Xerox 2003 Annual Report Download - page 86

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84
2003 2002 2001
Basic Earnings per common share:
Income before cumulative effect of change in accounting principle $ 360 $ 154 $ (92)
Accrued dividends on:
Series C Mandatory Convertible Preferred Stock (30) ––
Series B Convertible Preferred Stock, net (41) (73) (12)
Adjusted income before cumulative effect of change in accounting principle 289 81 (104)
Cumulative effect of change in accounting principle –(63) (2)
Net income available to common shareholders $ 289 $ 18 $ (106)
Weighted average common shares outstanding 769,032 731,280 704,181
Basic earnings per share:
Before cumulative effect of change in accounting principle $0.38 $ 0.11 $(0.15)
Cumulative effect of change in accounting principle –(0.09) –
Basic earnings per share $0.38 $ 0.02 $(0.15)
Diluted Earnings per common share:
Income before cumulative effect of change in accounting principle $ 360 $ 154 $ (92)
ESOP expense adjustment, net (35) (73) (12)
Accrued dividends on Series C Mandatory Convertible Preferred Stock (30) ––
Adjusted income before cumulative effect of change in accounting principle 295 81 (104)
Cumulative effect of change in accounting principle –(63) (2)
Adjusted net income available to common shareholders $ 295 $ 18 $ (106)
Weighted Average Common Shares Outstanding 769,032 731,280 704,181
Common shares issuable with respect to:
Stock options 8,273 5,401 –
Series B Convertible Preferred Stock 51,082 70,463 –
Adjusted Weighted Average Shares Outstanding 828,387 807,144 704,181
Diluted earnings per share:
Before cumulative effect of change in accounting principle $0.36 $ 0.10 $(0.15)
Cumulative effect of change in accounting principle –(0.08) –
Diluted earnings per share $0.36 $ 0.02 $(0.15)
The 2003 and 2002 computation of diluted earn-
ings per share did not include the effects of 66 million
and 63 million stock options, respectively, because
their respective exercise prices were greater than the
corresponding market value per share of our common
stock. The 2001 computation of diluted loss per share
did not include 69 million stock options as the inclu-
sion of the options would have been antidilutive.
In addition, the following securities that could
potentially dilute basic EPS in the future were not
included in the computation of diluted EPS because to
do so would have been anti-dilutive (in thousands of
shares):
2003 2002 2001
Series B Convertible
Preferred Stock –– 78,473
Series C Mandatory Convertible
Preferred Stock 43,656 ––
Liability to subsidiary
trust issuing preferred
securities–Trust II 113,426 113,426 113,426
Convertible subordinated
debentures due 2018 –7,129 7,129
Other convertible debt 1,992 1,992 1,992
Total 159,074 122,547 201,020
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
“Guarantor Subsidiaries”), each of which is wholly-
owned by Xerox Corporation (the “Parent Company”).
The following supplemental financial information
sets forth, on a condensed consolidating basis, the
balance sheets, statements of income and statements
of cash flows for the Parent Company, the Guarantor
Subsidiaries, the non-guarantor subsidiaries and total
consolidated Xerox Corporation and subsidiaries as of
December 31, 2003 and December 31, 2002 and for the
years ended December 31, 2003, 2002, and 2001.