Paychex 2014 Annual Report Download - page 58

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PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In millions
Year ended May 31, 2014 2013 2012
Operating activities
Net income ............................................... $ 627.5 $ 569.0 $ 548.0
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization on property and equipment and
intangible assets ....................................... 105.0 98.2 97.8
Amortization of premiums and discounts on available-for-sale
securities ............................................. 70.3 56.2 42.5
Stock-based compensation costs ............................. 26.3 22.8 22.9
(Benefit)/provision for deferred income taxes .................. (4.9) 5.3 11.7
Provision for allowance for doubtful accounts .................. 2.5 1.7 1.2
Net realized gains on sales of available-for-sale securities ......... (0.6) (0.9) (1.0)
Changes in operating assets and liabilities:
Interest receivable ........................................ (3.9) (1.8) (1.2)
Accounts receivable ...................................... (18.2) 8.3 17.6
Prepaid expenses and other current assets ..................... 22.5 (45.6) (9.4)
Accounts payable and other current liabilities .................. 45.1 (16.6) (26.9)
Net change in other assets and liabilities ...................... 9.3 (21.3) 3.4
Net cash provided by operating activities ...................... 880.9 675.3 706.6
Investing activities
Purchases of available-for-sale securities ........................ (29,850.5) (28,332.8) (10,180.5)
Proceeds from sales and maturities of available-for-sale securities .... 30,080.6 27,620.2 9,817.4
Net change in funds held for clients’ money market securities and
other cash equivalents ..................................... (441.5) 1,019.4 (784.3)
Purchases of property and equipment ........................... (84.1) (98.7) (89.6)
Acquisition of businesses, net of cash acquired ................... (9.3) (21.3) (6.0)
Purchases of other assets ..................................... (11.3) (5.1) (1.3)
Net cash (used in)/provided by investing activities .............. (316.1) 181.7 (1,244.3)
Financing activities
Net change in client fund obligations ........................... 127.4 (454.6) 980.5
Dividends paid ............................................. (510.6) (476.7) (460.5)
Repurchases of common shares ............................... (249.7) — —
Equity activity related to stock-based awards ..................... 113.3 72.8 7.5
Net cash (used in)/provided by financing activities .............. (519.6) (858.5) 527.5
Increase/(decrease) in cash and cash equivalents ................ 45.2 (1.5) (10.2)
Cash and cash equivalents, beginning of fiscal year ................ 107.3 108.8 119.0
Cash and cash equivalents, end of fiscal year ................... $ 152.5 $ 107.3 $ 108.8
See Notes to Consolidated Financial Statements.
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