ADP 2012 Annual Report Download - page 22

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Our financial condition and balance sheet remain solid at June 30, 2012, with cash and cash equivalents and marketable securities of $1,665.4
million. Our net cash flows provided by operating activities were $1,910.2 million in fiscal 2012, as compared to $1,705.8 million in fiscal
2011. This increase in cash flows from fiscal 2011 to fiscal 2012 was due to higher net earnings, lower pension plan contributions, and a
favorable change in the net components of working capital, partially offset by a variance in the timing of tax-related net cash payments. The
increase in cash provided by investing activities of $10,584.2 million is due to the timing of receipts and disbursements of restricted cash and
cash equivalents held to satisfy client funds obligations, the amount of cash used for business combinations and cash receipts related to the sale
of property, plant and equipment and other assets. The increase in cash used in financing activities of $10,293.1 million is primarily due to the
timing of cash received and payments made related to client funds, as compared to the prior year.
We have a strong business model with a high percentage of recurring revenues, excellent margins, the ability to generate consistent, healthy
cash flows, strong client retention, and low capital expenditure requirements. We continue to enhance value to our shareholders, and in fiscal
2012 returned excess cash of $739.7 million through dividends and $741.3 million through our share buyback program, while also investing
$265.7 million in new acquisitions. In the last five fiscal years, we have reduced the Company’s common stock outstanding by approximately
10% through share buybacks, net of the effect of common stock issued under employee stock-based compensation programs. We have also
raised the dividend payout per share for 37 consecutive years.
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