What changed in this filing

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Item 1. Financial Statements

2025-05-01 compared with 2025-01-30 · 132 added, 128 removed, 599 unchanged (30% of the section changed)

4 unchanged sentences

(In millions, except per share amounts)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

12 unchanged sentences

TOTAL EXPENSES 3,994.8 3,771.8 11,571.2 10,847.9

Other (income)/expense, net ( 91.1 ) ( 64.8 ) ( 192.8 ) ( 132.5 )

Other income, net ( 63.7 ) ( 64.3 ) ( 256.5 ) ( 196.8 )

EARNINGS BEFORE INCOME TAXES 1,621.9 1,546.3 4,119.4 3,783.0

5 unchanged sentences

Diluted weighted average shares outstanding 408.5 412.1 409.1 413.6

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 19,420.8 million and $ 18,379.2 million for the three months ended December 31, 2024 and 2023, respectively, and $ 36,614.4 million and $ 34,373.8 million for the six months ended December 31, 2024 and 2023, respectively.

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 20,293.3 million and $ 18,339.6 million for the three months ended March 31, 2025 and 2024, respectively, and $ 56,907.7 million and $ 52,713.4 million for the nine months ended March 31, 2025 and 2024, respectively.

See notes to the Consolidated Financial Statements.

3 unchanged sentences

(In millions)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Net earnings $ 1,249.5 $ 1,184.9 $ 3,169.0 $ 2,922.7

Other comprehensive income/(losses):

Other comprehensive income/(loss):

Currency translation adjustments 45.3 ( 37.4 ) ( 6.5 ) ( 28.1 )

Unrealized net (losses)/gains on available-for-sale securities ( 423.8 ) 860.5 440.5 709.9

Unrealized net gains/(losses) on available-for-sale securities 386.2 ( 91.0 ) 826.9 618.8

Tax effect ( 87.5 ) 19.1 ( 191.2 ) ( 145.7 )

7 unchanged sentences

Tax effect ( 0.2 ) ( 0.2 ) ( 0.7 ) ( 0.6 )

Other comprehensive (loss)/income, net of tax ( 428.5 ) 722.6 279.6 560.6

Other comprehensive income/(loss), net of tax 342.7 ( 106.7 ) 622.3 453.9

Comprehensive income $ 1,592.2 $ 1,078.2 $ 3,791.3 $ 3,376.6

4 unchanged sentences

(In millions, except per share amounts)

December 31, June 30,

March 31, June 30,

Current assets:

40 unchanged sentences

authorized, 1,000.0 shares;

issued, 638.7 shares at December 31, 2024 and June 30, 2024;

outstanding, 406.9 and 408.1 shares at December 31, 2024 and June 30, 2024, respectively

issued, 638.7 shares at March 31, 2025 and June 30, 2024;

outstanding, 406.3 and 408.1 shares at March 31, 2025 and June 30, 2024, respectively

Capital in excess of par value 2,720.8 2,406.9

1 unchanged sentence

Treasury stock - at cost:

231.8 and 230.6 shares at December 31, 2024 and June 30, 2024, respectively

232.4 and 230.6 shares at March 31, 2025 and June 30, 2024, respectively

( 20,700.0 ) ( 19,737.1 )

Accumulated other comprehensive (loss)/ income ( 1,528.7 ) ( 1,808.3 )

Accumulated other comprehensive loss ( 1,186.0 ) ( 1,808.3 )

Total stockholders’ equity 5,855.3 4,547.6

6 unchanged sentences

(In millions)

Six Months Ended

Nine Months Ended

Cash Flows from Operating Activities:

14 unchanged sentences

Increase/(decrease) in accounts payable 42.0 ( 9.1 )

Decrease in accrued expenses and other liabilities ( 110.5 ) ( 77.1 )

Increase/(decrease) in accrued expenses and other liabilities ( 20.9 ) 139.2

Net cash flows provided by operating activities 3,500.5 2,857.0

10 unchanged sentences

Net increase in client funds obligations 634.4 10,999.6

Net cash distributed from the Internal Revenue Service ( 487.6 ) —

Net cash (distributed)/received from the Internal Revenue Service ( 549.2 ) 1,132.0

Payments of debt ( 0.9 ) ( 0.7 )

5 unchanged sentences

Net proceeds related to reverse repurchase agreements ( 346.2 ) ( 67.5 )

Net cash flows provided by financing activities 7,482.5 3,816.1

Net cash flows (used in)/provided by financing activities ( 1,916.4 ) 9,683.8

Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents ( 12.7 ) ( 15.7 )

52 unchanged sentences

The following tables provide details of revenue by our business pillars, and include a reconciliation to the Company’s reportable segments:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

Types of Revenues 2025 2024 2025 2024

5 unchanged sentences

Total Revenues $ 5,553.0 $ 5,253.8 $ 15,434.1 $ 14,434.1

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2024:

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2025:

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

Total Segment Revenues $ 3,767.9 $ 1,788.5 $ ( 3.4 ) $ 5,553.0

Reconciliation of disaggregated revenue to our reportable segments for the three months ended December 31, 2023:

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2024:

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

Total Segment Revenues $ 3,590.7 $ 1,665.6 $ ( 2.5 ) $ 5,253.8

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2024:

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2025:

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

Total Segment Revenues $ 10,417.4 $ 5,026.3 $ ( 9.6 ) $ 15,434.1

Reconciliation of disaggregated revenue to our reportable segments for the six months ended December 31, 2023:

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2024:

Types of Revenues Employer Services PEO Other Total

8 unchanged sentences

Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.

Changes in deferred revenues related to set up fees for the six months ended December 31, 2024 were as follows:

Changes in deferred revenues related to set up fees for the nine months ended March 31, 2025 were as follows:

Contract Liability

3 unchanged sentences

Currency translation adjustments ( 0.7 )

Contract liability, December 31, 2024 $ 471.8

Contract liability, March 31, 2025 $ 492.2

In October 2024, the Company acquired WorkForce Software, a premier workforce management solutions provider that specializes in supporting large, global enterprises, utilizing cash on hand.

The results of WorkForce Software will be reported within the Company’s Employer Services segment.

The results of WorkForce Software are reported within the Company’s Employer Services segment.

Pro forma information has not been presented because the effect of the acquisition is not material to the Company's consolidated financial results.

4 unchanged sentences

The preliminary allocation of the purchase price is based upon estimates and assumptions that are subject to change within the measurement period, which is one year from the acquisition date.

The primary areas of the purchase price allocation that are not yet finalized relate to the measurement of certain assets and liabilities, including identifiable intangible assets, and the finalization of net working capital items included in the purchase price allocation.

The primary areas of the purchase price allocation that are not yet finalized relate to the measurement of certain assets and liabilities, including identifiable intangible assets.

Accordingly, the measurement period for such purchase price allocations will end when the information becomes available but will not exceed twelve months from the date of acquisition.

26 unchanged sentences

Shares Diluted

Three Months Ended December 31, 2024

Three Months Ended March 31, 2025

Net earnings $ 1,249.5 $ 1,249.5

1 unchanged sentence

EPS $ 3.07 $ 3.06

Three Months Ended December 31, 2023

Three Months Ended March 31, 2024

Net earnings $ 1,184.9 $ 1,184.9

1 unchanged sentence

EPS $ 2.89 $ 2.88

Six Months Ended December 31, 2024

Nine Months Ended March 31, 2025

Net earnings $ 3,169.0 $ 3,169.0

1 unchanged sentence

EPS $ 7.78 $ 7.75

Six Months Ended December 31, 2023

Nine Months Ended March 31, 2024

Net earnings $ 2,922.7 $ 2,922.7

1 unchanged sentence

EPS $ 7.11 $ 7.07

For the three and six months ended December 31, 2024, there were no stock options excluded from the calculation of diluted earnings per share due to anti-dilution.

For the three months ended December 31, 2023, there were 0.1 million stock options excluded from the calculation of diluted earnings per share due to anti-dilution.

For the six months ended December 31, 2023, there were no stock options excluded from the calculation of diluted earnings per share due to anti-dilution.

For the three and nine months ended March 31, 2025 and 2024, there were no stock options excluded from the calculation of diluted earnings per share due to anti-dilution.

Other (Income)/Expense, Net

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

3 unchanged sentences

Non-service components of pension income, net (see Note 12) ( 7.9 ) ( 8.4 ) ( 23.4 ) ( 25.6 )

Other (income)/expense, net $ ( 91.1 ) $ ( 64.8 ) $ ( 192.8 ) $ ( 132.5 )

Other income, net $ ( 63.7 ) $ ( 64.3 ) $ ( 256.5 ) $ ( 196.8 )

Corporate Investments and Funds Held for Clients

Corporate investments and funds held for clients at December 31, 2024 and June 30, 2024 were as follows:

December 31, 2024

Corporate investments and funds held for clients at March 31, 2025 and June 30, 2024 were as follows:

March 31, 2025

Losses Fair Market Value (A)

13 unchanged sentences

Total corporate investments and funds held for clients $ 42,743.8 $ 168.2 $ ( 856.2 ) $ 42,055.8

(A) Included within available-for-sale securities are funds held for clients with fair value of $ 33,019.9 million.

There are no corporate investments included within available-for-sale securities at December 31, 2024.

(A) Included within available-for-sale securities are funds held for clients with fair values of $ 33,856.6 million.

There are no corporate investments included within available-for-sale securities at March 31, 2025.

All available-for-sale securities were included in Level 2 of the fair value hierarchy.

19 unchanged sentences

The Company concurred with and did not adjust the prices obtained from the independent pricing service.

The Company had no available-for-sale securities included in Level 1 or Level 3 at December 31, 2024.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2024, are as follows:

December 31, 2024

The Company had no available-for-sale securities included in Level 1 or Level 3 at March 31, 2025.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of March 31, 2025, are as follows:

March 31, 2025

Securities in Unrealized Loss Position Less Than 12 Months Securities in Unrealized Loss Position Greater Than 12 Months Total

26 unchanged sentences

$ ( 66.8 ) $ 5,560.0 $ ( 1,479.9 ) $ 22,249.9 $ ( 1,546.7 ) $ 27,809.9

At December 31, 2024, corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carrying credit ratings of A and above, and have maturities ranging from January 2025 through September 2034.

At December 31, 2024, asset-backed securities include AAA-rated senior tranches of securities with predomi nantly prime collateral of fixed-rate auto loan, credit card, and equipment lease receivables with fair values of $ 751.9 million, $ 480.1 million, and $ 167.5 million, respectively.

These securities are collateralized by the cash flow s of the underlying pools of

At March 31, 2025, corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carrying credit ratings of A and above, and have maturities ranging from April 2025 through March 2035.

At March 31, 2025, asset-backed securities include AAA-rated senior tranches of securities with predomi nantly prime collateral of fixed-rate auto loan, credit card, and equipment lease receivables with fair values of $ 816.0 million, $ 536.1 million, and $ 211.8 million, respectively.

These securities are collateralized by the cash flow s of the underlying pools of receivables.

The primary risk associated with these securities is the collection risk of the underlying receivables.

All collateral on such asset-backed securities has performed as expected through December 31, 2024 .

At December 31, 2024, U.S.

All collateral on such asset-backed securities has performed as expected through March 31, 2025 .

At March 31, 2025, U.S.

government a gency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $ 965.9 million and $ 486.8 million, respectively.

government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's, and AA+ by Standard & Poor's, with maturities ranging from February 2025 through August 2034.

At December 31, 2024, U.S.

government agency commercial mortgage-backed securities of $ 453.0 million include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.

At December 31, 2024, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair val ues of $ 523.7 million, AA-rated United Kingdom Gilt securities of $ 293.9 million, and AAA-rated supranational bonds of $ 213.0 million.

At March 31, 2025, U.S.

government agency commercial mortgage-backed securities, with fair values of $ 445.6 million, include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.

At March 31, 2025, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair val ues of $ 532.1 million, AA-rated United Kingdom Gilt securities of $ 330.7 million, and AAA-rated supranational bonds of $ 227.7 million.

Classification of corporate investments on the Consolidated Balance Sheets is as follows:

December 31, June 30,

March 31, June 30,

Corporate investments:

7 unchanged sentences

Funds held for clients have been invested in the following categories:

December 31, June 30,

March 31, June 30,

Funds held for clients:

5 unchanged sentences

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 totalin g $ 48,482.2 million and $ 39,503.9 million at December 31, 2024 and June 30, 2024, respectively.

The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totalin g $ 40,063.2 million and $ 39,503.9 million at March 31, 2025 and June 30, 2024, 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 December 31, 2024 and June 30, 2024, $ 43,112.4 million and $ 34,940.0 million, respectively, are held in the grantor trust.

Of the Company’s funds held for clients at March 31, 2025 and June 30, 2024, $ 35,394.9 million and $ 34,940.0 million, respectively, are held in the grantor trust.

The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and are eliminated in consolidation.

1 unchanged sentence

The 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 December 31, 2024.

Expected maturities of available-for-sale securities at December 31, 2024 are as follows:

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 March 31, 2025.

Expected maturities of available-for-sale securities at March 31, 2025 are as follows:

One year or less $ 8,454.4

9 unchanged sentences

The components of operating lease expense were as follows:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

4 unchanged sentences

The following table provides supplemental cash flow information related to the Company's leases:

Six Months Ended

Nine Months Ended

Cash paid for operating lease liabilities $ 95.4 $ 95.6

1 unchanged sentence

Other information related to our operating lease liabilities is as follows:

December 31, June 30,

March 31, June 30,

Weighted-average remaining lease term (in years) 5 5

1 unchanged sentence

Current operating lease liability $ 100.3 $ 92.2

As of December 31, 2024, maturities of operating lease liabilities are as follows:

Six months ending June 30, 2025 $ 55.2

As of March 31, 2025, maturities of operating lease liabilities are as follows:

Three months ending June 30, 2025 $ 28.4

Twelve months ending June 30, 2026 103.4

7 unchanged sentences

Goodwill and Intangible Assets, net

Changes in goodwill for the six months ended December 31, 2024 are as follows:

Changes in goodwill for the nine months ended March 31, 2025 are as follows:

Services Total

2 unchanged sentences

Currency translation adjustments ( 0.7 ) — ( 0.7 )

Balance at December 31, 2024 $ 3,179.1 $ 4.8 $ 3,183.9

Balance at March 31, 2025 $ 3,295.4 $ 4.8 $ 3,300.2

Components of intangible assets, net, are as follows:

December 31, June 30,

March 31, June 30,

Intangible assets:

12 unchanged sentences

The weighted average remaining useful life of the intangible assets is 6 years ( 6 years for software and software licenses, 5 years for customer contracts and lists, and 4 years for other intangibles).

Amortization of intangible assets was $ 100.7 million and $ 94.5 million for the three months ended December 31, 2024 and 2023, respectively, and $ 189.7 million and $ 190.2 million for the six months ended December 31, 2024 and 2023, respectively.

Amortization of intangible assets was $ 96.3 million and $ 94.9 million for the three months ended March 31, 2025 and 2024, respectively, and $ 286.0 million and $ 285.1 million for the nine months ended March 31, 2025 and 2024, respectively.

Estimated future amortization expenses of the Company's existing intangible assets are as follows:

Six months ending June 30, 2025 $ 253.2

Three months ending June 30, 2025 $ 124.7

Twelve months ending June 30, 2026 $ 396.6

10 unchanged sentences

The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary.

The Company had no borrowings through December 31, 2024 under the credit agreements.

The Company had no borrowings through March 31, 2025 under the credit agreements.

The Company's U.S.

4 unchanged sentences

Maturities of commercial paper can range from overnight to up to 364 days.

At December 31, 2024 and June 30, 2024, the Company had no commercial paper borrowing outstanding.

At March 31, 2025 and June 30, 2024, the Company had no commercial paper borrowing outstanding.

Details of the borrowings under the commercial paper program are as follows:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

4 unchanged sentences

These agreements generally have terms ranging from overnight to up to five business days.

At December 31, 2024, the Company had no outstanding obligations related to reverse repurchase agreements.

At March 31, 2025, the Company had no outstanding obligations related to reverse repurchase agreements.

At June 30, 2024, the Company had $ 385.4 million of outstanding obligations related to reverse repurchase agreements which were fully paid in early July 2024.

The Company has $ 7.3 billion available on a committed basis under the U.S.

As of March 31, 2025, 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 Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

4 unchanged sentences

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).

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 first quarter 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 instrument Effective Interest Rate December 31, 2024 June 30, 2024

The principal amounts and associated effective interest rates of the Notes and other debt as of March 31, 2025 and June 30, 2024, are as follows:

Debt instrument Effective Interest Rate March 31, 2025 June 30, 2024

Fixed-rate 3.375 % notes due September 15, 2025

12 unchanged sentences

The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs.

As of December 31, 2024, the fair value of the Notes, based on Level 2 inputs, was $ 3,688.6 million.

As of March 31, 2025, the fair value of the Notes, based on Level 2 inputs, was $ 3,739.8 million.

For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2024.

In anticipation of the refinancing of our fixed-rate 3.375 % notes due September 15, 2025, the Company entered into a series of treasury rate lock transactions from January 16, 2025 through April 24, 2025, with an aggregate notional amount totaling $ 400.0 million, of which $ 300.0 million were entered into during the third quarter ended March 31, 2025, $ 50.0 million entered into on April 2, 2025 and $ 50.0 million entered into on April 24, 2025, to hedge its exposure to changes in interest rates through the completion of the refinancing.

The derivative contracts entered into during the fiscal year ended June 30, 2025 have been designated as cash-flow hedges and will be terminated upon completion of the refinancing.

Changes in the derivatives’ fair value are recorded each period in other comprehensive income with a corresponding current asset or liability and, upon settlement, the aggregate amount in accumulated other comprehensive income will be amortized into net income over the term of the future debt instrument.

Refer to Note 16 for the impact to accumulated other comprehensive income.

There are no cash flows associated with the derivatives until settlement occurs with the counter-parties.

The treasury rate lock derivatives are classified as Level 2 in the fair value hierarchy as their value is determined using observable inputs such as forward treasury rates.

Employee Benefit Plans

4 unchanged sentences

Any such future awards will be grants of time-based restricted stock units and/or performance-based restricted stock units, depending on employee eligibility.

Time-based restricted stock unit awards and performance-based restricted stock unit awards granted to employees with a home country of the United States are settled in stock, and for awards granted to employees with a home country outside the United States are generally settled in cash.

Time-based restricted

stock unit awards and performance-based restricted stock unit awards granted to employees with a home country of the United States are settled in stock, and for awards granted to employees with a home country outside the United States are generally settled in cash.

The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock units.

From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program.

The Company repurchased 0.9 million and 1.1 million shares in the three months ended December 31, 2024 and 2023, respectively, and repurchased 2.4 million and 2.1 million shares in the six months ended December 31, 2024 and 2023.

The Company repurchased 1.0 million and 1.2 million shares in the three months ended March 31, 2025 and 2024, respectively, and repurchased 3.4 million and 3.3 million shares in the nine months ended March 31, 2025 and 2024, respectively.

The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions.

The following table represents pre-tax stock-based compensation expense for the three and six months ended December 31, 2024 and 2023, respectively:

Three Months Ended Six Months Ended

December 31, December 31,

The following table represents pre-tax stock-based compensation expense for the three and nine months ended March 31, 2025 and 2024, respectively:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

5 unchanged sentences

The components of net pension income were as follows:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

4 unchanged sentences

Net pension income $ ( 5.0 ) $ ( 5.8 ) $ ( 14.8 ) $ ( 17.4 )

The effective tax rate for the three months ended December 31, 2024 and 2023 was 23.6 % and 23.2 %, respectively.

The increase in the effective tax rate is primarily due to a benefit for adjustments to prior year tax liabilities in the three months ended December 31, 2023, partially offset by a higher excess tax benefit on stock-based compensation in the three months ended December 31, 2024.

The effective tax rate for the six months ended December 31, 2024 and 2023 was 23.1 % and 22.3 %, respectively.

The increase in the effective tax rate is primarily due to a benefit for adjustments to prior year tax liabilities, lower reserves for uncertain tax positions and a valuation allowance release in the six months ended December 31, 2023.

The effective tax rate for the three months ended March 31, 2025 and 2024 was 23.0 % and 23.4 %, respectively.

The decrease in the effective tax rate is primarily due to a benefit for a decrease in uncertain tax position activity and a higher excess tax benefit on stock-based compensation in the three months ended March 31, 2025, partially offset by the benefits of an intercompany transfer of certain assets in the three months ended March 31, 2024.

The effective tax rate for the nine months ended March 31, 2025 and 2024 was 23.1 % and 22.7 %, respectively.

The increase in the effective tax rate is primarily due to a benefit for adjustments to prior year tax liabilities and a valuation allowance release in the nine months ended March 31, 2024.

Commitments and Contingencies

15 unchanged sentences

Three Months Ended

December 31, 2024

March 31, 2025

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

Balance at September 30, 2024 $ 63.9 $ 2,528.6 $ 24,001.2 $ ( 20,144.9 ) $ ( 1,100.2 ) $ 5,348.6

Balance at December 31, 2024 $ 63.9 $ 2,619.6 $ 24,335.6 $ ( 20,412.3 ) $ ( 1,528.7 ) $ 5,078.1

Net earnings — — 1,249.5 — — 1,249.5

6 unchanged sentences

— — ( 628.5 ) — — ( 628.5 )

Balance at December 31, 2024 $ 63.9 $ 2,619.6 $ 24,335.6 $ ( 20,412.3 ) $ ( 1,528.7 ) $ 5,078.1

Balance at March 31, 2025 $ 63.9 $ 2,720.8 $ 24,956.6 $ ( 20,700.0 ) $ ( 1,186.0 ) $ 5,855.3

Three Months Ended

December 31, 2023

March 31, 2024

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

Balance at September 30, 2023 $ 63.9 $ 2,188.7 $ 22,455.4 $ ( 18,767.4 ) $ ( 2,467.8 ) $ 3,472.8

Balance at December 31, 2023 $ 63.9 $ 2,262.9 $ 22,757.1 $ ( 19,019.1 ) $ ( 1,745.2 ) $ 4,319.6

Net earnings — — 1,184.9 — — 1,184.9

Other comprehensive income — — — — 722.6 722.6

Other comprehensive loss — — — — ( 106.7 ) ( 106.7 )

Stock-based compensation expense — 48.6 — — — 48.6

4 unchanged sentences

— — ( 575.9 ) — — ( 575.9 )

Balance at December 31, 2023 $ 63.9 $ 2,262.9 $ 22,757.1 $ ( 19,019.1 ) $ ( 1,745.2 ) $ 4,319.6

Six Months Ended

December 31, 2024

Balance at March 31, 2024 $ 63.9 $ 2,354.0 $ 23,366.1 $ ( 19,305.4 ) $ ( 1,851.9 ) $ 4,626.7

Nine Months Ended

March 31, 2025

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

8 unchanged sentences

— — ( 1,834.6 ) — — ( 1,834.6 )

Balance at December 31, 2024 $ 63.9 $ 2,619.6 $ 24,335.6 $ ( 20,412.3 ) $ ( 1,528.7 ) $ 5,078.1

Six Months Ended

December 31, 2023

Balance at March 31, 2025 $ 63.9 $ 2,720.8 $ 24,956.6 $ ( 20,700.0 ) $ ( 1,186.0 ) $ 5,855.3

Nine Months Ended

March 31, 2024

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

8 unchanged sentences

— — ( 1,674.6 ) — — ( 1,674.6 )

Balance at December 31, 2023 $ 63.9 $ 2,262.9 $ 22,757.1 $ ( 19,019.1 ) $ ( 1,745.2 ) $ 4,319.6

Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”)

Balance at March 31, 2024 $ 63.9 $ 2,354.0 $ 23,366.1 $ ( 19,305.4 ) $ ( 1,851.9 ) $ 4,626.7

Reclassifications out of Accumulated Other Comprehensive Income/(Loss) (“AOCI”)

Changes in AOCI by component are as follows:

Three Months Ended

December 31, 2024

March 31, 2025

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss)/Income

Balance at September 30, 2024 $ ( 329.6 ) $ ( 511.3 ) $ ( 28.6 ) $ ( 230.7 ) $ ( 1,100.2 )

Balance at December 31, 2024 $ ( 430.6 ) $ ( 840.4 ) $ ( 27.5 ) $ ( 230.2 ) $ ( 1,528.7 )

Other comprehensive income/(loss) before reclassification adjustments 45.3 386.2 ( 4.7 ) — 426.8

2 unchanged sentences

Tax effect — — ( 0.3 ) ( 0.2 ) ( 0.5 )

Balance at December 31, 2024 $ ( 430.6 ) $ ( 840.4 ) $ ( 27.5 ) $ ( 230.2 ) $ ( 1,528.7 )

Balance at March 31, 2025 $ ( 385.3 ) $ ( 541.6 ) $ ( 29.9 ) $ ( 229.2 ) $ ( 1,186.0 )

Three Months Ended

December 31, 2023

March 31, 2024

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss)/Income

Balance at September 30, 2023 $ ( 385.4 ) $ ( 1,824.6 ) $ ( 22.5 ) $ ( 235.3 ) $ ( 2,467.8 )

Balance at December 31, 2023 $ ( 331.5 ) $ ( 1,157.5 ) $ ( 21.6 ) $ ( 234.6 ) $ ( 1,745.2 )

Other comprehensive income/(loss) before reclassification adjustments ( 37.4 ) ( 91.0 ) — — ( 128.4 )

2 unchanged sentences

Tax effect — ( 0.2 ) ( 0.3 ) ( 0.2 ) ( 0.7 )

Balance at December 31, 2023 $ ( 331.5 ) $ ( 1,157.5 ) $ ( 21.6 ) $ ( 234.6 ) $ ( 1,745.2 )

Six Months Ended

December 31, 2024

Balance at March 31, 2024 $ ( 368.9 ) $ ( 1,228.4 ) $ ( 20.8 ) $ ( 233.8 ) $ ( 1,851.9 )

Nine Months Ended

March 31, 2025

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss)/Income

4 unchanged sentences

Tax effect — ( 0.1 ) ( 1.0 ) ( 0.7 ) ( 1.8 )

Balance at December 31, 2024 $ ( 430.6 ) $ ( 840.4 ) $ ( 27.5 ) $ ( 230.2 ) $ ( 1,528.7 )

Six Months Ended

December 31, 2023

Balance at March 31, 2025 $ ( 385.3 ) $ ( 541.6 ) $ ( 29.9 ) $ ( 229.2 ) $ ( 1,186.0 )

Nine Months Ended

March 31, 2024

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss)/Income

4 unchanged sentences

Tax effect — ( 1.1 ) ( 0.8 ) ( 0.6 ) ( 2.5 )

Balance at December 31, 2023 $ ( 331.5 ) $ ( 1,157.5 ) $ ( 21.6 ) $ ( 234.6 ) $ ( 1,745.2 )

(A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings.

(B) Reclassification adjustments out of AOCI are included in net pension (income)/expense (see Note 12).

Balance at March 31, 2024 $ ( 368.9 ) $ ( 1,228.4 ) $ ( 20.8 ) $ ( 233.8 ) $ ( 1,851.9 )

(A) Reclassification adjustments out of AOCI are included within Other income, net, on the Statements of Consolidated Earnings.

(B) Reclassification adjustments out of AOCI are included in net pension income (see Note 12).

(C) Reclassification adjustments out of AOCI are included in Interest expense on the Statements of Consolidated Earnings (see Note 11).

6 unchanged sentences

Segment Results:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

4 unchanged sentences

Earnings before Income Taxes

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements