Xerox 2012 Annual Report Download - page 21

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19Xerox 2012 Annual Report
Services: $11,528
Our Services segment comprises three service offerings: Business Process
Outsourcing (“BPO”), Information Technology Outsourcing (“ITO”) and
Document Outsourcing (“DO”).
Document Technology: $9,462
Document Technology includes the sale of products and supplies, as well
as the associated technical service and financing of those products.
Other: $1,400
The Other segment primarily includes revenue from paper sales,
wide-format systems, network integration solutions and electronic
presentation systems from Global Imaging Systems (“GIS”).
Segment Information
Our reportable segments are Services, Document Technology 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 small and mid-size businesses (“SMBs”) to graphic
communications companies, governmental entities, educational
institutions and Fortune 1000 corporate accounts. None of our
business segments depend upon a single customer, or a few customers,
the loss of which would have a material adverse effect on our business.
Investment in R&D is critical for competitiveness in our fast-paced
markets. One of the ways that we maintain our market leadership is
through strategic coordination of our R&D with Fuji Xerox (an equity
investment in which we maintain a 25 percent ownership interest).
We have aligned our R&D investment portfolio with our growth
initiatives, including enhancing customer value by building on our
Services leadership as well as accelerating our color leadership.
Our total research, development and engineering expenses (including
sustaining engineering expenses, which are the hardware engineering
and software development costs incurred after we launch a product)
totaled $655 million in 2012, $721 million in 2011 and $781 million
in 2010. Fuji Xerox R&D expenses were $860 million in 2012,
$880 million in 2011 and $821 million in 2010.
RD&E Expenses (in millions)
Revenues by Business Segment (in millions)
$11,528
$9,462
$1,400
Revenues by Business Segment
Our Services segment is the largest segment within the company,
with $11,528 million in revenue in 2012, representing 52 percent
of total revenue. The Document Technology segment contributed
$9,462 million in revenue, representing approximately 42 percent
of total revenue, while the Other segment contributed $1,400 million
in revenue representing approximately 6 percent of total revenue.
200
0
400
600
800
‘10 ‘11 ‘12
$781
$721
$655
Fuji Xerox R&D Investments:
2010: $821
2011: $880
2012: $860