2 3 I5 Arial5! Arial5" Arial5# Arial5$ Arial5% Arial5& 0Courier New5'  Arial5(  Arial5) Arial5* Arial5+Arial !!""            !!!"!#!$!%  &% '&( )&* +% ,  -&.'/'0( 1' 2'3)4)5* 6) 7)8)9):*;)<* @ @ @ @  @@   @@   @@   @@ @ @@ @@  @@  @@  @@  @@  @  @@  @  @@  @@  @@  @@  @@ @@ " @@ $ @@ & @@ ( @@ * @@ + @ , @ . @ 0@ 1@ 2@ 4 @@  5 @@  6 @@  7 @ 8 @ 9 @@ : @@ ; @@ < @@ = @@ > @@ @ @@ A @@ C @@ D @@ E @@ F @@ G @@ H @@ I @@ J @@ L @@ M @@ N @@ O @@ P @@ Q @@ R @@ S @@ U @ V @ W @@ X @ Y @@ Z @@ [ @@ \ @@ ^ @@ _ @@ ` @@ a @@ b @@ c @ d @@ e @@ f @@ g @@ i @ j @@ k @@ l @@ m @@ n @@ o @@ p @@ q @@ r @@ s @ t @ v@ w@ x@ z @@  { @@  | @@  } @  @@ @@ @@ @@ @@ @ @@ @@ @@ @@ @@ @@ @@ @@ @@ @ @@ @@ @@ @@ @@ @@ @@ @ @@ @@ @ @@ @ @ q@' q@' q@'q0*#'PART I. FINANCIAL INFORMATION)'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("$ 0.31*'Dividends per share*"$ .1150*"$ .1025K,'(A) Net of pass-through costs of $763,379 and $596,462, respectively.C.'See notes to the unaudited consolidated financial statements.!0'Consolidated Balance Sheets1'(In thousands)2'(Unaudited)4^Three Months Ended4^Three Months Ended5^September 30,5^June 30, 6^2002 6^2002 7'Assets9'Cash and cash equivalents9"$ 545,7799"$ 798,810&:'Short-term marketable securities :"623,988 :"677,005;'Accounts receivable ;"971,373;"1,045,170<'Other current assets <"360,643 <"296,272>'Total current assets>"2,501,783>"2,817,257%@'Long-term marketable securities@"1,080,894@"1,273,768A'Long-term receivables A"184,717 A"192,769C'Land and buildings C"459,763 C"458,478D'Data processing equipment D"714,953 D"696,829%E'Furniture, leaseholds and other E"555,299 E"540,217G"1,730,015G"1,695,524#H'Less accumulated depreciationH"(1,147,687)H"(1,099,073))J'Total property, plant and equipment J"582,328 J"596,451L'Other assets L"338,853 L"293,808M'GoodwillM"1,411,449M"1,375,654N'Other Intangibles N"509,061 N"501,5440P'Total assets before funds held for clientsP"6,609,085P"7,051,251Q'Funds held for clientsQ"9,086,910Q"11,225,271S'Total assetsS"$15,695,995S"$18,276,522*U'Liabilities and Shareholders' EquityW'Accounts payableW"$ 134,726W"$ 148,694(X'Accrued expenses and other currentY'liabilitiesY"1,024,407Y"1,035,389Z'Income taxes Z"217,422 Z"227,019\'Total current liabilities\"1,376,555\"1,411,102^'Long-term debt ^"83,780 ^"90,648_'Other liabilities _"252,196 _"233,671`'Deferred income taxes `"332,647 `"237,633a'Deferred revenue a"137,666 a"138,893+c'Total liabilities before client fundsd'obligationsd"2,182,844d"2,111,947e'Client funds obligationse"8,764,225e"11,050,370g'Total liabilitiesg"10,947,069g"13,162,317i'Shareholders' equity:j'Common stock j"63,870 j"63,870$k'Capital in excess of par value k"310,719 k"333,371l'Retained earningsl"6,118,356l"5,977,318m'Treasury stockm"(1,736,362)m"(1,142,041)*n'Accumulated other comprehensive loss n"(7,657)n"(118,313) p'Total shareholders' equityp"4,748,926p"5,114,2050r'Total liabilities and shareholders' equityr"$15,695,995r"$18,276,522Ct'See notes to the unaudited consolidated financial statements.5v'Condensed Statements of Consolidated Cash Flowsw'(In thousands)x'(Unaudited)z^Three Months Endedz^Three Months Ended{^September 30,{^September 30, |^2002 |^2001+}'Cash Flows From Operating Activities:'Net earnings"$ 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  . ,. .,. .CMHdr.