AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

The following tables reflect the results of the segments consistent with our management system (in thousands): 

State and 

Local 

Federal 

Government Commercial Government Corporate  Consolidated 

Fiscal 2003 

Revenues 

$       1,694,178 

$      1,242,908 

$         850,120 

$                     

$       3,787,206 

Operating expenses   

1,353,585 

954,762 

763,440 

44,010 

3,115,797 

Adjusted EBITDA (b) 

340,593 

288,146 

86,680 

(44,010) 

671,409 

Depreciation and amortization expense  

47,700 

80,111 

21,495 

2,822 

152,128 

Operating income 

$          292,893 

$         208,035 

$           65,185 

$        (46,832) 

$          519,281 

Total assets 

$       1,865,072 

$      1,338,728 

$         376,727 

$       118,178 

$       3,698,705 

Capital expenditures 

$            94,241 

$           93,912 

$           15,578 

$           1,942 

$          205,673 

Fiscal 2002 

Revenues(a) 

$       1,294,250 

$        957,333 

$         811,335 

$                     

$       3,062,918 

Operating expenses 

1,021,067 

774,197 

727,783 

28,753 

2,551,800 

Adjusted EBITDA (b) 

273,183 

183,136 

83,552 

      (28,753) 

511,118 

Depreciation and amortization expense 33,457 

57,020 

17,894 

2,115 

110,486 

Operating income 

$          239,726 

$         126,116 

$          65,658 

$        (30,868) 

$          400,632 

Total assets 

$       1,660,307 

$      1,235,841 

$        425,732 

$         81,687 

$       3,403,567 

Capital expenditures 

$            61,725 

$           43,432 

$          28,380 

$         10,869 

$          144,406 

Fiscal 2001 

Revenues(a) 

$          386,436 

$         929,457 

$         747,666 

$                     

$       2,063,559 

Operating expenses  

291,905 

757,212 

          676,728 

20,371 

1,746,216 

Adjusted EBITDA (b) 

94,531 

172,245 

70,938 

(20,371) 

317,343 

Depreciation and amortization expense 

(excluding goodwill amortization) 

10,335 

45,319 

11,795 

1,700 

69,149 

Goodwill amortization expense 10,422 

9,328 

4,718 

24,468 

Operating income 

$            73,774 

$         117,598   

$           54,425 

$        (22,071) 

$          223,726 

Total assets 

$          524,340 

$         670,666 

$         392,389 

$       304,292 

$       1,891,687 

Capital expenditures 

$            24,400 

$           55,152 

$           15,268 

$           4,250 

$            99,070 

(a)  Commercial revenues include $33.0 million and $37.3 million in fiscal year 2002 and 2001, respectively related to divested units.  Federal 

government revenues include $4.3 million in fiscal 2002 related to divested units. 

(b)  Adjusted EBITDA is earnings before interest expense, income taxes, depreciation and amortization, and additionally excludes other net non 

operating expenses. We use Adjusted EBITDA, together with operating income, as a measure of segment and consolidated performance.  We 

believe the exclusion of depreciation and amortization charges and net non operating expense provides a meaningful measure of operating 

performance, and consistently excludes only these items in the calculation of Adjusted EBITDA. We believe that net income is the most directly 

comparable financial measure calculated in accordance with GAAP, therefore, we have reconciled Adjusted EBITDA to net income.  We do not 

use Adjusted EBITDA as a measure of liquidity.  Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and 

should not be considered in isolation or as an alternative to net income or as an indicator of our performance or to cash flows from operating 

activities as a measure of liquidity.  Our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. 

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