EX-11 2 xrx10q33101exh11.txt COMPUTATION OF PER SHARE EARNINGS Exhibit 11 Xerox Corporation Computation of Net Income (Loss) Per Common Share (Dollars in millions, except per-share data; shares in thousands) Three months ended March 31, 2001 2000 I. Basic Net Income (Loss) Per Common Share Net Income (Loss) $ 201 $ (248) Accrued dividends on ESOP preferred stock, net (12) (11) Adjusted net income (loss) $ 189 $ (259) Average common shares outstanding during the period 678,518 665,735 Common shares issuable with respect to exchangeable shares 908 921 Adjusted average shares outstanding for the period 679,426 666,656 Basic earnings (loss) per share $ 0.28 $ (0.39) II. Diluted Net Income (Loss) Per Common Share Net Income (Loss) $ 201 $ (248) ESOP expense adjustment, net of tax (7) (11) Interest on convertible debt, net of tax - - Adjusted net income (loss) $ 194 $ (259) Average common shares outstanding during the period 678,518 665,735 Stock options, incentive and exchangeable shares 4,619 921 Convertible debt 1,992 - ESOP preferred stock 96,111 - Adjusted average shares outstanding for the period 781,240 666,656 Diluted earnings (loss) per share $ 0.25 $ (0.39)