Xerox 2012 Annual Report Download - page 82

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Notes to Consolidated Financial Statements
(in millions, except per-share data and where otherwise noted)
80
Note 9 – Goodwill and Intangible Assets, Net
Goodwill
The following table presents the changes in the carrying amount of
goodwill, by reportable segment:
Document
Services Technology Total
Balance at December 31, 2009 (1) $ 1,295 $ 2,127 $ 3,422
Foreign currency translation (22) (25) (47)
Acquisitions:
ACS 5,127 – 5,127
EHRO 77 – 77
TMS 35 – 35
IBS – 14 14
Other 10 11 21
Balance at December 31, 2010 $ 6,522 $ 2,127 $ 8,649
Foreign currency translation (28) (6) (34)
Acquisitions:
Unamic/HCN 43 – 43
Breakaway 33 – 33
ESM 28 – 28
Concept Group – 26 26
MBM – 20 20
Other 21 17 38
Balance at December 31, 2011 $ 6,619 $ 2,184 $ 8,803
Foreign currency translation 41 34 75
Acquisitions:
WDS 69 – 69
R.K. Dixon – 30 30
Other 51 34 85
Balance at December 31, 2012 $ 6,780 $ 2,282 $ 9,062
(1) Includes the reallocation of approximately $300 of goodwill related to our Managed
Print Services business from Document Technology to Services to reflect the current
composition of our Segments.
Transactions with Fuji Xerox
We receive dividends from Fuji Xerox, which are reflected as a reduction
in our investment. Additionally, we have a Technology Agreement
with Fuji Xerox whereby we receive royalty payments for their use
of our Xerox brand trademark, as well as rights to access our patent
portfolio in exchange for access to their patent portfolio. These
payments are included in Outsourcing, service and rental revenues in
the Consolidated Statements of Income. We also have arrangements
with Fuji Xerox whereby we purchase inventory from and sell inventory
to Fuji Xerox. Pricing of the transactions under these arrangements is
based upon terms the Company believes to be negotiated at arm’s
length. Our purchase commitments with Fuji Xerox are in the normal
course of business and typically have a lead time of three months. In
addition, we pay Fuji Xerox and they pay us for unique research and
development costs.
Transactions with Fuji Xerox were as follows:
Year Ended December 31,
2012 2011 2010
Dividends received from Fuji Xerox $ 52 $ 58 $ 36
Royalty revenue earned 132 128 116
Inventory purchases from Fuji Xerox 2,069 2,180 2,098
Inventory sales to Fuji Xerox 147 151 147
R&D payments received from Fuji Xerox 2 2 1
R&D payments paid to Fuji Xerox 15 21 30
As of December 31, 2012 and 2011, net amounts due to Fuji Xerox
were $110 and $105, respectively.