AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
Revenues earned in excess of related billings are accrued, whereas billings in excess of revenues earned are deferred until the 
related services are provided.  Immediate recognition is made of any anticipated losses. 
Income taxes 
Deferred income taxes provided in the accompanying financial statements are determined based on the difference between 
financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the years in which such 
differences are expected to reverse. See Note 8 for discussion of income taxes. 
Earnings per share 
Basic earnings per share is computed using the weighted average number of common shares outstanding during the period.  
Diluted earnings per share is computed using the combination of dilutive common share equivalents and the weighted average 
number of common shares outstanding during the period.  All share and per share information is presented giving effect to the 
two for one stock split of our Class A and Class B common shares that occurred February 22, 2002 (see Note 9).  See Note 11 
for the computation of earnings per share.  
Stock based compensation 
In December 2002, the FASB issued Statement of Financial Accounting Standards No. 148  Accounting for Stock Based 
Compensation   Transition and Disclosure  ( SFAS 148 ). SFAS 148 provides alternative methods of transition for a 
voluntary change to the fair value method of accounting for stock based employee compensation.  SFAS 148 also amends the 
disclosure requirements of SFAS 123 to require prominent disclosures in both annual and interim financial statements about 
the method of accounting for stock based employee compensation and the effect of the method used on reported results. We 
adopted the disclosure requirements of SFAS 148 effective for the quarter ended March 31, 2003.  
We follow Accounting Principles Board Opinion No. 25,  Accounting for Stock Issued to Employees,  ("APB 25") in 
accounting for our stock based compensation plans.  Under APB 25, no compensation expense is recognized for our stock 
based compensation plans since the exercise prices of awards under our plans are at current market prices of our stock on the 
date of grant. Had compensation cost for our stock based compensation plans been determined based on the fair value at the 
grant date under those plans consistent with the fair value method of SFAS 123, our net income and earnings per share would 
have been reduced to the pro forma amounts indicated below: 
For the year ended June 30, 
2003   2002   2001  
Net Income 
As reported 
$    306,842    $  229,596   
$  134,292
Less: Pro forma employee compensation cost of stock based 
compensation plans, net of tax 
17,570  
11,936   
8,862
Pro forma 
$    289,272   $  217,660   
$  125,430
   
   
Basic earnings per share 
   
As reported 
$           2.32    $        1.94   
$        1.35
Pro forma 
$           2.18    $        1.83   
$        1.26
   
   
Diluted earnings per share 
As reported 
$           2.20
 $        1.76  
$        1.23  
Pro forma 
$           2.09
 $        1.68  
$        1.16  
39




  

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