Xerox 2003 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2003 Xerox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

83
Options outstanding and exercisable at
December 31, 2003 were as follows (stock options
in thousands):
Options Outstanding Options Exercisable
Weighted
Range of Number Average Remaining Weighted Average Number Weighted Average
Exercise Prices Outstanding Contractual Life Exercise Price Exercisable Exercise Price
$ 4.75 to $ 6.98 11,229 6.56 $ 4.85 6,700 $ 4.80
7.13 to 10.69 41,275 8.11 9.02 8,418 9.20
10.70 to 15.27 561 7.33 12.56 322 13.77
16.91 to 22.88 13,218 6.00 21.77 11,782 21.76
25.38 to 36.70 13,388 2.76 31.64 13,263 31.70
41.72 to 60.95 18,168 3.64 52.55 18,167 52.55
97,839 6.08 $21.46 58,652 $29.76
Note 18 – Earnings Per Share
Basic earnings per share is computed by dividing
income available to common shareholders (the
numerator) by the weighted-average number of com-
mon shares outstanding (the denominator) for the
period. Diluted earnings per share assumes that any
dilutive convertible preferred shares, convertible sub-
ordinated debentures, and convertible securities out-
standing were converted, with related preferred stock
dividend requirements and outstanding common
shares adjusted accordingly. It also assumes that out-
standing common shares were increased by shares
issuable upon exercise of those stock options for
which market price exceeds the exercise price, less
shares which could have been purchased by us with
the related proceeds. In periods of losses, diluted loss
per share is computed on the same basis as basic loss
per share as the inclusion of any other potential
shares outstanding 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 con-
version guarantees that each ESOP preferred share be
converted into shares worth a minimum value of
$78.25. As long as our common stock price is above
$13.04 per share, the conversion ratio is 6 to 1. As our
share price falls below this amount, the conversion
ratio increases.
The detail of the computation of basic and diluted
EPS follows (shares in thousands):