Xerox 2015 Annual Report Download - page 112

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Transactions with Fuji Xerox were as follows:
Year Ended December 31,
2015 2014 2013
Dividends received from Fuji Xerox $ 51 $ 58 $ 60
Royalty revenue earned 102 115 118
Inventory purchases from Fuji Xerox 1,728 1,831 1,903
Inventory sales to Fuji Xerox 108 120 145
R&D payments received from Fuji Xerox 1 12
R&D payments paid to Fuji Xerox 7 17 21
As of December 31, 2015 and 2014, net amounts due to Fuji Xerox were $307 and $339, respectively.
Note 10 - Goodwill and Intangible Assets, Net
Goodwill
The following table presents the changes in the carrying amount of goodwill, by reportable segment:
Services
Document
Technology Total
Balance at December 31, 2013 $6,815 $2,390 $9,205
Foreign currency translation (98)(56)(154)
Acquisitions:
Invoco 39 —39
ISG 166 — 166
Consilience 23 —23
Other 21921
Divestitures (1) (495)— (495)
Balance at December 31, 2014 $6,452 $2,353 $8,805
Foreign currency translation (95)(38)(133)
Acquisitions:
RSA Medical 107 — 107
Intellinex 19 —19
Other 19 625
Balance at December 31, 2015 $6,502 $2,321 $8,823
___________
(1) Primarily represents goodwill related to our ITO business ($487), which was held for sale and reported as a discontinued operation through
its date of sale on June 30, 2015. Refer to Note 4 - Divestitures for additional information regarding this sale.
Intangible Assets, Net
Net intangible assets were $1,765 at December 31, 2015 of which $1,479 relate to our Services segment and $286
relate to our Document Technology segment. Intangible assets were comprised of the following:
December 31, 2015 December 31, 2014
Weighted
Average
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Customer relationships 12 years $ 3,435 $1,906 $1,529 $3,301 $1,532 $1,769
Distribution network 25 years 123 79 44 123 74 49
Trademarks 20 years 270 98 172 274 87 187
Technology, patents and
non-compete 9 years 32 12 20 40 14 26
Total Intangible Assets $
3,860 $2,095 $1,765 $3,738 $1,707 $2,031
Amortization expense related to intangible assets was $310, $315, and $305 for the years ended December 31,
2015, 2014 and 2013, respectively. Excluding the impact of additional acquisitions, amortization expense is
expected to approximate $319 in 2016 and $315 in each of the years 2017 through 2020.
95