Xerox 2014 Annual Report Download - page 103

Download and view the complete annual report

Please find page 103 of the 2014 Xerox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Note 7 – Inventories and Equipment on Operating Leases, Net
The following is a summary of Inventories by major category:
December 31,
2014 2013
Finished goods $778 $837
Work-in-process 58 60
Raw materials 98 101
Total Inventories $934 $998
The transfer of equipment from our inventories to equipment subject to an operating lease is presented in our
Consolidated Statements of Cash Flows in the operating activities section. Equipment on operating leases and
similar arrangements consists of our equipment rented to customers and depreciated to estimated salvage value at
the end of the lease term.
Equipment on operating leases and the related accumulated depreciation were as follows:
December 31,
2014 2013
Equipment on operating leases $ 1,531 $1,575
Accumulated depreciation (1,006) (1,016)
Equipment on Operating Leases, Net $525 $559
Depreciable lives generally vary from three to four years consistent with our planned and historical usage of the
equipment subject to operating leases. Our equipment operating lease terms vary, generally from one to three
years. Scheduled minimum future rental revenues on operating leases with original terms of one year or longer are:
2015 2016 2017 2018 2019 Thereafter
$ 339 $ 246 $ 155 $ 82 $ 34 $ 5
Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum
contracted amounts, for the years ended December 31, 2014, 2013 and 2012 amounted to $149, $151 and $158,
respectively.
Note 8 - Land, Buildings, Equipment and Software, Net
Land, buildings and equipment, net were as follows:
December 31,
Estimated
Useful Lives
(Years) 2014 2013
Land $46$50
Building and building equipment 25 to 50 1,038 1,086
Leasehold improvements Varies 486 483
Plant machinery 5 to 12 1,375 1,493
Office furniture and equipment 3 to 15 1,938 1,826
Other 4 to 20 78 83
Construction in progress 80 66
Subtotal 5,041 5,087
Accumulated depreciation (3,698)(3,621)
Subtotal 1,343 1,466
Discontinued operations (1) (220)—
Land, Buildings and Equipment, Net $ 1,123 $1,466
___________
(1) Represents net fixed assets related to our ITO business which is held for sale and being reported as a discontinued operation at December
31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale.
Xerox 2014 Annual Report 88