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EXHIBIT 11
Xerox Corporation
Computation of Net Income Per Common Share
(Dollars in millions, except per-share data; shares in thousands)
Three months Six Months
ended June 30, ended June 30,
2000 1999 2000 1999
I. Basic Net Income (Loss) Per Common Share
Net Income (Loss) $ 145 $ 448 $ (98) $ 791
Accrued dividends on ESOP preferred
stock, net (7) (10) (17) (20)
Adjusted net income (loss) $ 138 $ 438 $ (115) $ 771
Average common shares outstanding
during the period 666,360 659,234 666,031 659,994
Common shares contingently issuable
with respect to exchangeable shares 920 2,206 921 2,012
Adjusted average shares outstanding
for the period 667,280 661,440 666,952 662,006
Basic earnings (loss) per share $ 0.21 $ 0.66 $ (0.17) $ 1.16
II. Diluted Net Income (Loss) Per Common Share
Net Income (Loss) $ 145 $ 448 $ (98) $ 791
ESOP expense adjustment, net of tax (6) 2 - 4
Accrued dividends on ESOP preferred
stock, net - - (17) -
Interest on convertible debt,
net of tax - 4 - 8
Adjusted net income (loss) $ 139 $ 454 $ (115) $ 803
Average common shares outstanding
during the period 666,360 659,234 666,031 659,994
Stock options, incentive and
exchangeable shares 6,148 11,837 921 11,202
Convertible debt 5,287 13,190 - 13,190
ESOP preferred stock 51,004 52,433 - 52,337
Adjusted average shares outstanding
for the period 728,799 736,694 666,952 736,723
Diluted earnings (loss) per share $ 0.19 $ 0.62 $ (0.17) $ 1.09
