| Schedule of Error Corrections and Prior Period Adjustments |
The following are selected line items from the Company's combined financial statements illustrating the effect of these immaterial revisions: Condensed Combined Statements of Operations | | | | | | | | | | | | | | | | | | Nine Months Ended March 31, 2014 | | | | Adjustments | | | | As Reported | | Hardware | | NCI | | As Revised | Revenues | $ | 1,469.3 |
| | $ | 1.6 |
| | $ | — |
| | $ | 1,470.9 |
| Cost of revenues | 899.1 |
| | 1.4 |
| | — |
| | 900.5 |
| Selling, general and administrative | 308.3 |
| | 0.3 |
| | (5.2 | ) | | 303.4 |
| Total expenses | 1,207.4 |
| | 1.7 |
| | (5.2 | ) | | 1,203.9 |
| Operating earnings | 261.9 |
| | (0.1 | ) | | 5.2 |
| | 267.0 |
| Other income, net | 0.1 |
| | 1.7 |
| | — |
| | 1.8 |
| Earnings before income taxes | 261.3 |
| | 1.6 |
| | 5.2 |
| | 268.1 |
| Provision for income taxes | (86.3 | ) | | (0.6 | ) | | — |
| | (86.9 | ) | Net earnings | 175.0 |
| | 1.0 |
| | 5.2 |
| | 181.2 |
| Less: net earnings attributable to noncontrolling interest | — |
| | — |
| | 5.2 |
| | 5.2 |
| Net earnings attributable to CDK | $ | 175.0 |
| | $ | 1.0 |
| | $ | — |
| | $ | 176.0 |
|
| | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2014 | | | | Adjustments | | | | As Reported | | Hardware | | NCI | | As Revised | Revenues | $ | 500.5 |
| | $ | 0.6 |
| | $ | — |
| | $ | 501.1 |
| Earnings before income taxes | 98.3 |
| | 0.4 |
| | 1.8 |
| | 100.5 |
| Net earnings | 69.3 |
| | 0.3 |
| | 1.8 |
| | 71.4 |
| Less: net earnings attributable to noncontrolling interest | — |
| | — |
| | 1.8 |
| | 1.8 |
| Net earnings attributable to CDK | $ | 69.3 |
| | $ | 0.3 |
| | $ | — |
| | $ | 69.6 |
|
Condensed Combined Statement of Comprehensive Income | | | | | | | | | | | | | | | | | | Nine Months Ended March 31, 2014 | | | | Adjustments | | | | As Reported | | Hardware | | NCI | | As Revised | Net earnings | $ | 175.0 |
| | $ | 1.0 |
| | $ | 5.2 |
| | $ | 181.2 |
| Other comprehensive income: | | | | | | | | Currency translation adjustments | 30.4 |
| | — |
| | — |
| | 30.4 |
| Other comprehensive income | 30.4 |
| | — |
| | — |
| | 30.4 |
| Comprehensive income | 205.4 |
| | 1.0 |
| | 5.2 |
| | 211.6 |
| Less: comprehensive income attributable to noncontrolling interest | — |
| | — |
| | 5.2 |
| | 5.2 |
| Comprehensive income attributable to CDK | $ | 205.4 |
| | $ | 1.0 |
| | $ | — |
| | $ | 206.4 |
|
Condensed Combined Balance Sheet | | | | | | | | | | | | | | | | | | June 30, 2014 | | | | Adjustments | | | | As Reported | | Hardware | | NCI | | As Revised | Assets | | | | | | | | Current assets: | | | | | | | | Accounts receivable, net | $ | 299.1 |
| | $ | 11.6 |
| | $ | — |
| | $ | 310.7 |
| Other current assets | 164.6 |
| | (0.5 | ) | | — |
| | 164.1 |
| Total current assets | 907.1 |
| | 11.1 |
| | — |
| | 918.2 |
| Property, plant and equipment, net | 109.9 |
| | (27.3 | ) | | — |
| | 82.6 |
| Other assets | 205.5 |
| | 27.6 |
| | — |
| | 233.1 |
| Total assets | $ | 2,587.2 |
| | $ | 11.4 |
| | — |
| | $ | 2,598.6 |
| | | | | | | | | Liabilities and Equity | | | | | | | | Current liabilities: | | | | | | | | Accrued expenses and other current liabilities | $ | 154.2 |
| | $ | 3.8 |
| | $ | — |
| | $ | 158.0 |
| Total current liabilities | 493.7 |
| | 3.8 |
| | — |
| | 497.5 |
| Deferred income taxes | 76.6 |
| | (0.1 | ) | | — |
| | 76.5 |
| Other liabilities | 43.9 |
| | — |
| | (11.4 | ) | | 32.5 |
| Total liabilities | 797.0 |
| | 3.7 |
| | (11.4 | ) | | 789.3 |
| | | | | | | | | Equity: | | | | | | | | Net parent company investment | 1,704.6 |
| | 7.6 |
| | — |
| | 1,712.2 |
| Accumulated other comprehensive income | 85.6 |
| | 0.1 |
| | — |
| | 85.7 |
| Total CDK stockholders' equity | 1,790.2 |
| | 7.7 |
| | — |
| | 1,797.9 |
| Noncontrolling interest | — |
| | — |
| | 11.4 |
| | 11.4 |
| Total equity | 1,790.2 |
| | 7.7 |
| | 11.4 |
| | 1,809.3 |
| Total liabilities and equity | $ | 2,587.2 |
| | $ | 11.4 |
| | $ | — |
| | $ | 2,598.6 |
|
Condensed Combined Statement of Cash Flows | | | | | | | | | | | | | | | | | | Nine Months Ended March 31, 2014 | | | | Adjustments | | | | As Reported | | Hardware | | NCI | | As Revised | Cash Flows from Operating Activities: | | | | | | | | Net earnings | $ | 175.0 |
| | $ | 1.0 |
| | $ | 5.2 |
| | $ | 181.2 |
| Adjustments to reconcile net earnings to cash flows provided by operating activities: | | | | | | | | Depreciation and amortization | 51.2 |
| | (11.6 | ) | | — |
| | 39.6 |
| Deferred income taxes | (14.7 | ) | | 0.6 |
| | — |
| | (14.1 | ) | Other | (0.7 | ) | | (1.2 | ) | | (5.2 | ) | | (7.1 | ) | Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses: | | | | | | | | Increase in accounts receivable | (34.9 | ) | | (1.1 | ) | | — |
| | (36.0 | ) | Increase in other assets | (9.5 | ) | | (2.2 | ) | | — |
| | (11.7 | ) | (Decrease)/increase in accrued expenses and other liabilities | (32.8 | ) | | 0.1 |
| | 8.0 |
| | (24.7 | ) | Net cash flows provided by/(used in) operating activities | 149.0 |
| | (14.4 | ) | | 8.0 |
| | 142.6 |
| | | | | | | | | Cash Flows from Investing Activities: | | | | | | | | Capital expenditures | (44.8 | ) | | 14.4 |
| | — |
| | (30.4 | ) | Net cash flows (used in)/provided by investing activities | (77.6 | ) | | 14.4 |
| | — |
| | (63.2 | ) | | | | | | | | | Cash Flows from Financing Activities: | | | | | | | | Dividend payments of CVR to minority owners | — |
| | — |
| | (8.0 | ) | | (8.0 | ) | Net cash flows provided by/(used in) financing activities | 18.2 |
| | — |
| | (8.0 | ) | | 10.2 |
|
Combined Statement of Equity | | | | | | | | | | | | | | | | | | June 30, 2014 | | | | Adjustments | | | | As Reported | | Hardware | | NCI | | As Revised | Net Parent Company Investment | | | | | | | | Balance as of June 30, 2014 | $ | 1,704.6 |
| | $ | 7.6 |
| | $ | — |
| | 1,712.2 |
| Accumulated Other Comprehensive Income | | | | | | | | Balance as of June 30, 2014 | 85.6 |
| | 0.1 |
| | — |
| | 85.7 |
| Total CDK Stockholders' Equity | | | | | | | | Balance as of June 30, 2014 | 1,790.2 |
| | 7.7 |
| | — |
| | 1,797.9 |
| Noncontrolling Interest | | | | | | | | Balance as of June 30, 2014 | — |
| | — |
| | 11.4 |
| | 11.4 |
| Total Equity | | | | | | | | Balance as of June 30, 2014 | $ | 1,790.2 |
| | 7.7 |
| | $ | 11.4 |
| | $ | 1,809.3 |
|
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