Xerox 2013 Annual Report Download - page 92

pro rata portion of the aggregate unamortized net actuarial losses upon settlement. The pro rata factor is computed
as the percentage reduction in the projected benefit obligation due to the settlement of the participant's vested
benefit.
Refer to Note 15 - Employee Benefit Plans for further information regarding our Pension and Post-Retirement
Benefit Obligations.
Foreign Currency Translation and Re-measurement
The functional currency for most foreign operations is the local currency. Net assets are translated at current rates
of exchange and income, expense and cash flow items are translated at average exchange rates for the applicable
period. The translation adjustments are recorded in Accumulated other comprehensive loss.
The U.S. Dollar is used as the functional currency for certain foreign subsidiaries that conduct their business in U.S.
Dollars. A combination of current and historical exchange rates is used in re-measuring the local currency
transactions of these subsidiaries and the resulting exchange adjustments are recorded in Currency (gains) and
losses within Other expenses, net together with other foreign currency remeasurments.
Note 2 – Segment Reporting
Our reportable segments are aligned with how we manage the business and view the markets we serve. We report
our financial performance based on the following two primary reportable segments – Services and Document
Technology. Our Services segment operations involve delivery of a broad range of services including business
process, document and IT outsourcing. Our Document Technology segment includes the sale and support of a
broad range of document systems from entry level to high-end.
The Services segment is comprised of three outsourcing service offerings:
• Business Process Outsourcing (BPO)
• Document Outsourcing (which includes Managed Print Services) (DO)
• Information Technology Outsourcing (ITO)
Business process outsourcing services include service arrangements where we manage a customer’s business
activity or process. 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 applications and tools and the management of their printing needs. Document outsourcing also includes
revenues from our partner print services offerings. 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.
Our Document Technology segment is centered on strategic product groups, which share common technology,
manufacturing and product platforms. Our product groupings range from:
• “Entry,” which includes A4 devices and desktop printers; to
• “Mid-range,” which includes A3 devices that generally serve workgroup environments in mid 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.
Customers range from small and mid-sized businesses to large enterprises. Customers also include graphic
communication enterprises as well as channel partners including distributors and resellers. Segment revenues
reflect the sale of document systems and supplies, technical services and product financing.
The segment classified as Other includes several units, none of which meet the thresholds for separate segment
reporting. This group includes paper sales in our developing market countries, 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.
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