AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

and disbursement of student aid as well as other support services related to student financial aid processing.  The acquisition 

was valued at $65.2 million plus related transaction costs, with assets acquired of $79.0 million and liabilities assumed of  

$13.8 million.  We recorded goodwill of $58.7 million (which is fully deductible for tax purposes) and $9.1 million in 

customer related intangible assets, which are attributable to customer relationships with lives of three to ten years.  Andersen's 

operating results are included in our consolidated financial statements from the effective date of the acquisition, May 1, 2002 

for the domestic operations and June 1, 2002 for the foreign operations.  This acquisition is not considered material to our 

results of operations; therefore, no pro forma information is presented. 

In August 2001, we acquired the business process outsourcing services unit of National Processing Company ( NPC ).  NPC 

provides healthcare claims processing, credit card application processing, and airline lift ticket processing. As part of the 

transaction, we acquired all of NPC's offshore operations in Jamaica, the Dominican Republic, Barbados, and a majority of 

NPC's Mexican operations.  The transaction value was $43 million plus related transaction costs, with assets acquired of $50.3 

million and liabilities assumed of $7.3 million.  We recorded goodwill of $25.8 million of which 61% is fully deductible for 

tax purposes and $2.8 million in customer related intangible assets, which are attributable to customer relationships with an 

aggregate anticipated useful life of approximately 3 years.  NPC's operating results are included in our consolidated financial 

statements from the effective date of the acquisition, August 1, 2001.  This acquisition is not considered material to our results 

of operations; therefore, no pro forma information is presented. 

We completed four other acquisitions during fiscal 2002, two of which were included in our commercial segment, one in our 

state and local governments segment, and one in our federal government segment.  These acquisitions are not considered 

material to our results of operations either individually or in the aggregate; therefore, no pro forma information is presented. 

During fiscal year 2001, we acquired five companies. The most significant of these increased our presence in the state and 

local government sector. We acquired the Global Government Solutions division of Systems & Computer Technology 

Corporation, which delivers state and local government outsourcing solutions. We also acquired Business Resources 

Corporation, which provides outsourced records management, document workflow imaging systems and services, and real 

estate title plant services to state and local governments.  These acquisitions are not considered material to our results of 

operations either individually or in the aggregate; therefore, no pro forma information is presented.  

We are obligated to make certain contingent payments to former owners based on the achievement of specified profit levels in 

conjunction with certain acquisitions. During fiscal 2003, we made contingent consideration payments of $8.0 million related 

to acquisitions completed in prior years. During fiscal 2002, we made no contingent consideration payments related to 

acquisitions completed in prior years. As of June 30, 2003, the maximum aggregate amount of the outstanding contingent 

obligations is approximately $30.9 million, none of which has been earned to date. Any such payments result in a 

corresponding increase in goodwill. 

Unaudited Pro Forma Financial Information 

The following unaudited pro forma financial information presents a summary of our consolidated results of operations as if the 

IMS and AFSA acquisitions had occurred at the beginning of the periods presented and are not necessarily indicative of future 

results or actual results that would have been achieved had the acquisitions occurred at the beginning of the periods presented 

(in thousands, except per share amounts).  Pro forma information for these acquisitions is not presented for fiscal year 2003 

because there is no difference between pro forma and reported financial information. 

For the years ended 

June 30, 

2002 

2001 

Revenue 

$

3,267,517

$        2,835,551 

Net income 

256,268

181,811 

Earnings per common share: 

Basic 

$

2.16

$                 1.82  

Diluted 

$

1.96

$                 1.64  

42