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Outsourcing, maintenance and rentals

$ 4,319

$ 4,674

$ 5,214

6,127

6,445

7,078

Financing

^[1]

325

346

387

Cost of outsourcing, maintenance and rentals

^[1]

10,771

11,465

12,679

Costs and Expenses

Cost of sales

2,657

2,922

3,227

3,725

3,831

4,202

Cost of financing

128

130

140

Research, development and engineering expenses

476

511

531

Selling, administrative and general expenses

2,695

2,865

3,133

Restructuring and related costs

264

106

Amortization of intangible assets

Other expenses, net

200

195

185

Total Costs and Expenses

10,203

10,541

11,589

Income Before Income Taxes and Equity Income

568

924

1,090

Income tax expense

193

198

Income from Continuing Operations

^[1]

121

135

160

627

866

1,052

Less: Net income attributable to noncontrolling interests

(1,093)

(374)

(16)

Net (Loss) Income

(466)

492

1,036

Net (Loss) Income Attributable to Xerox

(477)

474

1,013

Net income from continuing operations

$ 616

$ 848

$ 1,029

Continuing Operations (in dollars per share)

$ 0.58

$ 0.77

$ 0.87

Discontinued operations (in dollars per share)

(1.07)

(0.35)

(0.01)

Total Basic (Loss) Earnings per Share

(0.49)

0.42

0.86

Continuing Operations (in dollars per share)

0.58

0.77

0.86

Discontinued operations (in dollars per share)

(1.07)

(0.35)

(0.02)

Total Diluted (Loss) Earnings per Share

$ (0.49)

$ 0.42

$ 0.84

[1]	(1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM).

Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Net (Loss) Income

$ (466)

$ 492

$ 1,036

Less: Net income attributable to noncontrolling interests

Net (Loss) Income Attributable to Xerox

(477)

474

1,013

Translation adjustments, net

^[1]

(346)

(660)

(734)

Unrealized (losses) gains, net

^[1]

(15)

Changes in defined benefit plans, net

^[1]

126

153

(662)

Other Comprehensive Loss, Net

^[1]

(235)

(484)

(1,381)

Less: Other comprehensive loss, net attributable to noncontrolling interests

^[1]

(3)

(1)

Other Comprehensive Loss, Net Attributable to Xerox

^[1]

(232)

(483)

(1,380)

Comprehensive (Loss) Income, Net

(701)

(345)

Less: Comprehensive income, net attributable to noncontrolling interests

Comprehensive Loss, Net Attributable to Xerox

$ (709)

$ (9)

$ (367)

[1]	Refer to Note 21 - Other Comprehensive Loss for gross components of Other Comprehensive (Loss) Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects.

Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 2,223	$ 1,228
Accounts receivable, net	961	1,068
Billed portion of finance receivables, net	90	97
Finance receivables, net	1,256	1,315
Inventories	841	901
Assets of discontinued operations	1,002	1,618
Other current assets	619	458
Total current assets	6,992	6,685
Finance receivables due after one year, net	2,398	2,576
Equipment on operating leases, net	475	495
Land, buildings and equipment, net	660	717
Investments in affiliates, at equity	1,388	1,382
Intangible assets, net	290	340
Goodwill	3,787	3,951
Assets of discontinued operations	0	7,185
Other long-term assets	2,155	2,210
Total Assets	18,145	25,541
Liabilities and Equity
Short-term debt and current portion of long-term debt	1,011	962
Accounts payable	1,126	1,342
Accrued compensation and benefits costs	420	406
Unearned income	187	202
Liabilities of discontinued operations	1,002	1,627
Other current liabilities	908	715
Total current liabilities	4,654	5,254
Long-term debt	5,305	6,317
Pension and other benefit liabilities	2,240	2,360
Post-retirement medical benefits	698	784
Liabilities of discontinued operations	0	1,122
Other long-term liabilities	193	238
Total Liabilities	13,090	16,075
Commitments and Contingencies (See Note 18)
Convertible Preferred Stock	214	349
Common stock	1,014	1,013
Additional paid-in capital	3,098	3,017
Retained earnings	5,039	9,686
Accumulated other comprehensive loss	(4,348)	(4,642)
Xerox shareholders’ equity	4,803	9,074
Noncontrolling interests	38	43
Total Equity	4,841	9,117
Total Liabilities and Equity	$ 18,145	$ 25,541
Shares of common stock issued and outstanding	1,014,375	1,012,836

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows from Operating Activities:
Net (loss) income	$ (466)	$ 492	$ 1,036
Loss from discontinued operations	1,093	374	16
Income from Continuing Operations	627	866	1,052
Adjustments required to reconcile net income to cash flows from operating activities:
Depreciation and amortization	563	590	639
Provision for receivables	43	54	50
Provision for inventory	28	30	26
Deferred tax (benefit) expense	(9)	383	152
Net gain on sales of businesses and assets	(22)	(44)	(51)
Undistributed equity in net income of unconsolidated affiliates	(69)	(79)	(91)
Stock-based compensation	50	27	63
Restructuring and asset impairment charges	230	27	106
Payments for restructurings	(118)	(79)	(110)
Defined benefit pension cost	127	141	74
Contributions to defined benefit pension plans	(178)	(301)	(269)
Increase in accounts receivable and billed portion of finance receivables	(151)	(128)	(392)
Collections of deferred proceeds from sales of receivables	246	259	434
Decrease (increase) in inventories	7	(101)	(22)
Increase in equipment on operating leases	(268)	(291)	(283)
Decrease (increase) in finance receivables	126	(8)	(10)
Collections on beneficial interest from sales of finance receivables	24	46	79
Decrease in other current and long-term assets	82	15	9
(Decrease) increase in accounts payable and accrued compensation	(244)	(125)	54
Decrease in other current and long-term liabilities	(51)	(45)	(121)
Net change in income tax assets and liabilities	(182)	(112)	31
Net change in derivative assets and liabilities	(30)	(37)	(14)
Other operating, net	187	(10)	(73)
Net cash provided by operating activities of continuing operations	1,018	1,078	1,333
Net cash provided by operating activities of discontinued operations	77	533	730
Net cash provided by operating activities	1,095	1,611	2,063
Cash Flows from Investing Activities:
Cost of additions to land, buildings and equipment	(93)	(84)	(119)
Proceeds from sales of land, buildings and equipment	25	92	53
Cost of additions to internal use software	(45)	(64)	(57)
Proceeds from sale of businesses	0	0	10
Acquisitions, net of cash acquired	(30)	(13)	(34)
Other investing, net	(3)	26	13
Net cash used in investing activities of continuing operations	(146)	(43)	(134)
Net cash (used in) provided by investing activities of discontinued operations	(251)	551	(569)
Net cash (used in) provided by investing activities	(397)	508	(703)
Cash Flows from Financing Activities:
Net proceeds (payments) on short-term debt	1,888	(147)	145
Proceeds from issuance of long-term debt	25	1,079	808
Payments on long-term debt	(988)	(1,302)	(1,128)
Common stock dividends	(307)	(302)	(289)
Preferred stock dividends	(24)	(24)	(24)
Proceeds from issuances of common stock	9	19	55
Excess tax benefits from stock-based compensation	0	19	18
Payments to acquire treasury stock, including fees	0	(1,302)	(1,071)
Repurchases related to stock-based compensation	(1)	(51)	(41)
Distributions to noncontrolling interests	(17)	(62)	(87)
Other financing	(1)	(1)	(10)
Net cash provided by (used in) financing activities	584	(2,074)	(1,624)
Effect of exchange rate changes on cash and cash equivalents	(30)	(77)	(81)
(Increase) decrease in cash of discontinued operations	(257)	8	(28)
Increase (decrease) in cash and cash equivalents	995	(24)	(373)
Cash and cash equivalents at beginning of year	1,228	1,252	1,625
Cash and Cash Equivalents at End of Year	$ 2,223	$ 1,228	$ 1,252

Consolidated Statements of Shareholders' Equity - USD ($)
$ in Millions

Total

Xerox Shareholders' Equity [Member]

Common Stock [Member]

Additional Paid-in Capital [Member]

Treasury Stock [Member]

Retained Earnings [Member]

AOCL [Member]

^[1]

Noncontrolling Interests [Member]

Conduent [Domain]

Common Stock [Member]

Conduent [Domain]

Additional Paid-in Capital [Member]

Conduent [Domain]

Treasury Stock [Member]

Conduent [Domain]

Retained Earnings [Member]

Conduent [Domain]

Xerox Shareholders' Equity [Member]

Conduent [Domain]

AOCL [Member]

Conduent [Domain]

Noncontrolling Interests [Member]

Beginning Balance at Dec. 31, 2013

$ 12,300

$ 1,210

$ 5,282

$ (252)

$ 8,839

$ (2,779)

Noncontrolling Interests Beginning Balance at Dec. 31, 2013

$ 119

Total Equity Beginning Balance at Dec. 31, 2013

$ 12,419

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Comprehensive (loss) income, net

(367)

1,013

(1,380)

Comprehensive income (loss), net attributable to noncontrolling interest

Comprehensive income (loss), net including portion attributable to noncontrolling interest

(345)

Cash dividends declared-common

^[2]

(293)

Cash dividends declared-preferred

^[3]

(24)

Conversion of notes to common stock

Payments to acquire treasury stock, including fees

124

110

(1,071)

Cancellation of treasury stock

(101)

(1,117)

1,218

Distributions to noncontrolling interests

(66)

Ending Balance at Dec. 31, 2014

10,678

1,124

4,283

(105)

9,535

(4,159)

Noncontrolling Interests Ending Balance at Dec. 31, 2014

Total Equity Ending Balance at Dec. 31, 2014

10,753

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Comprehensive (loss) income, net

(9)

474

(483)

Comprehensive income (loss), net attributable to noncontrolling interest

Comprehensive income (loss), net including portion attributable to noncontrolling interest

Cash dividends declared-common

^[2]

(299)

Cash dividends declared-preferred

^[3]

(24)

Payments to acquire treasury stock, including fees

(1,302)

Cancellation of treasury stock

(122)

(1,285)

1,407

Distributions to noncontrolling interests

(49)

Ending Balance at Dec. 31, 2015

9,074

1,013

3,017

9,686

(4,642)

Noncontrolling Interests Ending Balance at Dec. 31, 2015

Total Equity Ending Balance at Dec. 31, 2015

9,117

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Comprehensive (loss) income, net

(709)

(477)

(232)

Comprehensive income (loss), net attributable to noncontrolling interest

Comprehensive income (loss), net including portion attributable to noncontrolling interest

(701)

Cash dividends declared-common

^[2]

(317)

Cash dividends declared-preferred

^[3]

(24)

Distributions to noncontrolling interests

(13)

Stockholders' Equity Note, Spinoff Transaction

$ (3,303)

$ 0

$ (3,829)

$ (3,303)

$ 526

$ 0

Ending Balance at Dec. 31, 2016

4,803

$ 4,803

$ 1,014

$ 3,098

$ 0

$ 5,039

$ (4,348)

Noncontrolling Interests Ending Balance at Dec. 31, 2016

$ 38

Total Equity Ending Balance at Dec. 31, 2016

$ 4,841

[1]	AOCL - Accumulated other comprehensive loss.
[2]	Cash dividends declared on common stock of $0.0775 in each quarter of 2016, $0.0700 in each quarter of 2015 and $0.0625 in each quarter of 2014.
[3]	Cash dividends declared on preferred stock of $20 per share in each quarter of 2016, 2015 and 2014.

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.0775	$ 0.0775	$ 0.0775	$ 0.0775	$ 0.0700	$ 0.0700	$ 0.0700	$ 0.0700	$ 0.0625	$ 0.0625	$ 0.0625
Dividends per preferred share (in dollars per share)	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

References herein to “we,” “us,” “our,” the “Company” and “Xerox” refer to Xerox Corporation and its consolidated subsidiaries unless the context suggests otherwise.

Overview

On December 31, 2016, Xerox Corporation completed the Separation of its Business Process Outsourcing (BPO) business from its Document Technology and Document Outsourcing (DT/DO) business (the “Separation”). The Separation was accomplished through the transfer of the BPO business into a new legal entity, Conduent Incorporated (Conduent), and then distributing one hundred percent (100%) of the outstanding common stock of Conduent to Xerox Corporation stockholders (the “Distribution”). Xerox Corporation stockholders received one share of Conduent’s common stock for every five shares of Xerox Corporation’s common stock held as of the close of business on the record date. The Separation and Distribution was structured to be tax-free for Xerox Corporation stockholders for federal income tax purposes. Conduent is now an independent public company trading on the New York Stock Exchange (“NYSE”) under the symbol “CNDT”. After the Separation, Xerox retained the DT/DO businesses and Xerox does not beneficially own any shares of Conduent common stock.

In connection with the Separation, Xerox entered into several agreements with Conduent to (1) effect the legal and structural separation of Xerox and Conduent, (2) govern the relationship between Xerox and Conduent up to and after the completion of the Separation and (3) allocate between Xerox and Conduent various assets, liabilities and obligations, including, among other things, employee benefits and tax-related assets and liabilities. The agreements entered into included a separation and distribution agreement, a transition service agreement, a tax matters agreement, an employee matters agreement, an intellectual property agreement and a trademark license agreement. See Note 4, Divestitures, for more information regarding these agreements.

Description of Business

Xerox is a $10.8 billion global enterprise for document management solutions. We provide extensive leading-edge document technology, services, software and genuine Xerox supplies for a range of customers including small and mid-size businesses, large enterprises, governments, graphic communications providers, and for our partners who serve them. We operate in more than 160 countries worldwide.

Basis of Consolidation

The Consolidated Financial Statements include the accounts of Xerox Corporation and all of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of (Loss) Income from the date of acquisition.

We consolidate variable interest entities if we are deemed to be the primary beneficiary of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of (Loss) Income from the date such determination is made.

For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income” throughout the Notes to the Consolidated Financial Statements.

Discontinued Operations

As previously disclosed, on December 31, 2016 Xerox completed the separation of its BPO business through the Distribution of all of the issued and outstanding stock of Conduent to Xerox Corporation stockholders. As a result of the Separation and Distribution, the financial position and results of operations of the BPO Business are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The accompanying Notes to the Consolidated Financial Statements have all been revised to reflect the effect of the Separation and Distribution and all prior year balances have been revised accordingly to reflect continuing operations only. The historical statements of Comprehensive Income (Loss) and Shareholders' Equity have not been revised to reflect the Separation and instead reflect the Separation as a final adjustment to the balances at December 31, 2016.

In 2014, we announced an agreement to sell the Information Technology Outsourcing (ITO) business to Atos SE (Atos). As a result of this agreement, we reported the ITO business as held for sale and a discontinued operation up through its date of sale, which was completed on June 30, 2015. In 2014, we also completed the disposal of Xerox Audio Visual Solutions, Inc. (XAV), which was also reported as discontinued operation. Results from these businesses are reported as Discontinued Operations and all prior period results have been reclassified to conform to this presentation.

Refer to Note 4 - Divestitures for additional information regarding discontinued operations.

Prior Period Adjustments

In 2015, we recorded a $16 out-of-period adjustment associated with the over-accrual of an employee benefit liability account. The impact of this adjustment was not material to any individual prior quarter or year and was not material to our 2015 results.

Use of Estimates

The preparation of our Consolidated Financial Statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be predicted with certainty; accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Our estimates are based on management's best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates.

The following table summarizes certain recurring-type costs and expenses that require management estimates for the three years ended December 31, 2016:



	Year Ended December 31,
Expense/(Income)	2016		2015		2014
Provisions for restructuring and related costs	$	264	$	27	$	106
Provision for receivables	43		54		50
Provisions for obsolete and excess inventory	28		30		26
Provision for product warranty liability	15		22		25
Depreciation and obsolescence of equipment on operating leases	276		286		297
Depreciation of buildings and equipment	148		151		179
Amortization of internal use software	73		83		88
Amortization of product software	4		4		4
Amortization of acquired intangible assets	58		60		65
Amortization of customer contract costs	4		6		6
Defined pension benefits - net periodic benefit cost	127		141		74
Retiree health benefits - net periodic benefit cost	35		2		3
Income tax expense	62		193		198

Changes in Estimates

In the ordinary course of accounting for the items discussed above, we make changes in estimates as appropriate and as we become aware of new or revised circumstances surrounding those estimates. Such changes and refinements in estimation methodologies are reflected in reported results of operations in the period in which the changes are made and, if material, their effects are disclosed in the Notes to the Consolidated Financial Statements and in Management's Discussion and Analysis of Financial Condition and Results of Operations.

New Accounting Standards and Accounting Changes

Except for the Accounting Standard Updates (ASU's) discussed below, the new ASU's issued by the FASB during the last two years did not have any significant impact on the Company.

Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for our fiscal year beginning January 1, 2018. Subsequent to the issuance of ASU 2014-09, the FASB issued the following ASU’s which amend or provide additional guidance on topics addressed in ASU 2014-09. In March 2016, the FASB issued ASU 2016-08, Revenue Recognition - Principal versus Agent (reporting revenue gross versus net). In April 2016, the FASB issued ASU 2016-10, Revenue Recognition - Identifying Performance Obligations and Licenses. In May 2016, the FASB issued ASU 2016-12, Revenue Recognition - Narrow Scope Improvements and Practical Expedients. We will adopt this standard beginning January 1, 2018 and expect to use the permitted modified retrospective method. Under current revenue recognition guidance, a significant majority of our revenue is recorded when we invoice customers, as that is normally the point at which all the revenue recognition criteria are met. Under ASU 2014-09, we expect the unit of accounting, that is, the identification performance obligations, will be consistent with current revenue guidance. Additionally, based on the nature of our contracts we expect to continue to recognize revenue upon invoicing the customer for the large majority of our revenue when we adopt ASU 2014-09. Accordingly, the adoption of this standard is not expected to have a material impact for the large majority of our revenues. Additionally, a significant portion of our equipment sales are either recorded as sales-type leases or through direct sales to distributors and resellers and these sales are not expected to be impacted by the adoption of ASU 2014-09. We are continuing to evaluate certain contracts, which are more complex or where revenue recognition criteria are not currently met when invoicing occurs, to determine their treatment under ASU 2014-09. Additionally, we are also assessing the impacts of the cost deferral guidance required by ASU 2014-09 to determine if there will be any significant change from our current practice. Although at this time we don’t expect a material change in our revenue recognition, in 2017 we expect to continue to evaluate the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases. This update requires the recognition of leased assets and lease obligations by lessees for those leases currently classified as operating leases under existing lease guidance. Short term leases with a term of 12 months or less are not required to be recognized. The update also requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance as well as to the new revenue recognition guidance in ASU 2014-09. This update is effective for our fiscal year beginning January 1, 2019. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. The aggregate undiscounted value of our operating lease commitments at December 31, 2016 was approximately $450.

Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This update provides specific guidance on eight cash flow classification issues where current GAAP is either unclear or does not include specific guidance. This update is effective for our fiscal year beginning January 1, 2018. This update includes specific guidance which requires cash collected on beneficial interests received in a sale of receivables be classified as inflows from investing activities. Currently, those collections are reported in operating cash flows. We reported $270 and $305 of collections on beneficial interests as operating cash inflows on the Statement of Cash Flows for the years ended December 31, 2016 and 2015, respectively. The other issues noted in this update are not expected to have a material impact on our financial condition, results of operations or cash flows.

Additionally, in November 2016 the FASB issued ASU 2016-18, Statement of Cash Flows - Restricted Cash. The update requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We held $179 and $156 of restricted cash, currently reported in other current or long-term assets at December 31, 2016 and 2015, respectively. This update is effective for our fiscal year beginning January 1, 2018. We are currently evaluating the impact, if any, that the adoption of ASU 2016-18 may have on our statements of cash flows in future reporting periods.

Stock Compensation

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, Improvements to Employee Share-Based Payment Accounting (Topic 718). This update includes provisions to simplify certain aspects related to the accounting for share-based awards and the related financial statement presentation. The update also requires that excess tax benefits and deficiencies be recorded in the income statement when the awards vest or are settled as compared to equity as allowed under certain conditions by current US GAAP. This change is required to be adopted prospectively in the period of adoption. In addition, the ASU modifies the classification of certain share-based payment activities within the statements of cash flows and these changes are required to be applied retrospectively to all periods presented. ASU 2016-09 is effective for our fiscal year beginning January 1, 2017. The adoption of ASU 2016-09 for the most part is not expected to have a material impact on our financial condition, results of operations or cash flows. However, the update may add volatility to our income tax expense in future periods depending upon, among other things, the level of tax expense and the price of the Company's common stock at the date of vesting for share-based awards.

Income Taxes

In October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other than Inventory. This update requires recognition of the income-tax consequences of an intra-entity transfer of assets other than inventory when the transfer occurs. Under current GAAP, recognition of the income tax consequences for asset transfers other than inventory could not be recognized until the asset is sold to a third party. This update is effective for our fiscal year beginning January 1, 2018 and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of the adoption of ASU 2016-16 on our consolidated financial statements.

Financial Instruments - Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses - Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets. The update impacts financial assets and net investment in leases that are not accounted for at fair value through net income. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted as of January 1, 2019. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements.

Business Combinations

In January 2017, the FASB issued ASU 2017-01,Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2017-01 on our consolidated financial statements.

Intangibles - Goodwill and Other

In January 2017 the FASB issued ASU 2017-04, Intangibles - Goodwill and Other - Simplifying the Goodwill Impairment Test, which eliminates Step 2 from the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. This update is effective for our fiscal year beginning January 1, 2020, with early adoption permitted for goodwill impairment tests performed after January 1, 2017. The adoption of this standard is not expected to have any effect on our financial condition, results of operations or cash flows.

Equity Method Accounting

In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting. This update eliminates the requirement that when an existing cost method investment qualifies for use of the equity method, an investor must restate its historical financial statements, as if the equity method had been used during all previous periods. Under the new guidance, at the point an investment qualifies for the equity method, any unrealized gain or loss in accumulated other comprehensive income/(loss) ("AOCI") will be recognized through earnings. This update is effective for our fiscal year beginning January 1, 2017, with early adoption permitted. The adoption of this update is not expected to have a material impact on our financial condition, results of operations or cash flows.

Interest

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, which indicated that the SEC staff would not object to an entity deferring and presenting debt issuance costs associated with a line-of-credit arrangement as an asset and subsequently amortizing those costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Upon adoption of this update effective January 1, 2016, we reclassified $29 of debt issuance costs to long-term debt from Other long-term assets. Prior periods were retroactively revised. The costs associated with our credit agreement of $4 at January 1, 2016 remained reported as a deferred charge in Other long-term assets.

Other Updates

In 2016 and 2015, the FASB also issued the following Accounting Standards Updates which have not had, and are not expected to have, a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows:


•	Accounting Changes and Error Corrections (Topic 250): ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323). Transition guidance included in certain issued but not yet adopted ASUs was updated to reflect this amendment.


•	Financial Instruments - Classification and Measurement: ASU 2016-01, Financial Instruments - Recognition and Measurement of Financial Instruments and Financial Liabilities. This update is effective for our fiscal year beginning January 1, 2018.


•	Derivatives and Hedging: ASU 2016-06, Contingent Put and Call Options in Debt Instruments, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted.


•	Derivatives and Hedging: ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted.


•	Fair Value Measurements: ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent), which was effective for our fiscal year January 1, 2016. This update impacted our Plan Asset disclosures included in Note 16 - Employee Benefit Plans.


•	Inventory: ASU 2015-11, Simplifying the Subsequent Measurement of Inventory, which is effective for our fiscal year beginning January 1, 2017.


•	Disclosures of Going Concern Uncertainties: ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which was effective for our fiscal year ended December 31, 2016.


•	Stock Compensation: ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period, which was effective for our fiscal year beginning January 1, 2016.

Summary of Accounting Policies

Revenue Recognition

We generate revenue through services, the sale and rental of equipment, supplies and income associated with the financing of our equipment sales. Revenue is recognized when it is realized or realizable and earned. We consider revenue realized or realizable and earned when we have persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. Delivery does not occur until equipment has been shipped or services have been provided to the customer, risk of loss has transferred to the customer, and either customer acceptance has been obtained, customer acceptance provisions have lapsed, or the company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. More specifically, revenue related to services and sales of our products is recognized as follows:

Equipment: Revenues from the sale of equipment, including those from sales-type leases, are recognized at the time of sale or at the inception of the lease, as appropriate. For equipment sales that require us to install the product at the customer location, revenue is recognized when the equipment has been delivered and installed at the customer location. Sales of customer installable products are recognized upon shipment or receipt by the customer according to the customer's shipping terms. Revenues from equipment under other leases and similar arrangements are accounted for by the operating lease method and are recognized as earned over the lease term, which is generally on a straight-line basis.

Maintenance Services: Maintenance service revenues are derived primarily from maintenance contracts on the equipment sold to our customers and are recognized over the term of the contracts. A substantial portion of our products are sold with full service maintenance agreements for which the customer typically pays a base service fee plus a variable amount based on usage. As a consequence, other than the product warranty obligations associated with certain of our low end products, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs.

Bundled Lease Arrangements: We sell our products and services under bundled lease arrangements, which typically include equipment, service, supplies and financing components for which the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of contractual page volume minimums, which are often expressed in terms of price-per-page. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed minimum payments that the customer is obligated to make (fixed payments) over the lease term. The payments associated with page volumes in excess of the minimums are contingent on whether or not such minimums are exceeded (contingent payments). In applying our lease accounting methodology, we only consider the fixed payments for purposes of allocating to the relative fair value elements of the contract. Contingent payments, if any, are recognized as revenue in the period when the customer exceeds the minimum copy volumes specified in the contract.

Revenues under bundled arrangements are allocated considering the relative selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment, financing, maintenance and other executory costs, while non-lease deliverables generally consist of the supplies and non-maintenance services. The allocation for the lease deliverables begins by allocating revenues to the maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease as service revenue. The remaining amounts are allocated to the equipment and financing elements which are subjected to the accounting estimates noted below under “Leases.”

Our pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. These interest rates have generally been adjusted if the rates vary by 25 basis points or more, cumulatively, from the rate last in effect. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices.

Sales to distributors and resellers: We utilize distributors and resellers to sell many of our technology products, supplies and services to end-user customers. We refer to our distributor and reseller network as our two-tier distribution model. Sales to distributors and resellers are generally recognized as revenue when products are sold to such distributors and resellers. However, revenue is only recognized when the distributor or reseller has economic substance apart from the company, the sales price is not contingent upon resale or payment by the end user customer and we have no further obligations related to bringing about the resale, delivery or installation of the product.

Distributors and resellers participate in various rebate, price-protection, cooperative marketing and other programs, and we record provisions for these programs as a reduction to revenue when the sales occur. Similarly, we account for our estimates of sales returns and other allowances when the sales occur based on our historical experience.

In certain instances, we may provide lease financing to end-user customers who purchased equipment we sold to distributors or resellers. We compete with other third-party leasing companies with respect to the lease financing provided to these end-user customers.

Supplies: Supplies revenue generally is recognized upon shipment or utilization by customers in accordance with the sales contract terms.

Software: Most of our equipment has both software and non-software components that function together to deliver the equipment's essential functionality and therefore they are accounted for together as part of equipment sales revenues. Software accessories sold in connection with our equipment sales, as well as free-standing software sales are accounted for as separate deliverables or elements. In most cases, these software products are sold as part of multiple element arrangements and include software maintenance agreements for the delivery of technical service, as well as unspecified upgrades or enhancements on a when-and-if-available basis. In those software accessory and free-standing software arrangements that include more than one element, we allocate the revenue among the elements based on vendor-specific objective evidence (VSOE) of fair value. Revenue allocated to software is normally recognized upon delivery while revenue allocated to the software maintenance element is recognized ratably over the term of the arrangement.

Leases: As noted above, equipment may be placed with customers under bundled lease arrangements. The two primary accounting provisions which we use to classify transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease.

We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant.

With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value.

Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method.

Services: Revenues associated with our document management services are generally recognized as services are rendered, which is generally on the basis of the number of transactions processed. In service arrangements where final acceptance of a printing solution by the customer is required, revenue is deferred until all acceptance criteria have been met. Revenues on unit-price contracts are recognized at the contractual selling prices as work is completed and accepted by the customer.

In connection with our services arrangements, we may incur and capitalize costs to originate these long-term contracts and to perform the migration, transition and setup activities necessary to enable us to perform under the terms of the arrangement. These capitalized costs are amortized over the contractual service period of the arrangement to cost of services. From time to time, we also provide inducements to customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract.

Long-lived assets used in the fulfillment of service arrangements are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific.

Our services contracts may also include the sale of equipment and software. In these instances we follow the policies noted above under Equipment-Related Revenues.

Other Revenue Recognition Policies

Multiple Element Arrangements: As described above, we enter into the following revenue arrangements that may consist of multiple deliverables:


•	Bundled lease arrangements, which typically include both lease deliverables and non-lease deliverables as described above.


•	Contracts for multiple types of document related services including professional and value-added services. For instance, we may contract for an implementation of a printing solution and also provide services to operate the solution over a period of time; or we may contract to scan, manage and store customer documents.

In substantially all of our multiple element arrangements, we are able to separate the deliverables since we normally will meet both of the following criteria:


•	The delivered item(s) has value to the customer on a stand-alone basis; and


•	If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control.

Consideration in a multiple-element arrangement is allocated at the inception of the arrangement to all deliverables on the basis of the relative selling price. When applying the relative selling price method, the selling price for each deliverable is primarily determined based on VSOE or third-party evidence (TPE) of the selling price. The above noted revenue policies are then applied to each separated deliverable, as applicable.

Revenue-based Taxes: We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. The primary revenue-based taxes are sales tax and value-added tax (VAT).

Other Significant Accounting Policies

Shipping and Handling

Costs related to shipping and handling are recognized as incurred and included in Cost of sales in the Consolidated Statements of (Loss) Income.

Research, Development and Engineering (RD&E)

Research, development and engineering costs are expensed as incurred. Sustaining engineering costs are incurred with respect to on-going product improvements or environmental compliance after initial product launch. Sustaining engineering costs were $95, $126 and $132 in 2016, 2015 and 2014, respectively.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, including money market funds, and investments with original maturities of three months or less.

Receivable Sales

We regularly transfer certain portions of our receivable portfolios and normally account for those transfers as sales based on meeting the criteria for derecognition in accordance with ASC Topic 860 "Transfer and Servicing" of Financial Assets. Gains or losses on the sale of receivables depend, in part, on both (a) the cash proceeds and (b) the net non-cash proceeds received or paid. When we sell receivables, we normally receive beneficial interests in the transferred receivables from the purchasers as part of the proceeds. We may refer to these beneficial interests as a deferred purchase price. The beneficial interests obtained are initially measured at their fair value. We generally estimate fair value based on the present value of expected future cash flows, which are calculated using management's best estimates of the key assumptions including credit losses, prepayment rate and discount rates commensurate with the risks involved. Refer to Note 5 - Accounts Receivable, Net and Note 6 - Finance Receivables, Net for more details on our receivable sales.

Inventories

Inventories are carried at the lower of average cost or market. Inventories also include equipment that is returned at the end of the lease term. Returned equipment is recorded at the lower of remaining net book value or salvage value, which is normally not significant. We regularly review inventory quantities and record a provision for excess and/or obsolete inventory based primarily on our estimated forecast of product demand, production requirements and servicing commitments. Several factors may influence the realizability of our inventories, including our decision to exit a product line, technological changes and new product development. The provision for excess and/or obsolete raw materials and equipment inventories is based primarily on near term forecasts of product demand and include consideration of new product introductions, as well as changes in remanufacturing strategies. The provision for excess and/or obsolete service parts inventory is based primarily on projected servicing requirements over the life of the related equipment populations.

Land, Buildings and Equipment on Operating Leases

Land, buildings and equipment are recorded at cost. Buildings and equipment are depreciated over their estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life. Equipment on operating leases is depreciated to estimated salvage value over the lease term. Depreciation is computed using the straight-line method. Significant improvements are capitalized and maintenance and repairs are expensed. Refer to Note 7 - Inventories and Equipment on Operating Leases, Net and Note 8 - Land, Buildings, Equipment and Software, Net for further discussion.

Software - Internal Use and Product

We capitalize direct costs associated with developing, purchasing or otherwise acquiring software for internal use and amortize these costs on a straight-line basis over the expected useful life of the software, beginning when the software is implemented (Internal Use Software). Costs incurred for upgrades and enhancements that will not result in additional functionality are expensed as incurred. Amounts expended for Internal Use Software are included in Cash Flows from Investing.

We also capitalize certain costs related to the development of software solutions to be sold to our customers upon reaching technological feasibility (Product Software). These costs are amortized on a straight-line basis over the estimated economic life of the software. Amounts expended for Product Software are included in Cash Flows from Operations. We perform periodic reviews to ensure that unamortized Product Software costs remain recoverable from estimated future operating profits (net realizable value or NRV). Costs to support or service licensed software are charged to Costs of services as incurred.

Refer to Note 8 - Land, Buildings, Equipment and Software, Net for further information.

Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of acquired net assets in a business combination, including the amount assigned to identifiable intangible assets. The primary drivers that generate goodwill are the value of synergies between the acquired entities and the company and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset. Goodwill is not amortized but rather is tested for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred.

Impairment testing for goodwill is done at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (a "component") if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component.

When testing goodwill for impairment, we may assess qualitative factors for some or all of our reporting units to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, we may bypass this qualitative assessment for some or all of our reporting units and perform a detailed quantitative test of impairment (Step 1). If we perform the detailed quantitative impairment test and the carrying amount of the reporting unit exceeds its fair value, we would perform an analysis (Step 2) to measure such impairment. In 2016, we elected to proceed to the quantitative assessment of the recoverability of our goodwill balances for each of our reporting units in performing our annual impairment test.

Other intangible assets primarily consist of assets obtained in connection with business acquisitions, including installed customer base and distribution network relationships, patents on existing technology and trademarks. We apply an impairment evaluation whenever events or changes in business circumstances indicate that the carrying value of our intangible assets may not be recoverable. Other intangible assets are amortized on a straight-line basis over their estimated economic lives. We believe that the straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained annually by the Company.

Refer to Note 10 - Goodwill and Intangible Assets, Net for further information.

Impairment of Long-Lived Assets

We review the recoverability of our long-lived assets, including buildings, equipment, internal use software and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows.

Pension and Post-Retirement Benefit Obligations

We sponsor various forms of defined benefit pension plans in several countries covering employees who meet eligibility requirements. Retiree health benefit plans cover U.S. and Canadian employees for retiree medical costs. We employ a delayed recognition feature in measuring the costs of pension and post-retirement benefit plans. This requires changes in the benefit obligations and changes in the value of assets set aside to meet those obligations to be recognized not as they occur, but systematically and gradually over subsequent periods. All changes are ultimately recognized as components of net periodic benefit cost, except to the extent they may be offset by subsequent changes. At any point, changes that have been identified and quantified but not recognized as components of net periodic benefit cost, are recognized in Accumulated Other Comprehensive Loss, net of tax.

Several statistical and other factors that attempt to anticipate future events are used in calculating the expense, liability and asset values related to our pension and retiree health benefit plans. These factors include assumptions we make about the discount rate, expected return on plan assets, rate of increase in healthcare costs, the rate of future compensation increases and mortality. Actual returns on plan assets are not immediately recognized in our income statement due to the delayed recognition requirement. In calculating the expected return on the plan asset component of our net periodic pension cost, we apply our estimate of the long-term rate of return on the plan assets that support our pension obligations, after deducting assets that are specifically allocated to Transitional Retirement Accounts (which are accounted for based on specific plan terms).

For purposes of determining the expected return on plan assets, we utilize a market-related value approach in determining the value of the pension plan assets, rather than a fair market value approach. The primary difference between the two methods relates to systematic recognition of changes in fair value over time (generally two years) versus immediate recognition of changes in fair value. Our expected rate of return on plan assets is applied to the market-related asset value to determine the amount of the expected return on plan assets to be used in the determination of the net periodic pension cost. The market-related value approach reduces the volatility in net periodic pension cost that would result from using the fair market value approach.

The discount rate is used to present value our future anticipated benefit obligations. The discount rate reflects the current rate at which benefit liabilities could be effectively settled considering the timing of expected payments for plan participants. In estimating our discount rate, we consider rates of return on high-quality fixed-income investments adjusted to eliminate the effects of call provisions, as well as the expected timing of pension and other benefit payments.

Each year, the difference between the actual return on plan assets and the expected return on plan assets, as well as increases or decreases in the benefit obligation as a result of changes in the discount rate and other actuarial assumptions, are added to or subtracted from any cumulative actuarial gain or loss from prior years. This amount is the net actuarial gain or loss recognized in Accumulated other comprehensive loss. We amortize net actuarial gains and losses as a component of net pension cost for a year if, as of the beginning of the year, that net gain or loss (excluding asset gains or losses that have not been recognized in market-related value) exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets (the "corridor" method). This determination is made on a plan-by-plan basis. If amortization is required for a particular plan, we amortize the applicable net gain or loss in excess of the 10% threshold on a straight-line basis in net periodic pension cost over the remaining service period of the employees participating in that pension plan. In plans where substantially all participants are inactive, the amortization period for the excess is the average remaining life expectancy of the plan participants.

Our primary domestic plans allow participants the option of settling their vested benefits through the receipt of a lump-sum payment. The participant's vested benefit is considered fully settled upon payment of the lump-sum. We have elected to apply settlement accounting and therefore we recognize the losses associated with settlements in this plan immediately upon the settlement of the vested benefits. Settlement accounting requires us to recognize a pro rata portion of the aggregate unamortized net actuarial losses upon settlement. The pro rata factor is computed as the percentage reduction in the projected benefit obligation due to the settlement of the participant's vested benefit.

Refer to Note 16 - Employee Benefit Plans for further information regarding our Pension and Post-Retirement Benefit Obligations.

Foreign Currency Translation and Re-measurement

The functional currency for most foreign operations is the local currency. Net assets are translated at current rates of exchange and income, expense and cash flow items are translated at average exchange rates for the applicable period. The translation adjustments are recorded in Accumulated other comprehensive loss.

The U.S. Dollar is used as the functional currency for certain foreign subsidiaries that conduct their business in U.S. Dollars. A combination of current and historical exchange rates is used in re-measuring the local currency transactions of these subsidiaries and the resulting exchange adjustments are recorded in Currency (gains) and losses within Other expenses, net together with other foreign currency remeasurments.

Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

During 2016 our primary reportable segments were Document Technology and Services. As a result of the Separation discussed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies, our BPO business was not reported in our 2016 segment financial information since this business was reported as a discontinued operation in 2016. Accordingly, the Services reportable segment reflects only the financial information for our Document Outsourcing services business and certain other service offerings that were transferred from the BPO business to Document Outsourcing prior to the Separation, and therefore not included in the Conduent Separation and Distribution.

In addition, in the first quarter of 2016, we revised our segment reporting to exclude the non-service elements of our defined-benefit pension and retiree-health plan costs from Segment profit. Segment profit was also revised to reflect the transfer of corporate functions to Conduent, which resulted in a full year benefit of approximately $80 from additional corporate costs, above those historically allocated to the BPO business, transferred to Conduent upon the Separation.

Current and prior year amounts were revised accordingly to reflect all of the above noted changes.

The Document Technology segment is centered around strategic product groups, which share common technology, manufacturing and product platforms. Segment revenues include the sale of document systems and supplies, provision of technical service and financing of products. 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 mid 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.

Customers range from small and mid-sized businesses to large enterprises. Customers also include graphic communication enterprises as well as channel partners including distributors and resellers.

The Services segment includes our legacy Document Outsourcing business as well as a set of communications and marketing solutions offerings that were previously part of the BPO business and were transferred to Xerox upon Separation. This segment comprises solutions and services including Managed Print Services (MPS), Workflow Automation Services, Communication and Marketing Solutions and revenues from our Partner Print Services offerings.

Other includes several units, none of which meet the thresholds for separate segment reporting. This group includes paper sales in our developing market countries, Wide Format Systems, 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.

Selected financial information for our reportable segments was as follows:




	Document Technology		Services		Other			Total
2016 ⁽¹⁾
Revenue	$	6,458	$	3,438	$	550		$	10,446
Finance income	251		67		7			325
Total Segment Revenue	$	6,709	$	3,505	$	557		$	10,771
Depreciation and amortization⁽²⁾	$	274	$	218	$	13		$	505
Interest expense	108		19		182			309
Segment profit (loss)	901		469		(223		)	1,147
Equity in net income of unconsolidated affiliates	97		24		—			121

2015 ⁽¹⁾
Revenue	$	7,098	$	3,485	$	536		$	11,119
Finance income	267		72		7			346
Total Segment Revenue	$	7,365	$	3,557	$	543		$	11,465
Depreciation and amortization⁽²⁾	$	297	$	222	$	11		$	530
Interest expense	109		20		217			346
Segment profit (loss)	1,041		458		(225		)	1,274
Equity in net income of unconsolidated affiliates	108		27		—			135

2014 ⁽¹⁾
Revenue	$	8,044	$	3,658	$	590		$	12,292
Finance income	314		65		8			387
Total Segment Revenue	$	8,358	$	3,723	$	598		$	12,679
Depreciation and amortization⁽²⁾	$	334	$	225	$	15		$	574
Interest expense	121		18		227			366
Segment profit (loss)	1,285		443		(218		)	1,510
Equity in net income of unconsolidated affiliates	128		32		—			160

_____________


(1)	Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM).


(2)	Depreciation and amortization excludes amortization of intangible assets - see reconciliation below.

The following is a reconciliation of segment profit to pre-tax income:



	Year Ended December 31,
	2016			2015			2014
Total Segment Profit	$	1,147		$	1,274		$	1,510
Reconciling items:
Amortization of intangible assets	(58		)	(60		)	(65		)
Equity in net income of unconsolidated affiliates	(121		)	(135		)	(160		)
Restructuring and related costs	(264		)	(27		)	(106		)
Restructuring charges of Fuji Xerox	(3		)	(4		)	(3		)
Business transformation costs⁽¹⁾	(2		)	(8		)	(7		)
Non-service retirement-related costs⁽²⁾	(131		)	(116		)	(79		)
Pre-tax Income	$	568		$	924		$	1,090

_____________


(1)	Business transformation costs represent incremental costs incurred directly in support of our business transformation and restructuring initiatives such as compensation costs for overlapping staff, consulting costs and training costs.


(2)	Represents the non-service elements of our defined-benefit pension and retiree-health plan costs. Refer to Note 16 - Employee Benefit Plans for details regarding these elements.

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⁾
	2016		2015		2014		2016		2015
United States	$	6,403	$	6,734	$	7,184	$	824	$	886
Europe	2,861		3,155		3,649		359		435
Other areas	1,507		1,576		1,846		178		163
Total Revenues and Long-Lived Assets	$	10,771	$	11,465	$	12,679	$	1,361	$	1,484

_____________


(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.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Acquisitions

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Acquisitions

2016 Acquisitions

In 2016 we added two equipment dealers to our Global Imaging Systems network for approximately $30 in cash. The acquisitions were in our Document Technology segment and are consistent with our strategy to expand distribution in under-penetrated markets.

2016 Summary

Our 2016 acquisitions resulted in 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 the respective acquisition dates. Our 2016 acquisitions contributed aggregate revenues of approximately $14 to our 2016 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. Of the goodwill recorded in 2016, 100% is expected to be deductible for tax purposes. Refer to Note 10 - Goodwill and Intangible Assets, Net for additional information.

The following table summarizes the purchase price allocations for our 2016 acquisitions as of the acquisition dates:



	Weighted-Average Life (Years)	Total 2016 Acquisitions
Accounts/finance receivables		$	2
Intangible assets:
Customer relationships	10	7
Trademarks	20	2
Non-compete agreements	4	1
Goodwill		19
Other assets		3
Total Assets Acquired		34
Liabilities assumed		(4		)
Total Purchase Price		$	30

2015 and 2014 Acquisitions

In December 2014 we acquired a large document equipment dealer in the southern U.S. for approximately $22 in cash. This acquisition complements our existing footprint in the southern U.S. by offering Xerox's managed services along with office and printing technology.

Our Document Technology segment acquired two businesses in 2015 and one additional business in 2014 for approximately $13 and $12 in cash, respectively, which expanded our distribution capability of products and services in North America.

2015 and 2014 Summary

All of our 2015 and 2014 acquisitions resulted in 100% ownership of the acquired companies. The operating results of the 2015 and 2014 acquisitions described above are not material to our financial statements and were included within our results from the 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. Refer to Note 10 - Goodwill and Intangible Assets, Net for additional information. Our 2015 acquisitions contributed aggregate revenues from their respective acquisition dates of approximately $10 and $3 to our 2016 and 2015 total revenues, respectively. Our 2014 acquisitions contributed aggregate revenues from their respective acquisition dates of approximately $32, $30 and $2 to our 2016, 2015 and 2014 total revenues, respectively.

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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Discontinued Operations and Disposal Groups [Abstract]

Divestitures

12 Months Ended

Dec. 31, 2016

Divestitures

Business Process Outsourcing (BPO)

As previously disclosed, on December 31, 2016, Xerox completed the Separation of its BPO business through the Distribution of all of the issued and outstanding stock of Conduent to Xerox Corporation stockholders. As a result of the Separation and Distribution, the financial position and results of operations of the BPO Business are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. Prior to the Separation and Distribution of Conduent, in connection with the annual goodwill impairment test, a pre-tax goodwill impairment charge of $935 was recorded in the fourth quarter 2016 associated with the Commercial Services reporting unit of the BPO business. This charge is reported in the Loss from discontinued operations, net of tax, for the year ended December 31, 2016.

Total separation costs of $159, which were incurred during 2016, are included in Loss from discontinued operations, net of tax, in the accompanying Consolidated Statements of (Loss) Income. Separation costs are primarily for third-party investment banking, accounting, legal, consulting and other similar types of services related to the Separation transaction as well as costs associated with the operational separation of the two companies, such as those related to human resources, brand management, real estate and information management to the extent not capitalized. Separation costs also include the costs associated with bonuses and restricted stock grants awarded to employees for retention through the Separation.

In connection with the Separation, Xerox and Conduent entered into various agreements to effect the Separation and provide a framework for their relationship after the Separation, including a separation and distribution agreement, a transition service agreement, a tax matters agreement, an employee matters agreement, an intellectual property agreement and a trademark license agreement. The transition services primarily involve Xerox providing services to Conduent related to information technology and human resource infrastructure and are all expected to be for terms of no more than one year post-separation. In addition, Xerox is also party to various commercial agreements with Conduent entities. The amount billed for transition services provided under the above agreements as well as sales and purchases to and from Conduent are not expected to be material in future periods.

In preparation for the Separation, in the fourth quarter 2016, Conduent incurred approximately $2.0 billion in new borrowings. The net proceeds from these borrowings of $1.9 billion, after debt issuance costs, were used to fund the approximately $1.8 billion of net cash distributions Conduent made to Xerox prior to the Distribution Date. Xerox used a portion of the cash distribution proceeds to repay the $1.0 billion Senior Unsecured Term Facility in January 2017, which was required to be repaid upon completion of the Separation. This $1.0 billion of cash and debt is excluded from the Cash and cash equivalents and Total Debt at December 31, 2016, respectively, and is reported in Current Assets and Current Liabilities of discontinued operations at December 31, 2016, respectively. Interest expense associated with this borrowing incurred during 2016 is included in Loss from discontinued operations, net of tax. Xerox intends to use the balance of the proceeds received to redeem Senior Notes that are coming due in the first quarter 2017. Refer to Note 13 - Debt for additional information.

Information Technology Outsourcing (ITO)

In 2014, we entered into an agreement for the sale of our ITO business to Atos and began reporting it as a Discontinued Operation. All prior periods were accordingly revised to conform to this presentation. The sale was completed on June 30, 2015. The final sale price was approximately $940 ($930 net of cash sold) and Atos also assumed approximately $85 of capital lease obligations and pension liabilities. The ITO business included approximately 9,600 employees in 42 countries, who were transferred to Atos upon closing.

We recorded a net pre-tax loss of $181 ($160 after-tax) in 2014 related to the agreement to sell, reflecting the write-down of the carrying value of the ITO disposal group, inclusive of goodwill, to its estimated fair value less costs to sell. We recorded an additional net pre-tax loss of $101 in 2015, primarily at closing, related to an adjustment of the sales price and related expenses associated with the disposal, as well as reserves for certain obligations and indemnifications we retained as part of the final closing negotiations. In addition, we recorded additional tax expense of $44 in 2015 primarily related to the difference between the book basis and tax basis of allocated goodwill, which could only be recorded upon final disposal of the business.

We made an additional payment in 2016 to Atos of approximately $52, representing a $28 adjustment to the final sales price and a payment of $24 due from closing. The payment was reflected in investing cash flows of discontinued operations as an adjustment of the sales proceeds.

Other Discontinued Operations

In 2014, we completed the closure of Xerox Audio Visual Solutions, Inc. (XAV), a small audio visual business within our Global Imaging Systems subsidiary, and recorded a net pre-tax loss on disposal of $1. XAV provided audio visual equipment and services to enterprise and government customers.

In 2014, we sold the Truckload Management Services, Inc. (TMS) business for $15 and recorded a net pre-tax loss on disposal of $1. TMS provided document capture and submission solutions as well as campaign management, media buying and digital marketing services to the long haul trucking and transportation industry.

Summarized financial information for our Discontinued Operations is as follows:



	Year Ended December 31, 2016
	Conduent			ITO		Total
Revenue	$	6,355		$	—	$	6,355

Loss from operations	$	(1,343	)	$	—	$	(1,343	)
Loss on disposal	—			—		—
Net loss before income taxes	(1,343		)	—		(1,343		)
Income tax benefit	250			—		250
Loss from discontinued operations, net of tax	$	(1,093	)	$	—	$	(1,093	)



	Year Ended December 31, 2015
	Conduent			ITO			Total
Revenue	$	6,604		$	619		$	7,223

(Loss) income from operations	$	(511	)	$	104		$	(407	)
Loss on disposal	—			(101		)	(101		)
Net (loss) income before income taxes	(511		)	3			(508		)
Income tax benefit (expense)	215			(81		)	134
Loss from discontinued operations, net of tax	$	(296	)	$	(78	)	$	(374	)



	Year Ended December 31, 2014
	Conduent			ITO			Other			Total
Revenue	$	6,885		$	1,320		$	45		$	8,250

Income (loss) from operations	$	116		$	74		$	(1	)	$	189
Loss on disposal	—			(181		)	(1		)	(182		)
Net income (loss) before income taxes	116			(107		)	(2		)	7
Income tax expense	(17		)	(5		)	(1		)	(23		)
Income (loss) from discontinued operations, net of tax	$	99		$	(112	)	$	(3	)	$	(16	)

The following is a summary of selected financial information of Conduent for the three years ended December 31, 2016:



	Year Ended December 31,
	2016		2015		2014
Cost and Expenses:
Cost of services	$	5,456	$	5,923	$	5,749
Other Expenses⁽¹⁾	2,065		1,192		1,020
Total Costs and Expenses	$	7,521	$	7,115	$	6,769

Selected amounts included in Costs and Expenses:
Depreciation of buildings and equipment	$	130	$	126	$	145
Amortization of internal use software	49		51		52
Amortization of product software	61		65		58
Amortization of acquired intangible assets	280		250		250
Amortization of customer contract costs	93		108		122
Operating lease rent expense	378		389		385
Defined contribution plans	35		34		31
Interest expense ⁽²⁾	13		8		11
Goodwill impairment charge ⁽³⁾	935		—		—

Expenditures:
Cost of additions to land, buildings and equipment	$	150	$	126	$	144
Cost of additions to internal use software	39		26		26
Customer-related deferred set-up/transition and inducement costs	62		55		55

_____________


(1)	2016 amount excludes $159 of Separation related costs and $18 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation, and therefore was also reported in the loss from discontinued operations.


(2)	Represents interest on Conduent third-party borrowings only that were transferred to Conduent as part of the Distribution. 2016 amount excludes $18 of interest associated with the $1.0 billion Senior Unsecured Term Facility noted above. No additional interest expense was allocated to discontinued operations for the three years ended December 31, 2016.


(3)	Prior to the Separation and Distribution of Conduent, in connection with the annual goodwill impairment test, a pre-tax goodwill impairment charge was recorded in the fourth quarter 2016 associated with the Commercial Services reporting unit of the BPO business.

The following is a summary of the major categories of assets and liabilities that were transferred to Conduent as of December 31, 2016. The balances as of December 31, 2015 are presented for comparative purposes and are included in Assets and Liabilities of discontinued operations in the Consolidated Balance Sheet at December 31, 2015:



	December 31, 2016		December 31, 2015
Cash and cash equivalents	$	390	$	140
Accounts receivable, net	1,287		1,251
Other current assets	239		227
Total current assets of discontinued operations	1,916		1,618
Land, buildings and equipment, net	283		279
Intangible assets, net	1,144		1,425
Goodwill	3,889		4,872
Other long-term assets	477		609
Total long-term assets of discontinued operations	5,793		7,185
Total Assets of Discontinued Operations	$	7,709	$	8,803

Current portion of long-term debt	$	28	$	23
Accounts payable	159		272
Accrued pension and benefit costs	284		245
Unearned income	208		226
Other current liabilities	742		861
Total current liabilities of discontinued operations	1,421		1,627
Long-term debt	1,913		37
Pension and other benefit liabilities	173		153
Other long-term liabilities	757		932
Total long-term liabilities of discontinued operations	2,843		1,122
Total Liabilities of Discontinued Operations	$	4,264	$	2,749

As a result of the Separation, the Company distributed $3,445 in net assets of Conduent, which has been reflected as a reduction to Preferred Stock for $142, Retained Earnings for $3,829 and Accumulated other comprehensive loss for $526 in the accompanying Consolidated Balance Sheet and Consolidated Statements of Shareholders' Equity as of December 31, 2016.

The following is a summary of disclosed acquisitions over the past three years that were part of the Distribution of Conduent at December 31, 2016.



Acquisition	Date of Acquisition	Acquisition Price

RSA Medical LLC (RSA Medical)	September 2015	$	141
Intellinex LLC	January 2015	28
Consilience Software, Inc. (Consilience)	September 2014	25
ISG Holdings, Inc. (ISG)	May 2014	225
Invoco Holding GmbH (Invoco)	January 2014	54

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Accounts Receivables, Net

12 Months Ended

Dec. 31, 2016

Accounts Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:



	December 31,
	2016			2015
Invoiced	$	651		$	741
Accrued	374			401
Allowance for doubtful accounts	(64		)	(74		)
Accounts Receivable, Net	$	961		$	1,068

We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. The allowance for uncollectible accounts receivables is determined principally on the basis of past collection experience as well as consideration of current economic conditions and changes in our customer collection trends.

Accounts Receivable Sales Arrangements

Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. We have facilities in the U.S., Canada and several countries in Europe that enable us to sell certain accounts receivable, without recourse, to third-parties. The accounts receivables sold are generally short-term trade receivables with payment due dates of less than 60 days.

All of our arrangements involve the sale of our entire interest in groups of accounts receivable for cash. In most instances a portion of the sales proceeds are held back by the purchaser and payment is deferred until collection of the related receivables sold. Such holdbacks are not considered legal securities nor are they certificated. We report collections on such receivables as operating cash flows in the Consolidated Statements of Cash Flows because such receivables are the result of an operating activity and the associated interest rate risk is de minimis due to their short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred purchase price receivable. These receivables are included in Other current assets in the accompanying Consolidated Balance Sheets and were $48 and $61 at December 31, 2016 and 2015, respectively.

Under most of the agreements, we continue to service the sold accounts receivable. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material.

Of the accounts receivables sold and derecognized from our balance sheet, $531 and $524 remained uncollected as of December 31, 2016 and 2015, respectively. Accounts receivable sales were as follows:



	Year Ended December 31,
	2016		2015		2014
Accounts receivable sales	$	2,267	$	2,142	$	2,563
Deferred proceeds	233		247		387
Loss on sale of accounts receivable	16		13		15
Estimated increase (decrease) to operating cash flows⁽¹⁾	30		62		(64		)

_____________


(1)	Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency.

Finance Receivables, Net

Finance receivables include sales-type leases, direct financing leases and installment loans arising from the marketing of our equipment. These receivables are typically collateralized by a security interest in the underlying assets. Finance receivables, net were as follows:



	December 31,
	2016			2015
Gross receivables	$	4,380		$	4,683
Unearned income	(526		)	(577		)
Subtotal	3,854			4,106
Residual values	—			—
Allowance for doubtful accounts	(110		)	(118		)
Finance Receivables, Net	3,744			3,988
Less: Billed portion of finance receivables, net	90			97
Less: Current portion of finance receivables not billed, net	1,256			1,315
Finance Receivables Due After One Year, Net	$	2,398		$	2,576

Contractual maturities of our gross finance receivables as of December 31, 2016 were as follows (including those already billed of $90):



2017		2018		2019		2020		2021		Thereafter		Total
$	1,628	$	1,225	$	855	$	485	$	175	$	12	$	4,380

Sale of Finance Receivables

In 2013 and 2012, we transferred our entire interest in certain groups of lease finance receivables to third-party entities for cash proceeds and beneficial interests. The transfers were accounted for as sales with derecognition of the associated lease receivables. There have been no transfers or sales of finance receivables since 2013. We continue to service the sold receivables and record servicing fee income over the expected life of the associated receivables. The following is a summary of our prior sales activity:



	Year Ended December 31,
	2013		2012
Net carrying value (NCV) sold	$	676	$	682
Allowance included in NCV	17		18
Cash proceeds received	635		630
Beneficial interests received	86		101

The principal value of the finance receivables derecognized from our balance sheet was $76 and $238 at December 31, 2016 and 2015, respectively (sales value of approximately $81 and $256, respectively).

Summary Finance Receivable Sales

The ultimate purchaser has no recourse to our other assets for the failure of customers to pay principal and interest when due beyond our beneficial interests which were $24 and $38 at December 31, 2016 and 2015, respectively, and are included in Other current assets and Other long-term assets in the accompanying Consolidated Balance Sheets. Beneficial interests of $13 and $30 at December 31, 2016 and 2015, respectively, are held by the bankruptcy-remote subsidiaries and therefore are not available to satisfy any of our creditor obligations. We report collections on the beneficial interests as operating cash flows in the Consolidated Statements of Cash Flows because such beneficial interests are the result of an operating activity and the associated interest rate risk is de minimis considering their weighted average lives of less than two years.

The net impact from the sales of finance receivables on operating cash flows is summarized below:




	2016			2015			2014			2013/2012
Net cash received for sales of finance receivables⁽¹⁾	$	—		$	—		$	—		$	1,256
Impact from prior sales of finance receivables⁽²⁾	(186		)	(342		)	(527		)	(437		)
Collections on beneficial interests	30			56			94			58
Estimated (Decrease) Increase to Operating Cash Flows	$	(156	)	$	(286	)	$	(433	)	$	877

_____________


(1)	Net of beneficial interest, fees and expenses.


(2)	Represents cash that would have been collected if we had not sold finance receivables.

Finance Receivables - Allowance for Credit Losses and Credit Quality

Our finance receivable portfolios are primarily in the U.S., Canada and Europe. We generally establish customer credit limits and estimate the allowance for credit losses on a country or geographic basis. Customer credit limits are based upon an initial evaluation of the customer's credit quality and we adjust that limit accordingly based upon ongoing credit assessments of the customer, including payment history and changes in credit quality.

The allowance for doubtful accounts and provision for credit losses represents an estimate of the losses expected to be incurred from the Company's finance receivable portfolio. The level of the allowance is determined on a collective basis by applying projected loss rates to our different portfolios by country, which represent our portfolio segments. This is the level at which we develop and document our methodology to determine the allowance for credit losses. This loss rate is primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current economic conditions as well as delinquency trends, resolution rates, the aging of receivables, credit quality indicators and the financial health of specific customer classes or groups. The allowance for doubtful finance receivables is inherently more difficult to estimate than the allowance for trade accounts receivable because the underlying lease portfolio has an average maturity, at any time, of approximately two to three years and contains past due billed amounts, as well as unbilled amounts. We consider all available information in our quarterly assessments of the adequacy of the allowance for doubtful accounts. The identification of account-specific exposure is not a significant factor in establishing the allowance for doubtful finance receivables. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented.

Since our allowance for doubtful finance receivables is determined by country, the risk characteristics in our finance receivable portfolio segments will generally be consistent with the risk factors associated with the economies of those countries/regions. Loss rates in the U.S. remained steady and did not change significantly during 2016 and 2015. Since Europe is comprised of various countries and regional economies, the risk profile within our European portfolio segment is somewhat more diversified due to the varying economic conditions among and within the countries. Charge-offs in Europe were $15 in 2016 as compared to $17 in 2015, reflecting continued stabilization of Europe from the credit issues that began back in 2011.

The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables:



Allowance for Credit Losses:	United States			Canada			Europe			Other⁽²⁾			Total
Balance at December 31, 2014⁽¹⁾	$	51		$	20		$	58		$	2		$	131
Provision	11			6			10			1			28
Charge-offs	(8		)	(10		)	(17		)	(1		)	(36		)
Recoveries and other⁽³⁾	—			1			(6		)	—			(5		)
Balance at December 31, 2015	$	54		$	17		$	45		$	2		$	118
Provision	10			3			11			—			24
Charge-offs	(12		)	(8		)	(15		)	—			(35		)
Recoveries and other⁽³⁾	3			4			(4		)	—			3
Balance at December 31, 2016	$	55		$	16		$	37		$	2		$	110
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2015⁽⁴⁾	$	2,174		$	365		$	1,509		$	58		$	4,106
December 31, 2016⁽⁴⁾	$	2,138		$	378		$	1,286		$	52		$	3,854

_____________


(1)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.


(2)	Includes developing market countries and smaller units.


(3)	Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.


(4)	Total Finance receivables exclude the allowance for credit losses of $110 and $118 at December 31, 2016 and 2015, respectively.

In the U.S. and Canada, customers are further evaluated or segregated by class based on industry sector. The primary customer classes are Finance & Other Services, Government & Education; Graphic Arts; Industrial; Healthcare and Other. In Europe, customers are further grouped by class based on the country or region of the customer. The primary customer classes include the U.K./Ireland, France and the following European regions - Central, Nordic and Southern. These groupings or classes are used to understand the nature and extent of our exposure to credit risk arising from finance receivables.

We evaluate our customers based on the following credit quality indicators:

•

Investment grade: This rating includes accounts with excellent to good business credit, asset quality and capacity to meet financial obligations. These customers are less susceptible to adverse effects due to shifts in economic conditions or changes in circumstance. The rating generally equates to a Standard & Poors (S&P) rating of BBB- or better. Loss rates in this category are normally less than 1%.

•

Non-investment grade: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. This rating generally equates to a BB S&P rating. Although we experience higher loss rates associated with this customer class, we believe the risk is somewhat mitigated by the fact that our leases are fairly well dispersed across a large and diverse customer base. In addition, the higher loss rates are largely offset by the higher rates of return we obtain with such leases. Loss rates in this category are generally in the range of 2% to 4%.

•

Substandard: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. We use numerous strategies to mitigate risk including higher rates of interest, prepayments, personal guarantees, etc. Accounts in this category include customers who were downgraded during the term of the lease from investment and non-investment grade evaluation when the lease was originated. Accordingly there is a distinct possibility for a loss of principal and interest or customer default. The loss rates in this category are around 10%.

Credit quality indicators are updated at least annually, and the credit quality of any given customer can change during the life of the portfolio. Details about our finance receivables portfolio based on industry and credit quality indicators are as follows:



	December 31, 2016								December 31, 2015⁽⁴⁾
	Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables		Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables
Finance and other services	$	181	$	342	$	95	$	618	$	195	$	285	$	91	$	571
Government and education	543		57		8		608		575		48		7		630
Graphic arts	138		102		107		347		145		92		127		364
Industrial	82		78		24		184		89		62		22		173
Healthcare	79		47		17		143		90		46		19		155
Other	82		103		53		238		121		107		53		281
Total United States	1,105		729		304		2,138		1,215		640		319		2,174
Finance and other services	54		43		15		112		55		35		9		99
Government and education	52		6		2		60		59		7		2		68
Graphic arts	39		37		24		100		45		35		21		101
Industrial	21		13		6		40		23		12		3		38
Other	33		25		8		66		33		23		3		59
Total Canada	199		124		55		378		215		112		38		365
France	181		222		51		454		203		207		101		511
U.K/Ireland	189		63		1		253		235		91		3		329
Central⁽¹⁾	182		148		19		349		206		186		25		417
Southern⁽²⁾	36		131		14		181		36		138		17		191
Nordic⁽³⁾	26		22		1		49		24		35		2		61
Total Europe	614		586		86		1,286		704		657		148		1,509
Other	35		15		2		52		41		16		1		58
Total	$	1,953	$	1,454	$	447	$	3,854	$	2,175	$	1,425	$	506	$	4,106

_____________


(1)	Switzerland, Germany, Austria, Belgium and Holland.


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.


(4)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.

The aging of our receivables portfolio is based upon the number of days an invoice is past due. Receivables that are more than 90 days past due are considered delinquent. Receivable losses are charged against the allowance when management believes the uncollectibility of the receivable is confirmed and is generally based on individual credit evaluations, results of collection efforts and specific circumstances of the customer. Subsequent recoveries, if any, are credited to the allowance.

We generally continue to maintain equipment on lease and provide services to customers that have invoices for finance receivables that are 90 days or more past due and, as a result of the bundled nature of billings, we also continue to accrue interest on those receivables. However, interest revenue for such billings is only recognized if collectability is deemed reasonably assured. The aging of our billed finance receivables is as follows:



	December 31, 2016
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	13	$	3	$	1	$	17	$	601	$	618	$	11
Government and education	10		4		3		17		591		608		25
Graphic arts	13		1		—		14		333		347		5
Industrial	4		1		1		6		178		184		5
Healthcare	3		1		1		5		138		143		5
Other	9		2		1		12		226		238		5
Total United States	52		12		7		71		2,067		2,138		56
Canada	3		—		—		3		375		378		8
France	3		—		—		3		451		454		20
U.K./Ireland	2		1		—		3		250		253		1
Central⁽¹⁾	2		1		—		3		346		349		5
Southern⁽²⁾	5		1		1		7		174		181		6
Nordic⁽³⁾	1		—		—		1		48		49		1
Total Europe	13		3		1		17		1,269		1,286		33
Other	3		—		—		3		49		52		—
Total	$	71	$	15	$	8	$	94	$	3,760	$	3,854	$	97



	December 31, 2015⁽⁴⁾
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	10	$	2	$	2	$	14	$	557	$	571	$	14
Government and education	12		1		4		17		613		630		37
Graphic arts	12		2		1		15		349		364		8
Industrial	5		1		1		7		166		173		7
Healthcare	4		1		1		6		149		155		9
Other	14		2		2		18		263		281		7
Total United States	57		9		11		77		2,097		2,174		82
Canada	3		—		—		3		362		365		9
France	—		—		—		—		511		511		25
U.K./Ireland	1		—		—		1		328		329		1
Central⁽¹⁾	3		1		1		5		412		417		7
Southern⁽²⁾	8		2		3		13		178		191		10
Nordic⁽³⁾	1		—		—		1		60		61		4
Total Europe	13		3		4		20		1,489		1,509		47
Other	1		1		—		2		56		58		—
Total	$	74	$	13	$	15	$	102	$	4,004	$	4,106	$	138

_____________


(1)	Switzerland, Germany, Austria, Belgium and Holland.


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.


(4)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

Finance Receivables, Net

12 Months Ended

Dec. 31, 2016

Finance Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:



	December 31,
	2016			2015
Invoiced	$	651		$	741
Accrued	374			401
Allowance for doubtful accounts	(64		)	(74		)
Accounts Receivable, Net	$	961		$	1,068

Accounts Receivable Sales Arrangements

Of the accounts receivables sold and derecognized from our balance sheet, $531 and $524 remained uncollected as of December 31, 2016 and 2015, respectively. Accounts receivable sales were as follows:



	Year Ended December 31,
	2016		2015		2014
Accounts receivable sales	$	2,267	$	2,142	$	2,563
Deferred proceeds	233		247		387
Loss on sale of accounts receivable	16		13		15
Estimated increase (decrease) to operating cash flows⁽¹⁾	30		62		(64		)

_____________


(1)	Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency.

Finance Receivables, Net



	December 31,
	2016			2015
Gross receivables	$	4,380		$	4,683
Unearned income	(526		)	(577		)
Subtotal	3,854			4,106
Residual values	—			—
Allowance for doubtful accounts	(110		)	(118		)
Finance Receivables, Net	3,744			3,988
Less: Billed portion of finance receivables, net	90			97
Less: Current portion of finance receivables not billed, net	1,256			1,315
Finance Receivables Due After One Year, Net	$	2,398		$	2,576

Contractual maturities of our gross finance receivables as of December 31, 2016 were as follows (including those already billed of $90):



2017		2018		2019		2020		2021		Thereafter		Total
$	1,628	$	1,225	$	855	$	485	$	175	$	12	$	4,380

Sale of Finance Receivables



	Year Ended December 31,
	2013		2012
Net carrying value (NCV) sold	$	676	$	682
Allowance included in NCV	17		18
Cash proceeds received	635		630
Beneficial interests received	86		101

Summary Finance Receivable Sales

The net impact from the sales of finance receivables on operating cash flows is summarized below:




	2016			2015			2014			2013/2012
Net cash received for sales of finance receivables⁽¹⁾	$	—		$	—		$	—		$	1,256
Impact from prior sales of finance receivables⁽²⁾	(186		)	(342		)	(527		)	(437		)
Collections on beneficial interests	30			56			94			58
Estimated (Decrease) Increase to Operating Cash Flows	$	(156	)	$	(286	)	$	(433	)	$	877

_____________


(1)	Net of beneficial interest, fees and expenses.


(2)	Represents cash that would have been collected if we had not sold finance receivables.

Finance Receivables - Allowance for Credit Losses and Credit Quality

The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables:



Allowance for Credit Losses:	United States			Canada			Europe			Other⁽²⁾			Total
Balance at December 31, 2014⁽¹⁾	$	51		$	20		$	58		$	2		$	131
Provision	11			6			10			1			28
Charge-offs	(8		)	(10		)	(17		)	(1		)	(36		)
Recoveries and other⁽³⁾	—			1			(6		)	—			(5		)
Balance at December 31, 2015	$	54		$	17		$	45		$	2		$	118
Provision	10			3			11			—			24
Charge-offs	(12		)	(8		)	(15		)	—			(35		)
Recoveries and other⁽³⁾	3			4			(4		)	—			3
Balance at December 31, 2016	$	55		$	16		$	37		$	2		$	110
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2015⁽⁴⁾	$	2,174		$	365		$	1,509		$	58		$	4,106
December 31, 2016⁽⁴⁾	$	2,138		$	378		$	1,286		$	52		$	3,854

_____________


(1)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.


(2)	Includes developing market countries and smaller units.


(3)	Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.


(4)	Total Finance receivables exclude the allowance for credit losses of $110 and $118 at December 31, 2016 and 2015, respectively.

We evaluate our customers based on the following credit quality indicators:

•



	December 31, 2016								December 31, 2015⁽⁴⁾
	Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables		Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables
Finance and other services	$	181	$	342	$	95	$	618	$	195	$	285	$	91	$	571
Government and education	543		57		8		608		575		48		7		630
Graphic arts	138		102		107		347		145		92		127		364
Industrial	82		78		24		184		89		62		22		173
Healthcare	79		47		17		143		90		46		19		155
Other	82		103		53		238		121		107		53		281
Total United States	1,105		729		304		2,138		1,215		640		319		2,174
Finance and other services	54		43		15		112		55		35		9		99
Government and education	52		6		2		60		59		7		2		68
Graphic arts	39		37		24		100		45		35		21		101
Industrial	21		13		6		40		23		12		3		38
Other	33		25		8		66		33		23		3		59
Total Canada	199		124		55		378		215		112		38		365
France	181		222		51		454		203		207		101		511
U.K/Ireland	189		63		1		253		235		91		3		329
Central⁽¹⁾	182		148		19		349		206		186		25		417
Southern⁽²⁾	36		131		14		181		36		138		17		191
Nordic⁽³⁾	26		22		1		49		24		35		2		61
Total Europe	614		586		86		1,286		704		657		148		1,509
Other	35		15		2		52		41		16		1		58
Total	$	1,953	$	1,454	$	447	$	3,854	$	2,175	$	1,425	$	506	$	4,106

_____________


(1)	Switzerland, Germany, Austria, Belgium and Holland.


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.


(4)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.



	December 31, 2016
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	13	$	3	$	1	$	17	$	601	$	618	$	11
Government and education	10		4		3		17		591		608		25
Graphic arts	13		1		—		14		333		347		5
Industrial	4		1		1		6		178		184		5
Healthcare	3		1		1		5		138		143		5
Other	9		2		1		12		226		238		5
Total United States	52		12		7		71		2,067		2,138		56
Canada	3		—		—		3		375		378		8
France	3		—		—		3		451		454		20
U.K./Ireland	2		1		—		3		250		253		1
Central⁽¹⁾	2		1		—		3		346		349		5
Southern⁽²⁾	5		1		1		7		174		181		6
Nordic⁽³⁾	1		—		—		1		48		49		1
Total Europe	13		3		1		17		1,269		1,286		33
Other	3		—		—		3		49		52		—
Total	$	71	$	15	$	8	$	94	$	3,760	$	3,854	$	97



	December 31, 2015⁽⁴⁾
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	10	$	2	$	2	$	14	$	557	$	571	$	14
Government and education	12		1		4		17		613		630		37
Graphic arts	12		2		1		15		349		364		8
Industrial	5		1		1		7		166		173		7
Healthcare	4		1		1		6		149		155		9
Other	14		2		2		18		263		281		7
Total United States	57		9		11		77		2,097		2,174		82
Canada	3		—		—		3		362		365		9
France	—		—		—		—		511		511		25
U.K./Ireland	1		—		—		1		328		329		1
Central⁽¹⁾	3		1		1		5		412		417		7
Southern⁽²⁾	8		2		3		13		178		191		10
Nordic⁽³⁾	1		—		—		1		60		61		4
Total Europe	13		3		4		20		1,489		1,509		47
Other	1		1		—		2		56		58		—
Total	$	74	$	13	$	15	$	102	$	4,004	$	4,106	$	138

_____________


(1)	Switzerland, Germany, Austria, Belgium and Holland.


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.


(4)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.

Inventories and Equipment on Operating Leases, Net [Abstract]

Inventories and Equipment on Operating Leases, Net

12 Months Ended

Dec. 31, 2016

Inventories and Equipment on Operating Leases, Net

The following is a summary of Inventories by major category:



	December 31,
	2016		2015
Finished goods	$	713	$	751
Work-in-process	47		51
Raw materials	81		99
Total Inventories	$	841	$	901

The transfer of equipment from our inventories to equipment subject to an operating lease is presented in our Consolidated Statements of Cash Flows in the operating activities section. Equipment on operating leases and similar arrangements consists of our equipment rented to customers and depreciated to estimated salvage value at the end of the lease term.

Equipment on operating leases and the related accumulated depreciation were as follows:



	December 31,
	2016			2015
Equipment on operating leases	$	1,468		$	1,478
Accumulated depreciation	(993		)	(983		)
Equipment on Operating Leases, Net	$	475		$	495

Depreciable lives generally vary from three to four years consistent with our planned and historical usage of the equipment subject to operating leases. Our equipment operating lease terms vary, generally from one to three years. Scheduled minimum future rental revenues on operating leases with original terms of one year or longer are:



2017		2018		2019		2020		2021		Thereafter
$	319	$	221	$	142	$	76	$	26	$	3

Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, for the years ended December 31, 2016, 2015 and 2014 amounted to $132, $139 and $149, respectively.

Land, Buildings, Equipment and Software, Net

12 Months Ended

Dec. 31, 2016

Land, Buildings, Equipment and Software, Net [Abstract]

Land, Buildings, Equipment and Software, Net

Land, buildings and equipment, net were as follows:



		December 31,
	Estimated Useful Lives (Years)	2016			2015
Land		$	20		$	21
Building and building equipment	25 to 50	911			919
Leasehold improvements	Varies	219			244
Plant machinery	5 to 12	1,225			1,274
Office furniture and equipment	3 to 15	657			700
Other	4 to 20	70			63
Construction in progress		33			28
Subtotal		3,135			3,249
Accumulated depreciation		(2,475		)	(2,532		)
Land, Buildings and Equipment, Net		$	660		$	717

Depreciation expense and operating lease rent expense were as follows:



	Year Ended December 31,
	2016		2015		2014
Depreciation expense	$	148	$	151	$	179
Operating lease expense	157		164		175

We lease buildings and equipment, substantially all of which are accounted for as operating leases. Capital leased assets were $31 and $39 at December 31, 2016 and 2015, respectively.

Future minimum operating lease commitments that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2016 were as follows:



2017		2018		2019		2020		2021		Thereafter
$	124	$	94	$	72	$	53	$	40	$	71

Internal Use Software



	Year Ended December 31,
Additions to:	2016		2015		2014
Internal use software	$	45	$	64	$	57



	December 31,
Capitalized costs, net:	2016		2015
Internal use software	$	218	$	264

Useful lives of our internal use software generally vary from three to seven years.

Investment in Affiliates, at Equity

12 Months Ended

Dec. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investment in Affiliates, at Equity

Investments in corporate joint ventures and other companies in which we generally have a 20% to 50% ownership interest were as follows:



	December 31,
	2016		2015
Fuji Xerox	$	1,313	$	1,315
Other	75		67
Investments in Affiliates, at Equity	$	1,388	$	1,382

Our equity in net income of our unconsolidated affiliates was as follows:



	Year Ended December 31,
	2016		2015		2014
Fuji Xerox	$	108	$	117	$	147
Other	13		18		13
Total Equity in Net Income of Unconsolidated Affiliates	$	121	$	135	$	160

Fuji Xerox

Fuji Xerox is headquartered in Tokyo and operates in Japan, China, Australia, New Zealand, Vietnam and other areas of the Pacific Rim. Our investment in Fuji Xerox of $1,313 at December 31, 2016, differs from our implied 25% interest in the underlying net assets, or $1,406, due primarily to our deferral of gains resulting from sales of assets by us to Fuji Xerox.

Equity in net income of Fuji Xerox is affected by certain adjustments to reflect the deferral of profit associated with intercompany sales. These adjustments may result in recorded equity income that is different from that implied by our 25% ownership interest.

Summarized financial information for Fuji Xerox is as follows:



	Year Ended December 31,
	2016		2015		2014
Summary of Operations
Revenues	$	10,161	$	9,925	$	11,112
Costs and expenses	9,486		9,198		10,242
Income before income taxes	675		727		870
Income tax expense	217		233		262
Net Income	458		494		608
Less: Net income - noncontrolling interests	7		7		4
Net Income - Fuji Xerox	$	451	$	487	$	604
Balance Sheet
Assets:
Current assets	$	4,464	$	4,585	$	4,801
Long-term assets	4,734		4,946		4,742
Total Assets	$	9,198	$	9,531	$	9,543
Liabilities and Equity:
Current liabilities	$	2,679	$	2,808	$	2,982
Long-term debt	283		584		580
Other long-term liabilities	583		511		482
Noncontrolling interests	31		31		30
Fuji Xerox shareholders' equity	5,622		5,597		5,469
Total Liabilities and Equity	$	9,198	$	9,531	$	9,543

Yen/U.S. Dollar exchange rates used to translate are as follows:



Financial Statement	Exchange Basis	2016	2015	2014
Summary of Operations	Weighted average rate	108.68	121.01	105.58
Balance Sheet	Year-end rate	116.53	120.49	119.46

Transactions with Fuji Xerox

We receive dividends from Fuji Xerox, which are reflected as a reduction in our investment. Additionally, we have a Technology Agreement with Fuji Xerox whereby we receive royalty payments for their use of our Xerox brand trademark, as well as rights to access our patent portfolio in exchange for access to their patent portfolio. These payments are included in Outsourcing, maintenance and rental revenues in the Consolidated Statements of (Loss) Income. We also have arrangements with Fuji Xerox whereby we purchase inventory from and sell inventory to Fuji Xerox. Pricing of the transactions under these arrangements is based upon terms the Company believes to be negotiated at arm's length. Our purchase commitments with Fuji Xerox are in the normal course of business and typically have a lead time of three months. In addition, we pay Fuji Xerox and they pay us for unique research and development costs.

Transactions with Fuji Xerox were as follows:



	Year Ended December 31,
	2016		2015		2014
Dividends received from Fuji Xerox	$	47	$	51	$	58
Royalty revenue earned	107		102		115
Inventory purchases from Fuji Xerox	1,641		1,728		1,831
Inventory sales to Fuji Xerox	80		108		120
R&D payments received from Fuji Xerox	1		1		1
R&D payments paid to Fuji Xerox	13		7		17

As of December 31, 2016 and 2015, net amounts due to Fuji Xerox were $273 and $307, respectively.

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill

The following table presents the changes in the carrying amount of goodwill, by reportable segment:



	Document Technology			Services			Total
Balance at December 31, 2014	$	2,353		$	1,668		$	4,021
Foreign currency translation	(38		)	(38		)	(76		)
Acquisitions:
Other	6			—			6
Balance at December 31, 2015	$	2,321		$	1,630		$	3,951
Foreign currency translation	(93		)	(90		)	(183		)
Acquisitions:
Imagetek	10			—			10
Other	9			—			9
Balance at December 31, 2016	$	2,247		$	1,540		$	3,787

Intangible Assets, Net

Net intangible assets were $290 at December 31, 2016 of which $247 relate to our Document Technology segment and $43 relate to our Services segment. Intangible assets were comprised of the following:



		December 31, 2016						December 31, 2015
	Weighted Average Amortization	Gross Carrying Amount		Accumulated Amortization		Net Amount		Gross Carrying Amount		Accumulated Amortization		Net Amount
Customer relationships	13 years	$	508	$	410	$	98	$	509	$	378	$	131
Distribution network	25 years	123		84		39		123		79		44
Trademarks	20 years	250		107		143		248		95		153
Technology, patents and non-compete	13 years	15		5		10		19		7		12
Total Intangible Assets		$	896	$	606	$	290	$	899	$	559	$	340

Amortization expense related to intangible assets was $58, $60, and $65 for the years ended December 31, 2016, 2015 and 2014, respectively. Excluding the impact of additional acquisitions, amortization expense is expected to approximate $58 in 2017, $57 in 2018, $39 in 2019 and $18 in each of the years 2020 and 2021.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

Restructuring and Related Activities [Abstract]

Restructuring and Asset Impairment Charges

12 Months Ended

Dec. 31, 2016

Restructuring and Asset Impairment Charges

In 2016, in conjunction with our announcement of the planned Separation of the Company, we initiated a three-year Strategic Transformation program to accelerate our cost productivity initiatives. The program is expected to deliver productivity gains and cost savings in areas such as delivery, remote connectivity, sales productivity, pricing, design efficiency and supply chain optimization.

The program is expected to include restructuring charges related to downsizing our employee base, exiting certain activities, outsourcing certain internal functions and engaging in other actions designed to reduce our cost structure and improve productivity. In addition, we expect to incur asset impairment charges in connection with these restructuring actions for those assets that are sold, abandoned or made obsolete as a result of initiatives under the program. Beginning in 2016, all restructuring costs incurred were the result of actions and initiatives associated with the Strategic Transformation program.

Costs associated with restructuring, including employee severance and lease termination costs, are generally recognized when it has been determined that a liability has been incurred, which is generally upon communication to the affected employees or exit from the leased facility, respectively. In those geographies where we have either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan, we recognize employee severance costs when they are both probable and reasonably estimable.

A summary of our restructuring program activity during the three years ended December 31, 2016 is as follows:



	Severance and Related Costs			Lease Cancellation and Other Costs			Asset Impairments⁽²⁾			Total
Balance at December 31, 2013	$	96		$	3		$	—		$	99
Restructuring provision	115			3			5			123
Reversals of prior accruals	(16		)	—			(1		)	(17		)
Net Current Period Charges⁽¹⁾	99			3			4			106
Charges against reserve and currency	(112		)	(5		)	(4		)	(121		)
Balance at December 31, 2014	$	83		$	1		$	—		$	84
Restructuring provision	35			2			7			44
Reversals of prior accruals	(16		)	(1		)	—			(17		)
Net Current Period Charges⁽¹⁾	19			1			7			27
Charges against reserve and currency	(84		)	(1		)	(7		)	(92		)
Balance at December 31, 2015	$	18		$	1		$	—		$	19
Restructuring provision	224			28			—			252
Reversals of prior accruals	(16		)	(1		)	(5		)	(22		)
Net Current Period Charges⁽¹⁾	208			27			(5		)	230
Charges against reserve and currency	(122		)	(5		)	5			(122		)
Balance at December 31, 2016	$	104		$	23		$	—		$	127

_____________


(1)	Represents net amount recognized within the Consolidated Statements of (Loss) Income for the years shown for restructuring and asset impairments charges.


(2)	Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision.

The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows:



	Year Ended December 31,
	2016			2015			2014
Charges against reserve	$	(122	)	$	(92	)	$	(121	)
Asset impairments	—			7			5
Effects of foreign currency and other non-cash items	4			6			6
Restructuring Cash Payments	$	(118	)	$	(79	)	$	(110	)

The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment:



	Year Ended December 31,
	2016			2015		2014
Document Technology	$	208		$	15	$	76
Services	25			4		16
Other	(3		)	8		14
Total Net Restructuring Charges	$	230		$	27	$	106

Supplementary Financial Information

12 Months Ended

Dec. 31, 2016

Supplemental Financial Information [Abstract]

Supplementary Financial Information

The components of Other assets and liabilities were as follows:



	December 31,
	2016		2015
Other Current Assets
Income taxes receivable	$	50	$	12
Royalties, license fees and software maintenance	21		34
Restricted cash	92		84
Prepaid expenses	45		51
Derivative instruments	88		55
Deferred purchase price from sales of accounts receivables	48		61
Beneficial interests - sales of finance receivables	8		8
Advances and deposits	15		25
Other	125		128
Due from Conduent	127		—
Total Other Current Assets	$	619	$	458
Other Current Liabilities
Income taxes payable	$	45	$	28
Other taxes payable	78		76
Interest payable	55		73
Restructuring reserves	121		18
Derivative instruments	39		11
Product warranties	7		8
Dividends payable	91		85
Distributor and reseller rebates/commissions	120		106
Servicer liabilities	62		83
Other	290		227
Total Other Current Liabilities	$	908	$	715
Other Long-term Assets
Deferred taxes	$	1,475	$	1,450
Income taxes receivable	14		9
Prepaid pension costs	17		22
Derivative instruments	4		7
Net investment in TRG	126		142
Internal use software, net	218		264
Product software, net	8		8
Restricted cash	87		72
Debt issuance costs, net	3		4
Customer contract costs, net	7		13
Beneficial interest - sales of finance receivables	16		30
Deferred compensation plan investments	15		13
Other	165		176
Total Other Long-term Assets	$	2,155	$	2,210
Other Long-term Liabilities
Deferred taxes	$	42	$	51
Income taxes payable	16		49
Environmental reserves	9		11
Restructuring reserves	6		1
Other	120		126
Total Other Long-term Liabilities	$	193	$	238

Restricted Cash

As more fully discussed in Note 18 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of continuing the litigation. In addition, as more fully discussed in Note 5 - Accounts Receivable, Net and Note 6 - Finance Receivables, Net, we continue to service the receivables sold under most of our receivable sale agreements. As servicer, we may collect cash related to sold receivables prior to year-end that will be remitted to the purchaser the following year. Since we are acting on behalf of the purchaser in our capacity as servicer, such cash collected is reported as restricted cash. Restricted cash amounts are classified in our Consolidated Balance Sheets based on when the cash will be contractually or judicially released.

Restricted cash amounts were as follows:



	December 31,
	2016		2015
Tax and labor litigation deposits in Brazil	$	85	$	71
Escrow and cash collections related to receivable sales	62		83
Other restricted cash	32		2
Total Restricted Cash	$	179	$	156

Net Investment in TRG

At December 31, 2016, our net investment in The Resolution Group (TRG) primarily consisted of a $140 performance-based instrument relating to the 1997 sale of TRG, net of remaining liabilities associated with our discontinued operations of $14. The recovery of the performance-based instrument is dependent on the sufficiency of TRG's available cash flows, as guaranteed by TRG's ultimate parent, which are expected to be recovered in annual cash distributions through 2017. The performance-based instrument is pledged as security for our future funding obligations to our U.K. Pension Plan for salaried employees.

Due from Conduent

The balance Due from Conduent includes the following amounts:



Due from\(to) Conduent	December 31, 2016
Cash adjustment	$	161
Taxes payable	(32		)
Other	(2		)
Total Due from Conduent	$	127

The Cash adjustment primarily represents the final adjustment that was required to bring Conduent's cash balance to $225 at Separation, as provided for in the Separation Agreement. This amount was paid to Xerox in January 2017. The income tax payable represents the final adjustment for income tax payments between the two companies for their consolidated 2016 tax returns; which will be the last returns to be filed on a consolidated basis. The tax sharing between the two companies was based on a separate return basis; as if Conduent filed a separate tax return.

Debt

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Debt

Short-term borrowings were as follows:



	December 31,
	2016		2015
Notes Payable	$	4	$	3
Current maturities of long-term debt	1,007		959
Total Short-term Debt	$	1,011	$	962

We classify our debt based on the contractual maturity dates of the underlying debt instruments or as of the earliest put date available to the debt holders. We defer costs associated with debt issuance over the applicable term, or to the first put date in the case of convertible debt or debt with a put feature. These costs are amortized as interest expense in our Consolidated Statements of (Loss) Income.

Long-term debt was as follows:



					December 31,
	Stated Rate		Weighted Average Interest Rates at December 31, 2016⁽³⁾		2016			2015
Xerox Corporation
Senior Notes due 2016					$	—		$	700
Notes due 2016					—			250
Senior Notes due 2017⁽¹⁾	6.75	%	6.83	%	500			500
Senior Notes due 2017⁽¹⁾	2.95	%	2.98	%	500			500
Notes due 2018	0.57	%	0.57	%	1			1
Senior Notes due 2018	6.35	%	6.37	%	1,000			1,000
Senior Notes due 2019	2.75	%	2.77	%	500			500
Senior Notes due 2019	5.63	%	5.66	%	650			650
Senior Notes due 2020	2.80	%	2.81	%	400			400
Senior Notes due 2020	3.50	%	3.70	%	400			400
Senior Notes due 2020	2.75	%	2.77	%	400			400
Senior Notes due 2021	4.50	%	5.39	%	1,062			1,062
Senior Notes due 2024	3.80	%	3.84	%	300			300
Senior Notes due 2035	4.80	%	4.84	%	250			250
Senior Notes due 2039	6.75	%	6.78	%	350			350
Subtotal - Xerox Corporation					$	6,313		$	7,263
Subsidiary Companies
Capital lease obligations			9.44	%	31			39
Other			0.34	%	1			1
Subtotal - Subsidiary Companies					$	32		$	40

Principal debt balance					$	6,345		$	7,303
Unamortized discount					(43		)	(52		)
Debt issuance costs					(21		)	(29		)
Fair value adjustments⁽²⁾
Terminated swaps					27			47
Current swaps					4			7
Less: current maturities					(1,007		)	(959		)
Total Long-term Debt					$	5,305		$	6,317

_____________


(1)	Senior Notes maturing in 2017 expected to be paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 4 - Divestitures for additional information.

(2)

Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment.


(3)	Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt.

Scheduled principal payments due on our long-term debt for the next five years and thereafter are as follows:



2017⁽¹⁾		2018		2019		2020		2021		Thereafter		Total
$	1,007	$	1,008	$	1,156	$	1,207	$	1,067	$	900	$	6,345

_____________


(1)	Quarterly long-term debt maturities from continuing operations for 2017 are $1,001, $2, $2 and $2 for the first, second, third and fourth quarters, respectively.

Term Loan Facility

On March 4, 2016, Xerox Corporation entered into a $1.0 billion Senior Unsecured Term Facility. The facility was fully drawn by April 1, 2016 and was required to be repaid upon completion of the Separation. Borrowings under the facility bore interest at a rate of LIBOR plus 1.50% and interest rates varied between 1.95% and 2.16% during 2016.

The proceeds of the facility were used to repay maturing debt of $950 ($700 of 6.40% Senior Notes on March 15, 2016 and $250 of 7.20% Notes on April 1, 2016).

As previously noted, this facility, which was required to be repaid upon completion of the Separation, was repaid in January 2017. Accordingly, the facility is excluded from Total Debt at December 31, 2016 and is reported in the Current Liabilities of discontinued operations at December 31, 2016. Interest expense associated with this borrowing incurred during 2016 is included in Loss from discontinued operations.

Refer to Note 1- Basis of Presentation for information regarding the Company separation.

Commercial Paper

We have a private placement commercial paper (CP) program in the U.S. under which we may issue CP up to a maximum amount of $2.0 billion outstanding at any time. Aggregate CP and Credit Facility borrowings may not exceed $2.0 billion outstanding at any time. The maturities of the CP Notes will vary, but may not exceed 390 days from the date of issue. The CP Notes are sold at a discount from par or, alternatively, sold at par and bear interest at market rates. We had no CP outstanding at December 31, 2016 and 2015.

Credit Facility

We have a $2.0 billion unsecured revolving Credit Facility with a group of lenders, which matures in 2019. The Credit Facility contains a $300 letter of credit sub-facility, and also includes an accordion feature that would allow us to increase (from time to time, with willing lenders) the overall size of the facility up to an aggregate amount not to exceed $2.75 billion.

The Credit Facility provides a backstop to our $2.0 billion CP program. Proceeds from any borrowings under the Credit Facility can be used to provide working capital for the Company and its subsidiaries and for general corporate purposes. At December 31, 2016 we had no outstanding borrowings or letters of credit under the Credit Facility.

The Credit Facility is available, without sublimit, to certain of our qualifying subsidiaries. Our obligations under the Credit Facility are unsecured and are not currently guaranteed by any of our subsidiaries. Any domestic subsidiary that guarantees more than $100 of Xerox Corporation debt must also guaranty our obligations under the Credit Facility. In the event that any of our subsidiaries borrows under the Credit Facility, its borrowings thereunder would be guaranteed by us.

Borrowings under the Credit Facility bear interest at our choice, at either (a) a Base Rate as defined in our Credit Facility agreement, plus a spread that varies between 0.000% and 0.45% depending on our credit rating at the time of borrowing, or (b) LIBOR plus an all-in spread that varies between 0.90% and 1.45% depending on our credit rating at the time of borrowing. Based on our credit rating as of December 31, 2016, the applicable all-in spreads for the Base Rate and LIBOR borrowing were 0.30% and 1.30%, respectively.

An annual facility fee is payable to each lender in the Credit Facility at a rate that varies between 0.10% and 0.30% depending on our credit rating. Based on our credit rating as of December 31, 2016, the applicable rate is 0.20%.

The Credit Facility contains various conditions to borrowing and affirmative, negative and financial maintenance covenants. Certain of the more significant covenants are summarized below:


(a)	Maximum leverage ratio (a quarterly test that is calculated as principal debt divided by consolidated EBITDA, as defined) of 3.75x.


(b)	Minimum interest coverage ratio (a quarterly test that is calculated as consolidated EBITDA divided by consolidated interest expense) may not be less than 3.00x.


(c)	Limitations on (i) liens of Xerox and certain of our subsidiaries securing debt, (ii) certain fundamental changes to corporate structure, (iii) changes in nature of business and (iv) limitations on debt incurred by certain subsidiaries.

The Credit Facility also contains various events of default, the occurrence of which could result in termination of the lenders' commitments to lend and the acceleration of all our obligations under the Credit Facility. These events of default include, without limitation: (i) payment defaults, (ii) breaches of covenants under the Credit Facility (certain of which breaches do not have any grace period), (iii) cross-defaults and acceleration to certain of our other obligations and (iv) a change of control of Xerox.

Interest

Interest paid on our short-term and long-term debt amounted to $352, $365 and $400 for the years ended December 31, 2016, 2015 and 2014, respectively.



	Year Ended December 31,
	2016		2015		2014
Interest paid - continuing operations	$	332	$	356	$	387
Interest paid - discontinued operations	20		9		13
Total interest paid on debt	$	352	$	365	$	400

Interest expense and interest income was as follows:



	Year Ended December 31,
	2016		2015		2014
Interest expense⁽¹⁾	$	309	$	346	$	366
Interest income⁽²⁾	330		352		396

_____________


(1)	Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of (Loss) Income.


(2)	Includes Finance income, as well as other interest income that is included in Other expenses, net in the Consolidated Statements of (Loss)Income.

Equipment financing interest is determined based on an estimated cost of funds, applied against the estimated level of debt required to support our net finance receivables. The estimated cost of funds is based on the interest cost associated with actual borrowings determined to be in support of the leasing business. The estimated level of debt continues to be based on an assumed 7 to 1 leverage ratio of debt/equity as compared to our average finance receivable balance during the applicable period.

Financial Instruments

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

We are exposed to market risk from changes in foreign currency exchange rates and interest rates, which could affect operating results, financial position and cash flows. We manage our exposure to these market risks through our regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. These derivative financial instruments are utilized to hedge economic exposures, as well as to reduce earnings and cash flow volatility resulting from shifts in market rates. We enter into limited types of derivative contracts, including interest rate swap agreements, foreign currency spot, forward and swap contracts and net purchased foreign currency options to manage interest rate and foreign currency exposures. Our primary foreign currency market exposures include the Japanese Yen, Euro and U.K. Pound Sterling. The fair market values of all our derivative contracts change with fluctuations in interest rates and/or currency exchange rates and are designed so that any changes in their values are offset by changes in the values of the underlying exposures. Derivative financial instruments are held solely as risk management tools and not for trading or speculative purposes. The related cash flow impacts of all of our derivative activities are reflected as cash flows from operating activities.

We do not believe there is significant risk of loss in the event of non-performance by the counterparties associated with our derivative instruments because these transactions are executed with a diversified group of major financial institutions. Further, our policy is to deal only with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposures to such counterparties.

Interest Rate Risk Management

We use interest rate swap agreements to manage our interest rate exposure and to achieve a desired proportion of variable and fixed rate debt. These derivatives may be designated as fair value hedges or cash flow hedges depending on the nature of the risk being hedged.

Terminated Swaps

During the period from 2004 to 2011, we early terminated several interest rate swaps that were designated as fair value hedges of certain debt instruments. The associated net fair value adjustments to the debt instruments are being amortized to interest expense over the remaining term of the related notes. In 2016, 2015 and 2014, the amortization of these fair value adjustments reduced interest expense by $19, $22 and $31, respectively, and we expect to record a net decrease in interest expense of $27 in future years through 2018.

Fair Value Hedges

As of December 31, 2016 and 2015, pay variable/received fixed interest rate swaps with notional amounts of $300 and $300, respectively, and net asset fair value of $4 and $7, respectively, were designated and accounted for as fair value hedges. The swaps were structured to hedge the fair value of related debt by converting them from fixed rate instruments to variable rate instruments. No ineffective portion was recorded to earnings during 2016 or 2015.

The following is a summary of our fair value hedges at December 31, 2016:



Debt Instrument	Year First Designated	Notional Amount		Net Fair Value		Weighted Average Interest Rate Paid		Interest Rate Received		Basis	Maturity
Senior Note 2021	2014	$	300	$	4	2.60	%	4.50	%	Libor	2021

Foreign Exchange Risk Management

As a global company, we are exposed to foreign currency exchange rate fluctuations in the normal course of our business. As a part of our foreign exchange risk management strategy, we use derivative instruments, primarily forward contracts and purchased option contracts, to hedge the following foreign currency exposures, thereby reducing volatility of earnings or protecting fair values of assets and liabilities:


•	Foreign currency-denominated assets and liabilities


•	Forecasted purchases, and sales in foreign currency

At December 31, 2016, we had outstanding forward exchange and purchased option contracts with gross notional values of $3,149, which is typical of the amounts that are normally outstanding at any point during the year. Approximately 85% of these contracts mature within three months, 11% in three to six months and 4% in six to twelve months.

The following is a summary of the primary hedging positions and corresponding fair values as of December 31, 2016:



Currencies Hedged (Buy/Sell)	Gross Notional Value		Fair Value Asset (Liability)⁽¹⁾
Euro/U.K. Pound Sterling	$	1,321	$	22
Japanese Yen/U.S. Dollar	389		(27		)
U.S. Dollar/U.K. Pound Sterling	268		41
Japanese Yen/Euro	261		(6		)
U.S. Dollar/Euro	210		6
Canadian Dollar/U.K. Pound Sterling	169		14
Swiss Franc/Euro	98		—
U.K. Pound Sterling/Euro	98		(1		)
U.K. Pound Sterling/U.S. Dollar	77		(1		)
Euro/Japanese Yen	26		—
Euro/Mexican Peso	25		2
All Other	207		(1		)
Total Foreign Exchange Hedging	$	3,149	$	49

____________


(1)	Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2016.

Foreign Currency Cash Flow Hedges

We designate a portion of our foreign currency derivative contracts as cash flow hedges of our foreign currency-denominated inventory purchases, sales and expenses. No amount of ineffectiveness was recorded in the Consolidated Statements of (Loss) Income for these designated cash flow hedges and all components of each derivative’s gain or loss was included in the assessment of hedge effectiveness. The net (liability) asset fair value of these contracts were $(20) and $1 as of December 31, 2016 and December 31, 2015, respectively.

Summary of Derivative Instruments Fair Value

The following table provides a summary of the fair value amounts of our derivative instruments:



		December 31,
Designation of Derivatives	Balance Sheet Location	2016			2015
Derivatives Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	6		$	4
	Other current liabilities	(26		)	(2		)
Foreign currency options	Other current assets	—			—
	Other current liabilities	—			(1		)
Interest rate swaps	Other long-term assets	4			7
	Net Designated Derivative (Liability) Asset	$	(16	)	$	8

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	82		$	51
	Other current liabilities	(13		)	(8		)
	Net Undesignated Derivative Asset	$	69		$	43

Summary of Derivatives	Total Derivative Assets	$	92		$	62
	Total Derivative Liabilities	(39		)	(11		)
	Net Derivative Asset	$	53		$	51

Summary of Derivative Instruments Gains (Losses)

Derivative gains and (losses) affect the income statement based on whether such derivatives are designated as hedges of underlying exposures. The following is a summary of derivative gains and (losses).

Designated Derivative Instruments Gains (Losses)

The following tables provide a summary of gains (losses) on derivative instruments:



		Year Ended December 31,
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	Derivative Gain (Loss) Recognized in Income							Hedged Item Gain (Loss) Recognized in Income
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	2016			2015		2014		2016		2015			2014
Interest rate contracts	Interest expense	$	(3	)	$	2	$	5	$	3	$	(2	)	$	(5	)



	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)							Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	Gain (Loss) Reclassified from AOCI to Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships	2016		2015		2014				2016		2015			2014
Foreign exchange contracts – forwards/options	$	20	$	17	$	(20	)	Cost of sales	$	42	$	(23	)	$	(39	)

No amount of ineffectiveness was recorded in the Consolidated Statements of (Loss) Income for these designated cash flow hedges and all components of each derivative’s gain or (loss) were included in the assessment of hedge effectiveness. In addition, no amount was recorded for an underlying exposure that did not occur or was not expected to occur.

As of December 31, 2016, net after-tax losses of $13 were recorded in accumulated other comprehensive loss associated with our cash flow hedging activity. The entire balance is expected to be reclassified into net income within the next 12 months, providing an offsetting economic impact against the underlying anticipated transactions.

Non-Designated Derivative Instruments Losses

Non-designated derivative instruments are primarily instruments used to hedge foreign currency-denominated assets and liabilities. They are not designated as hedges since there is a natural offset for the re-measurement of the underlying foreign currency-denominated asset or liability.

The following table provides a summary of losses on non-designated derivative instruments:



		Year Ended December 31,
Derivatives NOT Designated as Hedging Instruments	Location of Derivative Loss	2016		2015		2014
Foreign exchange contracts – forwards	Other expense – Currency gains (losses), net	$	172	$	17	$	(9	)

During the three years ended December 31, 2016, we recorded Currency losses, net of $13, $2 and $6, respectively. Currency (losses) gains, net includes the mark-to-market adjustments of the derivatives not designated as hedging instruments and the related cost of those derivatives, as well as the re-measurement of foreign currency-denominated assets and liabilities.

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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Fair Value of Financial Assets and Liabilities

Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

The following table represents assets and liabilities fair value measured on a recurring basis. The basis for the measurement at fair value in all cases is Level 2 – Significant Other Observable Inputs.



	As of December 31,
	2016		2015
Assets
Foreign exchange contracts - forwards	$	88	$	55
Interest rate swaps	4		7
Deferred compensation investments in mutual funds	15		13
Total	$	107	$	75
Liabilities
Foreign exchange contracts - forwards	$	39	$	10
Foreign currency options	—		1
Deferred compensation plan liabilities	17		15
Total	$	56	$	26

We utilize the income approach to measure the fair value for our derivative assets and liabilities. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates and forward prices, and therefore are classified as Level 2.

Fair value for our deferred compensation plan investments in mutual funds is based on quoted market prices for those funds. Fair value for deferred compensation plan liabilities is based on the fair value of investments corresponding to employees’ investment selections.

Summary of Other Financial Assets and Liabilities

The estimated fair values of our other financial assets and liabilities were as follows:



	December 31, 2016				December 31, 2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	2,223	$	2,223	$	1,228	$	1,228
Accounts receivable, net	961		961		1,068		1,068
Short-term debt	1,011		1,015		962		954
Long-term debt	5,305		5,438		6,317		6,358

The fair value amounts for Cash and cash equivalents and Accounts receivable, net, approximate carrying amounts due to the short maturities of these instruments. The fair value of Short and Long-term debt was estimated based on the current rates offered to us for debt of similar maturities (Level 2). The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at such date.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Employee Benefit Plans

We sponsor numerous defined benefit and defined contribution pension and other post-retirement benefit plans, primarily retiree health care, in our domestic and international operations. December 31 is the measurement date for all of our post-retirement benefit plans.

Over the past several years, where legally possible, we have amended our major defined benefit pension plans to freeze current benefits and eliminate benefits accruals for future service, including our primary U.S. defined benefit plan for salaried employees, the Canadian Salary Pension Plan and the U.K. Final Salary Pension Plan. The freeze of current benefits is the primary driver of the reduction in pension service costs since 2012. In certain Non-U.S. plans we are required to continue to consider salary increases and inflation in determining the benefit obligation related to prior service. The Netherlands defined benefit pension plan has also been amended to reflect the Company's ability to reduce the indexation of future pension benefits within the plan in scenarios when the returns on plan assets are insufficient to cover that indexation.

Prior to the freeze of current benefits, most of our defined benefit pension plans generally provided employees a benefit, depending on eligibility, calculated under a highest average pay and years of service formula. Our primary domestic defined benefit pension plans provided a benefit at the greater of (i) the highest average pay and years of service formula, (ii) the benefit calculated under a formula that provides for the accumulation of salary and interest credits during an employee's work life or (iii) the individual account balance from the Company's prior defined contribution plan (Transitional Retirement Account or TRA).

Pension plan assets consist of both defined benefit plan assets and assets legally restricted to the TRA accounts. The combined investment results for these plans, along with the results for our other defined benefit plans, are shown below in the “actual return on plan assets” caption. To the extent that investment results relate to TRA, such results are charged directly to these accounts as a component of interest cost.



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2016			2015			2016			2015			2016			2015
Change in Benefit Obligation:
Benefit obligation, January 1	$	4,126		$	4,642		$	6,308		$	6,962		$	855		$	937
Service cost	4			4			31			32			6			7
Interest cost	184			80			195			203			32			34
Plan participants' contributions	—			—			4			4			1			14
Actuarial loss (gain)	114			(223		)	636			(94		)	(75		)	(4		)
Currency exchange rate changes	—			—			(774		)	(524		)	4			(25		)
Plan Amendments/Curtailments	—			—			—			(17		)	—			(31		)
Benefits paid/settlements	(275		)	(377		)	(234		)	(255		)	(62		)	(77		)
Other	8			—			(6		)	(3		)	—			—
Benefit Obligation, December 31	$	4,161		$	4,126		$	6,160		$	6,308		$	761		$	855

Change in Plan Assets:
Fair value of plan assets, January 1	$	2,806		$	3,081		$	5,353		$	5,930		$	—		$	—
Actual return on plan assets	220			(70		)	804			(20		)	—			—
Employer contributions	24			173			154			128			61			63
Plan participants' contributions	—			—			4			4			1			14
Currency exchange rate changes	—			—			(694		)	(428		)	—			—
Benefits paid/settlements	(275		)	(377		)	(234		)	(255		)	(62		)	(77		)
Other	(1		)	(1		)	(3		)	(6		)	—			—
Fair Value of Plan Assets, December 31	$	2,774		$	2,806		$	5,384		$	5,353		$	—		$	—

Net Funded Status at December 31⁽¹⁾	$	(1,387	)	$	(1,320	)	$	(776	)	$	(955	)	$	(761	)	$	(855	)

Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	$	—		$	—		$	17		$	22		$	—		$	—
Accrued compensation and benefit costs	(24		)	(23		)	(22		)	(26		)	(63		)	(68		)
Pension and other benefit liabilities	(1,363		)	(1,297		)	(771		)	(951		)	—			—
Post-retirement medical benefits	—			—			—			—			(698		)	(787		)
Net Amounts Recognized	$	(1,387	)	$	(1,320	)	$	(776	)	$	(955	)	$	(761	)	$	(855	)

_____________


(1)	Includes under-funded and un-funded plans.

Benefit plans pre-tax amounts recognized in AOCL at December 31:



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2016			2015			2016			2015			2016			2015
Net actuarial loss	$	1,094		$	1,101		$	1,741		$	1,966		$	37		$	112
Prior service credit	(9		)	(11		)	(28		)	(33		)	(29		)	(34		)
Total Pre-tax Loss	$	1,085		$	1,090		$	1,713		$	1,933		$	8		$	78

Accumulated Benefit Obligation	$	4,161		$	4,126		$	5,931		$	6,068

Aggregate information for pension plans with an Accumulated benefit obligation in excess of plan assets is presented below:



	December 31, 2016						December 31, 2015
	Projected benefit obligation		Accumulated benefit obligation		Fair value of plan assets		Projected benefit obligation		Accumulated benefit obligation		Fair value of plan assets
Underfunded Plans:
U.S.	$	3,820	$	3,820	$	2,774	$	3,781	$	3,781	$	2,806
Non U.S.	4,535		4,368		4,194		4,803		4,644		4,300

Unfunded Plans:
U.S.	$	341	$	341	$	—	$	345	$	345	$	—
Non U.S.	445		436		—		421		413		—

Total Underfunded and Unfunded Plans:
U.S.	$	4,161	$	4,161	$	2,774	$	4,126	$	4,126	$	2,806
Non U.S.	4,980		4,804		4,194		5,224		5,057		4,300
Total	$	9,141	$	8,965	$	6,968	$	9,350	$	9,183	$	7,106

Our pension plan assets and benefit obligations at December 31, 2016 were as follows:



	Fair Value of Pension Plan Assets		Pension Benefit Obligations		Net Funded Status
U.S. funded	$	2,774	$	3,820	$	(1,046	)
U.S. unfunded	—		341		(341		)
Total U.S.	$	2,774	$	4,161	$	(1,387	)
U.K.	3,445		3,679		(234		)
Canada	661		700		(39		)
Other	1,278		1,781		(503		)
Total	$	8,158	$	10,321	$	(2,163	)

The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:



	Year Ended December 31,
	Pension Benefits
	U.S. Plans									Non-U.S. Plans									Retiree Health
	2016			2015			2014			2016			2015			2014			2016			2015			2014
Components of Net Periodic Benefit Costs:
Service cost	$	4		$	4		$	4		$	31		$	32		$	31		$	6		$	7		$	9
Interest cost⁽¹⁾	184			80			278			195			203			262			32			34			36
Expected return on plan assets⁽²⁾	(190		)	(79		)	(287		)	(249		)	(284		)	(332		)	—			—			—
Recognized net actuarial loss	26			24			17			65			70			54			2			1			1
Amortization of prior service credit	(2		)	(2		)	(2		)	(3		)	4			(1		)	(5		)	(18		)	(43		)
Recognized settlement loss	65			88			51			1			1			—			—			—			—
Recognized curtailment gain	—			—			—			—			—			(1		)	—			(22		)	—
Defined Benefit Plans	87			115			61			40			26			13			35			2			3
Defined contribution plans	30			33			31			31			33			40			n/a			n/a			n/a
Net Periodic Benefit Cost	117			148			92			71			59			53			35			2			3

Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income:
Net actuarial (gain) loss	84			(74		)	688			76			204			447			(75		)	(4		)	119
Prior service credit	—			—			—			—			(16		)	(6		)	—			(32		)	—
Amortization of net actuarial loss	(92		)	(112		)	(68		)	(66		)	(71		)	(54		)	(2		)	(1		)	(1		)
Amortization of net prior service credit	2			2			2			3			(4		)	1			5			18			43
Curtailment gain	—			—			—			—			—			2			—			22			—
Total Recognized in Other Comprehensive Income	(6		)	(184		)	622			13			113			390			(72		)	3			161
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income	$	111		$	(36	)	$	714		$	84		$	172		$	443		$	(37	)	$	5		$	164

_____________


(1)	Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $296, $311 and $361 and interest expense (income) directly allocated to TRA participant accounts of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively.


(2)	Expected return on plan assets includes expected investment income on non-TRA assets of $356, $388 and $437 and actual investment income (loss) on TRA assets of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively.

The net actuarial loss and prior service credit for the defined benefit pension plans that will be amortized from Accumulated other comprehensive (loss) income into net periodic benefit cost over the next fiscal year are $(101) and $5, respectively, excluding amounts that may be recognized through settlement losses. The net actuarial loss and prior service credit for the retiree health benefit plans that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $0 and $4, respectively.

Plan Amendments

Retiree-Health Plan

In 2015 we amended our U.S. Retiree Health Plan to eliminate future benefit accruals for active salaried employees effective December 31, 2015. There was no change in benefits for union employees or existing retirees or employees that retired before December 31, 2015. As a result of this plan amendment, we recognized a pre-tax curtailment gain of $22 in 2015. The gain represented the recognition of deferred gains from other prior-year amendments (“prior service credits”) as a result of the discontinuation of the future benefit or service accrual period for active salaried employees.

Plan Assets

Current Allocation

As of the 2016 and 2015 measurement dates, the global pension plan assets were $8,158 and $8,159, respectively. These assets were invested among several asset classes.

The following tables present the defined benefit plans assets measured at fair value and the basis for that measurement.



	December 31, 2016
	U.S. Plans												Non-U.S. Plans
Asset Class	Level 1		Level 2			Level 3		Assets measured at NAV⁽¹⁾		Total			Level 1		Level 2		Level 3		Assets measured at NAV⁽¹⁾		Total
Cash and cash equivalents	$	—	$	—		$	—	$	—	$	—		$	544	$	—	$	—	$	—	$	544
Equity Securities:
U.S.	320		—			—		68		388			266		42		—		—		308
International	258		—			—		160		418			358		722		—		127		1,207
Fixed Income Securities:
U.S. treasury securities	—		233			—		—		233			—		44		—		—		44
Debt security issued by government agency	—		65			—		—		65			—		1,654		—		—		1,654
Corporate bonds	—		1,052			—		—		1,052			—		618		—		—		618
Asset backed securities	—		2			—		—		2			—		1		—		—		1
Derivatives	—		(38		)	—		—		(38		)	—		64		—		—		64
Real estate	36		—			12		34		82			—		—		121		168		289
Private equity/venture capital	—		—			—		490		490			—		60		6		425		491
Guaranteed insurance contracts	—		—			—		—		—			—		—		104		—		104
Other⁽²⁾	15		—			—		67		82			6		54		—		—		60
Total Fair Value of Plan Assets	$	629	$	1,314		$	12	$	819	$	2,774		$	1,174	$	3,259	$	231	$	720	$	5,384

_____________


(1)	Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient, have not been classified in the fair value hierarchy.


(2)	Other Level 1 includes net non-financial assets of $15 U.S. and $6 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.



	December 31, 2015
	U.S. Plans													Non-U.S. Plans
Asset Class	Level 1			Level 2			Level 3		Assets measured at NAV⁽¹⁾		Total			Level 1		Level 2		Level 3		Assets measured at NAV⁽¹⁾		Total
Cash and cash equivalents	$	171		$	—		$	—	$	—	$	171		$	577	$	—	$	—	$	—	$	577
Equity Securities:
U.S.	380			—			—		20		400			200		38		—		—		238
International	287			1			—		157		445			1,011		40		—		112		1,163
Fixed Income Securities:																						—
U.S. treasury securities	—			216			—		—		216			—		48		—		—		48
Debt security issued by government agency	—			156			—		—		156			3		1,599		—		—		1,602
Corporate bonds	—			913			—		—		913			3		692		—		—		695
Asset backed securities	—			2			—		—		2			—		1		—		—		1
Derivatives	—			(8		)	—		—		(8		)	—		5		—		—		5
Real estate	42			—			17		39		98			—		—		145		154		299
Private equity/venture capital	—			—			—		499		499			—		66		4		480		550
Guaranteed insurance contracts	—			—			—		—		—			—		—		120		—		120
Other⁽²⁾	(103		)	(1		)	—		18		(86		)	5		50		—		—		55
Total Fair Value of Plan Assets	$	777		$	1,279		$	17	$	733	$	2,806		$	1,799	$	2,539	$	269	$	746	$	5,353

_____________


(1)	Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.


(2)	Other Level 1 includes net non-financial (liabilities) assets of $(103) U.S. and $5 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses. In 2015, the US Plans' Other included plan liabilities of $116 related to unsettled transactions such as purchases or sales of US Treasury securities with settlement dates beyond fiscal year-end.

The following tables represents a roll-forward of the defined benefit plans assets measured at fair value using significant unobservable inputs (Level 3 assets):



	U.S.			Non-U.S.
	Real Estate			Real Estate			Private Equity/Venture Capital			Guaranteed Insurance Contracts			Total
Balance at December 31, 2014⁽¹⁾	$	22		$	147		$	4		$	128		$	279
Purchases	—			—			—			19			19
Sales	(15		)	—			—			(21		)	(21		)
Realized (losses) gains	1			—			—			6			6
Unrealized gains (losses)	9			9			1			1			11
Currency translation	—			(11		)	(1		)	(13		)	(25		)
Balance at December 31, 2015	$	17		$	145		$	4		$	120		$	269
Purchases	—			1			2			2			5
Sales	(3		)	(13		)	(1		)	(12		)	(26		)
Realized gains (losses)	—			6			—			1			7
Unrealized gains (losses)	(2		)	(5		)	(4		)	(3		)	(12		)
Currency translation	—			(13		)	5			(4		)	(12		)
Balance at December 31, 2016	$	12		$	121		$	6		$	104		$	231

_____________


(1)	Adjusted to exclude assets of $500 U.S. and $545 Non-U.S. that are measured at fair value using the NAV per share (or its equivalent) practical expedient.

Level 3 Valuation Method

Our primary Level 3 assets are Real Estate and Private Equity/Venture Capital investments. The fair value of our real estate investment funds are based on the Net Asset Value (NAV) of our ownership interest in the funds. NAV information is received from the investment advisers and is primarily derived from third-party real estate appraisals for the properties owned. The fair value for our private equity/venture capital partnership investments are based on our share of the estimated fair values of the underlying investments held by these partnerships as reported (or expected to be reported) in their audited financial statements. The valuation techniques and inputs for our Level 3 assets have been consistently applied for all periods presented.

Investment Strategy

The target asset allocations for our worldwide defined benefit pension plans were:



	2016		2015
	U.S.	Non-U.S.	U.S.	Non-U.S.
Equity investments	30%	28%	34%	28%
Fixed income investments	48%	45%	43%	48%
Real estate	6%	5%	6%	6%
Private equity	8%	9%	9%	10%
Other	8%	13%	8%	8%
Total Investment Strategy	100%	100%	100%	100%

We employ a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. The intent of this strategy is to minimize plan expenses by exceeding the interest growth in long-term plan liabilities. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. This consideration involves the use of long-term measures that address both return and risk. The investment portfolio contains a diversified blend of equity and fixed income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value and small and large capitalizations. Other assets such as real estate, private equity, and hedge funds are used to improve portfolio diversification. Derivatives may be used to hedge market exposure in an efficient and timely manner; however, derivatives may not be used to leverage the portfolio beyond the market value of the underlying investments. Investment risks and returns are measured and monitored on an ongoing basis through annual liability measurements and quarterly investment portfolio reviews.

Expected Long-term Rate of Return

We employ a “building block” approach in determining the long-term rate of return for plan assets. Historical markets are studied and long-term relationships between equities and fixed income are assessed. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return is established giving consideration to investment diversification and rebalancing. Peer data and historical returns are reviewed periodically to assess reasonableness and appropriateness.

Contributions

The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans.



	Year Ended December 31,
	2016		Estimated 2017
U.S. Plans	$	24	$	169
Non-U.S. Plans	154		181
Total	$	178	$	350

Retiree Health	$	61	$	63

The 2016 pension plan contributions did not include any contributions for our domestic tax-qualified defined benefit plans because none were required to meet the minimum funding requirements.

The 2017 expected pension plan contributions include $145 for our domestic tax-qualified defined benefit plans, comprised of $15 to meet the minimum funding requirements and $130 of additional voluntary contributions.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years:



	Pension Benefits
	U.S.		Non-U.S.		Total		Retiree Health
2017	$	852	$	210	$	1,062	$	63
2018	227		216		443		64
2019	223		222		445		62
2020	225		228		453		61
2021	296		237		533		59
Years 2022-2026	1,433		1,281		2,714		261

Assumptions

Weighted-average assumptions used to determine benefit obligations at the plan measurement dates:



	Pension Benefits
	2016				2015				2014
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	4.0	%	2.5	%	4.3	%	3.3	%	3.9	%	3.1	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%



	Retiree Health
	2016		2015		2014
Discount rate	3.9	%	4.1	%	3.8	%

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:



	Pension Benefits
	2017				2016				2015				2014
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	4.0	%	2.5	%	4.3	%	3.3	%	3.9	%	3.1	%	4.8	%	4.2	%
Expected return on plan assets	7.0	%	4.1	%	7.5	%	4.8	%	7.5	%	5.2	%	7.8	%	6.1	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%	0.2	%	2.6	%



	Retiree Health
	2017		2016		2015		2014
Discount rate	3.9	%	4.1	%	3.8	%	4.5	%

_____________

Note: Expected return on plan assets is not applicable to retiree health benefits as these plans are not funded. Rate of compensation increase is not applicable to retiree health benefits as compensation levels do not impact earned benefits.

Assumed health care cost trend rates were as follows:



	December 31,
	2016		2015
Health care cost trend rate assumed for next year	7.2	%	7.5	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.8	%	4.9	%
Year that the rate reaches the ultimate trend rate	2026		2026

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects:



	1% increase		1% decrease
Effect on total service and interest cost components	$	2	$	(2	)
Effect on post-retirement benefit obligation	53		(46		)

Defined Contribution Plans

We have post-retirement savings and investment plans in several countries, including the U.S., U.K. and Canada. In many instances, employees from those defined benefit pension plans that have been amended to freeze future service accruals were transitioned to an enhanced defined contribution plan. In these plans employees are allowed to contribute a portion of their salaries and bonuses to the plans, and we match a portion of the employee contributions. We recorded charges related to our defined contribution plans of $61 in 2016, $66 in 2015 and $71 in 2014.

Income and Other Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income and Other Taxes

Income before income taxes (pre-tax income) from continuing operations was as follows:



	Year Ended December 31,
	2016		2015		2014
Domestic income	$	415	$	613	$	635
Foreign income	153		311		455
Income Before Income Taxes	$	568	$	924	$	1,090

(Benefit) provision for income taxes from continuing operations were as follows:



	Year Ended December 31,
	2016			2015			2014
Federal Income Taxes
Current	$	(15	)	$	(225	)	$	(58	)
Deferred	(4		)	300			150
Foreign Income Taxes
Current	71			73			83
Deferred	(13		)	7			(16		)
State Income Taxes
Current	15			(38		)	21
Deferred	8			76			18
Total (Benefit) Provision	$	62		$	193		$	198

A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate was as follows:



	Year Ended December 31,
	2016		2015		2014
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
Nondeductible expenses	2.9	%	1.1	%	1.3	%
Effect of tax law changes	1.2	%	(1.0	)%	(5.2	)%
Change in valuation allowance for deferred tax assets	(1.4	)%	(1.6	)%	(1.4	)%
State taxes, net of federal benefit	3.0	%	2.2	%	2.0	%
Audit and other tax return adjustments	(4.1	)%	1.3	%	(3.0	)%
Tax-exempt income, credits and incentives	(4.0	)%	(1.8	)%	(1.9	)%
Foreign rate differential adjusted for U.S. taxation of foreign profits⁽¹⁾	(22.6	)%	(15.3	)%	(9.0	)%
Other	0.9	%	1.0	%	0.4	%
Effective Income Tax Rate	10.9	%	20.9	%	18.2	%

_____________


(1)	The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries.

On a consolidated basis, including discontinued operations, we paid a total of $130, $138 and $121 in income taxes to federal, foreign and state jurisdictions during the three years ended December 31, 2016, respectively.

Total income tax expense (benefit) was allocated as follows:



	Year Ended December 31,
	2016			2015			2014
Pre-tax income	$	62		$	193		$	198
Discontinued operations⁽¹⁾	(250		)	(134		)	23
Common shareholders' equity:
Changes in defined benefit plans	15			59			(408		)
Stock option and incentive plans, net	—			(18		)	(18		)
Cash flow hedges	(8		)	15			—
Translation adjustments	2			—			(2		)
Total Income Tax Expense (Benefit)	$	(179	)	$	115		$	(207	)

_____________


(1)	Refer to Note 4 - Divestitures for additional information regarding discontinued operations.

Unrecognized Tax Benefits and Audit Resolutions

We recognize tax liabilities when, despite our belief that our tax return positions are supportable, we believe that certain positions may not be fully sustained upon review by tax authorities. Each period, we assess uncertain tax positions for recognition, measurement and effective settlement. Benefits from uncertain tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement - the more-likely-than-not recognition threshold. Where we have determined that our tax return filing position does not satisfy the more likely than not recognition threshold, we have recorded no tax benefits.

We are also subject to ongoing tax examinations in numerous jurisdictions due to the extensive geographical scope of our operations. Our ongoing assessments of the more-likely-than-not outcomes of the examinations and related tax positions require judgment and can increase or decrease our effective tax rate, as well as impact our operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. As of December 31, 2016, we do not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	2016			2015			2014
Balance at January 1	$	222		$	207		$	225
Additions (Reductions) related to current year	(9		)	36			12
Additions related to prior years positions	—			—			9
Reductions related to prior years positions	(31		)	(5		)	(23		)
Settlements with taxing authorities⁽¹⁾	—			(6		)	(8		)
Reductions related to lapse of statute of limitations	(2		)	(9		)	(6		)
Currency	(2		)	(1		)	(2		)
Tax Positions assumed in Conduent Separation	(13		)	—			—
Balance at December 31	$	165		$	222		$	207

_____________


(1)	Majority of settlements did not result in the utilization of cash.

Included in the balances at December 31, 2016, 2015 and 2014 are $5, $9 and $12, respectively, of tax positions that are highly certain of realizability but for which there is uncertainty about the timing or that they may be reduced through an indirect benefit from other taxing jurisdictions. Because of the impact of deferred tax accounting, other than for the possible incurrence of interest and penalties, the disallowance of these positions would not affect the annual effective tax rate.

Within income tax expense, we recognize interest and penalties accrued on unrecognized tax benefits, as well as interest received from favorable settlements. We had $10, $2 and $3 accrued for the payment of interest and penalties associated with unrecognized tax benefits at December 31, 2016, 2015 and 2014, respectively.

In the U.S., we are no longer subject to U.S. federal income tax examinations for years before 2012. With respect to our major foreign jurisdictions, we are no longer subject to tax examinations by tax authorities for years before 2003.

Deferred Income Taxes

We have not provided deferred taxes on approximately $7.0 billion of undistributed earnings of foreign subsidiaries and other foreign investments carried at equity at December 31, 2016, as such undistributed earnings have been determined to be indefinitely reinvested and we currently do not plan to initiate any action that would precipitate a deferred tax impact. We do not believe it is practical to calculate the potential deferred tax impact, as there is a significant amount of uncertainty with respect to determining the amount of foreign tax credits as well as any additional local withholding tax and other indirect tax consequences that may arise from the distribution of these earnings. In addition, because such earnings have been indefinitely reinvested in our foreign operations, repatriation would require liquidation of those investments or a recapitalization of our foreign subsidiaries, the impacts and effects of which are not readily determinable.

The tax effects of temporary differences that give rise to significant portions of the deferred taxes were as follows:



	December 31,
	2016			2015
Deferred Tax Assets
Research and development	$	289		$	370
Post-retirement medical benefits	276			311
Net operating losses	407			367
Operating reserves, accruals and deferrals	190			171
Tax credit carryforwards	751			666
Deferred compensation	197			167
Pension	539			553
Other	81			138
Subtotal	2,730			2,743
Valuation allowance	(416		)	(383		)
Total	$	2,314		$	2,360

Deferred Tax Liabilities
Unearned income and installment sales	$	633		$	705
Intangibles and goodwill	200			208
Other	48			48
Total	$	881		$	961

Total Deferred Taxes, Net	$	1,433		$	1,399

The deferred tax assets for the respective periods were assessed for recoverability and, where applicable, a valuation allowance was recorded to reduce the total deferred tax asset to an amount that will, more-likely-than-not, be realized in the future. The net change in the total valuation allowance for the years ended December 31, 2016 and 2015 was an increase of $33 and a decrease of $125, respectively. The valuation allowance relates primarily to certain net operating loss carryforwards, tax credit carryforwards and deductible temporary differences for which we have concluded it is more-likely-than-not that these items will not be realized in the ordinary course of operations.

Although realization is not assured, we have concluded that it is more-likely-than-not that the deferred tax assets, for which a valuation allowance was determined to be unnecessary, will be realized in the ordinary course of operations based on the available positive and negative evidence, including scheduling of deferred tax liabilities and projected income from operating activities. The amount of the net deferred tax assets considered realizable, however, could be reduced in the near term if actual future income or income tax rates are lower than estimated, or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences.

At December 31, 2016, we had tax credit carryforwards of $751 available to offset future income taxes, of which $48 are available to carryforward indefinitely while the remaining $703 will expire 2017 through 2037 if not utilized. We also had net operating loss carryforwards for income tax purposes of $0.7 billion that will expire 2017 through 2037, if not utilized, and $1.7 billion available to offset future taxable income indefinitely

Contingencies and Litigation

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Contingencies and Litigation

As more fully discussed below, we are involved in a variety of claims, lawsuits, investigations and proceedings concerning: securities law; governmental entity contracting, servicing and procurement law; intellectual property law; environmental law; employment law; the Employee Retirement Income Security Act (ERISA); and other laws and regulations. We determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. We assess our potential liability by analyzing our litigation and regulatory matters using available information. We develop our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on our results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs.

Additionally, guarantees, indemnifications and claims arise during the ordinary course of business from relationships with suppliers, customers and nonconsolidated affiliates, as well as through divestitures and sales of businesses, when the Company undertakes an obligation to guarantee the performance of others if specified triggering events occur. Nonperformance under a contract could trigger an obligation of the Company. These potential claims include actions based upon alleged exposures to products, real estate, intellectual property such as patents, environmental matters, and other indemnifications. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of these claims. However, while the ultimate liabilities resulting from such claims may be significant to results of operations in the period recognized, management does not anticipate they will have a material adverse effect on the Company's consolidated financial position or liquidity. As of December 31, 2016, we have accrued our estimate of liability incurred under our indemnification arrangements and guarantees.

Brazil Tax and Labor Contingencies

Our Brazilian operations are involved in various litigation matters and have received or been the subject of numerous governmental assessments related to indirect and other taxes, as well as disputes associated with former employees and contract labor. The tax matters, which comprise a significant portion of the total contingencies, principally relate to claims for taxes on the internal transfer of inventory, municipal service taxes on rentals and gross revenue taxes. We are disputing these tax matters and intend to vigorously defend our positions. Based on the opinion of legal counsel and current reserves for those matters deemed probable of loss, we do not believe that the ultimate resolution of these matters will materially impact our results of operations, financial position or cash flows.

The labor matters principally relate to claims made by former employees and contract labor for the equivalent payment of all social security and other related labor benefits, as well as consequential tax claims, as if they were regular employees. As of December 31, 2016, the total amounts related to the unreserved portion of the tax and labor contingencies, inclusive of related interest, amounted to approximately $750 with the increase from the December 31, 2015 balance of $577, primarily related to currency and interest partially offset by closed cases. With respect to the unreserved balance of $750, the majority has been assessed by management as being remote as to the likelihood of ultimately resulting in a loss to the Company. In connection with the above proceedings, customary local regulations may require us to make escrow cash deposits or post other security of up to half of the total amount in dispute. As of December 31, 2016 we had $85 of escrow cash deposits for matters we are disputing, and there are liens on certain Brazilian assets with a net book value of $4 and additional letters of credit and surety bonds of $142 and $91, respectively, which include associated indexation. Generally, any escrowed amounts would be refundable and any liens would be removed to the extent the matters are resolved in our favor. We routinely assess all these matters as to probability of ultimately incurring a liability against our Brazilian operations and record our best estimate of the ultimate loss in situations where we assess the likelihood of an ultimate loss as probable.

Litigation Against the Company

State of Texas v. Xerox Corporation, Xerox State Healthcare, LLC, and ACS State Healthcare, LLC: On May 9, 2014, the State of Texas, via the Texas Office of Attorney General (the “State”), filed a lawsuit in the 53rd Judicial District Court of Travis County, Texas. The lawsuit alleges that Xerox Corporation, Xerox State Healthcare, LLC and ACS State Healthcare (collectively “ the Defendants”) violated the Texas Medicaid Fraud Prevention Act in the administration of ACS’s contract with the Texas Department of Health and Human Services (“HHSC”). Xerox Corporation provided a guaranty of contractual performance with respect to the ACS contract. The State alleges that the Defendants made false representations of material facts regarding the processes, procedures, implementation and results regarding the prior authorization of orthodontic claims. The State seeks recovery of actual damages, two times the amount of any overpayments made as a result of unlawful acts, civil penalties, pre- and post-judgment interest and all costs and attorneys’ fees. The State references the amount in controversy as exceeding hundreds of millions of dollars. The Defendants filed their Answer in June, 2014 denying all allegations. The Defendants will continue to vigorously defend themselves in this matter. This matter is a “Conduent Liability”, as defined in the Separation and Distribution Agreement dated as of December 31, 2016 between Xerox Corporation and Conduent Incorporated, for which Conduent is required to indemnify Xerox. Conduent is entitled to direct the defense of this matter.

Oklahoma Firefighters Pension and Retirement System v. Xerox Corporation, Ursula M. Burns, Luca Maestri, Kathryn A. Mikells, Lynn R. Blodgett and Robert K. Zapfel: On October 21, 2016, the Oklahoma Firefighters Pension and Retirement System (“plaintiff”) filed a purported securities class action complaint against Xerox Corporation, Ursula Burns, Luca Maestri, Kathryn Mikells, Lynn Blodgett and Robert Zapfel (collectively, “defendants”) in the U.S. District Court for the Southern District of New York on behalf of the plaintiff and certain purchasers or acquirers of Xerox common stock. The complaint alleges that defendants made false and misleading statements, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act and SEC Rule 10b-5, relating to the operations and prospects of Xerox’s Health Enterprise business. Plaintiff seeks, among other things, unspecified monetary damages and attorneys’ fees. Other, similar lawsuits may follow. On December 28, 2016, the Court entered a stipulated order setting out a schedule for amendment of the complaint and for defendants’ response to that complaint following the Court’s appointment of lead plaintiff under the Private Securities Litigation Reform Act. The Court has not yet ruled on the appointment of lead plaintiff. Xerox and the individual defendants will vigorously defend against this matter. At this time, it is premature to make any conclusion regarding the probability of incurring material losses in this litigation. Should developments cause a change in our determination as to an unfavorable outcome, or result in a final adverse judgment or settlement, there could be a material adverse effect on our results of operations, cash flows and financial position in the period in which such change in determination, judgment, or settlement occurs.

Guarantees, Indemnifications and Warranty Liabilities

Indemnifications Provided as Part of Contracts and Agreements

Acquisitions/Divestitures:

We have indemnified, subject to certain deductibles and limits, the purchasers of businesses or divested assets for the occurrence of specified events under certain of our divestiture agreements. In addition, we customarily agree to hold the other party harmless against losses arising from a breach of representations and covenants, including such matters as adequate title to assets sold, intellectual property rights, specified environmental matters and certain income taxes arising prior to the date of acquisition. Where appropriate, an obligation for such indemnifications is recorded as a liability at the time of the acquisition or divestiture. Since the obligated amounts of these types of indemnifications are often not explicitly stated and/or are contingent on the occurrence of future events, the overall maximum amount of the obligation under such indemnifications cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of divestiture, we have not historically made significant payments for these indemnifications. Additionally, under certain of our acquisition agreements, we have provided for additional consideration to be paid to the sellers if established financial targets are achieved post-closing. We have recognized liabilities for these contingent obligations based on an estimate of the fair value of these contingencies at the time of acquisition. Contingent obligations related to indemnifications arising from our divestitures and contingent consideration provided for by our acquisitions are not expected to be material to our financial position, results of operations or cash flows.

Other Agreements:

We are also party to the following types of agreements pursuant to which we may be obligated to indemnify the other party with respect to certain matters:


•	Guarantees on behalf of our subsidiaries with respect to real estate leases. These lease guarantees may remain in effect subsequent to the sale of the subsidiary.


•	Agreements to indemnify various service providers, trustees and bank agents from any third-party claims related to their performance on our behalf, with the exception of claims that result from third-party's own willful misconduct or gross negligence.


•	Guarantees of our performance in certain sales and services contracts to our customers and indirectly the performance of third parties with whom we have subcontracted for their services. This includes indemnifications to customers for losses that may be sustained as a result of the use of our equipment at a customer's location.

In each of these circumstances, our payment is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract and such procedures also typically allow us to challenge the other party's claims. In the case of lease guarantees, we may contest the liabilities asserted under the lease. Further, our obligations under these agreements and guarantees may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments we made.

Patent Indemnifications

In most sales transactions to resellers of our products, we indemnify against possible claims of patent infringement caused by our products or solutions. In addition, we indemnify certain software providers against claims that may arise as a result of our use or our subsidiaries', customers' or resellers' use of their software in our products and solutions. These indemnities usually do not include limits on the claims, provided the claim is made pursuant to the procedures required in the sales contract.

Indemnification of Officers and Directors

Our corporate by-laws require that, except to the extent expressly prohibited by law, we must indemnify Xerox Corporation's officers and directors against judgments, fines, penalties and amounts paid in settlement, including legal fees and all appeals, incurred in connection with civil or criminal action or proceedings, as it relates to their services to Xerox Corporation and our subsidiaries. Although the by-laws provide no limit on the amount of indemnification, we may have recourse against our insurance carriers for certain payments made by us. However, certain indemnification payments (such as those related to "clawback" provisions in certain compensation arrangements) may not be covered under our directors' and officers' insurance coverage. We also indemnify certain fiduciaries of our employee benefit plans for liabilities incurred in their service as fiduciary whether or not they are officers of the Company. Finally, in connection with our acquisition of businesses, we may become contractually obligated to indemnify certain former and current directors, officers and employees of those businesses in accordance with pre-acquisition by-laws and/or indemnification agreements and/or applicable state law.

Product Warranty Liabilities

In connection with our normal sales of equipment, including those under sales-type leases, we generally do not issue product warranties. Our arrangements typically involve a separate full service maintenance agreement with the customer. The agreements generally extend over a period equivalent to the lease term or the expected useful life of the equipment under a cash sale. The service agreements involve the payment of fees in return for our performance of repairs and maintenance. As a consequence, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs. In a few circumstances, particularly in certain cash sales, we may issue a limited product warranty if negotiated by the customer. We also issue warranties for certain of our entry level products, where full service maintenance agreements are not available. In these instances, we record warranty obligations at the time of the sale. Aggregate product warranty liability expenses for the three years ended December 31, 2016 were $15, $22 and $25, respectively. Total product warranty liabilities as of December 31, 2016 and 2015 were $8 and $9, respectively.

Separation Related Guarantees and Indemnifications

We are required to retain performance guarantees on certain outsourcing contracts that were transferred to Conduent as part of the Separation transaction. The guarantees are primarily associated with government contracts and our liability may be capped in certain circumstances. We have received an indemnification from Conduent to make payments to us in the event we are required to make a payment or incur a liability in connection with these performance guarantees. We expect Conduent to fully and completely perform their obligations under these contracts. In addition, we believe there is a sufficient pool of alternate providers for the services performed as part of these contracts and therefore we believe replacement providers could be identified to complete the contracted services in the event Conduent was unable to perform. Based on these considerations, we have assessed the potential loss under these guarantees and determined that no liability was required to be recorded in our financial statements associated with these guarantees. We are not required to, and will not, offer or agree to provide any performance guarantees with respect to any contract that Conduent enters into after the Separation, including renewals and extensions of existing contracts except for extensions at the sole option of the customer.

Other Contingencies

We have issued or provided approximately $375 of guarantees as of December 31, 2016 in the form of letters of credit or surety bonds issued to i) support certain insurance programs; ii) support our obligations related to the Brazil tax and labor contingencies; and iii) support certain contracts, primarily with public sector customers, which require us to provide a surety bond as a guarantee of our performance of contractual obligations.

In general, we would only be liable for the amount of these guarantees in the event we defaulted in performing our obligations under each contract; the probability of which we believe is remote. We believe that our capacity in the surety markets as well as under various credit arrangements (including our Credit Facility) is sufficient to allow us to respond to future requests for proposals that require such credit support.

Preferred Stock	12 Months Ended
Preferred Stock	Dec. 31, 2016
Equity [Abstract]
Preferred Stock	Preferred Stock Series B Convertible Perpetual Preferred Stock At Separation, 300,000 shares of Xerox Series A Convertible Perpetual Preferred Stock with a carrying value of $356, which represented all of the issued and outstanding shares of Xerox Series A Convertible Perpetual Preferred Stock, were exchanged for 180,000 newly issued shares of Xerox Series B Convertible Perpetual Preferred Stock and 120,000 newly issued shares of Conduent Series A Convertible Perpetual Preferred Stock. The $356 carrying value included a $7 fair value adjustment for the modification of the awards upon the exchange. The 120,000 shares of Conduent Series A Convertible Perpetual Preferred Stock has an aggregate liquidation value of $120 and were included in the distribution of Conduent's net assets at a carrying value of $142. The carrying value of $142 is based on the proportional share of the carrying value of Xerox Series A Convertible Perpetual Preferred Stock being exchanged for Conduent's Series A Convertible Perpetual Preferred Stock. The 180,000 shares of Xerox Series B Convertible Perpetual Preferred Stock has an aggregate liquidation value of $180 and a carrying value of $214, which likewise is the proportional share of the carrying value of Xerox Series A Convertible Perpetual Preferred Stock that was exchanged for Xerox Series B Convertible Perpetual Preferred Stock. The Xerox Series B Convertible Preferred Stock pays quarterly cash dividends at a rate of 8% per year ($14 per year). Each share of convertible preferred stock is convertible at any time, at the option of the holder, into 149.8127 shares of common stock for a total of 26,966 thousand shares (reflecting an initial conversion price of approximately $6.675 per share of common stock), subject to customary anti-dilution adjustments. If the closing price of our common stock exceeds $9.75 or 146.1% of the initial conversion price of $6.675 per share of common stock for 20 out of 30 trading days, we have the right to cause any or all of the Xerox Series B Convertible Perpetual Preferred Stock to be converted into shares of common stock at the then applicable conversion rate. The convertible Preferred Stock is also convertible, at the option of the holder, upon a change in control, at the applicable conversion rate plus an additional number of shares determined by reference to the price paid for our common stock upon such change in control. In addition, upon the occurrence of certain fundamental change events, including a change in control or the delisting of Xerox's common stock, the holder of convertible preferred stock has the right to require us to redeem any or all of the convertible preferred stock in cash at a redemption price per share equal to the liquidation preference and any accrued and unpaid dividends to, but not including, the redemption date. The convertible preferred stock is classified as temporary equity (i.e., apart from permanent equity) as a result of the contingent redemption feature.

Shareholders' Equity

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

Preferred Stock

As of December 31, 2016, we had one class of preferred stock outstanding. See Note 19 - Preferred Stock for further information. We are authorized to issue approximately 22 million shares of cumulative preferred stock, $1.00 par value per share.

Common Stock

We have 1.75 billion authorized shares of common stock, $1.00 par value per share. At December 31, 2016, 101 million shares were reserved for issuance under our incentive compensation plans, 48 million shares were reserved for debt to equity exchanges and 27 million shares were reserved for conversion of the Series B convertible perpetual preferred stock.

Treasury Stock

We account for the repurchased common stock under the cost method and include such treasury stock as a component of our common shareholder's equity. Retirement of treasury stock is recorded as a reduction of Common stock and Additional paid-in capital at the time such retirement is approved by our Board of Directors.

The following provides cumulative information relating to our share repurchase programs from their inception in October 2005 through December 31, 2016 (shares in thousands). No shares were repurchased during 2016:



Authorized share repurchase programs	$	8,000
Share repurchase cost	$	7,755
Share repurchase fees	$	12
Number of shares repurchased	695,230

Of the cumulative $8.0 billion of share repurchase authority previously granted by our Board of Directors, approximately $245 of that authority remained available as of December 31, 2016.

The following table reflects the changes in Common and Treasury stock shares (shares in thousands):



	Common Stock Shares		Treasury Stock Shares
Balance at December 31, 2013	1,210,321		22,001
Stock based compensation plans, net	13,965		—
Acquisition of Treasury stock	—		86,536
Cancellation of Treasury stock	(100,928)		(100,928)
Conversion of 2014 9% Notes	996		—
Balance at December 31, 2014	1,124,354		7,609
Stock based compensation plans, net	11,292		—
Acquisition of Treasury stock	—		115,201
Cancellation of Treasury stock	(122,810	)	(122,810	)
Balance at December 31, 2015	1,012,836		—
Stock based compensation plans, net	1,539		—
Balance at December 31, 2016	1,014,375		—

Stock-Based Compensation

We have a long-term incentive plan whereby eligible employees may be granted restricted stock units (RSUs), performance shares (PSs) and non-qualified stock options. We grant stock-based awards in order to continue to attract and retain employees and to better align employees' interests with those of our shareholders. Each of these awards is subject to settlement with newly issued shares of our common stock. At December 31, 2016 and 2015, 41 million and 43 million shares, respectively, were available for grant of awards.

Stock-based compensation expense was as follows:



	Year Ended December 31,
	2016		2015		2014
Stock-based compensation expense, pre-tax	$	50	$	27	$	63
Income tax benefit recognized in earnings	19		10		24

Restricted Stock Units: Compensation expense is based upon the grant date market price. The compensation expense is recorded over the vesting period, which is normally three years from the date of grant, based on management's estimate of the number of shares expected to vest.

Performance Shares: We grant officers, and selected executives and middle managers, PSs that vest contingent upon meeting pre-determined cumulative goals for Revenue, Earnings per Share (EPS) and Cash Flow from Operations, typically over a three-year performance period. If the cumulative three-year actual results exceed the stated targets, then the plan participants have the potential to earn additional shares of common stock: a maximum overachievement of 50% of the original grant for officers and selected executives and a maximum of 25% of the original grant for all other participants. All PSs entitle the holder to one share of common stock, payable after a three-year service period and the attainment of the stated goals.

In 2015, the maximum overachievement that could be earned was changed to 100% (from 50%) for officers and selected executives. All other terms of the awards remain unchanged.

Because of the difficulty in setting three-year performance goals that would appropriately take into account the Separation, PSs granted in 2016 vest contingent upon achieving one-year performance goals.

The fair value of PSs is based upon the market price of our stock on the date of the grant. Compensation expense is recognized over the vesting period, which is normally three years from the date of grant, based on management's estimate of the number of shares expected to vest. If the stated targets are not met, any recognized compensation cost would be reversed.

Employee Stock Options: With the exception of the conversion of options in connection with our acquisition of Affiliated Computer Systems (ACS) in 2010, we have not issued any new stock options associated with our employee long-term incentive plan since 2004. Accordingly, all of our outstanding options at December 31, 2016 were transferred to Conduent employees as part of the Separation. After the Separation, there are no longer any Xerox options outstanding.

Separation-Related Adjustments: Pursuant to the Employee Matters Agreement entered into in connection with the Separation, we made certain adjustments to the number of our share-based compensation awards, using the closing price of our common stock on the final day of trading prior to the effective date of the Separation and the volume weighted-average prices for the first trading day of Xerox or Conduent common stock, as applicable, immediately following the Separation. These adjustments were done with the intention of preserving the intrinsic value the awards had immediately prior to the Separation. All equity awards have been converted to equity awards of the post-Separation employer, as adjusted to reflect the Separation. These adjustments are reflected in the tables below. All awards continue to vest over the original vesting period. The difference between the fair value of the awards based on the volume weighted-average prices for the first trading day immediately following the Separation and the opening price on that day was not material.

The Separation-related adjustments did not have a material impact on the potentially dilutive securities to be considered in the calculation of diluted earnings per share of common stock.

Summary of Stock-based Compensation Activity



	2016				2015				2014
(shares in thousands)	Shares		Weighted Average Grant Date Fair Value⁽¹⁾		Shares		Weighted Average Grant Date Fair Value⁽¹⁾		Shares		Weighted Average Grant Date Fair Value⁽¹⁾
Restricted Stock Units
Outstanding at January 1	2,390		$	11.05	12,197		$	9.50	19,079		$	9.62
Granted	7,174		9.57		798		11.08		926		12.30
Vested	(314	)	9.62		(10,191	)	7.86		(6,934	)	10.33
Cancelled	(548	)	10.12		(414	)	9.27		(874	)	8.55
Separation of Conduent	(3,144	)	10.07		—		—		—		—
Shares granted in equity conversion	1,674		7.52		—		—		—		—
Outstanding at December 31	7,232		7.52		2,390		11.05		12,197		9.50

Performance Shares
Outstanding at January 1	23,206		$	11.67	20,721		$	11.36	8,058		$	9.15
Granted	5,284		9.35		9,470		10.68		16,967		12.28
Vested	(33	)	11.33		(3,268	)	7.90		(2,404	)	10.68
Cancelled	(4,935	)	11.84		(3,717	)	10.74		(1,900	)	11.07
Separation of Conduent	(7,894	)	11.09		—		—		—		—
Shares granted in equity conversion	4,595		8.50		—		—		—		—
Outstanding at December 31	20,223		8.50		23,206		11.67		20,721		11.36

Stock Options
Outstanding at January 1	3,119		$	6.87	6,115		$	7.00	14,199		$	6.95
Canceled/expired	(392	)	6.99		(405	)	7.43		(215	)	6.95
Exercised	(1,225	)	7.03		(2,591	)	7.09		(7,869	)	6.92
Separation of Conduent	(1,502	)	6.70		—		—		—		—
Outstanding at December 31	—		—		3,119		6.87		6,115		7.00
Exercisable at December 31	—		—		3,119		6.87		6,115		7.00

_____________

(1) Exercise Price for Stock Options.

The following information disclosures at December 31, 2016 reflect outstanding post-Separation stock-based awards for Xerox only and therefore exclude amounts associated with stock-based awards transferred to Conduent.

The total unrecognized compensation cost related to non-vested stock-based awards at December 31, 2016 was as follows:

The aggregate intrinsic value of outstanding RSUs and PSs awards was as follows:



Awards	December 31, 2016
Restricted Stock Units	$	48
Performance Shares	135

The total intrinsic value and actual tax benefit realized for all vested and exercised stock-based awards was as follows:



	December 31, 2016						December 31, 2015						December 31, 2014
Awards	Total Intrinsic Value		Cash Received		Tax Benefit		Total Intrinsic Value		Cash Received		Tax Benefit		Total Intrinsic Value		Cash Received		Tax Benefit
Restricted Stock Units	$	3	$	—	$	1	$	109	$	—	$	33	$	85	$	—	$	26
Performance Shares	—		—		—		35		—		12		30		—		10
Stock Options	3		9		1		14		19		5		42		55		15

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Other Comprehensive Income [Abstract]

Other Comprehensive Loss

12 Months Ended

Dec. 31, 2016

Other Comprehensive Loss

As previously disclosed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies, the historical statements of Other Comprehensive Loss have not been revised to reflect the effect of the Separation. Refer to Note 4 - Divestitures for additional information regarding the Separation. Other Comprehensive Loss is comprised of the following:



	Year Ended December 31,
	2016						2015						2014
	Pre-tax			Net of Tax			Pre-tax			Net of Tax			Pre-tax			Net of Tax
Translation Adjustments Losses	$	(344	)	$	(346	)	$	(660	)	$	(660	)	$	(736	)	$	(734	)
Unrealized (Losses) Gains:
Changes in fair value of cash flow hedges gains (losses)	18			14			13			12			(20		)	(10		)
Changes in cash flow hedges reclassed to earnings⁽¹⁾	(40		)	(28		)	28			13			36			26
Other losses	(1		)	(1		)	(3		)	(2		)	(1		)	(1		)
Net Unrealized (Losses) Gains	(23		)	(15		)	38			23			15			15

Defined Benefit Plans Losses
Net actuarial/prior service losses	(118		)	(87		)	(73		)	(86		)	(1,291		)	(861		)
Prior service amortization/curtailment⁽²⁾	(10		)	(6		)	(38		)	(23		)	(46		)	(29		)
Actuarial loss amortization/settlement⁽²⁾	160			109			186			126			121			83
Fuji Xerox changes in defined benefit plans, net⁽³⁾	(93		)	(93		)	21			21			40			40
Other gains⁽⁴⁾	202			203			116			115			106			105
Changes in Defined Benefit Plans Gains (Losses)	141			126			212			153			(1,070		)	(662		)

Other Comprehensive Loss	(226		)	(235		)	(410		)	(484		)	(1,791		)	(1,381		)
Less: Other comprehensive loss attributable to noncontrolling interests	(3		)	(3		)	(1		)	(1		)	(1		)	(1		)
Other Comprehensive Loss Attributable to Xerox	$	(223	)	$	(232	)	$	(409	)	$	(483	)	$	(1,790	)	$	(1,380	)

_____________


(1)	Reclassified to Cost of sales - refer to Note 14 - Financial Instruments for additional information regarding our cash flow hedges.


(2)	Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information.


(3)	Represents our share of Fuji Xerox's benefit plan changes.


(4)	Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL.

Accumulated Other Comprehensive Loss (AOCL)

The AOCL balance at December 31, 2016, reflects the transfer of Conduent related AOCL balances at December 31, 2016 to Conduent - refer to Note 4 - Divestitures for additional information regarding the Separation. AOCL is comprised of the following:



	December 31,
	2016			2015			2014
Cumulative translation adjustments	$	(2,274	)	$	(2,402	)	$	(1,743	)
Other unrealized (losses) gains, net	(13		)	1			(22		)
Benefit plans net actuarial losses and prior service credits⁽¹⁾	(2,061		)	(2,241		)	(2,394		)
Total Accumulated Other Comprehensive Loss Attributable to Xerox	$	(4,348	)	$	(4,642	)	$	(4,159	)

_____________


(1)	Includes our share of Fuji Xerox.

Earnings per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings per Share

The following table sets forth the computation of basic and diluted (loss) earnings per share of common stock (shares in thousands):



	Year Ended December 31,
	2016			2015			2014
Basic Earnings per Share:
Net income from continuing operations attributable to Xerox	$	616		$	848		$	1,029
Accrued dividends on preferred stock	(24		)	(24		)	(24		)
Adjusted Net Income From Continuing Operations Available to Common Shareholders	$	592		$	824		$	1,005
Net loss from discontinued operations attributable to Xerox	(1,093		)	(374		)	(16		)
Adjusted Net (Loss) Income Available to Common Shareholders	$	(501	)	$	450		$	989
Weighted-average common shares outstanding	1,013,563			1,064,526			1,154,365
Basic (Loss) Earnings per Share:
Continuing operations	$	0.58		$	0.77		$	0.87
Discontinued operations	(1.07		)	(0.35		)	(0.01		)
Basic (Loss) Earnings per Share	$	(0.49	)	$	0.42		$	0.86

Diluted Earnings per Share:
Net income from continuing operations attributable to Xerox	$	616		$	848		$	1,029
Accrued dividends on preferred stock	(24		)	(24		)	(24		)
Adjusted Net Income From Continuing Operations Available to Common Shareholders	$	592		$	824		$	1,005
Net loss from discontinued operations attributable to Xerox	(1,093		)	(374		)	(16		)
Adjusted Net (Loss) Income Available to Common Shareholders	$	(501	)	$	450		$	989
Weighted-average common shares outstanding	1,013,563			1,064,526			1,154,365
Common shares issuable with respect to:
Stock options	694			1,294			2,976
Restricted stock and performance shares	9,722			10,404			14,256
Adjusted Weighted Average Common Shares Outstanding	1,023,979			1,076,224			1,171,597

Diluted (Loss) Earnings per Share:
Continuing operations	$	0.58		$	0.77		$	0.86
Discontinued operations	(1.07		)	(0.35		)	(0.02		)
Diluted (Loss) Earnings per Share	$	(0.49	)	$	0.42		$	0.84

The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive (shares in thousands):
Stock Options	808			1,825			3,139
Restricted stock and performance shares	21,721			17,607			17,987
Convertible preferred stock	26,966			26,966			26,966
Total Securities	49,495			46,398			48,092

Dividends per Common Share	$	0.31		$	0.28		$	0.25

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

For the three years ended December 31, 2016



(in millions)	Balance at beginning of period		Additions charged to bad debt provision ⁽¹⁾		Amounts (credited) charged to other income statement accounts ⁽¹⁾			Deductions and other, net of recoveries ⁽²⁾			Balance at end of period
2016 Allowance for Losses:
Accounts Receivable	$	74	$	13	$	2		$	(25	)	$	64
Finance Receivables	118		24		4			(36		)	110
	$	192	$	37	$	6		$	(61	)	$	174

2015 Allowance for Losses:
Accounts Receivable	$	82	$	21	$	5		$	(34	)	$	74
Finance Receivables	131		28		—			(41		)	118
	$	213	$	49	$	5		$	(75	)	$	192

2014 Allowance for Losses:
Accounts Receivable	$	106	$	16	$	(2	)	$	(38	)	$	82
Finance Receivables	154		33		3			(59		)	131
	$	260	$	49	$	1		$	(97	)	$	213

_____________


(1)	Bad debt provisions relate to estimated losses due to credit and similar collectability issues. Other charges (credits) relate to adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.


(2)	Deductions and other, net of recoveries primarily relates to receivable write-offs, but also includes the impact of foreign currency translation adjustments and recoveries of previously written off receivables.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Basis of Consolidation

Discontinued Operations

Refer to Note 4 - Divestitures for additional information regarding discontinued operations.

Use of Estimates

The following table summarizes certain recurring-type costs and expenses that require management estimates for the three years ended December 31, 2016:



	Year Ended December 31,
Expense/(Income)	2016		2015		2014
Provisions for restructuring and related costs	$	264	$	27	$	106
Provision for receivables	43		54		50
Provisions for obsolete and excess inventory	28		30		26
Provision for product warranty liability	15		22		25
Depreciation and obsolescence of equipment on operating leases	276		286		297
Depreciation of buildings and equipment	148		151		179
Amortization of internal use software	73		83		88
Amortization of product software	4		4		4
Amortization of acquired intangible assets	58		60		65
Amortization of customer contract costs	4		6		6
Defined pension benefits - net periodic benefit cost	127		141		74
Retiree health benefits - net periodic benefit cost	35		2		3
Income tax expense	62		193		198

Changes in Estimates - Methodology

Changes in Estimates

Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments

Cash Flows

Share-based Compensation, Option and Incentive Plans Policy

Stock Compensation

Equity Method Investments, Policy

Equity Method Accounting

Fair Value of Financial Instruments, Policy

Financial Instruments - Credit Losses

Business Combinations Policy [Policy Text Block]

Business Combinations

Income Tax, Policy

Income Taxes

Interest Expense, Policy

Interest

New Accounting Pronouncements, Policy

Other Updates


•	Accounting Changes and Error Corrections (Topic 250): ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323). Transition guidance included in certain issued but not yet adopted ASUs was updated to reflect this amendment.


•	Financial Instruments - Classification and Measurement: ASU 2016-01, Financial Instruments - Recognition and Measurement of Financial Instruments and Financial Liabilities. This update is effective for our fiscal year beginning January 1, 2018.


•	Derivatives and Hedging: ASU 2016-06, Contingent Put and Call Options in Debt Instruments, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted.


•	Derivatives and Hedging: ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which is effective for our fiscal year beginning January 1, 2017 with early adoption permitted.


•	Fair Value Measurements: ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent), which was effective for our fiscal year January 1, 2016. This update impacted our Plan Asset disclosures included in Note 16 - Employee Benefit Plans.


•	Inventory: ASU 2015-11, Simplifying the Subsequent Measurement of Inventory, which is effective for our fiscal year beginning January 1, 2017.


•	Disclosures of Going Concern Uncertainties: ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which was effective for our fiscal year ended December 31, 2016.


•	Stock Compensation: ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period, which was effective for our fiscal year beginning January 1, 2016.

Revenue Recognition

Supplies: Supplies revenue generally is recognized upon shipment or utilization by customers in accordance with the sales contract terms.

Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method.

Long-lived assets used in the fulfillment of service arrangements are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific.

Our services contracts may also include the sale of equipment and software. In these instances we follow the policies noted above under Equipment-Related Revenues.

Other Revenue Recognition Policies

Multiple Element Arrangements: As described above, we enter into the following revenue arrangements that may consist of multiple deliverables:


•	Bundled lease arrangements, which typically include both lease deliverables and non-lease deliverables as described above.


•	Contracts for multiple types of document related services including professional and value-added services. For instance, we may contract for an implementation of a printing solution and also provide services to operate the solution over a period of time; or we may contract to scan, manage and store customer documents.

In substantially all of our multiple element arrangements, we are able to separate the deliverables since we normally will meet both of the following criteria:


•	The delivered item(s) has value to the customer on a stand-alone basis; and


•	If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control.

Revenue Recognition

Supplies: Supplies revenue generally is recognized upon shipment or utilization by customers in accordance with the sales contract terms.

Leases

Finance, Loans and Leases Receivable, Policy

Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method.

Services-Related Revenue

Long-lived assets used in the fulfillment of service arrangements are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific.

Our services contracts may also include the sale of equipment and software. In these instances we follow the policies noted above under Equipment-Related Revenues.

Multiple Element Arrangements

Multiple Element Arrangements: As described above, we enter into the following revenue arrangements that may consist of multiple deliverables:


•	Bundled lease arrangements, which typically include both lease deliverables and non-lease deliverables as described above.


•	Contracts for multiple types of document related services including professional and value-added services. For instance, we may contract for an implementation of a printing solution and also provide services to operate the solution over a period of time; or we may contract to scan, manage and store customer documents.

In substantially all of our multiple element arrangements, we are able to separate the deliverables since we normally will meet both of the following criteria:


•	The delivered item(s) has value to the customer on a stand-alone basis; and


•	If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control.

Shipping and Handling

Costs related to shipping and handling are recognized as incurred and included in Cost of sales in the Consolidated Statements of (Loss) Income.

Research, Development and Engineering (RD&E)

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, including money market funds, and investments with original maturities of three months or less.

Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Sales, Policy

Receivable Sales

Inventories

Land, Buildings and Equipment and Equipment on Operating Leases

Land, Buildings and Equipment on Operating Leases

Software - Internal Use and Product

Capitalization of Internal Costs

Software - Internal Use and Product

Goodwill and Other Intangible Assets

Refer to Note 10 - Goodwill and Intangible Assets, Net for further information.

Impairment of Long-Lived Assets

Intangibles - Goodwill and Other

Pension and Post-Retirement Benefit Obligations

Foreign Currency Transactions and Re-measurement

Foreign Currency Translation and Re-measurement

Receivables, Policy

Accounts Receivable Sales Arrangements

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Significant Accounting Estimates

The following table summarizes certain recurring-type costs and expenses that require management estimates for the three years ended December 31, 2016:



	Year Ended December 31,
Expense/(Income)	2016		2015		2014
Provisions for restructuring and related costs	$	264	$	27	$	106
Provision for receivables	43		54		50
Provisions for obsolete and excess inventory	28		30		26
Provision for product warranty liability	15		22		25
Depreciation and obsolescence of equipment on operating leases	276		286		297
Depreciation of buildings and equipment	148		151		179
Amortization of internal use software	73		83		88
Amortization of product software	4		4		4
Amortization of acquired intangible assets	58		60		65
Amortization of customer contract costs	4		6		6
Defined pension benefits - net periodic benefit cost	127		141		74
Retiree health benefits - net periodic benefit cost	35		2		3
Income tax expense	62		193		198

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Operating segment revenues and profitability

Selected financial information for our reportable segments was as follows:




	Document Technology		Services		Other			Total
2016 ⁽¹⁾
Revenue	$	6,458	$	3,438	$	550		$	10,446
Finance income	251		67		7			325
Total Segment Revenue	$	6,709	$	3,505	$	557		$	10,771
Depreciation and amortization⁽²⁾	$	274	$	218	$	13		$	505
Interest expense	108		19		182			309
Segment profit (loss)	901		469		(223		)	1,147
Equity in net income of unconsolidated affiliates	97		24		—			121

2015 ⁽¹⁾
Revenue	$	7,098	$	3,485	$	536		$	11,119
Finance income	267		72		7			346
Total Segment Revenue	$	7,365	$	3,557	$	543		$	11,465
Depreciation and amortization⁽²⁾	$	297	$	222	$	11		$	530
Interest expense	109		20		217			346
Segment profit (loss)	1,041		458		(225		)	1,274
Equity in net income of unconsolidated affiliates	108		27		—			135

2014 ⁽¹⁾
Revenue	$	8,044	$	3,658	$	590		$	12,292
Finance income	314		65		8			387
Total Segment Revenue	$	8,358	$	3,723	$	598		$	12,679
Depreciation and amortization⁽²⁾	$	334	$	225	$	15		$	574
Interest expense	121		18		227			366
Segment profit (loss)	1,285		443		(218		)	1,510
Equity in net income of unconsolidated affiliates	128		32		—			160

_____________


(1)	Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM).


(2)	Depreciation and amortization excludes amortization of intangible assets - see reconciliation below.

Reconciliation to pre-tax income (loss)

The following is a reconciliation of segment profit to pre-tax income:



	Year Ended December 31,
	2016			2015			2014
Total Segment Profit	$	1,147		$	1,274		$	1,510
Reconciling items:
Amortization of intangible assets	(58		)	(60		)	(65		)
Equity in net income of unconsolidated affiliates	(121		)	(135		)	(160		)
Restructuring and related costs	(264		)	(27		)	(106		)
Restructuring charges of Fuji Xerox	(3		)	(4		)	(3		)
Business transformation costs⁽¹⁾	(2		)	(8		)	(7		)
Non-service retirement-related costs⁽²⁾	(131		)	(116		)	(79		)
Pre-tax Income	$	568		$	924		$	1,090

_____________


(1)	Business transformation costs represent incremental costs incurred directly in support of our business transformation and restructuring initiatives such as compensation costs for overlapping staff, consulting costs and training costs.


(2)	Represents the non-service elements of our defined-benefit pension and retiree-health plan costs. Refer to Note 16 - Employee Benefit Plans for details regarding these elements.

Revenue and long-lived assets by geography

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⁾
	2016		2015		2014		2016		2015
United States	$	6,403	$	6,734	$	7,184	$	824	$	886
Europe	2,861		3,155		3,649		359		435
Other areas	1,507		1,576		1,846		178		163
Total Revenues and Long-Lived Assets	$	10,771	$	11,465	$	12,679	$	1,361	$	1,484

_____________


(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,

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the purchase price allocations for our 2016 acquisitions as of the acquisition dates:



	Weighted-Average Life (Years)	Total 2016 Acquisitions
Accounts/finance receivables		$	2
Intangible assets:
Customer relationships	10	7
Trademarks	20	2
Non-compete agreements	4	1
Goodwill		19
Other assets		3
Total Assets Acquired		34
Liabilities assumed		(4		)
Total Purchase Price		$	30

Divestitures (Tables)

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Summarized Financial Information - Discontinued Operations

Summarized financial information for our Discontinued Operations is as follows:



	Year Ended December 31, 2016
	Conduent			ITO		Total
Revenue	$	6,355		$	—	$	6,355

Loss from operations	$	(1,343	)	$	—	$	(1,343	)
Loss on disposal	—			—		—
Net loss before income taxes	(1,343		)	—		(1,343		)
Income tax benefit	250			—		250
Loss from discontinued operations, net of tax	$	(1,093	)	$	—	$	(1,093	)



	Year Ended December 31, 2015
	Conduent			ITO			Total
Revenue	$	6,604		$	619		$	7,223

(Loss) income from operations	$	(511	)	$	104		$	(407	)
Loss on disposal	—			(101		)	(101		)
Net (loss) income before income taxes	(511		)	3			(508		)
Income tax benefit (expense)	215			(81		)	134
Loss from discontinued operations, net of tax	$	(296	)	$	(78	)	$	(374	)



	Year Ended December 31, 2014
	Conduent			ITO			Other			Total
Revenue	$	6,885		$	1,320		$	45		$	8,250

Income (loss) from operations	$	116		$	74		$	(1	)	$	189
Loss on disposal	—			(181		)	(1		)	(182		)
Net income (loss) before income taxes	116			(107		)	(2		)	7
Income tax expense	(17		)	(5		)	(1		)	(23		)
Income (loss) from discontinued operations, net of tax	$	99		$	(112	)	$	(3	)	$	(16	)

The following is a summary of disclosed acquisitions over the past three years that were part of the Distribution of Conduent at December 31, 2016.



Acquisition	Date of Acquisition	Acquisition Price

RSA Medical LLC (RSA Medical)	September 2015	$	141
Intellinex LLC	January 2015	28
Consilience Software, Inc. (Consilience)	September 2014	25
ISG Holdings, Inc. (ISG)	May 2014	225
Invoco Holding GmbH (Invoco)	January 2014	54

The balance Due from Conduent includes the following amounts:



Due from\(to) Conduent	December 31, 2016
Cash adjustment	$	161
Taxes payable	(32		)
Other	(2		)
Total Due from Conduent	$	127

Discontinued Operations - Balance Sheet

The balances as of December 31, 2015 are presented for comparative purposes and are included in Assets and Liabilities of discontinued operations in the Consolidated Balance Sheet at December 31, 2015:



	December 31, 2016		December 31, 2015
Cash and cash equivalents	$	390	$	140
Accounts receivable, net	1,287		1,251
Other current assets	239		227
Total current assets of discontinued operations	1,916		1,618
Land, buildings and equipment, net	283		279
Intangible assets, net	1,144		1,425
Goodwill	3,889		4,872
Other long-term assets	477		609
Total long-term assets of discontinued operations	5,793		7,185
Total Assets of Discontinued Operations	$	7,709	$	8,803

Current portion of long-term debt	$	28	$	23
Accounts payable	159		272
Accrued pension and benefit costs	284		245
Unearned income	208		226
Other current liabilities	742		861
Total current liabilities of discontinued operations	1,421		1,627
Long-term debt	1,913		37
Pension and other benefit liabilities	173		153
Other long-term liabilities	757		932
Total long-term liabilities of discontinued operations	2,843		1,122
Total Liabilities of Discontinued Operations	$	4,264	$	2,749

Discontinued operations, Conduent, costs and expenses [Text Block]

The following is a summary of selected financial information of Conduent for the three years ended December 31, 2016:



	Year Ended December 31,
	2016		2015		2014
Cost and Expenses:
Cost of services	$	5,456	$	5,923	$	5,749
Other Expenses⁽¹⁾	2,065		1,192		1,020
Total Costs and Expenses	$	7,521	$	7,115	$	6,769

Selected amounts included in Costs and Expenses:
Depreciation of buildings and equipment	$	130	$	126	$	145
Amortization of internal use software	49		51		52
Amortization of product software	61		65		58
Amortization of acquired intangible assets	280		250		250
Amortization of customer contract costs	93		108		122
Operating lease rent expense	378		389		385
Defined contribution plans	35		34		31
Interest expense ⁽²⁾	13		8		11
Goodwill impairment charge ⁽³⁾	935		—		—

Expenditures:
Cost of additions to land, buildings and equipment	$	150	$	126	$	144
Cost of additions to internal use software	39		26		26
Customer-related deferred set-up/transition and inducement costs	62		55		55

_____________


(1)	2016 amount excludes $159 of Separation related costs and $18 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation, and therefore was also reported in the loss from discontinued operations.


(2)	Represents interest on Conduent third-party borrowings only that were transferred to Conduent as part of the Distribution. 2016 amount excludes $18 of interest associated with the $1.0 billion Senior Unsecured Term Facility noted above. No additional interest expense was allocated to discontinued operations for the three years ended December 31, 2016.


(3)	Prior to the Separation and Distribution of Conduent, in connection with the annual goodwill impairment test, a pre-tax goodwill impairment charge was recorded in the fourth quarter 2016 associated with the Commercial Services reporting unit of the BPO business.

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

Accounts Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable, net were as follows:



	December 31,
	2016			2015
Invoiced	$	651		$	741
Accrued	374			401
Allowance for doubtful accounts	(64		)	(74		)
Accounts Receivable, Net	$	961		$	1,068

Schedule Of Accounts Receivable Sales

Accounts receivable sales were as follows:



	Year Ended December 31,
	2016		2015		2014
Accounts receivable sales	$	2,267	$	2,142	$	2,563
Deferred proceeds	233		247		387
Loss on sale of accounts receivable	16		13		15
Estimated increase (decrease) to operating cash flows⁽¹⁾	30		62		(64		)

_____________


(1)	Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency.

Finance Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Financing Receivables, Minimum Payments

Finance Receivables

Finance receivables, net were as follows:



	December 31,
	2016			2015
Gross receivables	$	4,380		$	4,683
Unearned income	(526		)	(577		)
Subtotal	3,854			4,106
Residual values	—			—
Allowance for doubtful accounts	(110		)	(118		)
Finance Receivables, Net	3,744			3,988
Less: Billed portion of finance receivables, net	90			97
Less: Current portion of finance receivables not billed, net	1,256			1,315
Finance Receivables Due After One Year, Net	$	2,398		$	2,576

Contractual maturities of our gross finance receivables as of December 31, 2016 were as follows (including those already billed of $90):



2017		2018		2019		2020		2021		Thereafter		Total
$	1,628	$	1,225	$	855	$	485	$	175	$	12	$	4,380

Finance Receivables Sales Activity

The following is a summary of our prior sales activity:



	Year Ended December 31,
	2013		2012
Net carrying value (NCV) sold	$	676	$	682
Allowance included in NCV	17		18
Cash proceeds received	635		630
Beneficial interests received	86		101

Impact to Cash Flows from Sales of Finance Receivables

The net impact from the sales of finance receivables on operating cash flows is summarized below:




	2016			2015			2014			2013/2012
Net cash received for sales of finance receivables⁽¹⁾	$	—		$	—		$	—		$	1,256
Impact from prior sales of finance receivables⁽²⁾	(186		)	(342		)	(527		)	(437		)
Collections on beneficial interests	30			56			94			58
Estimated (Decrease) Increase to Operating Cash Flows	$	(156	)	$	(286	)	$	(433	)	$	877

_____________


(1)	Net of beneficial interest, fees and expenses.


(2)	Represents cash that would have been collected if we had not sold finance receivables.

Allowance for Credit Losses Rollforward, and the Investment in Finance Receivables

The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables:



Allowance for Credit Losses:	United States			Canada			Europe			Other⁽²⁾			Total
Balance at December 31, 2014⁽¹⁾	$	51		$	20		$	58		$	2		$	131
Provision	11			6			10			1			28
Charge-offs	(8		)	(10		)	(17		)	(1		)	(36		)
Recoveries and other⁽³⁾	—			1			(6		)	—			(5		)
Balance at December 31, 2015	$	54		$	17		$	45		$	2		$	118
Provision	10			3			11			—			24
Charge-offs	(12		)	(8		)	(15		)	—			(35		)
Recoveries and other⁽³⁾	3			4			(4		)	—			3
Balance at December 31, 2016	$	55		$	16		$	37		$	2		$	110
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2015⁽⁴⁾	$	2,174		$	365		$	1,509		$	58		$	4,106
December 31, 2016⁽⁴⁾	$	2,138		$	378		$	1,286		$	52		$	3,854

_____________


(1)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.


(2)	Includes developing market countries and smaller units.


(3)	Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.


(4)	Total Finance receivables exclude the allowance for credit losses of $110 and $118 at December 31, 2016 and 2015, respectively.

Credit Quality Indicators for Finance Receivables

Details about our finance receivables portfolio based on industry and credit quality indicators are as follows:



	December 31, 2016								December 31, 2015⁽⁴⁾
	Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables		Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables
Finance and other services	$	181	$	342	$	95	$	618	$	195	$	285	$	91	$	571
Government and education	543		57		8		608		575		48		7		630
Graphic arts	138		102		107		347		145		92		127		364
Industrial	82		78		24		184		89		62		22		173
Healthcare	79		47		17		143		90		46		19		155
Other	82		103		53		238		121		107		53		281
Total United States	1,105		729		304		2,138		1,215		640		319		2,174
Finance and other services	54		43		15		112		55		35		9		99
Government and education	52		6		2		60		59		7		2		68
Graphic arts	39		37		24		100		45		35		21		101
Industrial	21		13		6		40		23		12		3		38
Other	33		25		8		66		33		23		3		59
Total Canada	199		124		55		378		215		112		38		365
France	181		222		51		454		203		207		101		511
U.K/Ireland	189		63		1		253		235		91		3		329
Central⁽¹⁾	182		148		19		349		206		186		25		417
Southern⁽²⁾	36		131		14		181		36		138		17		191
Nordic⁽³⁾	26		22		1		49		24		35		2		61
Total Europe	614		586		86		1,286		704		657		148		1,509
Other	35		15		2		52		41		16		1		58
Total	$	1,953	$	1,454	$	447	$	3,854	$	2,175	$	1,425	$	506	$	4,106

_____________


(1)	Switzerland, Germany, Austria, Belgium and Holland.


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.

Aging of Billed Finance Receivables

The aging of our billed finance receivables is as follows:



	December 31, 2016
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	13	$	3	$	1	$	17	$	601	$	618	$	11
Government and education	10		4		3		17		591		608		25
Graphic arts	13		1		—		14		333		347		5
Industrial	4		1		1		6		178		184		5
Healthcare	3		1		1		5		138		143		5
Other	9		2		1		12		226		238		5
Total United States	52		12		7		71		2,067		2,138		56
Canada	3		—		—		3		375		378		8
France	3		—		—		3		451		454		20
U.K./Ireland	2		1		—		3		250		253		1
Central⁽¹⁾	2		1		—		3		346		349		5
Southern⁽²⁾	5		1		1		7		174		181		6
Nordic⁽³⁾	1		—		—		1		48		49		1
Total Europe	13		3		1		17		1,269		1,286		33
Other	3		—		—		3		49		52		—
Total	$	71	$	15	$	8	$	94	$	3,760	$	3,854	$	97



	December 31, 2015⁽⁴⁾
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	10	$	2	$	2	$	14	$	557	$	571	$	14
Government and education	12		1		4		17		613		630		37
Graphic arts	12		2		1		15		349		364		8
Industrial	5		1		1		7		166		173		7
Healthcare	4		1		1		6		149		155		9
Other	14		2		2		18		263		281		7
Total United States	57		9		11		77		2,097		2,174		82
Canada	3		—		—		3		362		365		9
France	—		—		—		—		511		511		25
U.K./Ireland	1		—		—		1		328		329		1
Central⁽¹⁾	3		1		1		5		412		417		7
Southern⁽²⁾	8		2		3		13		178		191		10
Nordic⁽³⁾	1		—		—		1		60		61		4
Total Europe	13		3		4		20		1,489		1,509		47
Other	1		1		—		2		56		58		—
Total	$	74	$	13	$	15	$	102	$	4,004	$	4,106	$	138

_____________


(1)	Switzerland, Germany, Austria, Belgium and Holland.


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.

Inventories and Equipment on Operating Leases, Net (Tables)

12 Months Ended

Dec. 31, 2016

Inventories and Equipment on Operating Leases, Net [Abstract]

Schedule of Inventories by major category

The following is a summary of Inventories by major category:



	December 31,
	2016		2015
Finished goods	$	713	$	751
Work-in-process	47		51
Raw materials	81		99
Total Inventories	$	841	$	901

Schedule of Property Subject to or Available for Operating Lease

Equipment on operating leases and the related accumulated depreciation were as follows:



	December 31,
	2016			2015
Equipment on operating leases	$	1,468		$	1,478
Accumulated depreciation	(993		)	(983		)
Equipment on Operating Leases, Net	$	475		$	495

Schedule of Future Rental Revenues on Operating Leases

Scheduled minimum future rental revenues on operating leases with original terms of one year or longer are:



2017		2018		2019		2020		2021		Thereafter
$	319	$	221	$	142	$	76	$	26	$	3

Land, Buildings, Equipment and Software, Net (Tables)

12 Months Ended

Dec. 31, 2016

Land, Buildings, Equipment and Software, Net [Abstract]

Land, buildings and equipment, net

Land, buildings and equipment, net were as follows:



		December 31,
	Estimated Useful Lives (Years)	2016			2015
Land		$	20		$	21
Building and building equipment	25 to 50	911			919
Leasehold improvements	Varies	219			244
Plant machinery	5 to 12	1,225			1,274
Office furniture and equipment	3 to 15	657			700
Other	4 to 20	70			63
Construction in progress		33			28
Subtotal		3,135			3,249
Accumulated depreciation		(2,475		)	(2,532		)
Land, Buildings and Equipment, Net		$	660		$	717

Land, Buildings and Equipment Depreciation Expense

Depreciation expense and operating lease rent expense were as follows:



	Year Ended December 31,
	2016		2015		2014
Depreciation expense	$	148	$	151	$	179
Operating lease expense	157		164		175

Schedule of Future Minimum Operating Lease Non-cancelable Payments

Future minimum operating lease commitments that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2016 were as follows:



2017		2018		2019		2020		2021		Thereafter
$	124	$	94	$	72	$	53	$	40	$	71

Additions to Internal Use and Product Software



	Year Ended December 31,
Additions to:	2016		2015		2014
Internal use software	$	45	$	64	$	57

Capitalized Costs, Internal Use and Product Software [Table Text Block]



	December 31,
Capitalized costs, net:	2016		2015
Internal use software	$	218	$	264

Investment in Affiliates, at Equity (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Equity Method Investments [Line Items]

Investments in and Advances to Affiliates

Investments in corporate joint ventures and other companies in which we generally have a 20% to 50% ownership interest were as follows:



	December 31,
	2016		2015
Fuji Xerox	$	1,313	$	1,315
Other	75		67
Investments in Affiliates, at Equity	$	1,388	$	1,382

Equity Net Income in Unconsolidated Affiliates

Our equity in net income of our unconsolidated affiliates was as follows:



	Year Ended December 31,
	2016		2015		2014
Fuji Xerox	$	108	$	117	$	147
Other	13		18		13
Total Equity in Net Income of Unconsolidated Affiliates	$	121	$	135	$	160

Exchange rates for Equity Investments in Affiliates

Yen/U.S. Dollar exchange rates used to translate are as follows:



Financial Statement	Exchange Basis	2016	2015	2014
Summary of Operations	Weighted average rate	108.68	121.01	105.58
Balance Sheet	Year-end rate	116.53	120.49	119.46

Other Transactions with Equity Affiliates

Transactions with Fuji Xerox were as follows:



	Year Ended December 31,
	2016		2015		2014
Dividends received from Fuji Xerox	$	47	$	51	$	58
Royalty revenue earned	107		102		115
Inventory purchases from Fuji Xerox	1,641		1,728		1,831
Inventory sales to Fuji Xerox	80		108		120
R&D payments received from Fuji Xerox	1		1		1
R&D payments paid to Fuji Xerox	13		7		17

Fuji Xerox [Member]

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments

Summarized financial information for Fuji Xerox is as follows:



	Year Ended December 31,
	2016		2015		2014
Summary of Operations
Revenues	$	10,161	$	9,925	$	11,112
Costs and expenses	9,486		9,198		10,242
Income before income taxes	675		727		870
Income tax expense	217		233		262
Net Income	458		494		608
Less: Net income - noncontrolling interests	7		7		4
Net Income - Fuji Xerox	$	451	$	487	$	604
Balance Sheet
Assets:
Current assets	$	4,464	$	4,585	$	4,801
Long-term assets	4,734		4,946		4,742
Total Assets	$	9,198	$	9,531	$	9,543
Liabilities and Equity:
Current liabilities	$	2,679	$	2,808	$	2,982
Long-term debt	283		584		580
Other long-term liabilities	583		511		482
Noncontrolling interests	31		31		30
Fuji Xerox shareholders' equity	5,622		5,597		5,469
Total Liabilities and Equity	$	9,198	$	9,531	$	9,543

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table presents the changes in the carrying amount of goodwill, by reportable segment:



	Document Technology			Services			Total
Balance at December 31, 2014	$	2,353		$	1,668		$	4,021
Foreign currency translation	(38		)	(38		)	(76		)
Acquisitions:
Other	6			—			6
Balance at December 31, 2015	$	2,321		$	1,630		$	3,951
Foreign currency translation	(93		)	(90		)	(183		)
Acquisitions:
Imagetek	10			—			10
Other	9			—			9
Balance at December 31, 2016	$	2,247		$	1,540		$	3,787

Schedule of Finite-Lived Intangible Assets by Major Class

Intangible assets were comprised of the following:



		December 31, 2016						December 31, 2015
	Weighted Average Amortization	Gross Carrying Amount		Accumulated Amortization		Net Amount		Gross Carrying Amount		Accumulated Amortization		Net Amount
Customer relationships	13 years	$	508	$	410	$	98	$	509	$	378	$	131
Distribution network	25 years	123		84		39		123		79		44
Trademarks	20 years	250		107		143		248		95		153
Technology, patents and non-compete	13 years	15		5		10		19		7		12
Total Intangible Assets		$	896	$	606	$	290	$	899	$	559	$	340

Restructuring and Asset Impairment Charges (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring Program Activity

A summary of our restructuring program activity during the three years ended December 31, 2016 is as follows:



	Severance and Related Costs			Lease Cancellation and Other Costs			Asset Impairments⁽²⁾			Total
Balance at December 31, 2013	$	96		$	3		$	—		$	99
Restructuring provision	115			3			5			123
Reversals of prior accruals	(16		)	—			(1		)	(17		)
Net Current Period Charges⁽¹⁾	99			3			4			106
Charges against reserve and currency	(112		)	(5		)	(4		)	(121		)
Balance at December 31, 2014	$	83		$	1		$	—		$	84
Restructuring provision	35			2			7			44
Reversals of prior accruals	(16		)	(1		)	—			(17		)
Net Current Period Charges⁽¹⁾	19			1			7			27
Charges against reserve and currency	(84		)	(1		)	(7		)	(92		)
Balance at December 31, 2015	$	18		$	1		$	—		$	19
Restructuring provision	224			28			—			252
Reversals of prior accruals	(16		)	(1		)	(5		)	(22		)
Net Current Period Charges⁽¹⁾	208			27			(5		)	230
Charges against reserve and currency	(122		)	(5		)	5			(122		)
Balance at December 31, 2016	$	104		$	23		$	—		$	127

_____________


(1)	Represents net amount recognized within the Consolidated Statements of (Loss) Income for the years shown for restructuring and asset impairments charges.


(2)	Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision.

Reconciliation to the Condensed Consolidated Statements of Cash Flows

The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows:



	Year Ended December 31,
	2016			2015			2014
Charges against reserve	$	(122	)	$	(92	)	$	(121	)
Asset impairments	—			7			5
Effects of foreign currency and other non-cash items	4			6			6
Restructuring Cash Payments	$	(118	)	$	(79	)	$	(110	)

Total Costs Incurred with Restructuring Programs, by Segment

The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment:



	Year Ended December 31,
	2016			2015		2014
Document Technology	$	208		$	15	$	76
Services	25			4		16
Other	(3		)	8		14
Total Net Restructuring Charges	$	230		$	27	$	106

Supplementary Financial Information (Tables)

12 Months Ended

Dec. 31, 2016

Supplemental Financial Information [Abstract]

Supplemental Financial Information

Supplementary Financial Information

The components of Other assets and liabilities were as follows:



	December 31,
	2016		2015
Other Current Assets
Income taxes receivable	$	50	$	12
Royalties, license fees and software maintenance	21		34
Restricted cash	92		84
Prepaid expenses	45		51
Derivative instruments	88		55
Deferred purchase price from sales of accounts receivables	48		61
Beneficial interests - sales of finance receivables	8		8
Advances and deposits	15		25
Other	125		128
Due from Conduent	127		—
Total Other Current Assets	$	619	$	458
Other Current Liabilities
Income taxes payable	$	45	$	28
Other taxes payable	78		76
Interest payable	55		73
Restructuring reserves	121		18
Derivative instruments	39		11
Product warranties	7		8
Dividends payable	91		85
Distributor and reseller rebates/commissions	120		106
Servicer liabilities	62		83
Other	290		227
Total Other Current Liabilities	$	908	$	715
Other Long-term Assets
Deferred taxes	$	1,475	$	1,450
Income taxes receivable	14		9
Prepaid pension costs	17		22
Derivative instruments	4		7
Net investment in TRG	126		142
Internal use software, net	218		264
Product software, net	8		8
Restricted cash	87		72
Debt issuance costs, net	3		4
Customer contract costs, net	7		13
Beneficial interest - sales of finance receivables	16		30
Deferred compensation plan investments	15		13
Other	165		176
Total Other Long-term Assets	$	2,155	$	2,210
Other Long-term Liabilities
Deferred taxes	$	42	$	51
Income taxes payable	16		49
Environmental reserves	9		11
Restructuring reserves	6		1
Other	120		126
Total Other Long-term Liabilities	$	193	$	238

Schedule of Restricted Cash and Cash Equivalents

Restricted cash amounts were as follows:



	December 31,
	2016		2015
Tax and labor litigation deposits in Brazil	$	85	$	71
Escrow and cash collections related to receivable sales	62		83
Other restricted cash	32		2
Total Restricted Cash	$	179	$	156

Summarized Financial Information - Discontinued Operations

Summarized financial information for our Discontinued Operations is as follows:



	Year Ended December 31, 2016
	Conduent			ITO		Total
Revenue	$	6,355		$	—	$	6,355

Loss from operations	$	(1,343	)	$	—	$	(1,343	)
Loss on disposal	—			—		—
Net loss before income taxes	(1,343		)	—		(1,343		)
Income tax benefit	250			—		250
Loss from discontinued operations, net of tax	$	(1,093	)	$	—	$	(1,093	)



	Year Ended December 31, 2015
	Conduent			ITO			Total
Revenue	$	6,604		$	619		$	7,223

(Loss) income from operations	$	(511	)	$	104		$	(407	)
Loss on disposal	—			(101		)	(101		)
Net (loss) income before income taxes	(511		)	3			(508		)
Income tax benefit (expense)	215			(81		)	134
Loss from discontinued operations, net of tax	$	(296	)	$	(78	)	$	(374	)



	Year Ended December 31, 2014
	Conduent			ITO			Other			Total
Revenue	$	6,885		$	1,320		$	45		$	8,250

Income (loss) from operations	$	116		$	74		$	(1	)	$	189
Loss on disposal	—			(181		)	(1		)	(182		)
Net income (loss) before income taxes	116			(107		)	(2		)	7
Income tax expense	(17		)	(5		)	(1		)	(23		)
Income (loss) from discontinued operations, net of tax	$	99		$	(112	)	$	(3	)	$	(16	)

The following is a summary of disclosed acquisitions over the past three years that were part of the Distribution of Conduent at December 31, 2016.



Acquisition	Date of Acquisition	Acquisition Price

RSA Medical LLC (RSA Medical)	September 2015	$	141
Intellinex LLC	January 2015	28
Consilience Software, Inc. (Consilience)	September 2014	25
ISG Holdings, Inc. (ISG)	May 2014	225
Invoco Holding GmbH (Invoco)	January 2014	54

The balance Due from Conduent includes the following amounts:



Due from\(to) Conduent	December 31, 2016
Cash adjustment	$	161
Taxes payable	(32		)
Other	(2		)
Total Due from Conduent	$	127

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Topic 205
-SubTopic 20
-Section 45
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Interest Income and Interest Expense Disclosure

Debt (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Interest paid on our short-term and long-term debt amounted to $352, $365 and $400 for the years ended December 31, 2016, 2015 and 2014, respectively.



	Year Ended December 31,
	2016		2015		2014
Interest paid - continuing operations	$	332	$	356	$	387
Interest paid - discontinued operations	20		9		13
Total interest paid on debt	$	352	$	365	$	400

Schedule of Short-term Debt

Short-term borrowings were as follows:



	December 31,
	2016		2015
Notes Payable	$	4	$	3
Current maturities of long-term debt	1,007		959
Total Short-term Debt	$	1,011	$	962

Schedule of Long-term Debt Instruments

Long-term debt was as follows:



					December 31,
	Stated Rate		Weighted Average Interest Rates at December 31, 2016⁽³⁾		2016			2015
Xerox Corporation
Senior Notes due 2016					$	—		$	700
Notes due 2016					—			250
Senior Notes due 2017⁽¹⁾	6.75	%	6.83	%	500			500
Senior Notes due 2017⁽¹⁾	2.95	%	2.98	%	500			500
Notes due 2018	0.57	%	0.57	%	1			1
Senior Notes due 2018	6.35	%	6.37	%	1,000			1,000
Senior Notes due 2019	2.75	%	2.77	%	500			500
Senior Notes due 2019	5.63	%	5.66	%	650			650
Senior Notes due 2020	2.80	%	2.81	%	400			400
Senior Notes due 2020	3.50	%	3.70	%	400			400
Senior Notes due 2020	2.75	%	2.77	%	400			400
Senior Notes due 2021	4.50	%	5.39	%	1,062			1,062
Senior Notes due 2024	3.80	%	3.84	%	300			300
Senior Notes due 2035	4.80	%	4.84	%	250			250
Senior Notes due 2039	6.75	%	6.78	%	350			350
Subtotal - Xerox Corporation					$	6,313		$	7,263
Subsidiary Companies
Capital lease obligations			9.44	%	31			39
Other			0.34	%	1			1
Subtotal - Subsidiary Companies					$	32		$	40

Principal debt balance					$	6,345		$	7,303
Unamortized discount					(43		)	(52		)
Debt issuance costs					(21		)	(29		)
Fair value adjustments⁽²⁾
Terminated swaps					27			47
Current swaps					4			7
Less: current maturities					(1,007		)	(959		)
Total Long-term Debt					$	5,305		$	6,317

_____________


(1)	Senior Notes maturing in 2017 expected to be paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 4 - Divestitures for additional information.

(2)


(3)	Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt.

Schedule of Maturities of Long-term Debt

Scheduled principal payments due on our long-term debt for the next five years and thereafter are as follows:



2017⁽¹⁾		2018		2019		2020		2021		Thereafter		Total
$	1,007	$	1,008	$	1,156	$	1,207	$	1,067	$	900	$	6,345

_____________


(1)	Quarterly long-term debt maturities from continuing operations for 2017 are $1,001, $2, $2 and $2 for the first, second, third and fourth quarters, respectively.

Schedule Of Interest Expense And Interest Income

Interest expense and interest income was as follows:



	Year Ended December 31,
	2016		2015		2014
Interest expense⁽¹⁾	$	309	$	346	$	366
Interest income⁽²⁾	330		352		396

_____________


(1)	Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of (Loss) Income.


(2)	Includes Finance income, as well as other interest income that is included in Other expenses, net in the Consolidated Statements of (Loss)Income.

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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-Name Accounting Standards Codification
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Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Interest Rate Derivatives

The following is a summary of our fair value hedges at December 31, 2016:



Debt Instrument	Year First Designated	Notional Amount		Net Fair Value		Weighted Average Interest Rate Paid		Interest Rate Received		Basis	Maturity
Senior Note 2021	2014	$	300	$	4	2.60	%	4.50	%	Libor	2021

Schedule of a Summary of Foreign Exchange Contracts Gross Notional Values

The following is a summary of the primary hedging positions and corresponding fair values as of December 31, 2016:



Currencies Hedged (Buy/Sell)	Gross Notional Value		Fair Value Asset (Liability)⁽¹⁾
Euro/U.K. Pound Sterling	$	1,321	$	22
Japanese Yen/U.S. Dollar	389		(27		)
U.S. Dollar/U.K. Pound Sterling	268		41
Japanese Yen/Euro	261		(6		)
U.S. Dollar/Euro	210		6
Canadian Dollar/U.K. Pound Sterling	169		14
Swiss Franc/Euro	98		—
U.K. Pound Sterling/Euro	98		(1		)
U.K. Pound Sterling/U.S. Dollar	77		(1		)
Euro/Japanese Yen	26		—
Euro/Mexican Peso	25		2
All Other	207		(1		)
Total Foreign Exchange Hedging	$	3,149	$	49

____________


(1)	Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2016.

Schedule of a Summary of Derivative Instruments Fair Value

The following table provides a summary of the fair value amounts of our derivative instruments:



		December 31,
Designation of Derivatives	Balance Sheet Location	2016			2015
Derivatives Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	6		$	4
	Other current liabilities	(26		)	(2		)
Foreign currency options	Other current assets	—			—
	Other current liabilities	—			(1		)
Interest rate swaps	Other long-term assets	4			7
	Net Designated Derivative (Liability) Asset	$	(16	)	$	8

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	82		$	51
	Other current liabilities	(13		)	(8		)
	Net Undesignated Derivative Asset	$	69		$	43

Summary of Derivatives	Total Derivative Assets	$	92		$	62
	Total Derivative Liabilities	(39		)	(11		)
	Net Derivative Asset	$	53		$	51

Schedule of a Summary of Fair Value Hedges Gains (Losses)

The following tables provide a summary of gains (losses) on derivative instruments:



		Year Ended December 31,
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	Derivative Gain (Loss) Recognized in Income							Hedged Item Gain (Loss) Recognized in Income
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	2016			2015		2014		2016		2015			2014
Interest rate contracts	Interest expense	$	(3	)	$	2	$	5	$	3	$	(2	)	$	(5	)

Schedule of a Summary of Cash Flow Hedges Gains (Losses)



	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)							Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	Gain (Loss) Reclassified from AOCI to Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships	2016		2015		2014				2016		2015			2014
Foreign exchange contracts – forwards/options	$	20	$	17	$	(20	)	Cost of sales	$	42	$	(23	)	$	(39	)

Schedule of a Summary of Derivatives Not Designated as Hedging Instruments Gains (Losses)

The following table provides a summary of losses on non-designated derivative instruments:



		Year Ended December 31,
Derivatives NOT Designated as Hedging Instruments	Location of Derivative Loss	2016		2015		2014
Foreign exchange contracts – forwards	Other expense – Currency gains (losses), net	$	172	$	17	$	(9	)

Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Assets and Liabilities



	As of December 31,
	2016		2015
Assets
Foreign exchange contracts - forwards	$	88	$	55
Interest rate swaps	4		7
Deferred compensation investments in mutual funds	15		13
Total	$	107	$	75
Liabilities
Foreign exchange contracts - forwards	$	39	$	10
Foreign currency options	—		1
Deferred compensation plan liabilities	17		15
Total	$	56	$	26

Schedule of Estimated Fair Values of Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis

The estimated fair values of our other financial assets and liabilities were as follows:



	December 31, 2016				December 31, 2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	2,223	$	2,223	$	1,228	$	1,228
Accounts receivable, net	961		961		1,068		1,068
Short-term debt	1,011		1,015		962		954
Long-term debt	5,305		5,438		6,317		6,358

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Net Funded Status



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2016			2015			2016			2015			2016			2015
Change in Benefit Obligation:
Benefit obligation, January 1	$	4,126		$	4,642		$	6,308		$	6,962		$	855		$	937
Service cost	4			4			31			32			6			7
Interest cost	184			80			195			203			32			34
Plan participants' contributions	—			—			4			4			1			14
Actuarial loss (gain)	114			(223		)	636			(94		)	(75		)	(4		)
Currency exchange rate changes	—			—			(774		)	(524		)	4			(25		)
Plan Amendments/Curtailments	—			—			—			(17		)	—			(31		)
Benefits paid/settlements	(275		)	(377		)	(234		)	(255		)	(62		)	(77		)
Other	8			—			(6		)	(3		)	—			—
Benefit Obligation, December 31	$	4,161		$	4,126		$	6,160		$	6,308		$	761		$	855

Change in Plan Assets:
Fair value of plan assets, January 1	$	2,806		$	3,081		$	5,353		$	5,930		$	—		$	—
Actual return on plan assets	220			(70		)	804			(20		)	—			—
Employer contributions	24			173			154			128			61			63
Plan participants' contributions	—			—			4			4			1			14
Currency exchange rate changes	—			—			(694		)	(428		)	—			—
Benefits paid/settlements	(275		)	(377		)	(234		)	(255		)	(62		)	(77		)
Other	(1		)	(1		)	(3		)	(6		)	—			—
Fair Value of Plan Assets, December 31	$	2,774		$	2,806		$	5,384		$	5,353		$	—		$	—

Net Funded Status at December 31⁽¹⁾	$	(1,387	)	$	(1,320	)	$	(776	)	$	(955	)	$	(761	)	$	(855	)

Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	$	—		$	—		$	17		$	22		$	—		$	—
Accrued compensation and benefit costs	(24		)	(23		)	(22		)	(26		)	(63		)	(68		)
Pension and other benefit liabilities	(1,363		)	(1,297		)	(771		)	(951		)	—			—
Post-retirement medical benefits	—			—			—			—			(698		)	(787		)
Net Amounts Recognized	$	(1,387	)	$	(1,320	)	$	(776	)	$	(955	)	$	(761	)	$	(855	)

_____________


(1)	Includes under-funded and un-funded plans.

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

Benefit plans pre-tax amounts recognized in AOCL at December 31:



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2016			2015			2016			2015			2016			2015
Net actuarial loss	$	1,094		$	1,101		$	1,741		$	1,966		$	37		$	112
Prior service credit	(9		)	(11		)	(28		)	(33		)	(29		)	(34		)
Total Pre-tax Loss	$	1,085		$	1,090		$	1,713		$	1,933		$	8		$	78

Accumulated Benefit Obligation	$	4,161		$	4,126		$	5,931		$	6,068

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

Aggregate information for pension plans with an Accumulated benefit obligation in excess of plan assets is presented below:



	December 31, 2016						December 31, 2015
	Projected benefit obligation		Accumulated benefit obligation		Fair value of plan assets		Projected benefit obligation		Accumulated benefit obligation		Fair value of plan assets
Underfunded Plans:
U.S.	$	3,820	$	3,820	$	2,774	$	3,781	$	3,781	$	2,806
Non U.S.	4,535		4,368		4,194		4,803		4,644		4,300

Unfunded Plans:
U.S.	$	341	$	341	$	—	$	345	$	345	$	—
Non U.S.	445		436		—		421		413		—

Total Underfunded and Unfunded Plans:
U.S.	$	4,161	$	4,161	$	2,774	$	4,126	$	4,126	$	2,806
Non U.S.	4,980		4,804		4,194		5,224		5,057		4,300
Total	$	9,141	$	8,965	$	6,968	$	9,350	$	9,183	$	7,106

Schedule of Defined Benefit Pension Assets and Obligations by Geography

Our pension plan assets and benefit obligations at December 31, 2016 were as follows:



	Fair Value of Pension Plan Assets		Pension Benefit Obligations		Net Funded Status
U.S. funded	$	2,774	$	3,820	$	(1,046	)
U.S. unfunded	—		341		(341		)
Total U.S.	$	2,774	$	4,161	$	(1,387	)
U.K.	3,445		3,679		(234		)
Canada	661		700		(39		)
Other	1,278		1,781		(503		)
Total	$	8,158	$	10,321	$	(2,163	)

Schedule of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations

The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:



	Year Ended December 31,
	Pension Benefits
	U.S. Plans									Non-U.S. Plans									Retiree Health
	2016			2015			2014			2016			2015			2014			2016			2015			2014
Components of Net Periodic Benefit Costs:
Service cost	$	4		$	4		$	4		$	31		$	32		$	31		$	6		$	7		$	9
Interest cost⁽¹⁾	184			80			278			195			203			262			32			34			36
Expected return on plan assets⁽²⁾	(190		)	(79		)	(287		)	(249		)	(284		)	(332		)	—			—			—
Recognized net actuarial loss	26			24			17			65			70			54			2			1			1
Amortization of prior service credit	(2		)	(2		)	(2		)	(3		)	4			(1		)	(5		)	(18		)	(43		)
Recognized settlement loss	65			88			51			1			1			—			—			—			—
Recognized curtailment gain	—			—			—			—			—			(1		)	—			(22		)	—
Defined Benefit Plans	87			115			61			40			26			13			35			2			3
Defined contribution plans	30			33			31			31			33			40			n/a			n/a			n/a
Net Periodic Benefit Cost	117			148			92			71			59			53			35			2			3

Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income:
Net actuarial (gain) loss	84			(74		)	688			76			204			447			(75		)	(4		)	119
Prior service credit	—			—			—			—			(16		)	(6		)	—			(32		)	—
Amortization of net actuarial loss	(92		)	(112		)	(68		)	(66		)	(71		)	(54		)	(2		)	(1		)	(1		)
Amortization of net prior service credit	2			2			2			3			(4		)	1			5			18			43
Curtailment gain	—			—			—			—			—			2			—			22			—
Total Recognized in Other Comprehensive Income	(6		)	(184		)	622			13			113			390			(72		)	3			161
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income	$	111		$	(36	)	$	714		$	84		$	172		$	443		$	(37	)	$	5		$	164

_____________


(1)	Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $296, $311 and $361 and interest expense (income) directly allocated to TRA participant accounts of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively.


(2)	Expected return on plan assets includes expected investment income on non-TRA assets of $356, $388 and $437 and actual investment income (loss) on TRA assets of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively.

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables present the defined benefit plans assets measured at fair value and the basis for that measurement.



	December 31, 2016
	U.S. Plans												Non-U.S. Plans
Asset Class	Level 1		Level 2			Level 3		Assets measured at NAV⁽¹⁾		Total			Level 1		Level 2		Level 3		Assets measured at NAV⁽¹⁾		Total
Cash and cash equivalents	$	—	$	—		$	—	$	—	$	—		$	544	$	—	$	—	$	—	$	544
Equity Securities:
U.S.	320		—			—		68		388			266		42		—		—		308
International	258		—			—		160		418			358		722		—		127		1,207
Fixed Income Securities:
U.S. treasury securities	—		233			—		—		233			—		44		—		—		44
Debt security issued by government agency	—		65			—		—		65			—		1,654		—		—		1,654
Corporate bonds	—		1,052			—		—		1,052			—		618		—		—		618
Asset backed securities	—		2			—		—		2			—		1		—		—		1
Derivatives	—		(38		)	—		—		(38		)	—		64		—		—		64
Real estate	36		—			12		34		82			—		—		121		168		289
Private equity/venture capital	—		—			—		490		490			—		60		6		425		491
Guaranteed insurance contracts	—		—			—		—		—			—		—		104		—		104
Other⁽²⁾	15		—			—		67		82			6		54		—		—		60
Total Fair Value of Plan Assets	$	629	$	1,314		$	12	$	819	$	2,774		$	1,174	$	3,259	$	231	$	720	$	5,384

_____________


(1)	Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient, have not been classified in the fair value hierarchy.


(2)	Other Level 1 includes net non-financial assets of $15 U.S. and $6 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.



	December 31, 2015
	U.S. Plans													Non-U.S. Plans
Asset Class	Level 1			Level 2			Level 3		Assets measured at NAV⁽¹⁾		Total			Level 1		Level 2		Level 3		Assets measured at NAV⁽¹⁾		Total
Cash and cash equivalents	$	171		$	—		$	—	$	—	$	171		$	577	$	—	$	—	$	—	$	577
Equity Securities:
U.S.	380			—			—		20		400			200		38		—		—		238
International	287			1			—		157		445			1,011		40		—		112		1,163
Fixed Income Securities:																						—
U.S. treasury securities	—			216			—		—		216			—		48		—		—		48
Debt security issued by government agency	—			156			—		—		156			3		1,599		—		—		1,602
Corporate bonds	—			913			—		—		913			3		692		—		—		695
Asset backed securities	—			2			—		—		2			—		1		—		—		1
Derivatives	—			(8		)	—		—		(8		)	—		5		—		—		5
Real estate	42			—			17		39		98			—		—		145		154		299
Private equity/venture capital	—			—			—		499		499			—		66		4		480		550
Guaranteed insurance contracts	—			—			—		—		—			—		—		120		—		120
Other⁽²⁾	(103		)	(1		)	—		18		(86		)	5		50		—		—		55
Total Fair Value of Plan Assets	$	777		$	1,279		$	17	$	733	$	2,806		$	1,799	$	2,539	$	269	$	746	$	5,353

_____________


(1)	Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.


(2)	Other Level 1 includes net non-financial (liabilities) assets of $(103) U.S. and $5 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses. In 2015, the US Plans' Other included plan liabilities of $116 related to unsettled transactions such as purchases or sales of US Treasury securities with settlement dates beyond fiscal year-end.

The following tables represents a roll-forward of the defined benefit plans assets measured at fair value using significant unobservable inputs (Level 3 assets):



	U.S.			Non-U.S.
	Real Estate			Real Estate			Private Equity/Venture Capital			Guaranteed Insurance Contracts			Total
Balance at December 31, 2014⁽¹⁾	$	22		$	147		$	4		$	128		$	279
Purchases	—			—			—			19			19
Sales	(15		)	—			—			(21		)	(21		)
Realized (losses) gains	1			—			—			6			6
Unrealized gains (losses)	9			9			1			1			11
Currency translation	—			(11		)	(1		)	(13		)	(25		)
Balance at December 31, 2015	$	17		$	145		$	4		$	120		$	269
Purchases	—			1			2			2			5
Sales	(3		)	(13		)	(1		)	(12		)	(26		)
Realized gains (losses)	—			6			—			1			7
Unrealized gains (losses)	(2		)	(5		)	(4		)	(3		)	(12		)
Currency translation	—			(13		)	5			(4		)	(12		)
Balance at December 31, 2016	$	12		$	121		$	6		$	104		$	231

_____________


(1)	Adjusted to exclude assets of $500 U.S. and $545 Non-U.S. that are measured at fair value using the NAV per share (or its equivalent) practical expedient.

Schedule of Allocation of Plan Assets

The target asset allocations for our worldwide defined benefit pension plans were:



	2016		2015
	U.S.	Non-U.S.	U.S.	Non-U.S.
Equity investments	30%	28%	34%	28%
Fixed income investments	48%	45%	43%	48%
Real estate	6%	5%	6%	6%
Private equity	8%	9%	9%	10%
Other	8%	13%	8%	8%
Total Investment Strategy	100%	100%	100%	100%

Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year

The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans.



	Year Ended December 31,
	2016		Estimated 2017
U.S. Plans	$	24	$	169
Non-U.S. Plans	154		181
Total	$	178	$	350

Retiree Health	$	61	$	63

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years:



	Pension Benefits
	U.S.		Non-U.S.		Total		Retiree Health
2017	$	852	$	210	$	1,062	$	63
2018	227		216		443		64
2019	223		222		445		62
2020	225		228		453		61
2021	296		237		533		59
Years 2022-2026	1,433		1,281		2,714		261

Schedule of Assumptions Used

Weighted-average assumptions used to determine benefit obligations at the plan measurement dates:



	Pension Benefits
	2016				2015				2014
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	4.0	%	2.5	%	4.3	%	3.3	%	3.9	%	3.1	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%



	Retiree Health
	2016		2015		2014
Discount rate	3.9	%	4.1	%	3.8	%

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:



	Pension Benefits
	2017				2016				2015				2014
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	4.0	%	2.5	%	4.3	%	3.3	%	3.9	%	3.1	%	4.8	%	4.2	%
Expected return on plan assets	7.0	%	4.1	%	7.5	%	4.8	%	7.5	%	5.2	%	7.8	%	6.1	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%	0.2	%	2.6	%



	Retiree Health
	2017		2016		2015		2014
Discount rate	3.9	%	4.1	%	3.8	%	4.5	%

_____________

Schedule of Health Care Cost Trend Rates

Assumed health care cost trend rates were as follows:



	December 31,
	2016		2015
Health care cost trend rate assumed for next year	7.2	%	7.5	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.8	%	4.9	%
Year that the rate reaches the ultimate trend rate	2026		2026

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates



	1% increase		1% decrease
Effect on total service and interest cost components	$	2	$	(2	)
Effect on post-retirement benefit obligation	53		(46		)

Income and Other Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes (pre-tax income) from continuing operations was as follows:



	Year Ended December 31,
	2016		2015		2014
Domestic income	$	415	$	613	$	635
Foreign income	153		311		455
Income Before Income Taxes	$	568	$	924	$	1,090

Schedule of Components of Income Tax Expense (Benefit)

(Benefit) provision for income taxes from continuing operations were as follows:



	Year Ended December 31,
	2016			2015			2014
Federal Income Taxes
Current	$	(15	)	$	(225	)	$	(58	)
Deferred	(4		)	300			150
Foreign Income Taxes
Current	71			73			83
Deferred	(13		)	7			(16		)
State Income Taxes
Current	15			(38		)	21
Deferred	8			76			18
Total (Benefit) Provision	$	62		$	193		$	198

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate was as follows:



	Year Ended December 31,
	2016		2015		2014
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
Nondeductible expenses	2.9	%	1.1	%	1.3	%
Effect of tax law changes	1.2	%	(1.0	)%	(5.2	)%
Change in valuation allowance for deferred tax assets	(1.4	)%	(1.6	)%	(1.4	)%
State taxes, net of federal benefit	3.0	%	2.2	%	2.0	%
Audit and other tax return adjustments	(4.1	)%	1.3	%	(3.0	)%
Tax-exempt income, credits and incentives	(4.0	)%	(1.8	)%	(1.9	)%
Foreign rate differential adjusted for U.S. taxation of foreign profits⁽¹⁾	(22.6	)%	(15.3	)%	(9.0	)%
Other	0.9	%	1.0	%	0.4	%
Effective Income Tax Rate	10.9	%	20.9	%	18.2	%

_____________


(1)	The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries.

Schedule of Allocation of Income Tax Expense Benefit

Total income tax expense (benefit) was allocated as follows:



	Year Ended December 31,
	2016			2015			2014
Pre-tax income	$	62		$	193		$	198
Discontinued operations⁽¹⁾	(250		)	(134		)	23
Common shareholders' equity:
Changes in defined benefit plans	15			59			(408		)
Stock option and incentive plans, net	—			(18		)	(18		)
Cash flow hedges	(8		)	15			—
Translation adjustments	2			—			(2		)
Total Income Tax Expense (Benefit)	$	(179	)	$	115		$	(207	)

_____________


(1)	Refer to Note 4 - Divestitures for additional information regarding discontinued operations.

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	2016			2015			2014
Balance at January 1	$	222		$	207		$	225
Additions (Reductions) related to current year	(9		)	36			12
Additions related to prior years positions	—			—			9
Reductions related to prior years positions	(31		)	(5		)	(23		)
Settlements with taxing authorities⁽¹⁾	—			(6		)	(8		)
Reductions related to lapse of statute of limitations	(2		)	(9		)	(6		)
Currency	(2		)	(1		)	(2		)
Tax Positions assumed in Conduent Separation	(13		)	—			—
Balance at December 31	$	165		$	222		$	207

_____________


(1)	Majority of settlements did not result in the utilization of cash.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred taxes were as follows:



	December 31,
	2016			2015
Deferred Tax Assets
Research and development	$	289		$	370
Post-retirement medical benefits	276			311
Net operating losses	407			367
Operating reserves, accruals and deferrals	190			171
Tax credit carryforwards	751			666
Deferred compensation	197			167
Pension	539			553
Other	81			138
Subtotal	2,730			2,743
Valuation allowance	(416		)	(383		)
Total	$	2,314		$	2,360

Deferred Tax Liabilities
Unearned income and installment sales	$	633		$	705
Intangibles and goodwill	200			208
Other	48			48
Total	$	881		$	961

Total Deferred Taxes, Net	$	1,433		$	1,399

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

Schedule of Treasury Stock by Class



Authorized share repurchase programs	$	8,000
Share repurchase cost	$	7,755
Share repurchase fees	$	12
Number of shares repurchased	695,230

Schedule of Common and Treasury Stock Changes

The following table reflects the changes in Common and Treasury stock shares (shares in thousands):



	Common Stock Shares		Treasury Stock Shares
Balance at December 31, 2013	1,210,321		22,001
Stock based compensation plans, net	13,965		—
Acquisition of Treasury stock	—		86,536
Cancellation of Treasury stock	(100,928)		(100,928)
Conversion of 2014 9% Notes	996		—
Balance at December 31, 2014	1,124,354		7,609
Stock based compensation plans, net	11,292		—
Acquisition of Treasury stock	—		115,201
Cancellation of Treasury stock	(122,810	)	(122,810	)
Balance at December 31, 2015	1,012,836		—
Stock based compensation plans, net	1,539		—
Balance at December 31, 2016	1,014,375		—

Schedule of Stock-based Compensation Expense, Tax Effect

Stock-based compensation expense was as follows:



	Year Ended December 31,
	2016		2015		2014
Stock-based compensation expense, pre-tax	$	50	$	27	$	63
Income tax benefit recognized in earnings	19		10		24

Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

Summary of Stock-based Compensation Activity



	2016				2015				2014
(shares in thousands)	Shares		Weighted Average Grant Date Fair Value⁽¹⁾		Shares		Weighted Average Grant Date Fair Value⁽¹⁾		Shares		Weighted Average Grant Date Fair Value⁽¹⁾
Restricted Stock Units
Outstanding at January 1	2,390		$	11.05	12,197		$	9.50	19,079		$	9.62
Granted	7,174		9.57		798		11.08		926		12.30
Vested	(314	)	9.62		(10,191	)	7.86		(6,934	)	10.33
Cancelled	(548	)	10.12		(414	)	9.27		(874	)	8.55
Separation of Conduent	(3,144	)	10.07		—		—		—		—
Shares granted in equity conversion	1,674		7.52		—		—		—		—
Outstanding at December 31	7,232		7.52		2,390		11.05		12,197		9.50

Performance Shares
Outstanding at January 1	23,206		$	11.67	20,721		$	11.36	8,058		$	9.15
Granted	5,284		9.35		9,470		10.68		16,967		12.28
Vested	(33	)	11.33		(3,268	)	7.90		(2,404	)	10.68
Cancelled	(4,935	)	11.84		(3,717	)	10.74		(1,900	)	11.07
Separation of Conduent	(7,894	)	11.09		—		—		—		—
Shares granted in equity conversion	4,595		8.50		—		—		—		—
Outstanding at December 31	20,223		8.50		23,206		11.67		20,721		11.36

Stock Options
Outstanding at January 1	3,119		$	6.87	6,115		$	7.00	14,199		$	6.95
Canceled/expired	(392	)	6.99		(405	)	7.43		(215	)	6.95
Exercised	(1,225	)	7.03		(2,591	)	7.09		(7,869	)	6.92
Separation of Conduent	(1,502	)	6.70		—		—		—		—
Outstanding at December 31	—		—		3,119		6.87		6,115		7.00
Exercisable at December 31	—		—		3,119		6.87		6,115		7.00

Schedule of Unrecognized Compensation Cost, Nonvested Awards

The total unrecognized compensation cost related to non-vested stock-based awards at December 31, 2016 was as follows:

Schedule of Aggregate intrinsic value restricted stock and performance shares compensation awards

The aggregate intrinsic value of outstanding RSUs and PSs awards was as follows:



Awards	December 31, 2016
Restricted Stock Units	$	48
Performance Shares	135

Schedule of Vested and exercised stock based awards total intrinsic value and tax benefit realized

The total intrinsic value and actual tax benefit realized for all vested and exercised stock-based awards was as follows:



	December 31, 2016						December 31, 2015						December 31, 2014
Awards	Total Intrinsic Value		Cash Received		Tax Benefit		Total Intrinsic Value		Cash Received		Tax Benefit		Total Intrinsic Value		Cash Received		Tax Benefit
Restricted Stock Units	$	3	$	—	$	1	$	109	$	—	$	33	$	85	$	—	$	26
Performance Shares	—		—		—		35		—		12		30		—		10
Stock Options	3		9		1		14		19		5		42		55		15

Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2016

Other Comprehensive Income [Abstract]

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Other Comprehensive Loss is comprised of the following:



	Year Ended December 31,
	2016						2015						2014
	Pre-tax			Net of Tax			Pre-tax			Net of Tax			Pre-tax			Net of Tax
Translation Adjustments Losses	$	(344	)	$	(346	)	$	(660	)	$	(660	)	$	(736	)	$	(734	)
Unrealized (Losses) Gains:
Changes in fair value of cash flow hedges gains (losses)	18			14			13			12			(20		)	(10		)
Changes in cash flow hedges reclassed to earnings⁽¹⁾	(40		)	(28		)	28			13			36			26
Other losses	(1		)	(1		)	(3		)	(2		)	(1		)	(1		)
Net Unrealized (Losses) Gains	(23		)	(15		)	38			23			15			15

Defined Benefit Plans Losses
Net actuarial/prior service losses	(118		)	(87		)	(73		)	(86		)	(1,291		)	(861		)
Prior service amortization/curtailment⁽²⁾	(10		)	(6		)	(38		)	(23		)	(46		)	(29		)
Actuarial loss amortization/settlement⁽²⁾	160			109			186			126			121			83
Fuji Xerox changes in defined benefit plans, net⁽³⁾	(93		)	(93		)	21			21			40			40
Other gains⁽⁴⁾	202			203			116			115			106			105
Changes in Defined Benefit Plans Gains (Losses)	141			126			212			153			(1,070		)	(662		)

Other Comprehensive Loss	(226		)	(235		)	(410		)	(484		)	(1,791		)	(1,381		)
Less: Other comprehensive loss attributable to noncontrolling interests	(3		)	(3		)	(1		)	(1		)	(1		)	(1		)
Other Comprehensive Loss Attributable to Xerox	$	(223	)	$	(232	)	$	(409	)	$	(483	)	$	(1,790	)	$	(1,380	)

_____________


(1)	Reclassified to Cost of sales - refer to Note 14 - Financial Instruments for additional information regarding our cash flow hedges.


(2)	Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information.


(3)	Represents our share of Fuji Xerox's benefit plan changes.


(4)	Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL.

Schedule of Accumulated Other Comprehensive Income (Loss)

AOCL is comprised of the following:



	December 31,
	2016			2015			2014
Cumulative translation adjustments	$	(2,274	)	$	(2,402	)	$	(1,743	)
Other unrealized (losses) gains, net	(13		)	1			(22		)
Benefit plans net actuarial losses and prior service credits⁽¹⁾	(2,061		)	(2,241		)	(2,394		)
Total Accumulated Other Comprehensive Loss Attributable to Xerox	$	(4,348	)	$	(4,642	)	$	(4,159	)

_____________


(1)	Includes our share of Fuji Xerox.

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted (loss) earnings per share of common stock (shares in thousands):



	Year Ended December 31,
	2016			2015			2014
Basic Earnings per Share:
Net income from continuing operations attributable to Xerox	$	616		$	848		$	1,029
Accrued dividends on preferred stock	(24		)	(24		)	(24		)
Adjusted Net Income From Continuing Operations Available to Common Shareholders	$	592		$	824		$	1,005
Net loss from discontinued operations attributable to Xerox	(1,093		)	(374		)	(16		)
Adjusted Net (Loss) Income Available to Common Shareholders	$	(501	)	$	450		$	989
Weighted-average common shares outstanding	1,013,563			1,064,526			1,154,365
Basic (Loss) Earnings per Share:
Continuing operations	$	0.58		$	0.77		$	0.87
Discontinued operations	(1.07		)	(0.35		)	(0.01		)
Basic (Loss) Earnings per Share	$	(0.49	)	$	0.42		$	0.86

Diluted Earnings per Share:
Net income from continuing operations attributable to Xerox	$	616		$	848		$	1,029
Accrued dividends on preferred stock	(24		)	(24		)	(24		)
Adjusted Net Income From Continuing Operations Available to Common Shareholders	$	592		$	824		$	1,005
Net loss from discontinued operations attributable to Xerox	(1,093		)	(374		)	(16		)
Adjusted Net (Loss) Income Available to Common Shareholders	$	(501	)	$	450		$	989
Weighted-average common shares outstanding	1,013,563			1,064,526			1,154,365
Common shares issuable with respect to:
Stock options	694			1,294			2,976
Restricted stock and performance shares	9,722			10,404			14,256
Adjusted Weighted Average Common Shares Outstanding	1,023,979			1,076,224			1,171,597

Diluted (Loss) Earnings per Share:
Continuing operations	$	0.58		$	0.77		$	0.86
Discontinued operations	(1.07		)	(0.35		)	(0.02		)
Diluted (Loss) Earnings per Share	$	(0.49	)	$	0.42		$	0.84

The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive (shares in thousands):
Stock Options	808			1,825			3,139
Restricted stock and performance shares	21,721			17,607			17,987
Convertible preferred stock	26,966			26,966			26,966
Total Securities	49,495			46,398			48,092

Dividends per Common Share	$	0.31		$	0.28		$	0.25

Basis of Presentation and Summary of Significant Accounting Policies (Details)

12 Months Ended

Dec. 31, 2016

USD ($)

country

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Collections on Beneficial Interests Received in sales of Accounts Receivable and Finance Receivables

$ 270,000,000

$ 305,000,000

Bundled lease arrangements, interest rate

0.25%

Number of Conduent shares distributed to Xerox Shareholders on record date | shares

25.00%

Number of Xerox shares needed for one Conduent share | shares

Revenue, Net

^[1]

$ 10,771,000,000

11,465,000,000

$ 12,679,000,000

Out-of-Period Adjustment (non-material)

16,000,000

Income tax expense

62,000,000

193,000,000

198,000,000

Provisions for restructuring and related costs

264,000,000

27,000,000

106,000,000

Provision for receivables

43,000,000

54,000,000

50,000,000

Provisions for obsolete and excess inventory

28,000,000

30,000,000

26,000,000

Provision for product warranty liability

15,000,000

22,000,000

25,000,000

Depreciation and obsolescence of equipment on operating leases

276,000,000

286,000,000

297,000,000

Depreciation of buildings and equipment

148,000,000

151,000,000

179,000,000

Amortization of internal use software

73,000,000

83,000,000

88,000,000

Amortization of product software

4,000,000

Amortization of acquired intangible assets

58,000,000

60,000,000

65,000,000

Amortization of customer contract costs

4,000,000

6,000,000

Defined pension benefits - net periodic benefit cost

127,000,000

141,000,000

74,000,000

Retiree health benefits - net periodic benefit cost

35,000,000

2,000,000

3,000,000

Sustaining engineering costs

$ 95,000,000

126,000,000

$ 132,000,000

Number of Countries in which Entity Operates | country

160

Restricted Cash and Cash Equivalents

$ 179,000,000

156,000,000

Operating Leases, Future Minimum Payments Due

450,000,000

Accounts Receivable, Net, Current

1,256,000,000

1,315,000,000

961,000,000

1,068,000,000

Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member]

Deferred Finance Costs, Net

$ 29,000,000

Minimum [Member]

20.00%

Maximum [Member]

Line of Credit [Member] | Other Noncurrent Assets [Member] | Accounting Standards Update 2015-03 [Member]

50.00%

Deferred Finance Costs, Net

$ 4,000,000

BPO [Member]

Discontinued Operation, percentage of business divested

100.00%

Accounts Receivable [Member]

Invoiced

$ 651,000,000

741,000,000

Allowance for Doubtful Accounts Receivable, Current

374,000,000

401,000,000

$ 64,000,000

$ 74,000,000

[1]	(1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM).

Segment Reporting - Segment Revenue and Segment Profit (Loss) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Incremental Corporate costs, transferred to Conduent upon Separation

$ 80

^[1]

10,446

$ 11,119

$ 12,292

^[1]

325

346

387

Depreciation and Amortization, excluding Amortization of Acquired Intangible Assets

^[1]

10,771

11,465

12,679

^[1],[2]

505

530

574

^[1],[3]

309

346

366

^[1]

1,147

1,274

1,510

Services Segment [Member]

^[1]

121

135

160

^[1]

3,438

3,485

3,658

^[1]

Depreciation and Amortization, excluding Amortization of Acquired Intangible Assets

3,505

^[1]

3,557

3,723

^[1],[2]

218

222

225

^[1]

^[1]

469

458

443

Document Technology [Member]

^[1]

^[1]

6,458

7,098

8,044

^[1]

251

267

314

Depreciation and Amortization, excluding Amortization of Acquired Intangible Assets

^[1]

6,709

7,365

8,358

^[1],[2]

274

297

334

^[1]

108

109

121

^[1]

901

1,041

1,285

^[1]

108

128

Other [Member]

^[1]

550

536

590

^[1]

Depreciation and Amortization, excluding Amortization of Acquired Intangible Assets

^[1]

557

543

598

^[1],[2]

^[1]

182

217

227

^[1]

(223)

(225)

(218)

^[1]

$ 0

[1]	(1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM).
[2]	Depreciation and amortization excludes amortization of intangible assets - see reconciliation below.
[3]	Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of (Loss) Income.

Segment Reporting - Reconciliation Of Operating Profit (Loss) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Reconciling items:

Amortization of intangible assets

^[1]

$ 1,147

$ 1,274

$ 1,510

(58)

(60)

(65)

Restructuring and related costs

^[1]

(121)

(135)

(160)

(264)

(27)

(106)

Restructuring charges of Fuji Xerox

(3)

(4)

(3)

Pre-tax Income

568

924

1,090

Business transformation costs

^[2]

(2)

(8)

(7)

Non-service pension cost

^[3]

$ (131)

$ (116)

$ (79)

[1]	(1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM).
[2]	Business transformation costs represent incremental costs incurred directly in support of our business transformation and restructuring initiatives such as compensation costs for overlapping staff, consulting costs and training costs.
[3]	Represents the non-service elements of our defined-benefit pension and retiree-health plan costs. Refer to Note 16 - Employee Benefit Plans for details regarding these elements.

Segment Reporting - Revenue and Long-lived Assets by Geography (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

^[1]

$ 10,771

$ 11,465

$ 12,679

^[2]

1,361

1,484

United States

6,403

6,734

7,184

^[2]

824

886

Europe

2,861

3,155

3,649

^[2]

359

435

Other areas

1,507

1,576

$ 1,846

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

^[2]

$ 178

$ 163

[1]	(1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM).
[2]	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,

Acquisitions (Details) $ in Millions	12 Months Ended
Acquisitions (Details) $ in Millions	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($) business	Dec. 31, 2014 USD ($) business
Schedule of Business Acquisitions, by Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 30	$ 13	$ 34
Business Combination, Acquisition of 100 Percent of acquired company	100.00%	100.00%	100.00%
Revenue of Acquiree since Acquisition Date, Actual	$ 14
Goodwill, Expected Tax Deductible Percentage	100.00%
Accounts/finance receivables	$ 2
Goodwill	19
Other assets	3
Total Assets Acquired	34
Liabilities assumed	4
Global Imaging Systems, Equipment dealers [Domain]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	30
Equipment Dealer, Southern U.S. [Domain]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired			$ 22
Prior year acquisitions [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Revenue of Acquiree since Acquisition Date, Actual	10	$ 3
Acquisitions made current year minus two years [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Revenue of Acquiree since Acquisition Date, Actual	$ 32	30	2
Document Technology [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired		$ 13	$ 12
Number of Businesses Acquired (in businesses) \| business		2	1
Customer relationships [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset	10 years
Intangible assets:	$ 7
Trademarks [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset	20 years
Intangible assets:	$ 2
Non-compete agreements [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset	4 years
Intangible assets:	$ 1

Divestitures (Details)
$ in Millions

1 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2015

USD ($)

Sep. 30, 2015

USD ($)

Jan. 31, 2015

USD ($)

Sep. 30, 2014

USD ($)

May 31, 2014

USD ($)

Jan. 31, 2014

USD ($)

Dec. 31, 2016

USD ($)

country

Mar. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Jun. 30, 2015

USD ($)

Dec. 31, 2014

USD ($)

Sep. 30, 2014

USD ($)

Jun. 30, 2016

country

Employees

Dec. 31, 2016

USD ($)

country

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Jan. 01, 2017

USD ($)

Mar. 04, 2016

USD ($)

Separation costs

$ 159

Transition services, Xerox to Conduent, number of years post separation

1 year

Disposal Group, Including Discontinued Operations, Net Assets

$ 3,445

Cash Distribution, Conduent to Xerox - prior to distribution date

$ 1,800

Payments to Acquire Businesses, Net of Cash Acquired

$ 13

$ 34

Proceeds from sale of businesses

$ 0

Number of Countries in which Entity Operates | country

160

$ 0

101

182

6,355

7,223

8,250

Costs and Expenses

10,203

10,541

11,589

(1,343)

(407)

189

Income tax benefit (expense) - discontinued operations

(1,343)

(508)

^[1]

250

134

(23)

Disposal Group, Including Discontinued Operation, Assets, Noncurrent

(1,093)

(374)

(16)

Due from Conduent

$ 127

$ 0

127

7,185

Total Assets of Discontinued Operations

1,002

1,618

1,002

1,618

1,002

1,627

1,002

1,627

Depreciation of buildings and equipment

1,122

126

145

Amortization of internal use software

Disposal group, amortization of product software

Amortization of acquired intangible assets

280

250

Amortization of customer contract costs

108

122

Operating lease rent expense

378

385

Disposal Group, Including Discontinued Operation, Interest Expense

^[2]

Asset impairments

Cost of additions to land, buildings, and equipment

400

150

126

144

Cost of additions to internal use software

Disposal Group, Including Discontinued Operation, Adjustment related to Preferred Stock

142

Disposal Group, Including Discontinued Operations, Adjustment related to Retained Earnings

3,829

Disposal Group, Including Discontinued Operations, Adjustment related to Accumulated Other Comprehensive Loss

526

BPO [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Proceeds from Issuance Initial Public Offering

2,000

Proceeds from Debt, Net of Issuance Costs

1,900

RSA Medical LLC [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Payments to Acquire Businesses, Net of Cash Acquired

$ 141

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Sep. 30, 2015

ITO [Member]

Proceeds from sale of businesses

$ 940

Proceeds from Divestiture of Businesses, Net of Cash Divested

$ 930

Capital lease obligations and pension liabilities

Discontinued Operations Restructuring, Number of Employees | Employees

9,600

Number of Countries in which Entity Operates | country

Discontinue Operations, Additional Tax Expense

$ 101

(101)

181

$ 44

Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax

(160)

Payment/adjustment to sales price

$ 28

619

1,320

104

Income tax benefit (expense) - discontinued operations

(107)

(81)

(5)

Additional Pre-tax loss on disposal and adjustment to final sales price

$ 52

Xerox Audio Visual Solutions, Inc. [Member]

(78)

(112)

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Truckload Management Services [Member]

$ 1

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Proceeds from sale of businesses

$ 15

All Other Discontinued Operations [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

(1)

(1)

Income tax benefit (expense) - discontinued operations

(2)

(1)

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

(3)

Conduent [Domain]

Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents

390

140

390

140

Disposal Group, Including Discontinued Operation, Operating Expense

6,355

6,604

6,885

5,456

5,923

5,749

Disposal Group, Including Discontinued Operation, Other Expense

2,065

^[3]

1,192

1,020

Costs and Expenses

7,521

7,115

6,769

(1,343)

(511)

116

Income tax benefit (expense) - discontinued operations

(1,343)

(511)

116

250

215

(17)

Land, buildings and equipment, net

(1,093)

(296)

Accounts receivable, net

1,287

1,251

1,287

1,251

Due from Conduent

239

227

239

227

283

279

283

279

Intangible assets, net

1,144

1,425

1,144

1,425

Goodwill

3,889

4,872

3,889

4,872

Disposal Group, Including Discontinued Operation, Assets, Noncurrent

477

609

477

609

5,793

7,185

5,793

7,185

Disposal Group, Including Discontinued Operation, Assets

7,709

8,803

7,709

8,803

Total Assets of Discontinued Operations

1,916

1,618

1,916

1,618

Current portion of long-term debt

Accounts payable

159

272

159

272

Accrued pension and benefit costs

284

245

284

245

Unearned income

208

226

208

226

Other current liabilities

742

861

742

861

1,421

1,627

1,421

1,627

2,843

1,122

2,843

1,122

Other long-term liabilities

173

153

173

153

757

932

757

932

Total Liabilities of Discontinued Operations

4,264

2,749

4,264

2,749

Depreciation of buildings and equipment

130

Disposal group, amortization of product software

$ 58

Amortization of customer contract costs

Operating lease rent expense

389

Asset impairments

935

^[4]

$ 0

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Intellinex LLC [Member]

Payments to Acquire Businesses, Net of Cash Acquired

$ 28

Consilience Software, Inc. [Member]

Jan. 31, 2015

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Payments to Acquire Businesses, Net of Cash Acquired

$ 25

ISG Holdings, Inc. [Member]

Sep. 30, 2014

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Payments to Acquire Businesses, Net of Cash Acquired

$ 225

Invoco Holding GmbH [Member]

May 31, 2014

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Payments to Acquire Businesses, Net of Cash Acquired

$ 54

Senior Debt Obligations [Member]

Jan. 31, 2014

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Unsecured Debt

$ 1,000

Long-term Debt [Member] | Conduent [Domain]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Conduent cash paid to Xerox, for Xerox debt repayment [Member]

1,913

$ 37

$ 1,913

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Cash Distribution, Conduent to Xerox - prior to distribution date

$ 1,000

Balance due at closing [Member] | ITO [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Accounts, Notes, Loans and Financing Receivable [Line Items]

$ 24

[1]	Refer to Note 4 - Divestitures for additional information regarding discontinued operations.
[2]	Represents interest on Conduent third-party borrowings only that were transferred to Conduent as part of the Distribution. 2016 amount excludes $18 of interest associated with the $1.0 billion Senior Unsecured Term Facility noted above. No additional interest expense was allocated to discontinued operations for the three years ended December 31, 2016.
[3]	2016 amount excludes $159 of Separation related costs and $18 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation, and therefore was also reported in the loss from discontinued operations.
[4]	Prior to the Separation and Distribution of Conduent, in connection with the annual goodwill impairment test, a pre-tax goodwill impairment charge was recorded in the fourth quarter 2016 associated with the Commercial Services reporting unit of the BPO business.

Accounts Receivable, Net (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2012

Deferred Proceeds Receivable From Sales Of Accounts Receivable

$ 1,256

$ 1,315

Accounts receivable, net

961

1,068

Accounts receivable sold, derecognized and uncollected at balance sheet date

531

524

Accounts receivable sales

2,267

2,142

$ 2,563

Deferred proceeds

233

247

387

Loss on sale of accounts receivable

Estimated increase (decrease) to operating cash flows

(156)

(286)

(433)

$ 877

Accounts Receivable [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Invoiced

651

741

Allowance for doubtful accounts

374

401

(64)

(74)

Estimated increase (decrease) to operating cash flows

^[1]

$ 30

$ 62

$ (64)

[1]	Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency.

Finance Receivables, Net (Details) - USD ($)
$ in Millions

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Allowance for doubtful accounts

Gross receivables

$ 4,380

$ 4,683

Unearned income

(526)

(577)

Subtotal

3,854

4,106

^[1]

Residual values

(110)

(118)

$ (131)

Finance Receivables, Net

3,744

3,988

Less: Billed portion of finance receivables, net

Less: Current portion of finance receivables not billed, net

1,256

1,315

Finance Receivables Due After One Year, Net

2,398

2,576

Billed Contracts Receivable

Finance receivables contractual maturity, current

1,628

Finance receivables contractual maturity, in two years

1,225

Finance receivables contractual maturities, in three years

855

Finance receivables contractual maturities, in four years

485

Finance receivables contractual maturities, in five years

175

Finance receivables contractual maturities, thereafter

Total contractual maturities

$ 4,380

$ 4,683

[1]	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.

Finance Receivables, Net - Sales of Finance Receivables (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Net carrying value (NCV) sold

$ 676

$ 682

Allowance included in NCV

Cash proceeds received

635

630

Beneficial interests received

$ 86

101

Finance Receivables Sold and Derecognized

$ 76

$ 238

Finance receivables sold and derecognized sales value

256

Net cash received from sales of finance receivables net of beneficial interest, fees and expenses

^[1]

$ 0

1,256

Impact from prior sales of finance receivables

^[2]

(186)

(342)

(527)

(437)

Collections on beneficial interest

Estimated (Decrease) Increase to Operating Cash Flows

(156)

(286)

(433)

877

Financing Receivable, Allowance for Credit Losses, Write-downs

Document Technology [Member]

Beneficial interests received

$ 24

Finance Receivable Beneficial Interest Weighted Average Life

2 years

Document Technology [Member] | Other Current Assets [Member]

Beneficial interest from sale of finance receivables held by bankruptcy remote subsidiaries

$ 13

Financing Receivable [Member]

Collections on beneficial interest

$ 30

$ 56

$ 94

$ 58

[1]	Net of beneficial interest, fees and expenses.
[2]	Represents cash that would have been collected if we had not sold finance receivables.

Finance Receivables, Net - Allowance for Credit Losses (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Financing Receivable, Allowance for Credit Losses [Line Items]

Finance receivables lease portfolio -low - years

2 years

Finance lease portfolio average maturity - high - years

3 years

Financing Receivable, Allowance for Credit Losses [Roll Forward]

$ 118

$ 131

(35)

(36)

^[1]

(5)

Financing Receivable, Collectively Evaluated for Impairment

110

118

^[2]

3,854

4,106

Allowance for credit losses not included in the impairment evaluation

110

118

United States

Financing Receivable, Allowance for Credit Losses [Roll Forward]

^[3]

^[3]

^[3]

(12)

(8)

^[1],[3]

Financing Receivable, Collectively Evaluated for Impairment

^[3]

^[2]

2,138

2,174

Canada

Financing Receivable, Allowance for Credit Losses [Roll Forward]

(8)

(10)

^[1]

Financing Receivable, Collectively Evaluated for Impairment

^[2]

378

365

Europe

Financing Receivable, Allowance for Credit Losses [Roll Forward]

(15)

(17)

^[1]

(4)

(6)

Financing Receivable, Collectively Evaluated for Impairment

^[2]

1,286

1,509

Financing Receivable, Allowance for Credit Losses [Roll Forward]

^[3],[4]

^[3],[4]

^[3],[4]

(1)

^[1],[3],[4]

Financing Receivable, Collectively Evaluated for Impairment

^[3],[4]

^[2],[4]

$ 52

$ 58

[1]	Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.
[2]	Total Finance receivables exclude the allowance for credit losses of $110 and $118 at December 31, 2016 and 2015, respectively.
[3]	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.
[4]	Includes developing market countries and smaller units.

Inventories and Equipment on Operating Leases, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Inventories, net [Abstract]
Finished goods	$ 713	$ 751
Work-in-process	47	51
Raw materials	81	99
Total Inventories	841	901
Inventories and Equipment on Operating Lease, Net [Abstract]
Equipment on operating leases	1,468	1,478
Accumulated depreciation	(993)	(983)
Equipment on Operating Leases, Net	475	495
Property Subject to or Available for Operating Lease [Line Items]
Operating Leases, Income Statement, Contingent Revenue	132	$ 139	$ 149
Operating Leases, Future Minimum Payments Receivable [Abstract]
2017	319
2018	221
2019	142
2020	76
2021	26
Thereafter	$ 3
Minimum [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property, plant and equipment depreciable lives	3 years
Equipment on operating lease length of lease (years)	1 year
Maximum [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property, plant and equipment depreciable lives	4 years
Equipment on operating lease length of lease (years)	3 years

Land, Buildings, Equipment and Software, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	$ 3,135	$ 3,249
Accumulated depreciation	(2,475)	(2,532)
Land, Buildings and Equipment, Net	660	717
Land [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	20	21
Building and building equipment [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	911	919
Leasehold Improvements [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	219	244
Plant machinery [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	1,225	1,274
Office furniture and equipment [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	657	700
Other [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	70	63
Construction in progress [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	$ 33	$ 28
Minimum [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Minimum [Member] \| Building and building equipment [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	25 years
Minimum [Member] \| Plant machinery [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member] \| Office furniture and equipment [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Minimum [Member] \| Other [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	4 years
Maximum [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	4 years
Maximum [Member] \| Building and building equipment [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	50 years
Maximum [Member] \| Plant machinery [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	12 years
Maximum [Member] \| Office furniture and equipment [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Maximum [Member] \| Other [Member]
Property, Plant, Equipment and Software [Line Items]
Property, Plant and Equipment, Useful Life	20 years

Land, Buildings, Equipment and Software, Net - Depreciation Expense, Operating Lease Rent Expense, Minimum Operating Lease Commitments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 148	$ 151	$ 179
Operating lease rent expense	157	164	$ 175
Capital Leased Assets, Gross	31	$ 39
Continuing Operations [Member]
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2017	124
2018	94
2019	72
2020	53
2021	40
Thereafter	$ 71

Land, Buildings, Equipment and Software, Net - Internal Use Software (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Land, Buildings, Equipment and Softward [Abstract]
Internal use software	$ 45	$ 64	$ 57
Internal use software	$ 218	$ 264
Internal Use and Product Software, Useful Lives Minimum	3 years
Internal Use and Product Software, Useful Lives Maximum	7 years

Investment in Affiliates, at Equity (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Schedule of Equity Method Investments [Line Items]

Investments in Affiliates, at Equity

$ 1,388

$ 1,382

Total Equity in Net Income of Unconsolidated Affiliates

^[1]

$ 121

135

$ 160

Implied Investment in Affiliates - Fuji Xerox

25.00%

$ 1,406

Fuji Xerox [Member]

Schedule of Equity Method Investments [Line Items]

Investments in Affiliates, at Equity

1,313

1,315

Total Equity in Net Income of Unconsolidated Affiliates

108

117

147

Other [Member]

Schedule of Equity Method Investments [Line Items]

Investments in Affiliates, at Equity

Total Equity in Net Income of Unconsolidated Affiliates

$ 13

$ 18

$ 13

[1]	(1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM).

Investment in Affiliates, at Equity - Condensed Financial Data for Fuji Xerox Unconsolidated Affiliate (Details) - Fuji Xerox [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of Operations
Revenues	$ 10,161	$ 9,925	$ 11,112
Costs and expenses	9,486	9,198	10,242
Income before income taxes	675	727	870
Income tax expense	217	233	262
Net Income	458	494	608
Less: Net income - noncontrolling interests	7	7	4
Net Income - Fuji Xerox	451	487	604
Assets:
Current assets	4,464	4,585	4,801
Long-term assets	4,734	4,946	4,742
Total Assets	9,198	9,531	9,543
Liabilities and Equity:
Current liabilities	2,679	2,808	2,982
Long-term debt	283	584	580
Other long-term liabilities	583	511	482
Noncontrolling interests	31	31	30
Fuji Xerox shareholders' equity	5,622	5,597	5,469
Total Liabilities and Equity	$ 9,198	$ 9,531	$ 9,543

Investment in Affiliates, at Equity - Investment in Affiliate Exchange Rates (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Equity Method Investments and Joint Ventures [Abstract]
Summary of operations, weighted average rate	108.68	121.01	105.58
Balance sheet, year-end rate	116.53	120.49	119.46

Investment in Affiliates, at Equity - Other Transactions with Fuji Xerox (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Dividends received from Fuji Xerox	$ 47	$ 51	$ 58
Royalty revenue earned	107	102	115
Inventory purchases from Fuji Xerox	1,641	1,728	1,831
Inventory sales to Fuji Xerox	80	108	120
R&D payments received from Fuji Xerox	1	1	1
R&D payments paid to Fuji Xerox	13	7	$ 17
Fuji Xerox [Member]
Schedule of Equity Method Investments [Line Items]
Net amounts due to Fuji Xerox	$ 273	$ 307

Goodwill and Intangible Assets, Net - Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Roll Forward]
Beginning Balance, Goodwill	$ 3,951	$ 4,021
Foreign currency translation	(183)	(76)
Goodwill acquired during period	19
Ending Balance, Goodwill	3,787	3,951
Services Segment [Member]
Goodwill [Roll Forward]
Beginning Balance, Goodwill	1,630	1,668
Foreign currency translation	(90)	(38)
Ending Balance, Goodwill	1,540	1,630
Document Technology Segment [Member]
Goodwill [Roll Forward]
Beginning Balance, Goodwill	2,321	2,353
Foreign currency translation	(93)	(38)
Ending Balance, Goodwill	2,247	2,321
Imagetek Office Systems [Member]
Goodwill [Roll Forward]
Goodwill acquired during period	10
Imagetek Office Systems [Member] \| Services Segment [Member]
Goodwill [Roll Forward]
Goodwill acquired during period	0
Imagetek Office Systems [Member] \| Document Technology Segment [Member]
Goodwill [Roll Forward]
Goodwill acquired during period	10
Other Immaterial Acquisitions [Member]
Goodwill [Roll Forward]
Goodwill acquired during period	9	6
Other Immaterial Acquisitions [Member] \| Services Segment [Member]
Goodwill [Roll Forward]
Goodwill acquired during period	0	0
Other Immaterial Acquisitions [Member] \| Document Technology Segment [Member]
Goodwill [Roll Forward]
Goodwill acquired during period	$ 9	$ 6

Goodwill and Intangible Assets, Net - Intangible Assets by Major Class (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 896	$ 899
Accumulated Amortization	606	559
Net Amount	290	340
Amortization of Intangible Assets	58	60	$ 65
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2017	58
2018	57
2019	39
2020	18
2021	$ 18
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Useful Life	13 years
Gross Carrying Amount	$ 508	509
Accumulated Amortization	410	378
Net Amount	$ 98	131
Distribution network [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Useful Life	25 years
Gross Carrying Amount	$ 123	123
Accumulated Amortization	84	79
Net Amount	$ 39	44
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Useful Life	20 years
Gross Carrying Amount	$ 250	248
Accumulated Amortization	107	95
Net Amount	$ 143	153
Technology, patents and non-compete
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Useful Life	13 years
Gross Carrying Amount	$ 15	19
Accumulated Amortization	5	7
Net Amount	10	$ 12
Services Segment [Member]
Finite-Lived Intangible Assets [Line Items]
Net Amount	43
Document Technology Segment [Member]
Finite-Lived Intangible Assets [Line Items]
Net Amount	$ 247

Restructuring and Asset Impairment Charges (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Restructuring Cost and Reserve [Line Items]

Three-year strategic cost transformation program

3 years

$ 19

$ 84

$ 99

252

123

(22)

(17)

230

^[1]

106

^[1]

106

(122)

(92)

(121)

Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract]

127

Asset impairments

Effects of foreign currency and other non-cash items

Restructuring Cash Payments

(118)

(79)

(110)

Services Segment [Member]

Document Technology Segment [Member]

All Other Segments [Member]

208

Employee Severance [Member]

(3)

224

115

(16)

^[1]

208

(122)

(84)

(112)

Lease Cancellation and Other Costs [Member]

104

(1)

^[1]

(5)

(1)

(5)

Asset Impairments [Member]

^[2]

^[2]

^[2]

(5)

(1)

^[1],[2]

(5)

^[2]

(7)

(4)

^[2]

$ 0

[1]	Represents net amount recognized within the Consolidated Statements of (Loss) Income for the years shown for restructuring and asset impairments charges.
[2]	Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision.

Supplementary Financial Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Other Current Assets
Income taxes receivable	$ 50	$ 12
Royalties, license fees and software maintenance	21	34
Restricted cash	92	84
Prepaid expenses	45	51
Derivative instruments	88	55
Deferred purchase price from sales of accounts receivables	48	61
Beneficial interests - sales of finance receivables	8	8
Advances and deposits	15	25
Other	125	128
Due from Conduent	127	0
Total Other Current Assets	619	458
Other Current Liabilities
Income taxes payable	45	28
Other taxes payable	78	76
Other taxes payable	(32)
Interest payable	55	73
Restructuring reserves	121	18
Derivative instruments	39	11
Product warranties	7	8
Dividends payable	91	85
Distributor and reseller rebates/commissions	120	106
Servicer liabilities	62	83
Other	290	227
Total Other Current Liabilities	908	715
Other Long-term Assets
Deferred taxes	1,475	1,450
Income taxes receivable	14	9
Prepaid pension costs	17	22
Net investment in TRG	126	142
Internal use software, net	218	264
Product software, net	8	8
Restricted cash	87	72
Debt issuance costs, net	3	4
Customer contract costs, net	7	13
Beneficial interest - sales of finance receivables	16	30
Deferred compensation plan investments	15	13
Other	165	176
Total Other Long-term Assets	2,155	2,210
Other Long-term Liabilities
Deferred taxes	42	51
Income taxes payable	16	49
Environmental reserves	9	11
Restructuring reserves	6	1
Other	120	126
Total Other Long-term Liabilities	193	238
Tax and labor litigation deposits in Brazil	85	71
Escrow and cash collections related to receivable sales	62	83
Other restricted cash	32	2
Total Restricted Cash	179	156
Cash adjustment	161
Net investment in discontinued operations TRG	140
Discontinued operations TRG	14
Other	(2)
Disposal Group, Including Discontinued Operation, Cash	225
Other Noncurrent Assets [Member] \| Designated as Hedging Instrument [Member] \| Interest Rate Swap [Member]
Other Long-term Assets
Derivative instruments	$ 4	$ 7

Debt - Short-term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Commercial paper	$ 0
Notes Payable	4	$ 3
Current maturities of long-term debt	1,007	959
Total Short-term Debt	$ 1,011	$ 962

Debt - Long-term Debt (Details) - USD ($)
$ in Millions

Jan. 01, 2017

Dec. 31, 2016

Apr. 01, 2016

Mar. 15, 2016

Mar. 04, 2016

Dec. 31, 2015

Dec. 31, 2014

Debt Issuance Cost, Gross, Noncurrent

$ 6,345

$ 7,303

Unamortized discount

(43)

(52)

(21)

(29)

Fair value adjustments

^[1]

Interest Rate Derivatives, at Fair Value, Net

^[1]

Less: current maturities

(1,007)

(959)

Total Long-term Debt

5,305

$ 6,317

Long-term debt from continuing operations, maturities, repayments of principal debt in next twelve months

^[2]

1,007

Long-term Debt from Continuing Operations, Maturities, Repayments of Principal Debt in Year Two

1,008

Long-term Debt from Continuing Operations, Maturities, Repayments of Principal in Year Three

1,156

Long-term Debt from Continuing Operations, Maturities, Repayments of Principal in Year Four

1,207

Long-term Debt from Continuing Operations, Maturities, Repayments of Principal in Year Five

1,067

Long-term Debt from Continuing Operations, Maturities, Repayments of Principal after Year Five

900

Long-term Debt from Continuing Operations, Gross

6,345

Long-term Debt Maturities, Current Year by Quarter, First

1,001

Long-term Debt Maturities, Subsequent Year by Quarter, Second

Long-term Debt Maturities, Current Year by Quarter, Third

Long-term Debt Maturities, Current Year by Quarter, Fourth

$ 2

Senior Notes due 2016 and Notes due 2016 [Member]

9.00%

Capital Lease Obligations [Member]

$ 950

^[3]

9.44%

$ 31

$ 39

Senior Notes due 2016

$ 700

700

Notes due 2016

$ 0

$ 250

250

Senior Notes due 2017

^[3]

6.83%

^[4]

$ 500

500

Senior Notes due 2017 (1)

6.75%

^[3]

2.98%

^[4]

$ 500

500

2.95%

Notes due 2018

^[3]

0.57%

$ 1

0.57%

Senior Notes due 2018

^[3]

6.37%

$ 1,000

1,000

Senior Notes due 2019 2.77%

6.35%

^[3]

2.77%

$ 500

500

2.75%

Senior Notes due 2019

^[3]

5.66%

$ 650

650

Senior Notes due 2020 2.81% [Member]

5.63%

^[3]

2.81%

$ 400

400

Senior Notes due 2020 3.7% [Member] [Member]

2.80%

^[3]

3.70%

$ 400

400

Senior Notes due 2020 2.77% [Member]

3.50%

^[3]

2.77%

$ 400

400

2.75%

Senior Notes due 2021

^[3]

5.39%

$ 1,062

1,062

Senior Notes due 2024 3.84% [Member]

4.50%

^[3]

3.84%

$ 300

300

Senior Notes due 2035 4.84% [Member]

3.80%

^[3]

4.84%

$ 250

250

4.80%

Senior Notes due 2039

^[3]

6.78%

$ 350

350

Subtotal - Xerox Corporation

6.75%

$ 6,313

7,263

^[3]

0.34%

Subtotal subsidiary companies

$ 1

Senior Notes due 2016 6.40% [Member]

$ 32

$ 40

Notes due 2016 7.20% [Member]

6.40%

Senior Debt Obligations [Member]

7.20%

Interest rate - Libor plus 1.50% [Member] | Senior Debt Obligations [Member]

Unsecured Debt

$ 1,000

Minimum [Member] | Interest rate - Libor plus 1.50% [Member] | Senior Debt Obligations [Member]

1.50%

Maximum [Member] | Interest rate - Libor plus 1.50% [Member] | Senior Debt Obligations [Member]

1.95%

Schedule of interest paid on debt from continuing and discontinued operations [Line Items]

2.16%

[1]	Fair value adjustments include the following: (i) fair value adjustments to debt associated with terminated interest rate swaps, which are being amortized to interest expense over the remaining term of the related notes; and (ii) changes in fair value of hedged debt obligations attributable to movements in benchmark interest rates. Hedge accounting requires hedged debt instruments to be reported inclusive of any fair value adjustment.
[2]	Quarterly long-term debt maturities from continuing operations for 2017 are $1,001, $2, $2 and $2 for the first, second, third and fourth quarters, respectively.
[3]	Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt.
[4]	Senior Notes maturing in 2017 expected to be paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 4 - Divestitures for additional information.

Debt - Commercial Paper and Credit Facility (Details)	12 Months Ended
Debt - Commercial Paper and Credit Facility (Details)	Dec. 31, 2016 USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Fair Value of Amount Outstanding	$ 0
Commercial Paper and Credit Facility Maximum Borrowing Capacity	2,000,000,000.0
Commercial paper	0
Line of Credit Facility, Current Borrowing Capacity	2,000,000,000
Letter of credit sub-facility	300,000,000
Description of Guarantees Given by Subsidiaries	$ 100,000,000
credit facility annual facility fee - low	0.10%
credit facility annual facility fee - high	0.30%
credit facility annual facility fee based on current credit rating	0.20%
Commercial Paper [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,000,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,750,000,000.00
Credit Facility All-in Interest Rate, Low	0.00%
Credit Facility All-in Interest Rate, High	0.45%
LIBOR Plus All-in Spread, Low	0.90%
LIBOR All-in Spread, High	1.45%
Base rate at current year end	0.30%
LIBOR borrowing at current year end	1.30%
Credit Facility Leverage Terms	3.75
Credit Facility, Minimum Interest Coverage Ratio	3.00
Commercial Paper [Member]
Line of Credit Facility [Line Items]
Short-term Debt, Commercial Paper Maximum Maturity Days	390 days

Debt - Interest Income/Expense (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Interest Paid

$ 352

$ 365

$ 400

Interest Paid, Discontinued Operations

Interest Expense, Debt

400

Interest Expense

^[1],[2]

309

346

366

Interest Income

^[3]

330

352

396

Continuing Operations [Member]

Schedule of interest paid on debt from continuing and discontinued operations [Line Items]

Interest Paid

$ 332

$ 356

$ 387

[1]	(1)Asset information on a segment basis is not disclosed as this information is not separately identified and internally reported to our Chief Operating Decision Maker (CODM).
[2]	Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of (Loss) Income.
[3]	Includes Finance income, as well as other interest income that is included in Other expenses, net in the Consolidated Statements of (Loss)Income.

Financial Instruments - Terminated Swaps (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Amortization of fair value adjustments for terminated swaps	$ 19	$ 22	$ 31
Expected net decrease to interest expense in future years through 2018	$ 27

Financial Instruments - Fair Value Hedges (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Senior Notes due 2021
Derivative [Line Items]
Derivative Liability, Notional Amount	$ 300	$ 300
Derivative Liability, Fair Value, Gross Asset	$ 4	$ 7
Debt Instrument, Interest Rate, Effective Percentage	4.50%
Senior Notes Due 2021 4.5% [Member] [Member]
Derivative [Line Items]
Debt, Weighted Average Interest Rate	2.60%

Financial Instruments - Foreign Exchange Risk Management (Details)
$ in Millions

Dec. 31, 2016

USD ($)

Foreign Exchange Contracts [Line Items]

Average Maturity of Foreign Exchange Hedging Contracts - within Three Months

85.00%

Average Maturity of Foreign Exchange Hedging Contracts - within Three and Six Months

11.00%

Average Maturity of Foreign Exchange Hedging Contracts - within Six and Twelve Months

4.00%

Summary of Foreign Exchange Hedging Positions [Abstract]

Summary of Foreign Exchange Hedging Positions [Abstract]

$ 3,149

Euro/U.K. Pound Sterling

Summary of Foreign Exchange Hedging Positions [Abstract]

1,321

Japanese Yen/U.S. Dollar

U.S. Dollar/U.K. Pound Sterling

389

Summary of Foreign Exchange Hedging Positions [Abstract]

Summary of Foreign Exchange Hedging Positions [Abstract]

268

Japanese Yen/Euro

Summary of Foreign Exchange Hedging Positions [Abstract]

261

U.S. Dollar/Euro

Canadian Dollar/U.K. Pound Sterling

210

Summary of Foreign Exchange Hedging Positions [Abstract]

Summary of Foreign Exchange Hedging Positions [Abstract]

169

Swiss Franc/Euro

Summary of Foreign Exchange Hedging Positions [Abstract]

U.K. Pound Sterling/Euro

U.K. Pound Sterling/U.S. Dollar

Summary of Foreign Exchange Hedging Positions [Abstract]

Summary of Foreign Exchange Hedging Positions [Abstract]

Euro/Japanese Yen

Summary of Foreign Exchange Hedging Positions [Abstract]

Euro/Mexican Peso

Summary of Foreign Exchange Hedging Positions [Abstract]

All Other

Foreign exchange contract [Member]

207

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Euro/U.K. Pound Sterling

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Japanese Yen/U.S. Dollar

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | U.S. Dollar/U.K. Pound Sterling

(27)

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Japanese Yen/Euro

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | U.S. Dollar/Euro

(6)

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Canadian Dollar/U.K. Pound Sterling

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Swiss Franc/Euro

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | U.K. Pound Sterling/Euro

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | U.K. Pound Sterling/U.S. Dollar

(1)

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Euro/Japanese Yen

(1)

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Euro/Mexican Peso

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | All Other

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Interest Rate Derivatives, at Fair Value, Net

$ (1)

^[1]

[1]	Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2016.

Financial Instruments - Summary of Derivative Instruments Fair Value (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets (Liabilities), at Fair Value, Net	$ 53,000,000	$ 51,000,000
Other current assets [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments	92,000,000	62,000,000
Other Liabilities [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Other current liabilities	(39,000,000)	(11,000,000)
Designated as Hedging Instrument [Member] \| Other Liabilities [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets (Liabilities), at Fair Value, Net	(16,000,000)	8,000,000
Cash Flow Hedging [Member]
Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0
Foreign exchange contracts - forwards [Member] \| Designated as Hedging Instrument [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets (Liabilities), at Fair Value, Net	(20,000,000)	1,000,000
Foreign exchange contracts - forwards [Member] \| Designated as Hedging Instrument [Member] \| Other current assets [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments	6,000,000	4,000,000
Foreign exchange contracts - forwards [Member] \| Designated as Hedging Instrument [Member] \| Other current liabilities [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Other current liabilities	(26,000,000)	(2,000,000)
Foreign exchange contracts - forwards [Member] \| Derivatives Not Designated as Hedging Instruments [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets (Liabilities), at Fair Value, Net	69,000,000	43,000,000
Foreign exchange contracts - forwards [Member] \| Derivatives Not Designated as Hedging Instruments [Member] \| Other current assets [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments	82,000,000	51,000,000
Foreign exchange contracts - forwards [Member] \| Derivatives Not Designated as Hedging Instruments [Member] \| Other current liabilities [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Other current liabilities	(13,000,000)	(8,000,000)
Options Held [Member] \| Designated as Hedging Instrument [Member] \| Other current assets [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments	0	0
Options Held [Member] \| Designated as Hedging Instrument [Member] \| Other current liabilities [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Other current liabilities	0	(1,000,000)
Interest Rate Swap [Member] \| Designated as Hedging Instrument [Member] \| Other Noncurrent Assets [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments	4,000,000	$ 7,000,000
Foreign Currency Gain (Loss) [Member] \| Cash Flow Hedging [Member]
Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 0

Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Accumulated Other Comprehensive Loss, Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	$ 13,000,000	$ (1,000,000)	$ 22,000,000
Currency (losses) gains, net	(13,000,000)	(2,000,000)	(6,000,000)
Foreign exchange contracts - forwards [Member] \| Not Designated as Hedging Instrument [Member] \| Other expense - Currency gains (losses), net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Gain (Loss) Recognized in Income	172,000,000	17,000,000	(9,000,000)
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Gain (Loss) Recognized in Income	0
Fair Value Hedging [Member] \| Interest rate contracts [Member] \| Interest expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Gain (Loss) Recognized in Income	(3,000,000)	2,000,000	5,000,000
Hedged Item Gain (Loss) Recognized in Income	3,000,000	(2,000,000)	(5,000,000)
Cash Flow Hedging [Member] \| Foreign exchange contracts - forwards [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Gain (Loss) Recognized in OCI	20,000,000	17,000,000	(20,000,000)
Cash Flow Hedging [Member] \| Foreign exchange contracts - forwards [Member] \| Cost of sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCI to Income	$ 42,000,000	$ (23,000,000)	$ (39,000,000)

Fair Value of Financial Assets and Liabilities - Recurring (Details) - USD ($)
$ in Millions

Dec. 31, 2016

Dec. 31, 2015

Assets:

^[1]

$ 4

$ 7

Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]

Assets:

Interest Rate Derivatives, at Fair Value, Net

Deferred compensation investments in mutual funds

Total

107

Liabilities:

Deferred compensation plan liabilities

Total

Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign exchange contracts - forwards [Member]

Assets:

Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Options Held [Member]

Liabilities:

Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Currency Swap [Member]

$ 0

Liabilities:

Amounts Recognized in the Consolidated Balance Sheets:

$ 1

[1]

Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 2,223	$ 1,228
Accounts receivable, net	961	1,068
Short-term debt	1,011	962
Long-term debt	5,305	6,317
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	2,223	1,228
Accounts receivable, net	961	1,068
Short-term debt	1,015	954
Long-term debt	$ 5,438	$ 6,358

Employee Benefit Plans (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

$ (2,240)

$ (2,360)

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

Benefit obligation - beginning

4,126

4,642

$ 4

^[1]

184

278

Actuarial loss (gain)

114

(223)

Plan Amendments/Curtailments

(275)

(377)

Benefit obligation - ending

4,161

4,126

4,642

Change in Plan Assets:

Actual return on plan assets

2,806

3,081

220

(70)

Employer contributions

173

(275)

(377)

(1)

2,774

2,806

3,081

Amounts Recognized in the Consolidated Balance Sheets:

^[2]

(1,387)

(1,320)

Accrued compensation and benefit costs

(24)

(23)

Post-retirement medical benefits

(1,363)

(1,297)

Net Amounts Recognized

(1,387)

(1,320)

Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]

Net actuarial loss

1,094

1,101

Total Pre-tax Loss (Gain)

(9)

(11)

1,085

1,090

4,161

4,126

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

Benefit obligation - beginning

6,308

6,962

^[1]

195

203

262

Actuarial loss (gain)

636

(94)

Plan Amendments/Curtailments

(774)

(524)

(17)

(234)

(255)

Benefit obligation - ending

(6)

(3)

6,160

6,308

6,962

Change in Plan Assets:

Actual return on plan assets

5,353

5,930

804

(20)

Employer contributions

154

128

(694)

(428)

(234)

(255)

(3)

(6)

5,384

5,353

5,930

Amounts Recognized in the Consolidated Balance Sheets:

^[2]

(776)

(955)

Accrued compensation and benefit costs

(22)

(26)

Post-retirement medical benefits

(771)

(951)

Net Amounts Recognized

(776)

(955)

Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]

Net actuarial loss

1,741

1,966

Total Pre-tax Loss (Gain)

(28)

(33)

1,713

1,933

Postretirement Health Coverage [Member]

5,931

6,068

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

Benefit obligation - beginning

855

937

^[1]

Actuarial loss (gain)

(75)

(4)

Plan Amendments/Curtailments

(25)

(31)

(62)

(77)

Benefit obligation - ending

761

855

937

Change in Plan Assets:

Actual return on plan assets

Employer contributions

(62)

(77)

$ 0

Amounts Recognized in the Consolidated Balance Sheets:

^[2]

(761)

(855)

Accrued compensation and benefit costs

(63)

(68)

Post-retirement medical benefits

(698)

(787)

Net Amounts Recognized

(761)

(855)

Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]

Net actuarial loss

112

Total Pre-tax Loss (Gain)

(29)

(34)

$ 8

$ 78

[1]	Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $296, $311 and $361 and interest expense (income) directly allocated to TRA participant accounts of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively.
[2]	Includes under-funded and un-funded plans.

Employee Benefit Plans - Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($)
$ in Millions

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

$ 9,141

$ 9,350

8,965

9,183

6,968

7,106

4,161

4,126

4,161

4,126

2,774

2,806

2,774

2,806

$ 3,081

4,161

4,126

4,642

^[1]

(1,387)

(1,320)

4,980

5,224

4,804

5,057

4,194

4,300

5,384

5,353

5,930

6,160

6,308

$ 6,962

Underfunded [Member] | United States Pension Plan of US Entity [Member]

^[1]

(776)

(955)

3,820

3,781

3,820

3,781

Underfunded [Member] | Foreign Pension Plan [Member]

2,774

2,806

4,535

4,803

4,368

4,644

Unfunded [Member] | United States Pension Plan of US Entity [Member]

4,194

4,300

341

345

341

345

341

Unfunded [Member] | Foreign Pension Plan [Member]

(341)

445

421

436

413

Funded [Member] | United States Pension Plan of US Entity [Member]

$ 0

2,774

3,820

UNITED KINGDOM | Defined Benefit Pension Plans, Defined Benefit [Member]

(1,046)

3,445

3,679

Canada | Defined Benefit Pension Plans, Defined Benefit [Member]

(234)

661

700

Pension Plans All Other Countries [Member] | Defined Benefit Pension Plans, Defined Benefit [Member]

(39)

1,278

1,781

Funded and Unfunded Plans [Member] | Foreign Pension Plan [Member]

(503)

8,158

10,321

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

$ (2,163)

[1]	Includes under-funded and un-funded plans.

Employee Benefit Plans - Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

$ (22)

$ 127

$ 141

$ 74

(118)

(73)

(1,291)

^[1]

(160)

(186)

(121)

^[1]

(10)

(38)

(46)

Interest Expense on Non-TRA Obligations

(141)

(212)

1,070

296

311

361

Interest Expense Allocated to TRA Participant Accounts

(25)

182

Expected Investment Income on Non-TRA Assets

356

388

437

Actual Investment Income on TRA Assets

(25)

182

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Expected return on plan assets

^[2]

184

278

^[3]

(190)

(79)

(287)

Recognized net actuarial loss

Defined Benefit Plan, Amortization of Prior Service Cost (Credit)

(2)

Recognized settlement loss

115

Net Periodic Benefit Cost

117

148

(74)

688

(92)

(112)

(68)

Curtailment gain

Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income

(6)

(184)

622

111

(36)

714

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Expected return on plan assets

^[2]

195

203

262

(249)

(284)

(332)

Recognized net actuarial loss

Defined Benefit Plan, Amortization of Prior Service Cost (Credit)

(3)

(1)

Recognized settlement loss

(1)

Net Periodic Benefit Cost

204

447

(16)

(6)

(66)

(71)

(54)

(4)

Curtailment gain

Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income

113

390

172

443

Postretirement Health Coverage [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Expected return on plan assets

^[2]

Recognized net actuarial loss

Defined Benefit Plan, Amortization of Prior Service Cost (Credit)

(5)

(18)

(43)

Recognized settlement loss

(22)

Net Periodic Benefit Cost

(75)

(4)

119

(32)

(2)

(1)

Curtailment gain

Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income

(72)

161

(37)

$ 5

$ 164

Benefit plans net actuarial loss [Member] | Pension Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year

(101)

Benefit plans net actuarial loss [Member] | Other Postretirement Benefit Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year

Benefit plans prior service credits [Member] | Pension Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year

Benefit plans prior service credits [Member] | Other Postretirement Benefit Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year

$ 4

[1]	Reclassified to Total Net Periodic Benefit Cost - refer to Note 16 - Employee Benefit Plans for additional information.
[2]	Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $296, $311 and $361 and interest expense (income) directly allocated to TRA participant accounts of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively.
[3]	Expected return on plan assets includes expected investment income on non-TRA assets of $356, $388 and $437 and actual investment income (loss) on TRA assets of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively.

Employee Benefit Plans - Plan Amendments and Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments	$ 22
Defined benefit plan global plan assets at measurement dates		$ 8,158	$ 8,159

Employee Benefit Plans - Defined Benefit Plans Measured Using Significant Unobservable Inputs Level 3 (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

$ 2,806

$ 3,081

United States Pension Plan of US Entity [Member] | Fair Value, Inputs, Level 3 [Member] | Measured at FV, using NAV per share practical expedient. [Member]

2,774

2,806

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

United States Pension Plan of US Entity [Member] | Fair Value, Inputs, Level 3 [Member] | Real estate [Member]

500

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

^[1]

(3)

(15)

Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)

(2)

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

5,353

5,930

Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member]

5,384

5,353

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

269

279

^[1]

(26)

(21)

Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)

(12)

(12)

(25)

Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Measured at FV, using NAV per share practical expedient. [Member]

231

269

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Real estate [Member]

545

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

145

147

^[1]

(13)

Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)

(5)

(13)

(11)

Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Private equity funds [Member]

121

145

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

^[1]

(1)

Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)

(4)

(1)

Foreign Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | Guaranteed insurance contracts [Member]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

120

128

^[1]

(12)

(21)

Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)

(3)

(4)

(13)

U.S. federal statutory income tax rate

$ 104

$ 120

[1]	Adjusted to exclude assets of $500 U.S. and $545 Non-U.S. that are measured at fair value using the NAV per share (or its equivalent) practical expedient.

Employee Benefit Plans - Investment Strategy (Details)	Dec. 31, 2016	Dec. 31, 2015
United States Pension Plan of US Entity [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Equity investments, percent	30.00%	34.00%
Fixed income investments, percent	48.00%	43.00%
Real estate, percent	6.00%	6.00%
Private equity, percent	8.00%	9.00%
Other, percent	8.00%	8.00%
Pension Plan Assets, Investment Strategy	100.00%	100.00%
Foreign Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Equity investments, percent	28.00%	28.00%
Fixed income investments, percent	45.00%	48.00%
Real estate, percent	5.00%	6.00%
Private equity, percent	9.00%	10.00%
Other, percent	13.00%	8.00%
Pension Plan Assets, Investment Strategy	100.00%	100.00%

Employee Benefit Plans - Contributions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Post Retirement Benefit Plan, Future Employer Contribution in Next Fixcal Year		$ 63
2017		1,062
2018		443
2019		445
2020		453
2021		533
Years 2022-2026		2,714
Post employment benefit plan contributions by employer		61	$ 66	$ 71
Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit pension plan contributions by employer		178
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year		350
United States Pension Plan of US Entity [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit pension plan contributions by employer		24
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year		169
2017		852
2018		227
2019		223
2020		225
2021		296
Years 2022-2026		$ 1,433
Discount rate assumptions used to determine benefit obligations		4.00%	4.30%	3.90%
Rate of compensation increase assumptions used to determine benefit obligation		0.20%	0.20%	0.20%
Discount rate assumptions used to determine net periodic benefit costs		4.30%	3.90%	4.80%
Expected return on plan assets assumptions used to determine net periodic benefit cost		7.50%	7.50%	7.80%
Rate of compensation increase assumptions used to determine net periodic benefit cost		0.20%	0.20%	0.20%
Foreign Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit pension plan contributions by employer		$ 154
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year		181
2017		210
2018		216
2019		222
2020		228
2021		237
Years 2022-2026		$ 1,281
Discount rate assumptions used to determine benefit obligations		2.50%	3.30%	3.10%
Rate of compensation increase assumptions used to determine benefit obligation		2.60%	2.70%	2.60%
Discount rate assumptions used to determine net periodic benefit costs		3.30%	3.10%	4.20%
Expected return on plan assets assumptions used to determine net periodic benefit cost		4.80%	5.20%	6.10%
Rate of compensation increase assumptions used to determine net periodic benefit cost		2.70%	2.60%	2.60%
Postretirement Health Coverage [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2017		$ 63
2018		64
2019		62
2020		61
2021		59
Years 2022-2026		$ 261
Discount rate assumptions used to determine benefit obligations		3.90%	4.10%	3.80%
Discount rate assumptions used to determine net periodic benefit costs		4.10%	3.80%	4.50%
Other Postretirement Benefit Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit pension plan contributions by employer		$ 61
Health care cost trend rate assumed for next year		7.20%	7.50%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.80%	4.90%
Year that the rate reaches the ultimate trend rate		2026	2026
Effect on total service and interest cost components - 1% increase		$ 2
Effect on total service and interest cost components - 1% decrease		(2)
Effect on post-retirement benefit obligation - 1% increase		53
Effect on post-retirement benefit obligation - 1% decrease		(46)
Domestic, tax-qualified, defined benefit plan [Domain]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year		145
Scenario, Forecast [Member] \| United States Pension Plan of US Entity [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate assumptions used to determine net periodic benefit costs	4.00%
Expected return on plan assets assumptions used to determine net periodic benefit cost	7.00%
Rate of compensation increase assumptions used to determine net periodic benefit cost	0.20%
Scenario, Forecast [Member] \| Foreign Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate assumptions used to determine net periodic benefit costs	2.50%
Expected return on plan assets assumptions used to determine net periodic benefit cost	4.10%
Rate of compensation increase assumptions used to determine net periodic benefit cost	2.60%
Scenario, Forecast [Member] \| Postretirement Health Coverage [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate assumptions used to determine net periodic benefit costs	3.90%
Minimum [Member] \| Domestic, tax-qualified, defined benefit plan [Domain]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year		15
Voluntary contribution [Domain] \| Domestic, tax-qualified, defined benefit plan [Domain]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plans, Future Employer Contributions in Next Fiscal Year		$ 130

Income and Other Taxes - Domestic and Foreign (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Domestic income	$ 415	$ 613	$ 635
Foreign income	153	311	455
Income Before Income Taxes and Equity Income	$ 568	$ 924	$ 1,090

Income and Other Taxes - Income Tax Expense (Benefit), Current Deferred, by Jurisdiction (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Current State Tax Expense (Benefit)	$ 15	$ (38)	$ 21
Current Federal Tax (Benefit) Expense	(15)	(225)	(58)
Deferred Federal Income Tax (Benefit) Expense	(4)	300	150
Current Foreign Tax Expense	71	73	83
Deferred Foreign Income Tax Expense (Benefit)	(13)	7	(16)
Deferred State Income Tax Expense	8	76	18
Total (Benefit) Provision	$ 62	$ 193	$ 198

Income and Other Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Income Tax Disclosure [Abstract]

35.00%

Nondeductible expenses

2.90%

1.10%

1.30%

Effect of tax law changes

1.20%

(1.00%)

(5.20%)

Change in valuation allowance for deferred tax assets

(1.40%)

(1.60%)

(1.40%)

State taxes, net of federal benefit

3.00%

2.20%

2.00%

Audit and other tax return adjustments

(4.10%)

1.30%

(3.00%)

Tax-exempt income, credits and incentives

(4.00%)

(1.80%)

(1.90%)

Foreign rate differential adjusted for U.S. taxation of foreign profits

^[1]

(22.60%)

(15.30%)

(9.00%)

Effective Income Tax Rate

0.90%

1.00%

0.40%

10.90%

20.90%

18.20%

Income Taxes Paid

$ 130

$ 138

$ 121

[1]	The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries.

Income and Other Taxes - Allocation of Income Tax Expense Benefit (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Discontinued Operation, Tax Effect of Discontinued Operation

Pre-tax income

$ 62

$ 193

$ 198

^[1]

(250)

(134)

Total Income Tax Expense (Benefit)

(18)

(179)

115

(207)

Defined Benefit Pension Plans, Defined Benefit [Member]

Other comprehensive income (loss), tax

(408)

Cash flow hedges [Member]

Other comprehensive income (loss), tax

(8)

Translation adjustments [Member]

Other comprehensive income (loss), tax

$ 2

$ 0

$ (2)

[1]	Refer to Note 4 - Divestitures for additional information regarding discontinued operations.

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]

Income and Other Taxes - Unrecognized Tax Benefits Rollforward (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Balance, Beginning

$ 222

$ 207

$ 225

Additions (Reductions) related to current year

(9)

(31)

(5)

(23)

Settlements with taxing authorities

^[1]

(6)

(8)

(2)

(9)

(6)

Currency

(2)

(1)

(2)

Balance, Ending

165

222

207

Unrecognized Tax Benefits, Reasonably Possible but Uncertainty of Timing

Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued

Tax Positions assumed in Conduent Separation

$ (13)

$ 0

[1]	Majority of settlements did not result in the utilization of cash.

Income and Other Taxes - Deferred Tax Asset And Liability (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets And Liabilities [Line Items]
Undistributed Earnings of Foreign Subsidiaries	$ 7,000
Research and development	289	$ 370
Post-retirement medical benefits	276	311
Net operating losses	407	367
Operating reserves, accruals and deferrals	190	171
Tax credit carryforwards	751	666
Deferred compensation	197	167
Pension	539	553
Other	81	138
Subtotal	2,730	2,743
Valuation allowance	(416)	(383)
Total	2,314	2,360
Unearned income and installment sales	633	705
Intangibles and goodwill	200	208
Other	48	48
Total	881	961
Total Deferred Taxes, Net	1,433	1,399
Valuation Allowance, Deferred Tax Asset, Change in Amount	(33)	$ 125
Deferred Tax Assets, Tax Credit Carryforwards	751
Net Operating Loss Carryforwards, Expire	700
Net Operating Loss Carryforwards, Indefinitely	1,700
Carryforward Indefinitely [Member]
Deferred Tax Assets And Liabilities [Line Items]
Deferred Tax Assets, Tax Credit Carryforwards	48
Carryforwards Expire [Member]
Deferred Tax Assets And Liabilities [Line Items]
Deferred Tax Assets, Tax Credit Carryforwards	$ 703

Contingencies and Litigation (Details) $ in Millions		12 Months Ended
Contingencies and Litigation (Details) $ in Millions	May 09, 2014	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Multiplier Of Overpayment Amounts	2
Product warranty expense		$ 15	$ 22	$ 25
Product warranty accrual		8	9
Brazil Tax And Labor Contingencies [Member]
Loss Contingencies [Line Items]
Unreserved tax and labor contingencies		750	$ 577
Escrow cash deposits		85
Net book value of assets with liens		4
Letters of Credit Outstanding, Amount		142
Surety Bonds Outstanding, Amount		$ 91

Contingencies and Litigation - Other Contingencies (Details) $ in Millions	Dec. 31, 2016 USD ($)
Other contingencies letter of credits [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum exposure, undiscounted	$ 375

Preferred Stock (Details)
$ / shares in Units, $ in Millions

12 Months Ended

Dec. 31, 2016

USD ($)

Days

$ / shares

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Fair Value adjustment, modification of awards upon exchange, Conduent conversion

$ 7

Preferred stock, dividend rate, percentage

8.00%

Cash dividends declared-preferred stock

^[1]

$ 24

Preferred stock converted into common shares | shares

149.8127

Total conversion of number of preferred stock shares into common stock, shares | shares

26,966,000

Total conversion of preferred stock shares into common stock, initial conversion price per share | $ / shares

$ 6.675

Common stock closing price, maximum threshold, triggering conversion of Pfd to Common Stock | $ / shares

$ 9.75

Common stock closing price, maximum threshold as percent of initial conversion price, triggering conversion of Pfd to Common Stock

146.10%

Minimum number of trading days C/S close price must exceed conversion price to trigger Pfd Stock conversion | Days

Number of trading days used for measurement | Days

Series A Preferred Stock [Member]

Preferred stock, ACS acquisition shares issued | shares

300,000

Preferred stock, total carrying value

$ 356

Convertible Preferred Stock, Shares Issued upon Conversion, Conduent Shares | shares

120,000

Conduent Preferred Stock, Post Conversion Carrying Value, Shares Issued

$ 142

Series B [Member]

Preferred Stock, Liquidation Preference, Value

180

Xerox Preferred Stock, Post Conversion Carrying Value, Shares Issued

214

Cash dividends declared-preferred stock

$ 14

Preferred stock converted into common shares | shares

180,000

Conduent [Domain] | Series A Preferred Stock [Member]

Preferred Stock, Liquidation Preference, Value

$ 120

[1]	Cash dividends declared on preferred stock of $20 per share in each quarter of 2016, 2015 and 2014.

Shareholders' Equity - Equity Stocks Information (Details) shares in Millions	Dec. 31, 2016 $ / shares shares
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	22
Preferred Stock, Par or Stated Value Per Share \| $ / shares	$ 1.00
Common Stock, Shares Authorized	1,750
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 1.00
Stock Compensation Plan [Member]
Class of Stock [Line Items]
Common Stock Shares Reserved for Future Issuance, Incentive Compensation	101
Convertible Debt [Member]
Class of Stock [Line Items]
Common Stock Shares Reserved for Future Issuance, Incentive Compensation	48
Series A [Member]
Class of Stock [Line Items]
Common Stock Shares Reserved for Future Issuance, Incentive Compensation	27

Shareholders' Equity - Treasury Stock (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) shares
Stockholders' Equity Note [Abstract]
Stock Repurchased During Period, Shares \| shares	0
Authorized share repurchase programs	$ 8,000
Share repurchase cost	7,755
Share repurchase fees	$ 12
Number of shares repurchased \| shares	695,230,000
Share Repurchase Program Combined Authorization	$ 8,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 245

Shareholders' Equity - Common Stock and Treasury Stock Period Activity (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		9.00%	9.00%
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of Treasury stock	695,230
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning	1,012,836	1,124,354	1,210,321
Stock based compensation plans, net	1,539	11,292	13,965
Acquisition of Treasury stock		0	0
Cancellation of Treasury stock		(122,810)	(100,928)
Conversion of 2014 9% Notes, shares			996
Balance, Ending	1,014,375	1,012,836	1,124,354
Treasury Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning	0	7,609	22,001
Stock based compensation plans, net	0	0	0
Acquisition of Treasury stock		115,201	86,536
Cancellation of Treasury stock		(122,810)	(100,928)
Conversion of 2014 9% Notes, shares			0
Balance, Ending	0	0	7,609

Shareholders' Equity - Total Stock-based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	41,000,000	43,000,000
Stock-based compensation expense, pre-tax	$ 50	$ 27	$ 63
Income tax benefit recognized in earnings	$ 19	$ 10	$ 24
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, number of common stock share equivalents for each Performance Share granted	1
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period	3 years
Officers, Select Executives and middle management [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Requisite service period	3 years
Officers, Select Executives and middle management [Member] \| Performance Shares, BPO Separation Related [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period	1 year
Officers and Select Executives [Domain] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award - Maximum over-achievement	50.00%	100.00%	50.00%
All Other Participants [Domain] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award - Maximum over-achievement	25.00%

Shareholders' Equity - Share-based Compensation, Activity (Details) - $ / shares
shares in Thousands

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Restricted Stock Units (RSUs) [Member]

Awards Other Than Options, Number of Shares [Roll Forward]

2,390

12,197

19,079

7,174

798

926

(314)

(10,191)

(6,934)

(548)

(414)

(874)

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

7,232

2,390

12,197

$ 11.05

$ 9.50

$ 9.62

9.57

11.08

12.30

9.62

7.86

10.33

10.12

9.27

8.55

Performance Shares [Member]

$ 7.52

$ 11.05

$ 9.50

Awards Other Than Options, Number of Shares [Roll Forward]

23,206

20,721

8,058

5,284

9,470

16,967

(33)

(3,268)

(2,404)

(4,935)

(3,717)

(1,900)

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

20,223

23,206

20,721

$ 11.67

$ 11.36

$ 9.15

9.35

10.68

12.28

11.33

7.90

10.68

11.84

10.74

11.07

Conduent [Domain] | Restricted Stock Units (RSUs) [Member]

$ 8.50

$ 11.67

$ 11.36

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

(3,144)

Conduent [Domain] | Performance Shares [Member]

$ 10.07

$ (0.00)

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

(7,894)

Conduent [Domain] | Stock options

$ 11.09

$ (0.00)

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

(1,502)

Xerox shares, granted in conversion [Member] | Restricted Stock Units (RSUs) [Member]

^[1]

$ 6.70

$ (0.00)

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

1,674

Xerox shares, granted in conversion [Member] | Performance Shares [Member]

$ 7.52

$ (0.00)

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

4,595