Earnings per Share

6 Months Ended

Jun. 30, 2011

Note 15 - Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share of common stock (shares in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Basic Earnings per Share:
Net income attributable to Xerox	$	319		$	227		$	600		$	185
Accrued dividends on preferred stock		(6	)		(6	)		(12	)		(9	)
Adjusted Net Income Available to Common Shareholders	$	313		$	221		$	588		$	176
Weighted-average common shares outstanding		1,402,206			1,383,283			1,401,065			1,265,080
Basic Earnings per Share	$	0.22		$	0.16		$	0.42		$	0.14


Diluted Earnings per Share:
Net income attributable to Xerox	$	319		$	227		$	600		$	185
Accrued dividends on preferred stock		(6	)		(6	)		(12	)		(9	)
Interest on Convertible Securities, net		—			—			1			—
Adjusted Net Income Available to Common Shareholders	$	313		$	221		$	589		$	176

Weighted-average common shares outstanding		1,402,206			1,383,283			1,401,065			1,265,080
Common shares issuable with respect to:
Stock options		11,698			14,393			12,485			12,439
Restricted stock and performance shares		22,000			18,984			20,903			16,756
Convertible securities		1,992			1,992			1,992			—
Adjusted Weighted Average Common Shares Outstanding		1,437,896			1,418,652			1,436,445			1,294,275
Diluted Earnings per Share	$	0.22		$	0.16		$	0.41		$	0.14

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		53,745			109,790			52,958			111,744
Restricted stock and performance shares		15,892			12,852			16,989			15,080
Convertible preferred stock		26,966			26,966			26,966			26,966
Convertible securities		—			—			—			1,992
		96,603			149,608			96,913			155,782

Dividends per common share	$	0.0425		$	0.0425		$	0.0850		$	0.0850

The entire disclosure for earnings per share.