EX-11 7 exhibit11final.txt NET INCOME/LOSS PER COMMON SHARE Exhibit 11 Xerox Corporation Computation of Net Income (Loss) Per Common Share (Dollars in millions, except per-share data; shares in thousands) Three months Six months ended June 30, ended June 30, 2001 2000 2001 2000 I. Basic Net Income (Loss) Per Common Share Net Income (Loss) $(281) $ 202 $ (79) $ (47) Accrued dividends on ESOP preferred stock, net - (7) (12) (17) Adjusted net income (loss) $(281) $ 195 $ (91) $ (64) Average common shares outstanding during the period 699,657 666,360 688,478 666,031 Common shares issuable with respect to exchangeable shares 834 920 859 921 Adjusted average shares outstanding for the period 700,491 667,280 689,337 666,952 Basic earnings (loss) per share $(0.40) $0.29 $(0.13) $(0.10) II. Diluted Net Income (Loss) Per Common Share Net Income (Loss) $(281) $ 202 $ (79) $ (47) ESOP expense adjustment, net of tax - (7) (12) (17) Interest on convertible debt, net of tax - 1 - - Adjusted net income (loss) $(281) $ 196 $ (91) $ (64) Average common shares outstanding during the period 699,657 666,360 688,478 666,031 Stock options, incentive and exchangeable shares 834 6,147 859 921 Convertible debt - 5,287 - - ESOP preferred stock - 51,004 - - Adjusted average shares outstanding for the period 700,491 728,798 689,337 666,952 Diluted earnings (loss) per share $(0.40) $ 0.27 $(0.13) $(0.10)