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):
February 23, 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
The Registrant is releasing its unaudited 1999 financial statements and a
related schedule to the investment community and posting them on its Internet
website in advance of the publication of its 1999 Annual Report to
Shareholders. Copies of these unaudited financial statements and the related
schedule are included as exhibits to this Form 8-K.
Exhibit Index
Exhibit No. Description
1. Consolidated Statements of Income (Unaudited)
2. Consolidated Balance Sheet (Unaudited)
3. Consolidated Statements of Cash Flows (Unaudited)
4. Non-Financing Operations Cash Flow Schedule
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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: February 23, 2000
Exhibit 1
Xerox Corporation
Consolidated Statements of Income (Unaudited)
Year Ended December 31,
(In millions, except per-share data) 1999 1998 1997
Revenues
Sales $10,346 $10,696 $ 9,881
Service and rentals 7,856 7,678 7,257
Finance income 1,026 1,073 1,006
Total Revenues 19,228 19,447 18,144
Costs and Expenses
Cost of sales 5,744 5,662 5,330
Cost of service and rentals 4,481 4,205 3,778
Inventory charges - 113 -
Equipment financing interest 547 570 520
Research and development expenses 979 1,040 1,065
Selling, administrative and general
expenses 5,144 5,321 5,212
Restructuring charge and asset
impairments - 1,531 -
Other, net 297 242 98
Total Costs and Expenses 17,192 18,684 16,003
Income before Income Taxes, Equity Income
and Minorities' Interests 2,036 763 2,141
Income taxes 631 207 728
Equity in net income of
unconsolidated affiliates 68 74 127
Minorities' interests in earnings of
subsidiaries 49 45 88
Income from Continuing Operations 1,424 585 1,452
Discontinued Operations - (190) -
Net Income $ 1,424 $ 395 $ 1,452
Basic Earnings (Loss) per Share
Continuing Operations $ 2.09 $ 0.82 $ 2.16
Discontinued Operations - (0.29) -
Basic Earnings per Share $ 2.09 $ 0.53 $ 2.16
Diluted Earnings (Loss) per Share
Continuing Operations $ 1.96 $ 0.80 $ 2.02
Discontinued Operations - (0.28) -
Diluted Earnings per Share $ 1.96 $ 0.52 $ 2.02
NOTE:
The unaudited consolidated financial statements presented herein have been
prepared by Xerox Corporation in accordance with the accounting policies
described in its 1998 Annual Report to Shareholders. Certain historical
amounts have been restated to reflect reclassifications to conform to the
current presentation. The impact of these changes is not material and did not
affect net income.
Exhibit 2
Xerox Corporation
Consolidated Balance Sheets (Unaudited)
December 31, December 31,
(In millions, except share data in thousands) 1999 1998
Assets
Cash $ 126 $ 79
Accounts receivable, net 2,622 2,671
Finance receivables, net 5,115 5,220
Inventories 2,961 3,269
Deferred taxes and other current assets 1,161 1,236
Total Current Assets 11,985 12,475
Finance receivables due after one year, net 8,203 9,093
Land, buildings and equipment, net 2,456 2,366
Investments in affiliates, at equity 1,615 1,456
Goodwill, net 1,724 1,731
Other assets 1,701 1,233
Investment in discontinued operations 1,130 1,670
Total Assets $ 28,814 $ 30,024
Liabilities and Equity
Short-term debt and current portion of
long-term debt $ 3,957 $ 4,104
Accounts payable 1,016 948
Accrued compensation and benefit costs 630 722
Unearned income 186 210
Other current liabilities 2,161 2,523
Total Current Liabilities 7,950 8,507
Long-term debt 10,994 10,867
Postretirement medical benefits 1,133 1,092
Deferred taxes and other liabilities 2,263 2,711
Discontinued operations liabilities -
policyholders' deposits and other 428 911
Deferred ESOP benefits (299) (370)
Minorities' interests in equity of subsidiaries 127 124
Company-obligated, mandatorily redeemable
preferred securities of subsidiary trust
holding solely subordinated debentures of
the Company 638 638
Preferred stock 669 687
Common shareholders' equity 4,911 4,857
Total Liabilities and Equity $ 28,814 $ 30,024
Shares of common stock issued 665,156 657,196
Shares of common stock outstanding 665,156 656,787
NOTE:
The unaudited consolidated financial statements presented herein have been
prepared by Xerox Corporation in accordance with the accounting policies
described in its 1998 Annual Report to Shareholders. Certain historical
amounts have been restated to reflect reclassifications to conform to the
current presentation. The impact of these changes is not material and did not
affect net income.
Exhibit 3
Xerox Corporation
Consolidated Statements of Cash Flows (Unaudited)
Year ended December 31 (In millions) 1999 1998 1997
Cash Flows from Operating Activities
Income (Loss)from Continuing Operations $ 1,424 $ 585 $ 1,452
Adjustments required to reconcile income to cash
flows from operating activities:
Depreciation and amortization 935 821 739
Provisions for doubtful accounts 359 301 265
Restructuring and other charges - 1,644 -
Provision for postretirement medical
benefits, net of payments 41 33 29
Charges against 1998 restructuring reserve (437) (332) -
Minorities' interests in earnings of subsidiaries 49 45 88
Undistributed equity in income of
affiliated companies (68) (27) (84)
Decrease (increase) in inventories 68 (558) (170)
Increase in on-lease equipment (401) (473) (347)
Increase in finance receivables (1,788) (2,169) (1,629)
Proceeds from securitization of
finance receivables 1,495 - -
Increase in accounts receivable (94) (540) (188)
(Decrease) increase in accounts payable and
accrued compensation and benefit costs (94) 127 250
Net change in current and deferred income taxes 277 (192) 361
Change in other current and non-current liabilities (78) 67 83
Other, net (464) (497) (377)
Total 1,224 (1,165) 472
Cash Flows from Investing Activities
Cost of additions to land, buildings and equipment (594) (566) (520)
Proceeds from sales of land, buildings and equipment 99 74 36
Acquisitions, net of cash acquired (107) (380) (812)
Other, net (25) 5 45
Total (627) (867) (1,251)
Cash Flows from Financing Activities
Net change in debt (97) 2,468 5
Dividends on common and preferred stock (586) (531) (475)
Proceeds from sale of common stock 144 126 140
Repurchase of common and preferred stock - (172) (116)
Dividends to minority shareholders (30) (4) (7)
Proceeds from issuance of mandatorily
redeemable preferred securities - - 637
Total (569) 1,887 184
Effect of Exchange Rate Changes on Cash (9) (29) (18)
Cash provided (used) by Continuing Operations 19 (174) (613)
Cash Provided by Discontinued Operations 28 178 584
Increase (decrease) in Cash 47 4 (29)
Cash at Beginning of Year 79 75 104
Cash at End of Year $ 126 $ 79 $ 75
NOTE:
The unaudited consolidated financial statements presented herein have been
prepared by Xerox Corporation in accordance with the accounting policies
described in its 1998 Annual Report to Shareholders. Certain historical
amounts have been restated to reflect reclassifications to conform to the
current presentation. The impact of these changes is not material and did not
affect net income.
Exhibit 4
Xerox Corporation
Non-Financing Operations Cash Flow
The following schedule summarizes 1999, 1998 and 1997 document processing
non-financing operations cash generation and usage:
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(In millions) 1999 1998 1997
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Document Processing
Non-Financing:
Income $1,114 $1,381* $1,217
Depreciation and amortization** 935 821 739
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Cash from Operations $2,049 $2,202 $1,956
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Additions to land, building
and equipment (594) (566) (520)
Increase in on-lease
Equipment (401) (473) (347)
Decrease/(increase) in
other inventory 68 (558) (170)
Increase in accounts receivable (94) (540) (188)
All other changes, net (238) 366 295
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Net Cash Generation, Before
Restructuring Charges $ 790 $ 431 $1,026
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Cash charges against 1998
restructuring reserve (437) (332) -
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Net Cash Generation $ 353 $ 99 $1,026
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* Before 1998 restructuring charge.
** Includes rental equipment depreciation of $463, $411 and $311 in 1999,
1998 and 1997, respectively.
