Name: Automatic Data Processing Inc. (NASDAQ:ADP) | Cash Flow Statement (Quarterly)
Creator: Stock Analysis on Net

Cash Flow Statement
Quarterly Data

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.

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Automatic Data Processing Inc., consolidated cash flow statement (quarterly data)

US$ in thousands

3 months ended:	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015
Net earnings	928,500)	694,400)	700,500)	538,200)	810,700)	647,500)	602,100)	411,600)	820,900)	651,600)	582,400)	475,400)	753,800)	558,200)	505,400)	108,700)	643,100)	467,500)	401,500)	265,800)	588,000)	510,900)	368,700)	282,000)	532,500)	341,400)	336,600)
Depreciation and amortization	129,000)	126,500)	129,100)	126,000)	126,900)	126,700)	131,100)	124,500)	120,600)	117,600)	117,300)	109,400)	103,100)	97,500)	99,000)	99,300)	96,300)	94,800)	87,200)	82,500)	77,600)	78,400)	77,600)	73,900)	73,300)	72,600)	68,800)
Amortization of deferred contract costs	239,400)	237,600)	237,300)	234,800)	235,600)	232,600)	232,300)	227,600)	231,400)	228,700)	227,300)	218,800)	220,600)	217,700)	216,900)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Deferred income taxes	(44,300)	20,800)	25,600)	(212,800)	(39,600)	(22,200)	23,500)	(31,700)	13,600)	(300)	44,400)	5,200)	(28,900)	6,600)	26,400)	(17,500)	10,700)	(39,100)	46,400)	(12,200)	(5,500)	(4,200)	31,900)	(21,700)	(14,300)	7,300)	29,400)
Stock-based compensation expense	48,300)	55,600)	42,300)	48,900)	45,500)	47,100)	33,800)	24,100)	33,400)	36,200)	37,100)	45,100)	45,200)	38,600)	38,400)	56,000)	41,700)	38,700)	39,000)	37,700)	34,300)	35,800)	31,100)	35,200)	31,700)	36,000)	34,700)
Excess tax benefit related to exercise of stock options and restricted stock	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(3,800)	(10,900)	(6,800)	(15,900)
Net pension (income) expense	(15,800)	(15,800)	(15,800)	(16,900)	(13,900)	(10,900)	(11,100)	3,000)	(14,200)	2,300)	(2,700)	14,400)	9,500)	14,400)	17,100)	322,200)	2,700)	2,800)	2,700)	6,100)	6,000)	6,000)	6,100)	4,500)	4,400)	4,400)	4,400)
Net amortization of premiums and accretion of discounts on available-for-sale securities	27,600)	25,800)	22,700)	20,800)	20,000)	16,300)	12,400)	9,500)	14,400)	14,100)	12,200)	11,200)	11,500)	13,100)	14,300)	15,900)	17,700)	18,500)	19,400)	19,800)	20,600)	22,300)	23,200)	23,100)	23,000)	23,900)	24,100)
Impairment of assets	—)	—)	—)	12,300)	2,600)	2,200)	2,800)	29,900)	—)	—)	—)	—)	—)	—)	12,100)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Gain on sale of assets	—)	—)	—)	(6,400)	(1,600)	(1,600)	(200)	(3,900)	—)	(200)	(1,900)	(15,700)	—)	(4,100)	—)	(400)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(13,900)	—)
Gain on sale of divested businesses, net of tax	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(121,400)	—)	—)	—)	—)	(21,800)
Other	(11,400)	4,900)	1,900)	17,000)	15,800)	(3,700)	6,100)	20,500)	38,400)	(5,400)	11,900)	18,600)	7,200)	8,000)	10,100)	9,900)	7,200)	5,200)	9,600)	12,300)	11,200)	5,400)	8,200)	7,800)	13,100)	4,000)	5,800)
(Increase) decrease in accounts receivable	(507,600)	25,800)	(51,800)	25,400)	(278,700)	(7,800)	(78,700)	167,800)	(82,800)	(102,000)	(96,800)	52,800)	143,300)	(430,800)	(239,200)	(52,500)	97,800)	(255,400)	(81,700)	113,500)	29,600)	(240,700)	121,000)	321,200)	(434,600)	(78,900)	(32,300)
(Increase) decrease in other assets	(268,300)	(174,400)	(494,200)	(235,400)	(150,700)	(188,500)	(454,800)	(148,100)	(156,900)	(213,700)	(391,700)	(238,300)	(154,500)	(123,200)	(471,200)	132,100)	206,100)	14,800)	(259,500)	(116,200)	(8,800)	77,500)	(221,600)	97,800)	19,400)	23,100)	(249,200)
Increase (decrease) in accounts payable	(21,400)	42,000)	(61,900)	27,100)	(400)	4,500)	5,700)	(14,700)	(15,900)	27,400)	(15,100)	(36,100)	6,400)	21,300)	(2,300)	29,200)	(28,400)	21,800)	(24,500)	17,900)	(13,400)	20,200)	(36,300)	(18,200)	20,300)	1,500)	(19,500)
Increase (decrease) in accrued expenses and other liabilities	467,000)	50,500)	(413,800)	73,800)	480,000)	(135,800)	(23,100)	(43,500)	115,800)	(58,200)	(91,600)	71,500)	(92,700)	365,000)	(77,800)	2,300)	40,000)	60,800)	4,600)	30,000)	88,000)	121,100)	(80,100)	(142,700)	450,200)	(15,100)	(71,900)
Changes in operating assets and liabilities	(330,300)	(56,100)	(1,021,700)	(109,100)	50,200)	(327,600)	(550,900)	(38,500)	(139,800)	(346,500)	(595,200)	(150,100)	(97,500)	(167,700)	(790,500)	111,100)	315,500)	(158,000)	(361,100)	45,200)	95,400)	(21,900)	(217,000)	258,100)	55,300)	(69,400)	(372,900)
Adjustments to reconcile net earnings to cash flows provided by operating activities	42,500)	399,300)	(578,600)	114,600)	441,500)	58,900)	(120,200)	365,000)	297,800)	46,500)	(149,600)	256,900)	270,700)	224,100)	(356,200)	596,500)	491,800)	(37,100)	(156,800)	191,400)	239,600)	400)	(38,900)	377,100)	175,600)	58,100)	(243,400)
Net cash flows provided by operating activities	971,000)	1,093,700)	121,900)	652,800)	1,252,200)	706,400)	481,900)	776,600)	1,118,700)	698,100)	432,800)	732,300)	1,024,500)	782,300)	149,200)	705,200)	1,134,900)	430,400)	244,700)	457,200)	827,600)	511,300)	329,800)	659,100)	708,100)	399,500)	93,200)
Purchases of corporate and client funds marketable securities	(3,720,700)	(2,810,700)	(2,412,600)	(2,118,000)	(3,593,500)	(2,742,000)	(812,800)	(10,500)	(1,019,300)	(1,465,400)	(1,409,900)	(1,696,800)	(1,425,000)	(545,000)	(755,800)	(1,184,100)	(1,238,500)	(1,296,900)	(1,157,300)	(912,800)	(1,110,500)	(1,188,400)	(1,171,100)	(1,635,400)	(1,801,400)	(1,579,700)	(859,800)
Proceeds from the sales and maturities of corporate and client funds marketable securities	1,370,000)	717,800)	1,279,100)	1,078,800)	2,327,100)	1,635,800)	1,196,700)	2,898,500)	1,754,700)	1,341,500)	1,653,700)	818,400)	927,200)	623,600)	539,800)	752,500)	836,500)	858,300)	1,007,700)	889,000)	826,600)	977,900)	900,100)	1,154,200)	1,397,000)	1,408,900)	1,255,300)
Net (increase) decrease in restricted cash and cash equivalents held to satisfy client funds obligations	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	6,755,900)	(3,125,300)	(5,947,800)	9,160,800)	7,751,700)	(9,906,700)	(5,925,400)	(137,800)
Capital expenditures	(51,000)	(39,900)	(35,900)	(33,300)	(64,300)	(37,500)	(43,500)	(33,400)	(38,600)	(43,900)	(56,800)	(41,700)	(40,300)	(36,800)	(43,200)	(46,500)	(41,300)	(45,000)	(73,300)	(65,700)	(54,800)	(71,000)	(48,700)	(40,900)	(28,200)	(43,800)	(55,600)
Additions to intangibles	(101,600)	(87,500)	(93,200)	(87,100)	(92,100)	(71,700)	(76,400)	(182,700)	(93,300)	(79,500)	(88,200)	(74,600)	(190,600)	(65,500)	(73,800)	(68,900)	(63,400)	(62,700)	(69,700)	(68,300)	(55,500)	(49,400)	(57,200)	(57,400)	(54,400)	(60,300)	(45,400)
Acquisitions of businesses, net of cash acquired	—)	(11,700)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(5,100)	—)	(700)	(119,700)	—)	(125,000)	(487,400)	—)	(700)	(66,700)	—)	(20,000)	—)	—)	—)	—)
Proceeds from sale of property, plant, and equipment and other assets	8,000)	—)	26,200)	11,000)	6,000)	1,600)	200)	5,800)	—)	200)	23,400)	—)	—)	7,900)	—)	400)	—)	—)	—)	—)	—)	—)	—)	—)	—)	15,700)	—)
Proceeds from the sale of divested businesses	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	234,000)	—)	—)	—)	(300)	162,500)
Net cash flows (used in) provided by investing activities	(2,495,300)	(2,232,000)	(1,236,400)	(1,148,600)	(1,416,800)	(1,213,800)	264,200)	2,677,700)	603,500)	(247,100)	122,200)	(999,800)	(728,700)	(16,500)	(452,700)	(546,600)	(631,700)	(1,033,700)	(292,600)	6,597,400)	(3,586,200)	(6,044,700)	8,763,900)	7,172,200)	(10,393,700)	(6,184,900)	319,200)
Net increase (decrease) in client funds obligations	13,612,900)	(684,800)	12,100,600)	(6,663,700)	4,963,500)	6,833,100)	3,203,300)	(4,564,700)	(5,742,200)	15,157,000)	(8,063,300)	(6,916,000)	10,179,100)	144,400)	(1,711,500)	(6,359,800)	(506,900)	8,881,400)	(1,674,300)	(6,757,300)	3,436,600)	6,128,400)	(8,928,300)	(7,294,800)	10,304,500)	6,068,700)	(275,100)
Payments of debt	(200)	(300)	(200)	(200)	(500)	(500)	(1,000,600)	(600)	(500)	(600)	(500)	(500)	(500)	(600)	(500)	(500)	(500)	(5,400)	(900)	(500)	(500)	(500)	(500)	(500)	200)	(600)	(600)
Proceeds from the issuance of debt	7,300)	—)	—)	990,400)	—)	—)	991,100)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	12,000)	(100)	1,986,400)
Settlement of cash flow hedges	—)	—)	—)	(1,000)	—)	—)	(43,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Repurchases of common stock	(491,400)	(462,500)	(528,000)	(469,800)	(427,400)	(261,500)	(213,600)	—)	(391,200)	(305,400)	(309,700)	(177,100)	(234,000)	(299,500)	(227,100)	(393,100)	(187,900)	(158,200)	(250,100)	(302,800)	(191,500)	(436,700)	(328,600)	(64,700)	(318,000)	(464,900)	(308,100)
Net proceeds from stock purchase plan and stock-based compensation plans	23,100)	67,100)	(16,700)	30,600)	34,400)	47,000)	(7,900)	16,700)	37,700)	27,700)	(32,100)	22,400)	45,000)	29,900)	(24,400)	23,200)	51,600)	9,600)	(15,100)	21,200)	55,300)	33,600)	(14,400)	22,600)	49,400)	25,300)	(22,000)
Excess tax benefit related to exercise of stock options and restricted stock	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	3,800)	10,900)	6,800)	15,900)
Dividends paid	(437,700)	(393,800)	(393,200)	(396,000)	(397,800)	(390,700)	(391,000)	(391,600)	(392,900)	(342,700)	(343,300)	(343,400)	(344,600)	(302,400)	(302,600)	(278,600)	(278,400)	(253,000)	(253,700)	(255,800)	(257,100)	(240,500)	(241,800)	(242,400)	(242,400)	(229,800)	(229,000)
Net proceeds (payments) related to reverse repurchase agreements	—)	(45,800)	22,300)	23,500)	—)	—)	(13,600)	13,600)	—)	(428,300)	166,300)	262,000)	—)	(448,400)	448,400)	—)	—)	(129,400)	129,400)	—)	—)	—)	—)	—)	—)	—)	—)
Net proceeds (repayments) of commercial paper borrowings	—)	—)	—)	—)	—)	—)	—)	—)	—)	(3,536,700)	3,536,700)	—)	(1,206,000)	1,206,000)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Other	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(500)	(5,300)	—)	—)	(5,300)	—)	—)	—)	—)	—)	—)	—)	(100)	100)	—)	(23,400)
Net cash flows provided by (used in) financing activities	12,714,000)	(1,520,100)	11,184,800)	(6,486,200)	4,172,200)	6,227,400)	2,524,100)	(4,926,600)	(6,489,100)	10,571,000)	(5,045,900)	(7,153,100)	8,433,700)	329,400)	(1,817,700)	(7,014,100)	(922,100)	8,345,000)	(2,064,700)	(7,295,200)	3,042,800)	5,484,300)	(9,513,600)	(7,576,100)	9,816,700)	5,405,400)	1,144,100)
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents	6,700)	300)	(21,200)	3,400)	(14,300)	46,800)	37,900)	6,900)	(29,200)	20,900)	(33,100)	5,300)	(2,000)	(19,500)	(12,600)	(47,300)	4,000)	34,900)	14,200)	25,500)	6,100)	(22,300)	5,400)	(5,500)	15,400)	(9,800)	(11,100)
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents	11,196,400)	(2,658,100)	10,049,100)	(6,978,600)	3,993,300)	5,766,800)	3,308,100)	(1,465,400)	(4,796,100)	11,042,900)	(4,524,000)	(7,415,300)	8,727,500)	1,075,700)	(2,133,800)	(6,902,800)	(414,900)	7,776,600)	(2,098,400)	(215,100)	290,300)	(71,400)	(414,500)	249,700)	146,500)	(389,800)	1,545,400)

Net earnings exhibit a general upward trajectory over the analyzed period, growing from 336.6 million USD in September 2015 to 928.5 million USD by March 2022. This growth is accompanied by a corresponding increase in net cash flows provided by operating activities, which frequently exceeded 1 billion USD in several quarters, particularly in March 2018, March 2020, March 2021, and December 2021. However, operational cash flow remains subject to significant quarterly volatility, primarily driven by fluctuations in changes in operating assets and liabilities.

Operating Cash Flow Adjustments: Depreciation and amortization costs show a steady increase, rising from 68.8 million USD to 129.0 million USD. A notable shift occurred in September 2018 with the introduction of amortization of deferred contract costs, which has since remained consistent, averaging between 216 million and 239 million USD per quarter. Stock-based compensation expenses have also increased over time, reflecting a higher baseline of employee incentive costs.
Investing Activity Patterns: Capital expenditures have remained relatively stable, generally fluctuating between 30 million and 75 million USD. In contrast, additions to intangibles have trended upward, growing from 45.4 million USD in 2015 to 101.6 million USD by March 2022, suggesting an increased investment in software or acquired intellectual property. The investing section is heavily dominated by the purchase and sale of corporate and client funds marketable securities, characterized by high-volume turnover that often offsets operational cash flows.
Financing and Shareholder Distributions: A consistent strategy of shareholder remuneration is evident through the steady growth of dividend payments, which increased from 229.0 million USD per quarter in 2015 to 437.7 million USD in March 2022. Concurrently, the repurchase of common stock has intensified, with quarterly outflows rising from approximately 308 million USD to 491.4 million USD. Debt levels appear well-managed, with periodic issuances of debt used to balance cash requirements, such as the 991.1 million USD issuance in September 2020.
Client Fund Volatility: The net change in cash is heavily influenced by the net increase or decrease in client funds obligations. These figures show extreme volatility, with swings ranging from multi-billion dollar increases to multi-billion dollar decreases. These movements are closely mirrored by the proceeds from and purchases of marketable securities, indicating that a substantial portion of the cash flow activity relates to the management of fiduciary client funds rather than core corporate operations.

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Automatic Data Processing Inc. (NASDAQ:ADP)

Cash Flow StatementQuarterly Data

Cash Flow Statement
Quarterly Data