AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
5. Goodwill and Other Intangible Assets
We adopted SFAS 142 effective July 1, 2001. The following table reflects the effect of SFAS 142 on net income and earnings
per share as if SFAS 142 had been in effect for all periods presented (in thousands except per share amounts):
Year ended June 30,
2003
2002
2001
Net income:
As reported
$ 306,842
$ 229,596
$ 134,292
Add back goodwill amortization,
net of related tax benefit ($3,757)
20,711
As adjusted
$ 306,842
$ 229,596
$ 155,003
Basic earnings per share:
As reported
$ 2.32
$ 1.94
$ 1.35
Add back goodwill amortization
(net of tax benefit)
0.21
As adjusted
$ 2.32
$ 1.94
$ 1.56
Diluted earnings per share:
As reported
$ 2.20
$ 1.76
$ 1.23
Add back goodwill amortization
(net of tax benefit)
0.18
As adjusted
$ 2.20
$ 1.76
$ 1.41
The changes in the carrying amount of goodwill for the years ended June 30, 2003 and 2002 are as follow (in thousands):
State and
Local
Federal
Government
Commercial
Government
Total
Balance as of June 30, 2001
$ 320,112
$ 254,775
$ 122,873
$ 697,760
Goodwill activity during the year
735,402
399,969
13,351
1,148,722
Balance as of June 30, 2002
1,055,514
654,744
136,224
1,846,482
Goodwill activity during the year
23,770
35,543
83
59,396
Balance as of June 30, 2003
$ 1,079,284
$ 690,287
$ 136,307
$ 1,905,878
Goodwill balances by segment as of June 30, 2002 and 2001 have been restated to reflect a change in our internal organization
that caused the composition of our reportable segments to change. Fiscal 2003 and 2002 activity is primarily related to
acquisitions.
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