Xerox Financial Model
(unaudited)
(in $ millions, except per-share data)
1997
1998
1999
2000
2001
FY Revenues Sales Service, outsourcing, rentals Finance income Total Revenues Cost of Revenue Cost of sales Cost of service, outsourcing, rentals Equipment finance interest Total Cost of Revenue Gross Profit Sales gross profit Service, outsourcing, rentals gross profit Finance gross profit Gross Profit Research, development & engineering Bad Debt Expense Selling, administrative and general exp. (Excl Bad Debts) Total Selling, administrative and general exp. Non-financing interest expense Aggregate Exchange (gains) / losses Amortization of Goodwill and intangibles All other, net Total Other, net Restructuring and asset impairment charges Gain on sale of half of interest in Fuji Xerox Gain on sale of China operations Gain on affiliates' sales of stock, net Purchased in-process research and development Total Costs and Expenses Income (Loss) before Income Taxes (benefits), Equity Income and Cumulative Effect of Change in Accounting Principle Income Taxes (benefits) Equity in Net Income of Unconsol. Affil. Income(Loss) from Continuing Operations before Cumulative effect of change in accounting principle Cumulative effect of change in accounting principle, net of tax Discontinued Ops, net Net Income/(Loss)
1 1
FY 8,996 8,742 1,039 18,777
FY 8,967 8,853 1,175 18,995
FY 8,839 8,750 1,162 18,751
Q1 1,865 2,134 292 4,291
Q2 1,858 2,139 286 4,283
Q3 1,708 2,071 273 4,052
Q4 2,012 2,092 278 4,382
FY 7,443 8,436 1,129 17,008
8,303 8,192 962 17,457
5,631 4,898 435 10,964
6,080 5,153 498 11,731
1,362 1,292 130 2,784
1,290 1,183 125 2,598
1,223 1,182 107 2,512
1,236 1,221 95 2,552
5,111 4,878 457 10,446
3,336 3,955 740 8,031 1,080 1,045 1,020 386 4,818 5,204 443 (7) 50 89 575 12 17,775
2,759 3,597 664 7,020 1,064 473 5,045 5,518 571 (103) 86 34 588 475 (200) (21) 27 19,182
503 842 162 1,507 266 84 1,065 1,149 155 (64) 23 (35) 79 129 (769) 3,638
568 956 161 1,685 268 93 1,127 1,220 141 13 22 (7) 169 295 4,550
485 889 166 1,540 274 151 1,024 1,175 51 59 21 15 147 63 4,171
776 871 183 1,830 250 110 1,074 1,184 115 (37) 28 9 115 228 (4) (4) 4,321
2,332 3,558 672 6,562 1,058 438 4,290 4,728 462 (29) 94 (17) 510 715 (773) (4) 16,680
5,196
5,314
1,220 424 48
(431) (92) 66
653 432 3
(267) (129) 31
(119) (50) -
61 220 19
328 473 53
893 893
23 (190) (167)
844 844
(273) (273)
224 (2) 222
(107) (107)
(69) (69)
(140) (140)
(92) (2) (94)
Preferred Dividends/ Other Adjusted Average Shares
- Basic - Diluted - Basic - Diluted - Basic - Diluted 1.30 1.24 (0.32) (0.32) 1.20 1.17
(46) (46) 668 668 (0.48) (0.48)
(12) (12) 680 782 0.31 0.28
701 701 (0.15) (0.15)
718 718 (0.10) (0.10)
722 722 (0.19) (0.19)
(12) (12) 704 704 (0.15) (0.15)
Earnings Per Share
Key Ratios: Gross Margins - Sales - Service/Outsourcing/Rentals - Financing - Total 39.5% 48.4% 58.6% 44.8% 29.8% 40.5% 46.6% 58.2% 44.3% 28.3% 37.2% 44.7% 63.0% 42.3% 27.4% 34.6% 31.2% 41.1% 57.1% 37.4% 29.4% 19.1% 27.0% 39.5% 55.5% 35.1% 26.8% 65.7% 30.6% 44.7% 56.3% 39.3% 28.5% 49.2% 28.4% 42.9% 60.8% 38.0% 29.0% 42.9% 38.6% 41.6% 65.8% 41.8% 27.0% 266.3% 31.3% 42.2% 59.5% 38.6% 27.8% 126.1%
SAG as a % of Revenue Tax Rate Other Data: Restructuring and Asset Impairment Charges (after taxes) Gain on Sale of Half of Interest in Fuji Xerox (after taxes) Gain on Sale of China Operations Unhedged Aggregate Exchange (Gains)/Losses (after taxes) Early Extinguishment of Debt (after taxes) Ending Xerox Employment
339 (119) (69) 91,500 92,700 94,600 92,500
81 (300) (44) 88,200
222 10 85,600
47 38 83,300
157 (4) (25) 78,900
507 (304) (21) 78,900
Note: Certain reclassifications of prior year amounts have been made to conform to the current year presentation.
1
Amounts include reclassifications for the effects of adopting Fin 46R.
Xerox Financial Model
(unaudited)
(in $ millions, except per-share data)
2002
2003
Q1 Revenues Sales Service, outsourcing, rentals Finance income Total Revenues Cost of Revenue Cost of sales Cost of service, outsourcing, rentals Equipment finance interest Total Cost of Revenue Gross Profit Sales gross profit Service, outsourcing, rentals gross profit Finance gross profit Gross Profit Research, development & engineering Bad Debt Expense Selling, administrative and general exp. (Excl Bad Debts) Total Selling, administrative and general exp. Non-financing interest expense Aggregate Exchange (gains) / losses Amortization of Goodwill and intangibles All other, net Total Other, net Restructuring and asset impairment charges Gain on sale of half of interest in Fuji Xerox Gain on sale of China operations Gain on affiliates' sales of stock, net Purchased in-process research and development Total Costs and Expenses Income (Loss) before Income Taxes (benefits), Equity Income and Cumulative Effect of Change in Accounting Principle Income Taxes (benefits) Equity in Net Income of Unconsol. Affil. Income(Loss) from Continuing Operations before Cumulative effect of change in accounting principle Cumulative effect of change in accounting principle, net of tax Gain on sale of ContentGuard, net of income taxes of $26 Discontinued Ops, net Net Income/(Loss)
1 1
Q2 1,583 2,011 264 3,858 1,662 2,040 250 3,952
Q3 1,593 1,953 247 3,793
Q4 1,914 2,093 239 4,246
FY 6,752 8,097 1,000 15,849
Q1 1,589 1,917 251 3,757
Q2 1,696 1,970 254 3,920
Q3 1,603 1,885 244 3,732
Q4 2,082 1,962 248 4,292
FY 6,970 7,734 997 15,701
1,010 1,161 92 2,263
994 1,154 101 2,249
1,009 1,073 107 2,189
1,159 1,104 101 2,364
4,172 4,492 401 9,065
991 1,088 92 2,171
1,050 1,094 93 2,237
1,018 1,059 89 2,166
1,287 1,066 88 2,441
4,346 4,307 362 9,015
573 850 172 1,595 243 103 1,066 1,169 126 24 10 (23) 137 146 3,958
668 886 149 1,703 263 68 1,042 1,110 105 33 9 8 155 53 3,830
584 880 140 1,604 239 87 936 1,023 127 12 9 (15) 133 63 3,647
755 989 138 1,882 235 74 1,061 1,135 136 8 9 15 168 408 4,310
2,580 3,605 599 6,784 980 332 4,105 4,437 494 77 37 (15) 593 670 15,745
598 829 159 1,586 247 56 964 1,020 146 1 9 302 458 8 3,904
646 876 161 1,683 246 74 1,015 1,089 148 (21) 9 66 202 37 (1) 3,810
585 826 155 1,566 240 53 975 1,028 127 12 9 8 156 11 (12) 3,589
795 896 160 1,851 229 41 1,071 1,112 103 19 9 (71) 60 120 3,962
2,624 3,427 635 6,686 962 224 4,025 4,249 524 11 36 305 876 176 (13) 15,265
(100) (38) 11
122 50 15
146 64 17
(64) (72) 11
104 4 54
(147) (67) 14
110 40 16
143 38 13
330 123 15
436 134 58
(51) (63) (114)
87 87
99 99
19 19
154 (63) 91
(66) (66)
86 86
118 118
222 222
360 360
Preferred Dividends/ Other Adjusted Average Shares
- Basic - Diluted - Basic - Diluted - Basic - Diluted
726 726 (0.16) (0.16)
13 728 913 0.12 0.11
(63) (63) 734 825 0.05 0.04
(10) (10) 737 820 0.01 0.01
(73) (73) 731 807 0.02 0.02
(10) (10) 742 742 (0.10) (0.10)
(11) (11) 747 808 0.10 0.09
(25) (25) 792 851 0.12 0.11
(25) 10 794 1,045 0.25 0.22
(71) (65) 769 828 0.38 0.36
Earnings Per Share
Key Ratios: Gross Margins - Sales - Service/Outsourcing/Rentals - Financing - Total 36.2% 42.3% 65.2% 41.3% 30.3% 37.7% 40.2% 43.4% 59.6% 43.1% 28.1% 37.7% 36.7% 45.1% 56.7% 42.3% 27.0% 37.7% 39.4% 47.3% 57.7% 44.3% 26.7% 37.7% 38.2% 44.5% 59.9% 42.8% 28.0% 37.7% 37.6% 43.2% 63.3% 42.2% 27.1% 37.7% 38.1% 44.5% 63.4% 42.9% 27.8% 37.7% 36.5% 43.8% 63.5% 42.0% 27.5% 37.7% 38.2% 45.7% 64.5% 43.1% 25.9% 37.3% 37.6% 44.3% 63.7% 42.6% 27.1% 30.7%
SAG as a % of Revenue Tax Rate Other Data: Restructuring and Asset Impairment Charges (after taxes) Gain on Sale of Half of Interest in Fuji Xerox (after taxes) Gain on Sale of China Operations Gain on Sale of ContentGuard Gain on Sale of Scansoft (after taxes) Gain on Sale of Integic (after taxes) Gain on Return of Fuji Xerox Pension Obligation (after taxes) Unhedged Aggregate Exchange (Gains)/Losses (after taxes) Early Extinguishment of Debt (after taxes) Ending Xerox Employment
101 22 74,600
41 24 72,400
49 69,900
280 67,800
471 46 67,800
5 64,700 -
23 -
7 -
76
45 63,900
111 45 61,085
62,800
61,085
Note: Certain reclassifications of prior year amounts have been made to conform to the current year presentation.
1
Amounts include reclassifications for the effects of adopting Fin 46R.
Xerox Financial Model
(unaudited)
(in $ millions, except per-share data)
2004
2005
2006
Q1 Revenues Sales Service, outsourcing, rentals Finance income Total Revenues Cost of Revenue Cost of sales Cost of service, outsourcing, rentals Equipment finance interest Total Cost of Revenue Gross Profit Sales gross profit Service, outsourcing, rentals gross profit Finance gross profit Gross Profit Research, development & engineering Bad Debt Expense Selling, administrative and general exp. (Excl Bad Debts) Total Selling, administrative and general exp. Non-financing interest expense Aggregate Exchange (gains) / losses Amortization of Goodwill and intangibles All other, net Total Other, net Restructuring and asset impairment charges Gain on sale of half of interest in Fuji Xerox Gain on sale of China operations Gain on affiliates' sales of stock, net Purchased in-process research and development Total Costs and Expenses Income (Loss) before Income Taxes (benefits), Equity Income and Cumulative Effect of Change in Accounting Principle Income Taxes (benefits) Equity in Net Income of Unconsol. Affil. Income(Loss) from Continuing Operations before Cumulative effect of change in accounting principle Cumulative effect of change in accounting principle, net of tax Gain on sale of ContentGuard, net of income taxes of $26 Discontinued Operations, net of taxes Net Income/(Loss)
1 1
Q2 1,759 1,860 234 3,853
Q3 1,652 1,834 230 3,716
Q4 2,167 1,927 232 4,326
FY 7,259 7,529 934 15,722
Q1 1,694 1,849 228 3,771
Q2 1,827 1,874 220 3,921
Q3 1,721 1,822 216 3,759
Q4 2,158 1,881 211 4,250
FY 7,400 7,426 875 15,701
Q1 1,666 1,816 213 3,695
1,681 1,908 238 3,827
1,083 1,102 89 2,274
1,082 1,052 86 2,220
1,003 1,049 85 2,137
1,377 1,092 85 2,554
4,545 4,295 345 9,185
1,047 1,062 86 2,195
1,170 1,083 83 2,336
1,108 1,017 81 2,206
1,370 1,045 76 2,491
4,695 4,207 326 9,228
1,075 1,060 76 2,211
598 806 149 1,553 222 44 992 1,036 95 8 9 (25) 87 6 3,625
677 808 148 1,633 228 35 1,015 1,050 84 18 9 (61) 50 33 3,581
649 785 145 1,579 234 21 1,015 1,036 91 20 9 3 123 23 3,553
790 835 147 1,772 230 10 1,071 1,081 93 27 10 (21) 109 24 3,998
2,714 3,234 589 6,537 914 110 4,093 4,203 363 73 37 (104) 369 86 14,757
647 787 142 1,576 225 19 990 1,009 61 16 9 (118) (32) 85 3,482
657 791 137 1,585 242 15 1,031 1,046 62 (6) 10 (80) (14) 194 3,804
613 805 135 1,553 242 20 991 1,011 55 10 141 206 17 3,682
788 836 135 1,759 234 18 1,026 1,044 53 (5) 9 7 64 70
2,705 3,219 549 6,473 943 72 4,038 4,110 231 5 38 (50) 224 366 14,871
591 756 137 1,484 225 20 963 983 54 14 10 (10) 68 3,487
3,903
202 67 30
272 91 27
163 62 62
328 120 32
965 340 151
289 116 37
117 (233) 20
77 29 23
347 83 18
830 (5) 98
208 47 39
165 83 248
208 208
163 163
240 240
776 83 859
210 210
370 53 423
71 (8) 63
282 282
933 (8) 53 978
200 200
Preferred Dividends/ Other Adjusted Average Shares
- Basic - Diluted - Basic - Diluted - Basic - Diluted
(24) (4) 799 968 0.28 0.25
(21) 11 817 1,046 0.23 0.21
(14) 841 969 0.18 0.17
(14) 9 879 1,048 0.26 0.24
(73) 45 834 1,047 0.94 0.86
(14) 1 959 1,050 0.20 0.20
(15) 960 1,048 0.43 0.40
(14) (14) 962 973 0.05 0.05
(15) 951 1,039 0.28 0.27
(58) 1 957 1,045 0.96 0.94
(14) 1 927 1,017 0.20 0.20
Earnings Per Share
Key Ratios: Gross Margins - Sales - Service/Outsourcing/Rentals - Financing - Total 35.6% 42.2% 62.6% 40.6% 27.1% 33.2% 38.5% 43.4% 63.2% 42.4% 27.3% 33.5% 39.3% 42.8% 63.0% 42.5% 27.9% 38.0% 36.5% 43.2% 63.4% 41.0% 25.0% 36.6% 37.4% 43.0% 63.1% 41.6% 26.7% 35.2% 38.2% 42.6% 62.3% 41.8% 26.8% 40.1% 36.0% 42.2% 62.3% 40.4% 26.7% n/m 35.6% 44.2% 62.5% 41.3% 26.9% 37.7% 36.5% 44.4% 64.0% 41.4% 24.6% 23.9% 36.6% 43.3% 62.7% 41.2% 26.2% n/m 35.5% 41.6% 64.3% 40.2% 26.6% 22.6%
SAG as a % of Revenue Tax Rate Other Data: Restructuring and Asset Impairment Charges (after taxes) Tax benefit from finalization of 1996 - 1998 IRS Tax Audit - Continuing Operations (after taxes) Finalization of 1996 - 1998 IRS Tax Audit Discontinued Operations Income (after taxes) Provisions for Litigation Matters (after taxes) Losses on Hurricane Katrina (after taxes) Changes in Accounting Principles (WEEE/FIN 47) (after taxes) Gain on Sale of ContentGuard (after taxes) Gain on Sale of Scansoft (after taxes) Gain on Sale of Integic (after taxes) Gain on Return of Fuji Xerox Pension Obligation (after taxes) Early Extinguishment of Debt (after taxes) Ending Xerox Employment
4 83 60,592
22 30 60,001
16 38 59,262
13 58,098
55
83 30 38 58,098
55 58 57,989
130 290 53 57,300
11 79 9 26 56,276
51 55,229
247 290 53 79 9 26 58 -
55,084
55,229
Note: Certain reclassifications of prior year amounts have been made to conform to the current year presentation.
1
Amounts include reclassifications for the effects of adopting Fin 46R.
n/m - percent not meaningful
Xerox Corporation Business Segment Performance
(unaudited)
(in $ millions, except per-share data)
Q1 Revenues Production Office Developing Markets Other Total Revenues Memo: Color Revenues Operating Profit Production Office Developing Markets Other Operating Profit Operating Margin Production Office Developing Markets Other Operating Margin 1,094 1,857 420 456 3,827 957
Q2 1,122 1,869 417 445 3,853 1,025
2004 Q3 1,067 1,819 406 424 3,716 975
Q4 1,307 2,082 464 473 4,326 1,231
FY 4,590 7,627 1,707 1,798 15,722 4,188
Q1 1,072 1,829 412 458 3,771 1,097
Q2 1,125 1,914 440 442 3,921 1,200
2005 Q3 1,058 1,848 446 407 3,759 1,189
Q4 1,285 2,027 514 424 4,250 1,443
FY 4,540 7,618 1,812 1,731 15,701 4,929
2006 Q1 1,035 1,804 436 420 3,695 1,214
82 169 19 (32) 238
122 187 6 17 332
105 182 4 (43) 248
202 241 6 (67) 382
511 779 35 (125) 1,200
101 192 10 109 412
79 173 19 66 337
73 189 18 (14) 266
174 265 17 (10) 446
427 819 64 151 1,461
67 160 17 3 247
7.5% 9.1% 4.5% (7.0%) 6.2%
10.9% 10.0% 1.4% 3.8% 8.6%
9.8% 10.0% 1.0% (10.1%) 6.7%
15.5% 11.6% 1.3% (14.2%) 8.8%
11.1% 10.2% 2.1% (7.0%) 7.6%
9.4% 10.5% 2.4% 23.8% 10.9%
7.0% 9.0% 4.3% 14.9% 8.6%
6.9% 10.2% 4.0% (3.4%) 7.1%
13.5% 13.1% 3.3% (2.4%) 10.5%
9.4% 10.8% 3.5% 8.7% 9.3%
6.5% 8.9% 3.9% 0.7% 6.7%