ADP 2015 Annual Report Download - page 33

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(In millions)
Years ended June 30,
$ Change
2016
2015
2014
2016
2015
Cash provided by (used in):
Operating activities
$ 1,859.9
$ 1,905.6
$ 1,821.4
$ (45.7)
$ 84.2
Investing activities
(9,087.2)
(3,760.3)
813.3
(5,326.9)
(4,573.6)
Financing activities
8,790.1
1,616.7
(2,358.2)
7,173.4
3,974.9
Effect of exchange rate changes on cash and cash
equivalents
(11.0)
(106.3)
8.0
95.3
(114.3)
Net change in cash and cash equivalents
$ 1,551.8
$ (344.3)
$ 284.5
$ 1,896.1
$ (628.8)
Fiscal2016ComparedtoFiscal2015
Net cash flows provided by operating activities decrease d due to $226.7 million received from the sale of notes receivable related to Dealer Services
financing arrangements during fiscal 2015.
Net cash flows used in investing activities increased due to the timing of receipts and disbursements of restricted cash and cash equivalents held to satisfy
client funds obligations of $5,257.6 million and the receipt of the CDK Global, Inc.("CDK") dividend during fiscal 2015 , partially offset by the timing of
purchases of and proceeds from corporate and client funds marketable securities of $545.7 million.
Net cash flows provided by financing activities increased due to the net increase in client funds obligations of $2,728.9 million , as a result of the timing
of cash received and payments made related to client funds, proceeds from our $2.0 billion September 2015 debt issuance, a decrease in our repurchases of
common stock, and the timing of borrowings and repayments of commercial paper. We purchased approximately 13.8 million shares of our common stock at an
average price per share of $82.88 during fiscal 2016 as compared to purchases of 18.2 million shares at an average price per share of $85.28 during fiscal 2015 .
From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase programs. 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.
Fiscal2015ComparedtoFiscal2014
Net cash flows provided by operating activities increased due to $226.7 million received from the sale of notes receivable related to Dealer Services
financing arrangements and a lower pension contribution of $74.8 million for fiscal 2015, as compared to fiscal 2014.
Net cash flows of investing activities changed due to the timing of receipts and disbursements of restricted cash and cash equivalents held to satisfy client
funds obligations of $5,498.4 million, partially offset by the receipt of the CDK dividend during fiscal 2015.
Net cash flows of financing activities changed due to the net increase in client funds obligations of $9,063.9 million, as a result of the timing of cash
received and payments made related to client funds, partially offset by an increase in our repurchases of common stock and the timing of borrowings and
repayments of commercial paper.
Capital Resources and Client Fund Obligations
In September 2015, we issued $2.0 billion of senior unsecured notes with maturity dates in 2020 and 2025. We may from time to time revisit the long-
term debt market to refinance existing debt, finance investments including acquisitions for our growth, and maintain the appropriate capital structure. However,
there can be no assurance that volatility in the global capital and credit markets would not impair our ability to access these markets on terms acceptable to us, or at
all. See Note 8 of our consolidated financial statements for a description of our long-term financing including this fiscal 2016 debt issuance.
Our U.S. short-term funding requirements related to client funds are sometimes obtained on an unsecured basis through the issuance of commercial paper,
rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. During the majority of fiscal 2016 , this
commercial paper program provided for the issuance of up to $8.25 billion in aggregate maturity value and in June 2016, we increased our commercial paper
program to
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