2 3 I5 Arial5! Arial5" Arial5# Arial5$ Arial5% 0Courier New5& Arial5' Arial5(  Arial5)  Arial5*  Arial5+ Arial5, Arial5- Arial5. Arial5/Arial !!""            !!!"!#!$!%  &%' (%)& *' + ,  -%.& /' 0(1(2( 3) 4* 5(6+7+8+ 9, :- ;+<+=+>+?,@. A,B-C,D,E,F. @ @ @  @@  @@  @@  @@  @ @@ @@ @@  @@  @@  @@  @@  @  @@  @  @@  @@  @@  @@ @@ ! @@ " @@ $ @@ % @@ ' @@ ( @@ * @@ + @@ - @@ . @@ 0 @@ 1 @@ 2 @ 3 @ 7@ 8@ 9@ <@ = @@ > @@ ? @ @ @ A @@ B @@ C @@ D @@ E @@ F @@ H @@ I @@ K @@ L @@ M @@ N @@ O @@ P @@ Q @@ R @@ T @@ U @@ V @@ W @@ X @@ Y @@ Z @@ [ @@ \ @@ ^ @ _ @ ` @@ a @ b @@ c @@ d @@ e @@ g @@ h @@ i @@ j @@ k @@ l @ m @@ n @@ o @@ p @@ r @ s @@ t @@ u @@ v @@ w @@ x @@ y @@ z @@ { @@ | @@ }@ ~ @ @ @ @ @ @@ @@ @@ @@ @ @ @@ @@ @@ @@ @@ @@ @ @ @@ @@ @@ @@ @@ @@ @@ @@ @@ @@ @ @ @@ @@ @@ @@ @@ @@ @@ @@ @@ @ @@ @@ @ @@ @@ @ @ q@' q@' q@'q0*)'STATEMENTS OF CONSOLIDATED EARNINGS.'(In thousands, except per share amounts)'(Unaudited)^Three Months Ended^Three Months Ended^September 30,^September 30, ^2002 ^2001,'Revenues, other than interest on funds' 'held for clients and PEO revenues "$1,476,424 "$1,433,476( 'Interest on funds held for clients "89,865 "113,188 'PEO revenues (A) "80,396 "61,219'Total revenues"1,646,685"1,607,883'Operating expenses "708,468 "676,352!'General, administrative and'selling expenses "447,953 "456,561'Systems development and'programming costs "119,898 "115,829#'Depreciation and amortization "67,684 "69,463'Other income"(37,718)"(30,522) "1,306,285 "1,287,683""'EARNINGS BEFORE INCOME TAXES ""340,400 ""320,200 $'Provision for income taxes $"130,000 $"123,600''NET EARNINGS'"$ 210,400'"$ 196,600*'BASIC EARNINGS PER SHARE*"$ 0.35*"$ 0.32 -'DILUTED EARNINGS PER SHARE-"$ 0.34-"$ 0.310'Dividends per share0"$ .11500"$ .1025K2'(A) Net of pass-through costs of $763,379 and $596,462, respectively.C3'See notes to the unaudited consolidated financial statements.7'Form 10Q!8'CONSOLIDATED BALANCE SHEETS9'(IN THOUSANDS)<'(UNAUDITED)=^September 30,=^June 30, >^2002 >^2002 ?'AssetsA'Cash and cash equivalentsA"$ 545,779A"$ 798,810&B'Short-term marketable securities B"623,988 B"677,005C'Accounts receivable C"971,373C"1,045,170D'Other current assets D"360,643 D"296,272F'Total current assetsF"2,501,783F"2,817,257%H'Long-term marketable securitiesH"1,080,894H"1,273,768I'Long-term receivables I"184,717 I"192,769K'Land and buildings K"459,763 K"458,478L'Data processing equipment L"714,953 L"696,829%M'Furniture, leaseholds and other M"555,299 M"540,217O"1,730,015O"1,695,524#P'Less accumulated depreciationP"(1,147,687)P"(1,099,073))R'Total property, plant and equipment R"582,328 R"596,451T'Other assets T"338,853 T"293,808U'GoodwillU"1,411,449U"1,375,654V'Other Intangibles V"509,061 V"501,5440X'Total assets before funds held for clientsX"6,609,085X"7,051,251Y'Funds held for clientsY"9,086,910Y"11,225,271['Total assets["$15,695,995["$18,276,522*^'Liabilities and Shareholders' Equity*_'------------------------------------`'Accounts payable`"$ 134,726`"$ 148,694(a'Accrued expenses and other currentb'liabilitiesb"1,024,407b"1,035,389c'Income taxes c"217,422 c"227,019e'Total current liabilitiese"1,376,555e"1,411,102g'Long-term debt g"83,780 g"90,648h'Other liabilities h"252,196 h"233,671i'Deferred income taxes i"332,647 i"237,633j'Deferred revenue j"137,666 j"138,893+l'Total liabilities before client fundsm'obligationsm"2,182,844m"2,111,947n'Client funds obligationsn"8,764,225n"11,050,370p'Total liabilitiesp"10,947,069p"13,162,317r'Shareholders' equity:s'Common stock s"63,870 s"63,870$t'Capital in excess of par value t"310,719 t"333,371u'Retained earningsu"6,118,356u"5,977,318v'Treasury stockv"(1,736,362)v"(1,142,041)*w'Accumulated other comprehensive loss w"(7,657)w"(118,313) y'Total shareholders' equityy"4,748,926y"5,114,2050{'Total liabilities and shareholders' equity{"$15,695,995{"$18,276,522C~'See notes to the unaudited consolidated financial statements.'Form 10Q5'CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS'(IN THOUSANDS)'(UNAUDITED)^Three Months Ended^Three Months Ended^September 30,^September 30, ^2002 ^2001+'Cash Flows From Operating Activities:+'-------------------------------------'Net earnings"$ 210,400"$ 196,600+'Expenses not requiring outlay of cash "118,258 "95,634%'Changes in operating net assets"(91,870) "88,6095'Net cash flows provided by operating activities "236,788 "380,843+'Cash Flows From Investing Activities:''Purchase of marketable securities"(706,635)"(655,514)1'Proceeds from sale of marketable securities"3,266,384"2,185,166,'Net change in client funds obligations"(2,286,144)"(1,178,214)'Capital expenditures"(27,208)"(32,957)'Additions to intangibles"(31,333)"(22,913)6'Acquisitions of businesses, net of cash acquired"(29,026)"(78,936) 'Other "727 "(2,861)5'Net cash flows provided by investing activities "186,765 "213,771+'Cash Flows From Financing Activities:+'--------------------------------------'Net proceeds from short-term borrowings "399"86'Payments of debt "(396) "(563),'Proceeds from issuance of common stock "33,093 "46,773!'Repurchases of common stock"(640,318)"(437,188)'Dividends paid"(69,362)"(63,971)1'Net cash flows used in financing activities"(676,584)"(454,863)-'Net change in cash and cash equivalents"(253,031) "139,7510'Cash and cash equivalents, at beginning of 'period "798,810"1,275,356*'Cash and cash equivalents, at end of 'period"$ 545,779"$1,415,107C'See notes to the unaudited consolidated financial statements. 6Sheet1 6Sheet2 6Sheet3d_ ArialArial    O4!*d"""dFM3FM3 PropertyWK3WK3 Property  42 o0&2 "2o02 2CMHdr42