Financial Highlights
| (in millions, except EPS) | 2016 | 2015 |
| Total revenue | $10,771 | $11,465 |
| Equipment sales | 2,525 | 2,781 |
| Post-sale/annuity revenue | 8,246 | 8,684 |
| Net income from continuing operations – Xerox | 616 | 848 |
| Adjusted net income(1) – Xerox | 921 | 978 |
| Diluted earnings per share from continuing operations | 0.58 | 0.77 |
| Adjusted earnings per share(1) | 0.88 | 0.89 |
| Net cash provided by operating activities | ||
| of continuing operations | 1,018 | 1,078 |
| Adjusted operating margin(1) | 12.5% | 12.7% |
(1) 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
(1) 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, | |||||
| 2016 | 2015 | 2014 | ||||
| (in millions, except per share amounts) | Net Income | EPS | Net Income | EPS | Net Income | EPS |
| As Reported(1) | $616 | $0.58 | $848 | $0.77 | $1,029 | $0.86 |
| Adjustments: | ||||||
| Amortization of intangible assets | 58 | – | 60 | – | 65 | – |
| Restructuring and related costs – Xerox | 264 | – | 27 | – | 106 | – |
| Non-service retirement-related costs | 131 | – | 116 | – | 79 | – |
| Income tax adjustments | (151) | – | (77) | – | (90) | – |
| Restructuring charges – Fuji Xerox | 3 | – | 4 | – | 3 | – |
| Deferred tax liability adjustment | – | – | – | – | (44) | – |
| Adjusted EPS | $921 | $0.88 | $978 | $0.89 | $1,148 | $0.96 |
| Weighted average shares for adjusted EPS(2) | 1,024 | – | 1,076 | – | 1,199 | – |
(1) Net income and EPS from continuing operations. (2) Average shares for the 2016 and 2015 calculation of adjusted EPS exclude 27 million shares associated with our Series A convertible preferred stock, and, therefore, the related annual dividend of $24 million was included. Average shares for the 2014 calculation of adjusted EPS include 27 million shares associated with our Series A convertible preferred stock, and, therefore, the related annual dividend of $24 million was excluded.
| Operating Margin (in millions) | Year Ended December 31, | ||||||||
| 2016 | 2015 | 2014 | |||||||
| Profit | Revenue | Margin | Profit | Revenue | Margin | Profit | Revenue | Margin | |
| Reported Pre-tax Income(1) | $568 | $10,771 | 5.3% | $924 | $11,465 | 8.1% | $1,090 | $12,679 | 8.6% |
| Adjustments: | |||||||||
| Amortization of intangible assets | 58 | – | – | 60 | – | – | 65 | – | – |
| Restructuring and related costs – Xerox | 264 | – | – | 27 | – | – | 106 | – | – |
| Non-service retirement-related costs | 131 | – | – | 116 | – | – | 79 | – | – |
| Other expenses, net | 200 | – | – | 195 | – | – | 185 | – | – |
| Equity in net income of unconsolidated affiliates | 121 | – | – | 135 | – | – | 160 | – | – |
| Adjusted Operating Margin | $1,342 | $10,771 | 12.5% | $1,457 | $11,465 | 12.7% | $1,685 | $12,679 | 13.3% |
(1) Profit and revenue from continuing operations.
Form 10-K
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