Xerox 2012 Annual Report Download - page 26

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24
Geographic Information
Our global presence is one of our core strengths. Overall, approximately
34 percent of our revenue is generated by customers outside the U.S.
We have a significant opportunity to leverage our global presence and
customer relationships to expand our Services business in Europe and
developing markets.
In 2012, our revenues by geography were as follows: United States:
$14,701 million (66 percent of total revenue), Europe: $5,111 million
(23 percent of total revenue) and Other areas: $2,578 million
(11 percent of total revenue).
proprietary rights could be challenged, invalidated or circumvented,
or may not provide significant competitive advantages.
In the U.S., we are party to numerous patent-licensing agreements
and, in a majority of them, we license or assign our patents to others
in return for revenue and/or access to their patents. Most patent
licenses expire concurrently with the expiration of the last patent
identified in the license. In 2012, we added 11 new agreements
to our portfolio of patent-licensing and sale agreements, and Xerox
and its subsidiaries were licensor or seller in all 11 of the agreements.
We are also a party to a number of cross-licensing agreements with
companies that hold substantial patent portfolios, including Canon,
Microsoft, IBM, Hewlett-Packard, Oce, Sharp, Samsung, Seiko Epson
and Toshiba TEC. These agreements vary in subject matter, scope,
compensation, significance and time.
In the U.S., we own more than 500 U.S. trademarks, either registered
or applied for. These trademarks have a perpetual life, subject to renewal
every 10 years. We vigorously enforce and protect our trademarks.
Marketing and Distribution
We operate in over 160 countries worldwide and provide the industry’s
broadest portfolio of document technology, services and software.
And, the most diverse array of business processes and IT outsourcing
support through a variety of distribution channels around the world.
We manage our business based on the principal segments described
earlier. We have organized the marketing, selling and distribution of our
products and services by geography, channel type and line of business.
We go to market with a Services-led approach and sell our products
and services directly to customers through our worldwide sales
force and through a network of independent agents, dealers, value-
added resellers, systems integrators and the Web. In addition, our
wholly-owned subsidiary, Global Imaging Systems (“GIS”), an office
technology dealer which is comprised of regional core companies in
the United States, sells and services document management systems,
network integration devices and electronic presentation systems.
For small and mid-size businesses, we continued to expand our
distribution in 2012 as GIS acquired four companies. Our brand is
a valuable resource and continues to be ranked in the top percentile
of the most valuable global brands.
In Europe, Africa, the Middle East and parts of Asia, we distribute our
products through Xerox Limited, a company established under the laws
of England, and related non-U.S. companies. Xerox Limited enters into
distribution agreements with unaffiliated third parties to distribute
our products in many of the countries located in these regions, and
previously entered into agreements with unaffiliated third parties
distributing our products in Sudan and Syria. Sudan and Syria, among
others, have been designated as state sponsors of terrorism by the
$14,701
$5,111
U.S.: $14,701
Europe: $5,111
Other Areas: $2,578
Revenues by geography are based on the location of the unit reporting the revenue
and include export sales.
Our Business
$2,578
Revenues by Geography (in millions)
Patents, Trademarks and Licenses
Xerox and its subsidiaries were awarded 1,215 U.S. utility patents
in 2012. On that basis, we would rank 20th on the list of companies
that were awarded the most U.S. patents during the year. Including our
research partner Fuji Xerox, we were awarded about 1,900 U.S. utility
patents in 2012. Our patent portfolio evolves as new patents are
awarded to us and as older patents expire. As of December 31, 2012,
we held more than 11,500 U.S. design and utility patents. These
patents expire at various dates up to 20 years or more from their
original filing dates. While we believe that our portfolio of patents
and applications has value, in general no single patent is essential
to our business or any individual segment. In addition, any of our