AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
1.  Business and Summary of Significant Accounting Policies 
Description of business and basis of presentation 
We are a Fortune 500 company comprised of more than 40,000 people in nearly 100 countries.  We operate in three business 
segments: commercial, state and local governments and federal government, and provide business process, technology 
outsourcing, and system integration solutions to our clients. We were incorporated on June 8, 1988. 
The consolidated financial statements are comprised of our accounts and our majority owned subsidiaries. All significant 
intercompany accounts and transactions have been eliminated in consolidation. Our fiscal year ends on June 30. The 
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally 
accepted in the United States of America that require management to make estimates and assumptions that affect the reported 
amounts of assets and liabilities, the disclosure of contingent assets and liabilities, the reported amount of revenues and 
expenses during the reporting period, as well as the accompanying notes. These estimates are based on information available to 
us as of the date of the financial statements. Actual results could differ from these estimates. 
Cash and cash equivalents 
Cash and cash equivalents consist primarily of cash, short term investments in commercial paper, and money market investments 
that have an initial maturity of three months or less. Cash equivalents are valued at cost, which approximates market. 
Allowance for doubtful accounts 
We make estimates of the collectibility of our accounts receivable.  We specifically analyze accounts receivable and historical 
bad debts, customer credit worthiness, current economic trends, and changes in our customer payment terms and collection 
trends when evaluating the adequacy of our allowance for doubtful accounts. Any change in the assumptions used in analyzing 
a specific account receivable may result in additional allowance for doubtful accounts being recognized in the period in which 
the change occurs.  
Inventory 
Inventories consist primarily of micrographic supplies and equipment, bindery materials, photo enforcement equipment, 
network computer hardware and computer maintenance parts, which are generally recorded at the lower of cost or market (net 
realizable value) using the first in, first out method. 
Property, equipment and software, net 
Property and equipment are recorded at cost. Depreciation is computed using the straight line method over the estimated useful 
lives of the assets, which for equipment ranges primarily from three to twelve years and for buildings and improvements up to 
forty years.  Leasehold improvements are depreciated over the shorter of the term of the lease or the estimated life. 
Depreciation expense on property and equipment was approximately $98.8 million, $74.5 million and $50.7 million for the 
fiscal years ended June 30, 2003, 2002 and 2001, respectively. 
Costs incurred to develop computer software to be sold as a separate product are capitalized only after technological feasibility 
has been established. Purchased computer software is amortized using the straight line method over expected useful lives, 
which range from two to five years.  Amortization of computer software was approximately $23.8 million, $13.9 million and 
$6.0 million in fiscal years 2003, 2002 and 2001, respectively.  
36




  

Home

About Services Network Support FAQ Order Contact
 

Web Hosting Ratings

Our partners:Jsp Web Hosting Unlimited Web Hosting Cheapest Web Hosting  Java Web Hosting Web Templates Best Web Templates PHP Mysql Web Hosting Interland Web Hosting Cheap Web Hosting PHP Web Hosting Tomcat Web Hosting Quality Web Hosting Best Web Hosting  Mac Web Hosting 

Lunarwebhost.net  Business web hosting division of Vision Web Hosting Inc. All rights reserved