Xerox 2011 Annual Report Download - page 11

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Xerox 2011 Annual Report 9
Non-GAAP Measures
Year Ended December 31,
Adjusted Earnings per Share (EPS) 2011 2010 2009 2008 2007
(in millions, except per-share amounts) Net Income EPS Net Income EPS Net Income Net Income Net Income
As Reported $ 1,295 $ 0.90 $ 606 $ 0.43 $ 485 $ 230 $ 1,135
Adjustments:
Amortization of intangible assets 248 0.17 194 0.14 38 35 28
Loss on early extinguishment of debt 20 0.01 10 0.01 — — —
Xerox and Fuji Xerox restructuring charge 355 0.26 41 308 (5)
ACS acquisition-related costs 58 0.04 49 — —
ACS shareholders’ litigation settlement 36 0.03 — — —
Venezuela devaluation costs 21 0.02 — — —
Medicare subsidy tax law change 16 0.01 — — —
Provision for litigation matters — — — 491 —
Equipment write-off — — — 24 —
Settlement of unrecognized tax benefits — — — (41) —
268 0.18 690 0.51 128 817 23
Adjusted $ 1,563 $ 1.08 $ 1,296 $ 0.94 $ 613 $ 1,047 $ 1,158
Weighted average shares for reported EPS 1,444 1,351
Weighted average shares for adjusted EPS 1,444 1,378
Revenue Growth – Year Ended December 31,
Pro-forma/Without Currency As Reported As Reported Pro-forma Pro-forma
(in millions) 2011 2010 2010(1) % Change % Change
Revenue Category
Equipment sales $ 3,856 $ 3,857 $ 3,857 0% 0%
Supplies, paper and other 3,270 3,377 3,402 (3%) (4%)
Sales 7,126 7,234 7,259 (1%) (2%)
Service, outsourcing and rentals 14,868 13,739 14,333 8% 4%
Finance income 632 660 660 (4%) (4%)
Total Revenues $ 22,626 $ 21,633 $ 22,252 5% 2%
Segment
Services $ 10,837 $ 9,637 $ 10,256 12% 6%
Technology 10,259 10,349 10,349 (1%) (1%)
Other 1,530 1,647 1,647 (7%) (7%)
Total Revenues $ 22,626 $ 21,633 $ 22,252 5% 2%
(1) Pro-forma 2010 includes ACS’s 2010 estimated results from January 1 through February 5 in our reported 2010 results adjusted for deferred revenue,
exited businesses and certain non-recurring product sales.
Operating Margin Year Ended December 31,
(in millions) 2011 2010 2009 2008 2007
Total Revenues $ 22,626 $ 21,633 $ 15,179 $ 17,608 $ 17,228
Pre-tax income (loss) $ 1,565 $ 815 $ 627 $ (79) $ 1,468
Adjustments:
Amortization of intangible assets 398 312 60 54 42
Xerox restructuring charge 33 483 (8) 429 (6)
Curtailment gain (107) — — — —
ACS acquisition-related costs — 77 72 — —
Equipment write-off — — — 39 —
Other expenses, net 322 389 285 1,033 223
Adjusted Operating Income $ 2,211 $ 2,076 $ 1,036 $ 1,476 $ 1,727
Pre-tax Income Margin 6.9% 3.8% 4.1% (0.4%) 8.5%
Adjusted Operating Margin 9.8% 9.6% 6.8% 8.4% 10.0%
Adjusted Net Cash from
Operating Activities Year Ended
(in millions) December 31, 2008
Operating Cash Flow – As Reported $ 939
Adjustments:
Payments for securities litigation 615
Operating Cash flow – As Adjusted $ 1,554