NORWALK, Conn., Oct. 8, 2013 — Xerox filed an 8-K report with the Securities and Exchange Commission regarding an SEC investigation into the accounting for certain ACS equipment resale transactions.
The SEC has issued Wells notices to two current and one former Xerox employees. Xerox has cooperated, and will continue to cooperate, fully with the SEC. We have been advised by the SEC staff that no charges will be recommended against Xerox.
At issue is the accounting for certain ACS equipment resale transactions. More than 80% of the revenue related to these transactions occurred in periods prior to Xerox’s acquisition of ACS in 2010. The last transaction occurred in the fourth quarter of 2010. The post-acquisition transactions were not material to Xerox’s consolidated financial statements.
Neither ACS’s nor Xerox’s net income or cash flows associated with these transactions would have been impacted by a change in accounting from gross to net revenue recognition.
We expect the investigation will have no impact on Xerox’s current client business or our operations.
If you’d like to see the 8-K, click here.
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