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Consolidated Statements of Cash Flows (unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities    
Net income $ 135,196 $ 105,651 [1]
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 30,644 20,910 [1]
Accretion of discounts on available-for-sale securities (646) (860) [1]
Amortization of debt issuance costs 26 24 [1]
Stock-based compensation expense 41,122 31,508 [1]
Cash paid for derivative settlement (26) (168) [1]
(Gain)/loss on derivative 1,789 (1,259) [1]
Deferred income taxes, net 15,715 15,077 [1]
Changes in operating assets and liabilities:    
Accounts receivable 805 (637) [1]
Prepaid expenses (5,066) (2,952) [1]
Inventory (181) (56) [1]
Other assets (2,367) (111) [1]
Deferred contract costs (53,654) (39,881) [1]
Accounts payable (970) 1,789 [1]
Income taxes, net (5,550) 591 [1]
Accrued commissions and bonuses (2,239) (3,131) [1]
Accrued payroll and vacation 6,931 5,922 [1]
Deferred revenue 8,714 9,190 [1]
Accrued expenses and other current liabilities 6,176 4,242 [1]
Net cash provided by operating activities 176,419 145,849 [1]
Cash flows from investing activities    
Purchase of short-term investments from funds held for clients (61,268) (137,614) [1]
Proceeds from maturities of short-term investments from funds held for clients 54,200 95,500 [1]
Purchases of property and equipment (71,080) (44,264) [1]
Net cash used in investing activities (78,148) (86,378) [1]
Cash flows from financing activities    
Repurchases of common stock [1]   (42,857)
Withholding taxes paid related to net share settlement (42,229) (20,115) [1]
Payments on long-term debt (1,331) (444) [1]
Net change in client funds obligation (131,869) (186,454) [1]
Payment of debt issuance costs (16) (58) [1]
Net cash used in financing activities (175,445) (249,928) [1]
Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents (77,174) (190,457) [1]
Cash, cash equivalents, restricted cash and restricted cash equivalents    
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period 986,464 1,098,860 [1]
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period 909,290 908,403 [1]
Cash and cash equivalents 108,127 85,048 [1]
Restricted cash included in funds held for clients $ 801,163 $ 823,355 [1]
[1] Amounts have been adjusted to reflect the adoption of Accounting Standards Update No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” See Note 2 for a summary of reclassifications and adjustments.