Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.24.2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
May 31, 2024
May 31, 2023
May 31, 2022
Operating activities      
Net income $ 1,690.4 $ 1,557.3 [1] $ 1,392.8 [1]
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 176.5 176.6 [1] 191.8 [1]
Amortization of premiums and discounts on AFS securities, net (7.0) 18.2 [1] 28.9 [1]
Amortization of deferred contract costs 231.7 219.1 [1] 202.1 [1]
Stock-based compensation costs 61.1 62.6 [1] 52.8 [1]
(Benefit from)/provision for deferred income taxes (29.8) (44.0) [1] 2.3 [1]
Provision for credit losses 19.8 17.7 [1] 10.5 [1]
Net realized losses/(gains) on sales of AFS securities 2.6 9.8 [1] (0.2) [1]
Net realized losses on disposal of assets 32.8 1.3 [1] 0.4 [1]
Changes in operating assets and liabilities:      
Interest receivable 1.1 (2.1) [1] 2.1 [1]
Accounts receivable and PEO unbilled receivables, net 113.0 (135.7) [1] (154.1) [1]
Prepaid expenses and other current assets (25.2) (17.8) [1] (7.7) [1]
Accounts payable and other current liabilities (127.0) 86.3 [1] 113.1 [1]
Deferred costs (244.9) (269.4) [1] (267.1) [1]
Net change in other long-term assets and liabilities 6.1 30.6 [1] 25.9 [1]
Net change in operating lease right-of-use assets and liabilities (3.5) (4.3) [1] (3.9) [1]
Net cash provided by operating activities 1,897.7 1,706.2 [1] 1,589.7 [1]
Investing activities      
Purchases of AFS securities (6,868.5) (14,585.3) [1] (17,807.7) [1]
Proceeds from sales and maturities of AFS securities 7,161.2 14,943.2 [1] 16,554.9 [1]
Net change in purchased receivables (153.8) (6.8) [1] (84.2) [1]
Purchases of property and equipment (161.4) (143.0) [1] (133.8) [1]
Proceeds from sales of property and equipment 0.0 16.7 [1] 1.2 [1]
Acquisition of businesses, net of cash acquired (208.3) (2.7) [1] (24.9) [1]
Purchases of other assets (30.1) (10.4) [1] (10.6) [1]
Net cash (used in)/provided by investing activities (260.9) 211.7 [1] (1,505.1) [1]
Financing activities      
Net change in client fund obligations (425.3) 474.8 [1] 143.2 [1]
Net proceeds from short-term borrowings 9.0 2.0 [1] 1.3 [1]
Dividends paid (1,315.3) (1,175.0) [1] (999.6) [1]
Repurchases of common shares (169.2)   (145.2) [1]
Contingent consideration paid for acquisitions [1]   (2.8) (1.6)
Activity related to equity-based plans 26.1 (10.4) [1] 22.6 [1]
Net cash used in financing activities (1,874.7) (711.4) [1] (979.3) [1]
Net change in cash, restricted cash, and equivalents (237.9) 1,206.5 [1] (894.7) [1]
Cash, restricted cash, and equivalents, beginning of fiscal year [1] 2,134.9 928.4 1,823.1
Cash, restricted cash, and equivalents, end of fiscal year 1,897.0 2,134.9 [1] 928.4 [1]
Reconciliation of cash, restricted cash, and equivalents      
Cash and cash equivalents 1,468.9 1,222.0 [1] 370.0 [1]
Restricted cash 47.8 49.8 [1] 75.8 [1]
Restricted cash and restricted cash equivalents included in funds held for clients 380.3 863.1 [1] 482.6 [1]
Total cash, restricted cash, and equivalents $ 1,897.0 $ 2,134.9 [1] $ 928.4 [1]
[1] The consolidated statement of cash flows for the fiscal years ended May 31, 2023 and May 31, 2022 include revisions to previously reported amounts related to the presentation of cash flows associated with short-term receivables purchased from the Company’s clients under non-recourse arrangements, net of funding reserves. See Note A for further discussion on the revision.