Financial Highlights

Financial Highlights

(in millions, except EPS) 2015 2014
Total revenue $18,045 $19,540
Adjusted total revenue* 18,161 19,540
Equipment sales 2,781 3,104
Annuity revenue 15,264 16,436
Adjusted annuity revenue* 15,380 16,436
Net income from continuing operations – Xerox 552 1,128
Adjusted net income* – Xerox 1,076 1,280
Diluted earnings per share from continuing operations 0.49 0.94
Adjusted earnings per share* 0.98 1.07
Net cash provided by operating activities 1,611 2,063
Adjusted operating margin* 8.4% 9.6%

* 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.

Financial Measures

Net Income from Continuing Operations – Xerox (in millions)
Total Revenue (in millions)
Total Services Segment Revenue (in millions – percent of total revenue)
Annuity Revenue (in millions – percent of total revenue)
Net Cash from Operating Activities (in millions)
Adjusted Operating Margin*

* 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.

Non-GAAP Measures

Adjusted Earnings Per Share (EPS) Year Ended December 31,
2015 2014 2013 2012 2011
(in millions, except per share amounts) Net Income EPS Net Income EPS Net Income Net Income Net Income
As Reported(1) $552 $0.49 $1,128 $0.94 $1,139 $1,152 $1,219
Adjustments:
Amortization of intangible assets 193 0.18 196 0.17 189 186 231
Software impairment 90 0.08
Health Enterprise charge 241 0.23
Deferred tax liability adjustment (44) (0.04)
Loss on early extinguishment of debt 20
Adjusted $1,076 $0.98 $1,280 $1.07 $1,328 $1,338 $1,470
Weighted average shares for adjusted EPS(2) 1,103 1,199

(1) Net income and EPS from continuing operations. (2) Average shares for the calculation of adjusted EPS include 27 million shares associated with the Series A convertible preferred stock.

Operating Margin (in millions) Year Ended December 31,
2015(1) 2014 2013 2012 2011
Total Revenues $18,161 $19,540 $20,006 $20,421 $20,638
Pre-tax Income $412 $1,206 $1,243 $1,284 $1,450
Adjustments:
Amortization of intangible assets 310 315 305 301 371
Restructuring and asset impairment charges 186 128 115 149 31
Health Enterprise charge 389
Curtailment gain (107)
Other expenses, net 233 232 146 257 320
Adjusted Operating Income $1,530 $1,881 $1,809 $1,991 $2,065
Pre-tax Income Margin 2.3% 6.2% 6.2% 6.3% 7.0%
Adjusted Operating Margin 8.4% 9.6% 9.0% 9.7% 10.0%

(1) See table below for 2015 adjusted revenue.

Revenue/Segment (in millions) Year Ended December 31,
2015
Reported Health Enterprise Charge Adjusted
Total Revenue $18,045 $116 $18,161
Total Services Segment Revenue 10,137 116 10,253
Annuity Revenue 15,264 116 15,380

Form 10-K

Click to download a PDF of the complete Form 10-K filing.