/2H1d 1$&%*$^Part I. Financial Information)^STATEMENT OF CONSOLIDATED EARNINGS/^(In thousands, except per share amounts)^(Unaudited)^Three Months Ended^Three Months Ended^September 30,^September 30, ^2000 ^1999- 'Revenues, other than interest on funds( 'held for clients and PEO revenues "$1,415,232 "$1,240,994) 'Interest on funds held for clients "115,639  "65,944('PEO revenues (net of pass-through&'costs of $592,247 and $467,111,'respectively) "55,652 "44,157"----------"----------'Total revenues"1,586,523"1,351,095"----------"----------'Operating expenses"659,958"551,090"'General, administrative and'selling expenses"435,435"405,387'Systems development and'programming costs"119,074"103,655$'Depreciation and amortization "81,544 "65,634 'Interest expense  "3,298  "3,535)"'Realized (gains)/losses on sale of#'investments #"604 #"(396)$"----------$"----------&"1,299,913&"1,128,905#('EARNINGS BEFORE INCOME TAXES("286,610("222,190!*'Provision for income taxes*"113,210 *"75,990+"----------+"-----------'NET EARNINGS-"$ 173,400-"$ 146,200."==========."==========0'BASIC EARNINGS PER SHARE0"$ 0.280"$ 0.231"==========1"==========!3'DILUTED EARNINGS PER SHARE3"$ 0.273"$ 0.234"==========4"==========6'Dividends per share6"$ .087506"$ .076257"==========7"==========:9'See notes to the consolidated financial statements.;^Form 10Q"<^CONSOLIDATED BALANCE SHEETS=^(IN THOUSANDS)>^(UNAUDITED)?^September 30,?^June 30, @^2000 @^2000 A'Assets B'------ C'Cash and cash equivalentsC"$ 1,325,373C"$ 1,227,637'D'Short-term marketable securitiesD"540,641D"596,792E'Accounts receivableE"842,094E"899,314F'Other current assetsF"288,816F"340,709G"-----------G"-----------H'Total current assetsH"2,996,924H"3,064,452&J'Long-term marketable securitiesJ"819,581J"628,120K'Long-term receivablesK"242,201K"245,249M'Land and buildingsM"445,217M"439,022 N'Data processing equipmentN"634,258N"612,608&O'Furniture, leaseholds and otherO"514,944O"498,354P"-----------P"-----------Q"1,594,419Q"1,549,984$R'Less accumulated depreciationR"(981,371)R"(952,715)S"-----------S"-----------T"613,048T"597,269V'Other assetsV"294,222V"271,136W'IntangiblesW"1,580,189W"1,623,701X"-----------X"-----------1Y'Total assets before funds held for clientsY"6,546,165Y"6,429,927Z'Funds held for clientsZ"10,135,110Z"10,420,889["----------["-----------\'Total assets\"$16,681,275\"$16,850,816]"===========]"===========+_'Liabilities and Shareholders' Equity+`'------------------------------------a'Notes payablea"$ 20,228a"$ 21,523b'Accounts payableb"124,830b"129,436'c'Accrued expenses & other currentd'liabilitiesd"964,393d"1,044,002e'Income taxese"171,895e"101,707f"-----------f"----------- g'Total current liabilitiesg"1,281,346g"1,296,668i'Long-term debti"133,530i"132,017j'Other liabilitiesj"193,896j"171,843k'Deferred income taxesk"147,911k"151,337l'Deferred revenue l"90,555 l"95,361m"-----------m"----------,n'Total liabilities before client fundso'obligationso"1,847,238o"1,847,226p'Client funds obligationsp"10,114,136p"10,420,772q"-----------q"----------r'Total liabilitiesr"11,961,374r"12,267,998t'Shareholders' equity:u'Common stock u"63,219 u"63,144%v'Capital in excess of par valuev"418,655v"402,767w'Retained earningsw"4,595,381w"4,477,141x'Treasury stockx"(75,486)x"(130,800)-y'Accumulated other comprehensive incomey"(281,868)y"(229,434)z"-----------z"-----------!{'Total shareholders' equity{"4,719,901{"4,582,818|"-----------|"-----------1}'Total liabilities and shareholders' equity}"$16,681,275}"$16,850,816~"===========~"===========:'See notes to the consolidated financial statements.^Form 10Q6^CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS^(IN THOUSANDS)^(UNAUDITED)^Three Months Ended^Three Months Ended^September 30,^September 30, ^2000 ^1999,'Cash Flows From Operating Activities:,'-------------------------------------'Net earnings"$173,400"$146,200,'Expenses not requiring outlay of cash "92,662 "66,093&'Changes in operating net assets "69,735 "27,717"----------"---------6'Net cash flows provided by operating activities"335,797"240,010"----------"---------,'Cash Flows From Investing Activities:,'-------------------------------------('Purchase of marketable securities"(1,029,661)"(1,806,008)2'Proceeds from sale of marketable securities"1,210,109"406,701-'Net change in client funds obligations"(306,636)"1,326,183'Capital expenditures"(54,608)"(23,919)'Additions to intangibles"(16,108)"(11,646)!'Acquisitions of businesses"(23,627) "(886) 'Other"(6,926)"(12,030)"----------"---------2'Net cash flows used in investing activities"(227,457)"(121,605)"----------"---------,'Cash Flows From Financing Activities:,'-------------------------------------&'Proceeds from issuance of notes "12,785 "1,478'Repayments of debt"(14,106)"(7,398)-'Proceeds from issuance of common stock "45,877 "27,659'Dividends paid"(55,160)"(47,624)"----------"---------2'Net cash flows used in financing activities"(10,604)"(25,885)"----------"---------.'Net change in cash and cash equivalents "97,736 "92,5201'Cash and cash equivalents, at beginning of 'period"1,227,637"861,280"----------"---------+'Cash and cash equivalents, at end of 'period"$1,325,373"$953,800"=========="=========:'See notes to the consolidated financial statements.