Xerox 2014 Annual Report Download - page 49

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Revenue Results Summary
Total Revenue
Revenue for the three years ended December 31, 2014 was as follows:
Revenues Change Percent of Total Revenue
(in millions) 2014 2013 2012 2014 2013 2014 2013 2012
Equipment sales $ 3,104 $ 3,358 $3,476 (8)% (3)% 16% 17% 17%
Annuity revenue 16,436 16,648 16,945 (1)% (2)% 84% 83% 83%
Total Revenue $ 19,540 $ 20,006 $ 20,421 (2)% (2)% 100%100%100%
Reconciliation to
Consolidated Statements of
Income:
Sales $ 5,288 $ 5,582 $5,827
Less: Supplies, paper and other
sales (2,184) (2,224) (2,351)
Equipment Sales $ 3,104 $ 3,358 $3,476 (8)% (3)% 16% 17% 17%
Outsourcing, maintenance and
rentals $ 13,865 $ 13,941 $ 13,997 (1)% — % 71% 70% 69%
Add: Supplies, paper and other
sales 2,184 2,224 2,351 (2)% (5)% 11% 11% 11%
Add: Financing 387 483 597 (20)% (19)% 2% 2% 3%
Annuity Revenue $ 16,436 $ 16,648 $ 16,945 (1)% (2)% 84% 83% 83%
Revenue 2014
Total revenues decreased 2% compared to the prior year with no impact from currency. Total revenues included the
following:
•Annuity revenue decreased 1% compared to prior year with no impact from currency. Annuity revenue is
comprised of the following:
Outsourcing, maintenance and rentals revenue includes outsourcing revenue within our Services segment
and maintenance revenue (including bundled supplies) and rental revenue, both primarily within our
Document Technology segment. Revenues of $13,865 million decreased 1% from the prior year with a 1-
percentage point negative impact from currency. The decrease was due to a decline in the Document
Technology segment partially offset by growth in outsourcing revenue within our Services segment.
Supplies, paper and other sales includes unbundled supplies and other sales, primarily within our
Document Technology segment. Revenues of $2,184 million decreased 2% from the prior year with no
impact from currency. The decrease was primarily driven by moderately lower supplies demand and a
decline in other sales revenue.
Financing revenue is generated from financed sale transactions primarily within our Document Technology
segment. Financing revenues decreased 20% from the prior year due primarily to $40 million in pre-tax
gains on finance receivable sales in the second half of 2013 as well as a lower finance receivable balance
mostly as a result of prior period sales of finance receivables and lower originations due to decreased
equipment sales. Refer to the discussion on Sales of Finance Receivable in the Capital Resources and
Liquidity section as well as Note 6 - Finance Receivables, Net in the Consolidated Financial Statements for
additional information.
•Equipment sales revenue is reported primarily within our Document Technology segment and the Document
Outsourcing business within our Services segment. Equipment sales revenue decreased 8% from the prior
year, including a 1-percentage point negative impact from currency. Lower installs across the majority of our
product groupings, lower sales in entry products due to product launch timing and overall price declines that
were at the low-end of our historical 5% to 10% range contributed to the decline. Equipment sales were also
impacted by lower sales in developing markets, and particularly lower sales in Russia due to economic
instability.
Xerox 2014 Annual Report 34