EX-11 6 dex11.htm COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE Prepared by R.R. Donnelley Financial -- COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE
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
                                
Net Income (Loss)
   
$
93
   
$
(101
)
   
$
47
   
$
126
 
Accrued dividends on ESOP Preferred Stock
   
 
—  
   
 
—  
 
   
 
—  
   
 
(12
)
    
  
  
  
Adjusted Net Income (Loss)
   
$
93
   
$
(101
)
   
$
47
   
$
114
 
    
  
  
  
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
   
$
0.13
   
$
(0.14
)
   
$
0.07
   
$
0.17
 
    
  
  
  
II.    Diluted Earnings (Loss) Per Common Share
                                
Net Income (Loss)
   
$
93
   
$
(101
)
   
$
47
   
$
126
 
ESOP expense adjustment, net of tax
   
 
—  
   
 
—  
 
   
 
—  
   
 
(8
)
Interest on convertible debt, net
   
 
13
   
 
—  
 
   
 
—  
   
 
1
 
    
  
  
  
Adjusted Net Income (Loss)
   
$
106
   
$
(101
)
   
$
47
   
$
119
 
    
  
  
  
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
   
$
0.12
   
$
(0.14
)
   
$
0.06
   
$
0.15