AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Further information regarding outstanding and exercisable stock options by exercise price range as of June 30, 2003 is
$ 4.00 $ 8.44
Under our 1995 Employee Stock Purchase Plan ( ESPP ), a maximum of 4 million shares of Class A common stock can be
issued to substantially all full time employees. In October 2002, the Board of Directors approved an amendment to the ESPP
to increase the number of shares that can be issued under the plan from 2 million to 4 million. Through payroll deductions,
eligible participants may purchase our stock at a 15% discount to market value. The stock is purchased by the ESPP in the
open market, and our contributions for the years ended June 30, 2003, 2002, and 2001 which were charged to additional paid
in capital, were approximately $3.3 million, $1.4 million, and $1.3 million, respectively.
Under a Supplemental Executive Retirement Agreement (the Retirement Agreement ) dated December 15, 1998, we are
obligated to pay our chairman certain retirement benefits (the Retirement Benefit ). The payment of the Retirement Benefit
would commence on the occurrence of several different events, including, retirement, total and permanent disability, death,
resignation, change in control, or termination for any reason other than cause. We have issued (and may in the future issue)
certain stock options to fund the Retirement Benefit. Based on assumptions we consider reasonable under the circumstances,
we expect that the value of the existing stock options will be sufficient to fund the Retirement Benefit, but to the extent the
value of the options granted would be insufficient to fund the Retirement Benefit, then we will have to fund such insufficiency.
At our option, we may grant additional stock options prior to the commencement of the payment of the Retirement Benefit, if
we estimate that the existing stock option grants are insufficient to satisfy our obligation under this arrangement.
We have contributory retirement and savings plans, which cover all employees and allow for discretionary matching
contributions by us as determined by our Board of Directors. Contributions made by us to certain plans during the years ended
June 30, 2003, 2002, and 2001 were approximately $24.5 million, $22.6 million and $10.5 million, respectively.
11. Earnings Per Share
Basic earnings per share of common stock is computed using the weighted average number of our common shares outstanding
during the period. Diluted earnings per share is adjusted for the after tax impact of interest on the 3.5% Notes and the 4%
Notes and reflects the incremental shares that would be available for issuance upon the assumed exercise of stock options and
conversion of the 3.5% Notes and the 4% Notes. All shares are presented after giving effect to the two for one stock split paid
on February 22, 2002 (see Note 9).