Xerox 2011 Annual Report Download - page 106

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104
Note 21 – Subsequent Events
Debt Exchange
In February 2012, we completed an exchange of our 5.71% Zero
Coupon Notes due 2023 with an accreted book value at the date of
the exchange of $303, for approximately $363 of our 4.50% Senior
Notes due 2021. Accordingly, this increased the principal amount for our
4.50% Senior Notes due 2021 from $700 to $1,063. The exchange was
conducted to retire high-interest, long-dated debt in a favorable interest
rate environment. The debt exchange was accounted for as a non-
revolving debt modification and, therefore, it did not result in any gain or
loss. The difference between the book value of our Zero Coupon Notes
and the principal value of the Senior Notes issued in exchange will be
accreted over the remaining term of the Senior Notes. Upfront fees paid
to third parties in relation to the exchange were not material and were
expensed as incurred.
In February 2012, we acquired RK Dixon, a leading provider of IT
services, copiers, printers and managed print services, for approximately
$58. The acquisition furthers our coverage of Central Illinois and Eastern
Iowa, building on our strategy to create a nationwide network of locally
based companies focused on customers’ needs to improve business
performance through efficiencies. We are in the process of determining
the purchase price allocation.
Notes to the Consolidated
Financial Statements
(in millions, except per-share data and where otherwise noted)