ADP 2006 Annual Report Download - page 27

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Statements of Consolidated Cash Flows
(In millions)
Years ended June 30, 2006 2005 2004
Cash Flows From Operating Activities
Net earnings $ 1,554.0 $ 1,055.4 $ 935.6
Adjustments to reconcile net earnings to net cash flows provided
by operating activities:
Depreciation and amortization 288.6 273.9 277.1
Deferred income taxes 33.9 21.9 106.2
Stock-based compensation expense 168.4 14.0 12.3
Pension expense 34.5 25.3 16.4
Realized gains (losses) from the sales of marketable securities 4.6 28.5 7.6
Amortization of premiums and discounts on available-for-sale securities 75.4 120.0 129.9
Gain on sale of discontinued operations business, net of tax (452.8) ––
Impairment of assets of discontinued operations business 18.6 ––
Other 32.9 (36.9) 43.5
Operating activities of discontinued operations (11.5) 55.8 38.3
Changes in operating assets and liabilities, net of effects from acquisitions
and divestitures of businesses:
Decrease (increase) in securities deposited with clearing organizations
or segregated in compliance with federal regulations 164.4 (179.8) –
Increase in receivables and other assets (0.6) (139.9) (225.4)
(Decrease) increase in accounts payable, accrued expenses, and other liabilities (94.7) 266.2 43.9
Decrease (increase) in securities clearing receivables 128.4 (16.3) –
Decrease in securities clearing payables (131.6) (54.7) –
Net cash flows provided by operating activities 1,812.5 1,433.4 1,385.4
Cash Flows From Investing Activities
Purchases of marketable securities (5,846.5) (7,599.4) (8,087.2)
Proceeds from the sales and maturities of marketable securities 4,955.0 6,629.1 5,339.3
Net (purchases of) proceeds from client funds securities 1,364.1 (3,765.6) 663.8
Change in client funds obligations (174.3) 5,019.0 1,391.3
Capital expenditures (292.3) (187.3) (188.0)
Additions to intangibles (118.7) (103.4) (145.2)
Acquisitions of businesses, net of cash acquired (336.7) (404.4) (172.4)
Proceeds from the sale of businesses 902.4 17.2 21.5
Other 12.3 4.6 (5.5)
Investing activities of discontinued operations (13.1) (47.7) (136.4)
Net cash flows provided by (used in) investing activities 452.2 (437.9) (1,318.8)
Cash Flows From Financing Activities
Payments of debt (0.7) (1.1) (1.4)
Proceeds from issuance of notes 0.5 0.3 0.4
Repurchases of common stock (1,299.9) (584.4) (629.9)
Proceeds from stock purchase plan and exercises of stock options 264.1 174.6 160.7
Excess tax benefit related to exercises of stock options 7.9 ––
Dividends paid (393.9) (344.9) (308.6)
Financing activities of discontinued operations 73.2 9.0 8.5
Net cash flows used in financing activities (1,348.8) (746.5) (770.3)
Effect of exchange rate changes on cash and cash equivalents 9.3 13.4 6.5
Net change in cash and cash equivalents 925.2 262.4 (697.2)
Cash and cash equivalents, beginning of year 975.4 713.0 1,410.2
Cash and cash equivalents, end of year 1,900.6 975.4 713.0
Less cash and cash equivalents of discontinued operations, end of year –(121.8) (108.2)
Cash and cash equivalents of continuing operations, end of year $ 1,900.6 $ 853.6 $ 604.8
AUTOMATIC DATA PROCESSING, INC. AND SUBSIDIARIES
Our Annual Report on Form 10-K, which includes Management’s Discussion and Analysis, Financial Statements and related Footnotes, is available
online under “Investor Relations” on ADP’s Web site, www.adp.com.