Xerox 2014 Annual Report Download - page 93

Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is
as follows for the three years ended December 31:
Revenues Long-Lived Assets (1) (2)
2014 2013 2012 2014 2013 2012
United States $ 13,041 $ 13,272 $13,323 $1,758 $1,870 $1,966
Europe 4,428 4,414 4,599 632 761 784
Other areas 2,071 2,320 2,499 240 243 262
Total Revenues and Long-Lived Assets $ 19,540 $ 20,006 $20,421 $2,630 $2,874 $3,012
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(1) Long-lived assets are comprised of (i) land, buildings and equipment, net, (ii) equipment on operating leases, net, (iii) internal use software,
net and (iv) product software, net.
(2) Long-lived assets at December 31, 2014 includes $241 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.
Note 3 – Acquisitions
2014 Acquisitions
In September 2014, we acquired Consilience Software, Inc. (Consilience) for approximately $25 in cash.
Consilience provides case management and workflow automation software solutions to the public sector.
Consilience's proprietary Maven Case Management software system uses data and process analytics to help
government agencies extract more value from their information. The intelligent case management system
automates workflows for document- and labor-intensive processes and integrates previously siloed legacy systems
for accelerated decision-making.
In May 2014, we acquired ISG Holdings, Inc. (ISG) for approximately $225 in cash. The acquisition of ISG
enhances our Services segment by providing a comprehensive workers' compensation suite of offerings to the
property and casualty sector. In addition, the acquisition expands our services to property and casualty insurance
carriers, third-party administrators, managed care services providers, governments and self-administered employers
who require comprehensive reviews of medical bills and implementation of care management plans stemming from
workers' compensation claims.
In January 2014, we acquired Invoco Holding GmbH (Invoco), a German company, for approximately $54 (€40
million) in cash. The acquisition of Invoco expands our European customer care services and provides our global
customers immediate access to German-language customer care services and provides Invoco's existing
customers access to our broad business process outsourcing capabilities.
The 2014 acquisitions noted above are included in our Services segment. Additionally, during 2014, our Services
segment acquired one additional business for $2 in cash and our Document Technology segment acquired two
businesses for approximately $34 in cash, which expanded our distribution capability of products and services in
North America.
2014 Summary
All of our 2014 acquisitions reflected 100% ownership of the acquired companies. The operating results of the
acquisitions described above are not material to our financial statements and are included within our results from
their respective acquisition dates. Our 2014 acquisitions contributed aggregate revenues of approximately $132 to
our 2014 total revenues from their respective acquisition dates. The purchase prices for all acquisitions were
primarily allocated to intangible assets and goodwill based on third-party valuations and management's estimates.
The primary elements that generated the goodwill are the value of synergies and the acquired assembled
workforce. Approximately 50% of the goodwill recorded in 2014 is expected to be deductible for tax purposes. Refer
to Note 10 - Goodwill and Intangible Assets, Net for additional information.
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