Xerox 2002 Annual Report Download - page 88

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A reconciliation of the numerators and denominators of the basic and diluted EPS calculation follows:
2002 2001 2000
Per- Per- Per-
Share (Loss) Share (Loss) Share
(Shares in thousands) Income Shares Amount Income Shares Amount Income Shares Amount
Basic EPS
Net income (loss) before
cumulative effect of
change in accounting
principle $154 $(92) $(273)
Accrued dividends on
preferred stock, net (73) (12) (46)
Basic EPS before
cumulative effect of
change in accounting
principle $ 81 731,280 $ 0.11 $(104) 704,181 $(0.15) $(319) 667,581 $(0.48)
Cumulative effect of change
in accounting principle (63) 731,280 (0.09) (2) 704,181 – – 667,581 –
Basic EPS $ 18 731,280 $ 0.02 $(106) 704,181 $(0.15) $(319) 667,581 $(0.48)
Diluted EPS before
cumulative effect of
change in accounting
principle $ 81 807,144 $ 0.10 $(104) 704,181 $(0.15) $(319) 667,581 $(0.48)
Cumulative effect of
change in accounting
principle (63) 807,144 (0.08) (2) 704,181 – – 667,581 –
Diluted EPS $ 18 807,144 $ 0.02 $(106) 704,181 $(0.15) $(319) 667,581 $(0.48)
A reconciliation of the individual weighted average
shares outstanding was as follows:
2002 2001 2000
Weighted – average common
shares outstanding:
Basic 731,280 704,181 667,581
Stock options 5,401 ––
ESOP Preferred stock 70,463 ––
Diluted 807,144 704,181 667,581
The 2002, 2001 and 2000 computation of diluted
loss per share did not include the effects of 63 million,
69 million and 58 million issued and outstanding stock
options, respectively, because either: i) their respective
exercise prices were greater than the corresponding
market value per share of our common stock or ii)
where the respective exercise prices were less than the
corresponding market value per share of our common
stock, the inclusion of such options would have been
anti-dilutive.
In addition, the following securities that could poten-
tially dilute basic EPS in the future were not included in
the computation of diluted EPS because to do so would
have been anti-dilutive for 2002, 2001 and 2000 (in
thousands of shares):
2002 2001 2000
Convertible preferred stock –78,473 50,605
Mandatorily redeemable
preferred securities – Trust II 113,426 113,426 –
3.625% Convertible
subordinated debentures 7,129 7,129 7,903
Other convertible debt 1,992 1,992 5,287
Total 122,547 201,020 63,795
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