Analysis of Debt

Automatic Data Processing Inc., balance sheet: debt

US$ in thousands

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Obligations under reverse repurchase agreements	23,500)	13,600)	262,000)	—)	—)	—)
Short-term debt	—)	1,001,800)	—)	—)	—)	—)
Long-term debt	2,985,000)	1,002,800)	2,002,200)	2,002,400)	2,002,400)	2,007,700)
Total debt (carrying amount)	3,008,500)	2,018,200)	2,264,200)	2,002,400)	2,002,400)	2,007,700)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Automatic Data Processing Inc. total debt decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

	Jun 30, 2021
Selected Financial Data (US$ in thousands)
Obligations under reverse repurchase agreements	23,500)
Notes	3,060,400)
Other	6,900)
Total debt (fair value)	3,090,800)
Financial Ratio
Debt, fair value to carrying amount ratio	1.03

Weighted average effective interest rate on debt: 2.37%

Interest rate	Debt amount¹	Interest rate × Debt amount
0.20%	23,500)	47)
3.47%	1,000,000)	34,700)
1.83%	1,000,000)	18,300)
1.85%	1,000,000)	18,500)
Total	3,023,500)	71,547)
2.37%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 71,547 ÷ 3,023,500 = 2.37%

Automatic Data Processing Inc. (NASDAQ:ADP)