Xerox 2003 Annual Report Download

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Annual
Report
2003

Table of contents

  • Page 1
    Annual Report 2003

  • Page 2
    ... on growth. Financial Highlights ($ millions, except EPS) Equipment Sales Post Sale, Finance and Other Revenue Total Revenue Total Cost and Expense Net Income Diluted EPS Operating Cash Flows Cash and Cash Equivalents Debt 2003 $ 4,250 11,451 15,701 15,265 360 0.36 1,879 2,477 11,166 2002 $ 3,970 11...

  • Page 3
    ...of cash from operations, significantly reduced both debt and cost, maintained gross margins and recapitalized the company. Even more importantly, we brought to market an expansive armada of innovative technology and services, gained market share in key segments of our business, grew equipment sales...

  • Page 4
    ... of 30 percent of their document costs and streamlining their processes as well. • In a growing list of marketing companies, our digital printing solutions are enabling our customers to communicate with their customers more effectively. We are helping hundreds of our customers find what up to now...

  • Page 5
    .... Too many organizations focus on the wrong side of information technology - putting too much emphasis on the "technology" and not enough on the "information." With smart document management services, we're helping our customers focus more on the information and ideas captured in documents than on...

  • Page 6
    ... can match: • More than 12,000 Xerox managed services employees currently work on-site in hundreds of customer locations around the world. • Our cadre of 350 senior executives have each accepted personal responsibility for at least one of our major accounts. • Our research labs regularly host...

  • Page 7
    ... growing the fastest - color, digital multifunction, and office services and solutions. Last year, we brought 15 new offerings to the office market - color and black-andwhite, printers and copiers, multifunction and services - at price points that are highly competitive. Our customers approved. We...

  • Page 8
    ... more customers in the way they want while reducing unnecessary costs to Xerox. Although our direct sales force is still one of our crown jewels, it is augmented by an equally effective network of agents, concessionaires, valueadded resellers, retailers and a worldclass TeleWeb operation. Return to...

  • Page 9
    ... us. All of us at Xerox believe our best days are ahead...customers will only strengthen our resolve to execute tomorrow even better than we do today. Our 2004 plan is for ï¬,at revenue with margin and earnings expansion followed by a return to revenue growth, operating margin expansion, and continued...

  • Page 10
    ..., products, solutions and services that customers can depend upon to improve business results. The company's operations are guided by customer-focused and employeecentered core values - such as social responsibility, diversity and quality - augmented by a passion for innovation, speed and...

  • Page 11
    ...to manage work processes, ensure a seamless ï¬,ow between paper and digital environments, share knowledge, personalize communication and create documents - whether they're marks on paper or data in a server - that are smart sources of invaluable information. Xerox's business imperatives are centered...

  • Page 12
    ... smart document management to large corporations, graphic arts customers, quick print centers, and commercial print enterprises. Our high-volume digital production printers and presses, integrated with solutions, enable on-demand printing, short-run book publishing, one-to-one marketing applications...

  • Page 13
    ...copiers, our first entries in this growing market. • Continuous feed printing systems. • FreeFlowâ„¢ software that improves workï¬,ow processes from creation to delivery. Smart business: • Impressions produced on digital color production printers are expected to grow from 14 billion in 2002...

  • Page 14
    ...most competitive in Xerox's history. With Xerox's award-winning multifunction devices, customers manage their multiple document needs with a single device that prints, copies, scans, faxes and emails. • Color systems including the WorkCentre Pro 32/40 and DocuColor® 3535 printer-copier, which use...

  • Page 15
    ..., encourage use of scanning capabilities, and more effectively manage document management assets including equipment, supplies and service contracts. ConAgra Foods is now replacing dozens of standalone copiers and printers with Xerox networked multifunction devices that print, copy, scan, and...

  • Page 16
    ... faced and the effectiveness of our solution. Xerox worked with McGraw-Hill to consolidate its five regional scanning centers, which hosted more than 30 million pages of information for 60,000 active construction sites, into Xerox's centralized imaging center in Hot Springs, Ark. The outsourcing...

  • Page 17
    ...-laden infrastructures. We assess our customers' current operations from small businesses to large commercial print shops, design new work processes using existing equipment, and even provide day-to-day management of document systems, supplies and service. Smart business: • People in offices...

  • Page 18
    ...off of debt issue costs, more useful. Reconciliation to the related GAAP measure is included below. Reconciliation of Non-GAAP measure Per/Share Earnings $ 0.36 Berger Litigation Provision $ 0.17 ($146 million after-tax) Write-off of debt issue costs $ 0.05 ($45 million after-tax) Pro-forma earnings...

  • Page 19
    ... Sheets Consolidated Statements of Cash Flows Consolidated Statements of Common Shareholders' Equity Notes to the Consolidated Financial Statements Report of Management Report of Independent Auditors Quarterly Results of Operations Five Years in Review Officers Directors Social Responsibility 17

  • Page 20
    ... digital and color offerings. We operate in competitive markets and our customers demand improved solutions, such as the ability to print offset quality color documents on demand; improved product functionality, such as the ability to print, copy, fax and scan from a single device; and lower prices...

  • Page 21
    ... millions) Sales Less: Supplies, paper and other sales Equipment Sales Service, outsourcing and rentals Add: Supplies, paper and other sales Post sale and other revenue by growth in our digital revenues, driven by increased usage of color products and monochrome multifunction systems. 2002 Finance...

  • Page 22
    ...minimum monthly payment for 1) the equipment, 2) the associated services and other executory costs, 3) the financing element and 4) frequently supplies. When separate prices are listed in multiple element customer contracts, such prices may not be representative of the fair values of those elements...

  • Page 23
    ... of fair value at the end of the lease term and are established with due consideration to forecasted supply and demand for our various products, product retirement and future product launch plans, end of lease customer behavior, remanufacturing strategies, used equipment markets, if any, competition...

  • Page 24
    ..., based on a comparison to the net book value of such asset or group of assets. The determination of fair value includes inherent uncertainties, such as the impact of competition on future value. Our primary methodology for determining fair value is based on a discounted cash ï¬,ow model. We believe...

  • Page 25
    ... December 31, 2003, 2002 and 2001, respectively. Pension cost is included in several income statement components based on the related underlying employee costs. Pension and post-retirement benefit plan assumptions are included in Note 12 to the Consolidated Financial Statements. Holding all other...

  • Page 26
    ... Pro digital multifunction systems, DocuColor multifunction products, color laser, solid ink and monochrome laser desktop printers, digital and light-lens copiers and facsimile products. The DMO segment includes our operations in Latin America, the Middle East, India, Eurasia, Russia and Africa...

  • Page 27
    ... of monochrome multifunction/ copier systems. The CopyCentre, WorkCentre and WorkCentre Pro systems, which were launched in the second quarter 2003, are intended to expand our market reach and include new entry-level configurations at more competitive prices. 2002 equipment sales declined 5 percent...

  • Page 28
    ... our supplies sales declined following our exit from this business. In addition, 2002 included benefits of $33 mil- lion related to the ESOP expense adjustment and $50 million of profit related to a licensing agreement. These amounts were partially offset by the write-off of internal use software...

  • Page 29
    ...due to DocuColor iGen3 ongoing engineering costs and the remainder due to product mix as we increased our penetration of the digital light production market. In 2003, manufacturing productivity more than offset the impact of planned lower prices. 2003 service, outsourcing and rentals margin declined...

  • Page 30
    ...: In 2003, we recorded a $239 million provision for litigation relating to the court approved settlement of the Berger v. Retirement Income Guarantee Plan (RIGP) litigation which is discussed in more detail in Note 15 to the Consolidated Financial Statements. Other Expenses, Net: Other expenses, net...

  • Page 31
    ... and equipment sales. In addition, the 2003 amount primarily included losses related to the sale of XES subsidiaries in France and Germany, which was partially offset by a gain on the sale of our investment in Xerox South Africa. The 2002 amount included the sales of our leasing business in Italy...

  • Page 32
    ... 31, 2003, as reported in our Consolidated Statements of Cash Flows in the accompanying Consolidated Financial Statements: ($ in millions) Net cash provided by operating activities Net cash provided by investing activities Net cash used in financing activities Effect of exchange rate changes on...

  • Page 33
    ...restricted cash related to former reinsurance obligations associated with our discontinued operations, $35 million of aggregate cash proceeds from the divestiture of our investment in Xerox South Africa, XES France and Germany and other minor investments, partially offset by capital and internal use...

  • Page 34
    ... receivables it supports, eliminates certain significant refinancing, pricing and duration risks associated with our debt. We are currently raising funds to support our finance leasing through third-party vendor financing arrangements, cash generated from operations and capital markets offerings...

  • Page 35
    ... common shares issued. 2003 Credit Facility: Xerox Corporation is the only borrower of the term loan. The revolving credit facility is available, without sub-limit, to Xerox Corporation and certain of its foreign subsidiaries, including Xerox Canada Capital Limited, Xerox Capital (Europe) plc...

  • Page 36
    ... our Senior Notes due 2009, are guaranteed by our wholly-owned subsidiaries Intelligent Electronics, Inc. and Xerox International Joint Marketing, Inc. Financial information of these guarantors is included in Note 19 to the Consolidated Financial Statements. The senior notes also contain negative...

  • Page 37
    ... capital lease obligations (1) Minimum operating lease commitments (2) Liabilities to subsidiary trusts issuing preferred securities (3) Total contractual cash obligations $4,194 235 1,067 $5,496 (1) Refer to Note 10 to our Consolidated Financial Statements for additional information related...

  • Page 38
    ... an information management contract with Electronic Data Systems Corp. to provide services to us for global mainframe system processing, application maintenance and enhancements, desktop services and helpdesk support, voice and data network management, and server management. In 2001, we extended the...

  • Page 39
    ...change the fair values of such financial instruments by $297 million. Forward-Looking Cautionary Statements: This Annual Report contains forward-looking statements and information relating to Xerox that are based on our beliefs, as well as assumptions made by and information currently available to...

  • Page 40
    ... Cost of sales Cost of service, outsourcing and rentals Equipment financing interest Research and development expenses Selling, administrative and general expenses Restructuring and asset impairment charges Gain on sale of half of interest in Fuji Xerox Gain on affiliate's sale of stock Provision...

  • Page 41
    ...025 (1,871) $25,550 Assets Cash and cash equivalents Accounts receivable, net Billed portion of finance receivables, net Finance receivables, net Inventories Other current assets Total Current Assets Finance receivables due after one year, net Equipment on operating leases, net Land, buildings and...

  • Page 42
    ...) in accounts payable and accrued compensation Net change in income tax assets and liabilities Decrease in other current and long-term liabilities Early termination of derivative contracts Other, net Net cash provided by operating activities Cash Flows from Investing Activities: Cost of additions...

  • Page 43
    ...(2) Minimum pension liability, net of tax Unrealized gain on securities, net of tax Unrealized gains on cash ï¬,ow hedges, net of tax Comprehensive income Stock option and incentive plans, net Convertible securities Series B convertible preferred stock dividends ($10.94 per share), net of tax Equity...

  • Page 44
    ... global document market, developing, manufacturing, marketing, servicing and financing a complete range of document equipment, software, solutions and services. Liquidity, Financial Flexibility and Funding Plans: We manage our worldwide liquidity using internal cash management practices which are...

  • Page 45
    ... and obsolescence of equipment on operating leases Depreciation of buildings and equipment Amortization of capitalized software Pension benefits - net periodic benefit cost Other post-retirement benefits - net periodic benefit cost Deferred tax asset valuation allowance provisions $176 35 224...

  • Page 46
    ... to an exit or disposal plan. Examples of costs covered by the standard include lease termination costs and certain employee severance costs that are associated with a restructuring, plant closing, or other exit or disposal activity. We adopted SFAS No. 146 in the fourth quarter of 2002. Refer to...

  • Page 47
    ...: We sell most of our products and services under bundled contract arrangements, which contain multiple deliverable elements. These contractual lease arrangements typically include equipment, service, supplies and financing components for which the customer pays a single negotiated price for all...

  • Page 48
    ... of fair value at the end of the lease term. Our residual values are established with due consideration to forecasted supply and demand for our various products, product retirement and future product launch plans, end of lease customer behavior, remanufacturing strategies, used equipment markets, if...

  • Page 49
    ...lease term. Returned equipment is recorded at the lower of remaining net book value or salvage value. Salvage value consists of the estimated market value (generally determined based on replacement cost) of the salvageable component parts, which are expected to be used in the remanufacturing process...

  • Page 50
    ... requires management to make estimates of these cash ï¬,ows related to long-lived assets, as well as other fair value determinations. Research and Development Expenses: Research and development costs are expensed as incurred. Pension and Post-Retirement Benefit Obligations: We sponsor pension plans...

  • Page 51
    ... engaged in a series of restructuring programs related to downsizing our employee base, exiting certain businesses, outsourcing certain internal functions and engaging in other actions designed to reduce our cost structure and improve productivity. Management continues to evaluate the business and...

  • Page 52
    ... expected restructuring charges of $30 related to initiatives identified to date but not yet recognized in the Consolidated Financial Statements. The expected restructuring provisions primarily relate to additional pension settlement costs. Major Cost Reporting: Net Cumulative amount Cumulative...

  • Page 53
    ...") to Check Technology Canada LTD and Check Technology Corporation for $16. The transaction was essentially break-even. Delphax designs, manufactures and supplies high-speed electron beam imaging digital printing systems and related parts, supplies and services. Nordic Leasing Business: In April...

  • Page 54
    ...we may become obligated to repurchase inventory that remains unused for more than 180 days, becomes obsolete or upon termination of the supply agreement. Our remaining manufacturing operations are primarily located in Rochester, NY for our high end production products and consumables and Wilsonville...

  • Page 55
    ...we received loans from GE secured by lease receivables in Germany. As part of the transaction we transferred leasing employees to a GE entity which will also finance certain new leasing business in the future. We currently consolidate this joint venture since we retain substantive rights related to...

  • Page 56
    ... contract include support of global mainframe system processing, application maintenance, desktop and helpdesk support, voice and data network management and server management. There are no minimum payments due EDS under the contract. Payments to EDS, which are recorded in selling, administrative...

  • Page 57
    ... patent portfolio in exchange for access to our patent portfolio. In 2003, 2002 and 2001, we earned royalty revenues under this agreement of $110, $99 and $101, respectively. We also have arrangements with Fuji Xerox whereby we purchase inventory from and sell inventory to Fuji Xerox. Pricing of the...

  • Page 58
    ... WorkCentre Pro digital multifunction systems, DocuColor color multifunction products, color laser, solid ink and monochrome laser desktop printers, digital and light-lens copiers and facsimile products. These products are sold through direct and indirect sales channels in North America and Europe...

  • Page 59
    ... 31, 2003 and 2002 were as follows: 2003 Other current assets Deferred taxes Restricted cash Prepaid expenses Financial derivative instruments Other Total Other current liabilities Income taxes payable Other taxes payable Interest payable Restructuring reserves Due to Fuji Xerox Financial derivative...

  • Page 60
    ...shares of this instrument each year through 2017. Based on current cash ï¬,ow projections, we expect to fully recover the $387 remaining balance of this instrument. Internal Use Software: Capitalized direct costs associated with developing, purchasing or otherwise acquiring software for internal use...

  • Page 61
    ... $ 942 93 525 1,560 $ 2002 784 84 523 1,391 U.S. Operations 2003 $ 2002 883 196 315 15 25 25 626 226 - 50 - 19 255 556 3,440 40 Xerox Capital (Europe) plc: Euros due 2003-2008 Japanese yen due 2003-2005 U.S. dollars due 2003-2008 Subtotal Other International Operations: Pound Sterling secured...

  • Page 62
    ... made utilizing certain amounts that are otherwise available to make restricted payments and investments; for this purpose, "capital expenditures" generally means the amounts included on our statement of cash ï¬,ows as "additions to land, buildings and equipment," plus any capital lease obligations...

  • Page 63
    ...with our Senior Notes due 2009 which were issued in January 2002, are guaranteed by our wholly-owned subsidiaries Intelligent Electronics, Inc. and Xerox International Joint Marketing, Inc. 2009 Senior Notes: In September 2003, we completed our offer to exchange the â,¬225 million and $600 aggregate...

  • Page 64
    ...interest rate swap agreements, foreign currency swap agreements, cross currency interest rate swap agreements, forward exchange contracts, purchased foreign currency options and purchased interest rate collars, to manage interest rate and foreign currency exposures. The fair market values of all our...

  • Page 65
    ... variable/receive fixed interest rate swaps with notional amounts of $700 and $400 associated with the Senior Notes due in 2010 and 2013, respectively, were designated and accounted for as fair value hedges. During 2002, pay variable/receive fixed interest rate swaps with a notional amount of $600...

  • Page 66
    ... to the Consolidated Statements of Income during 2003 or 2002 for our designated cash ï¬,ow hedges and all components of each derivatives gain or loss are included in the assessment of hedge effectiveness. Note 12 - Employee Benefit Plans We sponsor numerous pension and other post-retirement bene...

  • Page 67
    ..., January 1 Service cost Interest cost Plan participants' contributions Plan amendments Actuarial loss Currency exchange rate changes Divestitures Curtailments Special termination benefits Benefits paid/settlements Benefit obligation, December 31 Change in Plan Assets Fair value of plan assets...

  • Page 68
    ... actual return on plan assets caption. To the extent that investment results relate to TRA, such results are charged directly to these accounts as a component of interest cost. Plan Assets Current Allocation and Investment Targets As of the 2003 and 2002 measurement dates, the global pension plan...

  • Page 69
    ... handle expected cash requirements for benefit payments and will vary throughout the year. The expected long-term rate of return on the U.S. pension assets is 8.75 percent. Xerox Corporation employs a total return investment approach whereby a mix of equities and fixed income investments are used...

  • Page 70
    ... The dividends are payable in cash or additional Convertible Preferred shares, or in a combination thereof. When the ESOP was established, the ESOP borrowed the purchase price from a group of lenders. The ESOP debt was included in our Consolidated Balance Sheet as debt because we guaranteed the ESOP...

  • Page 71
    ...expense associated with the ESOP; however, it resulted in a decrease in interest expense in 2002. The ESOP required pre-determined debt service obligations for each period to be funded by a combination of dividends and employer contributions over the term of the plan. The dividends do not affect our...

  • Page 72
    of dividends on Series B Convertible Preferred Stock and state tax benefits. Such benefits were partially offset by tax expense for audit and other tax return adjustments, as well as recurring losses in certain jurisdictions where we continue to maintain deferred tax asset valuation allowances. ...

  • Page 73
    ... of the respective dispositions. As a result of IRS regulations issued in 2002, some portion of the losses may now be claimed subject to certain limitations. We have filed amended tax returns for 1995 through 1998 reporting $1.2 billion of additional capital losses. As of December 31, 2003, we have...

  • Page 74
    ... real estate leases. In certain instances, these lease guarantees may remain in effect subsequent to the sale of the subsidiary. Furthermore, in certain contracts we have agreed to indemnify various service providers, trustees and bank agents from any third party claims related to their performance...

  • Page 75
    ... warranties. Our arrangements typically involve a separate full service maintenance agreement with the customer. The agreements generally extend over a period equivalent to the lease term or the expected useful life under a cash sale. The service agreements involve the payment of fees in return...

  • Page 76
    ...loss that might result from an adverse judgment or a settlement of this matter. Litigation Against the Company: In re Xerox Corporation Securities Litigation: A consolidated securities law action (consisting of 17 cases) is pending in the United States District Court for the District of Connecticut...

  • Page 77
    ...RIGP: A class was certified in an action originally filed in the United States District Court for the Southern District of Illinois on July 25, 2000 against the Company's Retirement Income Guarantee Plan ("RIGP"). The RIGP represents the primary U.S. pension plan for salaried employees. Plaintiffs...

  • Page 78
    ... an adverse judgment or a settlement of this matter. Florida State Board of Administration, et al. v. Xerox Corporation, et al.: A securities law action brought by four institutional investors, namely the Florida State Board of Administration, the Teachers' Retirement System of Louisiana, Franklin...

  • Page 79
    ... Amended Complaint. The defendants include Xerox and a number of other corporate defendants who are accused of providing material assistance to the apartheid government in South Africa from 1948 to 1994, by engaging in commerce in South Africa and with the South African government and by employing...

  • Page 80
    ...misappropriated software contributed by ePS that was intended to support electronic paper based products. The amended complaint includes claims of breach of fiduciary duty, promissory estoppel, breach of contract, breach of implied covenant of good faith and fair dealing, copyright infringement and...

  • Page 81
    ... of contract and breach of fiduciary duty against KPMG. Additionally, plaintiffs claimed that KPMG is liable to Xerox for contribution, based on KPMG's share of the responsibility for any injuries or damages for which Xerox is held liable to plaintiffs in related pending securities class action...

  • Page 82
    ...to the Board of Directors and the SEC. On June 17, 2003, the Board of Directors reported to the SEC the decisions taken as a result of the report. We have a comprehensive ongoing program addressing continued progress in enterprise risk management as well as our process and systems management. We are...

  • Page 83
    ... appear to have been improperly recorded as part of an effort to sell supplies outside of its authorized territory have been investigated and a report of the results has been received by the Board of Directors of the South African affiliate. Disciplinary actions have been taken, and the adjustments...

  • Page 84
    ...from one to three years. Compensation expense recorded for restricted grants was $15, $17 and $15 in 2003, 2002 and 2001, respectively. SARs permit the employee to receive cash equal to the excess of the market price at date of exercise over the market price at the date of grant. SARs generally vest...

  • Page 85
    ... would be anti-dilutive. When computing diluted EPS, we are required to assume conversion of the ESOP preferred shares into common stock under certain circumstances. The conversion guarantees that each ESOP preferred share be converted into shares worth a minimum value of $78.25. As long as our...

  • Page 86
    ... due 2018 - Other convertible debt 1,992 Total 159,074 2002 - - 2001 78,473 - Note 19 - Financial Statements of Subsidiary Guarantors The Senior Notes due 2009, 2010 and 2013 are jointly and severally guaranteed by Intelligent Electronics, Inc. and Xerox International Joint Marketing, Inc. (the...

  • Page 87
    ... Cost and Expenses Cost of sales Cost of service, outsourcing and rentals Equipment financing interest Intercompany cost of sales Research and development expenses Selling, administrative and general expenses Restructuring and asset impairment charges Gain on affiliate's sale of stock Provision...

  • Page 88
    ... Assets Cash and cash equivalents Accounts receivable, net Billed portion of finance receivables, net Finance receivables, net Inventories Other current assets Total Current Assets Finance receivables due after one year, net Equipment on operating leases, net Land, buildings and equipment, net...

  • Page 89
    ... service, outsourcing and rentals Equipment financing interest Intercompany cost of sales Research and development expenses Selling, administrative and general expenses Restructuring and asset impairment charges Other expenses (income), net Total Cost and Expenses (Loss) Income before Income Taxes...

  • Page 90
    ... Assets Cash and cash equivalents Accounts receivable, net Billed portion of finance receivables, net Finance receivables, net Inventories Other current assets Total Current Assets Finance receivables due after one year, net Equipment on operating leases, net Land, buildings and equipment, net...

  • Page 91
    ... Statements of Cash Flows For the Year Ended December 31, 2002 Parent Company Net cash provided by (used in) operating activities Net cash (used in) provided by investing activities Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Decrease in cash...

  • Page 92
    ... Costs and Expenses Cost of sales Cost of service, outsourcing and rentals Equipment financing interest Intercompany cost of sales Research and development expenses Selling, administrative and general expenses Restructuring and asset impairment charges Gain on sale of half of interest in Fuji Xerox...

  • Page 93
    ... ethics policy that is continuously communicated to all employees, we have established our intent to adhere to the highest standards of ethical conduct in all of our business activities. We monitor our internal control structure with direct management reviews and a comprehensive program of internal...

  • Page 94
    ... of operations presented herein have been modified to reï¬,ect the adoption of FIN 46R (as described in Note 1 to the Consolidated Financial Statements). As such, certain amounts herein are different from those originally reported in our Quarterly Reports on Form 10-Q as filed with the SEC. There...

  • Page 95
    ...year-end Book value per common share Year-end common stock market price Employees at year-end Gross margin Sales gross margin Service, outsourcing, and rentals gross margin Finance gross margin Working capital Current ratio Cost of additions to land, buildings and equipment Depreciation on buildings...

  • Page 96
    ..., Xerox Europe Lance H. Davis Vice President and Chief Accounting Officer James H. Lesko Assistant Treasurer and Director, Global Risk Management Vice President President, e-Business and TeleWeb Corporate Operations Group Rafik O. Loutfy Vice President Worldwide Manufacturing and Supply Chain...

  • Page 97
    ..., Brown University Chairman Robert Capital Management LLC New York, New York Senior Managing Director Lazard Freres & Co., LLC New York, New York Of Counsel Akin, Gump, Strauss, Hauer & Feld, LLP Attorneys-at-Law, Washington, DC Yotaro Kobayashi Chairman of the Board Fuji Xerox Co., Ltd. Tokyo...

  • Page 98
    ...fied manufacturing processes to cut air emissions, non-hazardous and hazardous waste, and water and energy use. For instance, non-hazardous waste recycling rose to 92 percent in 2002. Corporate Governance Xerox continues to work diligently to uphold one of our core values: We behave responsibly...

  • Page 99
    ...®, DocuShare®, DocuTech®, FlowPort®, FreeFlow, iGen3®, New Business of Printing, Phaser®, and WorkCentre® are trademarks of Xerox Corporation in the U.S. and/or other countries. DocuColor® is used under license. Design: Arnold Saks Associates CEO portrait: David Burnett, Contact Press Images

  • Page 100
    Xerox Corporation 800 Long Ridge Road PO Box 1600 Stamford, CT 06904 www.xerox.com 2980-AR-03