ª/2ÿñH2d 1$&%*ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ$ñ'PART I. FINANCIAL INFORMATION*ñ'STATEMENTS OF CONSOLIDATED EARNINGS/ñ'(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)ñ'(UNAUDITED)ñ^Three Months Endedñ^Three Months Endedñ^September 30,ñ^September 30, ñ^2001 ñ^2000-ñ 'Revenues, other than interest on funds(ñ 'held for clients and PEO revenuesñ "$1,433,476ñ "$1,372,838)ñ 'Interest on funds held for clientsñ "113,188ñ "115,639ñ'PEO revenues (A) ñ"61,219 ñ"55,652ñ'Total revenuesñ"1,607,883ñ"1,544,129ñ'Operating expensesñ"676,352ñ"659,958"ñ'General, administrative andñ'selling expensesñ"456,561ñ"435,435ñ'Systems development andñ'programming costsñ"115,829ñ"119,074$ñ'Depreciation and amortization ñ"69,463 ñ"81,544ñ'Other (income)/expenseñ"(30,522)ñ"(38,492)ñ"1,287,683ñ"1,257,519#ñ 'EARNINGS BEFORE INCOME TAXESñ "320,200ñ "286,610!ñ"'Provision for income taxesñ""123,600ñ""113,210ñ$'NET EARNINGSñ$"$ 196,600ñ$"$ 173,400ñ&'BASIC EARNINGS PER SHAREñ&"$ 0.32ñ&"$ 0.28!ñ('DILUTED EARNINGS PER SHAREñ("$ 0.31ñ("$ 0.27ñ*'Dividends per shareñ*"$ .10250ñ*"$ .08750Kñ-'(A) Net of pass-through costs of $596,462 and $592,247, respectively:ñ.'See notes to the consolidated financial statements.ñ0'Form 10Q"ñ1'CONSOLIDATED BALANCE SHEETSñ2'(IN THOUSANDS)ñ5'(UNAUDITED)ñ6^September 30,ñ6^June 30, ñ7^2001 ñ7^2001 ñ9'Assets ñ:'Cash and cash equivalentsñ:"$ 1,415,107ñ:"$ 1,275,356'ñ;'Short-term marketable securitiesñ;"333,524ñ;"515,245ñ<'Accounts receivableñ<"925,950ñ<"976,638ñ='Other current assetsñ="271,900ñ="316,221ñ?'Total current assetsñ?"2,946,481ñ?"3,083,460&ñA'Long-term marketable securitiesñA"630,844ñA"806,363ñB'Long-term receivablesñB"230,141ñB"224,964ñD'Land and buildingsñD"464,551ñD"457,110 ñE'Data processing equipmentñE"671,869ñE"653,641&ñF'Furniture, leaseholds and otherñF"546,574ñF"533,883ñH"1,682,994ñH"1,644,634$ñI'Less accumulated depreciationñI"(1,073,563)ñI"(1,029,984)ñK"609,431ñK"614,650ñM'Other assetsñM"238,564ñM"219,133ñN'GoodwillñN"1,259,757ñN"1,151,874ñO'Other IntangiblesñO"454,846ñO"449,5361ñQ'Total assets before funds held for clientsñQ"6,370,064ñQ"6,549,980ñR'Funds held for clientsñR"10,294,003ñR"11,339,110ñT'Total assetsñT"$16,664,067ñT"$17,889,090+ñW'Liabilities and Shareholders' Equity+ñX'------------------------------------ñY'Accounts payableñY"$ 156,260ñY"$ 156,324)ñZ'Accrued expenses and other currentñ['liabilitiesñ["983,280ñ["1,032,273ñ\'Income taxesñ\"203,982ñ\"147,676 ñ^'Total current liabilitiesñ^"1,343,522ñ^"1,336,273ñ`'Long-term debtñ`"106,258ñ`"110,227ña'Other liabilitiesña"230,959ña"208,880ñb'Deferred income taxesñb"265,991ñb"207,928ñc'Deferred revenue ñc"86,518 ñc"85,931,ñe'Total liabilities before client fundsñf'obligationsñf"2,033,248ñf"1,949,239ñg'Client funds obligationsñg"10,060,639ñg"11,238,854ñi'Total liabilitiesñi"12,093,887ñi"13,188,093ñk'Shareholders' equity:ñl'Common stock ñl"63,870 ñl"63,870%ñm'Capital in excess of par valueñm"518,159ñm"553,927ñn'Retained earningsñn"5,286,034ñn"5,153,408ño'Treasury stockño"(1,179,705)ño"(837,244)-ñp'Accumulated other comprehensive incomeñp"(118,178)ñp"(232,964)!ñr'Total shareholders' equityñr"4,570,180ñr"4,700,9971ñt'Total liabilities and shareholders' equityñt"$16,664,067ñt"$17,889,090:ñw'See notes to the consolidated financial statements.6ñy'CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWSñz'(IN THOUSANDS)ñ{'(UNAUDITED)ñ}^Three Months Endedñ}^Three Months Endedñ~^September 30,ñ~^September 30, ñ^2001 ñ^2000,ñ€'Cash Flows From Operating Activities:ñ‚'Net earningsñ‚"$ 196,600ñ‚"$ 173,400,ñ„'Expenses not requiring outlay of cash ñ„"95,634 ñ„"92,662&ñ†'Changes in operating net assets ñ†"88,609 ñ†"69,7356ñˆ'Net cash flows provided by operating activitiesñˆ"380,843ñˆ"335,797,ñŠ'Cash Flows From Investing Activities:(ñŒ'Purchase of marketable securitiesñŒ"(655,514)ñŒ"(1,029,661)2ñ'Proceeds from sale of marketable securitiesñ"2,185,166ñ"1,210,109-ñŽ'Net change in client funds obligationsñŽ"(1,178,214)ñŽ"(306,636)ñ'Capital expendituresñ"(32,957)ñ"(54,608)ñ'Additions to intangiblesñ"(22,913)ñ"(16,108)!ñ‘'Acquisitions of businessesñ‘"(78,936)ñ‘"(23,627) ñ’'Otherñ’"(2,861)ñ’"(6,926)+ñ”'Net cash flows provided by (used in)ñ•'investing activitiesñ•"213,771ñ•"(227,457),ñ—'Cash Flows From Financing Activities:&ñ™'Proceeds from issuance of notes ñ™"86 ñ™"12,785ñš'Repayments of debt ñš"(563)ñš"(14,106)-ñ›'Proceeds from issuance of common stock ñ›"46,773 ñ›"45,877"ñœ'Repurchases of common stockñœ"(437,188)ñœ"-ñ'Dividends paidñ"(63,971)ñ"(55,160)2ñ 'Net cash flows used in financing activitiesñ "(454,863)ñ "(10,604).ñ¢'Net change in cash and cash equivalentsñ¢"139,751 ñ¢"97,7361ñ¤'Cash and cash equivalents, at beginning of ñ¥'periodñ¥"1,275,356ñ¥"1,227,637+ñ§'Cash and cash equivalents, at end of ñ¨'periodñ¨"$1,415,107ñ¨"$1,325,373:ñª'See notes to the consolidated financial statements.