SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
November 3, 2000
XEROX CORPORATION
(Exact name of registrant as specified in its charter)
New York 1-4471 16-0468020
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) No.)
800 Long Ridge Road
P. O. Box 1600
Stamford, Connecticut 06904-1600
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code:
(203) 968-3000
Item 5. Other Events
Registrant is filing this Current Report on Form 8-K to disclose its
Consolidated Statements of Income, Consolidated Balance Sheets and
Consolidated Statements of Cash Flows for and as of the fiscal quarter ended
September 30, 2000 in advance of filing same in its Quarterly Report on Form
10-Q for the quarter ended September 30, 2000, which Registrant expects to
file later this month. There are no accompanying notes to these financial
statements. The notes to these financial statements will be included in the
Form 10-Q filing.
Xerox Corporation
Consolidated Statements of Income (Unaudited)
Three months ended Nine months ended
September 30, September 30,
(In millions, except per-share data) 2000 1999 2000 1999
Revenues
Sales $ 2,375 $ 2,463 $ 7,192 $ 7,144
Service, outsourcing, financing and
rentals 2,087 2,164 6,389 6,645
Total Revenues 4,462 4,627 13,581 13,789
Costs and Expenses
Cost of sales 1,509 1,385 4,266 3,899
Cost of service, outsourcing, financing
and rentals 1,316 1,238 3,902 3,708
Inventory charges - - 119 -
Research and development expenses 272 230 776 737
Selling, administrative and general
expenses 1,379 1,208 3,947 3,631
Restructuring charge and asset
impairments - - 504 -
Mexico provision 55 - 170 -
Gain on affiliate's sale of stock - - (21) -
Purchased in-process research and
development - - 27 -
Other, net 127 61 276 182
Total Costs and Expenses 4,658 4,122 13,966 12,157
Income (Loss) before Income Taxes
(Benefits), Equity Income and
Minorities' Interests (196) 505 (385) 1,632
Income taxes (benefits) (29) 157 (93) 506
Equity in net income of
unconsolidated affiliates (10) (5) (60) (39)
Minorities' interests in earnings of
subsidiaries 10 14 33 35
Net Income (Loss) $ (167) $ 339 $ (265) $ 1,130
Basic Earnings (Loss) per Share $ (0.26) $ 0.50 $ (0.44) $ 1.66
Diluted Earnings (Loss) per Share $ (0.26) $ 0.47 $ (0.44) $ 1.55
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Xerox Corporation
Consolidated Balance Sheets
September 30, December 31,
(In millions, except share data in thousands) 2000 1999
Assets (Unaudited)
Cash $ 154 $ 126
Accounts receivable, net 2,422 2,622
Finance receivables, net 4,909 5,115
Inventories 3,108 2,961
Deferred taxes and other current assets 1,552 1,230
Total Current Assets 12,145 12,054
Finance receivables due after one year, net 8,155 8,203
Land, buildings and equipment, net 2,499 2,456
Investments in affiliates, at equity 1,582 1,615
Goodwill, net 1,628 1,724
Intangible and other assets 2,481 1,701
Investment in discontinued operations 793 1,130
Total Assets $ 29,283 $ 28,883
Liabilities and Equity
Short-term debt and current portion of
long-term debt $ 4,015 $ 3,957
Accounts payable 997 1,016
Accrued compensation and benefit costs 589 715
Unearned income 232 186
Other current liabilities 1,705 2,163
Total Current Liabilities 7,538 8,037
Long-term debt 13,132 10,994
Postretirement medical benefits 1,167 1,133
Deferred taxes and other liabilities 2,223 2,245
Discontinued operations liabilities -
policyholders' deposits and other 50 428
Deferred ESOP benefits (299) (299)
Minorities' interests in equity of subsidiaries 124 127
Company-obligated, mandatorily redeemable
preferred securities of subsidiary trust
holding solely subordinated debentures of
the Company 638 638
Preferred stock 659 669
Common shareholders' equity 4,051 4,911
Total Liabilities and Equity $ 29,283 $ 28,883
Shares of common stock issued and
outstanding 667,005 665,156
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Xerox Corporation
Consolidated Statements of Cash Flows (Unaudited)
Nine months ended September 30 (In millions) 2000 1999
Cash Flows from Operating Activities
Net Income (Loss) $ (265) $1,130
Adjustments required to reconcile income to cash
flows from operating activities:
Depreciation and amortization 824 659
Provisions for doubtful accounts 316 205
Restructuring and other charges 623 -
Mexico provision 170 -
Gain on affiliate's sale of stock (21) -
Gain on divestitures (63) -
Purchased in-process research and development 27 -
Provision for postretirement medical
benefits, net of payments 34 31
Cash payments for the 1998 restructuring (101) (327)
Cash payments for the 2000 restructuring (69) -
Minorities' interests in earnings of subsidiaries 33 35
Undistributed equity in income of
affiliated companies (20) (39)
Increase in inventories (217) (57)
Increase in on-lease equipment (483) (249)
Increase in finance receivables (736) (901)
Proceeds from securitization of finance
receivables - 1,150
Increase in accounts receivable (249) (480)
Proceeds from securitization of accounts receivable 315 -
Decrease in accounts payable and accrued
compensation and benefit costs (126) (411)
Net change in current and deferred income taxes (491) 197
Change in other current and noncurrent liabilities (294) (224)
Other, net (278) (428)
Total (1,071) 291
Cash Flows from Investing Activities
Cost of additions to land, buildings and equipment (324) (393)
Proceeds from sales of land, buildings and equipment 80 29
Proceeds from divestitures 90 -
Acquisitions, net of cash acquired (873) (107)
Other, net - (24)
Total (1,027) (495)
Cash Flows from Financing Activities
Net change in debt 2,208 565
Proceeds from secured borrowing 411 -
Dividends on common and preferred stock (441) (439)
Proceeds from sale of common stock 22 125
Proceeds from(settlements of)equity put options 24 (5)
Dividends to minority shareholders (5) (29)
Total 2,219 217
Effect of Exchange Rate Changes on Cash (1) (9)
Cash Provided by Continuing Operations 120 4
Cash Provided (Used) by Discontinued Operations (92) 23
Increase in Cash 28 27
Cash at Beginning of Period 126 79
Cash at End of Period $ 154 $ 106
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly authorized this report to be signed on its behalf by the
undersigned duly authorized.
XEROX CORPORATION
/s/ MARTIN S. WAGNER
--------------------------------
By: MARTIN S. WAGNER
Assistant Secretary
Dated: November 3, 2000
