Cover Page About Brinker International Inc. Financial Highlights To Our Shareholders, Employees and Guests Chili's Romano's Macaroni Grill On The Border Mexican Grill & Cantina Maggiano's Little Italy Corner Bakery Cafe Cozymel's Coastal Grill Big Bowl Asian Kitchen Rockfish Seafood Grill Board of Directors Principal Officers Principal Officers in Restaurant Concepts Shareholder Information FINANCIAL INFORMATION    Selected Financial Data    Management's Discussion and Analysis    Consolidated Statements of Income    Consolidated Balance Sheets    Consolidated Statements of Shareholders' Equity    Consolidated Statements of Cash Flows    Notes to Consolidated Financial Statements    Independent Auditors' Report    Management's Responsibility Back Cover

CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts)

2002 2001 ASSETS Current Assets:   Cash and cash equivalents $ 10,091   $ 13,312     Accounts receivable   22,613     31,438   Inventories   25,190     27,351   Prepaid expenses and other   66,727     57,809   Income taxes receivable   15,673     3,019   Deferred income taxes   1,660     7,295     Total current assets   141,954     140,224 Property and Equipment, at Cost:   Land   254,000     201,013   Buildings and leasehold improvements   1,091,434     898,133   Furniture and equipment   635,403     478,847   Construction-in-progress   57,015     70,051   2,037,852     1,648,044   Less accumulated depreciation and amortization   (682,435 )   (563,320 )     Net property and equipment   1,355,417     1,084,724 Other Assets:   Goodwill   193,899     138,127   Other   92,066     82,245     Total other assets   285,965     220,372     Total assets $ 1,783,336   $ 1,445,320   LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities:   Current installments of long-term debt $ 17,292   $ 17,635   Accounts payable   118,418     98,175   Accrued liabilities   166,510     134,420     Total current liabilities   302,220     250,230 Long-term debt, less current installments   426,679     236,060 Deferred income taxes   17,295     6,782 Other liabilities   60,046     51,961 Commitments and Contingencies (Notes 8 and 14) Shareholders' Equity:   Common stock—250,000,000 authorized shares; $.10 par value; 117,500,054     shares issued and 97,440,391 shares outstanding at June 26, 2002, and 117,501,080     shares issued and 99,509,455 shares outstanding at June 27, 2001   11,750     11,750   Additional paid-in capital   330,191     314,867   Retained earnings   954,701     801,988   1,296,642     1,128,605 Less: Treasury stock, at cost (20,059,663 shares at June 26, 2002 and 17,991,625 shares at   June 27,2001)   (317,674 )   (225,334 ) Accumulated other comprehensive loss   —     (895 ) Unearned compensation   (1,872 )   (2,089 )   Total shareholders' equity   977,096     900,287   Total liabilities and shareholders' equity $ 1,783,336   $ 1,445,320 See accompanying notes to consolidated financial statements.