Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 6 Months Ended
Nov. 30, 2019
Nov. 30, 2018
 [1]
Operating activities    
Net income $ 522.9 $ 479.4
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization on property and equipment and intangible assets 107.9 72.7
Amortization of premiums and discounts on available-for-sale securities, net 20.4 27.7
Amortization of deferred costs 92.4 89.5
Stock-based compensation costs 23.8 22.8
(Benefit)/provision for deferred income taxes (2.7) 10.9
Provision for allowance for doubtful accounts 3.4 1.5
Net realized (gains)/losses on sales of available-for-sale securities (1.8) 0.2
Changes in operating assets and liabilities:    
Interest receivable (1.6) 3.6
Accounts receivable and PEO unbilled receivables, net (53.2) (71.6)
Prepaid expenses and other current assets (44.5) (26.7)
Accounts payable and other current liabilities (14.5) (30.2)
Deferred costs (85.3) (82.2)
Net change in other long-term assets and liabilities (2.7) (0.4)
Net change in operating lease right-of-use assets and liabilities 0.1
Net cash provided by operating activities 564.6 497.2
Investing activities    
Purchases of available-for-sale securities (13,537.8) (21,248.8)
Proceeds from sales and maturities of available-for-sale securities 14,167.1 21,364.3
Purchases of property and equipment (59.9) (60.8)
Purchases of other assets (4.2) (1.0)
Net cash provided by investing activities 565.2 53.7
Financing activities    
Net change in client fund obligations (88.0) (1,017.6)
Net proceeds from short-term borrowings 51.3 57.3
Dividends paid (444.3) (402.7)
Repurchases of common shares (171.9) (32.8)
Activity related to equity-based plans 7.9 12.2
Net cash used in financing activities (645.0) (1,383.6)
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents 484.8 (832.7)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period 935.2 2,300.5
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period 1,420.0 1,467.8
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the Consolidated Balance Sheets:    
Cash and cash equivalents 600.6 510.6
Restricted cash 62.7
Restricted cash and restricted cash equivalents included in funds held for clients $ 756.7 $ 957.2
[1] Amounts have been adjusted to reflect adoption of Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).”