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 STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands)

Common Stock Additional Paid-In Retained Treasury Accumu- lated Other Compre- hensive Unearned Compen- Shares Amount Capital Earnings Stock Loss sation Total Balances at June 30, 1999   98,847 $ 11,722 $ 285,448 $ 539,011 $ (174,742 ) $ — $ — $ 661,439 Net income — — — 117,840 — — — 117,840 Purchases of treasury stock (3,668 ) — — — (60,707 ) — — (60,707 ) Issuances of common stock 3,291 — (3,187 ) — 33,832 — — 30,645 Tax benefit from stock options   exercised — — 10,837 — — — — 10,837 Amortization of unearned   compensation — — — — — — 2,124 2,124 Issuance of restricted stock, net   of forfeitures 328 32 5,074 (11 ) 86 — (5,151 ) 30 Balances at June 28, 2000   98,798 11,754 298,172 656,840 (201,531 ) — (3,027 ) 762,208 Net income — — — 145,148 — — — 145,148 Change in fair value of   derivatives, net of tax — — — — — (895 ) — (895 )   Comprehensive income 144,253 Purchases of treasury stock (2,841 ) — — — (65,578 ) — — (65,578 ) Issuances of common stock 3,541 — (2,529 ) — 41,194 — — 38,665 Tax benefit from stock options   exercised — — 19,430 — — — — 19,430 Amortization of unearned   compensation — — — — — — 1,307 1,307 Issuance of restricted stock, net   of forfeitures 11 (4 ) (206 ) — 581 — (369 ) 2 Balances at June 27, 2001   99,509 11,750 314,867 801,988 (225,334 ) (895 ) (2,089 ) 900,287 Net income — — — 152,713 — — — 152,713 Reclassification adjustment to   earnings, net of tax — — — — — 895 — 895   Comprehensive income 153,608 Purchases of treasury stock (5,058 ) — — — (136,069 ) — — (136,069 ) Issuances of common stock 2,890 — (4,602 ) — 42,394 — — 37,792 Tax benefit from stock options   exercised — — 18,826 — — — — 18,826 Amortization of unearned   compensation — — — — — — 1,594 1,594 Issuance of restricted stock, net   of forfeitures 99 — 1,100 — 1,335 — (1,377 ) 1,058 Balances at June 26, 2002 97,440 $ 11,750 $ 330,191 $ 954,701 $ (317,674 ) $ — $ (1,872 ) $ 977,096 See accompanying notes to consolidated financial statements.