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Segment Reporting
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
Our reportable segments are aligned with how we manage the business and view the markets we serve. We report our financial performance based on the following two primary reportable segments – Services and Technology. Our Services segment operations involve delivery of a broad range of services including business process, document and IT outsourcing. Our Technology segment includes the sale and support of a broad range of document systems from entry level to high-end.
The Services segment is comprised of three outsourcing service offerings:
 
•
Business Process Outsourcing ("BPO")
•
Document Outsourcing (which includes Managed Print Services) ("DO")
•
Information Technology Outsourcing ("ITO")
Business process outsourcing services include service arrangements where we manage a customer’s business activity or process. Document outsourcing services include service arrangements that allow customers to streamline, simplify and digitize document-intensive business processes through automation and deployment of software applications and tools and the management of their printing needs. Document outsourcing services also include revenues from our partner print services offerings. Information technology outsourcing services include service arrangements where we manage a customer’s IT-related activities, such as application management and application development, data center operations or testing and quality assurance.
Our Technology segment is centered on strategic product groups, which share common technology, manufacturing and product platforms. This segment includes the sale of document systems and supplies, technical services and product financing. Our products range from:
 
•
“Entry,” which includes A4 devices and desktop printers; to
•
“Mid-range,” which includes A3 devices that generally serve workgroup environments in midsize to large enterprises and includes products that fall into the following market categories: Color 41+ ppm priced at less than $100K and Light Production 91+ ppm priced at less than $100K; to
•
“High-end,” which includes production printing and publishing systems that generally serve the graphic communications marketplace and large enterprises.
The segment classified as Other includes several units, none of which meet the thresholds for separate segment reporting. This group primarily includes Global Paper and Supplies Distribution Group (predominantly paper sales), licensing revenues, GIS network integration solutions and electronic presentation systems and non-allocated Corporate items including non-financing interest, as well as other items included in Other expenses, net.
Operating segment revenues and profitability were as follows:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
Segment Revenue
 
Segment Profit (Loss)
 
Segment Revenue
 
Segment Profit (Loss)
2012
 
 
 
 
 
 
 
Services
$
2,847

 
$
269

 
$
8,474

 
$
830

Technology
2,259

 
245

 
6,967

 
758

Other
317

 
(62
)
 
1,026

 
(182
)
Total
$
5,423

 
$
452

 
$
16,467

 
$
1,406

2011
 
 
 
 
 
 
 
Services
$
2,717

 
$
323

 
$
7,973

 
$
911

Technology
2,500

 
258

 
7,547

 
824

Other
366

 
(86
)
 
1,142

 
(225
)
Total
$
5,583

 
$
495

 
$
16,662

 
$
1,510


 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Reconciliation to Pre-tax Income
 
2012
 
2011
 
2012
 
2011
Segment Profit
 
$
452

 
$
495

 
$
1,406

 
$
1,510

Reconciling items:
 
 
 
 
 
 
 
 
Restructuring and asset impairment charges
 
(14
)
 
4

 
(60
)
 
28

Restructuring charges of Fuji Xerox
 
(5
)
 
(1
)
 
(15
)
 
(16
)
Amortization of intangible assets
 
(82
)
 
(87
)
 
(246
)
 
(259
)
Equity in net income of unconsolidated affiliates
 
(34
)
 
(43
)
 
(105
)
 
(111
)
Loss on early extinguishment of liability
 
—

 
—

 
—

 
(33
)
Other
 
—

 
(1
)
 
1

 
(1
)
Pre-tax Income
 
$
317

 
$
367

 
$
981

 
$
1,118