ADP 2011 Annual Report Download - page 39

Statements of Consolidated Cash Flows
(In millions)
See notes to consolidated financial statements.
39
Years ended June 30,
2011
2010
2009
Cash Flows From Operating Activities
Net earnings
$
1,254.2
$
1,211.4
$
1,332.6
Adjustments to reconcile net earnings to cash flows provided by operating activities:
Depreciation and amortization
318.2
309.2
307.7
Deferred income taxes
107.6
96.1
(47.9
)
Stock - based compensation expense
76.3
67.6
96.0
Excess tax benefit related to exercises of stock options
(1.0
)
(0.2
)
(1.5
)
Net pension expense
40.7
34.7
33.8
Net realized (gain) loss from the sales of marketable securities
( 34.4
)
(1.6
)
12.4
Net amortization of premiums and accretion of discounts on available - for - sale securities
53.6
57.3
58.3
Impairment losses on available - for - sale securities
-
14.4
-
Impairment losses on assets held for sale
11.7
-
-
(Loss) gain on sales of buildings
(1.8
)
2.3
(2.2
)
Gain on sale of discontinued businesses, net of tax
-
(0.5
)
(4.4
)
Other
35.1
8.9
35.8
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses:
(Increase) in accounts receivable
(138.3
)
(108.8
)
(152.6
)
(Increase) decrease in other assets
(81.3
)
30.0
(85.6
)
(Decrease) increase in accounts payable
(24.6
)
34.7
(9.7
)
Increase (decrease) in accrued expenses and other liabilities
89.8
(73.3
)
(12.6
)
Operating activities of discontinued operations
-
(0.1
)
2.5
Net cash flows provided by operating activities
1,705.8
1,682.1
1,562.6
Cash Flows From Investing Activities
Purchases of corporate and client funds marketable securities
(4,770.9
)
(3,846.7
)
(2,736.5
)
Proceeds from the sales and maturities of corporate and client funds marketable securities
3,305.1
3,406.9
3,320.4
Net increase in restricted cash and cash equivalents and other restricted assets held to satisfy client funds obligations
(4,837.1
)
(1,639.4
)
(731.7
)
Capital expenditures
(181.9
)
(102.9
)
(157.8
)
Additions to intangibles
(95.8
)
(123.8
)
(96.0
)
Acquisitions of businesses, net of cash acquired
(776.0
)
(100.0
)
(67.0
)
Reclassification from cash and cash equivalents to short - term marketable securities
-
-
(211.1
)
Proceeds from the sale of property, plant and equipment
13.1
3.1
25.7
Other
2.9
1.8
10.0
Investing activities of discontinued operations
-
(0.1
)
-
Proceeds from the sale of businesses included in discontinued operations
-
21.6
(0.1
)
Net cash flows used in investing activities
(7,340.6
)
(2,379.5
)
(644.1
)
Cash Flows From Financing Activities
-
Net increase in client funds obligations
6,290.9
2,020.4
885.2
Proceeds from issuance of debt
-
-
12.5
Payments of debt
(5.7
)
(2.9
)
(21.9
)
Net purchases of reverse repurchase agreements
-
-
(11.8
)
Net (repayment) proceeds of commercial paper borrowing
-
(730.0
)
730.0
Repurchases of common stock
(732.8
)
(766.4
)
(580.4
)
Proceeds from stock purchase plan and exercises of stock options
478.2
241.1
82.7
Excess tax benefit related to exercises of stock options
1.0
0.2
1.5
Dividends paid
(692.4
)
(673.4
)
(629.4
)
Net cash flows provided by financing activities
5,339.2
89.0
468.4
Effect of exchange rate changes on cash and cash equivalents
41.7
(13.6
)
(39.1
)
Net change in cash and cash equivalents
(253.9
)
(622.0
)
1,347.8
Cash and cash equivalents of continuing operations, beginning of year
1,643.3
2,265.3
917.5
Cash and cash equivalents of discontinued operations, beginning of year
-
-
-
Cash and cash equivalents, end of year
1,389.4
1,643.3
2,265.3
Less cash and cash equivalents of discontinued operations, end of year
-
-
-
Cash and cash equivalents of continuing operations, end of year
$
1,389.4
$
1,643.3
$
2,265.3