Xerox 2013 Annual Report Download - page 107

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Intangible Assets, Net
Net intangible assets were $2.5 billion at December 31, 2013 and approximately $2.1 billion relate to our Services
segment and $0.4 billion relate to our Document Technology segment. Intangible assets were comprised of the
following:
December 31, 2013 December 31, 2012
Weighted
Average
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Customer relationships 12 years $ 3,580 $1,359 $2,221 $3,562 $1,052 $2,510
Distribution network 25 years 123 69 54 123 64 59
Trademarks(1) 20 years 269 72 197 257 59 198
Technology, patents and
non-compete(1) 9 years 41 10 31 23 716
Total Intangible Assets $ 4,013 $1,510 $2,503 $3,965 $1,182 $2,783
_______________
(1) Includes $10 and $5 of indefinite-lived assets within trademarks and technology, respectively, related to the 2010 acquisition of ACS.
Amortization expense related to intangible assets was $332, $328, and $401 for the years ended December 31,
2013, 2012 and 2011, respectively.
Excluding the impact of additional acquisitions, amortization expense is expected to approximate $327 in 2014 and
2015, and $323 in years 2016 through 2018.
Note 10 – Restructuring and Asset Impairment Charges
Over the past several years, we have engaged in a series of restructuring programs related to downsizing our
employee base, exiting certain activities, outsourcing certain internal functions and engaging in other actions
designed to reduce our cost structure and improve productivity. These initiatives primarily consist of severance
actions and impact all major geographies and segments. Management continues to evaluate our business,
therefore, in future years, there may be additional provisions for new plan initiatives as well as changes in
previously recorded estimates, as payments are made or actions are completed. Asset impairment charges were
also incurred in connection with these restructuring actions for those assets sold, abandoned or made obsolete as a
result of these programs.
Costs associated with restructuring, including employee severance and lease termination costs are generally
recognized when it has been determined that a liability has been incurred, which is generally upon communication
to the affected employees or exit from the leased facility, respectively. In those geographies where we have either a
formal severance plan or a history of consistently providing severance benefits representing a substantive plan, we
recognize employee severance costs when they are both probable and reasonably estimable.
Xerox 2013 Annual Report 90