Xerox 2005 Annual Report Download - page 97

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Xerox Corporation
89
At December 31, 2005, the aggregate intrinsic value of stock
options outstanding and stock options exercisable was $247 and
$204, respectively.
The following table provides information relating to stock option
exercises for the three years ended December 31, 2005:
(in millions) 2005 2004 2003
Total Intrinsic Value $36 $67 $14
Cash Received 41 67 21
Tax Benefit Realized for
Tax Deductions 12 23 5
Treasury Stock: In October 2005, the Boardof Directors authorized
the Company to repurchase up to $500 of common stock. The
stock is expected to be repurchased through the period ending
October 31, 2006, primarily through open-market purchases.
Repurchases aremade in compliance with the Securities and
Exchange Commission’s Rule 10b-18, and are subject to market
conditions as well as applicable legal and other considerations.
During the fourth quarter of 2005, we repurchased 30,502,200
shares at an aggregate cost of $433, including associated fees
of $1. These treasury stock shares may be cancelled upon the
Board of Directors’ approval. In 2005, 16,585,300 repurchased
shares were cancelled and were recorded as a reduction to both
common stock of $17 and additional paid-in-capital of $213.
Note 19 – Research, Development and
Engineering (“R,D&E”)
R,D&E was $943, $914 and $962 for the three years ended
December 31, 2005, respectively. Research and development
(“R&D”) costs were$755 in 2005, $760 in 2004 and $868 in
2003. Sustaining engineering costs are incurred with respect to
ongoing product improvements or environmental compliance
after initial product launch. Our sustaining engineering costs were
$188, $154 and $94 for the three years ended December 31,
2005, respectively.
Xerox Annual Report 2005
Options outstanding and exercisable at December 31, 2005 were as follows (stock options in thousands):
Options Outstanding Options Exercisable
Weighted Weighted
Average Weighted Average Weighted
Remaining Average Remaining Average
Number Contractual Exercise Number Contractual Exercise
Range of Exercise Prices Outstanding Life Price Exercisable Life Price
$4.75 to $6.98 6,487 4.96 $ 4.87 5,939 4.90 $ 4.85
7.13 to 10.69 31,078 6.35 9.12 25,789 6.27 9.29
10.70 to 15.27 11,119 5.97 13.66 7,577 5.96 13.65
16.91 to 22.88 12,188 4.00 21.77 12,188 4.00 21.77
25.38 to 32.16 3,826 3.89 26.37 3,826 3.89 26.37
42.83 to 60.95 11,609 2.38 55.79 11,609 2.38 55.79
76,307 5.08 19.40 66,928 4.89 20.70