Xerox 2009 Annual Report Download

Download and view the complete annual report

Please find the complete 2009 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 96

  • 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

2009 Annual Report

Table of contents

  • Page 1
    2009 Annual Report

  • Page 2
    ...bring new challenges every day to businesses of all sizes. No one understands this better than Xerox. Documents and information are at the core of every business, no matter how large or small. We provide the technologies and services our clients need to manage documents, data and work processes more...

  • Page 3
    Financial Overview (in millions, except EPS) 2009 Total revenue Equipment sales Post-sale revenue Net income - Xerox Adjusted net income* - Xerox Diluted earnings per share Adjusted earnings per share* Net cash provided by operating activities Adjusted cash provided by operating activities* $ 15,...

  • Page 4
    ... 2009 was a challenging year for businesses around the world. Xerox was no exception. As the recession took its toll, customers pulled back from making new investments in technology, used their current technology less and sought to reduce spending wherever they could. As a consequence, total revenue...

  • Page 5
    ...so too is our distribution. Xerox boasts the broadest and deepest global sales network in our industry, including direct sales, agents and concessionaires, value-added resellers and teleWeb sales. During 2009, we continued to expand our reach. Most notable was the acquisition of ComDoc, Inc., one of...

  • Page 6
    ...software and outsourcing that relate to workflow in a business. For example: Through our enterprise print services, we help customers save up to 30 percent on their document costs by managing all the devices in their workplaces - regardless of manufacturer - and by handling the supplies, maintenance...

  • Page 7
    ... hard copies, converting paper to digital, distributing forms, processing payments and so on. The same is true in many other facets of our daily lives - mortgage applications, credit card processing, benefits forms, insurance claims, and on and on. We know how to apply document software, such...

  • Page 8
    ... free cash flow4, which is expected to exceed $2 billion per year or more than 8 percent of annual revenue. • Strengthening our annuity-based business model. Through multi-year service contracts for BPO and document management, Xerox's recurring revenue will represent 80 percent of total revenue...

  • Page 9
    ...: their real business. It's a powerful statement and one that defines and differentiates our new company. Xerox is now a $22 billion firm that is the world's leading global enterprise for business process and document management. With our strong leadership in document technology, services and BPO...

  • Page 10
    ...ficer Xerox Corporation Norwalk, CT 3. Robert A. McDonaldA, B Chairman, President and Chief Executive Officer The Procter & Gamble Company Cincinnati, OH 4. Ann N. ReeseC, D Executive Director Center for Adoption Policy Rye, NY 5. William Curt HunterA, C Dean, Tippie College of Business University...

  • Page 11

  • Page 12
    ... of document systems and services for businesses of any size. This includes printers, multifunction devices, production publishing systems, managed print services ("MPS") and related software. We also offer support and supplies, such as toner, paper and ink, as part of our document technology...

  • Page 13
    ... color growth. • We continue to expand our Document Management Technology software and solutions to optimize the capabilities of our products and streamline customers' processes. • We will utilize our intellectual property and technology to enhance ACS's BPO solutions. Optimizing Productivity...

  • Page 14
    ... clients worldwide in areas that include finance and accounting services, communications, transportation, human resources, healthcare, transaction processing and customer care. ACS's revenues for the calendar year ended December 31, 2009 were $6.6 billion. Headquartered in Dallas, Texas, ACS's 78...

  • Page 15
    ... industry and for large enterprises. n฀฀ $2,058 Other Our Other segment primarily includes revenue from paper sales, wide-format systems, value-added services, and Global Imaging Systems network integration solutions and electronic presentation systems. Xerox 2009 Annual Report 13

  • Page 16
    ...of color and black-andwhite multifunction printer/copier/fax products and document-related software solutions. Our Office segment serves global, national and small to mid-size commercial customers, as well as government, education and other public sector customers. Office systems and services, which...

  • Page 17
    ... with total document solutions and services that enable personalization and printing on demand, delivers value that improves our customers' business results. In 2009 we launched FreeFlow Process Manager® 8.0, which continues to further enhance our software solutions to drive productivity and...

  • Page 18
    ..., supplies, service and labor. We report revenue from managed services contracts in the Production or Office segments. In 2009, the combined value-added services and managed print services revenue, including equipment, totaled $3.5 billion. In our wide-format systems business, we offer document...

  • Page 19
    ...lease agreement, whether rental or operating lease, and report it in post sale revenue. Our accounting policies for revenue recognition for leases and bundled arrangements are included in Note 1 - Summary of Significant Accounting Policies in the Consolidated Financial Statements in this 2009 Annual...

  • Page 20
    ... channel type. We sell our products and solutions directly to customers through our worldwide sales force and through a network of independent agents, dealers, value-added resellers, systems integrators and the Web. In the U.S., GIS continues to expand its network of office technology suppliers to...

  • Page 21
    ... across Europe. n฀฀ Developing Markets Developing Markets supports more than 130 countries. n฀฀ Fuji Xerox Fuji Xerox, an unconsolidated entity of which we own 25%, develops, manufactures and distributes document management systems, supplies and services. Xerox 2009 Annual Report 19

  • Page 22
    ... our value proposition while providing Xerox a profitable revenue stream and an attractive gross margin that provides us a reasonable return on our investment in this business. As a result of our customer financing program, we benefit by gaining in-depth knowledge of the products being leased and...

  • Page 23
    ...have an EA Toner plant located in Webster, New York, which was built in 2007. Our remaining primary manufacturing operations are located in: Dundalk, Ireland, for our high-end production products and consumables; and Wilsonville, Oregon, for solid ink products, consumable supplies and components for...

  • Page 24
    ... services such as assessment consulting, managed print services, imaging and hosting, and document-intensive business process improvements. Additionally, our customers demand improved technology solutions, such as the ability to print offset-quality color documents on-demand; improved product...

  • Page 25
    ...-leading Managed Print Services offering; and • ACS acquisition opens new market opportunities and strengthens financial position. Total revenue of $15,179 million for 2009 declined 14% from the prior year, including a 3-percentage point negative impact from currency. Equipment sales of $3,550...

  • Page 26
    ... Change 2009 2008 Equipment sales Post sale revenue(1) Total Revenue Reconciliation to Consolidated Statements of Income Sales Less: Supplies, paper and other sales Equipment Sales Service, outsourcing and rentals Finance income Add: Supplies, paper and other sales Post Sale Revenue Memo: Color...

  • Page 27
    ... customer locations, the volume of prints and copies that our customers make on that equipment, the mix of color pages and associated services. Color revenues represent a subset of total revenue and excludes the impact of GIS's revenues. As of December 31, 2009 and 2008, total color, color post sale...

  • Page 28
    ... rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices. Allowance for Doubtful Accounts and Credit Losses We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history...

  • Page 29
    ...discount rates. The total actuarial loss will be amortized in the future, subject to offsetting gains or losses that will change the future amortization amount. We have utilized a weighted average expected rate of return on plan assets of 7.4% for 2009 and 7.6% for both 2008 and 2007, on a worldwide...

  • Page 30
    ...we manage the business and view the markets we serve. Our reportable segments are Production, Office and Other. See Note 2 - Segment Reporting in the Consolidated Financial Statements for further discussion on our segment operating revenues and segment operating profit. 28 Xerox 2009 Annual Report

  • Page 31
    ... equipment sales revenue, primarily reflecting pricing declines in both black-and-white and color production systems, driven in part by weakness in the U.S. • 1% increase in installs of production color products driven in part by Xerox® 700 and iGen4 activity, as well as color continuous feed...

  • Page 32
    ... color printers partially offset by declines in black-and-white digital devices. Office post sale revenue was negatively impacted in the fourth quarter of 2008 by declines in channel supply purchases, including lower purchases within developing markets. • 2% increase in equipment sales revenue...

  • Page 33
    ... due to mix, as price declines of 1.3-percentage points were offset by cost improvements. Mix reflects margin pressure from document management services. • Financing income margin of approximately 62% remained comparable to 2007. • Since a large portion of our inventory procurement is from...

  • Page 34
    ... currency and benefits from restructuring and cost actions partially offset by higher compensation accruals. • $103 million increase in bad debt expense reflecting increased write-offs in North America and Europe. SAG 2008 SAG of $4,534 million was $222 million higher than 2007, including a $12...

  • Page 35
    ... income in 2009 and 2008 was primarily due to lower average cash balances and rates of return. Gain on sales of businesses and assets: 2009 and 2008 gain on sales of business and assets primarily consisted of the sales of certain surplus facilities in Latin America. Xerox 2009 Annual Report 33

  • Page 36
    ... and mid-size business (SMB) market in Ireland. IBS, with eight offices located throughout Ireland, is a managed print services provider and the largest independent supplier of digital imaging and printing solutions in Ireland. On February 5, 2010 we completed the acquisition of ACS. Refer to Note...

  • Page 37
    ... equipment and supplies sales in 2008. • $136 million increase from accounts receivable due to strong collection effectiveness throughout 2008. • $107 million increase from derivatives, primarily due to the termination of certain interest rate swaps in fourth quarter 2008. Xerox 2009 Annual...

  • Page 38
    ... to share repurchases related to employee withholding taxes on stock-based compensation vesting. Financing Activities, Credit Facility and Capital Markets Customer Financing Activities We provide lease equipment financing to the majority of our customers. Our lease contracts permit customers to pay...

  • Page 39
    ... information regarding our share repurchase programs. Dividends The Board of Directors declared a 4.25 cent per-share dividend on common stock in each quarter of 2009 and 2008. Credit Facility In October 2009, in connection with our anticipated acquisition of ACS, we amended our $2.0 billion Credit...

  • Page 40
    ... with the agreement to acquire ACS, in September 2009 we entered into a commitment for a syndicated $3.0 billion Bridge Loan Facility with several banks that was to be used for funding the acquisition in the event the transaction closed prior to obtaining permanent financing in the capital markets...

  • Page 41
    ... what was disclosed in the 2007 Annual Report of $165 million to our U.S. qualified pension plans. Our retiree health benefit plans are non-funded and are almost entirely related to domestic operations. Cash contributions are made each year to cover medical claims costs incurred in that year. The...

  • Page 42
    Management's Discussion Fuji Xerox We purchased products, including parts and supplies, from Fuji Xerox totaling $1.6 billion, $2.1 billion and $1.9 billion in 2009, 2008 and 2007, respectively. Our purchase commitments with Fuji Xerox are in the normal course of business and typically have a lead ...

  • Page 43
    ... and affiliates, primarily Xerox Limited, Fuji Xerox, Xerox Canada Inc. and Xerox do Brasil, and translated into Dollars using the year-end exchange rates, was $6.9 billion at December 31, 2009. Interest Rate Risk Management The consolidated weighted-average interest rates related to our total debt...

  • Page 44
    Xerox Corporation Consolidated Statements of Income Year Ended December 31, (in millions, except per-share data) 2009 2008 2007 Revenues Sales Service, outsourcing and rentals Finance income Total Revenues Costs and Expenses Cost of sales Cost of service, outsourcing and rentals Equipment ...

  • Page 45
    ..., except share data in thousands) 2009 2008 Assets Cash and cash equivalents Accounts receivable, net Billed portion of finance receivables, net Finance receivables, net Inventories Other current assets Total current assets Finance receivables due after one year, net Equipment on operating leases...

  • Page 46
    ...of land, buildings and equipment Cost of additions to internal use software Acquisitions, net of cash acquired Net change in escrow and other restricted investments Other investing, net Net cash used in investing activities Cash Flows from Financing Activities: Net payments on secured financings Net...

  • Page 47
    ... Loss (AOCL)" section for additional information. Refer to Note 14 - Employee Benefit Plans for additional information. (3) Cash dividends declared of $0.0425 in the fourth quarter 2007 and in each of the four quarters in 2008 and 2009. (4) Represents purchase of De Lage Landen's 51% ownership...

  • Page 48
    ... enterprise and a leader in the global document market. We develop, manufacture, market, service and finance a complete range of document equipment, software, solutions and services. Basis of Consolidation The Consolidated Financial Statements include the accounts of Xerox Corporation and all of our...

  • Page 49
    ..., the Board will not issue new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, it will issue Accounting Standards Updates ("ASU") which will serve to update the Codification, provide background information about the guidance and provide the...

  • Page 50
    ... that date for new or materially modified arrangements. We do not believe adoption of these updates will have a material effect on our financial condition or results of operations. Benefit Plans Accounting In 2008, the FASB issued Staff Position No. FAS 132(R)-1, "Employers' Disclosures about Post...

  • Page 51
    ... and installed at the customer location. Sales of customer installable products are recognized upon shipment or receipt by the customer according to the customer's shipping terms. Revenues from equipment under other leases and similar arrangements are accounted for by the operating lease method and...

  • Page 52
    ...the term. Revenue from such lease extensions is typically recognized over the extension period. Bundled Arrangements: We sell our products and services under bundled lease arrangements, which typically include equipment, service, supplies and financing components for which the customer pays a single...

  • Page 53
    ...-line method. Significant improvements are capitalized and maintenance and repairs are expensed. Refer to Note 5 - Inventories and Equipment on Operating Leases, Net and Note 6 - Land, Buildings and Equipment, Net for further discussion. Internal Use Software We capitalize direct costs associated...

  • Page 54
    ... future events are used in calculating the expense, liability and asset values related to our pension and post-retirement benefit plans. These factors include assumptions we make about the discount rate, expected return on plan assets, rate of increase in healthcare costs, the rate of future...

  • Page 55
    ..., color laser, solid ink color printers and multifunction devices, monochrome laser desktop printers, digital and light-lens copiers and facsimile products, and non-Xerox branded products with similar specifications. These products are sold through direct and indirect sales channels to global...

  • Page 56
    ... separate segment reporting. This group primarily includes Xerox Supplies Business Group (predominantly paper sales), Value-Added Services, Wide Format Systems, Xerox Technology Enterprises, royalty and licensing revenues, GIS network integration solutions and electronic presentation systems, equity...

  • Page 57
    ... equipment on operating leases, net, (iii) internal use software, net and iv) capitalized software costs, net. Note 3 - Acquisitions Affiliated Computer Services, Inc. In September 2009, we entered into a definitive agreement to acquire Affiliated Computer Services, Inc. ("ACS") in a cash and stock...

  • Page 58
    ... cash, including transaction costs. GIS acquired three other similar businesses in 2008 for a total of $17 in cash. In 2007, GIS acquired four businesses that provide office-imaging solutions and related services for $39 in cash. These acquisitions continue the development of GIS's national network...

  • Page 59
    ... $385 $281 $181 $94 $46 $45 Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, for the years ended December 31, 2009, 2008 and 2007 amounted to $125, $117 and $117, respectively. Xerox 2009 Annual Report 57

  • Page 60
    ... 31, 2009, 2008 and 2007, respectively. During 2009 we terminated several agreements with EDS for information management services and entered into new agreements for similar services with several providers. Services to be provided under these contracts include support for data network transport...

  • Page 61
    ... patent portfolio in exchange for access to our patent portfolio. These payments are included in Service, outsourcing and rental revenues in the Consolidated Statements of Income. We also have arrangements with Fuji Xerox whereby we purchase inventory from and sell inventory to Fuji Xerox. Pricing...

  • Page 62
    ... with our 1998 acquisition of XL Connect Solutions, Inc. In 2008, we finalized the GIS purchase price allocation. As a result, the $108 of goodwill reflected in our Other segment in 2007 was reallocated to our Office segment. This adjustment aligned goodwill to the reporting unit benefiting from the...

  • Page 63
    ...and $(6) in 2009, 2008 and 2007, respectively. Detailed information related to restructuring program activity during the three years ended December 31, 2009 is outlined below: Restructuring Activity Severance and Related Costs Lease Cancellation and Other Costs Asset Impairments(1) Total Balance...

  • Page 64
    ... and training. • Capturing efficiencies in technical services, managed services, and supply chain and manufacturing infrastructure. • Optimizing product development and engineering resources. In addition, related to these activities, we also recorded lease cancellation and other costs of...

  • Page 65
    ... thereunder would be guaranteed by us. In October 2009, in connection with the acquisition of ACS, we amended the Credit Facility as follows: • The definition of "principal debt" was changed such that prior to the closing of the ACS acquisition, it was calculated net of cash proceeds from the...

  • Page 66
    ... were used to repay ACS's senior credit facility upon completion of the acquisition and to fund a portion of the cash consideration and certain fees and expenses relating to the acquisition of ACS (Refer to Note 3 - Acquisitions for further information). Prior to the closing of the acquisition, the...

  • Page 67
    ..., 2009 was as follows: 2009 2008 2007 Cash payments on notes payable, net Net cash proceeds from issuance of long-term debt Cash payments on long-term debt Net Cash Proceeds on Other Debt $ (1,331) 2,702 (448) $ 923 $ (238) 1,883 (719) $ 926 $ (143) 2,254 (297) $ 1,814 Xerox 2009 Annual Report...

  • Page 68
    ...major financial institutions. Further, our policy is to deal with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposures to such counterparties. Interest Rate Risk Management We use interest rate swap agreements...

  • Page 69
    ... as cash flow hedges of our foreign currency-denominated inventory purchases and sales. The changes in fair value for these contracts were reported in Accumulated other comprehensive loss and reclassified to Cost of sales and revenue in the period or periods during which the related inventory was...

  • Page 70
    ...) 2009 2008 2007 Gain (Loss) Gain Reclassified to Reclassifiedfrom AOCI from toIncome Income(Effective (EffectivePortion) Portion) 2009 2008 Interest rate contracts Foreign exchange contracts - forwards Total Cash Flow Hedges $ - (1) $ (1) $ (2) 4 $ 2 $ 9 - $ 9 Interest expense Cost of sales...

  • Page 71
    ...for the three years ended December 31, 2009: Year Ended December 31, 2009 2008 2007 Beginning cash flow hedges balance, net of tax Changes in fair value gain (loss) Reclass to earnings Ending Cash Flow Hedges Balance, Net of Tax $- (1) 2 $ 1 $- 1 (1) $- $ 1 4 (5) $- Xerox 2009 Annual Report 69

  • Page 72
    ...: Foreign exchange contracts - forwards Interest rate swaps Total $ 39 53 $ 92 $ 132 2 $ 134 $ 39 53 $ 92 $ 132 2 $ 134 In 2009 and 2008, we utilized the income approach to measure fair value for our derivative assets and liabilities. The income approach uses pricing models that...

  • Page 73
    ... accounting changes affecting our benefit plans. Pension Benefits 2009 2008 2009 Retiree Health 2008 Change in Benefit Obligation: Benefit obligation, January 1 Service cost Interest cost Plan participants' contributions Plan amendments Actuarial loss (gain) Acquisitions Currency exchange rate...

  • Page 74
    ... except per-share data and unless otherwise indicated. Benefit plans pre-tax amounts recognized in Accumulated other comprehensive (income) loss as of December 31, 2009 and 2008: Pension Benefits 2009 2008 2009 Retiree Health 2008 Net actuarial loss (gain) Prior service (credit) cost Total Pre-tax...

  • Page 75
    ... 2009 2008 2007 2009 Retiree Health 2008 2007 Components of Net Periodic Benefit Cost: Service cost Interest cost(1) Expected return on plan assets(2) Recognized net actuarial loss Amortization of prior service credit Recognized curtailment/settlement loss Net periodic defined benefit cost Defined...

  • Page 76
    ... Total Debt Securities Common/Collective Trust Derivatives: Interest Rate Contracts Foreign Exchange Contracts Equity Contracts Credit Contracts Other Contracts Total Derivatives Hedge Funds Real Estate Private Equity/Venture Capital Guaranteed Insurance Contracts Other Total Defined Benefit Plan...

  • Page 77
    ... Total Debt Securities Common/Collective Trust Derivatives: Interest Rate Contracts Foreign Exchange Contracts Equity Contracts Credit Contracts Other Contracts Total Derivatives Hedge Funds Real Estate Private Equity/Venture Capital Guaranteed Insurance Contracts Other Total Defined Benefit Plan...

  • Page 78
    ... defined benefit plan's assets measured using significant unobservable inputs (Level 3 assets): Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Private Equity/Venture Capital Guaranteed Insurance Contracts Hedge Funds Real Estate Other Total December 31, 2008 Net payments...

  • Page 79
    ... Financial Statements Dollars in millions, except per-share data and unless otherwise indicated. Assumptions Weighted-average assumptions used to determine benefit obligations at the plan measurement dates: Pension Benefits 2009 2008 2007 2009 Retiree Health 2008 2007 Discount rate Rate...

  • Page 80
    ... of settlements did not result in the utilization of cash. On a consolidated basis, we paid a total of $78, $194 and $104 in income taxes to federal, foreign and state jurisdictions during the three years ended December 31, 2009, 2008 and 2007, respectively. Total income tax expense (benefit) for...

  • Page 81
    ... and we currently do not plan to initiate any action that would precipitate the payment of income taxes thereon. It is not practicable to estimate the amount of additional tax that might be payable on the foreign earnings. Our 2001 sale of half of our ownership interest in Fuji Xerox resulted in our...

  • Page 82
    ... associated with former employees and contract labor. The tax matters, which comprise a significant portion of the total contingencies, principally relate to claims for taxes on the internal transfer of inventory, municipal service taxes on rentals and gross revenue taxes. We are disputing these...

  • Page 83
    ... of operations, cash flows and financial position in the period in which such change in determination, judgment or settlement occurs. Merger Agreement Between Xerox and Affiliated Computer Services, Inc.: In late September and early October 2009, nine purported class action complaints were filed by...

  • Page 84
    ... payments may not be covered under our directors' and officers' insurance coverage. In addition, we indemnify certain fiduciaries of our employee benefit plans for liabilities incurred in their service as fiduciary whether or not they are officers of the Company. 82 Xerox 2009 Annual Report

  • Page 85
    ... lease term or the expected useful life under a cash sale. The service agreements involve the payment of fees in return for our performance of repairs and maintenance. As a consequence, we do not have any significant product warranty obligations, including any obligations under customer satisfaction...

  • Page 86
    ... 31, 2009 and 2008, 15 million shares were available for grant of awards. Stock-based compensation expense for the three years ended December 31, 2009 was as follows: 2009 2008 2007 Balance at December 31, 2006 Stock option and incentive plans, net Acquisition of Treasury stock Cancellation of...

  • Page 87
    ...: Vested Performance Shares 2009 2008 Total intrinsic value of vested PSs Tax benefit realized for vested PSs tax deductions $15 6 $41 13 We account for PSs using fair value determined as of the grant date. If the stated targets are not met, any recognized compensation cost would be reversed...

  • Page 88
    ... business market in Ireland. IBS has eight offices located throughout Ireland and is a managed print services provider and the largest independent supplier of digital imaging and printing solutions in Ireland. On February 5, 2010, we completed the acquisition of ACS. Refer to Note 3 - Acquisitions...

  • Page 89
    ... adequate internal control over financial reporting, as such term is defined in the rules promulgated under the Securities Exchange Act of 1934. Under the supervision and with the participation of our management, including our principal executive, financial and accounting officers, we have conducted...

  • Page 90
    ... financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management...

  • Page 91
    ... charges. Third quarter 2008 also included a $41 income tax benefit from the settlement of certain previously unrecognized tax benefits. The first, second, third and fourth quarters of 2009 include $22, $9, $9 and $6 of charges, respectively, for our share of Fuji Xerox restructuring charges. The...

  • Page 92
    ... Common stock dividends declared Operations Revenues Sales Service, outsourcing and rentals Finance income Income from continuing operations Income from continuing operations - Xerox Net income Net income - Xerox Financial Position Working capital Total assets Consolidated Capitalization Short...

  • Page 93
    ... and Switzerland exchanges. Xerox Common Stock Prices and Dividends New York Stock Exchange composite prices* First Quarter Second Quarter Third Quarter Fourth Quarter 2009 High Low Dividends paid per share 2008 High Low Dividends paid per share * Prices as of close of business $ 9.10 4.17...

  • Page 94
    ..., Xerox Global Services North America James H. Lesko Vice President Investor Relations Jule E. Limoli Vice President President, North American Agent Operations Douglas C. Lord Vice President President, North American Solutions Group John E. McDermott Vice President Chief Information Officer Ivy...

  • Page 95
    ...5111 ACS, A Xerox Company 2828 North Haskell Dallas, TX 75204 214.841.6111 www.acs-inc.com Additional Information The Xerox Foundation 203.849.2478 Contact: Evelyn Shockley, Manager Diversity Programs and EEO-1 Reports 585.423.6157 www.xerox.com/diversity Minority and Women-Owned Business Suppliers...

  • Page 96
    ...www.xerox.com ©2010 Xerox Corporation. All rights reserved. XEROX® and XEROX and Design®, ColorQube™, DocuColor®, FreeFlow®, FreeFlow Process Manager®, PagePack®, Phaser®, ProfitAccelerator®, Ready for Real Business™, WorkCentre®, iGen3®, iGen4® and Xerox Nuvera® are trademarks of...