8-K 1 0001.txt 8-K REPORT DATED 11/03/00 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (date of earliest event reported): November 3, 2000 XEROX CORPORATION (Exact name of registrant as specified in its charter) New York 1-4471 16-0468020 (State or other (Commission File (IRS Employer jurisdiction of Number) Identification incorporation) No.) 800 Long Ridge Road P. O. Box 1600 Stamford, Connecticut 06904-1600 (Address of principal executive offices)(Zip Code) Registrant's telephone number, including area code: (203) 968-3000 Item 5. Other Events Registrant is filing this Current Report on Form 8-K to disclose its Consolidated Statements of Income, Consolidated Balance Sheets and Consolidated Statements of Cash Flows for and as of the fiscal quarter ended September 30, 2000 in advance of filing same in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2000, which Registrant expects to file later this month. There are no accompanying notes to these financial statements. The notes to these financial statements will be included in the Form 10-Q filing. Xerox Corporation Consolidated Statements of Income (Unaudited) Three months ended Nine months ended September 30, September 30, (In millions, except per-share data) 2000 1999 2000 1999 Revenues Sales $ 2,375 $ 2,463 $ 7,192 $ 7,144 Service, outsourcing, financing and rentals 2,087 2,164 6,389 6,645 Total Revenues 4,462 4,627 13,581 13,789 Costs and Expenses Cost of sales 1,509 1,385 4,266 3,899 Cost of service, outsourcing, financing and rentals 1,316 1,238 3,902 3,708 Inventory charges - - 119 - Research and development expenses 272 230 776 737 Selling, administrative and general expenses 1,379 1,208 3,947 3,631 Restructuring charge and asset impairments - - 504 - Mexico provision 55 - 170 - Gain on affiliate's sale of stock - - (21) - Purchased in-process research and development - - 27 - Other, net 127 61 276 182 Total Costs and Expenses 4,658 4,122 13,966 12,157 Income (Loss) before Income Taxes (Benefits), Equity Income and Minorities' Interests (196) 505 (385) 1,632 Income taxes (benefits) (29) 157 (93) 506 Equity in net income of unconsolidated affiliates (10) (5) (60) (39) Minorities' interests in earnings of subsidiaries 10 14 33 35 Net Income (Loss) $ (167) $ 339 $ (265) $ 1,130 Basic Earnings (Loss) per Share $ (0.26) $ 0.50 $ (0.44) $ 1.66 Diluted Earnings (Loss) per Share $ (0.26) $ 0.47 $ (0.44) $ 1.55 ------------------------------------------------------------------------------ Xerox Corporation Consolidated Balance Sheets September 30, December 31, (In millions, except share data in thousands) 2000 1999 Assets (Unaudited) Cash $ 154 $ 126 Accounts receivable, net 2,422 2,622 Finance receivables, net 4,909 5,115 Inventories 3,108 2,961 Deferred taxes and other current assets 1,552 1,230 Total Current Assets 12,145 12,054 Finance receivables due after one year, net 8,155 8,203 Land, buildings and equipment, net 2,499 2,456 Investments in affiliates, at equity 1,582 1,615 Goodwill, net 1,628 1,724 Intangible and other assets 2,481 1,701 Investment in discontinued operations 793 1,130 Total Assets $ 29,283 $ 28,883 Liabilities and Equity Short-term debt and current portion of long-term debt $ 4,015 $ 3,957 Accounts payable 997 1,016 Accrued compensation and benefit costs 589 715 Unearned income 232 186 Other current liabilities 1,705 2,163 Total Current Liabilities 7,538 8,037 Long-term debt 13,132 10,994 Postretirement medical benefits 1,167 1,133 Deferred taxes and other liabilities 2,223 2,245 Discontinued operations liabilities - policyholders' deposits and other 50 428 Deferred ESOP benefits (299) (299) Minorities' interests in equity of subsidiaries 124 127 Company-obligated, mandatorily redeemable preferred securities of subsidiary trust holding solely subordinated debentures of the Company 638 638 Preferred stock 659 669 Common shareholders' equity 4,051 4,911 Total Liabilities and Equity $ 29,283 $ 28,883 Shares of common stock issued and outstanding 667,005 665,156 --------------------------------------------------------------------------- Xerox Corporation Consolidated Statements of Cash Flows (Unaudited) Nine months ended September 30 (In millions) 2000 1999 Cash Flows from Operating Activities Net Income (Loss) $ (265) $1,130 Adjustments required to reconcile income to cash flows from operating activities: Depreciation and amortization 824 659 Provisions for doubtful accounts 316 205 Restructuring and other charges 623 - Mexico provision 170 - Gain on affiliate's sale of stock (21) - Gain on divestitures (63) - Purchased in-process research and development 27 - Provision for postretirement medical benefits, net of payments 34 31 Cash payments for the 1998 restructuring (101) (327) Cash payments for the 2000 restructuring (69) - Minorities' interests in earnings of subsidiaries 33 35 Undistributed equity in income of affiliated companies (20) (39) Increase in inventories (217) (57) Increase in on-lease equipment (483) (249) Increase in finance receivables (736) (901) Proceeds from securitization of finance receivables - 1,150 Increase in accounts receivable (249) (480) Proceeds from securitization of accounts receivable 315 - Decrease in accounts payable and accrued compensation and benefit costs (126) (411) Net change in current and deferred income taxes (491) 197 Change in other current and noncurrent liabilities (294) (224) Other, net (278) (428) Total (1,071) 291 Cash Flows from Investing Activities Cost of additions to land, buildings and equipment (324) (393) Proceeds from sales of land, buildings and equipment 80 29 Proceeds from divestitures 90 - Acquisitions, net of cash acquired (873) (107) Other, net - (24) Total (1,027) (495) Cash Flows from Financing Activities Net change in debt 2,208 565 Proceeds from secured borrowing 411 - Dividends on common and preferred stock (441) (439) Proceeds from sale of common stock 22 125 Proceeds from(settlements of)equity put options 24 (5) Dividends to minority shareholders (5) (29) Total 2,219 217 Effect of Exchange Rate Changes on Cash (1) (9) Cash Provided by Continuing Operations 120 4 Cash Provided (Used) by Discontinued Operations (92) 23 Increase in Cash 28 27 Cash at Beginning of Period 126 79 Cash at End of Period $ 154 $ 106 ----------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly authorized this report to be signed on its behalf by the undersigned duly authorized. XEROX CORPORATION /s/ MARTIN S. WAGNER -------------------------------- By: MARTIN S. WAGNER Assistant Secretary Dated: November 3, 2000