EX-11 3 dex11.htm COMPUTATION OF EARNINGS Computation of Earnings

 

EXHIBIT 11

 

XEROX CORPORATION

 

COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE

(Dollars in millions, except per-share data; shares in thousands)

 

    

Three Months Ended

June 30,

     

Six Months Ended

June 30,

  
    

2002

   

2001

     

2002

     

2001

  

I.    Basic Earnings (Loss) Per Common Share

                                  

Income (Loss) before cumulative effect of change in accounting principle

   

$

87

   

$

(107

)

   

$

36

 

   

$

115

 

Accrued dividends on ESOP Preferred Stock

   

 

—

   

 

—

 

   

 

—

 

   

 

(12

)

    
  
  
  

Adjusted Income (Loss) before cumulative effect of change in accounting principle

   

$

87

   

$

(107

)

   

$

36

 

   

$

103

 

    
  
  
  

Net Income (Loss)

   

$

87

   

$

(107

)

   

$

(27

)

   

$

115

 

Accrued dividends on ESOP Preferred Stock

   

 

—

   

 

—

 

   

 

—

 

   

 

(12

)

    
  
  
  

Adjusted Net Income (Loss)

   

$

87

   

$

(107

)

   

$

(27

)

   

$

103

 

    
  
  
  

Average common shares outstanding during the period

   

 

726,499

   

 

699,657

 

   

 

725,320

 

   

 

688,478

 

Common shares issuable with respect to exchangeable shares

   

 

1,498

   

 

1,668

 

   

 

1,501

 

   

 

1,718

 

    
  
  
  

Adjusted average shares outstanding for the period

   

 

727,997

   

 

701,325

 

   

 

726,821

 

   

 

690,196

 

    
  
  
  

Basic Earnings (Loss) per share before cumulative effect of change in accounting principle

   

$

0.12

   

$

(0.15

)

   

$

0.05

 

   

$

0.15

 

    
  
  
  

Basic Earnings (Loss) per share

   

$

0.12

   

$

(0.15

)

   

$

(0.04

)

   

$

0.15

 

    
  
  
  

II.    Diluted Earnings (Loss) Per Common Share

                                  

Income (Loss) before cumulative effect of change in accounting principle

   

$

87

   

$

(107

)

   

$

36

 

   

$

115

 

ESOP expense adjustment, net of tax

   

 

—

   

 

—

 

   

 

—

 

   

 

(8

)

Interest on convertible debt, net

   

 

13

   

 

—

 

   

 

—

 

   

 

1

 

    
  
  
  

Adjusted Net Income (Loss)

   

$

100

   

$

(107

)

   

$

36

 

   

$

108

 

    
  
  
  

Average common shares outstanding during the period

   

 

726,499

   

 

699,657

 

   

 

725,320

 

   

 

688,478

 

Common shares issuable with respect to:

                                  

Stock options, incentive and exchangeable shares

   

 

7,250

   

 

1,668

 

   

 

7,730

 

   

 

6,051

 

Convertible debt

   

 

113,426

   

 

—

 

   

 

—

 

   

 

1,992

 

ESOP preferred stock

   

 

65,935

   

 

—

 

   

 

61,949

 

   

 

82,776

 

    
  
  
  

Adjusted average shares outstanding for the period

   

 

913,110

   

 

701,325

 

   

 

794,999

 

   

 

779,297

 

    
  
  
  

Diluted Earnings (Loss) per share before cumulative effect of change in accounting principle

   

$

0.11

   

$

(0.15

)

   

$

0.05

 

   

$

0.14

 

    
  
  
  

Net Income (Loss)

   

$

87

   

$

(107

)

   

$

(27

)

   

$

115

 

ESOP expense adjustment, net of tax

   

 

—

   

 

—

 

   

 

—

 

   

 

(8

)

Interest on convertible debt, net

   

 

13

   

 

—

 

   

 

—

 

   

 

1

 

    
  
  
  

Adjusted Net Income (Loss)

   

$

100

   

$

(107

)

   

$

(27

)

   

$

108

 

    
  
  
  

Average common shares outstanding during the period

   

 

726,499

   

 

699,657

 

   

 

725,320

 

   

 

688,478

 

Common shares issuable with respect to:

                                  

Stock options, incentive and exchangeable shares

   

 

7,250

   

 

1,668

 

   

 

1,501

 

   

 

6,051

 

Convertible debt

   

 

113,426

   

 

—

 

   

 

—

 

   

 

1,992

 

ESOP preferred stock

   

 

65,935

   

 

—

 

   

 

—

 

   

 

82,776

 

    
  
  
  

Adjusted average shares outstanding for the period

   

 

913,110

   

 

701,325

 

   

 

726,821

 

   

 

779,297

 

    
  
  
  

Diluted Earnings (Loss) per share

   

$

0.11

   

$

(0.15

)

   

$

(0.04

)

   

$

0.14

 

    
  
  
  

 

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