Xerox 2006 Annual Report Download - page 66

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per-share data and unless otherwise indicated)
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), value-
added services, Wide Format Systems, Xerox Technology
Enterprises, royalty and licensing revenues, equity net
income and non-allocated Corporate items. Value-added
services includes the results of our 2006 acquisition of
Amici LLC. (Refer to Note 20 – Acquisitions for further
information.) 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 as well as other items included in
Other expenses, net.
Selected financial information for our operating segments for each of the years ended December 31, 2006, 2005
and 2004, respectively, was as follows (in millions):
Production Office DMO Other Total
2006(1)
Information about profit or loss:
Revenues ............................................... $4,256 $7,128 $1,932 $1,739 $15,055
Finance income .......................................... 323 497 6 14 840
Total Segment revenues .................................. $4,579 $7,625 $1,938 $1,753 $15,895
Interest expense(2) ........................................ $ 120 $ 179 $ 7 $ 238 $ 544
Segment profit(3) ......................................... 403 832 124 31 1,390
Equity in net income of unconsolidated affiliates ................ $ — $ — $ 5 $ 109 $ 114
2005(1)
Information about profit or loss:
Revenues ............................................... $4,198 $7,106 $1,803 $1,719 $14,826
Finance income .......................................... 342 512 9 12 875
Total Segment revenues .................................. $4,540 $7,618 $1,812 $1,731 $15,701
Interest expense(2) ........................................ $ 121 $ 179 $ 8 $ 249 $ 557
Segment profit(3) ......................................... 427 819 64 151 1,461
Equity in net income of unconsolidated affiliates ................ $ — $ — $ 4 $ 94 $ 98
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) ........................................ $ 114 $ 176 $ 12 $ 406 $ 708
Segment profit (loss)(3) .................................... 511 779 35 (125) 1,200
Equity in net income of unconsolidated affiliates ................ $ — $ — $ 3 $ 148 $ 151
(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) Depreciation and amortization expense is recorded in cost of sales, research, development and engineering
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 identification
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.
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