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FORM 10-Q/A
Amendment No. 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to___________
Commission File Number 1-4471
XEROX CORPORATION
(Exact Name of Registrant as
specified in its charter)
New York 16-0468020 _
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
P.O. Box 1600
Stamford, Connecticut 06904-1600
(Address of principal executive offices)
(Zip Code)
(203) 968-3000 _
(Registrant's telephone number, including area code)
This document consists of 4 pages.
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PART I - FINANCIAL INFORMATION
Item 1
Xerox Corporation
Notes to Consolidated Financial Statements
8. Summarized operating results of Insurance follow (in
millions):
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
Revenues
Insurance premiums earned $ 224 $ 381 $ 455 $ 805
Investment and other income 51 112 100 223
Total Revenues 275 493 555 1,028
Costs and Expenses
Insurance losses and loss expenses 195 556 391 921
Insurance acquisition costs and
other operating expenses 88 129 183 277
Interest expense 27 49 53 98
Administrative and general expenses 4 (2) 8 30
Total Costs and Expenses 314 732 635 1,326
Realized Capital Gains 2 1 5 7
Income (Loss) Before Income Taxes (37) (238) (75) (291)
Income Tax Benefits 27 85 41 106
Income (Loss) From Insurance * $ (10) $ (153) $ (34) $ (185)
* The above operating results exclude the gains and losses related to sales
of the Insurance subsidiaries and the $190 million after-tax write-off
taken in the first quarter of 1998. The loss from Insurance operations as
set forth above and the sale-related impacts (excluding the $190 million
after-tax write-off), were charged to reserves established for this purpose
and, therefore, did not impact our earnings.
The net assets at June 30, 1998 and December 31, 1997 of the
Insurance businesses included in our consolidated balance sheets
as discontinued operations are as follows (in millions):
June 30, December 31,
1998 1997
Insurance Assets
Investments $ 3,520 $ 4,597
Reinsurance recoverable 847 1,459
Premiums and other receivables 562 592
Deferred taxes and other assets 896 1,082
Total Insurance assets $ 5,825 $ 7,730
Insurance Liabilities
Unpaid losses and loss expenses $ 3,578 $ 4,999
Unearned income 421 541
Notes payable 115 250
Other liabilities 837 864
Total Insurance liabilities $ 4,951 $ 6,654
Investment in Insurance, net $ 874 $ 1,076
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On August 13, 1998, we closed on the previously announced sale of
Crum & Forster Holdings, Inc. (CFI) to Fairfax Financial Holdings
Limited of Toronto for $680 million, including the repayment of
$115 million in debt. We incurred approximately $75 million in
transaction-related costs.
With the completion of the CFI transaction, we have effectively
completed our exit from insurance and financial services. A
write-off of $190 million after-tax was recorded in the first
quarter of 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this amendment to be signed
on its behalf by the undersigned thereunto duly authorized.
XEROX CORPORATION
(Registrant)
/s/ George R. Roth
_____________________________
Date: August 14, 1998 By George R. Roth
Assistant Treasurer
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