Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 20

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 20
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 of our business. In addition to liquidity risk, our investments are subject to interest rate risk and credit risk, as discussed below.

We have established credit quality, maturity, and exposure limits for our investments. The minimum allowed credit rating at time of purchase for Corporate, Canadian government agency and Canadian provincial bonds is BBB, for asset-backed securities is AAA, and for municipal bonds is A. The maximum maturity at time of purchase for BBB-rated securities is 5 years, and for single A rated securities, AA-rated and AAA-rated securities is 10 years. Time deposits and commercial paper must be rated A-1 and/or P-1. Money market funds must be rated AAA/Aaa-mf.

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Details regarding our overall investment portfolio are as follows:Three Months EndedNine Months EndedMarch 31,March 31,2025202420252024Average investment balances at cost:    Corporate investments$6,269.5 $5,547.1 $8,987.7 $6,837.5 Funds held for clients44,495.8 41,701.7 37,470.6 35,135.3 Total$50,765.3 $47,248.8 $46,458.3 $41,972.8     Average interest rates earned exclusive of realized   (gains)/losses on:    Corporate investments3.6 %4.0 %3.4 %3.1 %Funds held for clients3.2 %3.1 %3.1 %2.8 %Total3.2 %3.2 %3.2 %2.9 %Net realized losses on available-for-sale securities$0.1 $1.2 $0.8 $5.2 

 March 31, 2025June 30, 2024Net unrealized pre-tax losses on available-for-sale securities$(688.0)$(1,515.8)Total available-for-sale securities at fair value$33,856.6 $31,207.5 

We are exposed to interest rate risk in relation to securities that mature, as the proceeds from maturing securities are reinvested. Factors that influence the earnings impact of interest rate changes include, among others, the amount of invested funds and the overall portfolio mix between short-term and long-term investments. This mix varies during