On March 3, 2003, we filed a Petition for Review with the Texas Supreme Court requesting that the Court reverse the 

decision of the court of appeals and render judgment that the plaintiffs take nothing or, alternatively, remand the case to the 

trial court for further proceedings.  The plaintiffs did not file a petition for review with the Texas Supreme Court.  On June 

19, 2003, the Texas Supreme Court requested that the parties file briefs on the merits of the appeal.  We filed our brief on the 

merits on August 20, 2003, and the plaintiffs  brief on the merits is currently due by October 9, 2003.

We continue to believe that we have a meritorious defense to all or a substantial portion of the plaintiffs' claims, and 

accordingly, have not accrued any amount on our balance sheet related to the lawsuit. 

One of our subsidiaries, ACS Defense, Inc., and several other government contractors received a grand jury document 

subpoena issued by the U.S. District Court for the District of Massachusetts in October 2002.  The subpoena was issued in 

connection with an inquiry being conducted by the Antitrust Division of the U.S. Department of Justice.  The inquiry 

concerns certain IDIQ (Indefinite Delivery   Indefinite Quantity) procurements and their related task orders which occurred 

in the late 1990s at Hanscom Air Force Base in Massachusetts.  Our revenue from the contracts that we believe to be the 

focus of the Justice Department's inquiry is approximately $25 million per year representing approximately 0.6% of our 

annual revenue.  We are conducting an ongoing internal investigation of this matter through outside legal counsel and we are 

cooperating with the Department of Justice in producing documents in response to the subpoena and arranging for 

Department of Justice interviews of employees and former employees. 

Another of our subsidiaries, ACS State & Local Solutions, Inc., and a teaming partner of this subsidiary, Tier Technologies, 

Inc., received a grand jury document subpoena issued by the U.S. District Court for the Southern District of New York in 

May 2003. The subpoena was issued in connection with an inquiry being conducted by the Antitrust Division of the U.S. 

Department of Justice. The inquiry concerns the teaming arrangement between ACS and Tier Technologies on child support 

payment processing contracts awarded to ACS and Tier Technologies, as a subcontractor to ACS, in New York, Illinois and 

Ohio. Our annual revenue from these three contracts will be approximately $70 million when the services are fully 

implemented, representing approximately 1.8% of our annual revenue. Our teaming arrangement also contemplated the 

California child support payment processing request for proposals which is expected to be issued in September or October 

2003; however, we have not entered into a teaming agreement with Tier for California and do not expect that we and Tier 

Technologies, Inc. will team together on a proposal in response to this request for proposals. We are conducting an ongoing 

internal investigation of this matter through outside legal counsel and we are cooperating with the Department of Justice in 

producing documents in response to the subpoena. 

Due to the preliminary nature of these government inquiries, it is difficult to assess the impact, if any, of these inquiries on 

ACS. 

In addition to the foregoing, we are subject to certain other legal proceedings, inquiries, claims and disputes which arise in 

the ordinary course of business.  Although we cannot predict the outcomes of these proceedings, we do not believe these 

actions, in the aggregate, will have a material adverse effect on our financial position, results of operations or liquidity.  

Item 4.  Submission of Matters to a Vote of Security Holders 

During the fiscal fourth quarter covered by this report, no matter was submitted to a vote of our security holders. 

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