ADP 2014 Annual Report Download - page 45

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Statements of Consolidated Cash Flows
(In millions)
Y ears ended June 30,
2015
2014
2013
Cash Flows from Operating Activities:
Net earnings
$ 1,452.5
$ 1,515.9
$ 1,405.8
Adjustments to reconcile net earnings to cash flows provided by operating activities:
Depreciation and amortization
277.9
266.6
251.2
Deferred income taxes
(15.3)
(37.9)
33.7
Stock-based compensation expense
143.2
117.1
82.0
Excess tax benefit related to exercise of stock options and restricted stock
(68.4)
(49.9)
(16.2)
Net pension expense
17.6
24.3
37.6
Net realized gain from the sales of marketable securities
(4.9)
(16.5)
(28.6)
Net amortization of premiums and accretion of discounts on available-for-sale securities
100.3
94.4
79.3
Goodwill impairment
—
—
42.7
Gains on sales of buildings
—
—
(2.2)
Gain on sale of discontinued businesses, net of tax
(78.4)
(10.5)
(36.7)
Other
6.7
17.0
11.9
Changes in operating assets and liabilities, net of effects from acquisitions
and divestitures of businesses:
Increase in accounts receivable
(175.1)
(170.7)
(183.7)
Increase in other assets
(109.1)
(246.2)
(273.8)
Increase / (decrease) in accounts payable
13.1
9.6
(10.6)
Increase in accrued expenses and other liabilities
122.1
263.8
115.2
Proceeds from the sale of notes receivable
226.7
—
—
Operating activities of discontinued operations
(3.3)
44.4
69.6
Net cash flows provided by operating activities
1,905.6
1,821.4
1,577.2
Cash Flows from Investing Activities:
Purchases of corporate and client funds marketable securities
(5,047.6)
(3,414.9)
(4,902.6)
Proceeds from the sales and maturities of corporate and client funds marketable securities
3,841.0
2,059.5
3,638.6
Net (increase) / decrease in restricted cash and cash equivalents held to satisfy client funds obligations
(2,960.6)
2,537.8
(161.0)
Capital expenditures
(158.8)
(159.8)
(130.3)
Additions to intangibles
(176.7)
(143.6)
(104.9)
Acquisitions of businesses, net of cash acquired
(8.1)
—
(42.0)
Proceeds from the sale of property, plant, and equipment and other assets
23.6
0.4
10.0
Dividend received from CDK Global, Inc.
825.0
—
—
Cash retained by CDK Global, Inc.
(180.0)
—
—
Other
—
—
0.7
Proceeds from the sale of businesses included in discontinued operations
98.6
24.4
161.4
Investing activities of discontinued operations
(16.7)
(90.5)
(48.3)
Net cash flows (used in) provided by investing activities
(3,760.3)
813.3
(1,578.4)
Cash Flows from Financing Activities:
Net increase / (decrease) in client funds obligations
6,074.4
(2,989.5)
1,138.5
Payments of debt
(2.3)
(3.3)
(17.5)
Repurchases of common stock
(1,557.2)
(667.3)
(647.3)
Proceeds from stock purchase plan and exercises of stock options
109.1
194.2
205.7
Excess tax benefit related to exercise of stock options and restricted stock
68.4
49.9
16.2
Dividends paid
(927.6)
(883.1)
(805.5)
Net (repayments of) / proceeds from reverse repurchase agreements
—
(245.9)
245.9
Net (repayments of) / proceeds from issuance of commercial paper
(2,173.0)
2,173.0
—
Other
23.4
(1.1)
—
Financing activities of discontinued operations
1.5
14.9
15.0
Net cash flows provided by / (used in) financing activities
1,616.7
(2,358.2)
151.0