Xerox 2007 Annual Report Download - page 136

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QUARTERLY RESULTS OF OPERATIONS (Unaudited)
(in millions, except per-share data)
First
Quarter Second
Quarter Third
Quarter Fourth
Quarter Full Year
2007
Revenues ........................................................ $3,836 $4,208 $4,302 $4,882 $17,228
Costs and Expenses ............................................... 3,507 3,893 3,978 4,412 15,790
Income from Continuing Operations before Income Taxes, Equity
Income, Discontinued Operations and Cumulative Effect of Change
in Accounting Principle .......................................... 329 315 324 470 1,438
Income tax expenses ............................................. 102 76 97 125 400
Equity in net income of unconsolidated affiliates(1) .................. 6 27 27 37 97
Net Income ...................................................... $ 233 $ 266 $ 254 $ 382 $ 1,135
Basic Earnings per Share(2) ........................................ $ 0.25 $ 0.28 $ 0.27 $ 0.41 $ 1.21
Diluted Earnings per Share(2) ...................................... $ 0.24 $ 0.28 $ 0.27 $ 0.41 $ 1.19
2006
Revenues ........................................................ $3,695 $3,977 $3,844 $4,379 $15,895
Costs and Expenses(3) ............................................. 3,487 3,712 3,753 4,135 15,087
Income from Continuing Operations before Income Taxes, Equity
Income, Discontinued Operations and Cumulative Effect of Change
in Accounting Principle .......................................... 208 265 91 244 808
Income tax expenses (benefits)(4) .................................. 47 22 (416) 59 (288)
Equity in net income of unconsolidated affiliates .................... 39 17 29 29 114
Net Income ...................................................... $ 200 $ 260 $ 536 $ 214 $ 1,210
Basic Earnings per Share(2) ........................................ $ 0.20 $ 0.27 $ 0.55 $ 0.22 $ 1.25
Diluted Earnings per Share(2) ...................................... $ 0.20 $ 0.26 $ 0.54 $ 0.22 $ 1.22
(1) The first, third and fourth quarters of 2007 include $23, $5, and $2 of charges, respectively, for our share of Fuji-Xerox
restructuring charges.
(2) The sum of quarterly earnings per share may differ from the full-year amounts due to rounding, or in the case of
diluted earnings per share, because securities that are anti-dilutive in certain quarters may not be anti-dilutive on a
full-year basis
(3) Costs and expenses include restructuring and asset impairment charges of $36, $110 and $239 for the second, third
and fourth quarters of 2006, respectively. In addition, the third quarter 2006 includes $68 for litigation matters
related to probable losses on Brazilian labor-related contingencies (See Note 16).
(4) The first and third quarters of 2006 include $24 and $448 of income tax benefits, respectively, related to the
favorable resolution of certain tax matters from the 1999-2003 IRS audit. The second quarter of 2006 included $46 of
income tax benefits from the resolution of certain tax issues associated with foreign tax audits.
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