Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Automatic Data Processing Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Net earnings	2,598,500)	2,466,500)	2,292,800)	1,620,800)	1,733,400)	1,492,500)
Depreciation and amortization	510,700)	480,000)	409,000)	377,600)	316,100)	288,600)
Amortization of deferred contract costs	935,300)	915,000)	874,000)	—)	—)	—)
Deferred income taxes	(251,100)	26,000)	9,300)	500)	10,000)	700)
Stock-based compensation expense	175,300)	130,800)	167,300)	175,400)	138,900)	137,600)
Excess tax benefit related to exercise of stock options and restricted stock	—)	—)	—)	—)	—)	(37,400)
Net pension (income) expense	(52,800)	(11,600)	55,400)	330,400)	24,200)	17,700)
Net amortization of premiums and accretion of discounts on available-for-sale securities	69,500)	50,200)	50,100)	71,500)	85,900)	94,100)
Impairment of assets	19,900)	29,900)	12,100)	—)	—)	—)
Gain on sale of assets	(9,800)	(6,000)	(19,800)	(400)	—)	(13,900)
Gain on sale of divested businesses, net of tax	—)	—)	—)	—)	(121,400)	(21,800)
Other	35,200)	65,400)	43,900)	31,900)	37,100)	30,700)
(Increase) decrease in accounts receivable	(339,800)	(113,800)	(473,900)	(291,800)	23,400)	(224,600)
(Increase) decrease in other assets	(1,029,400)	(910,400)	(987,200)	93,500)	(269,100)	(108,900)
Increase (decrease) in accounts payable	36,900)	(18,300)	(10,700)	(1,900)	(11,600)	(15,900)
Increase (decrease) in accrued expenses and other liabilities	394,900)	(77,500)	266,000)	107,700)	159,000)	220,500)
Changes in operating assets and liabilities	(937,400)	(1,120,000)	(1,205,800)	(92,500)	(98,300)	(128,900)
Adjustments to reconcile net earnings to cash flows provided by operating activities	494,800)	559,700)	395,500)	894,400)	392,500)	367,400)
Net cash flows provided by operating activities	3,093,300)	3,026,200)	2,688,300)	2,515,200)	2,125,900)	1,859,900)
Purchases of corporate and client funds marketable securities	(9,266,300)	(3,905,100)	(4,422,600)	(4,876,800)	(4,382,800)	(5,876,300)
Proceeds from the sales and maturities of corporate and client funds marketable securities	6,238,400)	7,648,400)	2,909,000)	3,455,000)	3,593,600)	5,215,400)
Net (increase) decrease in restricted cash and cash equivalents held to satisfy client funds obligations	—)	—)	—)	—)	6,843,600)	(8,218,200)
Capital expenditures	(178,600)	(172,700)	(162,000)	(206,100)	(240,200)	(168,500)
Additions to intangibles	(327,300)	(443,700)	(404,500)	(264,700)	(230,400)	(217,500)
Acquisitions of businesses, net of cash acquired	—)	—)	(125,500)	(612,400)	(87,400)	—)
Proceeds from the sale of property, plant, and equipment and other assets	18,800)	29,400)	7,900)	400)	—)	15,700)
Proceeds from the sale of divested businesses	—)	—)	—)	—)	234,000)	162,200)
Net cash flows (used in) provided by investing activities	(3,515,000)	3,156,300)	(2,197,700)	(2,504,600)	5,730,400)	(9,087,200)
Net increase (decrease) in client funds obligations	8,336,200)	(3,213,200)	1,696,000)	340,400)	(6,120,600)	8,803,300)
Payments of debt	(1,001,800)	(2,200)	(2,100)	(7,300)	(2,000)	(1,500)
Proceeds from the issuance of debt	1,981,500)	—)	—)	—)	—)	1,998,300)
Settlement of cash flow hedges	(44,600)	—)	—)	—)	—)	—)
Repurchases of common stock	(1,372,300)	(1,006,300)	(937,700)	(989,300)	(1,259,600)	(1,155,700)
Net proceeds from stock purchase plan and stock-based compensation plans	104,100)	50,000)	72,900)	69,300)	95,700)	75,300)
Excess tax benefit related to exercise of stock options and restricted stock	—)	—)	—)	—)	—)	37,400)
Dividends paid	(1,575,500)	(1,470,500)	(1,293,000)	(1,063,700)	(995,200)	(943,600)
Net proceeds (payments) related to reverse repurchase agreements	9,900)	(248,400)	262,000)	—)	—)	—)
Other	—)	—)	(5,800)	(5,300)	—)	(23,400)
Net cash flows provided by (used in) financing activities	6,437,500)	(5,890,600)	(207,700)	(1,655,900)	(8,281,700)	8,790,100)
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents	73,800)	(34,500)	(28,800)	5,800)	14,700)	(11,000)
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents	6,089,600)	257,400)	254,100)	(1,639,500)	(410,700)	1,551,800)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year	7,053,600)	6,796,200)	6,542,100)	8,181,600)	3,191,100)	1,639,300)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year	13,143,200)	7,053,600)	6,796,200)	6,542,100)	2,780,400)	3,191,100)

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

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Cash flow statement item	Description	The company
Net cash flows provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Automatic Data Processing Inc. net cash flows provided by operating activities increased from 2019 to 2020 and from 2020 to 2021.
Net cash flows (used in) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Automatic Data Processing Inc. net cash flows (used in) provided by investing activities increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Net cash flows provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Automatic Data Processing Inc. net cash flows provided by (used in) financing activities decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Automatic Data Processing Inc. (NASDAQ:ADP)

Cash Flow Statement