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31
AUTOMATIC DATA PROCESSING, INC. AND SUBSIDIARIES
See notes to consolidated financial statements.
Statements of Consolidated Cash Flows
(In millions)
Years Ended June 30, 2005 2004 2003
Cash Flows From Operating Activities
Net earnings $ 1,055.4 $ 935.6 $ 1,018.2
Adjustments to reconcile net earnings to net cash flows
provided by operating activities:
Depreciation and amortization 304.4 306.8 274.7
Deferred income taxes 18.9 109.1 (15.8)
Amortization of premiums and discounts on available-for-sale securities 120.0 129.9 77.9
Other 44.3 80.4 35.2
Changes in operating assets and liabilities, net of effects
from acquisitions of businesses:
Securities deposited with clearing organizations or
segregated in compliance with federal regulations (179.8) ——
Increase in receivables and other assets (149.6) (233.8) (94.4)
Increase in accounts payable and accrued expenses 290.8 57.4 209.2
Increase in securities clearing receivables (16.3) ——
Decrease in securities clearing payables (54.7) ——
Net cash flows provided by operating activities 1,433.4 1,385.4 1,505.0
Cash Flows From Investing Activities
Purchases of marketable securities (7,599.4) (8,087.2) (3,451.6)
Proceeds from the sales and maturities of marketable securities 6,629.1 5,339.3 4,014.3
Net (purchases of) proceeds from client funds securities (3,765.6) 663.8 1,501.3
Change in client funds obligations 5,019.0 1,391.3 (967.8)
Capital expenditures (196.1) (204.1) (133.8)
Additions to intangibles (112.3) (148.1) (144.7)
Acquisitions of businesses, net of cash acquired (434.4) (295.2) (651.3)
Proceeds from the sale of businesses 17.2 26.9 4.1
Other 4.6 (5.5) 6.6
Net cash flows (used in) provided by investing activities (437.9) (1,318.8) 177.1
Cash Flows From Financing Activities
Payments of debt (1.1) (1.4) (1.4)
Proceeds from issuance of notes 0.4 0.4 1.0
Repurchases of common stock (584.4) (629.9) (938.6)
Proceeds from stock purchase plan and exercises of stock options 183.5 169.2 92.8
Dividends paid (344.9) (308.6) (284.6)
Net cash flows used in financing activities (746.5) (770.3) (1,130.8)
Effect of exchange rate changes on cash and cash equivalents 13.4 6.5 60.1
Net change in cash and cash equivalents 262.4 (697.2) 611.4
Cash and cash equivalents, at beginning of year 713.0 1,410.2 798.8
Cash and cash equivalents, at end of year $ 975.4 $ 713.0 $ 1,410.2