Xerox 2003 Annual Report Download - page 95

93
Five Years in Review
(Dollars in millions, except per-share data) 2003 2002 2001(2) 2000 1999
Per-Share Data(1)
Earnings (Loss)
Basic $ 0.38 $ 0.02 $ (0.15) $ (0.48) $ 1.20
Diluted 0.36 0.02 (0.15) (0.48) 1.17
Common stock dividends –– 0.05 0.65 0.80
Operations
Revenues $15,701 $15,849 $17,008 $ 18,751 $18,995
Sales 6,970 6,752 7,443 8,839 8,967
Service, outsourcing, and rentals 7,734 8,097 8,436 8,750 8,853
Finance Income 997 1,000 1,129 1,162 1,175
Research and development expenses 868 917 997 1,064 1,020
Selling, administrative and general expenses 4,249 4,437 4,728 5,518 5,204
Net income (loss)(1) 360 91 (94) (273) 844
Financial Position
Cash and cash equivalents $ 2,477 $ 2,887 $ 3,990 $ 1,750 $ 132
Accounts and finance receivables, net 10,972 11,077 11,574 13,067 13,487
Inventories 1,152 1,231 1,364 1,983 2,344
Equipment on operating leases, net 364 450 804 1,266 1,423
Land, buildings and equipment, net 1,827 1,757 1,999 2,527 2,458
Investment in discontinued operations 449 728 749 534 1,130
Total assets 24,591 25,550 27,746 28,291 27,841
Consolidated capitalization
Short-term debt and current portion of long-term debt 4,236 4,377 6,637 3,080 4,626
Long-term debt 6,930 9,794 10,107 15,557 11,521
Total debt 11,166 14,171 16,744 18,637 16,147
Minorities’ interests in equity of subsidiaries 102 73 73 87 75
Obligation for equity put options –––32 –
Liabilities to subsidiary trusts issuing preferred securities 1,809 1,793 1,787 721 719
Series B convertible preferred stock 499 508 470 426 370
Series C mandatory convertible preferred stock 889 ––– –
Common shareholders’ equity 3,291 1,893 1,797 1,801 2,953
Total capitalization $ 17,756 $18,438 $20,871 $ 21,704 $20,264
Selected Data and Ratios
Common shareholders of record at year-end 56,326 57,300 59,830 59,879 55,766
Book value per common share $ 4.15 $ 2.56 $ 2.49 $ 2.68 $ 4.42
Year-end common stock market price $ 13.80 $ 8.05 $ 10.42 $ 4.63 $ 22.69
Employees at year-end 61,100 67,800 78,900 91,500 93,600
Gross margin 42.0% 42.4% 38.2% 37.4% 42.3%
Sales gross margin 36.4% 37.3% 30.5% 31.2% 37.2%
Service, outsourcing, and rentals gross margin 44.3% 44.5% 42.2% 41.1% 44.7%
Finance gross margin 63.7% 59.9% 59.5% 57.1% 63.0%
Working capital $ 2,766 $ 3,242 $ 2,340 $ 4,928 $ 2,965
Current ratio 1.4 1.4 1.2 1.8 1.3
Cost of additions to land, buildings and equipment $ 197 $ 146 $ 219 $ 452 $ 594
Depreciation on buildings and equipment $ 299 $ 341 $ 402 $ 417 $ 416
(1) Net income (loss), as well as Basic and Diluted Earnings per Share for the years ended December 31, 2003 and 2002 exclude the effect of amortization of good-
will in accordance with the adoption of Statement of Financial Accounting Standards No. 142 “Goodwill and Other Intangible Assets.” For additional information
regarding the adoption of this standard and its effects on Income from continuing operations, Net income (loss) and Earnings (Loss) per share, refer to Note 1 to
the Consolidated Financial Statements under the heading “ New Accounting Standards and Accounting Changes – Goodwill and Other Intangible Assets.”
(2) In March 2001, we sold half of our ownership interest in Fuji Xerox to Fuji Photo Film Co. Ltd. for $1.3 billion in cash. In connection with the sale, we recorded a
pre-tax gain of $773. As a result, our ownership percentage decreased from 50 percent to 25 percent. Refer to Note 3 to the Consolidated Financial Statements
under the caption “Fuji Xerox Interest” for further information.