Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 69

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 69
---
857.0 $643.5 Investing activities(3,458.2)(1,171.8)(2,286.4)Financing activities(1,916.4)9,683.8 (11,600.2)Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents(12.7)(15.7)3.0 Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents$(1,886.8)$11,353.3 $(13,240.1)

Net cash flows provided by operating activities increased due to an increase in growth in our business and timing on collections of accounts receivables, partially offset by a reduction in operational accruals due to timing, as compared to the nine months ended March 31, 2024.

Net cash flows used in investing activities changed primarily due to the acquisition of Workforce Software with a net cash disbursement of $1,158.3 million and the timing of purchases and proceeds of corporate and client funds marketable securities of $1,132.4 million.

Net cash flows used in financing activities changed due to a net decrease in the cash flow from client funds obligations of $10,365.2 million, which is due to the timing of impounds from our clients and payments to our clients' employees and other payees, and a net decrease in cash distributed from the Internal Revenue Service as of March 31, 2025, which is processed to our clients, partially offset by proceeds from the issuance of debt.

From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions. We purchased approximately 3.4 million shares of our common stock at an average price per share of $283.14 during the nine months ended March 31, 2025, as compared to purchases of 3.3 million shares at an average price per share of $242.02 during the nine months ended March 31, 2024.

Capital Resources and Client Funds Obligations

We have $4.0 billion of senior unsecured notes with maturity dates in 2025, 2028, 2030 and 2034. We may from time to time