Financials


Highlights

Form 10-K

Click here to download a PDF of the complete Form 10-K filing.
(in millions, except EPS) 2014 2013
Total revenue $19,540 $20,006
Equipment sales 3,104 3,358
Annuity revenue 16,436 16,648
Net income from continuing operations – Xerox 1,084 1,139
Adjusted net income* – Xerox 1,280 1,328
Diluted earnings per share from continuing operations 0.90 0.89
Adjusted earnings per share* 1.07 1.04
Net cash provided by operating activities 2,063 2,375
Adjusted operating margin* 9.6% 9.0%
  • *See Non-GAAP Measures below for the reconciliation of the difference between this financial measure that is not in compliance with Generally Accepted Accounting Principles (GAAP) and the most directly comparable financial measure calculated in accordance with GAAP.

    Note: Income Statement items have been revised for all periods to reflect our Discontinued Operations. Refer to Note 4 – Divestitures – in our Consolidated Financial Statements.

Financial Measures

Non-GAAP Financial Measures
  • * See Non-GAAP Measures below for the reconciliation of the difference between this financial measure that is not in compliance with Generally Accepted Accounting Principles (GAAP) and the most directly comparable financial measure calculated in accordance with GAAP.

    Note: Income Statement items have been revised for all periods to reflect our Discontinued Operations. Refer to Note 4 – Divestitures – in our Consolidated Financial Statements.

Non-GAAP Measures

Adjusted Earnings Per Share (EPS) Year Ended December 31,
2014 2013 2012 2011 2010
(in millions; except per share amounts) Net Income EPS Net Income EPS Net Income Net Income Net Income
As Reported(1) $1,084 $0.90 $1,139 $0.89 $1,152 $1,219 $544
Adjustments:
Amortization of intangible assets 196 0.17 189 0.15 186 231 178
Loss on early extinguishment of debt 20 10
Xerox and Fuji Xerox restructuring charge 350
ACS acquisition-related costs 58
ACS shareholders litigation settlement 36
Venezuela devaluation costs 21
Medicare subsidy tax law change 16
196 0.17 189 0.15 186 251 669
Adjusted $1,280 $1.07 $1,328 $1.04 $1,338 $1,470 $1,213
Weighted average shares for adjusted EPS(2) 1,199 1,274
  1. (1) Net income and EPS from continuing operations attributable to Xerox.
  2. (2) Average shares for the calculation of adjusted EPS include 27 million shares associated with the Series A convertible preferred stock and therefore the related quarterly dividend was excluded.
Operating Margin (in millions) Year Ended December 31,
2014 2013 2012 2011 2010
Total Revenues(1) $19,540 $20,006 $20,421 $20,638 $19,650
Pre-tax Income(1) $1,206 $1,243 $1,284 $1,450 $718
Adjustments:
Amortization of intangible assets 315 305 301 371 287
Xerox restructuring charge 128 115 149 31 476
Curtailment gain (107)
ACS acquisition-related costs 77
Other expenses, net 232 146 257 320 385
Adjusted Operating Income $1,881 $1,809 $1,991 $2,065 $1,943
Pre-tax Income Margin 6.2% 6.2% 6.3% 7.0% 3.7%
Adjusted Operating Margin 9.6% 9.0% 9.7% 10.0% 9.9%
  1. (1) Revenue and Profit from continuing operations attributable to Xerox.
  2. Note: Income Statement items have been revised for all periods to reflect our Discontinued Operations. Refer to Note 4 – Divestitures – in our Consolidated Financial Statements.