J/2ÿñH)d 1$&%*ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ$ñ'Part I. Financial Information*ñ'Consolidated Statements of Earnings/ñ'(In thousands, except per share amounts)ñ'(Unaudited)ñ^Three Months Endedñ^Three Months Endedñ^Nine Months Endedñ^Nine Months Endedñ^March 31,ñ^March 31,ñ^March 31,ñ^March 31, ñ^2002 ñ^2001 ñ^2002 ñ^2001$ñ 'Revenues, other than interest ñ 'on funds held for clientsñ 'and PEO revenuesñ "$1,691,261ñ "$1,650,249ñ "$4,633,659ñ "$4,473,720!ñ 'Interest on funds held forñ'clientsñ"107,880ñ"143,326ñ"331,140ñ"388,883ñ'PEO revenues (A) ñ"70,895 ñ"60,190ñ"194,148ñ"175,113ñ'Total revenuesñ"1,870,036ñ"1,853,765ñ"5,158,947ñ"5,037,716ñ'Operating expensesñ"772,492ñ"754,300ñ"2,140,814ñ"2,091,360"ñ'General, administrative andñ'selling expensesñ"369,217ñ"418,101ñ"1,219,336ñ"1,264,162ñ'Systems development andñ'programming costsñ"116,387ñ"126,564ñ"349,756ñ"373,141$ñ'Depreciation and amortization ñ"73,203 ñ"79,914ñ"211,115ñ"239,982ñ 'Other(income)expenseñ "(33,113) ñ "(514)ñ "(84,024)ñ "(35,839)ñ#"1,298,186ñ#"1,378,365ñ#"3,836,997ñ#"3,932,806#ñ&'EARNINGS BEFORE INCOME TAXESñ&"571,850ñ&"475,400ñ&"1,321,950ñ&"1,104,910!ñ('Provision for income taxesñ("219,590ñ("186,520ñ("508,490ñ("435,190ñ+'NET EARNINGSñ+"$ 352,260ñ+"$ 288,880ñ+"$ 813,460ñ+"$ 669,720ñ.'BASIC EARNINGS PER SHAREñ."$ 0.57ñ."$ 0.46ñ."$ 1.31ñ."$ 1.06!ñ1'DILUTED EARNINGS PER SHAREñ1"$ 0.56ñ1"$ 0.45ñ1"$ 1.29ñ1"$ 1.04ñ4'Dividends per shareñ4"$ 0.1150ñ4"$ 0.1025ñ4"$ 0.3325ñ4"$ 0.29250ñ7'(A) Net of pass-through costs of $676,409>ñ8' and $596,333, $1,922,810 and $1,839,731, respectively.:ñ9'See notes to the consolidated financial statements."ñ;'Consolidated Balance Sheetsñ<'(In thousands)ñ='(Unaudited)ñ?^March 31,ñ?^June 30, ñ@'Assets ñ@^2002 ñ@^2001 ñB'Cash and cash equivalentsñB"$ 1,203,966ñB"$ 1,275,356'ñC'Short-term marketable securitiesñC"511,120ñC"515,245ñD'Accounts receivableñD"1,053,266ñD"976,638ñE'Other current assetsñE"221,109ñE"316,221ñG'Total current assetsñG"2,989,461ñG"3,083,460&ñI'Long-term marketable securitiesñI"1,116,347ñI"806,363ñJ'Long-term receivablesñJ"203,719ñJ"224,964ñL'Land and buildingsñL"456,895ñL"457,110 ñM'Data processing equipmentñM"682,784ñM"653,641&ñN'Furniture, leaseholds and otherñN"537,555ñN"533,883ñP"1,677,234ñP"1,644,634$ñQ'Less accumulated depreciationñQ"(1,086,896)ñQ"(1,029,984)*ñS'Total property, plant and equipmentñS"590,338ñS"614,650ñU'Other assetsñU"239,967ñU"219,133ñV'GoodwillñV"1,284,958ñV"1,151,874ñW'Other intangiblesñW"469,157ñW"449,5361ñY'Total assets before funds held for clientsñY"6,893,947ñY"6,549,980ñZ'Funds held for clientsñZ"12,334,285ñZ"11,339,110ñ\'Total assetsñ\"$19,228,232ñ\"$17,889,090+ñ_'Liabilities and Shareholders' Equityña'Accounts payableña"$ 155,105ña"$ 156,324'ñb'Accrued expenses & other currentñc'liabilitiesñc"1,018,449ñc"1,032,273ñd'Income taxesñd"194,331ñd"147,676 ñf'Total current liabilitiesñf"1,367,885ñf"1,336,273ñh'Long-term debt ñh"91,000ñh"110,227ñi'Other liabilitiesñi"212,744ñi"208,880ñj'Deferred income taxesñj"188,446ñj"207,928ñk'Deferred revenue ñk"93,720 ñk"85,931,ñm'Total liabilities before client fundsñn'obligationsñn"1,953,795ñn"1,949,239ño'Client funds obligationsño"12,277,456ño"11,238,854ñq'Total liabilitiesñq"14,231,251ñq"13,188,093ñs'Shareholders' equity:ñt'Common stock ñt"63,870 ñt"63,870%ñu'Capital in excess of par valueñu"353,685ñu"553,927ñv'Retained earningsñv"5,761,014ñv"5,153,408ñw'Treasury stockñw"(946,729)ñw"(837,244)-ñx'Accumulated other comprehensive incomeñx"(234,859)ñx"(232,964)!ñz'Total shareholders' equityñz"4,996,981ñz"4,700,9971ñ|'Total liabilities and shareholders' equityñ|"$19,228,232ñ|"$17,889,090:ñ'See notes to the consolidated financial statements.,ñ'Consolidated Statements of Cash Flowsñ‚'(In thousands)ñƒ'(Unaudited)ñ…^Nine Months Endedñ…^Nine Months Endedñ†^March 31,ñ†^March 31, ñ‡^2002 ñ‡^2001,ñŠ'Cash Flows From Operating Activities:ñ'Net earningsñ"$ 813,460ñ"$ 669,720,ñ'Expenses not requiring outlay of cashñ"247,280ñ"340,804&ñ‘'Changes in operating net assetsñ‘"124,188 ñ‘"10,7966ñ”'Net cash flows provided by operating activitiesñ”"1,184,928ñ”"1,021,320,ñ—'Cash Flows From Investing Activities:(ñš'Purchase of marketable securitiesñš"(4,410,232)ñš"(5,533,512)2ñ›'Proceeds from sale of marketable securitiesñ›"3,057,782ñ›"2,619,521,ñœ'Net change in client fund obligationsñœ"1,038,602ñœ"2,874,425ñ'Capital expendituresñ"(100,328)ñ"(129,356)ñž'Additions to intangiblesñž"(78,538)ñž"(62,753)7ñŸ'Acquisitions of businesses, net of cash acquiredñŸ"(148,260)ñŸ"(51,693) ñ 'Other ñ "12,677ñ "(11,858)2ñ£'Net cash flows used in investing activitiesñ£"(628,297)ñ£"(295,226),ñ¦'Cash Flows From Financing Activities:.ñ©'Net proceeds from short-term borrowingsñ©"- ñ©"26,348ñª'Payments of debtñª"(3,500)ñª"(48,381)-ñ«'Proceeds from issuance of common stockñ«"206,038ñ«"207,240"ñ¬'Repurchases of common stockñ¬"(624,704)ñ¬"(788,767)ñ­'Dividends paidñ­"(205,855)ñ­"(184,427)2ñ°'Net cash flows used in financing activitiesñ°"(628,021)ñ°"(787,987).ñ³'Net change in cash and cash equivalentsñ³"(71,390)ñ³"(61,893)5ñµ'Cash and cash equivalents, beginning of periodñµ"1,275,356ñµ"1,227,637/ñ·'Cash and cash equivalents, end of periodñ·"$1,203,966ñ·"$1,165,744:ñº'See notes to the consolidated financial statements.