Statements of Consolidated Earnings

Automatic Data Processing, Inc. and Subsidiaries
(In thousands, except per share amounts)

Year ended June 30,
1996
1995
1994
Revenue
$3,566,597
$2,893,742
$2,468,966
Operating expenses
1,516,407
1,177,292
1,026,354
General, administrative and selling expenses
933,805
792,121
666,344
Depreciation and amortization
201,629
172,536
148,295
Systems development and programming costs
249,635
193,173
160,803
Interest expense
29,731
24,340
20,840
2,931,207
2,359,462
2,022,636
Earnings before income taxes and cumulative effect of accounting changes
635,390
534,280
446,330
Provision for income taxes
180,690
139,450
112,210
Net earnings before cumulative effect of accounting changes
454,700
394,830
334,210
Cumulative effect of accounting changes
-
-
-4,800
Net earnings
$454,700
$394,830
$329,320
Earnings per share:
Before cumulative effect of accounting changes
$1.57
$1.38
$1.19
Cumulative effect of accounting changes
-
-
-0.02
Net earnings
$1.57
$1.38
$1.17
Average number of common shares outstanding
288,967
285,112
281,780

See notes to consolidated financial statements.