AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
19. Subsequent Events
In August 2003, we announced an agreement to sell the majority of our federal government business to Lockheed Martin
Corporation for approximately $658 million, which includes $70 million payable pursuant to a five year non compete
agreement. Revenues from the federal business to be divested were approximately $685 million for fiscal 2003. We will retain
our business process outsourcing contract with the Department of Education, with current annual revenues of $172 million.
Additionally, our commercial and state and local government operations will continue to serve as a subcontractor on portions
of the transferred business. In addition, we will acquire Lockheed Martin Corporation's commercial information technology
business, with trailing, recurring annual revenues of approximately $240 million, for approximately $107 million. These
transactions, which are subject to certain closing conditions, are expected to be completed during the second quarter of fiscal
2004. The expected after tax proceeds from the divestiture will generally be used to pay down debt, fund our share repurchase
program, or for general corporate purposes.
On September 2, 2003, we announced that our Board of Directors authorized a share repurchase program of up to $500 million
of our Class A common stock effective immediately. The program, which is open ended, will allow us to repurchase our
shares on the open market from time to time in accordance with the requirements of the SEC, including shares that could be
purchased pursuant to SEC Rule 10b5 1. The number of shares to be purchased and the timing of purchases will be based on
the level of cash and debt balances, general business conditions and other factors, including alternative investment
opportunities. We intend to fund the repurchase program from various sources, including, but not limited to, cash flow from
operations, borrowings under our existing revolving credit facility, and if consummated, proceeds from the sale of the majority
of our federal government business.