x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New York | 16-0468020 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
P.O. Box 4505, 45 Glover Avenue Norwalk, Connecticut | 06856-4505 | |
(Address of principal executive offices) | (Zip Code) |
Class | Outstanding at June 30, 2012 | |
Common Stock, $1 par value | 1,307,202,831 shares |
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in millions, except per-share data) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenues | ||||||||||||||||
Sales | $ | 1,635 | $ | 1,720 | $ | 3,223 | $ | 3,391 | ||||||||
Outsourcing, service and rentals | 3,763 | 3,731 | 7,530 | 7,363 | ||||||||||||
Finance income | 143 | 163 | 291 | 325 | ||||||||||||
Total Revenues | 5,541 | 5,614 | 11,044 | 11,079 | ||||||||||||
Costs and Expenses | ||||||||||||||||
Cost of sales | 1,092 | 1,139 | 2,144 | 2,229 | ||||||||||||
Cost of outsourcing, services and rentals | 2,625 | 2,538 | 5,315 | 5,052 | ||||||||||||
Equipment financing interest | 51 | 60 | 104 | 120 | ||||||||||||
Research, development and engineering expenses | 161 | 175 | 334 | 359 | ||||||||||||
Selling, administrative and general expenses | 1,076 | 1,119 | 2,144 | 2,238 | ||||||||||||
Restructuring and asset impairment charges | 29 | (9 | ) | 46 | (24 | ) | ||||||||||
Amortization of intangible assets | 82 | 87 | 164 | 172 | ||||||||||||
Other expenses, net | 74 | 104 | 129 | 182 | ||||||||||||
Total Costs and Expenses | 5,190 | 5,213 | 10,380 | 10,328 | ||||||||||||
Income before Income Taxes and Equity Income | 351 | 401 | 664 | 751 | ||||||||||||
Income tax expense | 66 | 108 | 143 | 203 | ||||||||||||
Equity in net income of unconsolidated affiliates | 31 | 34 | 71 | 68 | ||||||||||||
Net Income | 316 | 327 | 592 | 616 | ||||||||||||
Less: Net income attributable to noncontrolling interests | 7 | 8 | 14 | 16 | ||||||||||||
Net Income Attributable to Xerox | $ | 309 | $ | 319 | $ | 578 | $ | 600 | ||||||||
Basic Earnings per Share | $ | 0.23 | $ | 0.22 | $ | 0.42 | $ | 0.42 | ||||||||
Diluted Earnings per Share | $ | 0.22 | $ | 0.22 | $ | 0.41 | $ | 0.41 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in millions) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net Income | $ | 316 | $ | 327 | $ | 592 | $ | 616 | ||||||||
Less: Net income attributable to noncontrolling interests | 7 | 8 | 14 | 16 | ||||||||||||
Net Income Attributable to Xerox | $ | 309 | $ | 319 | $ | 578 | $ | 600 | ||||||||
Other Comprehensive (Loss) Income(1): | ||||||||||||||||
Translation adjustments, net | $ | (323 | ) | $ | 153 | $ | (163 | ) | $ | 450 | ||||||
Unrealized gains (losses), net | 34 | 6 | (9 | ) | (15 | ) | ||||||||||
Changes in defined benefit plans, net | 64 | 14 | 10 | (22 | ) | |||||||||||
Other Comprehensive (Loss) Income, net | (225 | ) | 173 | (162 | ) | 413 | ||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (1 | ) | — | — | — | |||||||||||
Other Comprehensive (Loss) Income Attributable to Xerox | $ | (224 | ) | $ | 173 | $ | (162 | ) | $ | 413 | ||||||
Comprehensive Income, net | $ | 91 | $ | 500 | $ | 430 | $ | 1,029 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 6 | 8 | 14 | 16 | ||||||||||||
Comprehensive Income Attributable to Xerox | $ | 85 | $ | 492 | $ | 416 | $ | 1,013 |
(in millions, except share data in thousands) | June 30, 2012 | December 31, 2011 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 814 | $ | 902 | ||||
Accounts receivable, net | 2,776 | 2,600 | ||||||
Billed portion of finance receivables, net | 100 | 166 | ||||||
Finance receivables, net | 2,036 | 2,165 | ||||||
Inventories | 1,073 | 1,021 | ||||||
Other current assets | 1,213 | 1,058 | ||||||
Total current assets | 8,012 | 7,912 | ||||||
Finance receivables due after one year, net | 3,780 | 4,031 | ||||||
Equipment on operating leases, net | 519 | 533 | ||||||
Land, buildings and equipment, net | 1,553 | 1,612 | ||||||
Investments in affiliates, at equity | 1,367 | 1,395 | ||||||
Intangible assets, net | 2,904 | 3,042 | ||||||
Goodwill | 8,848 | 8,803 | ||||||
Deferred tax assets, long-term | 598 | 672 | ||||||
Other long-term assets | 2,260 | 2,116 | ||||||
Total Assets | $ | 29,841 | $ | 30,116 | ||||
Liabilities and Equity | ||||||||
Short-term debt and current portion of long-term debt | $ | 1,099 | $ | 1,545 | ||||
Accounts payable | 1,712 | 2,016 | ||||||
Accrued compensation and benefits costs | 675 | 757 | ||||||
Unearned income | 404 | 432 | ||||||
Other current liabilities | 1,492 | 1,631 | ||||||
Total current liabilities | 5,382 | 6,381 | ||||||
Long-term debt | 8,061 | 7,088 | ||||||
Pension and other benefit liabilities | 2,194 | 2,487 | ||||||
Post-retirement medical benefits | 916 | 925 | ||||||
Other long-term liabilities | 793 | 861 | ||||||
Total Liabilities | 17,346 | 17,742 | ||||||
Series A Convertible Preferred Stock | 349 | 349 | ||||||
Common stock | 1,348 | 1,353 | ||||||
Additional paid-in capital | 6,347 | 6,317 | ||||||
Treasury stock, at cost | (303 | ) | (124 | ) | ||||
Retained earnings | 7,496 | 7,046 | ||||||
Accumulated other comprehensive loss | (2,878 | ) | (2,716 | ) | ||||
Xerox shareholders’ equity | 12,010 | 11,876 | ||||||
Noncontrolling interests | 136 | 149 | ||||||
Total Equity | 12,146 | 12,025 | ||||||
Total Liabilities and Equity | $ | 29,841 | $ | 30,116 | ||||
Shares of common stock issued | 1,348,042 | 1,352,849 | ||||||
Treasury stock | (40,839 | ) | (15,508 | ) | ||||
Shares of common stock outstanding | 1,307,203 | 1,337,341 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in millions) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 316 | $ | 327 | $ | 592 | $ | 616 | ||||||||
Adjustments required to reconcile net income to cash flows from operating activities: | ||||||||||||||||
Depreciation and amortization | 313 | 298 | 626 | 589 | ||||||||||||
Provision for receivables | 33 | 29 | 60 | 54 | ||||||||||||
Provision for inventory | 7 | 6 | 17 | 19 | ||||||||||||
Net gain on sales of businesses and assets | (2 | ) | (7 | ) | (3 | ) | (8 | ) | ||||||||
Undistributed equity in net income of unconsolidated affiliates | (4 | ) | (7 | ) | (35 | ) | (40 | ) | ||||||||
Stock-based compensation | 31 | 31 | 62 | 63 | ||||||||||||
Restructuring and asset impairment charges | 29 | (9 | ) | 46 | (24 | ) | ||||||||||
Payments for restructurings | (44 | ) | (63 | ) | (83 | ) | (120 | ) | ||||||||
Contributions to defined benefit pension plans | (158 | ) | (79 | ) | (237 | ) | (123 | ) | ||||||||
Increase in accounts receivable and billed portion of finance receivables | (156 | ) | (15 | ) | (608 | ) | (286 | ) | ||||||||
Collections of deferred proceeds from sales of receivables | 160 | 95 | 256 | 182 | ||||||||||||
Increase in inventories | (50 | ) | (37 | ) | (84 | ) | (137 | ) | ||||||||
Increase in equipment on operating leases | (68 | ) | (68 | ) | (135 | ) | (129 | ) | ||||||||
Decrease in finance receivables | 111 | 65 | 275 | 160 | ||||||||||||
Increase in other current and long-term assets | (61 | ) | (44 | ) | (162 | ) | (123 | ) | ||||||||
Decrease in accounts payable and accrued compensation | (93 | ) | (145 | ) | (237 | ) | (378 | ) | ||||||||
Decrease in other current and long-term liabilities | (127 | ) | (89 | ) | (162 | ) | (175 | ) | ||||||||
Net change in income tax assets and liabilities | 18 | 47 | 61 | 168 | ||||||||||||
Net change in derivative assets and liabilities | (30 | ) | 1 | (9 | ) | 24 | ||||||||||
Other operating, net | 3 | 11 | (27 | ) | (15 | ) | ||||||||||
Net cash provided by operating activities | 228 | 347 | 213 | 317 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Cost of additions to land, buildings and equipment | (82 | ) | (94 | ) | (173 | ) | (165 | ) | ||||||||
Proceeds from sales of land, buildings and equipment | 3 | 2 | 7 | 4 | ||||||||||||
Cost of additions to internal use software | (33 | ) | (41 | ) | (70 | ) | (81 | ) | ||||||||
Acquisitions, net of cash acquired | — | (94 | ) | (87 | ) | (137 | ) | |||||||||
Net change in escrow and other restricted investments | 11 | (7 | ) | 8 | (8 | ) | ||||||||||
Other investing, net | 3 | 19 | 3 | 19 | ||||||||||||
Net cash used in investing activities | (98 | ) | (215 | ) | (312 | ) | (368 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Net (payments) proceeds on debt | (455 | ) | 690 | 543 | 703 | |||||||||||
Payment of liability to subsidiary trust issuing preferred securities | — | (670 | ) | — | (670 | ) | ||||||||||
Common stock dividends | (57 | ) | (59 | ) | (114 | ) | (119 | ) | ||||||||
Preferred stock dividends | (6 | ) | (6 | ) | (12 | ) | (12 | ) | ||||||||
Proceeds from issuances of common stock | 3 | 12 | 10 | 31 | ||||||||||||
Excess tax benefits from stock-based compensation | — | 2 | — | 4 | ||||||||||||
Payments to acquire treasury stock, including fees | (307 | ) | — | (357 | ) | — | ||||||||||
Repurchases related to stock-based compensation | (1 | ) | (3 | ) | (1 | ) | (6 | ) | ||||||||
Distributions to noncontrolling interests | (4 | ) | (5 | ) | (61 | ) | (12 | ) | ||||||||
Net cash (used in) provided by financing activities | (827 | ) | (39 | ) | 8 | (81 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (3 | ) | 5 | 3 | 19 | |||||||||||
(Decrease) increase in cash and cash equivalents | (700 | ) | 98 | (88 | ) | (113 | ) | |||||||||
Cash and cash equivalents at beginning of period | 1,514 | 1,000 | 902 | 1,211 | ||||||||||||
Cash and Cash Equivalents at End of Period | $ | 814 | $ | 1,098 | $ | 814 | $ | 1,098 |
• | Business Process Outsourcing ("BPO") |
• | Document Outsourcing (which includes Managed Print Services) ("DO") |
• | Information Technology Outsourcing ("ITO") |
• | “Entry,” which includes A4 devices and desktop printers; to |
• | “Mid-range,” which includes A3 devices that generally serve workgroup environments in midsize to large enterprises and includes products that fall into the following market categories: Color 41+ ppm priced at less than $100K and Light Production 91+ ppm priced at less than $100K; to |
• | “High-end,” which includes production printing and publishing systems that generally serve the graphic communications marketplace and large enterprises. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Segment Revenue | Segment Profit (Loss) | Segment Revenue | Segment Profit (Loss) | ||||||||||||
2012 | |||||||||||||||
Services | $ | 2,806 | $ | 298 | $ | 5,627 | $ | 561 | |||||||
Technology | 2,370 | 268 | 4,708 | 513 | |||||||||||
Other | 365 | (68 | ) | 709 | (120 | ) | |||||||||
Total | $ | 5,541 | $ | 498 | $ | 11,044 | $ | 954 | |||||||
2011 | |||||||||||||||
Services | $ | 2,672 | $ | 322 | $ | 5,256 | $ | 588 | |||||||
Technology | 2,552 | 300 | 5,047 | 566 | |||||||||||
Other | 390 | (73 | ) | 776 | (139 | ) | |||||||||
Total | $ | 5,614 | $ | 549 | $ | 11,079 | $ | 1,015 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Reconciliation to Pre-tax Income | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Segment Profit | $ | 498 | $ | 549 | $ | 954 | $ | 1,015 | ||||||||
Reconciling items: | ||||||||||||||||
Restructuring and asset impairment charges | (29 | ) | 9 | (46 | ) | 24 | ||||||||||
Restructuring charges of Fuji Xerox | (6 | ) | (4 | ) | (10 | ) | (15 | ) | ||||||||
Amortization of intangible assets | (82 | ) | (87 | ) | (164 | ) | (172 | ) | ||||||||
Equity in net income of unconsolidated affiliates | (31 | ) | (34 | ) | (71 | ) | (68 | ) | ||||||||
Loss on early extinguishment of liability | — | (33 | ) | — | (33 | ) | ||||||||||
Other | 1 | 1 | 1 | — | ||||||||||||
Pre-tax Income | $ | 351 | $ | 401 | $ | 664 | $ | 751 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Accounts receivable sales | $ | 1,215 | $ | 819 | $ | 2,090 | $ | 1,549 | |||||||
Deferred proceeds | 256 | 103 | 403 | 197 | |||||||||||
Fees associated with sales | 6 | 5 | 12 | 9 | |||||||||||
Estimated increase to operating cash flows(1) | 169 | 29 | 100 | 5 |
(1) | Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the quarter and (iii) currency. |
United States | Canada | Europe | Other(3) | Total | |||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||
Balance at December 31, 2011 | $ | 75 | $ | 33 | $ | 91 | $ | 2 | $ | 201 | |||||||||
Provision | 2 | 1 | 12 | — | 15 | ||||||||||||||
Charge-offs | (4 | ) | (3 | ) | (12 | ) | — | (19 | ) | ||||||||||
Recoveries and other(1) | 1 | 2 | 2 | 1 | 6 | ||||||||||||||
Balance at March 31, 2012 | 74 | 33 | 93 | 3 | 203 | ||||||||||||||
Provision | 3 | 2 | 11 | 1 | 17 | ||||||||||||||
Charge-offs | (5 | ) | (4 | ) | (15 | ) | — | (24 | ) | ||||||||||
Recoveries and other(1) | 1 | — | (6 | ) | (1 | ) | (6 | ) | |||||||||||
Balance at June 30, 2012 | $ | 73 | $ | 31 | $ | 83 | $ | 3 | $ | 190 | |||||||||
Finance receivables as of June 30, 2012 collectively evaluated for impairment(2) | $ | 2,739 | $ | 791 | $ | 2,423 | $ | 149 | $ | 6,102 | |||||||||
Allowance for Credit Losses: | |||||||||||||||||||
Balance at December 31, 2010 | $ | 91 | $ | 37 | $ | 81 | $ | 3 | $ | 212 | |||||||||
Provision | 7 | 4 | 11 | — | 22 | ||||||||||||||
Charge-offs | (10 | ) | (5 | ) | (8 | ) | — | (23 | ) | ||||||||||
Recoveries and other(1) | (1 | ) | 2 | 3 | — | 4 | |||||||||||||
Balance at March 31, 2011 | 87 | 38 | 87 | 3 | 215 | ||||||||||||||
Provision | 1 | 3 | 14 | — | 18 | ||||||||||||||
Charge-offs | (6 | ) | (5 | ) | (11 | ) | — | (22 | ) | ||||||||||
Recoveries and other(1) | (1 | ) | — | (1 | ) | — | (2 | ) | |||||||||||
Balance at June 30, 2011 | $ | 81 | $ | 36 | $ | 89 | $ | 3 | $ | 209 | |||||||||
Finance receivables as of June 30, 2011 collectively evaluated for impairment(2) | $ | 2,979 | $ | 867 | $ | 2,919 | $ | 88 | $ | 6,853 |
(1) | Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations. |
(2) | Total Finance receivables exclude residual values of $4 and $9, and the allowance for credit losses of $190 and $209 at June 30, 2012 and 2011, respectively. |
(3) | Includes developing market countries and smaller units. |
• | Investment grade: This rating includes accounts with excellent to good business credit, asset quality and the capacity to meet financial obligations. These customers are less susceptible to adverse effects due to shifts in economic conditions or changes in circumstance. The rating generally equates to a Standard & Poors (S&P) rating of BBB- or better. Loss rates in this category are normally minimal at less than 1%. |
• | Non-investment grade: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. This rating generally equates to a BB S&P rating. Although we experience higher loss rates associated with this customer class, we believe the risk is somewhat mitigated by the fact that our leases are fairly well dispersed across a large and diverse customer base. In addition, the higher loss rates are largely offset by the higher rates of return we obtain on such leases. Loss rates in this category are generally in the range of 2% to 4%. |
• | Substandard: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. We use numerous strategies to mitigate risk including higher rates of interest, prepayments, personal guarantees, etc. Accounts in this category include customers who were downgraded during the term of the lease from investment and non-investment grade status when the lease was originated. Accordingly, there is a distinct possibility for a loss of principal and interest or customer default. The loss rates in this category are around 10%. |
June 30, 2012 | |||||||||||||||
Investment Grade | Non-investment Grade | Substandard | Total Finance Receivables | ||||||||||||
Finance and Other Services | $ | 352 | $ | 340 | $ | 123 | $ | 815 | |||||||
Government and Education | 747 | 17 | 2 | 766 | |||||||||||
Graphic Arts | 103 | 159 | 195 | 457 | |||||||||||
Industrial | 152 | 88 | 26 | 266 | |||||||||||
Healthcare | 120 | 41 | 24 | 185 | |||||||||||
Other | 98 | 96 | 56 | 250 | |||||||||||
Total United States | 1,572 | 741 | 426 | 2,739 | |||||||||||
Finance and Other Services | 148 | 109 | 45 | 302 | |||||||||||
Government and Education | 116 | 9 | 4 | 129 | |||||||||||
Graphic Arts | 37 | 37 | 31 | 105 | |||||||||||
Industrial | 59 | 41 | 30 | 130 | |||||||||||
Other | 74 | 40 | 11 | 125 | |||||||||||
Total Canada | 434 | 236 | 121 | 791 | |||||||||||
France | 237 | 324 | 88 | 649 | |||||||||||
U.K./Ireland | 206 | 155 | 54 | 415 | |||||||||||
Central(1) | 287 | 437 | 76 | 800 | |||||||||||
Southern(2) | 165 | 250 | 52 | 467 | |||||||||||
Nordics(3) | 52 | 37 | 3 | 92 | |||||||||||
Total Europe | 947 | 1,203 | 273 | 2,423 | |||||||||||
Other | 108 | 36 | 5 | 149 | |||||||||||
Total | $ | 3,061 | $ | 2,216 | $ | 825 | $ | 6,102 | |||||||
December 31, 2011 | |||||||||||||||
Investment Grade | Non-investment Grade | Substandard | Total Finance Receivables | ||||||||||||
Finance and Other Services | $ | 349 | $ | 380 | $ | 160 | $ | 889 | |||||||
Government and Education | 821 | 20 | 4 | 845 | |||||||||||
Graphic Arts | 126 | 200 | 172 | 498 | |||||||||||
Industrial | 180 | 83 | 32 | 295 | |||||||||||
Healthcare | 130 | 42 | 28 | 200 | |||||||||||
Other | 97 | 93 | 76 | 266 | |||||||||||
Total United States | 1,703 | 818 | 472 | 2,993 | |||||||||||
Finance and Other Services | 153 | 118 | 51 | 322 | |||||||||||
Government and Education | 121 | 9 | 4 | 134 | |||||||||||
Graphic Arts | 36 | 39 | 35 | 110 | |||||||||||
Industrial | 56 | 41 | 34 | 131 |
Other | 74 | 42 | 12 | 128 | |||||||||||
Total Canada | 440 | 249 | 136 | 825 | |||||||||||
France | 246 | 354 | 92 | 692 | |||||||||||
U.K./Ireland | 201 | 162 | 54 | 417 | |||||||||||
Central(1) | 330 | 494 | 57 | 881 | |||||||||||
Southern(2) | 219 | 256 | 63 | 538 | |||||||||||
Nordics(3) | 60 | 39 | 3 | 102 | |||||||||||
Total Europe | 1,056 | 1,305 | 269 | 2,630 | |||||||||||
Other | 75 | 26 | 7 | 108 | |||||||||||
Total | $ | 3,274 | $ | 2,398 | $ | 884 | $ | 6,556 |
(1) | Switzerland, Germany, Austria, Belgium and Holland. |
(2) | Italy, Greece, Spain and Portugal. |
(3) | Sweden, Norway, Denmark and Finland. |
June 30, 2012 | |||||||||||||||||||||||||||
Current | 31-90 Days Past Due | >90 Days Past Due | Total Billed Finance Receivables | Unbilled Finance Receivables | Total Finance Receivables | Finance Receivables >90 Days and Accruing | |||||||||||||||||||||
Finance and Other Services | $ | 1 | $ | 2 | $ | 1 | $ | 4 | $ | 811 | $ | 815 | $ | 23 | |||||||||||||
Government and Education | 15 | 4 | 4 | 23 | 743 | 766 | 43 | ||||||||||||||||||||
Graphic Arts | 2 | 1 | — | 3 | 454 | 457 | 12 | ||||||||||||||||||||
Industrial | 1 | 1 | — | 2 | 264 | 266 | 11 | ||||||||||||||||||||
Healthcare | 1 | 1 | — | 2 | 183 | 185 | 10 | ||||||||||||||||||||
Other | — | 1 | — | 1 | 249 | 250 | 8 | ||||||||||||||||||||
Total United States | 20 | 10 | 5 | 35 | 2,704 | 2,739 | 107 | ||||||||||||||||||||
Canada | 5 | 3 | 1 | 9 | 782 | 791 | 22 | ||||||||||||||||||||
France | 2 | 1 | — | 3 | 646 | 649 | 10 | ||||||||||||||||||||
U.K./Ireland | 2 | 1 | 3 | 6 | 409 | 415 | 3 | ||||||||||||||||||||
Central(1) | 5 | 5 | 3 | 13 | 787 | 800 | 29 | ||||||||||||||||||||
Southern(2) | 28 | 5 | 8 | 41 | 426 | 467 | 79 | ||||||||||||||||||||
Nordics(3) | 1 | — | — | 1 | 91 | 92 | — | ||||||||||||||||||||
Total Europe | 38 | 12 | 14 | 64 | 2,359 | 2,423 | 121 | ||||||||||||||||||||
Other | 3 | — | — | 3 | 146 | 149 | — | ||||||||||||||||||||
Total | $ | 66 | $ | 25 | $ | 20 | $ | 111 | $ | 5,991 | $ | 6,102 | $ | 250 | |||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||
Current | 31-90 Days Past Due | >90 Days Past Due | Total Billed Finance Receivables | Unbilled Finance Receivables | Total Finance Receivables | Finance Receivables >90 Days and Accruing | |||||||||||||||||||||
Finance and Other Services | $ | 18 | $ | 4 | $ | 1 | $ | 23 | $ | 866 | $ | 889 | $ | 15 | |||||||||||||
Government and Education | 21 | 5 | 2 | 28 | 817 | 845 | 29 | ||||||||||||||||||||
Graphic Arts | 16 | 2 | 1 | 19 | 479 | 498 | 7 | ||||||||||||||||||||
Industrial | 7 | 2 | 1 | 10 | 285 | 295 | 6 | ||||||||||||||||||||
Healthcare | 5 | 2 | — | 7 | 193 | 200 | 5 | ||||||||||||||||||||
Other | 8 | 1 | — | 9 | 257 | 266 | 4 | ||||||||||||||||||||
Total United States | 75 | 16 | 5 | 96 | 2,897 | 2,993 | 66 | ||||||||||||||||||||
Canada | 3 | 2 | 1 | 6 | 819 | 825 | 27 | ||||||||||||||||||||
France | 1 | 1 | 1 | 3 | 689 | 692 | 16 | ||||||||||||||||||||
U.K./Ireland | 3 | 2 | 3 | 8 | 409 | 417 | 4 | ||||||||||||||||||||
Central(1) | 7 | 2 | 3 | 12 | 869 | 881 | 46 | ||||||||||||||||||||
Southern(2) | 31 | 4 | 13 | 48 | 490 | 538 | 82 | ||||||||||||||||||||
Nordics(3) | 1 | — | — | 1 | 101 | 102 | — | ||||||||||||||||||||
Total Europe | 43 | 9 | 20 | 72 | 2,558 | 2,630 | 148 | ||||||||||||||||||||
Other | 2 | 1 | — | 3 | 105 | 108 | — | ||||||||||||||||||||
Total | $ | 123 | $ | 28 | $ | 26 | $ | 177 | $ | 6,379 | $ | 6,556 | $ | 241 |
(1) | Switzerland, Germany, Austria, Belgium and Holland. |
(2) | Italy, Greece, Spain and Portugal. |
(3) | Sweden, Norway, Denmark and Finland. |
June 30, 2012 | December 31, 2011 | ||||||
Finished goods | $ | 902 | $ | 866 | |||
Work-in-process | 70 | 58 | |||||
Raw materials | 101 | 97 | |||||
Total Inventories | $ | 1,073 | $ | 1,021 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Fuji Xerox | $ | 28 | $ | 31 | $ | 65 | $ | 62 | |||||||
Other investments | 3 | 3 | 6 | 6 | |||||||||||
Total Equity in Net Income of Unconsolidated Affiliates | $ | 31 | $ | 34 | $ | 71 | $ | 68 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Summary of Operations: | |||||||||||||||
Revenues | $ | 3,064 | $ | 2,852 | $ | 6,394 | $ | 5,944 | |||||||
Costs and expenses | 2,856 | 2,645 | 5,940 | 5,542 | |||||||||||
Income before income taxes | 208 | 207 | 454 | 402 | |||||||||||
Income tax expense | 81 | 64 | 178 | 124 | |||||||||||
Net Income | 127 | 143 | 276 | 278 | |||||||||||
Less: Net income – noncontrolling interests | 1 | 1 | 2 | 2 | |||||||||||
Net Income – Fuji Xerox | $ | 126 | $ | 142 | $ | 274 | $ | 276 | |||||||
Weighted Average Rate(1) | 80.09 | 81.59 | 79.90 | 81.87 |
(1) | Represents Yen/U.S. Dollar exchange rate used to translate. |
Severance and Related Costs | Lease Cancellation and Other Costs | Asset Impairments(2) | Total | ||||||||||||
Balance December 31, 2011 | $ | 116 | $ | 7 | $ | — | $ | 123 | |||||||
Restructuring provision | 47 | 5 | 2 | 54 | |||||||||||
Reversals of prior accruals | (8 | ) | — | — | (8 | ) | |||||||||
Net current period charges(1) | 39 | 5 | 2 | 46 | |||||||||||
Charges against reserve and currency | (81 | ) | (2 | ) | (2 | ) | (85 | ) | |||||||
Balance June 30, 2012 | $ | 74 | $ | 10 | $ | — | $ | 84 |
(1) | Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown. |
(2) | Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Charges against reserve | $ | (46 | ) | $ | (67 | ) | $ | (85 | ) | $ | (120 | ) | |||
Asset impairment | — | — | 2 | — | |||||||||||
Effects of foreign currency and other non-cash items | 2 | 4 | — | — | |||||||||||
Cash Payments for Restructurings | $ | (44 | ) | $ | (63 | ) | $ | (83 | ) | $ | (120 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Services | $ | 16 | $ | 1 | $ | 19 | $ | — | |||||||
Technology | 12 | (7 | ) | $ | 29 | $ | (19 | ) | |||||||
Other | 1 | (3 | ) | (2 | ) | (5 | ) | ||||||||
Total Net Restructuring Charges | $ | 29 | $ | (9 | ) | $ | 46 | $ | (24 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest expense(1) | $ | 109 | $ | 124 | $ | 218 | $ | 251 | |||||||
Interest income(2) | 147 | 168 | 298 | 337 |
(1) | Includes Equipment financing interest, as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income. |
(2) | Includes Finance income, as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income. |
Six Months Ended June 30, | ||||||||
2012 | 2011 | |||||||
Net proceeds (payments) on short-term debt | $ | 550 | $ | (297 | ) | |||
Net proceeds from issuance of long-term debt | 1,105 | 1,018 | ||||||
Net payments on long-term debt | (1,112 | ) | (18 | ) | ||||
Net Proceeds on Debt | $ | 543 | $ | 703 |
• | Foreign currency-denominated assets and liabilities |
• | Forecasted purchases and sales in foreign currency |
Currency Hedged (Buy/Sell) | Gross Notional Value | Fair Value Asset (Liability)(1) | |||||
Euro/U.K. Pound Sterling | $ | 589 | $ | (3 | ) | ||
U.S. Dollar/Euro | 471 | 15 | |||||
Japanese Yen/U.S. Dollar | 452 | (1 | ) | ||||
Japanese Yen/Euro | 418 | 17 | |||||
U.K. Pound Sterling/Euro | 193 | 4 | |||||
Canadian Dollar/Euro | 167 | — | |||||
Mexican Peso/U.S. Dollar | 69 | — | |||||
Indian Rupee/U.S. Dollar | 61 | (5 | ) | ||||
Euro/U.S. Dollar | 58 | (1 | ) | ||||
Euro/Swiss Franc | 56 | — | |||||
Philippine Peso/U.S. Dollar | 40 | — | |||||
U.S. Dollar/Canadian Dollar | 25 | — | |||||
Euro/Peruvian Nuevo Sol | 23 | — | |||||
Euro/Japanese Yen | 22 | — | |||||
All Other | 179 | (2 | ) | ||||
Total Foreign Exchange Hedging | $ | 2,823 | $ | 24 |
(1) | Represents the net receivable (payable) amount included in the Condensed Consolidated Balance Sheet at June 30, 2012. |
Designation of Derivatives | Balance Sheet Location | June 30, 2012 | December 31, 2011 | |||||||
Derivatives Designated as Hedging Instruments | ||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 28 | $ | 37 | |||||
Other current liabilities | (12 | ) | (11 | ) | ||||||
Net Designated Asset | $ | 16 | $ | 26 | ||||||
Derivatives NOT Designated as Hedging Instruments | ||||||||||
Foreign exchange contracts – forwards | Other current assets | $ | 15 | $ | 21 | |||||
Other current liabilities | (7 | ) | (20 | ) | ||||||
Net Undesignated Asset | $ | 8 | $ | 1 | ||||||
Summary of Derivatives | Total Derivative Assets | $ | 43 | $ | 58 | |||||
Total Derivative Liabilities | (19 | ) | (31 | ) | ||||||
Net Derivative Asset | $ | 24 | $ | 27 |
Derivatives in Fair Value Relationships | Location of Gain (Loss) Recognized in Income | Derivative Gain (Loss) Recognized in Income Three Months Ended June 30, | Hedged Item Gain (Loss) Recognized in Income Three Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Interest rate contracts | Interest expense | $ | — | $ | 17 | $ | — | $ | (17 | ) | ||||||||
Derivatives in Fair Value Relationships | Location of Gain (Loss) Recognized in Income | Derivative Gain (Loss) Recognized in Income Six Months Ended June 30, | Hedged Item Gain (Loss) Recognized in Income Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Interest rate contracts | Interest expense | $ | — | $ | 16 | $ | — | $ | (16 | ) |
Derivatives in Cash Flow Hedging Relationships | Derivative Gain (Loss) Recognized in OCI (Effective Portion) Three Months Ended June 30, | Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Gain (Loss) Reclassified from AOCI to Income (Effective Portion) Three Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Foreign exchange contracts – forwards | $ | 52 | $ | 3 | Cost of sales | $ | 5 | $ | (7 | ) | ||||||||
Derivatives in Cash Flow Hedging Relationships | Derivative Gain (Loss) Recognized in OCI (Effective Portion) Six Months Ended June 30, | Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Gain (Loss) Reclassified from AOCI to Income (Effective Portion) Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Foreign exchange contracts – forwards | $ | 8 | (24 | ) | Cost of sales | $ | 21 | (4 | ) |
Derivatives NOT Designated as Hedging Instruments | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Location of Derivative Gain (Loss) | 2012 | 2011 | 2012 | 2011 | ||||||||||||||
Foreign exchange contracts – forwards | Other expense – Currency gains (losses), net | $ | 23 | $ | 15 | $ | 5 | $ | (16 | ) |
June 30, 2012 | December 31, 2011 | ||||||
Assets: | |||||||
Foreign exchange contracts-forwards | $ | 43 | $ | 58 | |||
Deferred compensation investments in cash surrender life insurance | 72 | 69 | |||||
Deferred compensation investments in mutual funds | 23 | 23 | |||||
Total | $ | 138 | $ | 150 | |||
Liabilities: | |||||||
Foreign exchange contracts-forwards | $ | 19 | $ | 31 | |||
Deferred compensation plan liabilities | 102 | 97 | |||||
Total | $ | 121 | $ | 128 |
June 30, 2012 | December 31, 2011 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Cash and cash equivalents | $ | 814 | $ | 814 | $ | 902 | $ | 902 | |||||||
Accounts receivable, net | 2,776 | 2,776 | 2,600 | 2,600 | |||||||||||
Short-term debt | 1,099 | 1,111 | 1,545 | 1,622 | |||||||||||
Long-term debt | 8,061 | 8,691 | 7,088 | 7,496 |
Pension Benefits | Retiree Health | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||
Components of Net Periodic Benefit Costs: | |||||||||||||||||||||||||||||||
Service cost | $ | 46 | $ | 46 | $ | 97 | $ | 94 | $ | 2 | $ | 2 | $ | 4 | $ | 4 | |||||||||||||||
Interest cost | 113 | 121 | 228 | 239 | 11 | 12 | 22 | 24 | |||||||||||||||||||||||
Expected return on plan assets | (128 | ) | (130 | ) | (257 | ) | (257 | ) | — | — | — | — | |||||||||||||||||||
Recognized net actuarial loss | 26 | 19 | 53 | 36 | 1 | — | 1 | — | |||||||||||||||||||||||
Amortization of prior service credit | (5 | ) | (6 | ) | (11 | ) | (12 | ) | (11 | ) | (10 | ) | (21 | ) | (20 | ) | |||||||||||||||
Recognized settlement loss | 14 | 20 | 30 | 50 | — | — | — | — | |||||||||||||||||||||||
Defined benefit plans | 66 | 70 | 140 | 150 | 3 | 4 | 6 | 8 | |||||||||||||||||||||||
Defined contribution plans | 15 | 16 | 31 | 32 | — | — | — | — | |||||||||||||||||||||||
Net periodic benefit cost | 81 | 86 | 171 | 182 | 3 | 4 | 6 | 8 | |||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income: | |||||||||||||||||||||||||||||||
Net actuarial gain | (18 | ) | (9 | ) | (19 | ) | (9 | ) | — | — | — | — | |||||||||||||||||||
Amortization of net prior service credit | 5 | 6 | 11 | 12 | 11 | 10 | 21 | 20 | |||||||||||||||||||||||
Amortization of net actuarial losses | (40 | ) | (39 | ) | (83 | ) | (86 | ) | (1 | ) | — | (1 | ) | — | |||||||||||||||||
Total recognized in Other Comprehensive Income(1) | (53 | ) | (42 | ) | (91 | ) | (83 | ) | 10 | 10 | 20 | 20 | |||||||||||||||||||
Total recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ | 28 | $ | 44 | $ | 80 | $ | 99 | $ | 13 | $ | 14 | $ | 26 | $ | 28 |
(1) | Amounts represent the pre-tax effect included within Other comprehensive income. Refer to Note 14 - Comprehensive Income for related tax effects and the after-tax amounts. |
Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | AOCL(1) | Xerox Shareholders’ Equity | Non- controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 1,353 | $ | 6,317 | $ | (124 | ) | $ | 7,046 | $ | (2,716 | ) | $ | 11,876 | $ | 149 | $ | 12,025 | |||||||||||||
Comprehensive income (loss), net | — | — | — | 578 | (162 | ) | 416 | 14 | 430 | ||||||||||||||||||||||
Cash dividends declared-common stock(2) | — | — | — | (116 | ) | — | (116 | ) | — | (116 | ) | ||||||||||||||||||||
Cash dividends declared-preferred stock(3) | — | — | — | (12 | ) | — | (12 | ) | — | (12 | ) | ||||||||||||||||||||
Contribution of common stock to U.S. pension plan(4) | 15 | 115 | — | — | — | 130 | — | 130 | |||||||||||||||||||||||
Stock option and incentive plans | 2 | 72 | — | — | — | 74 | — | 74 | |||||||||||||||||||||||
Tax loss on stock option and incentive plans, net | — | (1 | ) | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Payments to acquire treasury stock, including fees | — | — | (357 | ) | — | — | (357 | ) | — | (357 | ) | ||||||||||||||||||||
Cancellation of treasury stock | (22 | ) | (156 | ) | 178 | — | — | — | — | — | |||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (27 | ) | (27 | ) | |||||||||||||||||||||
Balance at June 30, 2012 | $ | 1,348 | $ | 6,347 | $ | (303 | ) | $ | 7,496 | $ | (2,878 | ) | $ | 12,010 | $ | 136 | $ | 12,146 |
Common Stock | Additional Paid-in Capital | Retained Earnings | AOCL(1) | Xerox Shareholders’ Equity | Non- controlling Interests | Total Equity | |||||||||||||||||||||
Balance at December 31, 2010 | $ | 1,398 | $ | 6,580 | $ | 6,016 | $ | (1,988 | ) | $ | 12,006 | $ | 153 | $ | 12,159 | ||||||||||||
Comprehensive income, net | — | — | 600 | 413 | 1,013 | 16 | 1,029 | ||||||||||||||||||||
Cash dividends declared-common stock(2) | — | — | (122 | ) | — | (122 | ) | — | (122 | ) | |||||||||||||||||
Cash dividends declared-preferred stock(3) | — | — | (12 | ) | — | (12 | ) | — | (12 | ) | |||||||||||||||||
Stock option and incentive plans | 5 | 88 | — | — | 93 | — | 93 | ||||||||||||||||||||
Tax benefit on stock option and incentive plans, net | — | 2 | — | — | 2 | — | 2 | ||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (10 | ) | (10 | ) | ||||||||||||||||||
Other | — | — | — | — | — | 2 | 2 | ||||||||||||||||||||
Balance at June 30, 2011 | $ | 1,403 | $ | 6,670 | $ | 6,482 | $ | (1,575 | ) | $ | 12,980 | $ | 161 | $ | 13,141 |
(1) | Refer to Note 14- Comprehensive Income for components of AOCL. |
(2) | Cash dividends declared on common stock of $0.0425 per share in each quarter of 2012 and 2011. |
(3) | Cash dividends declared on preferred stock of $20.00 per share in each quarter of 2012 and 2011. |
(4) | Refer to Note 12 - Employee Benefit Plans for additional information. |
Shares | Amount | ||||||
December 31, 2011 | 15,508 | $ | 124 | ||||
Purchases (1) | 47,429 | 357 | |||||
Cancellations | (22,098 | ) | (178 | ) | |||
June 30, 2012 | 40,839 | $ | 303 |
(1) | Includes associated fees. |
Three Months Ended June 30, 2012 | Three Months Ended June 30, 2011 | |||||||||||||||
Pre-tax | Net of Tax | Pre-tax | Net of Tax | |||||||||||||
Translation Adjustments (Losses) Gains | $ | (320 | ) | $ | (323 | ) | $ | 155 | $ | 153 | ||||||
Unrealized Gains (Losses): | ||||||||||||||||
Changes in fair value of cash flow hedges | 52 | 38 | 3 | 1 | ||||||||||||
Changes in cash flow hedges reclassed to earnings(1) | (5 | ) | (4 | ) | 7 | 5 | ||||||||||
Net Unrealized Gains | $ | 47 | $ | 34 | $ | 10 | $ | 6 | ||||||||
Defined Benefit Plans Gains (Losses): | ||||||||||||||||
Actuarial/Prior service gains | $ | 18 | $ | 11 | $ | 9 | $ | 6 | ||||||||
Actuarial/Prior service amortization(2) | 25 | 16 | 23 | 15 | ||||||||||||
Fuji Xerox changes in defined benefit plans, net(3) | (11 | ) | (11 | ) | (3 | ) | (3 | ) | ||||||||
Other(4) | 47 | 48 | (4 | ) | (4 | ) | ||||||||||
Change in Defined Benefit Plans Gains | $ | 79 | $ | 64 | $ | 25 | $ | 14 | ||||||||
Other Comprehensive (Loss) Income, net | $ | (194 | ) | $ | (225 | ) | $ | 190 | $ | 173 | ||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (1 | ) | (1 | ) | — | — | ||||||||||
Other Comprehensive (Loss) Income Attributable to Xerox | $ | (193 | ) | $ | (224 | ) | $ | 190 | $ | 173 |
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | |||||||||||||||
Pre-tax | Net of Tax | Pre-tax | Net of Tax | |||||||||||||
Translation Adjustments (Losses) Gains | $ | (167 | ) | $ | (163 | ) | $ | 449 | $ | 450 | ||||||
Unrealized Gains (Losses): | ||||||||||||||||
Changes in fair value of cash flow hedges | 8 | 7 | (24 | ) | (18 | ) | ||||||||||
Changes in cash flow hedges reclassed to earnings(1) | (21 | ) | (16 | ) | 4 | 3 | ||||||||||
Net Unrealized Losses | $ | (13 | ) | $ | (9 | ) | $ | (20 | ) | $ | (15 | ) | ||||
Defined Benefit Plans Gains (Losses): | ||||||||||||||||
Actuarial/Prior service gains | $ | 19 | $ | 12 | $ | 9 | $ | 6 | ||||||||
Actuarial/Prior service amortization(2) | 52 | 35 | 54 | 35 | ||||||||||||
Fuji Xerox changes in defined benefit plans, net(3) | (41 | ) | (41 | ) | (21 | ) | (21 | ) | ||||||||
Other(4) | 4 | 4 | (43 | ) | (42 | ) | ||||||||||
Change in Defined Benefit Plans Gains (Losses) | $ | 34 | $ | 10 | $ | (1 | ) | $ | (22 | ) | ||||||
Other Comprehensive (Loss) Income Attributable to Xerox | $ | (146 | ) | $ | (162 | ) | $ | 428 | $ | 413 |
June 30, 2012 | December 31, 2011 | |||||||
Cumulative translation adjustments | $ | (1,102 | ) | $ | (939 | ) | ||
Benefit plans net actuarial losses and prior service credits(1) | (1,793 | ) | (1,803 | ) | ||||
Other unrealized gains, net | 17 | 26 | ||||||
Total Accumulated Other Comprehensive Loss Attributable to Xerox | $ | (2,878 | ) | $ | (2,716 | ) |
(1) | Includes our share of Fuji Xerox. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Basic Earnings per Share: | |||||||||||||||
Net income attributable to Xerox | $ | 309 | $ | 319 | $ | 578 | $ | 600 | |||||||
Accrued dividends on preferred stock | (6 | ) | (6 | ) | (12 | ) | (12 | ) | |||||||
Adjusted Net Income Available to Common Shareholders | $ | 303 | $ | 313 | $ | 566 | $ | 588 | |||||||
Weighted-average common shares outstanding | 1,333,942 | 1,402,206 | 1,333,927 | 1,401,065 | |||||||||||
Basic Earnings per Share | $ | 0.23 | $ | 0.22 | $ | 0.42 | $ | 0.42 | |||||||
Diluted Earnings per Share: | |||||||||||||||
Net income attributable to Xerox | $ | 309 | $ | 319 | $ | 578 | $ | 600 | |||||||
Accrued dividends on preferred stock | (6 | ) | (6 | ) | (12 | ) | (12 | ) | |||||||
Interest on Convertible Securities, net | — | — | 1 | 1 | |||||||||||
Adjusted Net Income Available to Common Shareholders | $ | 303 | $ | 313 | $ | 567 | $ | 589 | |||||||
Weighted-average common shares outstanding | 1,333,942 | 1,402,206 | 1,333,927 | 1,401,065 | |||||||||||
Common shares issuable with respect to: | |||||||||||||||
Stock options | 5,759 | 11,698 | 6,366 | 12,485 | |||||||||||
Restricted stock and performance shares | 24,506 | 22,000 | 23,028 | 20,903 | |||||||||||
Convertible securities | 1,992 | 1,992 | 1,992 | 1,992 | |||||||||||
Adjusted Weighted Average Common Shares Outstanding | 1,366,199 | 1,437,896 | 1,365,313 | 1,436,445 | |||||||||||
Diluted Earnings per Share | $ | 0.22 | $ | 0.22 | $ | 0.41 | $ | 0.41 | |||||||
The following securities were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive: | |||||||||||||||
Stock options | 41,732 | 53,745 | 41,125 | 52,958 | |||||||||||
Restricted stock and performance shares | 17,316 | 15,892 | 18,794 | 16,989 | |||||||||||
Convertible preferred stock | 26,966 | 26,966 | 26,966 | 26,966 | |||||||||||
86,014 | 96,603 | 86,885 | 96,913 | ||||||||||||
Dividends per common share | $ | 0.0425 | $ | 0.0425 | $ | 0.0850 | $ | 0.0850 |
• | $446 for letters of credit issued to i) guarantee our performance under certain services contracts; ii) support certain insurance programs; and iii) support our obligations related to the Brazil tax and labor contingencies. |
• | $769 for outstanding surety bonds. Certain contracts, primarily those involving public sector customers, require us to provide a surety bond as a guarantee of our performance of contractual obligations. |
Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(in millions) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | % of Total Revenue 2012 | % of Total Revenue 2011 | |||||||||||||||||||
Equipment sales | $ | 846 | $ | 925 | (9 | )% | $ | 1,657 | $ | 1,751 | (5 | )% | 15 | % | 16 | % | |||||||||||
Annuity revenue | 4,695 | 4,689 | — | % | 9,387 | 9,328 | 1 | % | 85 | % | 84 | % | |||||||||||||||
Total Revenue | $ | 5,541 | $ | 5,614 | (1 | )% | $ | 11,044 | $ | 11,079 | — | % | 100 | % | 100 | % | |||||||||||
Reconciliation to Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||
Sales | $ | 1,635 | $ | 1,720 | $ | 3,223 | $ | 3,391 | |||||||||||||||||||
Less: Supplies and other sales | (571 | ) | (558 | ) | (1,136 | ) | (1,165 | ) | |||||||||||||||||||
Less: Paper sales | (218 | ) | (237 | ) | (430 | ) | (475 | ) | |||||||||||||||||||
Equipment Sales | $ | 846 | $ | 925 | $ | 1,657 | $ | 1,751 | |||||||||||||||||||
Outsourcing, service and rentals | $ | 3,763 | $ | 3,731 | $ | 7,530 | $ | 7,363 | |||||||||||||||||||
Add: Finance income | 143 | 163 | 291 | 325 | |||||||||||||||||||||||
Add: Supplies and other sales | 571 | 558 | 1,136 | 1,165 | |||||||||||||||||||||||
Add: Paper sales | 218 | 237 | 430 | 475 | |||||||||||||||||||||||
Annuity Revenue | $ | 4,695 | $ | 4,689 | $ | 9,387 | $ | 9,328 |
• | Annuity revenue, which was flat as compared to the second quarter 2011, including a 2-percentage point negative impact from currency. Annuity revenue is comprised of the following: |
▪ | Outsourcing, service and rentals revenue of $3,763 million, which includes outsourcing revenue within our Services segment and technical service revenue (including bundled supplies) and rental revenue, both primarily within our Technology segment. An increase of 1%, including a 2-percentage point negative impact from currency, was driven by an increase in outsourcing revenue in our business process outsourcing, document outsourcing and IT outsourcing offerings. |
▪ | Supplies and other sales revenue of $571 million, which includes unbundled supplies and other sales, primarily within our Technology segment increased 2%, including a 2-percentage point negative impact from currency. The increase reflects a 4% increase (including a 1-percentage point negative impact from currency) in supplies sales driven by the timing of supplies purchases by our channel partners. |
▪ | Paper sales revenue, primarily within our Other segment, of $218 million decreased 8%, including a 4-percentage point negative impact from currency driven by market pricing and lower activity. |
• | Equipment sales revenue, which is reported primarily within our Technology segment and the document outsourcing business within our Services segment, declined 9% as compared to the second quarter 2011, including a 3-percentage point negative impact from currency, driven by weakness in Europe and the impact of lower product mix. Product installs increased from the second quarter 2011 in all three of our product groups. Consistent with prior quarters, price declines were in the range of 5% to 10%. |
• | Color Revenue1, declined 4% as compared to second quarter 2011, including a 4-percentage point negative impact from currency. An increase in color pages of 10% was offset by a decline in color equipment sale revenue driven primarily by weakness in Europe and the impact of lower product mix. |
• | Annuity revenue increased 1% compared to the prior year period, including a 1-percentage point negative impact from currency. Annuity revenue is comprised of the following: |
▪ | Outsourcing, service and rentals revenue of $7,530 million, increased 2%, including a 2-percentage point negative impact from currency, primarily driven by an increase in outsourcing revenue in our Services segment. |
▪ | Supplies and other sales revenue of $1,136 million, decreased 2%, including a 2-percentage point negative impact from currency. This decrease was primarily driven by overall lower supplies purchases by our channel partners in the first six months of the year. |
▪ | Paper sales revenue of $430 million, decreased 9%, including a 2-percentage point negative impact from |
• | Equipment sales revenue decreased 5% compared to the prior year period, including a 2-percentage point negative impact from currency, driven by weakness in Europe and the impact of lower product mix. Product installs increased from the prior year period in all three of our product groups and was more than offset by the impact of price declines, which, consistent with prior quarters, were in the range of 5% to 10%. |
• | Color Revenue1 - declined 4% compared to the prior year period, including a 3-percentage point negative impact from currency. A year-to-date increase in color pages of 10% was offset by a decline in color equipment sale revenue driven primarily by weakness in Europe and the impact of lower product mix. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||
Total Gross Margin | 32.0 | % | 33.4 | % | (1.4 | ) | pts | 31.5 | % | 33.2 | % | (1.7 | ) | pts | |||||
RD&E as a % of Revenue | 2.9 | % | 3.1 | % | (0.2 | ) | pts | 3.0 | % | 3.2 | % | (0.2 | ) | pts | |||||
SAG as a % of Revenue | 19.4 | % | 19.9 | % | (0.5 | ) | pts | 19.4 | % | 20.2 | % | (0.8 | ) | pts | |||||
Operating Margin(2) | 9.7 | % | 10.4 | % | (0.7 | ) | pts | 9.1 | % | 9.8 | % | (0.7 | ) | pts | |||||
Pre-tax Income Margin | 6.3 | % | 7.1 | % | (0.8 | ) | pts | 6.0 | % | 6.8 | % | (0.8 | ) | pts |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||||||||
R&D | $ | 133 | $ | 147 | $ | (14 | ) | $ | 278 | $ | 303 | $ | (25 | ) | |||||||||
Sustaining engineering | 28 | 28 | — | 56 | 56 | — | |||||||||||||||||
Total RD&E Expenses | $ | 161 | $ | 175 | $ | (14 | ) | $ | 334 | $ | 359 | $ | (25 | ) |
• | $56 million decrease in selling expenses, driven primarily by benefits from restructuring and productivity improvements partially offset by the impact of acquisitions and spending associated with the drupa print trade show in Düsseldorf, Germany. |
• | $11 million increase in general and administrative expenses as restructuring savings and productivity improvements were more than offset by the impact of acquisitions and compensation-related expenses. |
• | $2 million increase in bad debt expenses to $31 million. |
• | $111 million decrease in selling expenses, driven primarily by benefits from restructuring and productivity improvements. |
• | $23 million increase in general and administrative expenses as restructuring savings and productivity improvements were more than offset by the impact of acquisitions and compensation-related expenses. |
• | $6 million decrease in bad debt expenses to $55 million. Bad debt expense remained at less than one percent of receivables. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Non-financing interest expense | $ | 58 | $ | 64 | $ | 114 | $ | 131 | |||||||
Interest income | (4 | ) | (5 | ) | (7 | ) | (12 | ) | |||||||
Gains on sales of businesses and assets | (2 | ) | (7 | ) | (3 | ) | (8 | ) | |||||||
Currency losses, net | — | — | — | 1 | |||||||||||
Litigation matters | — | 6 | (1 | ) | 12 | ||||||||||
Fees - Sales of receivables | 6 | 5 | 12 | 9 | |||||||||||
Loss on early extinguishment of liability | — | 33 | — | 33 | |||||||||||
All other expenses, net | 16 | 8 | 14 | 16 | |||||||||||
Total Other Expenses, Net | $ | 74 | $ | 104 | $ | 129 | $ | 182 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Total equity in net income of unconsolidated affiliates | $ | 31 | $ | 34 | $ | 71 | $ | 68 | |||||||
Fuji Xerox after-tax restructuring costs | 6 | 4 | 10 | 15 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||
(in millions) | Total Revenue | % of Total Revenue | Segment Profit (Loss) | Segment Margin | Total Revenue | % of Total Revenue | Segment Profit (Loss) | Segment Margin | |||||||||||||||||||
2012 | |||||||||||||||||||||||||||
Services | $ | 2,806 | 51 | % | $ | 298 | 10.6 | % | $ | 5,627 | 51 | % | $ | 561 | 10.0 | % | |||||||||||
Technology | 2,370 | 43 | % | 268 | 11.3 | % | 4,708 | 43 | % | $ | 513 | 10.9 | % | ||||||||||||||
Other | 365 | 6 | % | (68 | ) | (18.6 | )% | 709 | 6 | % | (120 | ) | (16.9 | )% | |||||||||||||
Total | $ | 5,541 | 100 | % | $ | 498 | 9.0 | % | $ | 11,044 | 100 | % | $ | 954 | 8.6 | % | |||||||||||
2011 | |||||||||||||||||||||||||||
Services | $ | 2,672 | 48 | % | $ | 322 | 12.1 | % | $ | 5,256 | 47 | % | $ | 588 | 11.2 | % | |||||||||||
Technology | 2,552 | 45 | % | 300 | 11.8 | % | 5,047 | 46 | % | 566 | 11.2 | % | |||||||||||||||
Other | 390 | 7 | % | (73 | ) | (18.7 | )% | 776 | 7 | % | (139 | ) | (17.9 | )% | |||||||||||||
Total | $ | 5,614 | 100 | % | $ | 549 | 9.8 | % | $ | 11,079 | 100 | % | $ | 1,015 | 9.2 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(in millions) | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||
Business Processing Outsourcing | $ | 1,606 | $ | 1,504 | 7 | % | $ | 3,243 | $ | 2,947 | 10 | % | ||||||||||
Document Outsourcing | 900 | 876 | 3 | % | 1,787 | 1,706 | 5 | % | ||||||||||||||
Information Technology Outsourcing | 344 | 316 | 9 | % | 676 | 647 | 4 | % | ||||||||||||||
Less: Intra-segment Elimination | (44 | ) | (24 | ) | * | (79 | ) | (44 | ) | * | ||||||||||||
Total Services Revenue | $ | 2,806 | $ | 2,672 | 5 | % | $ | 5,627 | $ | 5,256 | 7 | % |
• | BPO revenue increased 7%, including a 1-percentage point negative impact from currency, and represented 56% of total Services revenue. BPO growth was driven by the government healthcare, financial services and retail, travel and insurance businesses and was partially offset by lower transaction volumes from existing contracts. |
• | DO revenue increased 3%, including a 3-percentage point negative impact from currency, and represented 32% of total Services revenue. Growth was driven primarily by our new partner print services offerings as well as new signings. Xerox is the market leader in this growing segment of the Document Technology market. |
• | ITO revenue increased 9% and represented 12% of total Services revenue. ITO growth was driven by strong signings growth in recent quarters and also includes 3-percentage points of growth related to revenue from intercompany services, which is eliminated in total Services segment revenue. |
• | BPO revenue increased 10% and represented 57% of total Services revenue. BPO growth was driven by the government healthcare, healthcare payer, financial services, and retail, travel and insurance businesses. |
• | DO revenue increased 5%, including a 2%-percentage point negative impact from currency, and represented 32% of total Services revenue. Continued growth was driven primarily by our new partner print services offerings as well as new signings. Xerox is the market leader in this growing segment of the Document Technology market. |
• | ITO revenue increased 4% and represented 11% of total Services revenue. This reflects an improving trend from 2011 due primarily to ramping of newer contracts and also includes 2-percentage points of growth related to revenue from intercompany services, which is eliminated in total Services segment revenue. |
(in billions) | Three Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | ||||||
BPO | $ | 1.4 | $ | 2.7 | ||||
DO | 0.9 | 1.4 | ||||||
ITO | 0.3 | 0.7 | ||||||
Total Signings | $ | 2.6 | $ | 4.8 |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||
(in millions) | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
Equipment sales | $ | 709 | $ | 790 | (10 | )% | $ | 1,388 | $ | 1,513 | (8 | )% | ||||||||||
Annuity revenue | 1,661 | 1,762 | (6 | )% | 3,320 | 3,534 | (6 | )% | ||||||||||||||
Total Revenue | $ | 2,370 | $ | 2,552 | (7 | )% | $ | 4,708 | $ | 5,047 | (7 | )% |
• | Equipment sales revenue decreased 10%, including a 3-percentage point negative impact from currency. A weak macro-economic environment combined with a lower product mix and price declines in the range of 5% to 10% more than offset install growth in all three product groups. In addition, growth was negatively impacted by the continued migration of customers to our rapidly growing partner print services offering within document outsourcing. |
• | Annuity revenue decreased 6%, including a 3-percentage point negative impact from currency. An increase in supplies revenue was more than offset by a moderating decline in total pages and the continued migration of customers to our partner print services offering. |
• | Technology revenue mix was 22% entry, 58% mid-range and 20% high-end. |
• | Equipment sales revenue decreased 8%, including a 2%-percentage point negative impact from currency. This decline is driven in part by the weak macro-economic environment and the continued migration of customers to our rapidly growing partner print services offering within document outsourcing. In addition, the impact of lower product mix and price declines more than offset growth in installs. Consistent with prior quarters, price declines were in the range of 5% to 10%. |
• | Annuity revenue decreased 6%, including a 2%-percentage point negative impact from currency. A decrease in supplies revenue was primarily driven by a moderating decline in pages, partially offset by a continued increase in revenue per page. |
• | Technology revenue mix was 22% entry, 58% mid-range and 20% high-end. |
• | 9% increase in black-and-white multifunction devices driven by demand for the recently launched WorkCentre® 3045. |
• | 34% increase in color multifunction devices driven by demand for the recently introduced WorkCentre® 6015 and ColorQube 8900. |
• | 4% increase in color printers driven by an increase in sales to OEM partners. |
• | 16% increase in black-and-white multifunction devices driven by demand for the recently launched WorkCentre® 3045. |
• | 40% increase in color multifunction devices driven by demand for the recently introduced WorkCentre® 6015. |
• | 1% decrease in color printers driven by an increase in sales to OEM partners. |
• | 15% increase in installs of mid-range color devices across all geographies driven by strong demand for products such as the WorkCentre® 7530/7535. |
• | 2% decrease in installs of mid-range black-and-white devices. |
• | 15% increase in installs of mid-range color devices driven by demand for products such as the WorkCentre® 7535/7125//7530 and the WorkCentre® 7556, which enabled continued market share gains in the fastest growing and most profitable segment of the office color market. |
• | 6% decrease in installs of mid-range black-and-white devices. |
• | 80% increase in installs of high-end color systems driven by strong demand for the recently launched Xerox Color 770, which has enabled large market share gains in the entry production color market segment. |
• | 24% decrease in installs of high-end black-and-white systems, reflecting continued declines in the overall market. |
• | 53% increase in installs of high-end color systems driven primarily by strong demand for the recently launched Xerox Color 770 and the DocuColor™ 8080. These products have enabled large market share gains in the Entry Production Color market segment. |
• | 16% decrease in installs of high-end black-and-white systems. |
(1) | Represents revenues from color devices and is a subset of total revenues and excludes Global Imaging Systems, Inc. (“GIS”) color revenues. |
(2) | See the “Non-GAAP Financial Measures” section for an explanation of this non-GAAP financial measure. |
(3) | Equipment sales associated with Document Outsourcing are reported in our Services segment revenue. |
• | As of June 30, 2012 and December 31, 2011, total cash and cash equivalents were $814 million and $902 million, respectively. We had $649 borrowings under our Commercial Paper Program at June 30, 2012 as compared to $100 million at December 31, 2011. There were no outstanding borrowings or letters of credit under our $2 billion Credit Facility for either period. |
• | Our Commercial Paper program was established in 2010 as a means to reduce our cost of capital and to provide an alternative liquidity vehicle in the market. Aggregate Commercial Paper and Credit Facility borrowings may not exceed the borrowing capacity under our Credit Facility at any time. |
• | Our operating cash flow during the first half of 2012 was $213 million and we continue to expect full-year operating cash flow of $2 billion to $2.3 billion. Over the past three years we have consistently delivered strong cash flow from operations driven by the strength of our annuity based revenue model. Cash flows from operations were $1,961 million, $2,726 million and $2,208 million for the three years ended December 31, 2011, respectively. |
Six Months Ended June 30, | Change | ||||||||||
(in millions) | 2012 | 2011 | |||||||||
Net cash provided by operating activities | $ | 213 | $ | 317 | $ | (104 | ) | ||||
Net cash used in investing activities | (312 | ) | (368 | ) | 56 | ||||||
Net cash provided by (used in) financing activities | 8 | (81 | ) | 89 | |||||||
Effect of exchange rate changes on cash and cash equivalents | 3 | 19 | (16 | ) | |||||||
Decrease in cash and cash equivalents | (88 | ) | (113 | ) | 25 | ||||||
Cash and cash equivalents at beginning of period | 902 | 1,211 | (309 | ) | |||||||
Cash and Cash Equivalents at End of Period | $ | 814 | $ | 1,098 | $ | (284 | ) |
• | $248 million decrease related to higher accounts receivable primarily due to growth in services revenue and a reduction in the use of prompt pay discounts partially offset by an increase in sales of accounts receivable. |
• | $114 million decrease due to the timing of contributions to our defined benefit pension plans. |
• | $47 million decrease from higher net income tax payments primarily due to refunds in the prior year. |
• | $33 million decrease from derivatives primarily due to the absence of the early termination of certain interest rate swaps. |
• | $141 million increase primarily related to the timing of payments of accounts payable and accrued compensation. |
• | $109 million increase due to higher net run-off of finance receivables as a result of lower equipment sales. |
• | $53 million increase due to lower inventory growth. |
• | $37 million increase due to lower restructuring payments. |
• | $670 million increase reflecting the absence of payment of our liability to Xerox Capital Trust I in connection with their redemption of preferred securities. |
• | $357 million decrease resulting from our share repurchase program. |
• | $160 million decrease from net debt activity. 2012 reflects net proceeds of $1.1 billion on Senior Notes issued in March and an increase of $549 million on Commercial Paper offset by net payments on Senior Notes of $1.1 billion in June and $6 million on other debt. 2011 reflects proceeds of $1 billion from the issuance of Senior Notes and $3 million on other debt offset by a decrease of $300 million on Commercial Paper. |
• | $49 million decrease due to higher distributions to noncontrolling interests. |
• | $21 million decrease due to lower proceeds from the issuances of common stock under our stock option plans. |
(in millions) | June 30, 2012 | December 31, 2011 | |||||
Total Finance receivables, net(1) | $ | 5,916 | $ | 6,362 | |||
Equipment on operating leases, net | 519 | 533 | |||||
Total Finance Assets, net(2) | $ | 6,435 | $ | 6,895 |
(1) | Includes (i) billed portion of finance receivables, net, (ii) finance receivables, net and (iii) finance receivables due after one year, net as included in our Condensed Consolidated Balance Sheets. |
(2) | Change from December 31, 2011 includes a decrease of $91 million due to currency. |
(in millions) | June 30, 2012 | December 31, 2011 | |||||
Financing debt(1) | $ | 5,631 | $ | 6,033 | |||
Core debt | 3,529 | 2,600 | |||||
Total Debt | $ | 9,160 | $ | 8,633 |
(1) | Financing debt includes $5,177 million and $5,567 million as of June 30, 2012 and December 31, 2011, respectively, of debt associated with Total finance receivables, net and is the basis for our calculation of “Equipment financing interest” expense. The remainder of the financing debt is associated with Equipment on operating leases. |
(in millions) | June 30, 2012 | December 31, 2011 | |||||
Principal debt balance(1) | $ | 9,061 | $ | 8,450 | |||
Net unamortized discount | (65 | ) | (7 | ) | |||
Fair value adjustments(2) | 164 | 190 | |||||
Total Debt | 9,160 | 8,633 | |||||
Less: Current maturities and short-term debt | (1,099 | ) | (1,545 | ) | |||
Total Long-term Debt | $ | 8,061 | $ | 7,088 |
(1) | Includes Commercial Paper of $649 million and $100 million as of June 30, 2012 and December 31, 2011, respectively. |
(2) | Fair value adjustments represent changes in the fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported at an amount equal to the sum of their carrying value (principal value plus/minus premiums/discounts) and any fair value adjustment. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Accounts receivable sales | $ | 1,215 | $ | 819 | $ | 2,090 | $ | 1,549 | |||||||
Deferred proceeds | 256 | 103 | 403 | 197 | |||||||||||
Fees associated with sales | 6 | 5 | 12 | 9 | |||||||||||
Estimated increase to operating cash flows(1) | 169 | 29 | 100 | 5 |
(1) | Represents the difference between current and prior period receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections |
Year | Amount | |||
2012 Q3 | 663 | |||
2012 Q4 | 11 | |||
2013 | 1,031 | |||
2014 | 1,085 | |||
2015 | 1,255 | |||
2016 | 952 | |||
2017 | 1,001 | |||
2018 | 1,001 | |||
2019 | 650 | |||
2020 | — | |||
2021 and thereafter | 1,412 | |||
Total | $ | 9,061 |
• | Net income and Earnings per share (“EPS”) |
• | Effective tax rate |
Three Months Ended June 30, 2012 | Three Months Ended June 30, 2011 | |||||||||||||||
(in millions; except per share amounts) | Net Income | EPS | Net Income | EPS | ||||||||||||
As Reported | $ | 309 | $ | 0.22 | $ | 319 | $ | 0.22 | ||||||||
Adjustments: | ||||||||||||||||
Amortization of intangible assets | 51 | 0.04 | 54 | 0.04 | ||||||||||||
Loss on early extinguishment of liability | — | — | 20 | 0.01 | ||||||||||||
Adjusted | $ | 360 | $ | 0.26 | $ | 393 | $ | 0.27 | ||||||||
Weighted average shares for adjusted EPS(1) | 1,393 | 1,465 | ||||||||||||||
Fully diluted shares at June 30, 2012(2) | 1,366 | |||||||||||||||
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | |||||||||||||||
Net Income | EPS | Net Income | EPS | |||||||||||||
(in millions; except per share amounts) | ||||||||||||||||
As Reported | $ | 578 | $ | 0.41 | $ | 600 | $ | 0.41 | ||||||||
Adjustments: | ||||||||||||||||
Amortization of intangible assets | 101 | 0.08 | 107 | 0.08 | ||||||||||||
Loss on early extinguishment of liability | — | — | 20 | 0.01 | ||||||||||||
Adjusted | $ | 679 | $ | 0.49 | $ | 727 | $ | 0.50 | ||||||||
Weighted average shares for adjusted EPS(1) | 1,392 | 1,463 | ||||||||||||||
Fully diluted shares at June 30, 2012(2) | 1,366 |
(1) | Average shares for the calculation of adjusted EPS for the three and six months ended June 30, 2012 were 1,393 million and 1,392 million, respectively, and include 27 million of shares associated with the Series A convertible preferred stock. Accordingly, the quarterly dividends of $6 million and year-to-date dividends of $12 million on these preferred shares are excluded. Average shares of 1,465 million and 1,463 million for the three and six months ended June 30, 2011, respectively, also include 27 million shares associated with the Series A convertible preferred stock and the quarterly dividends of $6 million and year-to-date dividends of $12 million are likewise excluded. We evaluate the dilutive effect of the Series A convertible preferred stock on an “if-converted” basis. |
(2) | Represents common shares outstanding at June 30, 2012 as well as shares associated with our Series A convertible stock plus dilutive potential common shares as used for the calculation of earnings per share for the three and six months ended June 30, 2012. |
Three Months Ended June 30, 2012 | Three Months Ended June 30, 2011 | |||||||||||||||||||||
(in millions) | Pre-Tax Income | Income Tax Expense | Effective Tax Rate | Pre-Tax Income | Income Tax Expense | Effective Tax Rate | ||||||||||||||||
As Reported | $ | 351 | $ | 66 | 18.8 | % | $ | 401 | $ | 108 | 26.9 | % | ||||||||||
Adjustments: | ||||||||||||||||||||||
Amortization of intangible assets | 82 | 31 | 87 | 33 | ||||||||||||||||||
Loss on early extinguishment of liability | — | — | 33 | 13 | ||||||||||||||||||
Adjusted | $ | 433 | $ | 97 | 22.4 | % | $ | 521 | $ | 154 | 29.6 | % | ||||||||||
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | |||||||||||||||||||||
Pre-Tax Income | Income Tax Expense | Effective Tax Rate | Pre-Tax Income | Income Tax Expense | Effective Tax Rate | |||||||||||||||||
As Reported | $ | 664 | $ | 143 | 21.5 | % | $ | 751 | $ | 203 | 27.0 | % | ||||||||||
Adjustments: | ||||||||||||||||||||||
Amortization of intangible assets | 164 | 63 | 172 | 65 | ||||||||||||||||||
Loss on early extinguishment of liability | — | — | 33 | 13 | ||||||||||||||||||
Adjusted | $ | 828 | $ | 206 | 24.9 | % | $ | 956 | $ | 281 | 29.4 | % |
Three Months Ended June 30, 2012 | Three Months Ended June 30, 2011 | |||||||||||||||||||||
(in millions) | Profit | Revenue | Margin | Profit | Revenue | Margin | ||||||||||||||||
Reported Pre-tax Income | $ | 351 | $ | 5,541 | 6.3 | % | $ | 401 | $ | 5,614 | 7.1 | % | ||||||||||
Adjustments: | ||||||||||||||||||||||
Amortization of intangible assets | 82 | 87 | ||||||||||||||||||||
Xerox restructuring charge (credit) | 29 | (9 | ) | |||||||||||||||||||
Other expenses, net | 74 | 104 | ||||||||||||||||||||
Adjusted Operating | $ | 536 | $ | 5,541 | 9.7 | % | $ | 583 | $ | 5,614 | 10.4 | % | ||||||||||
Equity in net income of unconsolidated affiliates | 31 | 34 | ||||||||||||||||||||
Loss on early extinguishment of liability | — | 33 | ||||||||||||||||||||
Fuji Xerox restructuring charge | 6 | 4 | ||||||||||||||||||||
Other expenses, net* | (75 | ) | (105 | ) | ||||||||||||||||||
Segment Profit/Revenue | $ | 498 | $ | 5,541 | 9.0 | % | $ | 549 | $ | 5,614 | 9.8 | % | ||||||||||
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | |||||||||||||||||||||
(in millions) | Profit | Revenue | Margin | Profit | Revenue | Margin | ||||||||||||||||
Reported Pre-tax Income | $ | 664 | $ | 11,044 | 6.0 | % | $ | 751 | $ | 11,079 | 6.8 | % | ||||||||||
Adjustments: | ||||||||||||||||||||||
Amortization of intangible assets | 164 | 172 | ||||||||||||||||||||
Xerox restructuring charge (credit) | 46 | (24 | ) | |||||||||||||||||||
Other expenses, net | 129 | 182 | ||||||||||||||||||||
Adjusted Operating | $ | 1,003 | $ | 11,044 | 9.1 | % | $ | 1,081 | $ | 11,079 | 9.8 | % | ||||||||||
Equity in net income of unconsolidated affiliates | 71 | 68 | ||||||||||||||||||||
Loss on early extinguishment of liability | — | 33 | ||||||||||||||||||||
Fuji Xerox restructuring charge | 10 | 15 | ||||||||||||||||||||
Other expenses, net* | (130 | ) | (182 | ) | ||||||||||||||||||
Segment Profit/Revenue | $ | 954 | $ | 11,044 | 8.6 | % | $ | 1,015 | $ | 11,079 | 9.2 | % |
* | Includes rounding adjustments. |
(a) | Sales of Unregistered Securities during the Quarter ended June 30, 2012 |
a. | Securities issued on April 30, 2012: Registrant issued 3,283 deferred stock units (“DSUs”), representing the right to receive shares of Common stock, par value $1 per share, at a future date. |
b. | No underwriters participated. The shares were issued to each of the non-employee Directors of Registrant: Glenn A. Britt, Richard J. Harrington, William Curt Hunter, Robert J. Keegan, Robert A. McDonald, N. J. Nicholas, Jr., Charles Prince, Ann N. Reese, Sara Martinez Tucker and Mary Agnes Wilderotter. |
c. | The DSUs were issued at a deemed purchase price of $8.095 per DSU (aggregate price $26,576), based upon the market value on the date of record, in payment of the dividend equivalents due to DSU holders pursuant to Registrant’s 2004 Equity Compensation Plan for Non-Employee Directors. |
d. | Exemption from registration under the Act was claimed based upon Section 4(2) as a sale by an issuer not involving a public offering. |
(b) | Issuer Purchases of Equity Securities during the Quarter ended June 30, 2012 |
Total Number of Shares Purchased | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Approximate Dollar Value of Share That May Yet Be Purchased Under the Plans or Programs(2) | ||||||||||
April 1 through 30 | 490,000 | $ | 7.92 | 490,000 | $ | 1,305,468,573 | |||||||
May 1 through 31 | 16,629,200 | 7.40 | 16,629,200 | 1,182,339,872 | |||||||||
June 1 through 30 | 24,209,544 | 7.41 | 24,209,544 | 1,002,867,828 | |||||||||
Total | 41,328,744 | 41,328,744 |
(1) | Exclusive of fees and costs. |
(2) | Of the cumulative $5.0 billion of share repurchase authority previously granted by our Board of Directors, exclusive of fees and expenses, approximately $4.0 billion has been used through June 30, 2012. Repurchases may be made on the open market, or through derivative or negotiated transactions. Open-market repurchases will be made in compliance with the Securities and Exchange Commission’s Rule 10b-18, and are subject to market conditions, as well as applicable legal and other considerations. |
Total Number of Shares Purchased | Average Price Paid per Share(2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum That May Be Purchased under the Plans or Programs | |||||||
April 1 through 30 | 156,770 | $ | 8.15 | n/a | n/a | |||||
May 1 through 31 | 339 | 7.20 | n/a | n/a | ||||||
June 1 through 30 | — | — | n/a | n/a | ||||||
Total | 157,109 |
(1) | These repurchases are made under a provision in our restricted stock compensation programs for the indirect repurchase of shares through a net-settlement feature upon the vesting of shares in order to satisfy minimum statutory tax-withholding requirements. |
(2) | Exclusive of fees and costs. |
3(a) | Restated Certificate of Incorporation of Registrant filed with the Department of State of New York on November 7, 2003, as amended by Certificate of Amendment to Certificate of Incorporation filed with the Department of State of New York on August 19, 2004, Certificate of Change filed with the Department of State of the State of New York on October 31, 2007, Certificate of Amendment to Certificate of Incorporation filed with the Department of State of the State of New York on May 29, 2008. Certificate of Amendment to Certificate of Incorporation filed with the Department of State of the State of New York on February 13, 2009 and Certificate of Amendment to Certificate of Incorporation filed with the Department of State of the State of New York on February 3, 2010. | |
Incorporated by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K dated February 5, 2010. | ||
3(b) | By-Laws of Registrant, as amended through May 21, 2009. | |
Incorporated by reference to Exhibit 3(b) to Registrant’s Current Report on Form 8-K dated May 21, 2009. | ||
10(e)(26) | Registrant's 2004 Performance Incentive Plan, as amended and restated as of May 24, 2012. | |
12 | Computation of Ratio of Earnings to Fixed Charges. | |
31(a) | Certification of CEO pursuant to Rule 13a-14(a) or Rule 15d-14(a). | |
31(b) | Certification of CFO pursuant to Rule 13a-14(a) or Rule 15d-14(a). | |
32 | Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase. | |
101.INS | XBRL Instance Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. | |
101.SCH | XBRL Taxonomy Extension Schema Linkbase. |
XEROX CORPORATION (Registrant) | |
By: | /S/ GARY R. KABURECK |
Gary R. Kabureck Vice President and Chief Accounting Officer (Principal Accounting Officer) |
3(a) | Restated Certificate of Incorporation of Registrant filed with the Department of State of New York on November 7, 2003, as amended by Certificate of Amendment to Certificate of Incorporation filed with the Department of State of New York on August 19, 2004, Certificate of Change filed with the Department of State of the State of New York on October 31, 2007, Certificate of Amendment to Certificate of Incorporation filed with the Department of State of the State of New York on May 29, 2008. Certificate of Amendment to Certificate of Incorporation filed with the Department of State of the State of New York on February 13, 2009 and Certificate of Amendment to Certificate of Incorporation filed with the Department of State of the State of New York on February 3, 2010. | |
Incorporated by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K dated February 5, 2010. | ||
3(b) | By-Laws of Registrant, as amended through May 21, 2009. | |
Incorporated by reference to Exhibit 3(b) to Registrant’s Current Report on Form 8-K dated May 21, 2009. | ||
10(e)(26) | Registrant's 2004 Performance Incentive Plan, as amended and restated as of May 24, 2012. | |
12 | Computation of Ratio of Earnings to Fixed Charges. | |
31(a) | Certification of CEO pursuant to Rule 13a-14(a) or Rule 15d-14(a). | |
31(b) | Certification of CFO pursuant to Rule 13a-14(a) or Rule 15d-14(a). | |
32 | Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase. | |
101.INS | XBRL Instance Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. | |
101.SCH | XBRL Taxonomy Extension Schema Linkbase. |
1 | 58 million reflects the number of shares if all grants were made in ”whole value” shares (e.g., restricted stock or performance shares). This includes shares available for issuance as of February 1, 2012 plus 25 million shares approved by shareholders on May 24, 2012. If all grants were made in the form of options or SARs, the number available is approximately 97million. |
XEROX CORPORATION | |
By: | /s/ Tom Maddison |
Vice President, Human Resources |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in millions) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Fixed Charges: | ||||||||||||||||
Interest expense | $ | 109 | $ | 124 | $ | 218 | $ | 251 | ||||||||
Capitalized interest | 4 | 4 | 8 | 6 | ||||||||||||
Portion of rental expense which represents interest factor | 57 | 56 | 114 | 113 | ||||||||||||
Total Fixed Charges | $ | 170 | $ | 184 | $ | 340 | $ | 370 | ||||||||
Earnings Available for Fixed Charges: | ||||||||||||||||
Pre-tax income | $ | 351 | $ | 401 | $ | 664 | $ | 751 | ||||||||
Add: Distributed equity income of affiliated companies | 27 | 27 | 36 | 28 | ||||||||||||
Add: Fixed charges | 170 | 184 | 340 | 370 | ||||||||||||
Less: Capitalized interest | (4 | ) | (4 | ) | (8 | ) | (6 | ) | ||||||||
Less: Net income-noncontrolling interests | (7 | ) | (8 | ) | (14 | ) | (16 | ) | ||||||||
Total Earnings Available for Fixed Charges | $ | 537 | $ | 600 | $ | 1,018 | $ | 1,127 | ||||||||
Ratio of Earnings to Fixed Charges | 3.16 | 3.26 | 2.99 | 3.05 | ||||||||||||
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends: | ||||||||||||||||
Fixed Charges: | ||||||||||||||||
Interest expense | $ | 109 | $ | 124 | $ | 218 | $ | 251 | ||||||||
Capitalized interest | 4 | 4 | 8 | 6 | ||||||||||||
Portion of rental expense which represents interest factor | 57 | 56 | 114 | 113 | ||||||||||||
Total Fixed Charges before preferred stock dividends pre-tax income requirements | 170 | 184 | 340 | 370 | ||||||||||||
Preferred stock dividends pre-tax income requirements | 9 | 9 | 19 | 19 | ||||||||||||
Total Combined Fixed Charges and Preferred Stock Dividends | $ | 179 | $ | 193 | $ | 359 | $ | 389 | ||||||||
Earnings Available for Fixed Charges: | ||||||||||||||||
Pre-tax income | $ | 351 | $ | 401 | $ | 664 | $ | 751 | ||||||||
Add: Distributed equity income of affiliated companies | 27 | 27 | 36 | 28 | ||||||||||||
Add: Fixed charges before preferred stock dividends | 170 | 184 | 340 | 370 | ||||||||||||
Less: Capitalized interest | (4 | ) | (4 | ) | (8 | ) | (6 | ) | ||||||||
Less: Net income-noncontrolling interests | (7 | ) | (8 | ) | (14 | ) | (16 | ) | ||||||||
Total Earnings Available for Fixed Charges and Preferred Stock Dividends | $ | 537 | $ | 600 | $ | 1,018 | $ | 1,127 | ||||||||
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends | 3.00 | 3.11 | 2.84 | 2.90 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Xerox Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/S/ URSULA M. BURNS | |
Ursula M. Burns Principal Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Xerox Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/S/ LUCA MAESTRI | |
Luca Maestri Principal Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/S/ URSULA M. BURNS | |
Ursula M. Burns Chief Executive Officer | |
July 31, 2012 | |
/S/ LUCA MAESTRI | |
Luca Maestri Chief Financial Officer | |
July 31, 2012 |
Shareholders Equity (Details 1) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Beginning Balance | $ 11,876 | $ 11,876 | ||||||||||||||||||||||
Noncontrolling interests, Beginning Balance | 149 | 149 | ||||||||||||||||||||||
Total Equity, Beginning Balance | 12,025 | 13,141 | 12,159 | 12,025 | 12,159 | |||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 85 | 492 | 416 | 1,013 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 6 | 8 | 14 | 16 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 91 | 500 | 430 | 1,029 | ||||||||||||||||||||
Dividends, Common Stock, Cash | (116) | [1] | (122) | [1] | ||||||||||||||||||||
Dividends, Preferred Stock, Cash | (6) | (6) | (12) | [2] | (12) | [2] | ||||||||||||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 130 | [3] | ||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 74 | 93 | ||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | (1) | 2 | ||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | (357) | [4] | ||||||||||||||||||||||
Treasury Stock, Retired, Cost Method, Amount | 0 | |||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (27) | (10) | ||||||||||||||||||||||
Stockholders' Equity, Other | 2 | |||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0850 | $ 0.0850 | ||||||||||||||||
Preferred Stock, Dividends Per Share, Declared | $ 20.00 | $ 20.00 | $ 20.00 | $ 20.00 | $ 20.00 | $ 20.00 | ||||||||||||||||||
Ending Balance | 12,010 | 11,876 | 12,010 | |||||||||||||||||||||
Noncontrolling interests, Ending Balance | 136 | 149 | 136 | |||||||||||||||||||||
Total Equity, Ending Balance | 12,146 | 12,025 | 13,141 | 12,146 | 13,141 | |||||||||||||||||||
Parent [Member]
|
||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Beginning Balance | 11,876 | 12,006 | 11,876 | 12,006 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 416 | 1,013 | ||||||||||||||||||||||
Dividends, Common Stock, Cash | (116) | [1] | (122) | [1] | ||||||||||||||||||||
Dividends, Preferred Stock, Cash | (12) | [2] | (12) | [2] | ||||||||||||||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 130 | [3] | ||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 74 | 93 | ||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | (1) | 2 | ||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | (357) | |||||||||||||||||||||||
Treasury Stock, Retired, Cost Method, Amount | 0 | |||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | ||||||||||||||||||||||
Stockholders' Equity, Other | 0 | |||||||||||||||||||||||
Ending Balance | 12,010 | 12,980 | 12,010 | 12,980 | ||||||||||||||||||||
Common Stock [Member]
|
||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Beginning Balance | 1,353 | 1,398 | 1,353 | 1,398 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | 0 | ||||||||||||||||||||||
Dividends, Common Stock, Cash | 0 | [1] | 0 | [1] | ||||||||||||||||||||
Dividends, Preferred Stock, Cash | 0 | [2] | 0 | [2] | ||||||||||||||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 15 | [3] | ||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 2 | 5 | ||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 0 | 0 | ||||||||||||||||||||||
Treasury Stock, Retired, Cost Method, Amount | (22) | |||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | ||||||||||||||||||||||
Stockholders' Equity, Other | 0 | |||||||||||||||||||||||
Ending Balance | 1,348 | 1,403 | 1,348 | 1,403 | ||||||||||||||||||||
Additional Paid-in Capital [Member]
|
||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Beginning Balance | 6,317 | 6,580 | 6,317 | 6,580 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | 0 | ||||||||||||||||||||||
Dividends, Common Stock, Cash | 0 | [1] | 0 | [1] | ||||||||||||||||||||
Dividends, Preferred Stock, Cash | 0 | [2] | 0 | [2] | ||||||||||||||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 115 | [3] | ||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 72 | 88 | ||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | (1) | 2 | ||||||||||||||||||||||
Treasury Stock, Retired, Cost Method, Amount | (156) | |||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | ||||||||||||||||||||||
Stockholders' Equity, Other | 0 | |||||||||||||||||||||||
Ending Balance | 6,347 | 6,670 | 6,347 | 6,670 | ||||||||||||||||||||
Treasury Stock [Member]
|
||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Beginning Balance | (124) | (124) | ||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | |||||||||||||||||||||||
Dividends, Common Stock, Cash | 0 | [1] | ||||||||||||||||||||||
Dividends, Preferred Stock, Cash | 0 | [2] | ||||||||||||||||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 0 | [3] | ||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | |||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 0 | |||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | (357) | |||||||||||||||||||||||
Treasury Stock, Retired, Cost Method, Amount | (178) | |||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | |||||||||||||||||||||||
Ending Balance | (303) | (303) | ||||||||||||||||||||||
Retained Earnings [Member]
|
||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Beginning Balance | 7,046 | 6,016 | 7,046 | 6,016 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 578 | 600 | ||||||||||||||||||||||
Dividends, Common Stock, Cash | (116) | [1] | (122) | [1] | ||||||||||||||||||||
Dividends, Preferred Stock, Cash | (12) | [2] | (12) | [2] | ||||||||||||||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 0 | [3] | ||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | 0 | ||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 0 | 0 | ||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | 0 | |||||||||||||||||||||||
Treasury Stock, Retired, Cost Method, Amount | 0 | |||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | ||||||||||||||||||||||
Stockholders' Equity, Other | 0 | |||||||||||||||||||||||
Ending Balance | 7,496 | 6,482 | 7,496 | 6,482 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Member]
|
||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Beginning Balance | (2,716) | [5] | (1,988) | [5] | (2,716) | [5] | (1,988) | [5] | ||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (162) | [5] | 413 | [5] | ||||||||||||||||||||
Dividends, Common Stock, Cash | 0 | [1],[5] | 0 | [1],[5] | ||||||||||||||||||||
Dividends, Preferred Stock, Cash | 0 | [2],[5] | 0 | [2],[5] | ||||||||||||||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 0 | [3],[5] | ||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | [5] | 0 | |||||||||||||||||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 0 | [5] | 0 | [5] | ||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | 0 | [5] | ||||||||||||||||||||||
Treasury Stock, Retired, Cost Method, Amount | 0 | [5] | ||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | [5] | 0 | [5] | ||||||||||||||||||||
Stockholders' Equity, Other | 0 | [5] | ||||||||||||||||||||||
Ending Balance | (2,878) | [5] | (1,575) | [5] | (2,878) | [5] | (1,575) | [5] | ||||||||||||||||
Noncontrolling Interest [Member]
|
||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Noncontrolling interests, Beginning Balance | 149 | 153 | 149 | 153 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 14 | 16 | ||||||||||||||||||||||
Dividends, Common Stock, Cash | 0 | [1] | 0 | [1] | ||||||||||||||||||||
Dividends, Preferred Stock, Cash | 0 | [2],[3] | 0 | [2] | ||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | 0 | ||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 0 | 0 | ||||||||||||||||||||||
Treasury Stock, Retired, Cost Method, Amount | 0 | |||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (27) | (10) | ||||||||||||||||||||||
Stockholders' Equity, Other | 2 | |||||||||||||||||||||||
Noncontrolling interests, Ending Balance | $ 136 | $ 161 | $ 136 | $ 161 | ||||||||||||||||||||
|
Financial Instruments, Summary of Derivative Instruments Fair Value (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | $ 43 | $ 58 |
Total Derivative Liabilities | (19) | (31) |
Net Derivative (Liability) Asset | 24 | 27 |
Derivatives Designated as Hedging Instruments [Member]
|
||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative (Liability) Asset | 16 | 26 |
Derivatives Designated as Hedging Instruments [Member] | Foreign exchange contracts - forwards [Member] | Other current assets [Member]
|
||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 28 | 37 |
Derivatives Designated as Hedging Instruments [Member] | Foreign exchange contracts - forwards [Member] | Other current liabilities [Member]
|
||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Liabilities | (12) | (11) |
Not Designated as Hedging Instrument [Member]
|
||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Net Derivative (Liability) Asset | 8 | 1 |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts - forwards [Member] | Other current assets [Member]
|
||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Assets | 15 | 21 |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts - forwards [Member] | Other current liabilities [Member]
|
||
Summary Of Derivative Instruments By Hedge Designation [Abstract] | ||
Total Derivative Liabilities | $ (7) | $ (20) |
Shareholders Equity (Details 2) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2012
|
||||
Treasury Stock [Roll Forward] | ||||
Treasury Stock, Shares, Beginning (in shares) | 15,508 | |||
Treasury Stock, Value, Beginning | $ 124 | |||
Treasury Stock, Shares, Acquired | 47,429 | [1] | ||
Treasury Stock, Value, Acquired, Cost Method | 357 | [1] | ||
Treasury Stock, Shares, Retired | (22,098) | |||
Treasury Stock, Retired, Cost Method, Amount | 0 | |||
Treasury Stock, Shares, Ending (in shares) | 40,839 | |||
Treasury Stock, Value, Ending | 303 | |||
Treasury Stock [Member]
|
||||
Treasury Stock [Roll Forward] | ||||
Treasury Stock, Value, Acquired, Cost Method | 357 | |||
Treasury Stock, Retired, Cost Method, Amount | $ (178) | |||
|
Financial Instruments, Interest Rate Risk Management (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
---|---|
Derivative [Line Items] | |
Notional Amount of Foreign Currency Derivatives | $ 2,823 |
Shareholders Equity (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Shareholders’ Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | Shareholders’ Equity
_____________________________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Treasury Stock by Class [Table Text Block] | The following is a summary of the purchases of common stock made during the six months ended June 30, 2012 under our authorized stock repurchase programs (shares in thousands):
____________________________
|
Earnings per Share, Reconciliation (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||
Basic Earnings per Share: | ||||||||||||
Net income attributable to Xerox | $ 309 | $ 319 | $ 578 | $ 600 | ||||||||
Accrued dividends on preferred stock | (6) | (6) | (12) | [1] | (12) | [1] | ||||||
Adjusted Net Income Available to Common Shareholders | 303 | 313 | 566 | 588 | ||||||||
Weighted-average common shares outstanding (in shares) | 1,333,942 | 1,402,206 | 1,333,927 | 1,401,065 | ||||||||
Basic Earnings per Share (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.42 | $ 0.42 | ||||||||
Diluted Earnings (Loss) per Share: | ||||||||||||
Net income attributable to Xerox | 309 | 319 | 578 | 600 | ||||||||
Accrued dividends on preferred stock | (6) | (6) | (12) | [1] | (12) | [1] | ||||||
Interest on Convertible Securities, net | 0 | 0 | 1 | 1 | ||||||||
Adjusted Net Income Available to Common Shareholders | $ 303 | $ 313 | $ 567 | $ 589 | ||||||||
Weighted-average common shares outstanding (in shares) | 1,333,942 | 1,402,206 | 1,333,927 | 1,401,065 | ||||||||
Common shares issuable with respect to: | ||||||||||||
Convertible Securities (in shares) | 1,992 | 1,992 | 1,992 | 1,992 | ||||||||
Adjusted Weighted Average Common Shares Outstanding (in shares) | 1,366,199 | 1,437,896 | 1,365,313 | 1,436,445 | ||||||||
Diluted Earnings per Share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.41 | $ 0.41 | ||||||||
Dividends per common share (in dollars per share) | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0850 | $ 0.0850 | ||||
Stock Options [Member]
|
||||||||||||
Common shares issuable with respect to: | ||||||||||||
Stock options and Restricted stock and performance shares (in shares) | 5,759 | 11,698 | 6,366 | 12,485 | ||||||||
Restricted Stock and performance shares [Member]
|
||||||||||||
Common shares issuable with respect to: | ||||||||||||
Stock options and Restricted stock and performance shares (in shares) | 24,506 | 22,000 | 23,028 | 20,903 | ||||||||
|
Inventories (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventoires | The following is a summary of Inventories by major category:
|
Financial Instruments Currency losses - total (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Currency losses [Abstract] | ||||
Currency Losses Net | $ 0 | $ 0 | $ 0 | $ 1 |
Restructuring Programs (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||||
Restructuring reserve [Roll Forward] | ||||||||||
Balance at beginning of period | $ 123 | |||||||||
Restructuring provision | 54 | |||||||||
Reversals of prior accruals | (8) | |||||||||
Net current period charges | 29 | (9) | 46 | [1] | (24) | |||||
Charges against reserve and currency | (46) | (67) | (85) | (120) | ||||||
Balance at end of period | 84 | 84 | ||||||||
Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||||||
Asset impairment | 0 | 0 | 2 | 0 | ||||||
Effects of foreign currency and other non-cash items | 2 | 4 | 0 | 0 | ||||||
Cash Payments for Restructurings | 44 | 63 | 83 | 120 | ||||||
Restructuring, Lease Termination and Asset Impairment Charges | 7 | |||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 1,100 | |||||||||
Services Segment [Member]
|
||||||||||
Restructuring reserve [Roll Forward] | ||||||||||
Net current period charges | 16 | 1 | 19 | 0 | ||||||
Technology [Member]
|
||||||||||
Restructuring reserve [Roll Forward] | ||||||||||
Net current period charges | 12 | (7) | 29 | (19) | ||||||
Other [Member]
|
||||||||||
Restructuring reserve [Roll Forward] | ||||||||||
Net current period charges | 1 | (3) | (2) | (5) | ||||||
Severance and Related Costs [Member]
|
||||||||||
Restructuring reserve [Roll Forward] | ||||||||||
Balance at beginning of period | 116 | |||||||||
Restructuring provision | 47 | |||||||||
Reversals of prior accruals | (8) | |||||||||
Net current period charges | 39 | [1] | ||||||||
Charges against reserve and currency | (81) | |||||||||
Balance at end of period | 74 | 74 | ||||||||
Lease Cancellation and Other Costs [Member]
|
||||||||||
Restructuring reserve [Roll Forward] | ||||||||||
Balance at beginning of period | 7 | |||||||||
Restructuring provision | 5 | |||||||||
Reversals of prior accruals | 0 | |||||||||
Net current period charges | 5 | [1] | ||||||||
Charges against reserve and currency | (2) | |||||||||
Balance at end of period | 10 | 10 | ||||||||
Asset Impairments [Member]
|
||||||||||
Restructuring reserve [Roll Forward] | ||||||||||
Balance at beginning of period | 0 | [2] | ||||||||
Restructuring provision | 2 | [2] | ||||||||
Reversals of prior accruals | 0 | [2] | ||||||||
Net current period charges | 2 | [2] | ||||||||
Charges against reserve and currency | (2) | [2] | ||||||||
Balance at end of period | $ 0 | [2] | $ 0 | [2] | ||||||
|
Segment Reporting, Reconciliation Of Operating Profit Loss (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Reconciliation of Operating Profit (Loss) from Segments to Consolidated Pre-tax Income (Loss) [Line Items] | ||||
Segment Profit | $ 498 | $ 549 | $ 954 | $ 1,015 |
Reconciling items: | ||||
Restructuring and asset impairment charges | (29) | 9 | (46) | 24 |
Restructuring charges of Fuji Xerox | (6) | (4) | (10) | (15) |
Amortization of intangible assets | (82) | (87) | (164) | (172) |
Equity in net income of unconsolidated affiliates | (31) | (34) | (71) | (68) |
Loss on early extinguishment of liability | 0 | (33) | 0 | (33) |
Other | 1 | 1 | 1 | 0 |
Pre-tax income | $ 351 | $ 401 | $ 664 | $ 751 |
Fair Value of Financial Assets and Liabilities, Nonrecurring (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Carrying Amount [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 814 | $ 902 |
Accounts receivable, net | 2,776 | 2,600 |
Short-term debt | 1,099 | 1,545 |
Long-term debt | 8,061 | 7,088 |
Estimated Fair Value [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 814 | 902 |
Accounts receivable, net | 2,776 | 2,600 |
Short-term debt | 1,111 | 1,622 |
Long-term debt | $ 8,691 | $ 7,496 |
Subsequent Events Acquisitions (Details)
In Millions, unless otherwise specified |
Jul. 01, 2012
Lateral Data LP [Member]
USD ($)
|
Jul. 01, 2012
Martin Whalen Office Solutions [Member]
USD ($)
|
Jul. 01, 2012
Wireless Data Services, Ltd. [Member]
USD ($)
|
Jul. 01, 2012
U.K. Pound Sterling [Member]
Wireless Data Services, Ltd. [Member]
GBP (£)
|
---|---|---|---|---|
Subsequent Event [Line Items] | ||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 30 | $ 31 | ||
Definitive Agreement to Acquire a Business | $ 100 | £ 65 |
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