EX-11 3 0003.txt COMPUTATION OF PER SHARE EARNINGS EXHIBIT 11 Xerox Corporation Computation of Net Income Per Common Share (Dollars in millions, except per-share data; shares in thousands) Three months Nine Months ended September 30, ended September 30, 2000 1999 2000 1999 I. Basic Net Income (Loss) Per Common Share Net Income (Loss) $ (167) $ 339 $ (265) $ 1,130 Accrued dividends on ESOP preferred stock, net (8) (9) (26) (29) Adjusted net income (loss) $ (175) $ 330 $ (291) $ 1,101 Average common shares outstanding during the period 666,802 663,409 666,284 661,094 Common shares contingently issuable with respect to exchangeable shares 919 1,078 920 1,739 Adjusted average shares outstanding for the period 667,721 664,487 667,204 662,883 Basic earnings (loss) per share $ (0.26) $ 0.50 $ (0.44) $ 1.66 II. Diluted Net Income (Loss) Per Common Share Net Income (Loss) $ (167) $ 339 $ (265) $ 1,130 ESOP expense adjustment, net of tax - 1 - 5 Accrued dividends on ESOP preferred stock, net (8) - (26) - Interest on convertible debt, net of tax - 4 - 12 Adjusted net income (loss) $ (175) $ 344 $ (291) $ 1,147 Average common shares outstanding during the period 666,802 663,409 666,284 661,094 Stock options, incentive and exchangeable shares 919 10,403 920 12,028 Convertible debt - 13,191 - 13,191 ESOP preferred stock - 52,159 - 52,159 Adjusted average shares outstanding for the period 667,721 739,162 667,204 738,472 Diluted earnings (loss) per share $ (0.26) $ 0.47 $ (0.44) $ 1.55