AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

The acquisition was accounted for under the purchase method of accounting with assets acquired of $934.1 million and 

liabilities assumed of $109.1 million.  The purchase price was allocated to assets acquired and liabilities assumed based on the 

estimated fair value at July 31, 2001 as follows (in thousands): 

Current assets 

$ 111,561 

Property, equipment and software 

50,972 

Other  assets 

2,826 

Intangible assets 

64,300 

Goodwill  

704,392 

  Total assets acquired 

  934,051 

Current liabilities 

  109,051 

  Total liabilities assumed 

  109,051 

  Net assets acquired 

$ 825,000 

The total amount of goodwill is expected to be fully deductible for tax purposes.  Software of $41.5 million is included in 

property, equipment and software and has an anticipated useful life ranging from 2 to 10 years.  The $64.3 million of acquired 

intangible assets is attributable to customer relationships with an aggregate anticipated useful life of approximately 11 years. 

In June 2002 we acquired AFSA, a subsidiary of FleetBoston Financial Corporation, for approximately $410 million plus 

related transaction costs.  The acquisition was funded with a combination of a $375 million 18 month interim credit facility, 

borrowings from our then existing revolving credit facility, and existing cash on hand.  AFSA is the nation's largest 

educational services company, servicing a student loan portfolio of 8.1 million borrowers with outstanding loans of 

approximately $85 billion, and this acquisition expands our offerings in the education services market.  Additionally, AFSA is 

a leading business process outsourcer for federal, state, and local governments for a variety of health and human services 

programs, including Medicare, Medicaid, children's health insurance programs (CHIP), and welfare and community services. 

The acquisition was accounted for under the purchase method of accounting with assets acquired of $488.6 million and 

liabilities assumed of $54.7 million.  The purchase price was allocated to assets acquired and liabilities assumed based on the 

estimated fair value at June 1, 2002 as follows (in thousands): 

Current assets 

$

83,855 

Property, equipment and software 

37,440 

Other assets 

5,475 

Intangible assets 

48,331 

Goodwill  

313,487 

  Total assets acquired 

  488,588 

Current liabilities 

54,678 

  Total liabilities assumed 

54,678 

  Net assets acquired 

$ 433,910 

The total amount of goodwill is expected to be fully deductible for tax purposes.  Software of $17.6 million is included in 

property, equipment and software and has an anticipated useful life of approximately 6 years.  The $48.3 million of acquired 

intangible assets is primarily attributable to customer relationships with an aggregate anticipated useful life of approximately 11 

years and non compete agreements with amortization periods of approximately 5 years. 

In May 2002, we acquired the finance and accounting business process outsourcing unit of Andersen Worldwide ("Andersen"). 

Included in this acquisition are contracts with General Motors ( GM ) and the University of Phoenix ( the University ). Under 

a new 10 year agreement with GM, we will provide transactional accounting services such as payroll processing, disbursement 

processing, dealer accounting, accounts receivable processing, lease and subsidiary accounting, and expense reporting in the 

United States and Europe. Under the arrangement with the University, we will provide student financial aid business process 

outsourcing services to the University including federal eligibility determinations, loan and grant processing, 

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