DFS Annual Report

Notes to the Consolidated and Combined Financial Statements (in millions, except per share data, unless otherwise indicated)-(Continued) Note 19. Geographic Area and Products and Services Information The table below presents net sales and long-lived assets by geographic region for the years ended December 31, 2016, 2015 and 2014. U.S. Europe Asia Canada Other Consolidated 2016 Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $845.2 $62.4 $39.2 $32.1 $ 4.6 $ 983.5 Long-lived assets (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107.4 3.1 0.6 0.5 — 111.6 2015 Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $900.8 $70.0 $49.3 $23.7 $ 5.7 $1,049.5 Long-lived assets (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96.0 2.7 0.6 0.8 — 100.1 2014 Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $916.3 $73.6 $53.7 $29.9 $ 6.6 $1,080.1 Long-lived assets (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.7 2.3 0.9 1.2 0.1 87.2 (a) Includes net property, plant and equipment, net software and other noncurrent assets. The following table summarizes net sales for services and products for the years ended December 31, 2016, 2015 and 2014. 2016 Net Sales 2015 Net Sales 2014 Net Sales Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $387.6 $ 431.0 $ 442.3 Investment Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143.2 139.1 140.7 Language Solutions and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67.8 58.5 55.2 Total services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 598.6 628.6 638.2 Investment Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $199.1 $ 204.0 $ 211.2 Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168.5 193.9 203.7 Language Solutions and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.3 23.0 27.0 Total products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384.9 420.9 441.9 Total net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $983.5 $1,049.5 $1,080.1 Note 20. Related Parties Transition Services Agreements In connection with the Separation, the Company entered into transition services agreements separately with RRD and LSC, under which, in exchange for the fees specified in the arrangements, RRD and LSC agree to provide certain services to the Company and the Company agrees to provide certain services to RRD, respectively, for up to 24 months following the Separation. These services include, but are not limited to, information technology, accounts receivable, accounts payable, payroll and other financial and administrative services and functions. These agreements facilitate the separation by allowing the Company to operate independently prior to establishing stand-alone back office systems across its organization. Commercial Arrangements The Company entered into a number of commercial and other arrangements with RRD and its subsidiaries. These include, among other things, arrangements for the provision of services, including global outsourcing and logistics services, printing and binding, digital printing, composition, premedia and access to technology. The Company also entered into a number of commercial and other arrangements with LSC and its subsidiaries, pursuant to which LSC will print and bind products for the Company. The terms of the arrangements with RRD and LSC do not exceed 24 months. Subsequent to the Separation, RRD and LSC are clients of the Company and expect to utilize financial communication software and services that the Company provides to all of its clients. F-33