Xerox 2004 Annual Report Download - page 51

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49
Production Office DMO Other Total
2004(1)
Information about profit or loss:
Revenues $4,238 $ 7,075 $1,697 $1,778 $14,788
Finance income 352 552 10 20 934
Total segment revenues $4,590 $ 7,627 $1,707 $1,798 $15,722
Interest expense (2) $115 $ 163 $ 12 $ 418 $ 708
Segment profit (loss) (3)(4) 388 798 43 (29) 1,200
Equity in net income of unconsolidated affiliates — — 3 148 151
2003 (1)
Information about profit or loss:
Revenues $4,131 $7,048 $1,751 $1,774 $14,704
Finance income 376 594 12 15 997
Total segment revenues $4,507 $7,642 $1,763 $1,789 $15,701
Interest expense (2) $ 121 $ 181 $ 34 $ 548 $ 884
Segment profit (loss) (3)(4) 401 742 172 (327) 988
Equity in net income of unconsolidated affiliates — 1 6 51 58
2002 (1)
Information about profit or loss:
Revenues $4,089 $6,888 $1,866 $2,006 $14,849
Finance income 393 599 19 (11) 1,000
Total segment revenues $4,482 $ 7,487 $1,885 $1,995 $15,849
Interest expense (2) $157$ 223 $ 17 $ 499 $ 896
Segment profit (loss) (3)(4) 436 612 120 (335) 833
Equity in net income of unconsolidated affiliates — — 5 49 54
(1) Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our chief executive officer.
(2) Interest expense includes equipment financing interest as well as non-financing interest, which is a component of Other expenses, net.
(3) Other segment profit (loss) includes net corporate expenses of $524, $529 and $362 for the years ended December 31, 2004, 2003 and 2002, respectively.
(4) Depreciation and amortization expense is recorded in cost of sales, research and development expenses and selling, administrative and general expenses and
is included in the segment profit (loss) above. This information is neither identified nor internally reported to our chief executive officer. The separate identifica-
tion of this information for purposes of segment disclosure is impracticable, as it is not readily available and the cost to develop it would be excessive.
products, color laser, solid ink and monochrome laser
desktop printers, digital and light-lens copiers and fac-
simile products. These products are sold through direct
and indirect sales channels in North America and
Europe to global, national and mid-size commercial
customers as well as government, education and other
public sector customers.
The DMO segment includes our operations in
Latin America, Central and Eastern Europe, the
Middle East, India, Eurasia, Russia and Africa. This
segment includes sales of products that are typical to
the aforementioned segments; however, management
serves and evaluates these markets on an aggregate
geographic basis, rather than on a product basis.
The segment classified as Other includes several
units, none of which met the thresholds for separate
segment reporting. This group primarily includes
Xerox Supplies Business Group (predominantly
paper), Small Office/Home Office (“SOHO”), Wide
Format Systems, Xerox Technology Enterprises and
value-added services, royalty and license revenues.
Other segment profit(loss) includes the operating
results from these entities, other less significant
businesses, our equity income from Fuji Xerox, and
certain costs which have not been allocated to the
Production, Office and DMO segments, including
non-financing interest and other corporate costs.
Operating segment financial information for 2003
and 2002 has been restated to reflect changes in operat-
ing segment structure made during 2004. The changes
made in 2004 relate to the reclassification of the opera-
tions of our Central and Eastern European entities to
DMO to align our segment reporting with how we
manage our business. Operating profit was reclassified
for this change, as well as for certain other expense
allocations. The adjustments (decreased) increased full
year 2003 revenues as follows: Production-$(40), Office-
$(61), DMO-$147 and Other-$(46). The full year 2003
segment profit was (decreased) increased as follows:
Production-$(21), Office-$(11), DMO-$21, and Other-
$11. The adjustments (decreased) increased full year
2002 revenues as follows: Production-$(40), Office-
$(54), DMO-$127, and Other-$(33). The full year 2002
segment profit was (decreased) increased as follows:
Production-$(14), Office-$(9), DMO-$29, and Other-
$(6). Selected financial information for our operating
segments for each of the three years ended December
31, 2004 was as follows: