Xerox 2014 Annual Report Download - page 25

Xerox® Versant™ 2100 Press. The 2100 enables full color printing at speeds up to 100 pages per minute, with
outstanding Ultra HD Resolution print quality. The press also incorporates a wide range of automated tools,
including the Production Accurate Registration and the Xerox® Automated Color Quality Suite. These unique
features allow our customers to achieve increased performance, higher quality and better results.
Along with the new Versant 2100 Press, in 2014 we delivered a number of feature enhancements across our entire
cut sheet line which includes the Xerox iGen™, Xerox Color Presses, Xerox Nuvera™, DocuTech™ and
DocuPrint™ series, and Xerox® Wide Format IJP 2000.
Other Segment
The Other segment includes paper sales in our developing market countries, wide-format systems, licensing
revenue, Global Imaging Systems network integration solutions and non-allocated corporate items, including Other
expenses, net. Paper comprised approximately one-third of the revenues in the Other segment in 2014, which is
roughly the same as in 2013.
Geographic Information
Our global presence is one of our core strengths. Overall, 33 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 2014, our revenues by geography were as follows: U.S. - $13,041 million (67 percent of total revenue), Europe -
$4,428 million (23 percent of total revenue), and Other areas - $2,071 million (10 percent of total revenue).
Revenues by geography are based on the location of the unit reporting the revenue and include export sales.
Patents, Trademarks and Licenses
Xerox and its subsidiaries were awarded 1,114 U.S. utility patents in 2014. On that basis, we rank 30th 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 1,950 U.S. utility patents in 2014. Our patent portfolio evolves as new patents are awarded to
us and as older patents expire. As of December 31, 2014, we held almost 12,600 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 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 2014 we added 11 new agreements to our portfolio
of patent-licensing and sale agreements, and Xerox and its subsidiaries were licensor or seller in 7 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, Toshiba
TEC and R.R. Donnelley. These agreements vary in subject matter, scope, compensation, significance and time.
In the U.S., we own more than 450 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 180 countries, providing the industry's broadest portfolio of document technology, services and
software, and the most diverse array of business processes outsourcing solutions, 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
world-wide 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 U.S., sells document management and
network integration systems and services. We continued to expand our distribution to small and mid-size
businesses in 2014 through GIS's acquisition of two companies.
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