Xerox 2015 Annual Report Download - page 88

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the impact of this adjustment on the current year consolidated financial statements, the accompanying Consolidated
Financial Statements for 2014 have been revised as summarized below:
The following table presents the effect of this correction on our Consolidated Statements of Income for all periods
affected:
Three Months Ended
December 31, 2014
Year Ended
December 31, 2014
As Reported
(Unaudited)
As Revised
(Unaudited) As Reported As Revised
Income tax expense $ 78 $ 34 $ 259 $ 215
Income from Continuing Operations 311 355 1,107 1,151
Net Income 162 206 992 1,036
Net Income Attributable to Xerox 156 200 969 1,013
Net Income Attributable to Xerox - continuing operations 305 349 1,084 1,128
Basic Earnings per Share:
Continuing Operations $ 0.26 $0.30 $0.92 $0.96
Total Basic Earnings per Share 0.13 0.17 0.82 0.86
Diluted Earnings per Share:
Continuing Operations $ 0.26 $0.30 $0.90 $0.94
Total Diluted Earnings per Share 0.13 0.17 0.81 0.85
The following table presents the effect this correction had on our Consolidated Balance Sheet at December 31,
2014:
December 31, 2014
As Reported As Revised
Other long-term liabilities $498 $454
Total Liabilities 16,600 16,556
Retained earnings 9,491 9,535
Xerox shareholders' equity 10,634 10,678
Total Equity 10,709 10,753
The correction did not have an effect on the Company’s operating cash flows. The following table presents the effect
on the individual line items within operating cash flows of our Consolidated Statement of Cash Flows for the year
ended December 31, 2014:
Year Ended
December 31, 2014
As Reported As Revised
Net income $992 $1,036
Net change in income tax assets and liabilities 29 (15)
Use of Estimates
The preparation of our Consolidated Financial Statements requires that we make estimates and assumptions that
affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and expenses during the reporting
period. Future events and their effects cannot be predicted with certainty; accordingly, our accounting estimates
require the exercise of judgment. The accounting estimates used in the preparation of our Consolidated Financial
Statements will change as new events occur, as more experience is acquired, as additional information is obtained
and as our operating environment changes. Our estimates are based on management's best knowledge of current
events, historical experience, actions that the company may undertake in the future and on various other
assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different
from these estimates.
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