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.

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: Net earnings demonstrate notable volatility over the periods. After a strong rise reaching a peak of 820,900 thousand USD in March 2020, a substantial decline was observed in the subsequent quarter, attributed possibly to external factors impacting earnings. Recovery occurs in later quarters with a new peak of 928,500 thousand USD in March 2022.
Depreciation and Amortization: Depreciation and amortization expenses show a steady upward trend from 68,800 thousand USD in September 2015 to approximately 129,000 thousand USD in March 2022, reflecting ongoing investment in fixed assets and intangible assets.
Amortization of Deferred Contract Costs: This expense appeared starting June 2018, with values generally increasing gradually, indicating the capitalization and systematic amortization of deferred contract costs, which stabilized around 230,000 to 240,000 thousand USD in recent quarters.
Deferred Income Taxes: The data for deferred income taxes fluctuates significantly with both positive and negative values throughout, indicating variability in tax positions or temporary differences. Notable large negative figures occur in late 2021, suggesting potential tax asset valuation adjustments or legislative impacts on tax computations.
Stock-Based Compensation Expense: This expense varies moderately but shows overall incremental trend peaks such as 56,000 thousand USD in June 2018 and 55,600 thousand USD in December 2018, reflecting management incentives and equity plan costs.
Net Pension (Income) Expense: Net pension expense remains relatively low and stable in early years, but a considerable spike occurs in June 2018 with 322,200 thousand USD, indicating extraordinary pension-related adjustments or liabilities recognized that period. Later periods revert to more typical positive or negative small amounts.
Net Amortization of Premiums and Accretion of Discounts: There is a downward trend from 24,100 thousand USD in September 2015 to around 11,500 thousand USD in March 2019, followed by recovery and gradual increase reaching 27,600 thousand USD by March 2022, reflecting fluctuating investment security premiums and discounts.
Impairment of Assets: Impairment charges are sporadic with one significant occurrence of 29,900 thousand USD in December 2019, indicating occasional asset write-downs.
Gain on Sale of Assets and Divested Businesses: Gains on sales show negative entries occasionally, often reflecting losses rather than gains on disposals, with a large negative 121,400 thousand USD related to divested businesses in December 2015, highlighting disposal activity affecting results.
Other Operating Items: Fluctuations are observed in changes in operating assets and liabilities, especially accounts receivable and other assets. Large decreases in accounts receivable occur in some quarters like March 2016 and December 2018, while large increases in accrued expenses and other liabilities are observed sporadically, influencing cash flow volatility.
Net Cash Flows Provided by Operating Activities: CFO generally trends upwards with substantial peaks, notably in March 2018 and March 2021, exceeding 1 billion USD. Noteworthy dips like in September 2017 underscore liquidity fluctuations but overall trend is positive showing strong operational cash generation.
Investing Activities: Investing cash flows are highly volatile with large purchases of marketable securities consistently outpacing proceeds in most quarters, except for select quarters with positive net proceeds. Capital expenditures remain relatively stable, ranging generally between 33,400 and 71,000 thousand USD. Additions to intangibles show a significant spike in March 2019, potentially due to acquisitions or internal development costs. Acquisitions of businesses occur sporadically with high outflows in June 2017 and March 2018.
Financing Activities: Financing cash flows exhibit a pattern of strong stock repurchases, consistently ranging from approximately 158,000 to over 528,000 thousand USD, signaling ongoing capital return to shareholders. Dividends remain steady with a gradual increase over time. Debt payments are minimal and stable, while proceeds from issuance of debt fluctuate, with spikes observed around September 2015 and later periods. Net proceeds from stock purchase plans show moderate variability.
Client Funds Obligations: Significant volatility is present in restricted cash and client funds obligations, with very large increases and decreases reflecting shifts in client deposits or funds under management, indicating a dynamic and changing client asset base.
Exchange Rate Effects: The effect of exchange rate changes on cash and equivalents fluctuates considerably per quarter, with both positive and negative impacts, occasionally reaching values over 40,000 thousand USD, indicating exposure to currency rate volatility.
Overall Cash Position Changes: Net changes in cash, equivalents, and restricted cash show substantial swings, including large inflows and outflows, for example a large negative almost -2.1 billion USD in September 2017 and a strong positive 11.2 billion USD by March 2022. This volatility reflects the combined impact of operating, investing, and financing cash flows as well as currency effects.

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Automatic Data Processing Inc. (NASDAQ:ADP)

Cash Flow Statement Quarterly Data

Cash Flow Statement
Quarterly Data