,747.6 One year to two years4,548.1 Two years to three years5,598.5 Three years to four years5,572.6 After four years12,185.5 Total available-for-sale securities$35,652.3 

Note 8.  Leases

The Company records leases on the Consolidated Balance Sheets as operating 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. 

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The components of operating lease expense were as follows: Three Months EndedSeptember 30,20252024Operating lease cost$30.6 $27.5 Short-term lease cost0.3 0.3 Variable lease cost5.7 6.6 Total operating lease cost$36.6 $34.4 The following table provides supplemental cash flow information related to the Company's leases:Three Months EndedSeptember 30,20252024Cash paid for operating lease liabilities$32.2 $28.8 Operating lease ROU assets obtained in exchange for new operating lease liabilities$45.4 $13.7 Other information related to our operating lease liabilities is as follows:September 30,June 30,20252025Weighted-average remaining lease term (in years)66Weighted-average discount rate3.7 %3.6 %Current operating lease liability$100.4 $100.8