/2H1   d 1$&|&A%|Page #**'STATEMENTS OF CONSOLIDATED EARNINGS7'Automatic Data Processing, Inc. and Subsidiaries/'(In thousands, except per share amounts)B'- ---------------------------------------------------------"---------------"-------------"----------------'Year ended June 30,   B'- ---------------------------------------------------------"---------------"-------------"----------------B'Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . 6KA FA 3BA "------------- "------------- "--------------B 'Operating expenses. . . . . . . . . . . . . . . . . . . . .  w#7A  1A  dR/AB 'General, administrative and selling expenses . . . . . . .  Z,A  r,(A  U$AB 'Depreciation and amortization . . . . . . . . . . . . . . .  A  A  8AB 'Systems development and programming costs . . . . . . . . .  yA  A  AB'Interest expense. . . . . . . . . . . . . . . . . . . . . . #t _ hQ"-------------"-------------"-------------- ]FA SBA >A"-------------"-------------"--------------9'Earnings before income taxes and cumulative effect@'of accounting changes . . . . . . . . . . . . . . . . . . c#A N A =AB'Provision for income taxes. . . . . . . . . . . . . . . . . A A  e@"-------------"-------------"--------------B'Net earnings before cumulative effect of accounting changes A 8A dAB'Cumulative effect of accounting changes . . . . . . . . . . "---- "---- @"-------------"-------------"--------------B'Net earnings. . . . . . . . . . . . . . . . . . . . . . . . A 8A A"-------------"-------------"--------------'Earnings per share:B'Before cumulative effect of accounting changes. . . . . . . Q? Gz?  ףp= ?B'Cumulative effect of accounting changes . . . . . . . . . . "---- "---- {Gz"-------------"-------------"--------------B 'Net earnings. . . . . . . . . . . . . . . . . . . . . . . .  Q?  Gz?  Q?!"-------------!"-------------!"--------------B"'Average number of common shares outstanding . . . . . . . . "A "fA "2A#"-------------#"-------------#"--------------6%'See notes to consolidated financial statements."*'CONSOLIDATED BALANCE SHEETS7+'Automatic Data Processing, Inc. and Subsidiaries/,'(In thousands, except per share amounts)n-'- -----------------------------------------------------------------------------------------------------.'June 30, . .J/'- -----------------------------------------------------------------/"-----------------/"------------------- 0'ASSETS1'Current assets: 2'Cash and cash equivalents 20A 20$A'3'Short-term marketable securities 3<A 3$pA4'Accounts receivable 4A 4A5'Other current assets 58A 5ȥA6"--------------6"-----------------7'Total current assets 706A 7{2A8"--------------8"-----------------&9'Long-term marketable securities 99A 9""A:"--------------:"-----------------;'Long-term receivables ;A ;-A<"--------------<"-----------------/='Property, plant and equipment - at cost:>'Land and buildings >|A >HA ?'Data processing equipment ?!A ?lA&@'Furniture, leaseholds and other @-A @`AA"--------------A"----------------- B2A B0A$C'Less accumulated depreciation CR'A C$AD"--------------D"----------------- EA E\cAF"--------------F"-----------------G'Other assets GL G@@H"--------------H"-----------------I'Intangibles Iv3A I%AJ"--------------J"----------------- KKMA K$lHAL"--------------L"-----------------+M'LIABILITIES AND SHAREHOLDERS' EQUITYN'Current liabilities:O'Notes payable O'@O"$ -P'Accounts payable P@ P0@5Q'Accrued expenses and other current liabilities Q&"A Q@AR'Income taxes R@@ R/@(S'Current portion of long-term debt SW ST%T"--------------T"----------------- U'Total current liabilities U:)A U AV"--------------V"-----------------W'Long-term debt W|A WAX"--------------X"-----------------Y'Other liabilities Y*@ YS@Z"--------------Z"-----------------['Deferred income taxes [@ [I\"--------------\"-----------------]'Deferred revenue ]0@ ]@^"--------------^"-----------------_'Shareholders' equity:(`'Preferred stock, $1.00 par value:+a'Authorized, 300 shares; issued, none$b'Common stock, $.10 par value:6c'Authorized, 500,000 shares; issued, 314,277 and#d'314,234 shares, respectively dz dz%e'Capital in excess of par value eA ezAf'Retained earnings f\CA f[@AGg'Treasury stock - at cost, 26,656 and 26,066 shares, respectively g&$ gȨh"--------------h"-----------------!i'Total shareholders' equity i)AA i?Aj"--------------j"----------------- kKMA k$lHAl"--------------l"-----------------6n'See notes to consolidated financial statements.,r'STATEMENTS OF CONSOLIDATED CASH FLOWS7s'Automatic Data Processing, Inc. and Subsidiariesu'(In thousands)gv'- ----------------------------------------------------------------------------------------------w'Year ended June 30, w w w8x'- -----------------------------------------------x"---------------x"---------------x"-----------------+y'CASH FLOWS FROM OPERATING ACTIVITIESz'Net earnings zA z8A zA${'Depreciation and amortization {A {A {8A|'Deferred income taxes |t6 | |3}'Changes in operating assets and liabilities:#~'Receivables and other assets ~X ~ ~,'Accounts payable and accrued expenses  I B 'Other e 5 @@"--------------"---------------"---------------/'Net cash flows from operating activities #A 9A  A"--------------"---------------"---------------+'CASH FLOWS FROM INVESTING ACTIVITIES('Purchase of marketable securities . ~0 ,-2'Proceeds from sale of marketable securities o2A D,A )A'Capital expenditures (   5'Other changes in property, plant and equipment   2'Additions to intangibles   t7'Acquisitions of businesses, net of cash acquired < < "--------------"---------------"---------------/'Net cash flows from investing activities   P \"--------------"---------------"---------------+'CASH FLOWS FROM FINANCING ACTIVITIES&'Proceeds from issuance of notes '@ "--- "---#'Repayments of long-term debt   Z-'Proceeds from issuance of common stock @ @E@  @"'Repurchases of common stock @  Ж'Dividends paid @_   'Other 9@ N "--------------"---------------"---------------/'Net cash flows from financing activities @R * "--------------"---------------"---------------.'Net change in cash and cash equivalents $ N@ <@8'Cash and cash equivalents, at beginning of period 0$A ! A A"--------------"---------------"---------------2'Cash and cash equivalents, at end of period 0A 0$A ! A"--------------"---------------"---------------6'See notes to consolidated financial statements.