Sales and Marketing
We market our services through subject matter experts and field sales forces located throughout the United States. In order to
enhance our sales and marketing efforts, we seek to hire sales representatives who have significant technical and subject matter
expertise in the industries to which they will be marketing. Many of our existing subject matter experts have served in the
industries in which they are servicing. Our sales forces are focused on specific service offerings or vertical markets, allowing
our representatives to keep abreast of technology and industry developments.
We believe that our success depends on our continuing ability to attract and retain skilled technical, marketing and management
personnel. As of June 30, 2003, we had approximately 40,000 employees, including approximately 30,000 employed
domestically, with the balance employed in our international operations. Of the domestic employees, approximately 200 are
represented by a union. Approximately 1,700 of our international employees are represented by unions, primarily in Mexico. We
have had no work stoppages or strikes by our employees. Management considers its relations with employees and union
officials to be good.
As of June 30, 2003, approximately 23,000 employees provide services to our commercial clients, approximately 12,000
employees provide services to our state and local government clients and approximately 5,000 employees provide services to our
federal government clients. Approximately 2,400 of our employees have federal government security clearances.
U.S. Securities and Exchange Commission Reports
All of our Annual Reports on Form 10 K, Quarterly Reports on Form 10 Q and Current Reports on Form 8 K, and all
amendments to those reports, filed with or furnished to the U.S. Securities and Exchange Commission ( SEC ) on or after
September 17, 2002 are available free of charge through our internet website, www.acs inc.com, as soon as reasonably practical
after we have electronically filed such material with, or furnished it to, the SEC.
Item 2. Properties
As of June 30, 2003, we have approximately 453 locations in the United States and 21 locations in nine other countries. In
addition, our employees are in numerous client locations where we neither own nor lease the occupied space. We own
approximately 1.2 million square feet of real estate space and approximately 5.8 million square feet is leased. The leases expire
from calendar years 2003 to 2018 and we do not anticipate any significant difficulty in obtaining lease renewals or alternate
space. Our executive offices are located in Dallas, Texas at a company owned facility of approximately 630,000 square feet,
which also houses a host data center and other operations. We believe that our current facilities are suitable and adequate for our
Item 3. Legal Proceedings
On December 16, 1998, a state district court in Houston, Texas entered final judgment against us in a lawsuit brought by 21
former employees of Gibraltar Savings Association and/or First Texas Savings Association (collectively, GSA/FTSA ).
The GSA/FTSA employees alleged that they were entitled to the value of 803,082 shares of our stock (adjusted for February
2002 stock split) pursuant to options issued to the GSA/FTSA employees in 1988 in connection with a former technology
outsourcing services agreement between GSA/FTSA and us. The judgment against us was for approximately $17 million,
which includes attorneys' fees and pre judgment interest, but excludes additional attorneys' fees of approximately $0.9
million and post judgment interest at the statutorily mandated rate of 10% per annum, which could be awarded in the event
the plaintiffs are successful upon appeal and final judgment. The judgment was appealed by the plaintiffs and us.
On August 29, 2002, the Fourteenth Court of Appeals, Houston, Texas, reversed the trial court's judgment and remanded the
case to the trial court for further proceedings. However, the court of appeals affirmed the trial court judgment in part as to
one of the plaintiffs. The court of appeals also held that the trial court did not err in dismissing certain of our affirmative
defenses at a pretrial conference. We and the plaintiffs filed motions for rehearing with the court of appeals. On January 16,
2003, the court of appeals denied both motions for rehearing (except the court reversed its previous ruling that the trial court
should have applied prejudgment interest at 6% rather than 10%).