The company closed the WorkForce Software acquisition in October and started the integration efforts, expanding its HCM ecosystem. The acquisition was for $1,160.6 million net of cash acquired.

ADP announced a partnership with Fiserv to integrate Clover and CashFlow Central with RUN, ADP's small business payroll and HR solution, enhancing its offerings for small businesses.

Since the first quarter introduction of ADP Lyric HCM, our flexible, intelligent, and human-centric Global HCM platform, we have experienced a meaningful increase in ADP Lyric's new business activity.

ADP achieved a major milestone by increasing its dividend for the 50th consecutive year, demonstrating a commitment to shareholder returns.

The company repurchased 2.4 million shares for $645 million during the six months ended December 31, 2024, indicating an ongoing effort to return capital to shareholders.

Capital expenditures for the six months ended December 31, 2024 were $98.2 million. We expect capital expenditures in fiscal 2025 to be between $180 million and $200 million, as compared to $211.7 million in fiscal 2024.

The annualized interest rate earned on our entire portfolio increased from 2.7% for the six months ended December 31, 2023 to 3.2% for the six months ended December 31, 2024.

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.

We are exposed to credit risk in connection with our available-for-sale securities through the possible inability of the borrowers to meet the terms of the securities. We limit credit risk by investing in investment-grade securities, primarily AAA-rated and AA- rated securities

There have been no material changes in our risk factors disclosed in Part 1, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

In the normal course of business, the Company is subject to various claims and litigation. While the outcome of any litigation is inherently unpredictable, the Company believes it has valid defenses with respect to the legal matters pending against it and the Company believes that the ultimate resolution of these matters will not have a material adverse impact on its financial condition, results of operations, or cash flows.

With respect to the disclosure of administrative or judicial proceedings arising under any Federal, State, or local provisions regulating the discharge of materials into the environment or that are primarily for the purpose of protecting the environment, the Company has determined that the following threshold is reasonably designed to result in disclosure of any such proceeding that is material to its business or financial condition: any proceeding when the potential monetary sanctions exceed $1 million.

The Company's Chief Executive Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures were effective as of December 31, 2024.

There was no change in the Company's internal control over financial reporting that occurred during the three months ended December 31, 2024 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

In connection with his previously announced departure from Automatic Data Processing, Inc. (the "Company") on March 31, 2025, John C. Ayala entered into a separation agreement and release (“agreement”), dated January 27, 2025.