AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

At June 30, 2003, we have approximately $520.9 million available for use under the $875 million revolving credit agreement 

after considering outstanding letters of credit of $176.4 million. We use letters of credit to secure certain contractual 

performance and other obligations.  

8.  Income Taxes  

Income tax expense (benefit) is comprised of the following (in thousands): 

Year ended June 30, 

2003 

2002 

2001 

Current: 

    U.S. Federal 

$  71,420 

$  74,112 

  $50,022    

    State 

8,334 

8,934 

6,131 

    Foreign 

3,500  

2,727  

1,689 

Total current expense 

  83,254  

85,773  

57,842 

Deferred: 

    U.S. Federal 

  92,182 

  42,150 

  27,417 

    State 

9,517 

2,937 

1,485 

    Foreign 

(848) 

                 24 

         Total deferred expense 

  100,851  

45,087  

28,926 

        Total income tax expense 

$ 184,105 $ 

130,860  

$86,768 

Deferred tax assets (liabilities) consist of the following (in thousands): 

                                                                                                                                                             June 30, 

 2003   

2002 

Deferred tax assets: 

    Accrued expenses not yet deductible for tax purposes 

$  15,825 

$ 

7,117 

    Unearned revenue 

5,626 

4,481 

    Loss carryforwards 

2,198 

2,428 

    Divestiture related accruals 

1,017 

4,356 

    Other 

         873 

Subtotal  

   24,666 

 19,255 

    Deferred tax assets valuation allowance                                                              

(83) 

          (105) 

             Total deferred tax assets  

   24,583  

19,150 

Deferred tax liabilities: 

  Goodwill amortization 

(120,023) 

     (72,665)    

Depreciation and other amortization 

  (64,605) 

     (34,001) 

    Unbilled revenue 

  (31,832) 

        (9,301)   

    Prepaid and receivables 

   (7,512) 

        (5,921) 

    Other 

 (3,149) 

           Total deferred tax liabilities 

(227,121)   

    (121,888) 

Net deferred tax liabilities 

$(202,538) 

$  (102,738) 

47