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13Xerox 2009 Annual Report
Cash Generation
Our consistent strong cash flow from operations is driven by recurring
revenues; this, along with modest capital investments, will enable us to
pay down the debt associated with the ACS acquisition and continue
to provide a return to shareholders through:
• Expanding through acquisitions our distribution and business
process outsourcing capabilities;
• Buying back shares under our share repurchase program once
debt leverage targets are met; and
• Maintaining our quarterly dividend.
Expanded Earnings
We anticipate expanding our future earnings through:
• Modest revenue growth;
• Driving cost efficiencies to balance gross profit and expense;
• Leveraging share repurchase; and
• Making accretive acquisitions.
Segment Information
Our reportable segments are Production, Office and Other.
We present operating segment financial information in Note 2 –
Segment Reporting in the Consolidated Financial Statements, which
we incorporate by reference here. We have a very broad and diverse
base of customers by both geography and industry, ranging from
SMB to graphic communications companies, governmental entities,
educational institutions and large Fortune 1000 corporate accounts.
None of our business segments depends upon a single customer, or
a few customers, the loss of which would have a material adverse
effect on our business.
We are still evaluating and assessing the impact of the ACS
acquisition on our internal organizational and reporting structure,
as well as its related impact on our reportable segment disclosures.
Accordingly, in the first quarter 2010, we currently expect to report
ACS as a separate reportable segment pending completion of that
evaluation and assessment.
Revenues by Business Segment
(in millions)
n฀฀$8,576 Office
Our Office segment serves global, national and small to
mid-size commercial customers, as well as government,
education and other public sector customers.
n฀฀
$4,545 Production
Our Production segment provides high-end digital
monochrome and color systems designed for customers
in the graphic communications industry and for large
enterprises.
n฀฀$2,058 Other
Our Other segment primarily includes revenue from paper
sales, wide-format systems, value-added services, and
Global Imaging Systems network integration solutions
and electronic presentation systems.
$4,545
$2,058
$8,576