/2H:d 1$&%*$'Part I. Financial Information*'STATEMENTS OF CONSOLIDATED EARNINGS/'(In thousands, except per share amounts)'(Unaudited)^Three Months Ended^Three Months Ended^Nine Months Ended^Nine Months Ended^March 31,^March 31,^March 31,^March 31, ^2001 ^2000 ^2001 ^2000'Revenues, other than! 'interest on funds held for 'clients and PEO revenues "$1,690,804 "$1,563,477 "$4,600,486 "$4,177,956! 'Interest on funds held for 'clients "143,326 "101,902 "388,883 "239,086!'PEO revenues (net of pass-!'through costs of $596,333,'$567,387, $1,839,731 and '$1,550,005, respectively) "60,190 "54,351"175,113"146,269'Total revenues"1,894,320"1,719,730"5,164,482"4,563,311'Operating expenses"754,300"661,935"2,091,360"1,826,802"'General, administrative and'selling expenses"418,101"425,078"1,264,162"1,225,291'Systems development and'programming costs"126,564"119,747"373,141"332,627$'Depreciation and amortization "79,914 "72,851"239,982"206,032 'Interest Expense  "2,438  "2,816  "9,085  "9,993"'(Gains)/losses on#'investments #"37,603 #"21,853 #"81,842 #"21,726&"1,418,920&"1,304,280&"4,059,572&"3,622,471#*'EARNINGS BEFORE INCOME TAXES*"475,400*"415,450*"1,104,910*"940,840!,'Provision for income taxes,"186,520,"144,140,"435,190,"323,830/'NET EARNINGS/"$ 288,880/"$ 271,310/"$ 669,720/"$ 617,0102'BASIC EARNINGS PER SHARE2"$ .462"$ .432"$ 1.062"$ .99!5'DILUTED EARNINGS PER SHARE5"$ .455"$ .425"$ 1.045"$ .968'Dividends per share8"$ .10258"$ .08758"$ .29258"$ .25125::'See notes to the consolidated financial statements.<'Form 10Q#='CONSOLIDATED BALANCE SHEETS >'(IN THOUSANDS)@^(UNAUDITED)A^March 31,A^June 30, B'Assets B^2001 B^2000 D'Cash and cash equivalentsD"$ 1,165,744D"$ 1,227,637'E'Short-term marketable securitiesE"467,281E"596,792F'Accounts receivableF"962,191F"899,314G'Other current assetsG"346,090G"340,709I'Total current assetsI"2,941,306I"3,064,452&K'Long-term marketable securitiesK"841,702K"628,120L'Long-term receivablesL"226,310L"245,249N'Land and buildingsN"453,385N"439,022 O'Data processing equipmentO"642,998O"612,608&P'Furniture, leaseholds and otherP"517,416P"498,354R"1,613,799R"1,549,984$S'Less accumulated depreciationS"(1,008,808)S"(952,715)U"604,991U"597,269W'Other assetsW"206,203W"271,136X'IntangiblesX"1,602,310X"1,623,7011Z'Total assets before funds held for clientsZ"6,422,822Z"6,429,927['Funds held for clients["13,418,361["10,420,889]'Total assets]"$19,841,183]"$16,850,816+`'Liabilities and Shareholders' Equity+a'------------------------------------b'Notes payableb"$ -b"$ 21,523c'Accounts payablec"134,076c"129,436'd'Accrued expenses & other currente'liabilitiese"1,039,914e"1,044,002f'Income taxesf"137,457f"101,707 h'Total current liabilitiesh"1,311,447h"1,296,668j'Long-term debtj"113,136j"132,017k'Other liabilitiesk"183,189k"171,843l'Deferred income taxesl"210,666l"151,337m'Deferred revenue m"93,099 m"95,361-o'Total liabilities before clients fundsp'Obligationsp"1,911,537p"1,847,226q'Client funds obligationsq"13,295,197q"10,420,772s'Total liabilitiess"15,206,734s"12,267,998u'Shareholders' equity:v'Common stock v"63,881 v"63,144%w'Capital in excess of par valuew"596,063w"402,767x'Retained earningsx"4,962,435x"4,477,141y'Treasury stocky"(795,052)y"(130,800)-z'Accumulated other comprehensive incomez"(192,878)z"(229,434)!|'Total shareholders' equity|"4,634,449|"4,582,8181~'Total liabilities and shareholders' equity~"$19,841,183~"$16,850,816:'See notes to the consolidated financial statements.'Form 10Q6'CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS'(IN THOUSANDS)'(UNAUDITED)^Nine Months Ended^Nine Months Ended^March 31,^March 31, ^2001 ^2000,'Cash Flows From Operating Activities:'Net earnings"$ 669,720"$ 617,010,'Expenses not requiring outlay of cash"340,804"230,512&'Changes in operating net assets "10,796 "42,1626'Net cash flows provided by operating activities"1,021,320"889,684,'Cash Flows From Investing Activities:('Purchase of marketable securities"(5,533,512)"(7,421,679)2'Proceeds from sale of marketable securities"2,619,521"2,618,565-'Net change in client funds obligations"2,874,425"4,962,768'Capital expenditures"(129,356)"(116,306)'Additions to intangibles"(62,753)"(55,553)!'Acquisitions of businesses"(51,693)"(41,546)!'Dispositions of businesses"- "10,943 'Other"(11,858)"(12,675)2'Net cash flows used in investing activities"(295,226)"(55,483),'Cash Flows From Financing Activities:&'Proceeds from issuance of notes "26,348 "10,547'Repayments of debt"(48,381)"(35,979)-'Proceeds from issuance of common stock"207,240"117,148"'Repurchases of common stock"(788,767)"(201,007)'Dividends paid"(184,427)"(157,572)2'Net cash flows used in financing activities"(787,987)"(266,863).'Net change in cash and cash equivalents"(61,893)"567,3388'Cash and cash equivalents, at beginning of period"1,227,637"861,2802'Cash and cash equivalents, at end of period"$1,165,744"$1,428,618:'See notes to the consolidated financial statements.