2008 Segment Reporting Change
In the first quarter of 2008, we will be revising our segment reporting to integrate DMO into the Production, Office and Other segments. DMO is a geography which has matured to a level where we will begin to manage it consistent with our North American and European geographies, which is on the basis of products sold. However, we will continue to provide DMO’s revenue and profit as a supplemental disclosure through 2008.
Segment Revenue and Profit, as presented below, were reclassified for the above change, as well as for certain other miscellaneous revenue and expense reallocations. The following table reflects the restatement of selected financial information for our operating segments for each of the years ended December 31, 2007, 2006 and 2005, respectively, on the new basis (in millions):
| Production | Office | Other | Total | |||||||||||||
| 2007 | ||||||||||||||||
| Equipment sales | $ | 1,471 | $ | 3,030 | $ | 252 | $ | 4,753 | ||||||||
| Post sale and other revenue | 3,530 | 5,950 | 2,173 | 11,653 | ||||||||||||
| Finance income | 314 | 493 | 15 | 822 | ||||||||||||
| Total Segment revenues | $ | 5,315 | $ | 9,473 | $ | 2,440 | $ | 17,228 | ||||||||
| Segment profit | $ | 562 | $ | 1,115 | $ | (89 | ) | $ | 1,588 | |||||||
| Operating Margin | 10.6 | % | 11.8 | % | (3.7 | )% | 9.2 | % | ||||||||
| 2006 | ||||||||||||||||
| Equipment sales | $ | 1,491 | $ | 2,786 | $ | 180 | $ | 4,457 | ||||||||
| Post sale and other revenue | 3,244 | 5,421 | 1,933 | 10,598 | ||||||||||||
| Finance income | 320 | 505 | 15 | 840 | ||||||||||||
| Total Segment revenues | $ | 5,055 | $ | 8,712 | $ | 2,128 | $ | 15,895 | ||||||||
| Segment profit | $ | 504 | $ | 1,010 | $ | (124 | ) | $ | 1,390 | |||||||
| Operating Margin | 10.0 | % | 11.6 | % | (5.8 | )% | 8.7 | % | ||||||||
| 2005 | ||||||||||||||||
| Equipment sales | $ | 1,492 | $ | 2,830 | $ | 197 | $ | 4,519 | ||||||||
| Post sale and other revenue | 3,126 | 5,300 | 1,881 | 10,307 | ||||||||||||
| Finance income | 346 | 516 | 13 | 875 | ||||||||||||
| Total Segment revenues | $ | 4,964 | $ | 8,646 | $ | 2,091 | $ | 15,701 | ||||||||
| Segment profit | $ | 517 | $ | 931 | $ | 13 | $ | 1,461 | ||||||||
| Operating Margin | 10.4 | % | 10.8 | % | 0.6 | % | 9.3 | % | ||||||||
The following table provides segment revenue and operating profit for the 2007 quarterly periods (in millions):
| Three Months Ended | ||||||||||||||||||||
| Mar. 31 | Jun. 30 | Sep. 30 | Dec. 31 | Total | ||||||||||||||||
| Segment Revenue: | ||||||||||||||||||||
| Production | $ | 1,194 | $ | 1,281 | $ | 1,286 | $ | 1,554 | $ | 5,315 | ||||||||||
| Office | 2,105 | 2,327 | 2,384 | 2,657 | 9,473 | |||||||||||||||
| Other | 537 | 600 | 632 | 671 | 2,440 | |||||||||||||||
|
Total |
$ | 3,836 | $ | 4,208 | $ | 4,302 | $ | 4,882 | $ | 17,228 | ||||||||||
|
Segment Profit / (Loss): |
||||||||||||||||||||
| Production | $ | 119 | $ | 111 | $ | 126 | $ | 206 | $ | 562 | ||||||||||
| Office | 259 | 267 | 259 | 330 | 1,115 | |||||||||||||||
| Other | (16 | ) | (31 | ) | (25 | ) | (17 | ) | (89 | ) | ||||||||||
|
Total |
$ | 362 | $ | 347 | $ | 360 | $ | 519 | $ | 1,588 | ||||||||||
