Editing Xerox (section)

==Accounting irregularities==
On May 31, 2001, Xerox Corporation announced that its auditors, KPMG LLP, had certified Xerox's financial statements for the three years ended December 31, 2000; the financials included some restatements.<ref>{{cite web |url=http://www.thefreelibrary.com/Xerox+2000+Financial+Statement+Audit+Complete%3B+'After+Rigorous...-a075156139 |title=Xerox 2000 Financial Statement Audit Complete; 'After Rigorous Reviews of Xerox's Accounting, No Fictitious Transactions Were Found and the Company's Liquidity is Not Impacted.' |access-date=September 9, 2013 |archive-date=October 12, 2016 |archive-url=https://web.archive.org/web/20161012071807/https://www.thefreelibrary.com/Xerox+2000+Financial+Statement+Audit+Complete%3B+'After+Rigorous...-a075156139 |url-status=live }}</ref> On March 31, 2002, Xerox restated its financials which reflected the reallocation of equipment sales revenue of more than $2 billion.<ref>{{cite web |url=http://www.crn.com/news/channel-programs/18837711/xerox-agrees-to-pay-fine-to-sec-restate-results.htm |title=Xerox agrees to pay fine to SEC, restate results |date=April 2002 |access-date=September 9, 2013 |archive-date=November 12, 2013 |archive-url=https://web.archive.org/web/20131112062605/http://www.crn.com/news/channel-programs/18837711/xerox-agrees-to-pay-fine-to-sec-restate-results.htm |url-status=live }}</ref> On April 11, 2002, the U.S. [[Securities and Exchange Commission]] filed a complaint against Xerox.<ref>{{cite web |title=SEC v. Xerox Corporation |work=SEC |year=2002 |url=https://www.sec.gov/litigation/complaints/complr17465.htm |access-date=September 18, 2017 |archive-date=August 8, 2002 |archive-url=https://web.archive.org/web/20020808153421/http://www.sec.gov/litigation/complaints/complr17465.htm |url-status=live }}</ref> The complaint alleged Xerox deceived the public between 1997 and 2000 by employing several "accounting maneuvers", the most significant of which was a change in which Xerox recorded revenue from copy machine leases – recognizing a "sale" when a lease contract was signed, instead of recognizing revenue over the entire length of the contract. At issue was when the revenue was recognized, not the validity of the revenue. Xerox's restatement only changed what year the revenue was recognized. On December 20, 2002, Xerox Corporation reported that it had discovered an error in the calculation of its non-cash interest expense related to a debt instrument and associated interest rate swap agreements, resulted in after-tax understatement of interest expense of approximately $5 million to $6 million or less than 1 cent per share in each of the four quarters of 2001 and for the first three quarters of 2002.<ref>{{cite web |url=http://whattheythink.com/news/17176-xerox-restates-reports-adjustment-non-cash-interest/ |title=Xerox Reports Adjustment in Non-Cash Interest Expense |access-date=September 9, 2013 |archive-date=November 12, 2013 |archive-url=https://web.archive.org/web/20131112060345/http://whattheythink.com/news/17176-xerox-restates-reports-adjustment-non-cash-interest/ |url-status=live }}</ref>

In response to the [[U.S. Securities and Exchange Commission|SEC's]] complaint, Xerox Corporation neither admitted nor denied wrongdoing. It agreed to pay a $10 million penalty and to restate its financial results for the years 1997 through 2000. On June 5, 2003, six Xerox senior executives accused of securities fraud settled their issues with the SEC and neither admitted nor denied wrongdoing. They agreed to pay $22 million in penalties, disgorgement, and interest. The company received approval to settle the securities lawsuit in 2008.<ref>{{cite web |url=http://english.pravda.ru/news/business/27-03-2008/104702-xerox_corp-0/ |title=Xerox Corp receives approval to settle securities lawsuit |date=Mar 2008 |access-date=July 22, 2013 |archive-date=October 19, 2014 |archive-url=https://web.archive.org/web/20141019072607/http://english.pravda.ru/news/business/27-03-2008/104702-xerox_corp-0/ |url-status=live }}</ref>

On January 29, 2003, the SEC filed a complaint against Xerox's auditors,<ref>{{cite web |title=Complaint: KPMG LLP et al. |work=SEC |year=2003 |url=https://www.sec.gov/litigation/complaints/comp18389.htm |access-date=September 18, 2017 |archive-date=January 18, 2017 |archive-url=https://web.archive.org/web/20170118122636/https://www.sec.gov/litigation/complaints/comp18389.htm |url-status=live }}</ref> [[KPMG]], alleging four partners in the "Big Five" accounting firm permitted Xerox to "cook the books" to fill a $3 billion "gap" in revenue and $1.4 billion "gap" in pre-tax earnings. In April 2005 KPMG settled with the SEC by paying a US$22.48 million fine.<ref>{{cite web |title=SEC fines Xerox's ex-auditor |work=Democrat and Chronicle |date=April 2005 |url=http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=/20050420/BUSINESS/504200309/1001 |access-date=October 9, 2020 |archive-date=September 23, 2015 |archive-url=https://web.archive.org/web/20150923213500/http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=%2F20050420%2FBUSINESS%2F504200309%2F1001 |url-status=live }}</ref> Meanwhile, Xerox paid a civil penalty of $10 million.<ref>{{cite web |url=http://www.accountingtoday.com/news/27255-1.html |title=KPMG and Xerox Settle Securities Lawsuit |date=Mar 2008 |access-date=July 24, 2013 |archive-date=January 3, 2014 |archive-url=https://web.archive.org/web/20140103151314/http://www.accountingtoday.com/news/27255-1.html |url-status=live }}</ref> As part of the settlement KPMG neither admits nor denies wrongdoings.

During a settlement with the [[Securities and Exchange Commission]], Xerox began to revamp itself once more. As a symbol of this transformation, the relative size of the word "Xerox" was increased in proportion to "The Document Company" on the corporate signature, and the latter was dropped altogether in September 2004, along with the digital X. However, the digital X and "The Document Company" were still used by [[Fuji Xerox]] until April 2008.