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53Xerox 2010 Annual Report
Management’s Discussion
Services Segment
Year Ended December 31,
As Reported As Reported Pro-forma Pro-forma
(in millions) 2010 2009 2009(1) Change Change
Document outsourcing $ 3,297 $ 3,382 $ 3,382 (3)% (3)%
Business processing outsourcing 5,112 94 4,751 * 8%
Information technology outsourcing 1,249 — 1,246 * —%
Less: Intra-segment eliminations (21) — — * *
Total Revenue – Services $ 9,637 $ 3,476 $ 9,379 177% 3%
Segment Profit – Services $ 1,132 $ 231 $ 1,008 390% 12%
Segment Margin – Services 11.7% 6.6% 10.7% 5.1 pts 1.0 pts
* Percent change not meaningful.
(1) Pro-forma reflects ACS’s 2009 estimated results from February 6 through December 31 adjusted to reflect fair value adjustments related to property, equipment and computer
software as well as customer contract costs. In addition, adjustments were made for deferred revenue, exited businesses, certain non-recurring product sales and other material non-
recurring costs associated with the acquisition.
Forward-Looking Statements
This Annual Report contains forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995. The words
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “should” and
similar expressions, as they relate to us, are intended to identify forward-
looking statements. These statements reflect management’s current
beliefs, assumptions and expectations and are subject to a number of
factors that may cause actual results to differ materially. Information
concerning these factors is included in our 2010 Annual Report on Form
10-K filed with the Securities and Exchange Commission (“SEC”). We
do not intend to update these forward-looking statements, except as
required by law.