Xerox 2011 Annual Report Download - page 69

67Xerox 2011 Annual Report
Document outsourcing services include service arrangements that allow
customers to streamline, simplify and digitize their document-intensive
business processes through automation and deployment of software
application and tools and the management of their printing needs.
Document outsourcing also includes revenues from our partner print
services offerings. Business process outsourcing services includes service
arrangements where we manage a customer’s business activity or process.
Information technology outsourcing services include service arrangements
where we manage a customer’s IT-related activities, such as application
management and application development, data center operations or
testing and quality assurance.
The segment classified as Other includes several units, none of which
meets the thresholds for separate segment reporting. This group primarily
includes Xerox Supplies Business Group (predominantly paper sales), Wide
Format Systems, licensing revenues, GIS network integration solutions
and electronic presentation systems and non-allocated Corporate items
including non-financing interest, as well as other items included in Other
expenses, net.
Our Technology segment is centered on strategic product groups, which
share common technology, manufacturing and product platforms. This
segment includes the sale of document systems and supplies, technical
services and product financing. Our products range from:
•“Entry,”which includes A4 devices and desktop printers; to
•“Mid-range,” which includes A3 devices that generally serve workgroup
environments in midsize to large enterprises and includes products that
fall into the following market categories: Color 41+ ppm priced at less
than $100K and Light Production 91+ ppm priced at less than $100K; to
•“High-end,” which includes production printing and publishing systems
that generally serve the graphic communications marketplace and
large enterprises.
The Services segment is comprised of three outsourcing service offerings:
•Document Outsourcing (which includes Managed Print Services) (“DO”)
•Business Process Outsourcing (“BPO”)
•Information Technology Outsourcing (“ITO”).
Selected financial information for our Operating segments was as follows:
Years Ended December 31,
Services Technology Other Total
2011(1)
Revenue $ 10,754 $ 9,722 $ 1,518 $ 21,994
Finance income 83 537 12 632
Total Segment Revenue $ 10,837 $ 10,259 $ 1,530 $ 22,626
Interest expense 25 202 251 478
Segment profit (loss)(2) 1,207 1,140 (255) 2,092
Equity in net income of unconsolidated affiliates 31 118 — 149
2010(1)
Revenue $ 9,548 $ 9,790 $ 1,635 $ 20,973
Finance income 89 559 12 660
Total Segment Revenue $ 9,637 $ 10,349 $ 1,647 $ 21,633
Interest expense $ 28 $ 212 $ 352 $ 592
Segment profit (loss)(2) 1,132 1,085 (342) 1,875
Equity in net income of unconsolidated affiliates 16 62 — 78
2009(1)
Revenue $ 3,373 $ 9,470 $ 1,623 $ 14,466
Finance income 103 597 13 713
Total Segment Revenue $ 3,476 $ 10,067 $ 1,636 $ 15,179
Interest expense $ 36 $ 229 $ 262 $ 527
Segment profit (loss)(2) 231 949 (342) 838
Equity in net income of unconsolidated affiliates 8 33 — 41
(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) Depreciation and amortization expense, which is recorded in cost of sales, RD&E and SAG, is included in segment profit 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.
Notes to the Consolidated
Financial Statements
(in millions, except per-share data and where otherwise noted)